1. Firms that enjoy higher profit margins are using which of Michael Porter's generic strategies?
- A. Cost leadership
- B. Differentiation
- C. Focus
- D. Concentrated growth
2. Which of the following companies is a good example of a low-cost leader?
- A. Wal-Mart
- B. Brooks Brothers
- C. Chivas Regal
- D. Porsche
3. 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.
- A. Focus
- B. Differentiation
- C. Cost leadership
- D. Concentrated growth
4. Which of the following is a generic strategy developed by Michael Porter?
- A. Market development
- B. Differentiation
- C. Liquidation
- D. Innovation
5. Striving to create and market unique products for varied customer groups is called
- A. cost leadership
- B. differentiation
- C. focus
- D. concentrated growth
6. Which of the following is a value discipline?
- A. Operational excellence
- B. Cost leadership
- C. Concentrated growth
- D. Innovation
7. Companies that pursue this value discipline strive to produce a continuous stream of state-of-the-art products and services.
- A. Customer intimacy
- B. Operational excellence
- C. Product leadership
- D. Innovation
8. Which of the grand strategies is typically lowest in risk?
- A. Horizontal integration
- B. Concentrated growth
- C. Market development
- D. Divestiture
9. 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
- A. product development
- B. market development
- C. concentrated growth
- D. vertical integration
10. What is it called when current products are marketed, often with only cosmetic changes, to customers in related market areas?
- A. Diversification
- B. Concentrated growth
- C. Product development
- D. Market development
11. The acquisition of one or more businesses operating at the same stage of the production-marketing chain is an example of
- A. market development
- B. product development
- C. innovation
- D. horizontal acquisition
12. If a textile producer acquires a shirt manufacturer, this is called
- A. vertical horizontal acquisition
- B. backward horizontal acquisition
- C. backward vertical acquisition
- D. forward vertical acquisition
13. 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
- A. star
- B. question mark
- C. cash cow
- D. dog
14. Which matrix makes fine distinctions among business portfolio positions with the inclusion of high/medium/low axes?
- A. Industry strength matrix
- B. Growth-share matrix
- C. Strategic environments matrix
- D. Industry attractiveness-business strength matrix
15. Which matrix involves a framework that can help ensure that businesses' strategies are consistent with strategies appropriate to their strategic environment?
- A. Strategic choice matrix
- B. Growth-share matrix
- C. Industry attractiveness-business strength matrix
- D. Strategic environments matrix
16. Which of the following represents an operating opportunity to build value or sharing?
- A. Shared inbound or outbound shipping and materials handling
- B. Shared management know-how
- C. Shared after-sales service
- D. Shared brand name
17. The most compelling reason companies should diversify can be found in situations when
- A. core competencies are not similar
- B. core competencies can be leveraged with other products or into other markets
- C. management is similar in various businesses
- D. cash resources can be leveraged
18. The core competency must represent a major source of value to be a basis for competitive advantage. Furthermore, the core competency
- A. must be negotiable
- B. must be financial
- C. must be diversified
- D. must be transferable