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Chapter 4 - Cost Leadership

Pregunta 1 de 49

1

Actions that firms take to gain competitive advantage in a single market or industry are known as

Selecciona una de las siguientes respuestas posibles:

  • business-level strategies.

  • corporate-level strategies

  • functional-level strategies

  • macro-level strategies

Explicación

Pregunta 2 de 49

1

Actions firms take to gain competitive advantages by operating in multiple markets or industries simultaneously are known as

Selecciona una de las siguientes respuestas posibles:

  • business-level strategies

  • corporate-level strategies

  • functional-level strategies

  • macro-level strategies

Explicación

Pregunta 3 de 49

1

Cost-leadership and product-differentiation strategies are so widely recognized that they are often called

Selecciona una de las siguientes respuestas posibles:

  • common business strategies

  • generic corporate strategies

  • generic business strategies

  • common corporate strategies

Explicación

Pregunta 4 de 49

1

A firm that chooses a ________ focuses on gaining advantages by reducing its cost below all of its competitors

Selecciona una de las siguientes respuestas posibles:

  • diversification strategy

  • product-differentiation business strategy

  • corporate strategy

  • cost-leadership business strategy

Explicación

Pregunta 5 de 49

1

The best example of a firm following a cost-leadership business strategy is

Selecciona una de las siguientes respuestas posibles:

  • Mercedes Benz.

  • Macy's.

  • Ryanair.

  • Rolls Royce

Explicación

Pregunta 6 de 49

1

________ are said to exist when the increase in firm size (measured in terms of volume of production) are associated with lower costs (measured in terms of average costs per unit of production).

Selecciona una de las siguientes respuestas posibles:

  • Sustainable competitive advantages

  • Economies of scale

  • Temporary competitive advantages

  • Economies of scope

Explicación

Pregunta 7 de 49

1

As the volume of production in a firm increases, the average cost per unit decreases until some optimal volume of production is reached, after which the average costs of production begin to rise because of

Selecciona una de las siguientes respuestas posibles:

  • diseconomies of scale.

  • economies of scope.

  • diseconomies of scope.

  • economies of scale.

Explicación

Pregunta 8 de 49

1

The link between volume of production and the cost of building manufacturing operations is particularly important in industries characterized by

Selecciona una de las siguientes respuestas posibles:

  • process innovations.

  • product manufacturing.

  • product innovation.

  • process manufacturing.

Explicación

Pregunta 9 de 49

1

________ levels of production are associated with ________ levels of employee specialization.

Selecciona una de las siguientes respuestas posibles:

  • High, high

  • High, low

  • Low, high

  • Low, moderate

Explicación

Pregunta 10 de 49

1

Which of the following is not a potential source of diseconomies of scale?

Selecciona una de las siguientes respuestas posibles:

  • physical limits to efficient size

  • worker de-motivation

  • distance to markets and suppliers

  • learning-curve economies

Explicación

Pregunta 11 de 49

1

If Temper Company, a manufacturer of mattresses, was considering moving its production facilities to China but decided against it because the additional costs of shipping the mattresses back to the U.S. would offset the cost savings associated with moving the production facilities, the increased costs associated with shipping would be an example of

Selecciona una de las siguientes respuestas posibles:

  • learning-curve economies.

  • diseconomies of scale.

  • economies of scale.

  • competitive advantages.

Explicación

Pregunta 12 de 49

1

________ focus(es) on the relationship between the volume of production at a given point in time and average unit costs, the ________ focus(es) on the relationship between the cumulative volume of production and average unit costs.

Selecciona una de las siguientes respuestas posibles:

  • Economies of scale; learning curve

  • Competitive advantage; economies of scale

  • Learning curve; economies of scale

  • Economies of scale; competitive advantage

Explicación

Pregunta 13 de 49

1

Which of the following statements regarding the learning curve and economies of scale is accurate?

Selecciona una de las siguientes respuestas posibles:

  • Just as diseconomies of scale are presumed to exist if a firm gets too large, there is a corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.

