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When Jean Cult Inc.was operating at the minimum efficient scale of 10,000-12,000 units per month, the firm's cost per unit was $20.However, when the output level was increased beyond 12,000 units, the cost per unit increased to $22.This increase was attributed to the wear-and-tear of the machinery, and complexities of managing and coordinating.What is this phenomenon known as?


A) Resource ambiguity
B) Diseconomies of scale
C) Network effect
D) Learning-curve effect

E) B) and D)
F) None of the above

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Why is it important for managers to understand the dynamics of competitive positioning?

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Strategic positions are not fixed, but c...

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What does the success of business-level strategies depend on?

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It is important to note that none of the...

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What is a value gap?

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Economic value creation, V - C, is also ...

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When a differentiator charges a similar price as its competitors in the same strategic group but offers more perceived value, it:


A) loses its competitive advantage.
B) gains market share from other firms.
C) lowers the economic value created.
D) results in diseconomies of scale.

E) None of the above
F) A) and C)

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What is an integration strategy?

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An integration strategy allows a firm to...

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Why do diseconomies of scale occur?

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Benefits to scale cannot go on indefinit...

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Why are differentiation and cost-leadership strategies referred to as generic business strategies?


A) They can be simultaneously pursued by a firm without any trade-offs.
B) They can be used by any organization independent of industry context.
C) They require similar strategic positions in order to increase a firm's chances to gain competitive advantage.
D) They can be applied only by businesses which have a competitive advantage.

E) None of the above
F) B) and D)

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Discuss product features as value drivers.

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One of the obvious but most important le...

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What does it mean for a firm to have an 80 percent learning curve?


A) Every time the cumulative output increases by 80 percent, the cost per unit will decline by 20 percent.
B) Every time the cumulative output is doubled, the cost per unit will decline by 80 percent.
C) Every time the cumulative output goes up by 20 percent, the cost per unit will decline by 80 percent.
D) Every time the cumulative output is doubled, the cost per unit will decline by 20 percent.

E) None of the above
F) C) and D)

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To be cost-competitive, a firm should:


A) position itself below the productivity frontier.
B) operate at the minimum efficient scale.
C) attain the highest cost position.
D) avoid moving on to a steeper experience curve.

E) A) and C)
F) None of the above

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What is the difference between a strategic position and a strategic trade-off?

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A firm's business-level strategy determi...

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Coral Orchids is a chain of premium hotels around the globe that charges higher prices for its rooms and suites when compared to the average industry standards.Yet, the hotel enjoys the largest market share in the industry.This is mainly due its highly responsive staff that has a strong commitment toward achieving a 100 percent guest satisfaction.In this scenario, which of the following is the key value driver?


A) Superior customer service
B) Low cost of input factors
C) Availability of complements
D) Economies of scale

E) A) and B)
F) A) and C)

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Discuss the important differences between economies of scale and learning effects.

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There are some important differences bet...

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KitchenThings Inc.is a company that manufactures plastic kitchenware.It operates at an output level that allows it to keep its unit cost per output to the lowest in the industry.This in turn allows KitchenThings to be the price leader.Other competing companies cannot operate at the same level due to a lack of consumer demand for their products.This puts them at a competitive disadvantage.In this scenario, the cost driver behind KitchenThings's strategic position is _____.


A) superior customer service
B) economies of scale
C) availability of complements
D) learning-curve effects

E) A) and D)
F) B) and C)

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Discuss the threats firms face when they pursue a differentiation strategy.

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The viability of a differentiation strat...

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How does process innovation benefit a firm?

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Process innovation is a new method or te...

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BodyBlush Inc.is a brand reputed for its wide variants of body wash that introduced its range of shampoos and skin moisturizers a few years ago.Since most of its products could be produced using the same resources and technology, the company's cost structure lowered, while its product portfolio widened.In this scenario, which of the following value and cost drivers is BodyBlush applying?


A) Mass customization
B) Economies of scope
C) Learning-curve effect
D) Network effect

E) A) and D)
F) B) and C)

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Bass Watches Inc.initially spent eight man-hours to assemble a wrist watch.But as the production doubled, the number of hours spent on assembling a watch reduced by 20 percent.This increase in productivity reduced the company's cost per unit.What is this phenomenon referred to as?


A) Learning-curve effect
B) Network effect
C) Black-swan event
D) Time compression diseconomies

E) C) and D)
F) A) and D)

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Wear Crush Inc.is an apparel company known for its affordable clothes that follows a cost-leadership strategy.In this scenario, Wear Crush should ideally compare its strategic position with:


A) a company that sells wristwatches at affordable prices.
B) a luxury apparel company that sells designer clothes.
C) an apparel company popular among price-conscious customers.
D) an online company that sells customized pet clothing.

E) A) and B)
F) A) and C)

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Showing 81 - 100 of 125

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