Question 1

Market segmentation involves identifying customers with common characteristics and needs.

Accepted Answer

Market segmentation involves dividing a market into smaller groups of customers with similar characteristics or needs. This helps businesses to tailor their marketing strategies and offerings to better meet the specific needs of each segment.

Question 2

Core competencies should be defined as narrowly as possible.

Accepted Answer

Defining core competencies too narrowly can limit a company's ability to adapt and innovate. Broadly defined competencies allow for flexibility and growth in various areas.

Question 3

A business plan articulates a mission or vision for the firm and a strategy for realizing that mission.

Accepted Answer

A business plan typically includes a description of the company's goals and objectives, how it plans to achieve those goals, what resources it will need, and how it plans to market its products or services. This overall plan helps to guide the company's decision-making and operational activities towards achieving its mission or vision for success.

Question 4

A firm's core competencies refer to those skills which are required to produce the firm's primary products but
which have little or no application in producing related products.

Accepted Answer

Core competencies are unique strengths and abilities that give a firm a competitive advantage and can be applied to a wide range of products and markets, not just the firm's primary products.

Question 5

A planning-based acquisition process consists of both a business plan and acquisition plan,which drive all subsequent phases of the acquisition process.

Accepted Answer

A planning-based acquisition process does indeed include both a business plan and an acquisition plan, as these plans serve as the foundation for all subsequent phases of the process. The business plan outlines the goals, strategy, and financial projections for the acquiring company, while the acquisition plan details how the acquisition will be executed, including identifying potential targets, conducting due diligence, negotiating terms, and integrating the acquired company post-closing. Together, these plans help ensure that the acquisition aligns with the acquiring company's overall strategy and will provide a positive return on investment.

Question 6

An analysis of markets should involve current and potential customers,as well as current and potential competitors,but
it should exclude suppliers.

Accepted Answer

An analysis of markets should involve suppliers as well, as they can affect the availability and cost of inputs, which in turn can affect the pricing and profitability of the product or service being offered. Therefore, suppliers are an important element to consider in market analysis.

Question 7

A cost leadership strategy can be highly destructive to the firm with the largest market share if pursued concurrently by a number of firms with very different market shares.

Accepted Answer

The answer of A cost leadership strategy can be highly...

Question 8

A differentiation strategy is one in which a firm's products are perceived by customers to be slightly different from other firms' products in the same industry.

Accepted Answer

A differentiation strategy aims to distinguish a company's products or services from its competitors in the mind of the customers. This differentiation can be based on various aspects such as quality, design, features, technology, service, or brand image. By focusing on these unique attributes, the company can create a perceived value that justifies a premium price and generates customer loyalty. Thus, a differentiation strategy requires a deep understanding of customers' needs and preferences, as well as a commitment to innovation and quality improvement.

Question 9

Firms adopting a focus strategy tend to concentrate their efforts by selling a few products to a single market and compete primarily on price.

Accepted Answer

Firms adopting a focus strategy concentrate their efforts on a specific market niche or segment rather than selling a few products to a single market. And they compete on factors other than price, such as quality or uniqueness of their products or services.

Question 10

Corporate objectives are defined as what is to be accomplished within a specific period.

Accepted Answer

Corporate objectives are specific, measurable, achievable, relevant, and time-bound goals that an organization sets for itself to accomplish within a given period.

Question 11

A differentiation strategy is one in which customers believe that various competitors have significantly different cost structures.

Accepted Answer

A differentiation strategy is one in which a company offers something unique or different from its competitors, like product features, quality, customer service, or branding. It doesn't necessarily involve a difference in cost structures.

Question 12

A corporate mission statement should be defined as broadly as possible since it seeks to describe the corporation's reason for being,and it should not exclude the firm from pursuing any significant opportunities.

Accepted Answer

A corporate mission statement should be specific enough to provide clear guidance and focus for the organization, helping it to align its strategies and actions with its core purpose and values.

Question 13

A price or cost leader in an industry is usually the firm with the largest market share.

Accepted Answer

A price or cost leader in an industry is usually the firm with the largest market share because they have the ability to set prices or costs that other firms must follow.

Question 14

The experience curve is most important in analyzing industries with low fixed costs.

Accepted Answer

The experience curve is most important in analyzing industries with high fixed costs, as this allows for economies of scale to be recognized as production volume increases. As more units are produced, the fixed costs can be spread out over a larger number of units, leading to lower average costs per unit. Therefore, it is incorrect to say that the experience curve is most important in analyzing industries with low fixed costs.

Question 15

Firms adopting a focus strategy compete primarily based on their superior understanding of how to satisfy their customers needs better than the competition.

Accepted Answer

This is because a focus strategy focuses on a specific segment of the market, and tailors their products/services to meet the unique needs and preferences of that segment. By doing so, they are better able to satisfy their customers' needs than the competition, which may be trying to appeal to a broader market.

Question 16

A firm should choose that strategy from among the range of reasonable alternatives that enables it to achieve its stated objectives in an acceptable time period without regard for resource constraints.

Accepted Answer

The statement is false. A firm should choose a strategy that takes into consideration its resource constraints, as these constraints can significantly impact the feasibility and effectiveness of the chosen strategy. A firm must carefully balance its objectives with its available resources.

Question 17

Coca Cola is an example of a company that pursues both a differentiation and cost leadership strategy.

Accepted Answer

The answer of Coca Cola is an example of a...

Question 18

A competitive self-assessment involves an analysis of the firm's absolute strengths and weaknesses.

Accepted Answer

A competitive self-assessment involves an analysis of the firm's relative strengths and weaknesses compared to its competitors, rather than an absolute analysis.

Question 19

Determining where a firm should compete starts with deciding who the firm's current or potential customers are and what are their needs.

Accepted Answer

Determining the target market and their needs is the first step in deciding where a firm should compete.

Question 20

The market targeted by the firm should reflect the fit between the corporation's primary strengths and competencies and its ability to satisfy customer needs better than the competition.

Accepted Answer

The statement is true as the target market should align with the company's strengths and be able to fulfill the customer's needs better than its competitors.

Quiz 4: Planning,developing Business,and Acquisition Plans: Phases 1 and 2 of the Acquisition Process