  • Where diseconomies of scale are presumed to exist if a firm gets too large, there is no corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.

  • Where diseconomies of scale are presumed to exist if a firm gets too small, there is no corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.

  • Just as diseconomies of scale are presumed to exist if a firm gets too small, there is a corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.

Explicación

Pregunta 14 de 49

1

Learning-curve-cost advantages are

Selecciona una de las siguientes respuestas posibles:

  • restricted only to manufacturing firms.

  • restricted only to firms in services industries.

  • restricted only to firms in extraction industries.

  • not restricted to manufacturing.

Explicación

Pregunta 15 de 49

1

________ are any supplies used by a firm in conducting its business activities.

Selecciona una de las siguientes respuestas posibles:

  • Productive assets

  • Productive inputs

  • Productive outputs

  • Productive inventory

Explicación

Pregunta 16 de 49

1

In order to create a cost advantage, the cost of acquiring low-cost productive inputs must be ________ the cost savings generated by these factors.

Selecciona una de las siguientes respuestas posibles:

  • greater than

  • equal to

  • less than

  • greater than or equal to

Explicación

Pregunta 17 de 49

1

Machines and robots are examples of

Selecciona una de las siguientes respuestas posibles:

  • technological software.

  • economies of scale.

  • learning-curve effects.

  • technological hardware.

Explicación

Pregunta 18 de 49

1

The quality of relations among labor and management, an organization's culture, and the quality of management controls are all examples of

Selecciona una de las siguientes respuestas posibles:

  • technological hardware.

  • technological software.

  • productive inputs.

  • economies of scale.

Explicación

Pregunta 19 de 49

1

Choices which firms make about the kinds of products and services they will sell that impact their relative cost position are known as

Selecciona una de las siguientes respuestas posibles:

  • technological hardware.

  • policy choices.

  • technological software.

  • corporate level strategies.

Explicación

Pregunta 20 de 49

1

Firms for whom the price of the products or services they sell is determined by market conditions and not by the individual decision of the firms are known as

Selecciona una de las siguientes respuestas posibles:

  • profit takers.

  • price makers.

  • price takers.

  • profit makers.

Explicación

Pregunta 21 de 49

1

Which of the following statements is accurate?

Selecciona una de las siguientes respuestas posibles:

  • A cost-leadership competitive strategy increases the threat of new entrants by lowering cost-based barriers to entry.

  • Firms with a low-cost position can reduce the threat of rivalry in an industry.

  • Cost leaders are especially vulnerable to substitute products.

  • Cost leaders are especially vulnerable to the threat of suppliers.

Explicación

Pregunta 22 de 49

1

If the potential responses of competing firms are likely to be very detrimental to the costs advantages of cost leaders, firms pursuing a cost-leadership competitive strategy should

Selecciona una de las siguientes respuestas posibles:

  • drop their prices below competitors' prices to increase overall economic performance through increased volumes of profitable sales.

  • raise their prices above competitors, increasing overall economic performance through higher margins.

  • focus on a specific niche market to avoid direct competition with aggressive competitors.

  • set their prices equal to competitors' prices, sacrificing some market share for increased profit margins.

Explicación

Pregunta 23 de 49

1

Which of the following statements about cost leadership and the threat of buyers is accurate?

Selecciona una de las siguientes respuestas posibles:

  • If buyers demand increased quality or service, cost leaders can absorb these costs and may still have a cost advantage over the competition.

  • Being a cost leader encourages buyer backward vertical integration.

  • Firms pursuing a cost-leadership strategy are especially vulnerable to powerful buyers who insist on low prices or higher quality and service from their suppliers.

  • Cost leaders are not able to absorb costs associated with buyers' demands for increased quality or service.

Explicación

Pregunta 24 de 49

1

Which of the following is likely to be a rare source of cost advantage?

