Try the multiple choice questions below to test your knowledge of Chapter 3.

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This activity contains 15 questions.

Strategic stretch involves:

A) The fit between the organization and its environment.

= B) Creating new opportunities by stretching and exploiting capabilities

in new ways.
C) The skills of the senior management.

D) Utilising all the resources of an organisation to their full capacity.

What are core competences?

A) Resources which critically underpin competitive advantage and that
others cannot obtain.
B) Activities and processes needed to meet customers' minimum
requirements and therefore to continue to exist.
C) Key skills required for success in a particular business.

= D) Activities that underpin competitive advantage and are difficult for

competitors to imitate or obtain.

The value chain attempts to identify those activities which

add value to:
A) The organisation's stakeholders.

B) The senior strategic managers in the organisation.

C) The organisation's shareholders.

= D) The customer or final user.

The value chain is composed of primary & support activities.

Which answer below provides the correct components for
primary activities?
A) Service, human resource management, marketing & sales,
operations and outbound logistics.
B) Marketing & Sales, Operations, Outbound Logistics and Service.

C) Procurement, Firm Infrastructure, Human Resource Management,

Technology Development and Marketing & Sales.
= D) Inbound Logistics, Operations, Outbound Logistics, Marketing &
Sales and Service.
What is the purpose of an activity map?
A) A system to facilitate better time-planning.

B) It is used in business process reengineering to show how the

different activities of an organisation are linked together.
= C) It is used to identify and understand strategic capability by
mapping how the different activities of an organisation are linked
together.
D) A list of activities undertaken by an organisation.

Competitive advantage through linkages between the

organisation and its value network can be achieved by:
A) Vertical integration.

B) Adopting common quality standards internally and externally (with

suppliers).
= C) Examining supplier specifications, common merchandising, applying
quality management principles or by collaborating with other
organisations in the form of strategic alliances or joint ventures.
D) Outsourcing customer service to India.

Cost efficiency is determined by which of the following

drivers?
= A) Supply Costs, Experience, Product/Process Design and Economies
of Scale.
B) Supply Costs & Economies of Scale.

C) Product/Process Design and Economies of Scale.

D) Experience.

Robustness of strategic capabilities is more likely when:

- A) Linkages in the value network are exploited.
- B) Core competences are complex, ambiguous and dependent on
culture/history.
C) Competences lie with specific individuals.

D) Core competences lie in separate parts of the organisation's value

chain.

Which types of organisational knowledge are a source of

competitive advantage?
A) Explicit knowledge which is classified and formalised in a planned
and systematic way.
B) Personal knowledge which is hard to communicate and formalise.

C) Customer databases, market research reports, management

reports.
= D) Collective and shared experience accumulated through systems,
routines and activities of sharing across the organisation.
In the resource-based view of strategy, what type of strategic
capabilities are the source of sustainable competitive
advantage?
A) Unique resources and core competences.

B) Dynamic capabilities.

C) Operational excellence.

= D) Strategic capabilities which are valuable to buyers, rare, robust and

non-substitutable.

What are the three criteria for the robustness of strategic

capability?
A) Core competences, unique resources and dynamic capabilities.

B) Complexity, causal ambiguity and value to customers.

C) Complexity, causal ambiguity and rarity.

= D) Complexity, causal ambiguity and culture/history.

Industry/sector benchmarking compares:

A) Organisational performance between firms/public sector
organisations in different industries or sectors.
= B) Organisational performance between firms/public sector
organisations in the same industry or sector.
C) Organisational performance between firms/public sector
organisations in different countries.
D) Organisational performance between different divisions of the firm.

Best in Class Benchmarking seeks to assess organisational

performance against:
A) The nearest geographical competitor.

= B) The competitor who is 'best in class' wherever that may be.

C) The competitor who is the best in the industry.

D) The nearest principal competitor.

The purpose of a SWOT analysis is to analyse:

A) The business environment in which an organisation operates.

