Question

Which strategy is about how to compete successfully in particular markets?

stability strategy is a ____________ strategy

What are the means by which long term objectives will be achieved?

Marketing strategy is a ___________ type of strategy

What does Dog symbolize in BCG matrix?

What does Stars symbolize in BCG matrix?

What does Question Mark (?) symbolize in BCG matrix?

In GE 9 cell matrix, what is the label of the horizontal axis?

Which of the following is the best example of related diversification?

Which of the following is not one of the appeals of related diversification?

A company pursuing a related diversification strategy would likely address the issue of what additional
industries/businesses to diversify into by

The best place to look for cross-business strategic fits is

Cross-business strategic fits can be found

Economies of scope

What makes related diversification an attractive strategyis

Which of the following is the best example of unrelated diversification?

Which of the following is not one of the ways that a company can achieve a cost advantage by revamping its value
chain?
The best evidence that a company is the industry's low-cost provider is that

A company pursuing a low-cost leadership strategy must generally

Being the overall low-cost provider in an industry has the attractive advantage of

A competitive strategy predicated on low-cost leadership tends to work best when

In which of the following circumstances is a strategy to be the industry's overall low-cost provider not particularly w
matched to the market situation?

A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or best-cost
focus/market niche strategy when

Checking a diversified firm's business portfolio for the competitive advantage potential of cross-business strategic fit
entails consideration of
A diversified company's business units exhibit good resource fit when

A "cash hog" type of business

One very important advantage of a product-information-only Web site strategy is

In which of the following instances is being a first-mover not particularly advantageous?

Diversification merits strong consideration whenever a single-business company

Diversifying into new businesses is justifiable only if it

The essential requirement for different businesses to be "related" is that

Which of these seeks to relate the goals of organization to them earn s of achieving them?
What is a unified,comprehensive & integrated plan designed to assure that basic objectives of enterprise are achieved

Business policy tends to emphasize on which aspect of strategic management?

In large organization strategies are formulate at which level?

Which is a planned strategy?

Which is not an advantage of strategic management?

Which is not the limitation of strategic management?

Which of these require a lot of cash to hold their share & need heavy investment with low growth potential?

Which of these refers to a strategy where the business seeks tos ellits existing products in to new market & this can be
achieved by new product packaging, distribution channeletc?

Above-average returns are:

In the resource-based model, which of the following factors would be considered a key to organizational success?

All of the following are resources of an organization EXCEPT

  The resource-based model of the firm argues that

An analysis of the economic segment of the external environment would include all of the following EXCEPT

firms that achieve competitive parity can expect to:

The three dimensions of a firm's relationships with customers include all the following EXCEPT

A cost leadership strategy targets the industry's --------customers.

Multimarket competition occurs when firms

  Firms with few competitive resources are more likely

Horizontal integration is concerned with

Changes in company ………. also necessitates changes in the systems in various degrees

Which is not a global entry strategy?

Which one is not the characteristic feature of Entrepreneurship?

In which stage of product life cycle, the company takes decision whether to maintain, harvest or drop
the product?
Which of the following best describes the structure at Wilmington?

The ''soft'' elements of the 7-S framework include all of the following EXCEPT which?

With an unrelated diversification strategy, the types of companies that make particularly attractive acquisition targets

What sets focused (or market niche) strategies apart from low-cost leadership and broad differentiation strategies is

A focused low-cost strategy seeks to achieve competitive advantage by

A focused differentiation strategy aims at securing competitive advantage

The chief difference between a broad differentiation strategy and a focused differentiation is

The production emphasis of a company pursuing a broad differentiation strategy usually involves
A strategic alliance

Which of the following is not one of the pitfalls of a low-cost provider strategy?

The essence of a broad differentiation strategy is to

A broad differentiation strategy improves profitability when

Whether a broad differentiation strategy ends up enhancing company profitability depends mainly on whethe

Opportunities to differentiate a company's product offering

Easy-to-copy differentiating features

The target market of a best-cost provider is

A joint venture is an attractive way for a company to enter a new industry when

Diversifying into a new industry by forming a new internal subsidiary to enter and compete in the target industry is attractive when

A company can best accomplish diversification into new industries by

The most popular strategy for entering new businesses and accomplishing diversification is

Acquisition of an existing business is an attractive strategy option for entering a promising new industry because it

The attractiveness test for evaluating whether diversification into a particular industry is likely to build shareholder value involves determini
whether

The three tests for judging whether a particular diversification move can create value for shareholders are

A company which has gone global isc alled

In industries wherer at eof is fast, are quite likely to be came obsolete.