Selecciona una de las siguientes respuestas posibles:

  • technological software

  • if the efficient size of a firm or plant is significantly smaller than the total size of an industry

  • cost disadvantages based on diseconomies of scale

  • technological hardware

Explicación

Pregunta 25 de 49

1

Which of the following is less likely to be a rare source of cost advantage?

Selecciona una de las siguientes respuestas posibles:

  • technological software

  • learning-curve economies of scale

  • differential low-cost access to productive inputs

  • policy choices

Explicación

Pregunta 26 de 49

1

Perhaps the only time economies of scale are not subject to low-cost duplication is when the ________ size of operations is a significant percentage of ________ in an industry.

Selecciona una de las siguientes respuestas posibles:

  • nimum; marginal demand

  • efficient; total demand

  • maximum; marginal demand

  • efficient; marginal demand

Explicación

Pregunta 27 de 49

1

Which of the following statements is accurate?

Selecciona una de las siguientes respuestas posibles:

  • In general, economies of scale are relatively easy-to-duplicate bases of cost leadership, but diseconomies of scale are not.

  • In general, diseconomies of scale are relatively easy-to-duplicate bases of cost leadership, but economies of scale are not..

  • In general, neither economies of scale nor economies are relatively easy-to-duplicate bases of cost leadership.

  • In general, both economies of scale and diseconomies of scale are relatively easy-to-duplicate bases of cost leadership.

Explicación

Pregunta 28 de 49

1

When managers committed to an incorrect course of action increase their commitment to this action even as its limitations become manifest, this is known as

Selecciona una de las siguientes respuestas posibles:

  • de-escalation of commitment.

  • diseconomies of scale.

  • escalation of commitment.

  • economies of scale.

Explicación

Pregunta 29 de 49

1

Cost advantages based on learning-curve economies are

Selecciona una de las siguientes respuestas posibles:

  • rare, but they usually are not costly to duplicate.

  • costly to duplicate, but they usually are not rare.

  • both rare and usually costly to duplicate.

  • not rare and usually are not costly to duplicate.

Explicación

Pregunta 30 de 49

1

Firms implementing cost-leadership strategies will generally adopt a

Selecciona una de las siguientes respuestas posibles:

  • multidivisional structure.

  • product divisional structure.

  • functional organizational structure.

  • matrix structure.

Explicación

Pregunta 31 de 49

1

In a functional structure, each of the major business functions is managed by a

Selecciona una de las siguientes respuestas posibles:

  • functional manager.

  • divisional manager.

  • chief executive officer.

  • line manager.

Explicación

Pregunta 32 de 49

1

The only person in a functional organization who has to have a multifunctional perspective is the

Selecciona una de las siguientes respuestas posibles:

  • CFO

  • CEO

  • COO

  • marketing manager

Explicación

Pregunta 33 de 49

1

Firms pursuing a cost-leadership strategy are typically characterized by

Selecciona una de las siguientes respuestas posibles:

  • loose cost control systems.

  • a de-emphasis on quantitative cost goals and costs.

  • infrequent cost control reports.

  • close supervision of labor, raw materials,inventory, and other costs.

Explicación

Pregunta 34 de 49

1

Which of the following compensation policies is most likely to enhance a firm's ability to pursue a low-cost strategy?

Selecciona una de las siguientes respuestas posibles:

  • awarding employees bonuses based on the total amount of goods produced

  • awarding employees bonuses based on customer comment cards

  • awarding employees bonuses that are equal to 50% of the total cost savings achieved based on employee suggestions and initiatives

  • awarding employees bonuses based solely on how long they have been employed with the company

Explicación

Pregunta 35 de 49

1

Cost-leadership firms are typically characterized by very ________ cost-control systems.

Selecciona una de las siguientes respuestas posibles:

  • tight

  • flexible

  • loose

  • decentralized

Explicación

Pregunta 36 de 49

1

The U in U-form structure stands for

Selecciona una de las siguientes respuestas posibles:

  • "uniform."

  • "unitary."

  • "unilateral."