B) The strategic capability of an organisation.

C) The business environment and the strategic capability of an

= organisation relative to its competitors.
D) External and organisational environments.
 SWOT should be:
A) A general list
of issues under
each heading.
= B) Focused on
key issues and as
specific as
possible.
C) Completed
when an analysis
of the external
environment has
been conducted.
D) SWOT analysis
is the best
strategic
management
framework for
analysing the
competitive
positioning of an
organisation.
1. Strategic stretch involves:

Your Answer: B) Creating new

opportunities by
stretching and
exploiting
capabilities in
new ways.

Answer B is correct. Strategic stretch involves

leveraging the strategic capabilities of the
organisation for competitive advantage. Refer to
section 3.1.

2. What are core competences?

Your Answer: A) Resources which critically

underpin competitive
advantage and that others
cannot obtain.
Correct Answer: D) Activities that underpin
competitive advantage and are
difficult for competitors to
imitate or obtain.

Answer A is incorrect. There is a difference

between resources and competences. Resources
are physical or intangible assets. Competences are
the activities or processes through which an
organisation deploys its resources. Core
competences are the activities that underpin
competitive advantage and are difficult for
competitors to imitate or obtain. They are the
 activities and processes through which resources
are deployed in such a way as to achieve
competitive advantage in ways that others cannot
imitate or obtain. Answer D is correct. Refer to
section 3.2

3. The value chain attempts to identify those activities

which add value to:

Your Answer: A) The organisation's

stakeholders.
Correct Answer: D) The customer or final user.

If you selected answer A, you are partly correct.

Whilst all the organisation's stakeholders have a
major interest in how the organisation performs,
the value chain is ultimately concerned with the
value created for the organisation's customers.
Unless the organisation provides value to their
clients or customers, the demands of other
stakeholders will become irrelevant. Answer D is
correct. Refer to section 3.6.1.

4. The value chain is composed of primary & support

activities. Which answer below provides the correct
components for primary activities?

Your Answer: A) Service, human resource

management, marketing &
sales, operations and outbound
logistics.
Correct Answer: D) Inbound Logistics,
Operations, Outbound
Logistics, Marketing & Sales
and Service.

Answer A is incorrect. Your answer includes

elements of both primary and support activities.
Human Resource Management is a support activity
and not a primary one. Answer D is correct. The
primary activities are Inbound Logistics,
Operations, Outbound Logistics, Marketing & Sales
and Service. Primary activities are directly
concerned with the creation or delivery of a product
or service. Refer to section 3.6.1

5. What is the purpose of an activity map?

Your Answer: C) It is used to identify and

understand strategic capability by
mapping how the different
activities of an organisation are
linked together.
 Answer C is correct. Strategic capability is likely to
be rooted in a complex, causally ambiguous set of
linked activities. The mapping of activities is helpful
in understanding how the different activities of an
organisation are linked together and how they are
source of competitive advantage. See 3.6.2

6. Competitive advantage through linkages between

the organisation and its value network can be
achieved by:

Your Answer: C) Examining supplier

specifications, common
merchandising, applying quality
management principles or by
collaborating with other
organisations in the form of
strategic alliances or joint
ventures.

Answer C is correct. Please refer to 3.6.1

7. Cost efficiency is determined by which of the

following drivers?

Your Answer: A) Supply Costs, Experience,

Product/Process Design and
Economies of Scale.

Answer A is correct. Please refer to section 3.3. for

a fuller explanation of these important cost drivers.

8. Robustness of strategic capabilities is more likely

when:

Your Answer: A) Linkages in the value

network are exploited.
Correct Answers: A) Linkages in the value
network are exploited.

B) Core competences are

complex, ambiguous and
dependent on culture/history.

Answer A is partly correct. Linkages in the value

network may be difficult to imitate. However
additional criteria for robustness are complexity,
causal ambiguity and dependency on
culture/history. See 3.4.3

9. Which types of organisational knowledge are a

 source of competitive advantage?

