Consulting Quiz 9 - 180 Degrees Consulting, SRCC

Welcome to your Consulting Quiz 9

Which of the following is a benefit of price skimming ?

Gains market share

Covers cost

Breaks even

Allows firm to make largest possible profit

Which one is a risk involved with cost leadership ?

Ability to withstand increases in suppliers' cost.

Gold plating

Cost differences increase with market maturity.

Loss of quality and features aspired.

The limitation of resources within a firm makes which of the following very important?

Short-term planning

Strategy implementation

Strategy formulation

Long-range planning

Which statement associated with competitive advantages is true?

If many competitive firms take up similar differentiation methods , they may be perceived as equals by the consumer.

With a cost leadership strategy, firms should not be concerned with differentiation.

Acquiring multiple types of competitive advantage can lead to downfall.

In the long run, businesses with competitive advantages will only earn normal profits.

A disadvantage of international operations is

Competitors in foreign markets might not exist.

Foreign operations can allow firms to establish low-cost manufacturing

Economies of scale can be obtained from global operations and not solely domestic markets.

Communication Barriers

After the pricing objectives have been determined, a firm should

Decide final price

Calculate cost of production

Select pricing method

Determine demand for product

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