Chapter 5 Quiz - Strategy Formulation: Situation Analysis and Business Strategy

An acronym for the assessment of the external and internal environments of the business corporation in the process of strategy formulation/strategic planning is Select one: a. P.E.T. b. M.B.O. c. S.W.O.T. d. S.B.U. e. R.O.I. - answer-C. S.W.O.T. A corporation's specific competitive role, which is so well‑suited to the firm's internal and external environment that other corporations are NOT likely to challenge or dislodge it, is called a Select one: a. propitious niche. b. strategic fit. c. common thread. d. business screen. e. implicit strategy. - answer-A. propitious niche Business strategy focuses on Select one: a. ensuring that the company maintains the existing market share that it has historically enjoyed. b. improving the competitive position of a corporation's products or services within a specified market segment. c. providing adequate shareholders' return on investment. d. preventing the competition from gaining a competitive edge by undermining their marketing plan. e. recovering the competitive lead by using all available resources that the company can provide. - answer-B. improving the competitive position of a corporation's products or services within a specified market segment According to Porter, the competitive strategy that applies to the ability of the corporation or its business unit to design, produce, and market a comparable product more efficiently than its competitors is called Select one: a. competitive scope. b. differentiation. c. concentration. d. diversification. e. lower cost. - answer-e. lower cost According to Porter, the competitive strategy that applies to the ability to provide unique and superior value to the buyer in terms of product quality, special features, or after‑sale service is called Select one: a. competitive scope. b. differentiation c. concentration d. diversification e. low cost - answer-B. differntiation When lower cost and differentiation strategies have a narrow focus on a market niche they are simply called Select one: 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. - answer-C. cost focus and differentiation focus According to Porter, a business unit in a competitive marketplace with no competitive advantage is Select one: a. achieving synergy. b. practicing innovative leadership. c. stuck on the middle. d. not goal directed. e. last in line - answer-C. Stuck in the middle Focus strategies will likely predominate when many small and medium‑sized local companies compete for relatively small shares of the total market in a(n) Select one: a. united industry. b. fragmented industry. c. consolidated industry. d. isolated industry. e. integrated industry. - answer-B. Fragmented industry A tactic is defined by the text as Select one: a. a specific operating plan specifying how a strategy is to be implemented in terms of how, when, and where it is to be put into action. b. the first company to manufacture and sell a new product or service.