Answer the following statements true (T) or false (F)

Question

1. Brilliante Pens, a 125-year-old pen manufacturer, markets very high-quality pens, many of which cost more than $1,000 each, to executives globally, always maintaining its reputation of superior value in its narrow market. Brilliante is using a cost-focus strategy.
2. For over 20 years, ABC Manufacturing produced only one product, a car part for Moraine Assembly (the Moraine, Ohio, General Motors truck factory). Because its single-product business is so closely tied to Moraine Assembly, ABC is a vulnerable company.
3. In a single-product strategy, a company makes and sells only one product within its market. An example of a businessperson following a single-product strategy is a farmer who grows and sells only corn.
4. Execution consists of questioning, analysis, and follow-through to mesh strategy with reality, align people with goals, and achieve promised results.

Answer 1

1. FALSE
The focused-differentiation strategy is to offer products or services that are of unique and superior value compared to those of competitors and to target a narrow market. Some luxury cars, like the Rolls-Royce, Ferrari, and Lamborghini, are so expensive that only a few car buyers can afford them. In contrast, the cost-focus strategy is to keep the costs, and hence prices, of a product or service below those of competitors and to target a narrow market.
2. TRUE
In a single-product strategy, a company makes and sells only one product within its market. This strategy allows you to focus your manufacturing and marketing efforts on that product. The risk, of course, is that you are vulnerable if a rival gets the jump on you, or if an act of God intervenes, in which case your entire business may go under. ABC Manufacturing will have a hard time staying in business if GM closes Moraine Assembly or moves it to another country.
3. TRUE
In a single-product strategy, a company makes and sells only one product within its market—for example, a corn farmer.
4. TRUE
Execution consists of using questioning, analysis, and follow-through to mesh strategy with reality, align people with goals, and achieve promised results.