Which of these useful an alytical tool for comparing market position of each firm separately where an industry has
many competitors that it is not practical to examine each ofthem?

Which of these refers to process of integration of world economy into one huge market.

Which is meant about analyze competitors & at the same time, it permits the comprehension of the vision, mission,
core values, nichemarket, strength & weakness?

In the resource-based model, which of the following factors would be considered a key to organizationalsuccess?

All of the following are resources of an organization EXCEPT

Which of the following would be an example of a strategic action?

The chief disadvantage of being a first mover is the

Product differentiation refers to the:

Switching costs refer to the:

A weighted industry attractiveness assessment is generally analytically superior to an unweighted assessment because

The chief purpose of calculating quantitative industry attractiveness scores for each industry a company has diversifie
into is to

New entrants to an industry are more likely when (i.e., entry barriers are low when...)

A differentiation strategy provides products that customers perceive as having

When implementing a focus strategy, the firm seeks:

firms that achieve competitive parity can expect to:

The three dimensions of a firm's relationships with customers include all the following EXCEPT

A cost leadership strategy targets the industry's --------customers.

Multimarket competition occurs when firms

  Firms with few competitive resources are more likely

In the resource-based model, which of the following factors would be considered a key to organizational success?
Option1

Business-level strategy

Corporate Level

Strategies

Business Level

Introduction

Introduction

Remain diversified

Relative market share

A beer brewer acquiring a maker of aluminum cans

It can offer opportunities for transferring expertise, technology and other
capabilities from one business to another

Locating businesses with well-known brand names and large market shares

In supply chain activities

Only in businesses whose products/services satisfy the same general type so f

buyer needs and preferences

Are cost reductions that flow from operating in multiple businesses

The ability to broaden the company's product line

A chain of radio stations acquiring TV stations

Cutting out distributors and dealers by selling direct to customers

 It sells more of its product/service than its key competitors and is the market
share leader

Have products with good-to-excellent attributes so that its low prices will
provide customers with more value for the money

Building strong customer loyalty and locking customers into its product
(because customers have such high switching costs)

There are widely varying needs and preferences among the various buyers of
the product or service

When the offerings of rival firms are essentially identical, standardized,

commodity-like products

There are many ways to achieve product differentiation that buyers find
appealing

Whether the parent's company's competitive advantages are being deployed to maximum
advantage in each of its business units
Each business is a cash cow

Is one that is losing money and requires cash infusions from its corporate parent to continue
operations

Lower advertising costs and lower customer service costs

When a pioneer is using a low-cost provider strategy

Has integrated backward and forward as far as it can

Results in increased profit margins and bigger total profits

Their value chains possess competitively valuable cross-business relationships

Strategy
     Strategy

   System Analytical

  Corporatelevels

  Proactive

  Helps organizations to be proactive.

   Time ConsumingProcess

  Star

   MarketPenetration

higher profits than the firm earned last year.

unique market niche

an hourly production employee's ability to catch subtle quality defects in

products.

all resources have the potential to be the basis of sustained competitive

advantage.

interest rates.

earn below-average returns.

exclusiveness.

most typical
sell different products to the same customer.

to not respond to competitive actions.

Production

Structure

Exporting

Vision

Introduction
Project Based Structure

Style

Financially distressed companies with good turnaround potential,

undervalued companies that can be acquired at a bargain price and companies
that have bright growth prospects but are short on investment capital

The extra attention paid to top-notch product performance and product quality

Delivering more value for the money than other competitors

By providing niche members with a top-of-the-line product at a premium

price

The size of the buyer group that a company is trying to appeal to

A search for continuous cost reduction without sacrificing acceptable quality

and essential features
Is a collaborative arrangement where companies join forces to defeat mutual
competitive rivals

Overly aggressive price-cutting

Incorporate a greater number of differentiating features into its

product/service than rivals

It is focused on product innovation

Many buyers view the product's differentiating features as having value

Are most reliably found in the R&D portion of the value chain

Cannot produce sustainable competitive advantage

Value-conscious buyers
A firm is missing some essential skills or capabilities or resources and needs a partner to
supply the missing expertise and competencies or fill the resource gaps

All of the potential acquisition candidates are losing money

Outsourcing most of the value chain activities that have to be performed in the target
business/industry

Forming a joint venture with another company to enter the target industry

Is an effective way to hurdle entry barriers, is usually quicker than trying to launch a brand-
new start-up operation and allows the acquirer to move directly to the task of building a
strong position in the target industry

Conditions in the target industry are sufficiently attractive to permit earning consistently
good profits and returns on investment

The attractiveness test, the profitability test and the shareholder value test

  MNC
  Product Innovation, ProductPatents

Strategic GroupMapping

   Globalization

   StrategicAnalysis

.    unique marketniche

  an hourly production employee's ability to catch subtle quality defects in

products.

a "two movies for the price of one" campaign by Blockbuster Video

high degree of risk.

ability of the buyers of a product to negotiate a lower price.

cost to a producer to exchange equipment in a facility when new technologies

emerge.