Your Answer: A) Explicit knowledge which is

classified and formalised in a
planned and systematic way.
Correct Answer: D) Collective and shared
experience accumulated
through systems, routines and
activities of sharing across the
organisation.

Answer A is partly correct. However, tacit

knowledge (personal knowledge) is embedded and
lies with individuals generally. This makes it
difficult to imitate and it can therefore act as a
source of competitive advantage. Explicit
knowledge by contrast is more formalised and
therefore more easily imitated. Refer to 3.5

10. In the resource-based view of strategy, what type

of strategic capabilities are the source of
sustainable competitive advantage?

Your Answer: D) Strategic capabilities which are

valuable to buyers, rare, robust
and non-substitutable.

Answer D is correct. These capabilities are complex

and causally ambiguous and thus difficult for
competitors to imitate. See 3.4

11. What are the three criteria for the robustness of

strategic capability?

Your Answer: A) Core competences, unique

resources and dynamic
capabilities.
Correct Answer: D) Complexity, causal
ambiguity and culture/history.

Answer A is incorrect. Core competences, unique

resources and dynamic capabilities contribute to
sustainable competitive advantage but do not
represent the three criteria for robustness. Answer
D is correct. To be robust (i.e. to contribute to
sustainable competitive advantage) capabilities
need to be durable and difficult to imitate or
obtain. Most often these are intangible. The
complexity derives from internal and external
linkages. Causal ambiguity derives from the
ambiguity of characteristics and linkage. Culture
and history comprises taken for granted activities
and is path dependent. See 3.4.3
12. Industry/sector benchmarking compares:

Your Answer: B) Organisational performance

between firms/public sector
organisations in the same industry
or sector.

Answer B is correct. It makes good strategic sense

to compare an organisation to its competitors in
the same industry or sector as this helps place
performance into perspective. However, comparing
simply within an industry is dangerous because the
whole industry may be performing badly and losing
out competitively to other industries that satisfy
customer needs in different ways. Refer to 3.6.3

13. Best in Class Benchmarking seeks to assess

organisational performance against:

Your Answer: B) The competitor who is 'best in

class' wherever that may be.

Answer B is correct. The real power of this

approach is that it is concerned with shaking
managers out of the mindset that improvements in
performance will be gradual as a result of
incremental changes in resources or competences.
They face threats from other organisations that
achieve dramatic improvements in performance on
particular value activities or through how activities
are linked together. Refer to 3.6.3

14. The purpose of a SWOT analysis is to analyse:

Your Answer: D) External and organisational

environments.
Correct Answer: C) The business environment
and the strategic capability of
an organisation relative to its
competitors.

Answer D is partly correct. SWOT does involve an

assessment of external and internal environments.
However, the concept goes much further than this
to include an appraisal of the strategic capability of
an organisation and the key opportunities and
threats in the environment. A SWOT analysis
summarises the key issues from the business
environment and the strategic capability of an
organisation that are most likely to impact on
strategy development. These characteristics are
relative not absolute, therefore the SWOT analysis
is only useful if it makes a comparison with
competitors. Answer C is correct. Refer to 3.6.4
15. SWOT should be:

Your Answer: D) SWOT analysis is the best

strategic management
framework for analysing the
competitive positioning of an
organisation.
Correct Answer: B) Focused on key issues and
as specific as possible.

Answer D is incorrect. However focused and

specific a SWOT analysis is, it is still not a
substitute for more rigorous, insightful strategic
analysis. Refer to 3.6.4

The three stages

1. of strategic
management are

strategy
formulation,
strategy
implementation,
and strategy
execution.
strategy
formulation,
strategy execution,
and strategy
assessment.
=strategy
formulation,
strategy
implementation,
and strategy
evaluation.
stratify
assessment,
strategy execution,
and strategy
evaluation.

