Reference no: EM132166244

1. To use a company's resources and distinctive competencies to gain a competitive advantage over its rival in a market or industry, a ____ strategy is the plan of action that strategic managers could adopt.

a. stakeholder-level

b. business-level

c. customer-level

d. product-level

2. The process by which companies increase or decrease product prices to convey their competitive intention to other companies and so influence the way they price their products is called

a. price signaling

b. price cutting

c. horizontal integration

d. horizontal mergers

3. Outsourcing functional activities

a. reorders the steps in a firm's value chain.

b. moves one or more of its own value creation functions and contracts with another company to perform that activity on their behalf

c. reduces the firm's dependence on its value chain.

d. strengthens the firm's capabilities in each value chain function.

e. eliminates the need for a value chain

4. Of the following attributes, which one(s) are not a drawback to licensing?

a. A company does not have tight control over operations in foreign countries.

b. Licensing limits a company's ability to coordinate strategy.

c. A company's brand could become damaged if the licensee does not perform up to established standards

d. A & B only

e. B & C on

5. Market segmentation to gain a competitive advantages occurs when a company

a. allows its managers to ignore costs.

b. helps firms keep costs to a minimum.

c. groups customers on the basis of important differences in their needs

d. is focused on corporate-level strategy.

e. creates, makes, and sells a product in a way that better satisfies customer needs than its rivals.