Question 1

What executes business strategy?

Accepted Answer

The value chain analysis executes business strategy.

Question 2

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter.Which of the following is not included as one of Porter's three generic strategies?

Accepted Answer

Porter has identified three generic business strategies for entering a new market: 1) broad cost leadership, 2) broad differentiation, and 3) focused strategy.

Question 3

John is the CEO of Tech World, a retail store that sells computers, monitors, cameras, televisions and many other electronic products.John and his executive team are meeting to brainstorm new ideas on how to grow the business.One idea is to mimic a competitor's product that is attempting to sell a new product in a different industry.After performing a Porter's Five Forces analysis, John determines that all of the forces are high in this new industry.What should John do?

Accepted Answer

When the five forces are all strong or high it is a poor business strategy; when the forces are low, this is a great time to execute the business strategy.

Question 4

Which strategy below helps an organization choose its business focus?

Accepted Answer

The three generic strategies help choose the business focus.

Question 5

What are Porter's three generic strategies?

Accepted Answer

Porter's three generic strategies are generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service.

Question 6

Broad differentiation, broad cost leadership, and _________ create the three generic strategies identified by Porter.

Accepted Answer

The three strategies proposed by Porter are 1) broad cost leadership, 2) broad differentiation, and 3) focused strategy.

Question 7

Jennifer is writing a paper and she must determine which of Porter's three generic strategies The Museum Company has implemented.Jennifer finds out that The Museum Company offers specialty products found only in museums around the world to affluent customers.What would Jennifer determine The Museum Company is using as its generic strategy?

Accepted Answer

The Museum Company competes using a narrow market and high cost focus.

Question 8

When analyzing Porter's three generic strategies for entering a market, if you have a focused strategy, what market should you target?

Accepted Answer

When analyzing Porter's three generic strategies for entering a market, if you have a focused strategy you should target a narrow market, niche market, or a unique market.

Question 9

According to Porter, companies that wish to dominate broad markets should operate using a ________ strategy.

Accepted Answer

According to Porter, companies markets should utilize cost leadership with a low cost and differentiation with a high cost.

Question 10

When reviewing Porter's value chain analysis, which of the following provides customer support after the sale of goods and services?

Accepted Answer

The service activity within the primary value activities will provide customer support after the sale of goods and services.

Question 11

When analyzing the book store industry, some of today's businesses compete with different business strategies and cost strategies.Which of the following is using a broad market competitive scope along with a low cost strategy?

Accepted Answer

Amazon.com competes by offering a broad range of differentiated products at low prices.

Question 12

When applying Porter's three generic strategies, Tiffany and Co.has a competitive scope and cost strategy that is __________.

Accepted Answer

Tiffany and Co.competes by offering a differentiated product, jewelry, at high prices.Its business strategy allows it to be a high-cost provider of premier designer jewelry to affluent consumers.

Question 13

Your boss has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a cost leadership strategy?

Accepted Answer

Southwest, Horizon, Frontier, and JetBlue all use cost leadership business strategies.

Question 14

What is a value chain analysis?

Accepted Answer

Value chain analysis views a firm as a series of business processes, each of which adds value to the product or service

Question 15

Which of the below is similar to focused strategy versus broad strategy?

Accepted Answer

Focused strategies versus broad strategies is synonymous to niche market versus large markets.

Question 16

Some industries' competition is much more intense than others.Retail grocery stores such as Kroger, Safeway, and Albertson's in the United States experience fierce competition and offer similar marketing campaigns to compete.What is this an example of in terms of Porter's Five Forces?

Accepted Answer

Some industries' competition is much more intense than others.The retail grocery stores such as Kroger, Safeway, Albertson's, and Ralph's in the United States have fierce competition and similar programs to compete with each other.

Question 17

If a business is following a focused strategy, then its competitive scope is ________.

Accepted Answer

Focused strategies target a niche or unique market.

Question 18

Which of the following offers an example of a company operating in a narrow focused-market operating as the low-cost provider?

Accepted Answer

Payless competes by offering a specific product (narrow market) shoes at low prices. Their strategy is to be the low-cost provider of shoes.

Question 19

Your boss has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a focused strategy?

Accepted Answer

Sky Taxi is using a focused-strategy targeting individuals that want to hire private planes.

Question 20

Which of the following demonstrates a company that has implemented a low cost, broad market strategy?

Accepted Answer

Walmart competes by offering a broad range of products at low prices.Its business strategy is to be the low-cost provider of goods for the cost-conscious consumer.

Quiz 1: Management Information Systems: Business Driven MIS