Strategic Management: Strategic Managment

Gregory G. Dess, University of Texas at Dallas
G.T. Lumpkin, University of Illinois--Chicago

Business-Level Strategy: Creating and Sustaining Competitive Advantages

True or False


1	A firm motivated by cost leadership will usually spend relatively more on product related R&D than on process related R&D.
		A)	TRUE
		B)	FALSE


2	An advantage of high differentiation is that even if many competitors follow the same strategy, differentiation is still present for all.
		A)	TRUE
		B)	FALSE


3	If a firm has a thriving differentiation strategy, it is not necessary to attain parity on cost.
		A)	TRUE
		B)	FALSE


4	By itself, focus often constitutes a competitive advantage.
		A)	TRUE
		B)	FALSE


5	A significant idea behind the "profit pool" concept is that there is always a sturdy relationship between the generation of revenues and the capturing of profits.
		A)	TRUE
		B)	FALSE


6	Customers are very likely to establish brand loyalty during the growth stage of the market life cycle.
		A)	TRUE
		B)	FALSE


7	Since they are no longer profitable, businesses that compete in markets that are in decline should simply be harvested or divested.
		A)	TRUE
		B)	FALSE

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