str 581 week 4 quiz (all correct)

•             1

Which of the grand strategies is typically lowest in risk?

Divestiture

Concentrated growth

Horizontal integration

Market development

•             2

The most compelling reason companies should diversify can be found in situations when

management is similar in various businesses

cash resources can be leveraged

core competencies can be leveraged with other products or into other markets

core competencies are not similar

•             3

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

product development

vertical integration

market development

concentrated growth

•             4

Which matrix involves a framework that can help ensure that businesses' strategies are consistent with strategies appropriate to their strategic environment?

Strategic environments matrix

Strategic choice matrix

Industry attractiveness–business strength matrix

Growth-share matrix

•             5

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

dog

question mark

star

cash cow

•             6

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.

o            

Differentiation

Concentrated growth

Focus

Cost leadership

•             7

Which of the following companies is a good example of a low-cost leader?

Brooks Brothers

Porsche

Wal-Mart

Chivas Regal

•             8

Which of the following is a generic strategy developed by Michael Porter?

Differentiation

Liquidation

Innovation

Market development

•             9

Which of the following is a value discipline?

Operational excellence

Innovation

Concentrated growth

Cost leadership

•             10

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 negotiable

must be diversified

must be transferable

•             11

If a textile producer acquires a shirt manufacturer, this is called

backward horizontal acquisition

forward vertical acquisition

backward vertical acquisition

vertical horizontal acquisition

•             12

What is it called when current products are marketed, often with only cosmetic changes, to customers in related market areas?

Diversification

Product development

Market development

Concentrated growth

•             13

Companies that pursue this value discipline strive to produce a continuous stream of state-of-the-art products and services.

Innovation

Customer intimacy

Product leadership

Operational excellence

•             14

Which of the following represents an operating opportunity to build value or sharing?

Shared brand name

Shared inbound or outbound shipping and materials handling

Shared after-sales service

Shared management know-how

•             15

Firms that enjoy higher profit margins are using which of Michael Porter’s generic strategies?

Cost leadership

Differentiation

Focus

Concentrated growth

•             16

Which matrix makes fine distinctions among business portfolio positions with the inclusion of high/medium/low axes?

Industry strength matrix

Industry attractiveness–business strength matrix

Strategic environments matrix

Growth-share matrix

•             17

The acquisition of one or more businesses operating at the same stage of the production-marketing chain is an example of

innovation

product development

horizontal acquisition

market development