Jones Company is a company that sells unique jewelry to customers. They have great customer service. This makes customers want to keep coming back and continue buying from the company. This is an example of __________.

You work for the largest manufacturer of aluminum cans in the beverage industry. Your company plans to slightly cut costs on raw materials, but clearly increase spending on manufacturing in order to provide a better quality product. What is the most likely outcome for your company?

John, the owner of a tire manufacturing company, operates in the state of Arizona. After meeting with his team of executives, John decides that the company has significant resources that are not being used (mainly capital) and that the best way to use them is to diversify the company. As a result, John’s company opens a new location in Nevada and begins selling tires in that state, too. Additionally, John’s company acquires another company, Company X. Company X has locations in Nevada and Arizona and specializes in installing tires on a wide range of vehicles. Which of the following types of diversification does John’s company implement?

Express Oil Change has had success in the auto repair shop industry by creating differentiation. Which of the following is NOT a trademark of the company that gives it a competitive advantage through differentiation?

ACME t-shirt company is pursuing a cost leader strategy within the fashion industry. Which of the following sets of factors BEST describes what the company would need to look like to achieve this goal?

Suppose that you are the owner of a sandwich shop in one town. You diversify your risk by opening up another shop in another town. Which diversification have you applied?

Victoria’s Secret decided to close their stores in March due to the global pandemic and reopen in June; however, not all of their stores had the opportunity to reopen. Instead of completely filing for bankruptcy and going out of business, Victoria’s Secret decided to decrease its number of stores and lay off a fraction of their employees. This strategy can be referred to as __________.

You have the idea to open a lower cost, more affordable grocery store in a new neighborhood. Although the neighborhood is new, there will likely soon be more permanent residents in the area who will need a place to shop. About 3 miles away there is another grocery store that is somewhat established and already has customer/brand loyalty. Which disadvantage to operating with a low-cost strategy would best fit the scenario?

Suppose you own a clothing store that wants to employ a cost leadership strategy. You are considering switching to cheaper materials, reducing your advertising costs, laying off customer service employees, using cheaper designs, and changing store hours. Which of the following should NOT be part of your cost leadership strategy?

After opening your electronics store, you want to pursue a differentiation strategy. Which of these could you do to achieve this?