Job titles that refer

2. to strategists
include which of
the following?

External audit
 Owner,
entrepreneur,
executive director,
and accountant
Chief
executive officer,
salesman, dean,
and lawyer
=Owner, dean,
president, and
executive director

Relative deficiency
3. or superiority is
important
information in
performing which
activity?
External audit
Allocating
resources
=Internal audit
Evaluating
strategies

How often should

4. strategic-
management
activities be
performed?
Annually
Quarterly
Monthly
=Continuously

Who is most
5. responsible for
developing,
communicating,
and enforcing the
code of business
 ethics for a firm?
=Strategists
Line managers
Staff managers
All managers

Strategy-
6. implementation
activities include

conducting
research.
measuring
performance.
preparing a
TOWS matrix.
= establishing
annual objectives.

In a large
7. organization,
strategic
management
activities occur at
what level(s)?
Corporate and
divisional only
Divisional
Strategic
business unit only
Functional,
=divisional, and
corporate

Conducting
8. research,
integrating intuition
with analysis, and
making decisions
 are all
__________
activities.
=strategy-
formulation
strategy-
implementation
long-range
planning
short-range
planning

Which of these
9. questions is
addressed by a
mission
statement?
What do we
want to become?
= What is our
business?
How many
employees must
we have?
Who do we
want to serve?

Internal strengths
10. and weaknesses
are usually

the major
cause of
organizational
demise or
success.
=controllable
activities within an
organization.
most important
for CEOs and the
 board of directors.
not as
important as
external
opportunities and
threats.

An organization's
11. strengths and
weaknesses are
determined
relative to
its strategic
business units.
government
=competitors
external
opportunities and
threats.

__________ are
12. the means by
which long-term
objectives will be
achieved
Mission
statements
=Strategies
Vision
statements
Long-term
goals

Strategic
13. management
allows an
organization to be
more
complacent
= proactive
 authoritarian
reactive

__________ may
14. be the most
important benefit
of strategic
management.
Profit
Commitment
=Understanding
Order

__________ is
15. one of the reasons
for poor or no
strategic planning
in organizations.
Prior good
experience
Fear of
success
Low expense
= Self-interes

1. Correct The three stages of strategic

management are
Your answer: strategy formulation,
strategy implementation, and strategy
evaluation.

CORRECT.

2. Correct Job titles that refer to strategists include

which of the following?
Your answer: Owner, dean, president,
and executive director

CORRECT.

3. Incorrect Relative deficiency or superiority is

important information in performing
which activity?
 Your answer: External audit
The correct answer: Internal audit

INCORRECT. The correct answer is

internal audit.

4. Correct How often should strategic-

management activities be performed?
Your answer: Continuously

CORRECT

5. Incorrect Who is most responsible for developing,

communicating, and enforcing the code
of business ethics for a firm?
Your answer: Staff managers
The correct answer: Strategists

INCORRECT. The correct answer is

strategists.

6. Incorrect Strategy-implementation activities

include
Your answer: preparing a TOWS
matrix.
The correct answer: establishing
annual objectives.

INCORRECT. This is part of

formulation.

7. Incorrect In a large organization, strategic

management activities occur at what
level(s)?
Your answer: Corporate and divisional
only
The correct answer: Functional,
divisional, and corporate

INCORRECT. The correct answer is

corporate, divisional, and functional
levels.

8. Correct Conducting research, integrating

intuition with analysis, and making
decisions are all __________ activities.
Your answer: strategy-formulation

CORRECT

9. Incorrect Which of these questions is addressed

by a mission statement?
Your answer: Who do we want to
serve?
 The correct answer: What is our
business?

INCORRECT. The correct answer is

What is our business?

10. Incorrect Internal strengths and weaknesses are

usually
Your answer: the major cause of
organizational demise or success.
The correct answer: controllable
activities within an organization.

INCORRECT. They can be one of the

causes, not necessarily the major
cause.

