MBA5006 Business Strategy Q & A w/ Rationales 2026 (Complete And Verified Study material) (25pages) LEARNEXAMS

1. A company that operates in a highly competitive and

dynamic industry decides to adopt a differentiation strategy

to gain a competitive advantage over its rivals. Which of

the following actions is most likely to support this strategy?

a) Reducing the costs of production and distribution to

offer lower prices than competitors

b) Offering standardized products and services that appeal

to a broad market segment

c) Investing in research and development to create

innovative and unique products and services*

d) Focusing on a narrow market segment and meeting its

specific needs and preferences

Rationale: A differentiation strategy involves creating

products and services that are perceived as distinctive and

superior by customers, and that can command a premium

price. Investing in research and development is one way to

achieve this, as it can lead to innovation and uniqueness.

The other options are more consistent with a cost

leadership or a focus strategy.

2. A company that operates in the global fast-food industry

faces intense competition from local and regional players,

as well as changing consumer preferences and regulations.

To cope with these challenges, the company decides to

pursue a transnational strategy. Which of the following

capabilities is most essential for the success of this

strategy?

a) The ability to standardize operations and products across