Question 1

A leadership plan that achieves a specific set of goals or objectives is a business strategy.

Accepted Answer

True

Question 2

Porter's Five Forces Model outlines the process for a sales strategy.

Accepted Answer

Porter's Five Forces Model is a framework for analyzing the competition and market dynamics of an industry, it is not specifically designed for creating a sales strategy. While it can provide valuable insights for developing a sales strategy, it is not a direct or prescriptive process.

Question 3

According to Porter's three generic strategies,Hyundai is following a business strategy that focuses on 'broad market and low cost'.

Accepted Answer

Hyundai's business strategy is to offer a range of products to a broad market at a low cost, which aligns with Porter's generic strategy of "cost leadership" within a "broad target market."

Question 4

Successful companies today operate cross-functionally,integrating the operations of all departments.

Accepted Answer

Successful companies today recognize that all departments are interdependent and work together to achieve common goals. They integrate the operations of all departments to ensure collaboration, efficiency, and effectiveness.

Question 5

Tiffany & Company competes in the marketplace by offering high cost custom jewellery.Tiffany & Company is following a broad market and cost leadership strategy.

Accepted Answer

Tiffany & Company is not following a cost leadership strategy, as their products are expensive and customized, indicating a focus on differentiation and higher prices. They are following a differentiation strategy by offering unique and high-end jewellery to a broad market.

Question 6

Two ways to reduce buyer power is through switching costs and loyalty programs.

Accepted Answer

Switching costs make it more difficult for buyers to switch to alternative products or suppliers, reducing their power. Loyalty programs incentivize repeat purchases and can also reduce the likelihood of buyers switching to competitors.

Question 7

The information age is the present time,during which infinite quantities of facts are widely available to anyone who can use a computer.

Accepted Answer

The information age is characterized by the widespread availability of large amounts of information accessible through computer technology.

Question 8

Companies update business strategies continuously as internal and external environments change.

Accepted Answer

Companies need to adapt to changes in the internal and external environments in order to remain competitive and successful. As such, updating business strategies is a continuous process.

Question 9

Competitive intelligence is information collected from multiple sources such as suppliers,customers,competitors,partners and industries that analyses patterns,trends and relationships for strategic decision making.

Accepted Answer

The answer of Competitive intelligence is information collected from multiple...

Question 10

There are many challenges to changing doctors,including transferring medical records and losing the doctor-patient relationship along with the doctor's knowledge of the patient's history.Changing doctors provides a great example of switching costs.

Accepted Answer

The statement is true as it highlights the challenges and consequences of changing doctors, which is an example of switching costs.

Question 11

Companies today are successful when they combine the power of the information age with traditional business methods.

Accepted Answer

This statement is true. Companies today must use technology and data analysis to stay competitive, but they must also rely on traditional business practices such as good leadership, effective communication, and strong customer relationships. Combining these approaches can lead to success in the modern business world.

Question 12

A variable is a business intelligence characteristic that stands for a value that cannot change over time.

Accepted Answer

A variable is a characteristic that can vary or change over time.

Question 13

Technology provides countless business opportunities,but can also lead to pitfalls and traps for a business.

Accepted Answer

While technology can offer many advantages and opportunities for businesses, it can also present risks, such as cybersecurity threats and automation replacing jobs. Therefore, it is essential for companies to be proactive in identifying and addressing potential risks and challenges posed by new technology.

Question 14

Polaroid had a unique competitive advantage for many years until it forgot to observe competitive intelligence.The firm went bankrupt when people began taking digital pictures.Polaroid provides a great example of Porter's threat of new entrants.

Accepted Answer

This is an example of Porter's threat of substitute products or services.

Question 15

With the Five Forces Model,companies should watch the forces in the market.If the forces are strong,competition generally increases; and,if the forces are weak,competition typically decreases.

Accepted Answer

This statement is true. The Five Forces Model is used to analyze the competitive environment of an industry, and if the forces are strong (such as high rivalry among competitors, high threat of new entrants, high bargaining power of buyers and suppliers, and high threat of substitutes), it typically means that competition is intense. On the other hand, if the forces are weak, competition is usually less intense.

Question 16

Product differentiation occurs when a company develops unique differences in its products or services with the intent to influence demand.

Accepted Answer

Product differentiation is the process of creating unique differences in a product or service to attract customers and influence demand. By making a product stand out from its competitors in terms of quality, design, features, or branding, companies can differentiate their offerings and appeal to specific customer segments.

Question 17

For an organisation to succeed,every department or functional area must work independently to be most effective.

Accepted Answer

For an organization to succeed, every department or functional area must work together collaboratively towards a common goal. Independence can lead to silos and hinder communication and problem-solving across departments.

Question 18

An overview of systems thinking includes input,process,output and finances.

Accepted Answer

An overview of systems thinking typically includes input, process, output, and feedback loops, not finances. Finances can be a part of the system being analyzed but are not a fundamental component of the systems thinking framework itself.

Question 19

When a company is the first to market with a competitive advantage,it gains a particular benefit known as competitive intelligence.

Accepted Answer

The benefit gained by a first-to-market company is known as first-mover advantage, not competitive intelligence. Competitive intelligence refers to the process of gathering and analyzing information about competitors in order to make informed business decisions.

Question 20

Supplier power is one of Porter's five forces,and it measures the suppliers' ability to influence the prices they charge for supplies (including materials,labour and services).

Accepted Answer

This statement is correct. Supplier power is one of Porter's five forces, and it measures the degree to which suppliers can influence the prices of inputs they provide to a business. This can include materials, labor, and services, among other things. High supplier power can lead to increased costs for businesses, which may need to pass those costs on to customers through higher prices.

Quiz 1: Competing in the Information Age