11. Incorrect An organization's strengths and

weaknesses are determined relative to
Your answer: its strategic business
units.
The correct answer: competitors

INCORRECT. The correct answer is

competitors.

12. Correct __________ are the means by which

long-term objectives will be achieved
Your answer: Strategies

CORRECT.

13. Correct Strategic management allows an

organization to be more
Your answer: proactive

CORRECT

14. Incorrect __________ may be the most important

benefit of strategic management.
Your answer: Commitment
The correct answer: Understanding

INCORRECT. The correct answer is

understanding.

15. Correct __________ is one of the reasons for

poor or no strategic planning in
organizations.
Your answer: Self-interest

CORRECT
Which stage in the strategy-formulation
1.
 framework includes IE and BCG Matrices?
Input stage
Output stage
=Matching stage
Decision stage

Which of these are not recommended in a

2. TOWS Matrix?

=SW strategies
WO strategies
WT strategies
ST strategies

__________ strategies are generally defensive

3. strategies.

SW
ST
WO
=WT

Which of these terms does not describe a

4. SPACE Matrix quadrant?

Competitive
=Cooperative
Defensive
Aggressive

The two dimensions with negative ratings in

5. SPACE Matrix are
 FS and CA.
=CA and ES.
FS and IS.
IS and ES.

Which of these is not an appropriate strategy for

6. conservative quadrant of a SPACE Matrix?

Conglomerate diversification
Market penetration
Concentric diversification
Product development

Which of these terms does not describe a BCG

7. Matrix quadrant?

Cash Cow
Dogs
=Grow and build
Question Marks

Which of these is not an appropriate Question

8. Mark division strategy in a BCG Matrix?

Product development
Divestiture
Market penetration
=Conglomerate diversification

BCG Matrix divisions that have a high relative

9. market share position but compete in a low-
 growth industry are called what?

Stars
Dogs
=Cash Cows
Question Marks

Which of these strategies is the first option that

10. should be considered for firms in Quadrant II of
the Grand Strategy Matrix?

Integration
=Intensive
Defensive
Diversification

How many sets of strategies may be included in

11. a QSPM?

=No limit
Three
Two
Four

The top row of a QSPM consists of alternative

12. strategies derived from all of these except

TOWS Matrix.
BCG Matrix.
IE Matrix.
=CPM Matrix.

Which of these refers to the fact that it is often

13.
 possible to achieve similar results using different
means or paths?
Satisfying
=Equifinality
Generalization
Focus on higher-order issues

According to Business Week, good Boards of

14. Directors actively perform which of these
responsibilities?

Require directors to retire at age 50.

Require each director to donate large amount
of money.
=Place the entire board up for election every
year.
Pay large cash compensation to each
director per meeting to get quality.

With Boards of Directors, the trend in America is

15. toward __________ boards.

=smaller
internal
no
expanded
Submit for Grade

1. Correct Which stage in the strategy-formulation framework includes IE and

BCG Matrices?
Your answer: Matching stage

CORRECT.

2. Incorrect Which of these are not recommended in a TOWS Matrix?

Your answer: WO strategies
The correct answer: SW strategies

INCORRECT. These are recommended strategies. The correct

answer is SW strategies.
3. Incorrect __________ strategies are generally defensive strategies.
Your answer: ST
The correct answer: WT

INCORRECT. The correct answer is WT.

4. Correct Which of these terms does not describe a SPACE Matrix quadrant?
Your answer: Cooperative

CORRECT.

5. Incorrect The two dimensions with negative ratings in SPACE Matrix are
Your answer: FS and CA.
The correct answer: CA and ES.

INCORRECT. The correct answer is CA and ES.

6. Not Which of these is not an appropriate strategy for conservative

Answered quadrant of a SPACE Matrix?

7. Incorrect Which of these terms does not describe a BCG Matrix quadrant?
Your answer: Question Marks
The correct answer: Grow and build

INCORRECT. The correct answer is grow and build.

