Management 490 Chapter 5 Part 1
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Increasing the size and viability of the business over time
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Competitive Strategies
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Growth Strategies
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Corporate Strategies
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About This Quiz
This quiz, titled 'Management 490 Chapter 5 Part 1', assesses key strategies in business management. It covers growth, competitive, and corporate strategies, focusing on internal growth and market penetration. This quiz helps learners understand essential tactics for enhancing business size and competitive positioning.
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- 2.
How the firm intends to position itself to create value for its customers that are different from its competitors
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Competitive Strategies
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Growth Strategies
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Corporate Strategies
Correct Answer
A. Competitive StrategiesExplanation
This question is asking about how a firm plans to differentiate itself from its competitors in order to create value for its customers. Competitive strategies refer to the specific actions and approaches that a company takes to gain a competitive advantage over its rivals. These strategies can include pricing, product differentiation, marketing tactics, and more. By implementing effective competitive strategies, a firm can position itself in a way that sets it apart from its competitors and creates unique value for its customers.Rate this question:
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- 3.
Strategies involving the organization in new industries and new businesses.
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Growth Strategies
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Internal Growth Strategy
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Corporate Strategies
Correct Answer
A. Corporate StrategiesExplanation
Corporate strategies refer to the overall plans and actions taken by a company to achieve its long-term goals and objectives. These strategies involve making decisions regarding the organization's involvement in new industries and businesses. By expanding into new industries and businesses, a company can pursue growth opportunities and diversify its operations. This can help the company to increase its market share, gain a competitive advantage, and ultimately achieve sustained growth and profitability. Therefore, the answer "Corporate Strategies" is the most appropriate choice as it encompasses the concept of expanding into new industries and businesses as a growth strategy.Rate this question:
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- 4.
Business builds stores in a new location (market penetration).
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Internal Growth Strategy
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External Growth Strategies
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Competitive Strategies
Correct Answer
A. Internal Growth StrategyExplanation
The given correct answer suggests that when a business builds stores in a new location, it is implementing an internal growth strategy. This means that the business is expanding its operations and increasing its market share through organic means, such as opening new stores. This strategy allows the business to capitalize on its existing resources and capabilities to enter new markets and attract new customers. It is a proactive approach to business growth that focuses on internal development rather than relying on external factors or acquisitions.Rate this question:
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- 5.
Increase the quantity of products or services sold, thereby increasing revenue and share of the market
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Product/Service Development
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Market Development Strategy
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Market Penetration Strategy
Correct Answer
A. Market Penetration StrategyExplanation
A market penetration strategy involves increasing the quantity of products or services sold in order to increase revenue and gain a larger share of the market. This strategy focuses on selling existing products or services to existing customers, potentially through tactics such as aggressive pricing, advertising, or sales promotions. By penetrating deeper into the market and increasing sales, a company can strengthen its position and potentially outperform competitors. This strategy is often used when there is still room for growth within the current market segment.Rate this question:
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- 6.
This strategy will likely increase the size of the business but not scope of the business
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Applications Development
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Market Penetration Strategy
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Product/Service Development
Correct Answer
A. Market Penetration StrategyExplanation
A market penetration strategy focuses on increasing the market share of an existing product or service within the current market. This strategy aims to attract more customers and increase sales volume, which in turn can lead to an increase in the size of the business. However, it does not involve expanding into new markets or introducing new products or services, which means that the scope of the business remains the same. Therefore, choosing a market penetration strategy will likely result in a larger business but without any expansion in its scope.Rate this question:
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- 7.
Successful in the early stage of the organization's life when many customers are untapped
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Market Penetration Strategy
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Product/Service Development
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Applications Development
Correct Answer
A. Market Penetration StrategyExplanation
A market penetration strategy is the best approach for a company in its early stages when there are many untapped customers. This strategy focuses on increasing market share by selling more of the existing products or services to the current target market. By penetrating the market and gaining a larger customer base, the organization can establish a strong foothold and build a solid foundation for future growth. This strategy is especially effective when there is a high potential for market growth and competition is not yet intense.Rate this question:
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- 8.
