Question 1

Jennifer Bloom is writing a paper, and she must determine which of Porter's three generic strategies The Museum Company has implemented.Jennifer finds out that The Museum Company offers specialty products found only in museums around the world to affluent customers.What would Jennifer determine The Museum Company is using as its generic strategy?
A)Broad market, low cost.
B)Narrow market, high cost.
C)Broad market, high cost.
D)Narrow market, low cost.

Accepted Answer

The Museum Company competes using a narrow market and high cost focus.

Question 2

Which of the following offers an example of a company operating in a narrow focused-market operating as the low-cost provider?
A)Walmart.
B)Tiffany & Co.
C)Neiman Marcus.
D)Payless Shoes.

Accepted Answer

Payless competes by offering a specific product (narrow market)-shoes at low prices.Their strategy is to be the low-cost provider of shoes.

Question 3

Which of the following is similar to focused strategy versus broad strategy?
A)Large market versus leadership.
B)Large market versus uniqueness.
C)Niche market versus large market.
D)Niche market versus generic.

Accepted Answer

Focused strategies versus broad strategies is synonymous to niche market versus large markets.

Question 4

According to Porter, companies that wish to dominate broad markets should operate using a ________ strategy.
A)Cost leadership with a low cost.
B)Differentiation with a low cost.
C)Cost leadership with a high cost.
D)All of these.

Accepted Answer

According to Porter, broad markets should utilize cost leadership with a low cost and differentiation with a high cost.

Question 5

Which of the following represents procurement as part of the support value activities in a value chain analysis?
A)Purchases inputs such as raw materials, resources, equipment and supplies.
B)Applies MIS to processes to add value.
C)Distributes goods and services to customers.
D)Promotes, prices, and sells products to customers.

Accepted Answer

Procurement is the process of the support value activity that purchases inputs such as raw materials, resources, equipment and supplies.

Question 6

When reviewing Porter's value chain analysis, which of the following provides customer support after the sale of goods and services?
A)Inbound logistics.
B)Outbound logistics.
C)Operations.
D)Service.

Accepted Answer

The service activity within the primary value activities will provide customer support after the sale of goods and services.

Question 7

Broad differentiation, broad cost leadership, and _________ create the three generic strategies identified by Porter.
A)Narrow market leadership.
B)High cost versus low cost.
C)Focused strategy.
D)None of these.

Accepted Answer

The three strategies proposed by Porter are (1) broad cost leadership, (2) broad differentiation, and (3) focused strategy.

Question 8

Which of the following demonstrates a company that has implemented a low-cost, broad-market strategy?
A)Neiman Marcus.
B)Payless Shoes.
C)The Sharper Image.
D)Walmart.

Accepted Answer

Walmart competes by offering a broad range of products at low prices.Its business strategy is to be the low-cost provider of goods for the cost-conscious consumer.

Question 9

When analyzing Porter's three generic strategies for entering a market, if you have a focused strategy what market should you target?
A)A niche market.
B)A broad market.
C)Neither niche or broad markets.
D)Both niche and broad markets.

Accepted Answer

When analyzing Porter's three generic strategies for entering a market, if you have a focused strategy you should target a narrow market, niche market, or a unique market.

Question 10

Your boss, Kerry Miller, has asked you to analyze the soft-drink industry using Porter's Five Forces Model.Which of the following represents a substitute product in the soft-drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Vitamin water, fruit juice, coffee.

Accepted Answer

Vitamin water, fruit juice, or coffee are all substitute products to a soft drink.

Question 11

Your boss, Tom Repicci, has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a cost leadership strategy?
A)Southwest, Horizon, Frontier, JetBlue.
B)British Airways, Singapore Airlines, Virgin Atlantic.
C)Sky Taxi-a rent-by-the-hour personal plane service.
D)All of these.

Accepted Answer

Southwest, Horizon, Frontier, and JetBlue all use cost leadership business strategies.

Question 12

Your boss, Tom Repicci, has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a focused strategy?
A)Southwest, Horizon, Frontier, JetBlue.
B)British Airways, Singapore Airlines, Virgin Atlantic.
C)Sky Taxi-a rent-by-thehour personal plane service.
D)All of these.

Accepted Answer

Sky Taxi is using a focused-strategy targeting individuals that want to hire private planes.

Question 13

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter.Which of the following is not included as one of Porter's three generic strategies?
A)Broad differentiation.
B)Supplier cost differentiation.
C)Focused strategy.
D)Broad cost leadership.

