Question 1

Which of these is true about the dog division?
A) It has a large market share in a rapidly growing industry.
B) It has a large market share in a slow growth industry.
C) It has a small market share in a rapidly growing industry.
D) It has a small share of a slow growth market.
E) It has a moderate market share in a rapidly growing industry.

Accepted Answer

The answer of Which of these is true about the...

Question 2

The question mark has a
A) large market share in a rapidly growing industry.
B) large market share in a slow growth industry.
C) small market share in a rapidly growing industry.
D) small share of a slow growth market.
E) moderate market share in a slow growth industry.

Accepted Answer

The question mark is a product in a rapidly growing industry but has a small market share, indicating that it has potential for growth but requires significant investment to increase its market share.

Question 3

Which of the following is NOT one of Porter's competitive forces?
A) Potential new entrants
B) Bargaining power of suppliers
C) Bargaining power of stockholders
D) Bargaining power of customers
E) Rivalry among competitors

Accepted Answer

Porter's five competitive forces model includes potential new entrants, bargaining power of suppliers, bargaining power of customers, rivalry among competitors, and the threat of substitute products or services. Bargaining power of stockholders is not considered a competitive force in this model.

Question 4

The star has a
A) large market share in a rapidly growing industry.
B) large market share in a slow growth industry.
C) small market share in a rapidly growing industry.
D) small share of a slow growth market.
E) moderate market share in a slow growth industry.

Accepted Answer

The answer of The star has a
A) large market share...

Question 5

Double Click, Inc. has a number of strategic business units. Their hand-held computer unit has a large market share in this rapidly growing industry. Their hand-held computer business would be classified as
A) a dog.
B) a star.
C) a question mark.
D) a cash cow.
E) stuck in the middle.

Accepted Answer

The hand-held computer unit has a large market share in a rapidly growing industry, indicating that it is likely a star. Stars have high market growth and high market share, making them valuable business units that have the potential to become cash cows in the future.

Question 6

The BCG matrix organizes along which of the following dimensions?
A) Market share and profit
B) Sales and market share
C) Business growth rate and market share
D) Business growth rate and profit
E) Sales and profits

Accepted Answer

The BCG (Boston Consulting Group) matrix organizes products or business units by evaluating their market growth rate and market share. It helps in identifying which business units or products should be invested in and which ones should be divested or discontinued. The matrix has four quadrants: stars, cash cows, question marks, and dogs, each representing a different type of product or business unit. Therefore, the correct dimension for the BCG matrix is business growth rate and market share.

Question 7

Which of the following portfolio categories is made up of poor performers who command only a small share of a slow growth market?
A) Star
B) Cash cow
C) Question mark
D) Dog
E) Cat

Accepted Answer

Dogs are portfolio categories made up of poor performers who command only a small share of a slow growth market.

Question 8

Gillette operates numerous strategic business units. Most of its ____ are in the personal care division.
A) dogs
B) question marks
C) stars
D) cash cows
E) none of these

Accepted Answer

The answer of Gillette operates numerous strategic business units. Most...

Question 9

All of the following are Porter's competitive forces EXCEPT
A) differentiation.
B) bargaining power of buyers.
C) bargaining power of suppliers.
D) threat of substitute products.
E) potential new entrants.

Accepted Answer

Differentiation is not one of Porter's competitive forces. The five competitive forces according to Porter are: bargaining power of buyers, bargaining power of suppliers, threat of substitute products, potential new entrants, and rivalry among existing competitors.

Question 10

Which of Porter's five forces is influenced by all of the other four?
A) Threat of substitute products
B) Rivalry among competitors
C) Bargaining power of buyers
D) Potential new entrants
E) Bargaining power of suppliers

Accepted Answer

Rivalry among competitors is influenced by the bargaining power of suppliers and buyers, the threat of substitute products, and potential new entrants. All four of these factors can impact the intensity of competition within an industry, which is captured by the rivalry among competitors force.

Question 11

Which of the following refers to the acquisition of businesses that are related to current product lines or that takes the corporation into new areas?
A) retrenchment.
B) diversification.
C) liquidation.
D) cash cow.
E) internal growth.

Accepted Answer

Diversification refers to the acquisition of businesses that are related to current product lines or that takes the corporation into new areas, whereas retrenchment means reducing or cutting back on the scale or scope of operations, liquidation means the sale of all assets, distribution of the proceeds among creditors, and permanent closing of the business, cash cow refers to a business unit that generates significant profits for the company, and internal growth means expanding the business through increased sales or new product development without making acquisitions.

Question 12

The human resource department at Paula's Powerwheels is implementing a number of functional level strategies. These strategies include focusing on ways to retain and develop a stable work force and ways to improve efficiency in the organization. These functional-level strategies are consistent with which of the following strategies?
A) Overall cost leadership
B) Differentiation
C) New product development
D) New market development
E) Divestiture

Accepted Answer

A focus on retaining and developing a stable workforce and improving efficiency aligns with an overall cost leadership strategy, which aims to minimize costs and increase efficiency throughout the organization. These functional-level strategies are supportive of the broader goal of achieving cost leadership within the industry.

