Strategic Management: Concepts and Cases 3rd Edition by Jeffrey H. Dyer Test bank
a) complementary service
b) emergent strategy
c) unique value
d) cost advantage
Answer: d
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Application
Standard 1: AACSB || Analytic
19) Fashion Mart Corp., a clothing company, offers the best quality material made using the finest threads and advanced textile machinery. It offers an extended product guarantee to its customers, something that its competitors have found difficult to achieve. This guarantee claims that the clothes that Fashion Mart creates will not wear out even after 200 washes. This guarantee has helped Fashion Mart to retain its loyal customer base and to frequently get new customers. This scenario best illustrates ________.
a) forward integration
b) backward integration
c) a differentiation advantage
d) a cost advantage
Answer: c
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Application
Standard 1:1: AACSB || Analytic
20) The owners of Carpo Inc., a watch company, also own a steel company and a leather goods manufacturing company. This relieves them from expenses that they would have to bear, if they had to rely on outside sources for the raw materials needed to make their watches. This enables the company to produce watches at a much lesser cost than other companies in the industry. This scenario best illustrates a ________.
a) complementary service
b) emergent strategy
c) unique value
d) cost advantage
Answer: d
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Application
Standard 1: AACSB || Analytic
21) Which of the following is an example of a resource?
a) An overdue
b) A mission
c) A patent
d) A goal
Answer: c
Difficulty: Easy
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Knowledge
Standard 1: AACSB || Analytic
22) Lavender Furniture established itself in 1965 as a small firm. It was situated on a small stretch of land located miles away from the town. Over the years, due to the high quality of its products, it acquires enough profits to own multiple assets, such as a bigger plot and machinery, recruit employees and establish itself as a brand. Which of the following is an element of the strategic management process that Lavender Furniture has acquired?
a) Values
b) Resources
c) Capabilities
d) Fame
Answer: b
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.
Bloomcode: Application
Standard 1: AACSB || Analytic
23) Appetit Corp. is a famous deli in the metropolitan city of Atika. The company became popular because of its consistency in the quality of bread it provided and its creativity in adding unique elements to create different flavors. One of Appetit’s products is an infusion of peanut butter and barbeque sauce filled in a bun. Appetit Corp. also engages its customers in contests that ask them to make their own unique variety of bread, which later features among the company’s products with the winner’s name. All these factors have helped to create unique value that keeps its customers coming back for more. This scenario best illustrates Appetit Corp.’s ________.
a) capabilities
b) substitutes
c) values
d) resources
Answer: a
Difficulty: Hard
Section Reference 1: What Is Business Strategy?
Learning Objective 1: Define business strategy, including the importance of competitive advantage, the four choices that are critical to strategy formulation, and the strategic management process.