Final Exam - Strategic Mgt. - MBC

A cost leadership strategy primarily aims to:

• Offer unique products at high prices

• Become the lowest-cost producer in the industry

• Focus only on customer service

• Target only niche markets

Which of the following is NOT a source of cost advantage?

• Economies of scale

• Efficient operations

• High differentiation costs

• Learning curve effects

Which company best represents a successful cost leadership strategy?

• Apple

• Walmart

• Rolex

• Louis Vuitton

A risk of cost leadership is:

• Lower operational efficiency

• Inability to differentiate products

• High marketing costs

• Dependence on innovation

Which is most consistent with cost strategy?

• Cutting unnecessary expenses

• Increasing R&D spending

• Hiring celebrity endorsers

• Premium pricing

A firm pursuing cost leadership must emphasize:

• Standardization

• Customization

• Product innovation

• Market segmentation

The primary goal of a non-profit organization is to:

• Maximize profit

• Serve a social or community purpose

• Satisfy shareholders

• Compete aggressively in markets

Which statement is TRUE about non-profit organizations?

• They distribute profits to owners

• They are driven by donor funding and grants

• They aim to maximize shareholders’ wealth

• They have no accountability

Non-profits differ from for-profit organizations because they:

• Focus on community impact rather than income

• Pay higher taxes

• Have unlimited capital

• Always run at a loss

Which of the following is an example of a non-profit?

• Coca-Cola

• Red Cross

• Amazon

• Toyota