Leadership Multiple Choice Questions and Answers

Questions

1 Cost leadership as a strategy requires a firm to __.

A aim at a cost advantage in a niche market

B be unique in its product offering

C aggressively search out efficiencies to maintain the lowest cost structure

D aim to be similar to its competition in most operations

View Answer

Answer: aggressively search out efficiencies to maintain the lowest cost structure

2 Firms implementing cost-leadership strategies will generally adopt a

A multidivisional structure.

B functional organizational structure.

C product divisional structure.

D matrix structure.

View Answer

Answer: functional organizational structure.

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

A relatively complex

B relatively simple

C relatively few

D many

View Answer

Answer: many

4 One aspect of using a cost leadership strategy is that experience effects may lead to lower costs.

A True

B False

View Answer

Answer: True

5 The typical risks of a cost leadership strategy includes:

A production and distribution processes becoming obsolete

B the inability to balance high differentiation and low price.

C excessive differentiation to

D loss of customer loyalty.

View Answer

Answer: production and distribution processes becoming obsolete

6 One aspect of using a cost leadership strategy is that experience effects may lead to lower costs.

A True

B False

View Answer

Answer: True

7 The typical risks of a cost leadership strategy includes:

A production and distribution processes becoming obsolete

B the inability to balance high differentiation and low price.

C the inability to balance high differentiation and low price.

D the inability to balance high differentiation and low price.

View Answer

Answer: production and distribution processes becoming obsolete

8 Firms pursuing a cost-leadership strategy are typically characterized by?

A loose cost control systems.

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

C Both A and B

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

View Answer

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

9 What must a cost-leadership strategy accomplish to be successful?

A It must increase the firm’s cost above that of its competitors while offering adequate value.

B It must reduce the firm’s cost below that of its competitors while offering superior value.

C Both A and B

D It must reduce the firm’s cost below that of its competitors while offering adequate value.

View Answer

Answer: It must reduce the firm’s cost below that of its competitors while offering adequate value.

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