Question 1

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

Accepted Answer

The text states that unique market opportunities that are available for only a particular time are called "strategic windows." Therefore, choice D is the correct answer. The other choices are not mentioned in the text as options for these types of opportunities.

Question 2

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 development of a competitive strategy should raise. The other options are all viable questions that could be considered when developing a competitive strategy.

Question 3

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 4

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 focuses on achieving differentiation in a particular buyer group, product line segment, or geographic market. This allows the company to target a specific market niche and differentiate itself from competitors in that niche, potentially creating a competitive advantage. Option A, differentiation, applies to seeking differentiation across the entire industry, while option B, cost leadership, focuses on achieving the lowest cost of production across the entire industry. Option D, competitive advantage, is a general term that can apply to any strategy that gives a company an edge over its competitors. Finally, option E, cost focus, applies to achieving the lowest cost of production within a specific market niche.

Question 5

In a TOWS Matrix, WT Strategies

Accepted Answer

WT strategies in a TOWS Matrix focus on defensive measures to minimize weaknesses and avoid threats. They do not involve taking advantage of opportunities or using strengths to overcome challenges.

Question 6

When lower cost and differentiation strategies have a narrow focus on a market niche they are simply called

Accepted Answer

When lower cost and differentiation strategies have a narrow focus on a market niche, they are called cost focus and differentiation focus. This is distinct from cost leadership and differentiation, which have a broad focus on the entire market. Concentration and differentiation, competitive scope and focused differentiation, and diversification and concentration are not accurate terms for this specific strategy.

Question 7

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 of a company's target market or the breadth of its products and services. It includes the various segments served by the company and the geographic regions in which it operates. Porter considers competitive scope one of the three key determinants of a company's overall competitive advantage, along with cost advantage and differentiation.

Question 8

Business strategy is composed of

Accepted Answer

The answer of Business strategy is composed of
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Question 9

In a TOWS Matrix, ST Strategies

Accepted Answer

The answer of In a TOWS Matrix, ST Strategies
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Question 10

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

The process described in the question is known as cost proximity, where a differentiating company aims to avoid charging too much extra cost for its higher quality products compared to its competitors. This makes the higher quality product more accessible and attractive to customers, while also making it difficult for competitors to imitate the differentiation strategy.

Question 11

Wal-Mart, McDonald's and Alamo are all examples of companies following which of Porter's competitive strategies?

Accepted Answer

Wal-Mart, McDonald's, and Alamo all follow cost leadership strategies, which focus on offering products or services at lower prices than competitors. This allows them to attract price-sensitive customers and maintain a larger market share.

Question 12

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 is using differentiation focus by targeting a specific market niche of orphan diseases that larger pharmaceutical companies may not be interested in pursuing due to their smaller patient populations. This allows Orphagenix to differentiate itself from competitors while still offering unique value to its target market.

Question 13

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

Accepted Answer

Porter promotes the two generic competitive strategies of "lower cost" and "differentiation" as the means for outperforming other corporations in a particular industry. These strategies can be pursued either individually or in combination, depending on the specific needs and goals of the business. The lower cost strategy involves finding ways to reduce costs and offer products or services at a lower price than competitors, while the differentiation strategy involves creating a unique product or service that is perceived as superior by customers.

Question 14

Business strategy focuses on

Accepted Answer

Business strategy is all about improving the competitive position of a corporation's products or services within the industry or market segment served. It is about finding ways to differentiate the company from its competitors, attract and retain customers, and ultimately drive profitability. While maintaining market share and providing adequate shareholder return are important considerations, they are not the sole focus of business strategy. Similarly, preventing competition from gaining a competitive edge and recovering a competitive lead may be part of a company's business strategy, but they are not the primary focus.

Question 15

According to Porter, the 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 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. The other options are not the correct descriptions of this strategy.

Question 16

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 (an)

Accepted Answer

The technique described is the TOWS Matrix, which stands for Threats-Opportunities-Weaknesses-Strengths. The matrix is used to generate strategic alternatives by pairing external factors (opportunities and threats) with internal factors (strengths and weaknesses). Choice A (IFAS Table) is a tool used for internal analysis only and does not take into account external factors. Choice B (EFAS Table) is a tool used for external analysis only and does not examine internal factors. Choice C (SFAS Table) is a variation of the EFAS Table that focuses specifically on strategic factors and does not include internal factors. Choice E (Issues Priority Matrix) is a tool used for ranking problems or issues in order of importance and does not address the matching of external and internal factors for strategic planning.

Question 17

One company that has successfully found a propitious niche is

Accepted Answer

Frank J. Zamboni & Company is a good choice as they have found a niche in the market with their ice resurfacing machines, which are used in ice rinks worldwide. They are the dominant player in this market and have a strong brand reputation. The machines are used not only in recreational ice rinks but also in professional arenas and Olympic facilities, making them a reliable and profitable investment for many customers.

Question 18

According to Porter, the 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 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 lower cost. This strategy focuses on achieving cost leadership in the market by delivering products or services at a lower cost than competitors, while maintaining a similar level of quality. This can create a competitive advantage by enabling the business to offer lower prices, which can attract price-sensitive customers and increase market share.

Question 19

In a TOWS Matrix, SO Strategies

Accepted Answer

SO strategies are generated by leveraging a company's strengths to take advantage of opportunities in the market. They are proactive and focus on maximizing the potential of the business.

Question 20

Patagonia uses sustainability in pursuing which of Porter's generic strategies?

Accepted Answer

Patagonia is known for its sustainable practices and focus on environmental and social responsibility. These efforts differentiate Patagonia from other outdoor apparel brands in the market. Therefore, Patagonia is pursuing a differentiation strategy.

Quiz 6: Strategy Formulation: Situation Analysis and Business Strategy