Question 1

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 seeks to differentiate a company's product or service within a particular buyer group, product line segment, or geographic market. This approach allows the company to focus its efforts and resources on creating a unique product or service that meets the specific needs and wants of the targeted market segment. This strategy is different from the segmentation focus strategy, which involves targeting a narrow buyer segment but does not necessarily focus on differentiation.

Question 2

What is a propitious niche? Provide an example of a firm that has been able to occupy a propitious niche successfully.

Accepted Answer

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Question 3

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

Accepted Answer

Apple is following a differentiation strategy. They offer unique and innovative products that set them apart from competitors, and they emphasize a premium brand image and customer experience.

Question 4

Business strategy focuses on

Accepted Answer

Business strategy focuses on improving the competitive position of a corporation's products or services within the industry or market segment served. This involves analyzing the market, identifying potential opportunities and threats, and developing a plan to achieve a sustainable competitive advantage. The other options are either too narrow in scope (A and D) or too focused on the interests of a specific stakeholder group (C and E).

Question 5

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

Potlach is likely using a cost focus strategy by targeting a specific market segment (grocery store chains) and offering a lower-cost alternative to Charmin, rather than competing directly with them.

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 known as cost leadership. This strategy focuses on reducing costs and offering products at lower prices than the competitors while maintaining a profit margin. This can be achieved through various means such as economies of scale, efficient supply chain management, process improvement, and cost-effective sourcing of raw materials.

Question 7

The SFAS Matrix summarizes an organization's strategic factors by combining the external factors from the IFAS Table with the internal factors from the EFAS Table.

Accepted Answer

The statement is true. The SFAS (Strategic Factors Analysis Summary) Matrix is a tool used to summarize an organization's internal strengths and weaknesses as well as external opportunities and threats by combining the information from the Internal Factor Analysis Summary (IFAS) table and the External Factor Analysis Summary (EFAS) table.

Question 8

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

Accepted Answer

Porter's generic competitive strategies are cost leadership, differentiation, and focus. Cost leadership involves achieving the lowest cost of production and operations in the industry. Differentiation involves creating a unique product or offering that sets it apart from competitors. Focus involves targeting a specific segment or niche within the industry. These three strategies are the means for a company to outperform other corporations in a particular industry.

Question 9

Which of the following is not cited as one of the questions that development of a competitive strategy should raise?

Accepted Answer

Garnering political support is not a sustainable competitive strategy and is unlikely to be effective in the long run. The other options are all valid questions that a company should consider when developing a competitive strategy.

Question 10

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

Accepted Answer

Walmart is known for its low prices and cost leadership, which allows the company to offer products at a lower price than most of its competitors. This competitive strategy helps Walmart to attract a large customer base who are looking to save money on their purchases.

Question 11

Which of the following is true of an organization's mission statement?

Accepted Answer

A mission statement should be concise and memorable, enabling employees to easily remember and align with the organization's core purpose and direction.

Question 12

One of the first steps in good strategy design should include crafting the mission statement for the organization.

Accepted Answer

Crafting a mission statement is an important step in good strategy design as the mission statement helps to establish the purpose and direction of the organization.

Question 13

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 customer segments. This includes the breadth of products or services offered and the range of geographic locations served.

Question 14

What are the common elements of a well-crafted mission statement?

Accepted Answer

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Question 15

Business strategy is composed of

Accepted Answer

The answer of Business strategy is composed of
...

Question 16

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 17

An effective mission statement not only needs to be specific to that organization; it must enable a common thread to highlight and focus the energy of everyone in the organization in the direction that the top management team believes is best for the business.

Accepted Answer

An effective mission statement should be specific to the organization and provide clarity and direction to all members of the organization to work towards achieving the goals and objectives. It should be able to align and focus the energy of everyone towards a common purpose that aligns with the vision of the top management team.

Question 18

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

The strategy that focuses on providing unique and superior value to the buyer through product quality, special features, or after-sale service is called differentiation. This strategy aims to set a company's product or service apart from its competitors in the marketplace, which can lead to a competitive advantage and higher profits. This is one of the three generic competitive strategies identified by Porter, the other two being cost leadership and focus.

Question 19

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 a differentiation focus strategy, which involves targeting a specific market niche with unique and specialized products. In this case, the market niche is rare diseases affecting fewer than 200,000 people. This allows Orphagenix to avoid head-to-head competition with larger pharmaceutical companies who may not be interested in developing drugs for such a small market.

Question 20

Which strategy raises the questions of whether to compete on the basis of lower cost or differentiation and whether to compete for the biggest market or a niche market?

Accepted Answer

The competitive strategy specifically focuses on how to compete with other businesses and involves decisions around cost and differentiation as well as the target market. Therefore, it raises the questions of whether to compete based on cost or differentiation and whether to target the biggest market or a niche market.

Quiz 6: Strategy Formulation: Business Strategy