Seeking new customer groups or segments that differ in some way from existing customers
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Product/Service Development
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Market Penetration Strategy
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Market Development Strategy
Correct Answer
A. Market Development StrategyExplanation
Market development strategy refers to seeking new customer groups or segments that differ in some way from existing customers. This strategy involves expanding into new markets or attracting new customers by offering existing products or services in new ways or in new locations. It focuses on finding untapped opportunities and increasing market share by targeting different customer segments. This strategy is different from market penetration strategy, which aims to increase market share within existing markets, and product/service development, which involves creating new products or services for existing markets.Rate this question:
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- 9.
Finding new uses for existing products so that new market segments can be tapped.
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Market Penetration Strategy
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Product/Service Development
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Applications Development
Correct Answer
A. Applications DevelopmentExplanation
Applications development refers to the process of creating new uses or applications for existing products. This strategy allows companies to tap into new market segments by offering their products to different customer groups or industries. By developing new applications, companies can expand their customer base and increase sales without having to create entirely new products. This strategy is often used to maximize the potential of existing products and increase market penetration.Rate this question:
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- 10.
Modify existing products or develop new products/services for the purpose of selling more to existing customers or creating new market segments
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Product/Service Development
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Market Penetration Strategy
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Market Development Strategy
Correct Answer
A. Product/Service DevelopmentExplanation
Product/Service Development refers to the process of modifying existing products or creating new products/services in order to increase sales to existing customers or tap into new market segments. This strategy involves enhancing the features, functionality, or design of existing products, or introducing completely new offerings to meet the changing needs and preferences of customers. By continuously innovating and improving their products/services, businesses can stay competitive, attract more customers, and expand their market share. Market Penetration Strategy, on the other hand, focuses on increasing market share by selling existing products/services to existing customers, while Market Development Strategy aims to enter new markets with existing products/services.Rate this question:
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- 11.
Investing organizational resources in another company or business to achieve growth targets
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Growth Strategies
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External Growth Strategies
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Internal Growth Strategy
Correct Answer
A. External Growth StrategiesExplanation
External growth strategies refer to the approach of investing organizational resources in another company or business to achieve growth targets. This can be done through various means such as mergers, acquisitions, joint ventures, or strategic alliances. By pursuing external growth strategies, organizations aim to expand their operations, market share, and capabilities by leveraging the resources and expertise of other companies. This approach allows organizations to access new markets, diversify their product offerings, gain economies of scale, and enhance their competitive position in the industry.Rate this question:
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- 12.
The acquisition of an organization in the same line of business. Accomplished for the purpose of gaining market share in a particular segment, expanding a market geographically, or augmenting product or service lines
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Product/Service Development
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Horizontal Integration
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Joint Ventures
Correct Answer
A. Horizontal IntegrationExplanation
Horizontal integration refers to the strategy of acquiring a company that operates in the same line of business. This can be done to gain a larger market share in a specific segment, expand into new geographic markets, or enhance the range of products or services offered. By merging with or acquiring a competitor, a company can consolidate its position in the market and achieve economies of scale. Horizontal integration allows for synergies and collaboration between the merging entities, leading to increased efficiency and competitiveness.Rate this question:
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- 13.
Involves acquisition of capabilities, market segments, or product lines.
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Joint Ventures
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Applications Development
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Horizontal Integration
Correct Answer
A. Horizontal IntegrationExplanation
Horizontal integration refers to a strategy where a company acquires or merges with other companies operating in the same industry or market. This allows the company to expand its operations and gain a larger market share by integrating different capabilities, market segments, or product lines. By combining resources and expertise, the company can achieve economies of scale, increase its competitiveness, and potentially reduce costs. Horizontal integration can also lead to synergies and the ability to offer a wider range of products or services to customers.Rate this question:
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- 14.
