Question 1

Michael Porter believes strategic advantage can only take three forms:
A) cost, distribution and access
B) distribution, price and utility
C) focus, differentiation, product
D) cost, focus and differentiation

Accepted Answer

Michael Porter identified three generic strategies for achieving competitive advantage: cost leadership, focus, and differentiation.

Question 2

When an organization specializes in a particular service line this is a _______ advantage.
A) cost
B) differentiation
C) focus
D) utility

Accepted Answer

Specializing in a particular service line is a focus advantage, as it involves concentrating efforts on a specific market niche or segment.

Question 3

An after hours clinic that is open also on weekends as well as offering SKYPE consults is attempting to provide a ________advantage:
A) differentiation
B) value
C) cost
D) service

Accepted Answer

The clinic is offering unique features such as after-hours service, weekend availability, and Skype consultations, which are aimed at differentiating it from competitors.

Question 4

When a delivery system is more efficient than the current standard that system has which form of a competitive advantage:
A) distribution
B) cost
C) price
D) delivery

Accepted Answer

An efficient delivery system reduces costs, providing a cost advantage over competitors.

Question 5

The key to a successful differentiation advantage is:
A) having a market competitive price
B) having a unique product
C) having a unique selling proposition
D) creating a different service guarantee

Accepted Answer

Having a unique selling proposition (USP) is the key to a successful differentiation advantage. A USP is a unique feature or benefit that sets a product or service apart from its competitors. It is what makes a product or service stand out in the market and gives it a competitive edge.

Question 6

Strategy has been defined as not so much beating the competition, but more so …
A) Providing a product or service at the most competitive price
B) Delivering the most unique service
C) Meeting the needs of the customer
D) Offering a value driven product in as many locations as possible

Accepted Answer

Strategy focuses on meeting the needs of the customer, which is essential for long-term success and differentiation in the market.

Question 7

The Boston Consulting Group Matrix evaluates the portfolio of products or services on two dimensions.
A) market share and growth potential
B) sales growth and market growth
C) market growth and margin
D) margin growth and expense ratio

Accepted Answer

The Boston Consulting Group Matrix evaluates products or services based on market share and growth potential, categorizing them into stars, cash cows, question marks, and dogs.

Question 8

A service that has high growth potential but low share in the BCG matrix would be considered
A) Star
B) Dog
C) cash cow
D) problem child

Accepted Answer

A service with high growth potential but low market share is considered a "problem child" or "question mark" in the BCG matrix.

Question 9

A cash cow is a service which has:
A) low share, high growth potential
B) high share, high growth potential
C) high share, low growth potential
D) low share, low growth potential

Accepted Answer

A cash cow is a business unit or product that has a high market share in a mature industry with low growth potential, generating steady cash flow.

Question 10

Services which are placed in the quadrant of being a cash cow in terms of resource allocation would tend to:
A) get more cash infusion to get back on the growth curve
B) have the dollars they generate redirected back into these services for continued growth
C) have their dollars directed into other services
D) be eliminated

Accepted Answer

Cash cows generate more cash than they consume, so the excess cash is often redirected to other areas of the business that require investment for growth.

Question 11

In the General Electric-McKinsey model, management examines services in terms of two dimensions:
A) industry strength and business growth
B) business attractiveness and industry growth
C) industry attractiveness and business strength
D) industry growth and business competitiveness

Accepted Answer

The General Electric-McKinsey model evaluates services based on industry attractiveness and business strength to help in strategic decision-making.

Question 12

Compared to the BCG matrix the General Electric model makes more explicit comparisons between, external opportunities and:
A) internal capabilities
B) competitive intensity
C) growth opportunities
D) capital requirements

Accepted Answer

The General Electric model evaluates business units based on industry attractiveness and internal business strength, which includes internal capabilities.