Question 13

How business units and product lines fit together in a logical way is the essence of
A) business-level strategy.
B) portfolio strategy.
C) competitive strategy.
D) financial strategy.
E) functional strategy.

Accepted Answer

Portfolio strategy involves managing a firm's mix of business units and product lines to achieve specific goals. This includes determining how the different business units and product lines fit together and complement each other within the overall portfolio of the company.

Question 14

Which of the following strategies refers to moving into a new business that is related to the company's existing business activities?
A) Horizontal integration
B) Vertical integration
C) Unrelated diversification
D) Related diversification
E) Strategic partnership

Accepted Answer

Related diversification refers to entering into a new business that is related to the company's existing business activities, often through the use of existing capabilities and technologies. This strategy allows the company to expand its offerings and customer base while leveraging its existing strengths and resources. Horizontal integration involves entering into a new business that is in the same industry as the company's existing business activities, while vertical integration involves entering into a new business that is part of the company's supply chain. Unrelated diversification involves entering into a new business that is not related to the company's existing business activities, while strategic partnership involves entering into a collaboration or alliance with another company to achieve shared objectives.

Question 15

The ____ strategy involves seeking efficient facilities, cutting costs and using tight cost controls to be more efficient than competitors.
A) cost leadership
B) differentiation
C) focus
D) internal growth
E) liquidation

Accepted Answer

The cost leadership strategy emphasizes on achieving a competitive advantage through producing products or services at a lower cost than competitors while maintaining adequate quality. This is done by seeking efficient facilities, cutting costs, and using tight cost controls to be more efficient than competitors.

Question 16

Which of these is true about the cash cow?
A) It generates tremendous profits in a rapidly growing industry.
B) It has a small market share in a rapidly growing industry.
C) It has a small market share in a slow growth industry.
D) It has a large market share in a slow growth industry.
E) It is generally a dead business that should be divested.

Accepted Answer

A cash cow is a business unit that has a large market share in a slow-growth industry. It generates steady and significant profits but does not require much investment in terms of money or resources. The focus of the company is to maintain the market share of the cash cow while investing in other business units that have the potential for growth.

Question 17

According to the BCG Matrix, which of the following exists in a mature, slow-growth industry, but is a dominant business in the industry, with a large market share?
A) Question mark
B) Asterisk
C) Dog
D) Star
E) Cash cow

Accepted Answer

The answer of According to the BCG Matrix, which of...

Question 18

Which strategy can be profitable for an organization when customers are loyal and willing to pay high prices?
A) Focus
B) Globalization
C) Overall cost leadership
D) Differentiation
E) Liquidation

Accepted Answer

Differentiation strategy can be profitable for an organization when customers are loyal and willing to pay high prices. By offering unique and valuable features or benefits that distinguish the organization's products or services from its competitors, the organization can justify charging a premium price. This strategy requires a focus on quality, innovation, and customer service to maintain customer satisfaction and loyalty.

Question 19

Which of the following strategies involve an attempt to distinguish the firm's products or services from others in the industry?
A) Cost leadership
B) Differentiation
C) Focus
D) Internal growth
E) Liquidation

Accepted Answer

The differentiation strategy involves distinguishing the firm's products or services from others in the industry through unique features, design, quality, brand image, or customer service. Cost leadership and focus are other generic strategies, while internal growth and liquidation are not related to differentiation.

Question 20

Barriers to entry are related to which competitive force?
A) Rivalry among competitors
B) Potential new entrants
C) Threat of substitute products
D) Bargaining power of buyers
E) Bargaining power of suppliers

Accepted Answer

Barriers to entry refer to obstacles that prevent new firms from entering a particular industry. This is related to the competitive force of potential new entrants because it makes it difficult for new companies to enter the market and compete with established firms.

Quiz 7: Strategy Formulation and Implementation

Which of these is true about the dog division?

The question mark has a

Which of the following is NOT one of Porter's competitive forces?

The star has a

Double Click, Inc. has a number of strategic business units. Their hand-held computer unit has a large market share in this rapidly growing industry. Their hand-held computer business would be classified as

The BCG matrix organizes along which of the following dimensions?

Which of the following portfolio categories is made up of poor performers who command only a small share of a slow growth market?

Gillette operates numerous strategic business units. Most of its ____ are in the personal care division.

All of the following are Porter's competitive forces EXCEPT

Which of Porter's five forces is influenced by all of the other four?

Which of the following refers to the acquisition of businesses that are related to current product lines or that takes the corporation into new areas?

How business units and product lines fit together in a logical way is the essence of

Which of the following strategies refers to moving into a new business that is related to the company's existing business activities?

The ____ strategy involves seeking efficient facilities, cutting costs and using tight cost controls to be more efficient than competitors.

Which of these is true about the cash cow?

According to the BCG Matrix, which of the following exists in a mature, slow-growth industry, but is a dominant business in the industry, with a large market share?

Which strategy can be profitable for an organization when customers are loyal and willing to pay high prices?

Which of the following strategies involve an attempt to distinguish the firm's products or services from others in the industry?

Barriers to entry are related to which competitive force?