Question 1

Just-In-Time (JIT) reduces total inventory holding cost, and hence it is appropriate for all production processes.

Accepted Answer

A) True 
 B)False

Question 2

Both too much risk seeking and risk averse perspective can potentially be dangerous to an organization.

Accepted Answer

A) True 
 B)False  True

Question 3

Benefits from Just-in-time inventory (JIT)  include all except:

Accepted Answer

A)   Better utilization of machines and facilities
B)   Increased supplier relations
C)   Improved product quality
D)   Higher production costsE) B) and C)
F) A) and B)

Question 4

Concern for quality is surely a good thing, although too much attention to quality could be disastrous.

Accepted Answer

A) True 
 B)False

Question 5

Financing decisions involve considering where and how the organization should raise additional capital.

Accepted Answer

A) True 
 B)False

Question 6

In any firm, nearly all organizational decisions have some impact on their human resources.

Accepted Answer

A) True 
 B)False

Question 7

Strategic Business Unit (SBU) is grouping a firm's similar products/services into meaningful strategic combination.

Accepted Answer

A) True 
 B)False  True

Question 8

_____________ involves the issues of the percentage of earnings paid to stockholders, how stable that percentage is to be over time, and the issuance and/or repur?chase of stock.

Accepted Answer

A)   Investment decision
B)   Financing decision
C)   Shareholder decision
D)   Dividend decisionE) C) and D)
F) A) and B)

Question 9

Cost leadership strategy can be successfully used by companies when their product or service is not very desired by the consumer.

Accepted Answer

A) True 
 B)False

Question 10

Firms following cost leadership strategy seeks strategic advantage based entirely upon achieving high cost production.

Accepted Answer

A) True 
 B)False

Question 11

__________ is often simply not a strategy available to new entrants to a market, unless the process is well developed and well understood.

Accepted Answer

A)   Cost leadership strategy
B)   Differentiation strategy
C)   Marketing strategy
D)   Focus strategyE) None of the above
F) B) and C)

Question 12

The authors state that cost leadership strategy "can only be successful if the product or service you offer is desired by the consumer." Comment.

Accepted Answer

Cost leadership strategy focuses on offering products or services at the lowest possible cost in the industry. While this can be an effective strategy for gaining a competitive advantage, it is important to note that simply offering a low-cost product or service is not enough to guarantee success. The authors are correct in stating that the product or service must also be desired by the consumer in order for the cost leadership strategy to be successful.

In other words, even if a company is able to offer a product or service at a lower cost than its competitors, if the consumer does not see value in that product or service, they are unlikely to purchase it. Therefore, it is essential for companies employing a cost leadership strategy to not only focus on cost reduction, but also on understanding and meeting the needs and desires of their target market.

Ultimately, the success of a cost leadership strategy is contingent on the ability of the company to offer a desirable product or service at a lower cost than its competitors. Without consumer demand, the cost leadership strategy is unlikely to be effective in the long run.

Question 13

Is it appropriate to say that in case of risk propensity, the phrase "each one to their own" is a part of the strategy formulation for businesses? Justify.

Accepted Answer

The phrase "each one to their own" sugge...

Question 14

An organization following ___________ strategy seeks to identify and satisfy some market niche, or certain segment of the market.

Accepted Answer

A)   Cost leadership strategy
B)   Differentiation strategy
C)   Cost and differentiation strategy
D)   Focus strategyE) A) and C)
F) C) and D)

Question 15

Companies following _________ are concerned with differentiating their products or services and making them unique within the industry.

Accepted Answer

A)   Cost leadership strategy
B)   Differentiation strategy
C)   Focus strategy
D)   Cost leadership and focus strategyE) A) and C)
F) A) and B)

Question 16

Companies will occasionally continue to support strategies which are failing to achieve their goal and this can be termed as ___________.

Accepted Answer

A)   Risk Averse behavior
B)   Risk Seeking behavior
C)   Escalating commitment
D)   Risk mitigationE) A) and B)
F) B) and C)

Question 17

__________ is a management approach that strives to achieve long-term success through customer satisfaction. All members participate in improving processes, products, services, and the culture in which they work to increase the customer satisfaction.

Accepted Answer

A)   Competitive advantage
B)   Customer Relationship Management (CRM) 
C)   Total Quality Management (TQM) 
D)   Functional level strategyE) B) and D)
F) A) and B)

Question 18

Market segmentation refers to a division of the total target market into relatively heterogeneous subsets.

Accepted Answer

A) True 
 B)False

Question 19

Differentiation strategy's primary goal is to satisfy customer needs by providing generic and low cost goods or services.

Accepted Answer

A) True 
 B)False

Question 20

Do you think that maintaining ROQ as an integral part of their quality management could sustain the business' competitive advantage? Support your answer with relevant examples.

Accepted Answer

Yes, I believe that maintaining ROQ (Ret...

Exam 6: Strategic Choice Options - Business and Functional Levels

Just-In-Time (JIT) reduces total inventory holding cost, and hence it is appropriate for all production processes.

Correct Answer
verified

Both too much risk seeking and risk averse perspective can potentially be dangerous to an organization.

Correct Answer
verified
True

Benefits from Just-in-time inventory (JIT) include all except:

Correct Answer
verified

Concern for quality is surely a good thing, although too much attention to quality could be disastrous.

