Principles of management chapter 6 quiz
In the context of the Boston Consulting Group (BCG) matrix, which of the following is a similarity between stars and question marks?
Both have shares of a fast-growing market.
______ is a measure of the intensity of competitive behavior among companies in an industry.
Character of the rivalry
Which of the following is the last step of a strategy-making process?
Choosing strategic alternatives
______ is a strategy for reducing risk by buying a variety items so that the failure of one stock or one business does not doom the entire portfolio.
Diversification
Which of the following can help managers improve the speed and accuracy with which they determine the need for strategic change?
Looking for signs of strategic dissonance
In the context of the BCG matrix, which of the following businesses would be classified as a star?
PrimeSmart, a smartphone manufacturer that is the market leader in a rapidly growing industry
In the context of the BCG matrix, which of the following businesses wauld be classified as a question mark?
RainTech, an electronics company that is struggling for market share in a fast-growing industry
In the context of adaptive strategies, which of the following is a difference between reactors and prospectors?
Reactors tend to be poorer performers than prospectors.
_______ consists of the strategic actions that a company takes after retrenchment to return to a growth strategy.
Recovery
______ is creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures.
Related diversification
In the context of the Boston Consulting Group (BCG) matrix, unlike stars, question marks have:
a small share of a fast-growing market.
In the context of the Boston Consulting Group (BCG) matrix, unlike cash cows, dogs have:
a small share of a slow-growing market.
A competitive advantage becomes a sustainable competitive advantage when:
other companies cannot duplicate the value a firm is providing to customers.
Which of the following is the first step of a strategy-making process?
Assessing the need for strategic change
In the context of Porter's five industry forces, the threat of new entrant can be defined as:
A measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry.
are companies using an adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven successes of companies that seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market.
Analyzers
In the context of the BCG matrix, which of the following businesses would be classified as a dog?
Bigs Steel, a metal manufacturer that has negligible market share in a slow-growing industry
In the context of the Boston Consulting Group (BCG) matrix, which of the following is a similarity between stars and cash cows?
Both have large shares in their respective markets.
_______ are companies using an adaptive strategy aimed at protecting strategic positions by seeking moderate, steady growth and by offering a limited range of high-quality products and services to a well-defined set of customers.
Defenders
Unlike the distinctive competencies of a company, the core capabilities of a company:
Determine how effinciently inputs can be turned into outputs
In the context of the BCG matrix, which of the following businesses would be classified as a cash cow?
Happy Tot, a children's toy company that has been earning steady profits in a slow-growing industry
Which of the following best defines a SWOT analysis?
It involves assessment of the strengths and weaknesses in an organization's internal environment.
Which of the following statements is true of a portfolio strategy?
It is a corporate-level strategy with the purpose of reducing risk in the entire collection of stocks.
Which of the following best defines strategic dissonance?
It is a discrepancy between a company's intended strategy and the strategic actions taken by managers while implementing that strategy.
Which of the following best defines competitive inertia?
It is a reluctance to change strategies or competitive practices that have been successful in the past.
Which of the following statements is true of direct competition?
It is determined by market commonality and resource similarity
Which of the following best defines cost leadership?
It is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can so that a firm can offer the product or service at the lowest price in the industry.
Which of the following statements is true of the BCG matrix?
It is used to categorize a corporation's businesses by growth rate and relative market share.
Which of the following best defines a distinctive competence?
It is what a company can make, do, or perform better than its competitors.
the context of the BCG matrix, which of the following categories of SBUS best describes the agriculture unit? Jameson& Dawson's SBU holds majority of the market share in the industry. Hence, the company carns large profits from its agriculture unit and invests majority of its funds in it. In Jameson& Dawson has four strategic business units (SBUS)-agriculture, automobiles, advertising, and accommodations. The agriculture industry is a rapidly growing industry, and
Stars
_______ are used by managers to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage.
Strategic reference points
_______ is a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate.
Sustainable competitive advantage
Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?
The resources must be valuable, rare, and nonsubstitutable.
Which of the following is one of the five industry forces identified by Harvard professor Michael Porter?
The threat of new entrants
In the context of adaptive strategies, which of the following is true of defenders?
They aggressively hold their current strategic position by doing the best job they can to hold on to customers in a particular market segment.
Which of the following statements is true of analyzers?
They are a blend of the defender and prospector strategies.
Which of the following best defines cash cows in the BCG matrix?
They are the companies that have a large share of a slow-growing market.
In the context of adaptive strategies, which of the following best describes prospectors?
They seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market.
Which of the following is a difference between reactors and analyzers?
Unlike analyzers, reactors tend to react to changes in their external environment after they occur.
In the context of adaptive strategies, which of the following is a difference between prospectors and analyzers?
Unlike prospectors, analyzers are rarely first to market with new products or services.
In the context of portfolio strategy, ______ is the purchase of a company by another company.
acquisition
In the context of sustainable competitive advantage, unlike rare resources, imperfectly imitable resources:
are impossible or extremely difficult to duplicate.
Unlike valuable resources, rare resources:
are not controlled or possessed by many competing firms.
Unlike a long-lasting competitive advantage, a sustainable competitive advantage is one where:
competitors have tried unsuccessfully to duplicate the advantage and have, for the moment, stopped trying to duplicate it.
In the context of positioning strategies, _______ means providing a product or service that is sufficiently distinctive from competitors' offerings so that customers are willing to pay a premium price for it.
differentiation
The positioning strategy of using cost leadership or differentiation to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment is called a ______
focus strategy
In the context of grand strategies, the ______ of a company focuses on increasing profits, revenues, market share, or the number of places in which the company does business.
growth strategy
Organizations can achieve a competitive advantage by using their resources to:
provide greater value for customers than competitors can.
According to the Boston Consulting Group (BCG) matrix, _____ are companies that have a small share of a fast-growing market.
question marks
In the context of sustainable competitive advantage, unlike rare resources, nonsubstitutable resources cannot be:
replaced by other resources to produce similar value.
