Question 1

In a TOWS Matrix, SO Strategies

Accepted Answer

SO Strategies in a TOWS Matrix focus on utilizing a company's strengths to take advantage of opportunities. They are proactive and aim to use a company's advantages to maximize potential benefits.

Question 2

According to Porter, the generic competitive strategy that reflects the ability to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale service is called

Accepted Answer

According to Porter, differentiation is the generic competitive strategy that involves providing unique and superior value to the buyer in terms of product quality, special features, or after-sale service. This allows the company to charge a premium price and to create a strong brand identity that sets it apart from competitors.

Question 3

Walmart, as a discount retailer, is an example of a company following which of Porter's competitive strategies?

Accepted Answer

Walmart is primarily focused on cost leadership, offering products at low prices to attract price-sensitive customers.

Question 4

When a company following a differentiation strategy ensures that the higher price it charges for its higher quality is not priced too far above the price of the competition, the company is using the process of

Accepted Answer

When a company following a differentiation strategy ensures that the higher price it charges for its higher quality is not priced too far above the price of the competition, the company is using the process of cost proximity. This allows the company to differentiate itself from competitors while still being competitive in terms of price. It is not low-cost differentiation (A), cost leadership (B), basic differentiation (D), or price fixing (E).

Question 5

Business strategy is composed of

Accepted Answer

The answer of Business strategy is composed of
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Question 6

According to Porter, the generic competitive strategy that reflects the ability of the corporation or its business unit to design, produce, and market a comparable product more efficiently than its competitors is called

Accepted Answer

The generic competitive strategy that reflects the ability of the corporation or its business unit to design, produce, and market a comparable product more efficiently than its competitors is called cost leadership. This strategy involves reducing the costs of producing and delivering products or services in order to offer them at a lower price than competitors while maintaining profitability.

Question 7

In a TOWS Matrix, ST Strategies

Accepted Answer

ST Strategies in a TOWS Matrix focus on using a company's strengths to avoid or mitigate threats.

Question 8

Which of Porter's competitive strategies concentrates on seeking differentiation in a particular buyer group, product line segment, or geographic market?

Accepted Answer

The differentiation focus strategy involves differentiation within a particular buyer group, product line segment or geographic market. This strategy focuses on a narrow segment of the market and seeks to differentiate the product or service offering in that segment to meet specific needs or preferences of the target customers.

Question 9

One company that has successfully found a propitious niche is

Accepted Answer

Frank J. Zamboni & Company has successfully found a niche in the market by developing and manufacturing the Zamboni ice resurfacer, which is used to clean and smooth the surfaces of ice rinks. They have established themselves as the leading brand in ice resurfacing equipment, with over 10,000 machines sold worldwide. Their niche market has proven to be consistently in demand, as ice skating and hockey continue to be popular recreational and professional activities.

Question 10

In a TOWS Matrix, WT Strategies

Accepted Answer

WT (weakness-threat) Strategies in a TOWS Matrix are defensive in nature, and their primary objective is to minimize weaknesses and avoid potential threats. These strategies focus on addressing the weaknesses of the company and finding ways to counter external threats. They do not utilize the company's strengths to take advantage of opportunities, which is the objective of ST (strength-opportunity) strategies.

Question 11

Business strategy focuses on

Accepted Answer

Business strategy is the plan that a company formulates to improve its competitive position in the industry or market segment that it serves. It involves analyzing the company's strengths and weaknesses, assessing market opportunities and threats, and developing a plan of action to achieve the company's goals. While shareholder return on investment is an important consideration in business strategy, it is not the primary focus. Business strategy is also not just about maintaining existing market share or preventing competitors from gaining an advantage, but rather about actively improving the company's competitive position. Therefore, the best choice is B.

Question 12

What are the three generic competitive strategies that Porter promotes as the means for outperforming other corporations in a particular industry?

Accepted Answer

Porter promotes cost leadership, differentiation, and focus as the three generic competitive strategies for outperforming other corporations in a particular industry. Cost leadership involves offering products or services at lower costs than competitors, while differentiation involves offering unique and superior value to customers. Focus involves targeting a specific market segment or niche with tailored products or services. These strategies allow companies to create a sustainable competitive advantage and achieve higher profits.

Question 13

Which of Porter's competitive strategies recommends that a company emphasize a particular buyer group or geographic market and attempts to seek a cost advantage in its targeted segment?

Accepted Answer

Cost focus strategy involves targeting a specific market segment and aiming to be the lowest-cost producer in that segment, which matches the description given.

Question 14

In manufacturing toilet paper for grocery store chains (and avoiding competing directly against Charmin), Potlach has followed which of Porter's generic competitive strategies?

Accepted Answer

The answer of In manufacturing toilet paper for grocery store...

Question 15

According to Porter, the term that applies to the breadth of a company's or business unit's target market is called

Accepted Answer

Competitive scope refers to the range and variety of markets in which a firm competes. It can be either broad or narrow, depending on the number and diversity of the markets that a firm targets. Therefore, option A is the correct answer.

Question 16

Apple is an example of a company following which of Porter's generic competitive strategies?

Accepted Answer

Apple is an example of a company following a differentiation strategy, as they focus on creating unique and innovative products that are perceived as high-quality and desirable by consumers. This approach allows them to charge premium prices and maintain a loyal customer base. They differentiate themselves through design, user experience, and branding, among other factors.

Question 17

According to the text, unique market opportunities that are available for only a particular time are called

Accepted Answer

The text mentions "unique market opportunities that are available for only a particular time" which are referred to as "strategic windows." Therefore, the correct choice is D.

Question 18

Which of the following is NOT one of the questions that development of a competitive strategy should raise?

Accepted Answer

Competing by garnering political support of influential leaders is not a typical question that arises during the development of a competitive strategy. The other options listed are all common questions that a company should consider when developing their competitive strategy.

Question 19

The technique that illustrates how management can match the external opportunities and threats with its strengths and weaknesses to yield four sets of strategic alternatives is called a(n)

Accepted Answer

The TOWS (Threats-Opportunities-Weaknesses-Strengths) matrix is a tool that helps managers match external opportunities and threats with their internal strengths and weaknesses to generate four sets of strategic alternatives. This analysis allows managers to develop and select the best strategic alternatives based on their organization's resources, capabilities, and external environment. The other options, IFAS, EFAS, and SFAS, are tables used to analyze the internal and external factors that affect a company's ability to succeed in the marketplace. The Issues Priority Matrix is a tool used to prioritize issues and determine which issues need immediate attention.

Question 20

Orphagenix, a small biotech firm, avoids head-to-head competition with large pharmaceutical companies by developing orphan drugs to target diseases that affect fewer than 200,000 people. This is an example of which of Porter's generic strategies?

Accepted Answer

Orphagenix's strategy of developing drugs for orphan diseases is an example of differentiation focus. They are focusing on a specific market segment (diseases that affect fewer than 200,000 people) and developing drugs that meet the unique needs of that segment. They are not competing directly with large pharmaceutical companies, who may focus on developing drugs for more widespread diseases, which is an example of differentiation strategy.

Quiz 6: Strategy Formulation: Situation Analysis and Business Strategy