  • "unambiguous."

Explicación

Pregunta 37 de 49

1

In ________ structures, employees report to two or more people.

Selecciona una de las siguientes respuestas posibles:

  • unilateral

  • functional

  • divisional

  • matrix

Explicación

Pregunta 38 de 49

1

A marketing manager leading the marketing department is an example of a(n) ________ manager.

Selecciona una de las siguientes respuestas posibles:

  • ambidextrous

  • divisional

  • functional

  • unitary

Explicación

Pregunta 39 de 49

1

Firms implementing cost-leadership strategies will have ________ layers in their reporting structure.

Selecciona una de las siguientes respuestas posibles:

  • many

  • relatively simple

  • relatively few

  • relatively complex

Explicación

Pregunta 40 de 49

1

Sematech is pursuing which strategy?

Selecciona una de las siguientes respuestas posibles:

  • cost-leadership business strategy

  • product-differentiation business strategy

  • cost-leadership corporate strategy

  • product-differentiation corporate strategy

Explicación

Pregunta 41 de 49

1

By increasing production volume in an effort to reduce costs, Sematech is pursuing which sources of cost advantage?

Selecciona una de las siguientes respuestas posibles:

  • size differences and diseconomies of scale

  • differential access to productive inputs

  • size differences and economies of scale

  • technological advantages

Explicación

Pregunta 42 de 49

1

If Sematech's efforts to increase its production capacity resulted in increased complexity and an inability of managers to control and operate the firm efficiently, this would be an example of
A) physical limits to efficient size.

Selecciona una de las siguientes respuestas posibles:

  • physical limits to efficient size.

  • worker de-motivation.

  • distance to markets and suppliers.

  • managerial diseconomies.

Explicación

Pregunta 43 de 49

1

If Sematech's expansion plans did not produce the desired cost savings but the company decided to continue production expansion in an effort to capture cost reductions, this would be an example of

Selecciona una de las siguientes respuestas posibles:

  • economies of scale.

  • escalation of commitment.

  • diseconomies of scale.

  • managerial diseconomies.

Explicación

Pregunta 44 de 49

1

If Sematech were to continue seeking methods to maintain the company's cost-leadership position that would be costly to duplicate, which of the following is most likely to be a basis of cost leadership that may be costly to duplicate?

Selecciona una de las siguientes respuestas posibles:

  • establishing economies of scale

  • exploiting learning-curve economies

  • purchasing new technological hardware

  • securing differential access to low-cost productive inputs

Explicación

Pregunta 45 de 49

1

Given Sematech's business level strategy, which organizational structure is the most appropriate?

Selecciona una de las siguientes respuestas posibles:

  • matrix structure

  • U-form structure

  • multidivisional structure

  • product-divisional structure

Explicación

Pregunta 46 de 49

1

If Lucy Sullivan were a Sematech manager who oversaw the finance operations in the company's functional structure, Lucy would be considered a

Selecciona una de las siguientes respuestas posibles:

  • chief executive officer.

  • divisional manager.

  • chief operating officer.

  • functional manager.

Explicación

Pregunta 47 de 49

1

By employing a low-cost competitive strategy, Sematech has made itself

Selecciona una de las siguientes respuestas posibles:

  • less able to withstand industry price wars.

  • more vulnerable to rivals.

  • less vulnerable to the power of suppliers.

  • more vulnerable to the power of buyers.

Explicación

Pregunta 48 de 49

1

If Sematech decided to focus on building its technological hardware, it would focus on elements such as

Selecciona una de las siguientes respuestas posibles:

  • robots

  • organizational culture.

  • the quality of organizational controls.

  • the quality of relations among labor and management.

Explicación

Pregunta 49 de 49

1

If Sematech were to choose to narrow its product line in an effort to reduce costs, this would be an example of

Selecciona una de las siguientes respuestas posibles:

  • technological software.

  • a policy choice.

  • a competitive advantage.

  • a learning-curve effect.

Explicación

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