8. Incorrect Which of these is not an appropriate Question Mark division strategy

in a BCG Matrix?
Your answer: Divestiture
The correct answer: Conglomerate diversification

INCORRECT. The correct answer is conglomerate diversification.

9. Incorrect BCG Matrix divisions that have a high relative market share position
but compete in a low-growth industry are called what?
Your answer: Dogs
The correct answer: Cash Cows

INCORRECT. The correct answer is Cash Cows.

10. Correct Which of these strategies is the first option that should be considered
for firms in Quadrant II of the Grand Strategy Matrix?
Your answer: Intensive

CORRECT.

11. Incorrect How many sets of strategies may be included in a QSPM?

Your answer: Four
The correct answer: No limit

INCORRECT. The correct answer is no limit.

12. Incorrect The top row of a QSPM consists of alternative strategies derived
 from all of these except
Your answer: BCG Matrix.
The correct answer: CPM Matrix.

INCORRECT. The correct answer is CPM Matrix.

13. Incorrect Which of these refers to the fact that it is often possible to achieve
similar results using different means or paths?
Your answer: Focus on higher-order issues
The correct answer: Equifinality

INCORRECT. The correct answer is equifinality.

14. Incorrect According to Business Week, good Boards of Directors actively

perform which of these responsibilities?
Your answer: Require each director to donate large amount of
money.
The correct answer: Place the entire board up for election every
year.

INCORRECT. The correct answer is place the entire board up for

election every year.

15. Correct With Boards of Directors, the trend in America is toward __________
boards.
Your answer: smaller

CORRECT.

In strategic thinking, how long is the long term,

approximately?
A week to a month

1 to 12 months

1 to 5 years

More than 5 years

None of these
= Any of these

Deliberate strategy; emergent strategy; realised strategy.

Appraisal of strengths and weaknesses; choice of strategic direction;

strategy implementation
= Strategy selection; strategy implementation; strategic control
Generate options; select strategy; implement strategy

What are stages 2, 3 and 4 of the outline strategy process?

Which terms refer to which strategic questions?

A matching question presents 3 answer choices and 3 items. The answer

choices are lettered A through C. The items are numbered 3.1 through 3.3.
Screen readers will read the answer choices first. Then each item will be
presented along with a select menu for choosing an answer choice.Using the
pull-down menus, match each item in the left column to the corresponding item
in the right column.

3.1 How do we succeed in Business strategy

this business? a
Corporate strategy
3.2 What business should
we be in? b
Functional strategy

3.3 How does this unit

contribute? c

Which four parameters appear in the Ashridge Mission Model?

Strengths; weaknesses; opportunities; threats

Aims; goals; objectives; constraints

Purpose; values, strategy; standards of behaviour

= Environment; resources; beliefs; ethical standards

Policies; plans; controls and constraints

Name the types of response to environmental uncertainty set

out by Miles and Snow.

A matching question presents 5 answer choices and 5 items. The answer

choices are lettered A through E. The items are numbered 5.1 through 5.5.
Screen readers will read the answer choices first. Then each item will be
presented along with a select menu for choosing an answer choice.Using the
pull-down menus, match each item in the left column to the corresponding item
in the right column.

Prospector
5.1 Limited product range in
narrowly defined market.
b Defender

5.2 Develops new products

and searches for new Reactor
 Not in Miles and
markets.
a Snow typology

Analyser
5.3 Seeks efficiency and
copies best of competitors.
e

5.4 Changes only when

environmental pressure is
strong. c

5.5 Operates
entrepreneurially, without
explicit strategy. d

Withdrawal, consolidation and building are examples of ....

what?
Directional strategies

Corporate strategies

Strategy alternatives

= Grand strategies
Strategic directions

None of the above

Name cells 1,2 and 3 in Ansoff's product-market matrix.

