Question 1

SWOT analysis is a panacea for strategy.

Accepted Answer

A) True 
 B)False

Question 2

Which defensive tactic was used by Southwest Airlines when deliberately keeping their prices low and constantly investing in cost-reducing measures?

Accepted Answer

A) guerilla warfare 
B) lower the inducement for attack 
C) encirclement 
D) raise structural barriers 
E) increase expected retaliation

Question 3

A licensing arrangement is an agreement in which the licensing firm grants rights to another firm in another country or market to produce and/or sell a product.

Accepted Answer

A) True 
 B)False

Question 4

A propitious niche is a need in the marketplace that is currently unsatisfied.

Accepted Answer

A) True 
 B)False

Question 5

A car's cruise control, known as a "bell and whistle" is an example of which of the eight dimensions of quality?

Accepted Answer

A) performance 
B) features 
C) reliability 
D) durability 
E) aesthetics

Question 6

Wal-Mart, McDonald's and Alamo are all examples of companies following which of Porter's competitive strategies?

Accepted Answer

A) differentiation 
B) cost leadership 
C) differentiation focus 
D) competitive advantage 
E) cost focus

Question 7

Discuss the difference between a fragmented and a consolidated industry.

Accepted Answer

The answer of Discuss the difference between a fragmented and...

Question 8

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

Accepted Answer

The answer of What is a propitious niche? Provide an...

Question 9

One skill required of the cost leadership strategy is a strong marketing ability.

Accepted Answer

A) True 
 B)False

Question 10

Which of Porter's competitive strategies concentrates on seeking differentiation in a particular buyer group, product line segment, or geographic market?

Accepted Answer

A) differentiation 
B) cost leadership 
C) differentiation focus 
D) competitive advantage 
E) cost focus

Question 11

Which of the following is true of defensive tactics?

Accepted Answer

A) Defensive tactics aim to lower the probability of attack. 
B) Defensive tactics divert attacks to less threatening avenues. 
C) Defensive tactics lessen the intensity of an attack. 
D) Defensive tactics reduce short-term profitability to ensure long-term profitability. 
E) all of the above

Question 12

Most entrepreneurial ventures follow focus strategies.

Accepted Answer

A) True 
 B)False

Question 13

Business strategy focuses on improving the competitive position of a company's or business unit's products or services within the specific industry or market segment that the company or business unit serves.

Accepted Answer

A) True 
 B)False

Question 14

When lower cost and differentiation strategies have a narrow focus on a market niche they are simply called

Accepted Answer

A) cost leadership and differentiation. 
B) concentration and differentiation. 
C) cost focus and differentiation focus. 
D) competitive scope and focused differentiation. 
E) diversification and concentration.

Question 15

A defensive tactic usually takes place in an established competitor's market location.

Accepted Answer

A) True 
 B)False

Question 16

Porter recommends that a division with tight cost control, frequent detailed control reports, a well structured organization, and quantitatively-based incentives is required for which of the following generic competitive strategies?

Accepted Answer

A) focus 
B) differentiation 
C) overall cost leadership 
D) focus differentiation 
E) concentration

Question 17

The technique that illustrates how management can match the external opportunities and threats with its strengths and weaknesses to yield four sets of strategic alternatives is called a (an)

Accepted Answer

A) IFAS Table. 
B) EFAS Table. 
C) SFAS Table. 
D) TOWS Matrix. 
E) Issues Priority Matrix.

Question 18

What are Porter's four generic strategies?

Accepted Answer

The answer of What are Porter's four generic strategies?...

Question 19

Which of the following is NOT a reason companies or business units may form a strategic alliance?

Accepted Answer

A) To obtain technological and/or manufacturing capabilities. 
B) To reduce financial risk. 
C) To reduce political risk. 
D) To set prices in the industry. 
E) To learn new capabilities.

Question 20

Successful late movers tend to be large firms with considerable resources and related experience.

Accepted Answer

A) True 
 B)False

Exam 6: Strategy Formulation: Situation Analysis and Business Strategy

SWOT analysis is a panacea for strategy.

Which defensive tactic was used by Southwest Airlines when deliberately keeping their prices low and constantly investing in cost-reducing measures?

A licensing arrangement is an agreement in which the licensing firm grants rights to another firm in another country or market to produce and/or sell a product.

A propitious niche is a need in the marketplace that is currently unsatisfied.

A car's cruise control, known as a "bell and whistle" is an example of which of the eight dimensions of quality?

Wal-Mart, McDonald's and Alamo are all examples of companies following which of Porter's competitive strategies?

Discuss the difference between a fragmented and a consolidated industry.

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

One skill required of the cost leadership strategy is a strong marketing ability.

Which of Porter's competitive strategies concentrates on seeking differentiation in a particular buyer group, product line segment, or geographic market?

Which of the following is true of defensive tactics?

Most entrepreneurial ventures follow focus strategies.

Business strategy focuses on improving the competitive position of a company's or business unit's products or services within the specific industry or market segment that the company or business unit serves.

When lower cost and differentiation strategies have a narrow focus on a market niche they are simply called

A defensive tactic usually takes place in an established competitor's market location.

Porter recommends that a division with tight cost control, frequent detailed control reports, a well structured organization, and quantitatively-based incentives is required for which of the following generic competitive strategies?

The technique that illustrates how management can match the external opportunities and threats with its strengths and weaknesses to yield four sets of strategic alternatives is called a (an)

What are Porter's four generic strategies?

Which of the following is NOT a reason companies or business units may form a strategic alliance?

Successful late movers tend to be large firms with considerable resources and related experience.