All of the following are true about product life cycles except for
A. Strong sales growth and low barriers to entry often characterize the early stages of a product’s introduction
B. New entrants have substantially poorer cost positions, as a result of their small market shares when compared to earlier entrants.
C. Later phases are characterized by slower market growth rates
During the high growth phases, firms usually experience high positive operating cash flow
E. The introduction of product enhancements can extend a firm’s product life cycle
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All of the following are true about experience curves except for
Applicable primarily to differentiation strategies
B. Applicable primarily to cost leadership strategies
C. Reflect declining average unit costs due to increasing accumulated production levels
D. Reflect both economies of scale and the introduction of more efficient production methods as output increases
E. Often found in commodity-type industries
All of the following represent generic business strategies except for
A. Cost leadership
B. Differentiation
C. Focus
D. Market segmentation
E. A and D
A good mission statement should be
A. Very broadly defined
B. Very narrowly defined
C. Reference the firm's targeted markets, product or service offering, distribution channels and management’s core operating beliefs
Describe only the purpose of the corporation
E. A and C only
In a conducting a self-assessment, a firm should consider all of the following except for
A. The degree on government regulation in its targeted markets
B. The effectiveness of its R&D activities
C. Product quality
D. Responsiveness to changing customer needs
E. Brand name recognition
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