Formed with other organizations to penetrate new domestic or foreign markets, develop new and services, or improve existing processes for producing products or services
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Joint Ventures
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Horizontal Integration
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Market Penetration Strategy
Correct Answer
A. Joint VenturesExplanation
A joint venture is a business arrangement where two or more organizations come together to form a new entity in order to pursue common goals, such as entering new markets, developing new products or services, or improving existing processes. This allows the organizations to combine their resources, expertise, and networks to achieve mutual benefits and expand their reach. Joint ventures are often formed when organizations want to share risks and costs associated with entering new markets or undertaking new projects.Rate this question:
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- 15.
Generally the first within their industry in introducing new products and pursuing new market opportunities
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Competitive Advantage
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Prospectors
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Defenders
Correct Answer
A. ProspectorsExplanation
Prospectors are generally the first within their industry to introduce new products and pursue new market opportunities. This means that they are constantly seeking innovation and are willing to take risks in order to stay ahead of the competition. They are proactive in identifying and exploiting new market trends, which gives them a competitive advantage. On the other hand, defenders are more focused on protecting their existing market share and maintaining stability rather than actively seeking new opportunities. Therefore, the correct answer is prospectors.Rate this question:
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- 16.
Turf protectors that engage in little or new product/market development
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Defenders
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Prospectors
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First Movers
Correct Answer
A. DefendersExplanation
Defenders are turf protectors that focus on maintaining their current market position rather than engaging in new product or market development. They prioritize stability and defend their existing market share against competitors. Unlike prospectors, who actively seek new opportunities, defenders prefer to stick to their established products and markets. First movers, on the other hand, refer to companies that are the first to enter a new market or introduce a new product. Therefore, the correct answer is defenders.Rate this question:
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- 17.
Attempt to maintain positions in existing markets while waiting to see what happens when a competitor introduces a new product or enters a new market
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First Movers
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Defenders
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Analyzers
Correct Answer
A. AnalyzersExplanation
Analyzers are a type of strategic approach where companies maintain their positions in existing markets while closely monitoring and analyzing the actions of their competitors. This strategy involves waiting to see the impact of a competitor's new product or entry into a new market before making any significant moves. By carefully observing and analyzing the market dynamics, analyzers aim to make informed decisions and adapt their strategies accordingly. This approach allows them to balance between being proactive and cautious, ensuring they can respond effectively to changes in the competitive landscape.Rate this question:
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- 18.
React to environmental situations
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Reactors
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First Movers
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Prospectors
Correct Answer
A. ReactorsExplanation
The term "reactors" refers to organizations that respond to environmental situations. Reactors are characterized by their ability to quickly adapt and adjust their strategies in response to changes in the external environment. They are typically more flexible and reactive compared to other types of organizations. Reactors are known for their agility and willingness to change course when necessary, allowing them to effectively navigate and survive in dynamic and uncertain business environments.Rate this question:
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- 19.
Benefit when the move can be secured through patents, exclusive distribution channels, unique brand names or reputation, or licenses
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First Movers
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Analyzers
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Prospectors
Correct Answer
A. First MoversExplanation
The correct answer is "First Movers." First Movers refers to companies that are the first to enter a market or introduce a new product or service. By being the first, these companies can secure various advantages such as patents, exclusive distribution channels, unique brand names or reputation, or licenses. These advantages can help them establish a strong market position and gain a competitive edge over their rivals.Rate this question:
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- 20.
Offering products or services valued by the customers, offering standard products or services produced at a lower cost and usually offered at a lower price, or using a strategy called best cost
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Differentiation
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Uniqueness
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Competitive Advantage
Correct Answer
A. Competitive AdvantageExplanation
Competitive advantage refers to the ability of a company to offer products or services that are valued by customers, either through differentiation or cost leadership. This means that the company is able to stand out from competitors by offering unique and valuable products or by producing standard products at a lower cost, which allows them to offer lower prices to customers. By having a competitive advantage, a company is able to attract more customers and achieve higher sales and profitability compared to its competitors.Rate this question:
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Nov 14, 2023Quiz Edited by
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Mar 28, 2010Quiz Created by
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