A weighted ranking identifies which industries offer the best/worst long-term

profit prospects

Determine which industry is the biggest and fastest growing

it is difficult to gain access to distribution channels.

acceptable features.

to be the lowest cost producer in an industry.

earn below-average returns.

exclusiveness.

most typical

sell different products to the same customer.

to not respond to competitive actions.

unique market niche

Option2

Corporate-level strategy

Business Level

Policies

Growth Strategy

Growth

Growth

Invest

Industry Attractiveness

A manufacturer of canoes diversifying into the production of tennis

rackets
It can offer opportunities for reducing costs and for leveraging use of a
competitively powerful brand name

Identifying industries with the least competitive intensity

In sales and marketing activities

Mainly in either technology related activities or sales and marketing

activities

Arise only from strategic fit relationships in the production portions of

the value chains of sister businesses

The opportunity to convert cross-business strategic fits into competitive

advantages over business rivals whose operations don't offer
comparable strategic fit benefits

An electrical equipment manufacturer acquiring an athletic footwear

company

Replacing certain value chain activities with faster and cheaper online
technology
 It has lower overall per unit costs for its product/service than other
competitors in the industry

Have acceptable quality products that incorporate a good basic design

with few frills and offer a limited number of models/styles to select
from

Giving the firm a very appealing brand image

There are many market segments and market niches, such that it is
feasible for a low-cost leader to dominate the niche where buyers want
a budget-priced product

When there are few ways to achieve differentiation that have value to
buyers

Buyers use the product in a variety of different ways and have high
switching costs in changing from one seller's product to another

Whether the competitive strategies employed in each business act to reinforce the
competitive power of the strategies employed in the company's other businesses
A company has the resources to adequately support the requirements of its businesses
as a group without spreading itself too thin and when individual businesses add to a
company's overall strengths

Is one that generates cash flows that are too small to fully fund its operations and
growth

Avoiding the extra costs associated with operating Web site e-stores

When buyers are not loyal to pioneering firms in making repeat purchases

Is faced with diminishing market opportunities and stagnating sales in its principal
business

Builds shareholder value

The products of the different businesses are bought by much the same types of buyers

  Execution
Execution

  Portfolio Analytical

  Division alLevels

Reactive

Control their own destiny in better manner.

   Difficult Estimation of competitive responses

    Cash-Cow

    Market Development

higher profits than the industry average over the last 10 years.
weak competition

oil drilling rights in a promising region.

all capabilities can be a source of sustainable competitive advantage.

international trade.

earn average returns.

affiliation.

poorest
have a high level of awareness of their competitors' strategic intent.

respond quickly to competitive actions.

Quality

System

Joint Venture

Disloyalty

Growth
Matrix Structure

Shared Values

Companies offering the biggest potential to reduce labor costs

Their concentrated attention on serving the needs of buyers in an arrow

piece of the overall market

Performing the primary value chain activities at a lower cost per unit
than can the industry's low-cost leaders

By catering to buyers looking for an upscale product at an attractively

low price

The degree of bargaining power that buyers have

Strong efforts to be a leader in manufacturing process innovation

Involves two or more companies joining forces to pursue vertical
integration

Trying to set the industry's price ceiling

Lower buyer switching costs

Differentiating enhances product performance

Most buyers have similar needs and use the product in the same
ways

Are typically located in the sales and marketing portion of the

value chain

Seldom are perceived by buyers as having much value

Brand-conscious buyers
 It needs access to economies of scope and good financial fits in order to be cost-
competitive

It is impractical to outsource most of the value chain activities that have to be

performed in the target business/industry

Acquiring a company already operating in the target industry, creating a new

subsidiary internally to compete in the target industry or forming a joint venture with
another company to enter the target industry

Internal startup

Is less expensive than launching a new start-up operation, thus passing the cost-of-
entry test

The potential diversification move will boost the company's competitive advantage in
its existing business

The strategic fit test, the competitive advantage test and the return on investment test

    TNC
    Market Innovation, Firm’sName

  Scenario Analysis

   Privatization

    Core Competence

   weak competition

.    oil drilling rights in a promisingregion.

use of product coupons by a local grocer

high level of competition in the new marketplace.

response of incumbent firms to new entrants.

cost of changing the firm's strategic group.

