1. Which of the following represents an operating opportunity to build value or sharing?
- Shared inbound or outbound shipping and materials handling
- Shared after-sales service
- Shared brand name
- Shared management know-how
2. Firms that enjoy higher profit margins are using which of Michael Porter's generic strategies?
- Cost leadership
- Concentrated growth
- Focus
- Differentiation
3. If a textile producer acquires a shirt manufacturer, this is called
- backward horizontal acquisition
- vertical horizontal acquisition
- backward vertical acquisition
- forward vertical acquisition
4. The core competency must represent a major source of value to be a basis for competitive advantage. Furthermore, the core competency
- must be negotiable
- must be financial
- must be diversified
- must be transferable
5. Which of the following companies is a good example of a low-cost leader?
- Wal-Mart
- Brooks Brothers
- Porsche
- Chivas Regal
6. The grand strategy in which the firm directs its resources to the profitable growth of a single product, in a single market and with a single technology is termed
- concentrated growth
- product development
- market development
- vertical integration
7. Which matrix involves a framework that can help ensure that businesses' strategies are consistent with strategies appropriate to their strategic environment?
- Growth-share matrix
- Strategic choice matrix
- Strategic environments matrix
- Industry attractiveness-business strength matrix
8. For the ABC Company, the Alpha business is in a dominant market share position in a mature market. As per the BCG matrix, Alpha is a
- star
- dog
- question mark
- cash cow
9. What is it called when current products are marketed, often with only cosmetic changes, to customers in related market areas?
- Concentrated growth
- Market development
- Product development
- Diversification
10. Which matrix makes fine distinctions among business portfolio positions with the inclusion of high/medium/low axes?
- Industry attractiveness-business strength matrix
- Industry strength matrix
- Growth-share matrix
- Strategic environments matrix
11. Which of the following is a value discipline?
- Operational excellence
- Innovation
- Cost leadership
- Concentrated growth
12. Which of the grand strategies is typically lowest in risk?
- Divestiture
- Market development
- Horizontal integration
- Concentrated growth
13. Which of the following is a generic strategy developed by Michael Porter?
- Market development
- Differentiation
- Liquidation
- Innovation
14. The acquisition of one or more businesses operating at the same stage of the production-marketing chain is an example of
- market development
- product development
- horizontal acquisition
- innovation
15. Firms that follow this type of generic strategy can sometimes have difficulties succeeding without compromising the key attributes of a company's products or services.
- Cost leadership
- Focus
- Differentiation
- Concentrated growth
16. Companies that pursue this value discipline strive to produce a continuous stream of state-of-the-art products and services.
- Innovation
- Operational excellence
- Product leadership
- Customer intimacy
17. The most compelling reason companies should diversify can be found in situations when
- core competencies can be leveraged with other products or into other markets
- management is similar in various businesses
- core competencies are not similar
- cash resources can be leveraged