Question 1

According to the BCG matrix ,a cash cow:

Accepted Answer

According to the BCG matrix, a cash cow is a business with a large market share in a slow growth industry. These businesses generate a significant amount of cash flow and profits, but typically do not require substantial investments or growth strategies. Therefore, they are considered to be a stable and profitable source of income, similar to cows that provide a reliable supply of milk over time.

Question 2

How business units and product lines fit together in a logical way is the essence of:

Accepted Answer

Portfolio strategy involves the management of a company's product and service offerings, including how they fit together and how they are allocated resources based on their performance and potential for growth. This includes analyzing the interrelationships between business units and product lines to ensure a cohesive and effective overall portfolio.

Question 3

The _______ ______________ strategy involves seeking efficient facilities,cutting costs and using tight cost controls to be more efficient than competitors.

Accepted Answer

The given strategy is the definition of the cost leadership strategy, which involves keeping costs low to offer products or services at a lower price than competitors while still maintaining a profit margin.

Question 4

Any external characteristic of an organisation that inhibits restricts its performance is categorised as a(n):

Accepted Answer

Threats are external factors that could cause trouble for the organization or project, potentially harming its performance. Strengths and weaknesses are internal factors, while opportunities are external factors that the organization could exploit to its advantage.

Question 5

According to the text,some people argue that _____________ is the most difficult and most important part of strategic management.

Accepted Answer

According to the text, some people argue that strategic implementation is the most difficult and most important part of strategic management.

Question 6

Which of the following is not one of Porter's competitive forces?

Accepted Answer

Differentiation is not one of Porter's competitive forces. The five competitive forces according to Porter are bargaining power of buyers, bargaining power of suppliers, threat of substitute products, potential new entrants, and intensity of competitive rivalry.

Question 7

Tassie Terminal Technology has a number of strategic business units.Their hand-held computer unit has a large market share in this rapidly growing industry.According to the BCG matrix,the hand-held computer business would be classified as:

Accepted Answer

According to the BCG matrix, a star represents a business unit with high market share in a growing industry. As the hand-held computer unit of Tassie Terminal Technology has a large market share in a rapidly growing industry, it would be classified as a star.

Question 8

Under the assumptions of the BCG Matrix,a 'star' has a:

Accepted Answer

A 'star' in the BCG Matrix refers to a product or service that has a high market share in a rapidly growing industry. The term 'star' is used because it is a product or service that is performing well, has the potential for further growth and is generating a significant amount of profit for the company. Therefore, the best choice is A, which is a large market share in a rapidly growing industry.

Question 9

With a(n)__________ strategy,the organisation concentrates on a specific regional market or buyer group.

Accepted Answer

With a focus strategy, the organisation identifies and concentrates on a specific regional market or buyer group. This allows the organisation to tailor their products or services to meet the specific needs and preferences of that particular market, gaining a competitive advantage.

Question 10

Under the assumptions of the BCG Matrix,a 'dog' has a:

Accepted Answer

According to the BCG Matrix, a 'dog' has a small share of a slow growth market. Dogs are products or business units that have low market share and are not expected to experience significant growth in the future. They may generate enough cash to sustain themselves, but are not expected to become stars or cash cows.

Question 11

Information about opportunities and threats comes from:

Accepted Answer

Opportunities and threats come from scanning the external environments, which includes analyzing factors like economic, social, technological, and political trends, as well as competitive forces in the industry. A and B are focused on the internal environment, while D and E are more focused on specific aspects of employee or financial issues, respectively.

Question 12

Under the assumptions of the BCG Matrix,a 'question mark' has a:

Accepted Answer

According to the BCG Matrix, a 'question mark' (also known as a 'problem child') refers to a business unit that has a small market share in a rapidly growing industry. These units require significant investment to gain market share and become 'stars' or should be divested if they cannot attain a dominant position in the market.

Question 13

A division of an organisation that has a separate business mission,as well as unique product lines and competitors,is known as a:

Accepted Answer

A strategic business unit (SBU) is a division of an organization with a distinct business mission, product lines, competitors, and markets relative to other SBUs in the same organization. SBUs are typically managed as separate profit centers and therefore require their own unique strategies and analysis.

Question 14

John's car-tyre business has recently taken measures to offer its customers additional services such as the fitting of spoilers and car radios.This change would represent which of the following types of strategy?

Accepted Answer

The answer of John's car-tyre business has recently taken measures...

Question 15

Techniques used to monitor external environments include:

Accepted Answer

Techniques to monitor external environments can be diverse and include hiring research organizations to gather data, analyzing government reports for regulatory or market changes, and even unconventional methods like hiring competitors' employees for insights or buying competitors' garbage to uncover discarded information. All these choices reflect different strategies organizations might use to gain intelligence about their external environment.

Question 16

Wiley Woodchips Pty Ltd is particularly concerned about pending legislation tabled in State Parliament that would further regulate their organisation.This legislation would be classified as a(n):

Accepted Answer

The pending legislation tabled in State Parliament is not under the control of Wiley Woodchips Pty Ltd and would force additional regulation on their organisation. Therefore, it is an external threat to the company.

Question 17

Barriers to entry are related to which competitive force?

Accepted Answer

Barriers to entry refer to the obstacles faced by new entrants in entering an industry or market, making it difficult for them to compete with established firms. This is specifically related to the competitive force of potential new entrants.

Question 18

The BCG matrix organises along which of the following dimensions?

Accepted Answer

The BCG matrix organises businesses based on their business growth rate and market share. This categorisation then allows for strategic decision-making and investment choices.

Question 19

Any internal characteristic of an organisation that inhibits restricts its performance is categorised as a(n):

Accepted Answer

The definition in the question describes a weakness, as it refers to a characteristic that restricts an organization's performance. Strengths are internal characteristics that enhance an organization's performance, while opportunities and threats are external factors that can affect an organization.

Question 20

The ______________ strategy can be profitable for an organisation because customers are loyal and willing to pay high prices.

Accepted Answer

The differentiation strategy involves offering unique or superior value to customers, often through product quality, innovation, brand image, or customer service. Customers who are loyal to such differentiated products are willing to pay premium prices, which can result in higher profits for the organisation.

Quiz 8: Strategy Formulation and Implementation