An unweighted ranking doesn't discriminate between strong and weak

industry driving forces and industry competitive forces

Get in position to rank the industries from most competitive to least

competitive

economies of scale in the industry are high.

features of little value relative to the value provided by the low-cost

leader's product

to offer products with unique features for which customers will pay a
premium.

earn average returns.

affiliation.

poorest

have a high level of awareness of their competitors' strategic intent.

respond quickly to competitive actions.

weak competition
Option3

Alliance-based strategy

Functional Level

Strength

Corporate Stratgy

Maturity

Maturity

Stable

Industry Growth Rate

A PC producer deciding to diversify into producing and

marketing its own brands of MP3 players and LCDTVs
Related diversification is particularly well-suited for the use of
offensive strategies and capturing valuable financial fits

Identifying an attractive industry whose value chain has good

strategic fit with one or more of the firm's present businesses

In production and distribution activities

Chiefly in the R&D portions of the value chains of unrelated

businesses

Are more associated with unrelated diversification than related

diversification

The potential for improving the stability of the company's

financial performance

A producer of canned soups acquiring a maker of breakfast

cereals

Increasing production capacity and then striving hard to operate at

full capacity
It has lower total operating costs on its income statement than do
its competitors

Have a wide selection of products that are of average or better

quality

Putting a firm in position to compete offensively on the basis of

low price, win the business of price sensitive customers, set the
floor on market price and defend against price war conditions
should they arise

Price competition is especially vigorous and the offerings of rival

firms are essentially identical, standardized, commodity-like
products

When price competition is especially vigorous

The offerings of rival firms are essentially identical, standardized,

commodity-like products

Whether the competitive strategies in each business possess good strategic fit
with the parent company's corporate strategy
Each business is sufficiently profitable to generate an attractive return on
invested capital

Generates negative cash flows from internal operations and thus requires cash
infusions from its corporate parent to report a profit

  Added ability to interest potential buyers in purchasing the company's

products

When a pioneer is pursuing product innovation

Has achieved industry leadership in its main line of business

Helps a company escape the rigors of competition in its present business

The products of the different businesses are sold in the same types of retail
stores

  Monitoring
Monitoring

Credit Analytical

   Functional levels

Adaptive

   Identify available opportunity

  CostlyProcess

   Question-Mark

   ProductDevelopment

profits in excess of what an investor expects to earn from a

historical pattern of performance of the firm.
economies of scale

weak competitors in the industry.

the key to competitive success is the structure of the industry in

which the firm competes.

the strength of the U.S. dollar.

earn above-average returns.

  richness.

least educated
simultaneously enter into an attack strategy.

delay responding to competitive actions.

Product Planning

Strategy

Blue Ocean Strategy

Initiative and Drive

Maturity
Multidivisional Structure

Skills

Cash cow businesses with excellent financial fit

Greater opportunity for competitive advantage

Dominating more market niches in the industry via a lower cost

and lower price than any other rival

With a product offering carefully designed to appeal to the unique

preferences and needs of a narrow, well-defined group of buyers

Whether the product is strongly differentiated or weakly

differentiated from rivals

Efforts to build-in whatever differentiating features that buyers

are willing to pay for and striving for product superiority
Is a formal agreement between two or more companies in which
there is strategically relevant collaboration of some sort, joint
contribution of resources, shared risk, shared control and mutual
dependence

Not emphasizing avenues of cost advantage that can be kept

proprietary or that relegate rivals to playing catch up

Outspend rivals on advertising and promotion in order to

inform and convince buyers of the value of its differentiating
attributes

The differentiating features appeal to sophisticated and

prestigious buyers

Unit sales increase and the extra price the product commands
exceed the added costs of achieving the differentiation

Can exist in activities all along an industry's value chain

Tend to give buyers a high degree of power in bargaining for a

lower price

Price-sensitive buyers
It is uneconomical for the firm to achieve economies of scope on its own
initiative

There is ample time to launch the new business from the ground up and entry
barriers can be hurdled at acceptable cost

Integrating forward or backward into the target industry

Acquisition of an existing business already in the chosen industry

Is a less risky way of passing the attractiveness test

Shareholders will view the contemplated diversification move as attractive

The resource fit test, the profitability test and the shareholder value test

Both (a) &(b)

  Product Innovation, Firm’sName

  Strategic CoreAnalysis

   Stratification

   Competitive Landscape

   economies ofscale

  weak competitors in theindustry.

entry into the European market by Home Depot

inability to earn above-average returns unless the production

process is very efficient.
belief by customers that a product is unique.

one-time costs suppliers incur when selling to a different

customer.

