STR 581 week 4 knowledge check

STR 581 week 4 knowledge check

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