Corporate strategy for a diversified or multibusiness enterpriseO involves how functional strategies should be aligned with business strategies in each of the various lines of businessthe company is in.○ concerns how best to allocate resources across the departments of each line of business the company is in.○ deals chiefly with what the strategic intent of each of its business units should be.○ is orchestrated by midlevel managers and focuses on how to create a competitive advantage in each specific line ofbusiness the total enterprise is in.○ is orchestrated by senior corporate executives and centers around the kinds of initiatives the company uses toestablish business positions in different industries. A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by○ outproducing rivals and thus having more available units for sale.O maintaining the present price and using the lower-cost edge to earn a higher profit margin on each unit sold.○ underpricing rivals and attracting quality-sensitive buyers in great enough numbers.○ spending heavily on advertising to promote its cost advantage to build strong customer loyalty.○ going all out to use its cost advantage to capture a dominant share of the market.

Strategic management helps the firm establish its long-term direction for a business by formulating…

Answered: Corporate strategy for a diversified or…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Similar questions

‏1. Everything a company does internally is called a profit center of the company . Select one : True False2.Brand equity reflects the value of the brand name and logo as promotional tools for attracting future buyers and building market share and profitability . Select one : True False
Which of the following statements regarding the creation of brand loyalty to create and maintain market power is false? a) Brand loyalty is determined primarily by real differences in competing products. b) One study showed that, in the case of competing beers, brand loyalty has relatively little to do with price. c) Brand loyalty efforts often focus on creating perceived, as opposed to real, differences among products. d) Brand loyalty can be enhanced by improving the level of service associated with a particular product.
Because the short-term customers can be very profitable, it is clear that loyalty is not the only one path to profitability. A)True B)False
A company that pursues and achieves strategic objectives: Answer C) is frequently in a better position to improve its future financial performance because of the increased competitiveness that flows from the achievement of strategic objectives. D) is likely to be a weak financial performer because diverting resources to the pursuit of strategic objectives takes away from the achievement of financial performance targets. B) is generally not strongly focused on its true mission of making a profit. A) is likely to weaken the achievement of its short-term and long-term financial objectives.
21) Which of the following statements is not correct about pricing and prices? Select one: a. It is the sum of all the values that customers sacrifice to get beoefits of having a product. b.itis the amount of money charged for a product or a service c. itis the only element in the marketing mix that produces revenuer all other elemests represent cost. d. itis one of the least important elements that determine a firm's mariket share and protitability
Discuss the balance between customers creating value in the short term and creating value in the long term. Choose only one option. (a) A firm promotes good corporate ethics when its managers “borrow” from the future to generate short-term profit. (b) Traditional metrics of financial success do not capture all the ways that customers create value. (c) Overpromising in order to maximise short-term customer value would not hurt customer trust. (d) Providing excellent service to the customer is a cost-free benefit to the firm. Do not proven hand written solution
1.Grocery chains such as Abdullah Al-Othaim Markets track consumers’ purchasing habits through store loyalty cards like Iktisab. These cards collect purchasing data and build consumer profiles. How can grocers like Abdullah Al-Othaim Markets use these data to create value for the firm and consumers? (Minimum 150 words) 2.Identify a specific brand of your choice from the local market that has developed a high level of brand equity. What specific aspects of that brand establish its brand equity? Critically examine based on the concepts discussed in Chapter-11. (Minimum 150 words) 3.Coupons and rebates benefit different distribution channel members. Which would you prefer if you were a manufacturer, a retailer, and a consumer and why? Explain based on the concepts discussed in Chapter-15. ) (Minimum 150 words) 4.Some argue that retailers can be eliminated from the distribution channel because they only add costs to the final product without creating any…
3. Companies such as Johnson and Johnson are in a more advantaged position because they have the product knowledge and thus, consumers must rely on them for accurate information about product safety, usage, and effectiveness. Given this situation, companies have a duty to take special care to ensure that consumers' interests are not harmed by the products that they offer them. Discuss what can Johnson and Johnson do in design, production, and marketing to ensure that the above is achieved. Only typing answer Please explain step by step
A company invests considerable time and money to develop sophisticated cost functions that rate high on all evaluative criteria. In the course of using the cost functions, a manager notes that in several instances, the actual costs were different from the predicted costs, resulting in lower profits during one quarter of the year. The question of the value of the cost function is asked. Please provide some suggestions on how to respond to the manager.
Which of the following is an advantage of a company following a focused strategy? Companies following the focused differentiation strategy can charge very high prices. Damaging attacks never comes from larger firms. The companies are protected from the damaging attacks of smaller firms that adopt an even narrower focus. Companies following the focused differentiation strategy never have their growth stymied irrespective of the fact that they serve a niche market. The niche that is an area of operation of one company cannot be made to disappear or be taken over by larger competitors.
What is it called when most customers have to walk a minimal amount of steps to purchase a product? S.O.S (Socially Optimal Solution) B, P.O.S. (Positionally Optimistic Sales) M.E.P (Monetary Equalization Pattern) © C.CA. (Cousin Competition Agreement)
20- Which one of the following is the benefit for setting manufacturer’s suggested retail price? a. Drive the competitors b. Reduce retail price competition c. Raise prices and earn profits d. Increasing the value of the product

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