1. During the maturity stage of the product life cycle, the:
a. number of established firms producing the product declines.
b. product differentiation concerns are negligible.
c. overall demand for the product increases.
d. number of new firms producing the current product increases.
2. A theoretical advantage of unrelated diversification is that:
a. a business will have a stable performance over time.
b. corporate managers will focus on the future performance of the business.
c. corporate managers will have a great understanding of a business.
d. a business will have high performance at the outset.
3. It is difficult to imitate a distinctive competence because:
a. it might not be applicable to a competing firms’ products.
b. its application will lead to competitive parity.
c. it will lead to a competitive disadvantage.
d. its nature might not be understood by competing firms.
4. Which of the following is true of the BCG matrix?
a. It divides the market into low-, medium-, and high-growth markets.
b. It helps managers understand how strategic business units contribute to an overall organization.
c. It suggests that slow-growing markets have more stable and attractive business opportunities for an organization’s products.
d. It helps in restructuring the structure of an organization.
5. Which of the following areas does a well-conceived strategy address?
a. Management dynamics
b. Motivation approaches
c. Resource deployment
d. Financial capability