About the Product

1. Which of the following represents an operating opportunity to build value or sharing?
Shared management know-how
Shared inbound or outbound shipping and materials handling
Shared brand name
Shared after-sales service

2. 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.
Focus
Cost leadership
Concentrated growth
Differentiation

3. Which matrix involves a framework that can help ensure that businesses’ strategies are consistent with strategies appropriate to their strategic environment?
Strategic environments matrix
Industry attractiveness–business strength matrix
Strategic choice matrix
Growth-share matrix

4. Which of the following companies is a good example of a low-cost leader?
Porsche
Chivas Regal
Wal-Mart
Brooks Brothers

5. If a textile producer acquires a shirt manufacturer, this is called
backward horizontal acquisition
forward vertical acquisition
backward vertical acquisition
vertical horizontal acquisition

6. What is it called when current products are marketed, often with only cosmetic changes, to customers in related market areas?
Product development
Concentrated growth
Market development
Diversification

7. The acquisition of one or more businesses operating at the same stage of the production-marketing chain is an example of
product development
market development
innovation
horizontal acquisition

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
question mark
star
cash cow
dog

9. Companies that pursue this value discipline strive to produce a continuous stream of state-of-the-art products and services.
Innovation
Operational excellence
Customer intimacy
Product leadership

10. Firms that enjoy higher profit margins are using which of Michael Porter’s generic strategies?
Concentrated growth
Cost leadership
Focus
Differentiation

11. Which of the following is a generic strategy developed by Michael Porter?
Innovation
Differentiation
Market development
Liquidation

12. Which of the following is a value discipline?
Cost leadership
Innovation
Concentrated growth
Operational excellence

13. The core competency must represent a major source of value to be a basis for competitive advantage. Furthermore, the core competency
must be financial
must be diversified
must be transferable
must be negotiable

14. 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
market development
product development
concentrated growth
vertical integration

15. Which of the grand strategies is typically lowest in risk?
Concentrated growth
Horizontal integration
Market development
Divestiture

16. The most compelling reason companies should diversify can be found in situations when
cash resources can be leveraged
core competencies can be leveraged with other products or into other markets
core competencies are not similar
management is similar in various businesses

17. Which matrix makes fine distinctions among business portfolio positions with the inclusion of high/medium/low axes?
Strategic environments matrix
Industry strength matrix
Industry attractiveness–business strength matrix
Growth-share matrix