Correct Answer
verified

Financing decisions involve considering where and how the organization should raise additional capital.

Correct Answer
verified

In any firm, nearly all organizational decisions have some impact on their human resources.

Correct Answer
verified

Strategic Business Unit (SBU) is grouping a firm's similar products/services into meaningful strategic combination.

Correct Answer
verified
True

_____________ involves the issues of the percentage of earnings paid to stockholders, how stable that percentage is to be over time, and the issuance and/or repur?chase of stock.

Correct Answer
verified

Cost leadership strategy can be successfully used by companies when their product or service is not very desired by the consumer.

Correct Answer
verified

Firms following cost leadership strategy seeks strategic advantage based entirely upon achieving high cost production.

Correct Answer
verified

__________ is often simply not a strategy available to new entrants to a market, unless the process is well developed and well understood.

Correct Answer
verified

The authors state that cost leadership strategy "can only be successful if the product or service you offer is desired by the consumer." Comment.

Is it appropriate to say that in case of risk propensity, the phrase "each one to their own" is a part of the strategy formulation for businesses? Justify.

Correct Answer
Answered by ExamLex AI
The phrase "each one to their own" sugge...
View Answer

An organization following ___________ strategy seeks to identify and satisfy some market niche, or certain segment of the market.

Correct Answer
verified

Companies following _________ are concerned with differentiating their products or services and making them unique within the industry.

Correct Answer
verified

Companies will occasionally continue to support strategies which are failing to achieve their goal and this can be termed as ___________.

Correct Answer
verified

__________ is a management approach that strives to achieve long-term success through customer satisfaction. All members participate in improving processes, products, services, and the culture in which they work to increase the customer satisfaction.

Correct Answer
verified

Market segmentation refers to a division of the total target market into relatively heterogeneous subsets.

Correct Answer
verified

Differentiation strategy's primary goal is to satisfy customer needs by providing generic and low cost goods or services.

Correct Answer
verified

Do you think that maintaining ROQ as an integral part of their quality management could sustain the business' competitive advantage? Support your answer with relevant examples.

Correct Answer
Answered by ExamLex AI
Yes, I believe that maintaining ROQ (Ret...
View Answer

Exam 6: Strategic Choice Options - Business and Functional Levels

Just-In-Time (JIT) reduces total inventory holding cost, and hence it is appropriate for all production processes.

Correct AnswerverifiedShow Answer

Both too much risk seeking and risk averse perspective can potentially be dangerous to an organization.

Correct AnswerverifiedTrue

Benefits from Just-in-time inventory (JIT) include all except:

Correct AnswerverifiedShow Answer

Concern for quality is surely a good thing, although too much attention to quality could be disastrous.

Correct AnswerverifiedShow Answer

Financing decisions involve considering where and how the organization should raise additional capital.

Correct AnswerverifiedShow Answer

In any firm, nearly all organizational decisions have some impact on their human resources.

Correct AnswerverifiedShow Answer

Strategic Business Unit (SBU) is grouping a firm's similar products/services into meaningful strategic combination.

Correct AnswerverifiedTrue

_____________ involves the issues of the percentage of earnings paid to stockholders, how stable that percentage is to be over time, and the issuance and/or repur?chase of stock.

Correct AnswerverifiedShow Answer

Cost leadership strategy can be successfully used by companies when their product or service is not very desired by the consumer.

Correct AnswerverifiedShow Answer

Firms following cost leadership strategy seeks strategic advantage based entirely upon achieving high cost production.

Correct AnswerverifiedShow Answer

__________ is often simply not a strategy available to new entrants to a market, unless the process is well developed and well understood.

Correct AnswerverifiedShow Answer

The authors state that cost leadership strategy "can only be successful if the product or service you offer is desired by the consumer." Comment.

Is it appropriate to say that in case of risk propensity, the phrase "each one to their own" is a part of the strategy formulation for businesses? Justify.

Correct AnswerAnswered by ExamLex AIThe phrase "each one to their own" sugge...View AnswerShow Answer

An organization following ___________ strategy seeks to identify and satisfy some market niche, or certain segment of the market.

Correct AnswerverifiedShow Answer

Companies following _________ are concerned with differentiating their products or services and making them unique within the industry.

Correct AnswerverifiedShow Answer

Companies will occasionally continue to support strategies which are failing to achieve their goal and this can be termed as ___________.

Correct AnswerverifiedShow Answer

__________ is a management approach that strives to achieve long-term success through customer satisfaction. All members participate in improving processes, products, services, and the culture in which they work to increase the customer satisfaction.

Correct AnswerverifiedShow Answer

Market segmentation refers to a division of the total target market into relatively heterogeneous subsets.

Correct AnswerverifiedShow Answer

Differentiation strategy's primary goal is to satisfy customer needs by providing generic and low cost goods or services.

Correct AnswerverifiedShow Answer

Do you think that maintaining ROQ as an integral part of their quality management could sustain the business' competitive advantage? Support your answer with relevant examples.

Correct AnswerAnswered by ExamLex AIYes, I believe that maintaining ROQ (Ret...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The phrase "each one to their own" sugge...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Yes, I believe that maintaining ROQ (Ret...
View Answer