It does a more accurate job of singling out which industry key

success factors are the most important

Provide a basis for drawing analysis-based conclusions about the

attractiveness of the industries a company has diversified into,
both individually and as a group and further to provide an
indication of which industries offer the best and worst long-term
prospects

product differentiation in the industry is low.

features for which the customer will pay a low price.

to avoid being stuck in the middle.

earn above-average returns.

richness.

least educated

simultaneously enter into an attack strategy.

delay responding to competitive actions.

economies of scale
Option4 CorrectAns

Operational-level strategy 1

Strategic level 1

Opportunities 1

Functional Strategy 4

Decline 4

Decline 2

Liquidate 1

Market Growth rate 2

Option B and C 3
Identifying industries with the least competitive intensity 3

In sales and marketing activities 3

Anywhere along the respective value chains of related businesses

4
—no one place is best

Anywhere along the respective value chains of related businesses 4

Minimizing the amount of resources that the partners commit to the

1
alliance

To enable greater vertical integration 2

Speeding new products to market morequickly 2

Replacing certain value chain only 3

It has sells more of product only 2

Have not acceptable quality products and 2

Building strong customer loyalty with product 3

There are many market segments and market niches 3

When buyers have widely varying needs and special requirements

4
and the prices of substitute products are relatively high

When price competition is especially vigorous 3

The extent to which there are competitively valuable relationships between the
value chains of sister business units and what opportunities they present to
reduce costs, share use of a potent brand name, create competitively valuable 4
new capabilities via cross-business collaboration or transfer skills or technology
or intellectual capital from one business to another
Each business has not cash cow 2

Generates positive cash flows 2

Avoiding channel conflict 4

When pioneer is not persueing product innovation 2

Has forward as afr as it can 2

avoide competition 2

The products of the different businesses are sold in the different types of retail
stores 1

Management 1
Management 1

Rational Analytical 4

  All 4

    Neutral 1

   Meeting the targets 4

  Understandable complexenvironment. 4

   Dog 3

Diversification. 2

profits in excess of what an investor expects to earn from other

investments with a similar level of risk.

4
skilled employees

a charity's endowment of $400 million.

resources and capabilities that are valuable, rare, costly to imitate,

and non-substitutable form the basis of a firm's core competencies.

the move toward a contingent workforce.

initially earn above-average returns, declining to average returns. 2

Reach 1

most frugal 1
compete against each other in several geographic or product
4
markets.

respond to strategic actions, but not to tactical actions. 3

Marketing 1

Turnover 2

Merger and Acquisition 3

Risk Bearing 2

Decline 4
Functional Structure 3

Systems 4

To gain quick access to new technologies or other resources and 1

capabilities

Reduce the number of industry key success factors 2

Serving buyers in the target market niche at a lower cost and lower 4
price than rivals

Are a particularly effective way of pursuing a blue ocean strategy 3

and outsourcing strategies

Frequently do not produce the hoped-for outcomes 1

Broaden the firm's product line and/or avoid the need for 3
outsourcing
Must first be a proficient manufacturer 3

price-cutting only 2

Be unique in ways that are valuable and appealing to a wide

4
range of buyers

Unit sales increase and the extra price the product commands
exceed the added costs of achieving the differentiation 4

Value-conscious buyers 3

Price-sensitive buyers 3

forward integration 1

Its brand name reputation 1

It is economical for the firm to achieve economies of scope on its own initiative 1

All of candidates are gaining money 3

Offshoring most value chain 2

External startup 3

Very risky way of passing the test 1

shareholder have different views 1

The attractiveness test, the cost-of-entry test and the better-off test 4

  Global Company 3
Market Innovation, ProductPatents 1

PESTELAnalysis 1

   Liberalisation 1

CompetitiveStrategy 3

     skilledemployees 1

    a charity's endowment of $400million. 3

fare increases by Southwest Airlines 3

difficulty of obtaining new customers. 1

fact that as more of a product is produced the cheaper it becomes
3
per unit.

one-time costs customers incur when buying from a different

4
supplier.

The various measures of attractiveness are not likely to be equally

4
important in determining overall attractiveness

weighted according to their relative importance in determining

overall attractiveness
3

capital requirements in the industry are high. 3

features that are non-standardized for which they are willing to pay
4
a premium.

to serve the specialized needs of a market segment 4

initially earn above-average returns, declining to average returns. 2

reach 1

most frugal 1

compete against each other in several geographic or product 4

markets.

respond to strategic actions, but not to tactical actions. 3

skilled employees 4