Accepted Answer

Porter has identified three generic business strategies for entering a new market: (1) broad cost leadership, (2) broad differentiation, and (3) focused strategy.

Question 14

Your boss, Kerry Miller, has asked you to analyze the soft-drink industry using Porter's Five Forces Model.Which of the following represents a threat of a new entrant in the soft-drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Vitamin water, fruit juice, coffee.

Accepted Answer

Zevia Natural Diet Soda represents a new entrant in the soft-drink industry.

Question 15

Your boss, Tom Repicci, has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a differentiation strategy?
A)Southwest, Horizon, Frontier, JetBlue.
B)British Airways, Singapore Airlines, Virgin Atlantic.
C)Sky Taxi-a rent-by-the-hour personal plane service.
D)All of these.

Accepted Answer

British Airways, Singapore Airlines, and Virgin Atlantic all compete using differentiation strategies.

Question 16

When analyzing the bookstore industry, some of today's businesses compete with different business strategies and cost strategies.Which of the following is using a broad market competitive scope along with a low cost strategy?
A)Amazon.com.
B)Any local independent book store that specializes in antique books.
C)Barnes & Noble.
D)Target.

Accepted Answer

Amazon.com competes by offering a broad range of differentiated products at low prices.

Question 17

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces Model.Which of the following represents buyer power in the soft-drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Vitamin water, fruit juice, coffee.

Accepted Answer

Buyer power in the soft drink industry is represented by Walmart.

Question 18

If a business is following a focused strategy then its competitive scope is ________.
A)Broad market.
B)Narrow market.
C)Broad range products.
D)Broad range of services.

Accepted Answer

When you have a market segment, the competitive scope should be a narrow market, and the cost strategy should be a focused strategy.

Question 19

Your boss, Kerry Miller, has asked you to analyze the soft-drink industry using Porter's Five Forces Model.Which of the following represents rivalry in the soft-drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Coke and Pepsi submit bids to the owner of a football stadium for the exclusive sale of their products during games.

Accepted Answer

The rivalry between Coke and Pepsi is famous in the soft-drink industry.

Question 20

When applying Porter's three generic strategies, Tiffany & Co.has a competitive scope and cost strategy that is __________.
A)Broad market-high-cost strategy.
B)Narrow market-low-cost strategy.
C)Narrow market-high-cost strategy.
D)Broad market-low-cost strategy.

Accepted Answer

Tiffany & Co.competes by offering a differentiated product, jewelry, at high prices.Its business strategy allows it to be a high-cost provider of premier designer jewelry to affluent consumers.

Quiz 1: Management Information Systems: Business Driven MIS

Which of the following offers an example of a company operating in a narrow focused-market operating as the low-cost provider?

Which of the following is similar to focused strategy versus broad strategy?

According to Porter, companies that wish to dominate broad markets should operate using a ________ strategy.

Which of the following represents procurement as part of the support value activities in a value chain analysis?

When reviewing Porter's value chain analysis, which of the following provides customer support after the sale of goods and services?

Broad differentiation, broad cost leadership, and _________ create the three generic strategies identified by Porter.

Which of the following demonstrates a company that has implemented a low-cost, broad-market strategy?

When analyzing Porter's three generic strategies for entering a market, if you have a focused strategy what market should you target?

Your boss, Kerry Miller, has asked you to analyze the soft-drink industry using Porter's Five Forces Model.Which of the following represents a substitute product in the soft-drink industry?

Your boss, Tom Repicci, has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a cost leadership strategy?

Your boss, Tom Repicci, has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a focused strategy?

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter.Which of the following is not included as one of Porter's three generic strategies?

Your boss, Kerry Miller, has asked you to analyze the soft-drink industry using Porter's Five Forces Model.Which of the following represents a threat of a new entrant in the soft-drink industry?

Your boss, Tom Repicci, has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a differentiation strategy?

When analyzing the bookstore industry, some of today's businesses compete with different business strategies and cost strategies.Which of the following is using a broad market competitive scope along with a low cost strategy?

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's Five Forces Model.Which of the following represents buyer power in the soft-drink industry?

If a business is following a focused strategy then its competitive scope is ________.

Your boss, Kerry Miller, has asked you to analyze the soft-drink industry using Porter's Five Forces Model.Which of the following represents rivalry in the soft-drink industry?

When applying Porter's three generic strategies, Tiffany & Co.has a competitive scope and cost strategy that is __________.