Question 1

Emirates Airline has been classified as a differentiated analyser because:

Accepted Answer

A) it offers a high level of customer service while charging a price premium 
B) it has differentiated its service offering to include hotels and resorts around the world 
C) it pursues both established and new markets 
D) it is consistently at the forefront in opening new destinations while closing down old ones

Question 2

A business's competitive strategy and the strategic marketing programs of its product or service offerings are independent of one another.

Accepted Answer

A) True 
 B)False

Question 3

The internet will make it easier for firms to customise their offerings and personalise their relationships with their customers.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following best describes the effectiveness performance dimension?

Accepted Answer

A) the success of a business's products and programs relative to those of its competitors in the market 
B) the outcome of a business's programs relative to the resources used in implementing them 
C) the business's success in responding over time to changing conditions and opportunities in the environment 
D) the percentage of sales accounted for by products introduced within the last five years

Question 5

A marketing manager has an idea for an innovative new product with huge market potential but in a different industry segment requiring a prospector strategy.However, since this strategy conflicts with the low-cost defender strategy currently deployed by the manager's strategic business unit, the manager's best option is to not proceed with developing the new product.

Accepted Answer

A) True 
 B)False

Question 6

Several analysts propose that as a result of the internet, pursuing a strategy focused on quality differentiation will become the most viable option for companies seeking competitive advantage.
On the contrary, the internet is widely believed to force more and more companies into low-cost strategies, as consumers now have the means of quickly comparing prices between firms.

Accepted Answer

A) True 
 B)False

Question 7

Which performance dimension is usually measured by the number of successful new products introduced relative to competitors or the percentage of sales accounted for by products introduced within the last five years?

Accepted Answer

A) efficiency 
B) effectiveness 
C) durability 
D) adaptability

Question 8

A policy of high service quality is essential for _____, as it offers a way to maintain a competitive advantage in well-established markets.

Accepted Answer

A) prospectors 
B) low-cost defenders 
C) differentiated defenders 
D) analysers

Question 9

A firm ensures that no two SBUs within the firm compete for the same customers with similar products.Which SBU characteristic is being discussed here?

Accepted Answer

A) a homogeneous set of markets to serve with a limited number of related technologies 
B) controlling factors that are essential for successful performance 
C) a unique set of product markets 
D) responsibility for their own profitability

Question 10

Which of the following is not a dimension that defines the scope and mission of an individual SBU?

Accepted Answer

A) technical compatibility 
B) similarity of competitors 
C) similarity of customer needs 
D) similarity of personal characteristics of customers in the target markets

Question 11

One possible outcome of internet availability for both businesses and consumers is that it will be harder for businesses to differentiate themselves on any basis other than low price.

Accepted Answer

A) True 
 B)False

Question 12

Businesses following a reactor strategy:

Accepted Answer

A) attempt to maintain a stable line of products, but follow a selected set of promising new developments in its industry 
B) try to protect their domain by offering lower prices, higher quality or better services than competitors 
C) are not as willing to assume the risks of a new product or market development as its competitors 
D) respond rapidly to early signals concerning areas of opportunity, which often lead to new rounds of competitive actions

Question 13

According to Michael Porter, a business that avoids direct confrontation with its major competitors by concentrating on narrowly defined market niches is using the ______ strategy to gain and maintain competitive advantage.

Accepted Answer

A) overall cost leadership 
B) differentiation 
C) focus 
D) segmenting

Question 14

Business strategies are primarily concerned with allocating resources across functional activities and product markets to give the unit a sustainable advantage over its competitors.

Accepted Answer

A) True 
 B)False

Question 15

Which environmental factor is conducive to the prospector strategy?

Accepted Answer

A) industry in early growth stage 
B) industry in late growth or early maturity stage 
C) industry in maturity stage 
D) industry in decline stage

Exam 3: Business Strategies and Their Marketing Implications

Emirates Airline has been classified as a differentiated analyser because:

A business's competitive strategy and the strategic marketing programs of its product or service offerings are independent of one another.

The internet will make it easier for firms to customise their offerings and personalise their relationships with their customers.

Which of the following best describes the effectiveness performance dimension?

Which performance dimension is usually measured by the number of successful new products introduced relative to competitors or the percentage of sales accounted for by products introduced within the last five years?

A policy of high service quality is essential for _____, as it offers a way to maintain a competitive advantage in well-established markets.

A firm ensures that no two SBUs within the firm compete for the same customers with similar products.Which SBU characteristic is being discussed here?

Which of the following is not a dimension that defines the scope and mission of an individual SBU?

One possible outcome of internet availability for both businesses and consumers is that it will be harder for businesses to differentiate themselves on any basis other than low price.

Businesses following a reactor strategy:

According to Michael Porter, a business that avoids direct confrontation with its major competitors by concentrating on narrowly defined market niches is using the ______ strategy to gain and maintain competitive advantage.

Business strategies are primarily concerned with allocating resources across functional activities and product markets to give the unit a sustainable advantage over its competitors.

Which environmental factor is conducive to the prospector strategy?