Strategic Management (Chapter 4 Quiz) Midterm Grading School of Business and Management Test I. Identification. x2 1. I involves engaging in primary value-chain activities and support functions that allow firm to sirmwitaneousby pursue low cost and differentiation. Integrated 2. It is an integrated set of actions taken to produce goods or services that serve the needs of particular competitive segment, 3. These are resources and capabilities that serve as a source of competitive advantage for the firm over its rival 4, Dividing customers into groups based on their needs. 5. This market is based on demographic, socioecononmic, geographic, psychological, consumption, and perceptus! factors. 6. It is an integrated and coordinated set of commitments and actions the firm uses to gain 2 competitive ‘advantage by exploiting core competencies in specific product markets. 7. The second dimension of firm’s relationships with customers, is concerned with the depth and detail of the two- way flow of information between the firm and customer. 8, It is an integrated set of actions taken to produce goods or services ‘customers at the lowest cost. 9. It is the support function of differentiation strategy which acquire and develop excellent information systems that provide up-to-date market intelligence and real-time information in all areas relevant for strategic and major operational decisions. 10. It is concerned with facilitating useful interactions with customers. features that are acceptable to Test ll. True or False. X2 1. When a firm earns lower-than-average returns, the highest priority is given to sati ‘market stakeholders over the needs of product market and organizational shareholders. 2, Strategic leaders must have a strong strategic orientation while simultaneously embracing change in the dynamic competitive landscape. 3. An organization's willingness to tolerate or encourage unethical behavior isa reflection of its core values 4. The assumptions of the industrial or, i ‘Therefore, organizational strategists must choose 5. Risk in terms of financial returns refle: result from a particular investment. & Companies without core competencies in their value-chain activities and support functions are still able to WRESTUY implement either @ cost leadership or a differentiation strategy, although they cannot implement an integrated cost leadershir ferentiation strategy. 7. One of the benefits of the integrated the cost leadership or differentiation Strategies. 8. The value-creating activities associated with the cost leadership strategy and differenti sfying the needs of capital one or the other model as the basis for developing a strategic plan. cts an investor's uncertainty about the economic gains or losses that will Cost leadership/differentiation strategy is that itis less risky than either same. n strategy are the 8. Every firm uses all levels of strategy: corporate-level, merger and acqui 10. Almost any identifiable human ar neon . os ion, international, and cooperative.