Question 13

Both the BCG matric and the General Electric model are limiting for health care executives in that they do not:
A) are not useful in making decisions about new investment opportunities
B) do not offer ways to solve problems
C) do not help in making decisions about new opportunities
D) these are all problems with these two frameworks

Accepted Answer

The answer of Both the BCG matric and the General...

Question 14

The safest strategy for growth in the Ansoff Product-Growth Matrix is:
A) diversification
B) market development
C) service development
D) market penetration

Accepted Answer

Market penetration is considered the safest strategy as it involves increasing sales of existing products in existing markets, minimizing risk by leveraging current resources and capabilities.

Question 15

In the Ansoff Product Growth-Market Strategy Matrix, the most extreme growth option for a business would be:
A) market penetration
B) service development
C) diversification

Accepted Answer

Diversification is the most extreme growth option because it involves entering a new market with a new product.

Question 16

Which of the following is not a premise upon which the product life cycle concept is not based?
A) all products and services have a finite life
B) products and services pass through four distinct phases
C) profits rise and fall at different opportunities at each stage
D) margins remain relatively constant through each stage although market share changes

Accepted Answer

The product life cycle concept suggests that margins do not remain constant; they typically change as the product moves through different stages.

Question 17

In the introduction stage of the life cycle, sales and revenue are slow. A major objective is to:
A) generate primary demand
B) open multiple locations to encourage many buyers
C) coupon in order to get interest
D) do all of the above as quickly as possible before competitors enter

Accepted Answer

In the introduction stage, the focus is on generating primary demand to create awareness and interest in the new product category, rather than competing with other brands.

Question 18

The objective of generating selective demand occurs in which stage of the product life cycle?
A) introduction
B) growth
C) maturity
D) decline

Accepted Answer

During the growth stage of the product life cycle, the objective is to generate selective demand by differentiating the product from competitors and emphasizing its unique benefits.

Question 19

The strategy/ action match matches the:
A) Boston consulting group to the General electric model cells
B) the MAC Group Positioning matrix to the field positioning model
C) the organization's life cycle to the marketplace life cycle
D) the power of buyers and suppliers to the barriers to entry

Accepted Answer

The strategy/action match refers to aligning the organization's life cycle with the marketplace life cycle to ensure strategic actions are appropriate for the current stage of both cycles.

Question 20

Empirical results have shown that in terms of the life cycle, a business' likelihood of survival:
A) is unrelated to the stage of the life cycle
B) depends on when the firm enters the life cycle
C) is a function of the size of the firm and when it enters
D) is a function of the industry

Accepted Answer

The answer of Empirical results have shown that in terms...

Quiz 6: Step 3: The Strategyaction Match

Michael Porter believes strategic advantage can only take three forms:

When an organization specializes in a particular service line this is a _______ advantage.

An after hours clinic that is open also on weekends as well as offering SKYPE consults is attempting to provide a ________advantage:

When a delivery system is more efficient than the current standard that system has which form of a competitive advantage:

The key to a successful differentiation advantage is:

Strategy has been defined as not so much beating the competition, but more so …

The Boston Consulting Group Matrix evaluates the portfolio of products or services on two dimensions.

A service that has high growth potential but low share in the BCG matrix would be considered

A cash cow is a service which has:

Services which are placed in the quadrant of being a cash cow in terms of resource allocation would tend to:

In the General Electric-McKinsey model, management examines services in terms of two dimensions:

Compared to the BCG matrix the General Electric model makes more explicit comparisons between, external opportunities and:

Both the BCG matric and the General Electric model are limiting for health care executives in that they do not:

The safest strategy for growth in the Ansoff Product-Growth Matrix is:

In the Ansoff Product Growth-Market Strategy Matrix, the most extreme growth option for a business would be:

Which of the following is not a premise upon which the product life cycle concept is not based?

In the introduction stage of the life cycle, sales and revenue are slow. A major objective is to:

The objective of generating selective demand occurs in which stage of the product life cycle?

The strategy/ action match matches the:

Empirical results have shown that in terms of the life cycle, a business' likelihood of survival: