Week 4 Knowledge Check Study Guide
Concepts
Low-Cost Leadership
Mastery
Score: 17 / 18
Questions
100%
1
2
3
100%
4
5
100%
6
7
100%
8
9
50%
11
12
Portfolio approach
100%
13
14
15
Synergy approach
100%
16
17
18
Differentiation Product/Service
Distinction
Value Disciplines
Concentrated Growth and
Market Development
10
Horizontal Acquisition,
Vertical Acquisition,
Diversification, and
Turnaround
Concept: Low-Cost Leadership
Mastery
100%
Questions
1
2
3
1.
Firms that enjoy higher profit margins are using which of Michael Porter’s generic
strategies?
A.
Cost leadership
B.
Differentiation
C.
Focus
D.
Concentrated growth
Correct:
The Correct Answer is: A.
Firms using a low-cost leadership strategy tend to charge lower prices than their
competitors, but they can also enjoy higher profit margins due to their unique
capabilities.
2.
Which of the following companies is a good example of a low-cost leader?
A.
Wal-Mart
B.
Brooks Brothers
C.
Chivas Regal
D.
Porsche
Correct:
The Correct Answer is: A.
Wal-Mart is a good example of a firm pursuing a low-cost leadership strategy, as it
tends to charge lower prices to consumers than its competitors.
3.
Firms that follow this type of generic strategy can sometimes have difficulties succeeding
without compromising the key attributes of a company’s products or services.
A.
Focus
B.
Differentiation
C.
Cost leadership
D.
Concentrated growth
Correct:
The Correct Answer is: C.
Firms pursuing a low-cost leadership strategy can sometimes find it hard to offer
unique or artisan products or services, due to the economies of scale they employ to
stay competitive.
Concept: Differentiation - Product/Service Distinction
Mastery
100%
Questions
4
5
4.
Which of the following is a generic strategy...