QUESTION According to Michael Porter, superior profitability goes to a firm that: A. creates similar products as their competitors. B. keeps the gap between value and cost of production smaller than the gap attained by competitors. C. drives down the cost structure of its business. D. has the highest cost structure in the industry. E. […]
QUESTION Focusing primarily on increasing the attractiveness of a product is referred to as a: A. standardization strategy. B. differentiation strategy. C. target-identification strategy. D. low-cost strategy. E. profitability strategy. ANSWER B
QUESTION Superior value creation relative to rivals requires that the firm: A. creates similar products as its competitors so that consumers do not have to pay a premium price. B. has the highest cost structure in the industry. C. creates the least valuable product in the eyes of consumers. D. ensures that the gap between […]
QUESTION The efficiency frontier has a convex shape because of: A. a high-cost structure. B. diminishing returns. C. a significantly low product value. D. low production costs. E. high profit growth. ANSWER B
QUESTION Which of the following shows all of the different positions that a firm can adopt with regard to value creation and low cost assuming that its internal operations are configured adequately to support a particular position? A. Demand-value model B. Experience curve C. Efficiency frontier D. Optimal output model E. Surplus curve ANSWER […]
QUESTION A firm maximizes its profitability when it: A. creates products similar to the products of its competitors. B. minimizes the value provided by its products. C. picks a position on the efficiency frontier that is not viable. D. strips all the value out of its product offering. E. configures its internal operations to support […]
QUESTION A firm’s profitability is maximized when it: A. creates products similar to the products of its competitors. B. strips all the value out of its product offering. C. ensures that it has the right organization structure in place to execute its strategy. D. picks a position on the efficiency frontier that is not viable. […]
QUESTION For a firm to maximize its profitability, it is necessary that it: A. creates products similar to the products of its competitors. B. does not configure its internal operations to reduce costs. C. minimizes the value of the consumer surplus. D. picks a position on the efficiency frontier that is viable. E. strips all […]
QUESTION Typically, the price a firm charges for a good or service is: A. less than the value placed on that good or service by the customer. B. more than what customers assume it would be. C. more than the market price for similar goods or services. D. the same as the value placed on […]
QUESTION The value creation activities of a firm are categorized as: A. primary activities and support activities. B. strategic activities and functional activities. C. ancillary functions and tertiary functions. D. primary activities and core activities. E. goal-oriented activities and organizational activities. ANSWER A
