Question 1

In , the company can develop new products that are technologically unrelated to its current product line and still can appeal to its current customers.

Accepted Answer

A)  Concentric diversification
B)  Horizontal diversification
C)  Conglomerate diversification
D)  None of the above B

Question 2

The BCG's Growth Share matrix uses and of market growth as criteria to make investment decisions.

Accepted Answer

A)  Relative market share and quarterly rate
B)  Relative market share and annual rate
C)  Absolute market share and annual rate
D)  Absolute market share and quarterly rate B

Question 3

A target market definition tends to focus on selling a product or service to a

Accepted Answer

A)  Current market
B)  Potential market
C)  Both a & b
D)  None of the above A

Question 4

The purpose of identifying company's strategic business unit is:

Accepted Answer

A)  Developing separate strategies
B)  Assign appropriate funding
C)  Both a & b
D)  All of above are false

Question 5

Redefining how company gets paid or create innovative new revenue streams is of Business innovation.

Accepted Answer

A)  Value capture dimension
B)  Brand dimension
C)  Networking dimension
D)  Offerings dimension

Question 6

Gary Hamel believes that

Accepted Answer

A)  Senior management hammers out the strategy and hands it down.
B)  Imaginative ideas on strategy exist in many places within a company
C)  The strategy comes from outside the organization
D)  None of the above

Question 7

In , the company would seek new products that have marketing or technological synergies with existing product lines appealing to a new group of customers.

Accepted Answer

A)  Concentric diversification
B)  Horizontal diversification
C)  Conglomerate diversification
D)  None of the above

Question 8

SBU (strategic business unit) is a unit that is usually responsible for its own budgeting, new product decisions, hiring decisions, and price setting.

Accepted Answer

A)  Semi-autonomous
B)  Autonomous
C)  Non-autonomous
D)  None of the above

Question 9

Market development strategy focuses on

Accepted Answer

A)  Current products and new markets
B)  Current products and current markets
C)  New products and current markets
D)  New products and new markets

Question 10

Michael Porter has proposed generic strategies that provide a good starting point for strategic thinking.

Accepted Answer

A)  3
B)  5
C)  4
D)  6

Question 11

Under ----------- approach of implementation strategies are moving from bottom to upward.

Accepted Answer

A)  Commander approach
B)  Organisational change approach
C)  Collaborative approach
D)  Crescive approach

Question 12

Opportunities to achieve further growth within current businesses are:

Accepted Answer

A)  Intensive Opportunities
B)  Integrative Opportunities
C)  Diversification Opportunities
D)  None of the above

Question 13

Opportunities to build or acquire businesses that are related to current businesses:

Accepted Answer

A)  Intensive Opportunities
B)  Integrative Opportunities
C)  Diversification Opportunities
D)  None of the above

Question 14

General Electric has classified its businesses into strategic business units.

Accepted Answer

A)  42
B)  45
C)  49
D)  None of the above

Question 15

A strategic market definition tends to focus on selling a product or service to a

Accepted Answer

A)  Current market
B)  Potential market
C)  Both a & b
D)  None of the above

Question 16

For intensive growth, the company first considers whether it could gain more market share with its current products in their current market, using a

Accepted Answer

A)  Market-penetration strategy
B)  Market development strategy
C)  Product-development strategy
D)  Diversification strategy

Question 17

Hofer's Product matrix is also known as:

Accepted Answer

A)  GE Matrix
B)  BCG Matrix
C)  TOWS matrix
D)  Market Evaluation Matrix

Question 18

The useful framework for detecting new is called a "product-market expansion grid"

Accepted Answer

A)  Intensive opportunities
B)  Integrative opportunities
C)  Diversification opportunities
D)  None of the above

Question 19

The most complex structure of Strategic organisation is:

Accepted Answer

A)  Functional
B)  Transnational
C)  Matrix
D)  Divisional

Question 20

Strategies such as diversification, penetration and market development are part of

Accepted Answer

A)  extensive growth
B)  intensive growth
C)  integrative growth
D)  disintegrative growth

Exam 6: Business Growth and Strategy