A matching question presents 4 answer choices and 4 items. The answer
choices are lettered A through D. The items are numbered 7.1 through 7.4.
Screen readers will read the answer choices first. Then each item will be
presented along with a select menu for choosing an answer choice.Using the
pull-down menus, match each item in the left column to the corresponding item
in the right column.

Diversification
7.1 1
c
Market development
7.2 2
b
Product development

7.3 3
a Decentralisation

7.4 None of
these d

The marketing strategy emphasises price as the key to good

value; operations runs with tight cost control; development
focuses on cost reduction.

Which of Porter's competitive strategies is illustrated here?

Divisionalisation

Differentiation focus

Cost focus

= Cost leadership
Differentiation

Market growth rate

m Market share
Industry growth rate

Business strength

Product range

Stage in product life cycle

In the sketch of the BCG matrix, what is the label of the

horizontal axis?
 In the sketch of the BCG matrix, what is the label of the
vertical axis?
Market share

Market growth rate

Business strength

Business size

Industry growth rate

=
Strength of competition

Name the strategies, identified by Mintzberg, whose sequence is shown in the

figure.
1. In strategic thinking, how long is the long term, approximately?

Your Answer: Any of these

2.

What are stages 2, 3 and 4 of the outline strategy process?

Your Answer: Deliberate strategy; emergent strategy; realised strategy.

Correct Answer: Strategy selection; strategy implementation; strategic control

3. Which terms refer to which strategic questions?

Option Your Answer: Correct Answe

3.1 How do we succeed in this business? B. Corporate strategy A. Business strateg

3.2 What business should we be in? C. Functional strategy B. Corporate strate

3.3 How does this unit contribute? B. Corporate strategy C. Functional strate

4. Which four parameters appear in the Ashridge Mission Model?

Your Answer: Policies; plans; controls and constraints

Correct Answer: Environment; resources; beliefs; ethical standards

The elements are set out in Figure 8.3.

5. Name the types of response to environmental uncertainty set out by Miles and Snow.

Option Your Answer: Correc

5.1 Limited product range in narrowly B. Defender B. Defende

defined market.

5.2 Develops new products and searches for B. Defender A. Prospect

new markets.

5.3 Seeks efficiency and copies best of A. Prospector E. Analyser

competitors.
5.4 Changes only when environmental D. Not in Miles and Snow C. Reactor
pressure is strong. typology

5.5 Operates entrepreneurially, without E. Analyser D. Not in M

explicit strategy. typology

6. Withdrawal, consolidation and building are examples of .... what?

Your Answer: None of the above

Correct Answer: Grand strategies

7.

Name cells 1,2 and 3 in Ansoff's product-market matrix.

Option Your Answer: Correct Answer:

7.1 1 A. Diversification C. Product development

7.2 2 B. Market development B. Market development

7.3 3 B. Market development A. Diversification

7.4 None of these D. Decentralisation D. Decentralisation

8. The marketing strategy emphasises price as the key to good value; operations runs wit
control; development focuses on cost reduction.

Which of Porter's competitive strategies is illustrated here?

Your Answer: Differentiation focus

Correct Answer: Cost leadership

It's not a focused strategy as this would include choice of a market niche.
9.

In the sketch of the BCG matrix, what is the label of the horizontal axis?

Your Answer: Market share

... but it is very difficult to measure!

10
.

In the sketch of the BCG matrix, what is the label of the vertical axis?

Your Answer: Market share

Correct Answer: Industry growth rate

You ought to be able to sketch the BCG model fully.

11
.

Name the strategies, identified by Mintzberg, whose sequence is shown in the figure.

Option Your Answer: Correct Answer:

11.1 1 A. Intended A. Intended

11.2 2 B. Emergent E. Realised

11.3 3 C. Deliberate B. Emergent

11.4 4 C. Deliberate C. Deliberate

11.5 5 D. Unrealised D. Unrealised