06Student 1As Shown In The Chapter

31. An organization creates a competitive advantage by creating less value for its customers than does its competition. 
True    False

Having a generic business strategy will cover a vast amount of products or services, but in the end will not stand out due to it being so broad. With this type of strategy businesses will find themselves in an undesirable predicament because the consumers of the organization will not have an understanding of the firms core competencies. Incorporating to many strategies as seen from a cost perspective, is not a sound solution for any organization to engage upon. That’s due to the rise in cost will negatively impact value created, by suddenly limiting it. Also, not differentiating between products will cause a

2. Which of the following is a valid criticism concerning the goal of firms to maximize profits? (Points : 2)

Firms that have selected a related diversification corporate-level strategy seek to exploit a. control shared among business-unit managers.b. economies of scope between business units.c. the favorable demand of buyers.d. market power.

* Competitors are focused on efficiency and cost control and achieving economies of scale in production, as well as market segmentation

D. may be the only firm able to pay the higher prices and continue to earn average or above- average returns. E. Correct Response: D 2594 TQM is most helpful to firms following the ____ business strategy. A. cost-leadership B. integrated cost-leadership/differentiation C. focused cost-leadership D. focused differentiation E. Correct Response: B

The goal of any company is to achieve the competitive advantage of over their rivals on the basis of a variety of features, such as higher quality, wider product selection, and added performance, value added services, more attractive

It maximizes profitability and provides opportunities to expand business ( in line with the company’s mission).

Good business strategies allow a firm to gain and sustain a competitive advantage over its rivals. Broad generic business strategies can have risks and drawbacks. In a broad generic differentiation strategy, firms run the risk of the product becoming commoditized, and the competitors have matched the quality standards of the product, which then shifts the focus to price. Also, firms need to control costs, and if its differentiated features raise costs but not perceived value in the consumer’s minds, they lose their differentiated status, according to Rothaermel (2017). Profit margins are eroded when costs increase. Another risk for a broad generic differentiated or cost-leadership strategy occurs when consumer’s taste change. With a

By increasing the sales of the company, it will need more workers since work will

Companies entering a foreign market have to choose a strategy. The type of strategy chosen can be based on three

The link between competitive strategy and organizational performance is a classical theme in strategic management literature, with the main thesis being that organization strategy determines organizational structure, which in turn influences organization performance (Prajogo & Sohal, 2003). Miller (1988) suggests that organizations adopting competitive strategies for example differentiation place emphasis on new product development, research and development and technologies. These firms achieve significant performance in terms of quality and innovation performance.

Regarding this Porter (1985) warned businesses of the danger that exists for a business to get “stuck in the middle”. This specific view has been challenged by Bowman (1991) and Mathur (1988). A competitive advantage was suggested by Mathur that is based on the criteria of price or differentiation.

d. It is versatile (although there can be challenges) for both large and small and medium enterprises

There are three different strategies that a firm can adopt to achieve a competitive advantage: