4. What must a cost-leadership strategy accomplish to be successful? A) It must increase the firm's production cost above that of its competitors while offering adequate value. B) It must reduce the firm's production cost below that of its competitors while offering adequate value. C) It must increase the firm's production cost above that of its competitors while offering superior value. D) It must reduce the firm's production cost below that of its competitors while offering superior value. 5. Amazon.com has decided to enter the college bookstore market. The goal of "Amazon Campus" is to offer co- branded university-specific web sites that offer textbooks and paraphernalia, such as logo sweaters and baseball hats. This development shows Amazon's relentless pursuit of A) Geographic diversification. B) Product diversification. C) Vertical integration. D) Horizontal integration. 6. Decisions relating to the range of products and services a firm will offer determine the firm's A) Level of diversification. B) Geographic scope. C) Vertical integration. D) Absorptive capacity. 7. Which of the following stakeholders of a company would most likely be responsible for formulating a corporate strategy? A) The first-line employees B) The creditors C) The chief executive officer D) The middle manager
