Test Bank For The Skilled Helper International 9th Edition By Gerard

Chapter 4 Building Competitive Advantage Through

Functional Level Strategies
TRUEFALSE
1. Functional strategies play only a small role in organizational success because they occur at a low
level in the firm.
(A) True
(B) False
Answer : (B)
2. Distinctive competencies shape the functional-level strategies that a company can pursue.
(A) True
(B) False
Answer : (A)
3. Diseconomies of scale are the unit cost increases associated with a large scale of output.
(A) True
(B) False
Answer : (A)
4. The concept of economies of scale suggests that unit costs continue to fall indefinitely as output
volume increases.
(A) True
(B) False
Answer : (B)
5. Learning effects tend to be more significant when a technologically complex task is performed
only occasionally.
(A) True
(B) False
Answer : (B)
6. No matter how complex the task is, learning effects typically die out after a limited period of time.
(A) True
(B) False
Answer : (A)
7. All else being equal, if a company moves down the experience curve faster than its rivals, it
should realize a lower cost structure.
(A) True
(B) False
Answer : (A)
8. Flexible production technologies allow a company to produce a wider variety of end products at a
the unit cost that at one time could be achieved only through the mass production of a standardized
output
(A) True
(B) False
Answer : (A)
9. Mass customization describes the ability of companies to use flexible manufacturing technology to
reconcile the two goals of low cost and differentiation through product customization.
(A) True
(B) False
Answer : (A)
10. There is a negative relationship between the length of time that a customer stays with a
company and profit per customer.
(A) True
(B) False
Answer : (B)