Business & Management Test: Business Strategy

40 Questions | Total Attempts: 634

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Strategy Quizzes & Trivia

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Questions and Answers
  • 1. 
    The process of strategic analysis is aided by a number of tools.  These tools include:
    • A. 

      SWOT analysis

    • B. 

      Porters Five Forces Analysis

    • C. 

      PEST analysis

    • D. 

      All of the above

  • 2. 
    If we want to assess the product portfolio of a business, we could use:
    • A. 

      The ANSOFF Matrix

    • B. 

      Michael Porters Five Forces Model

    • C. 

      The Boston Consulting Group (BCG) Matrix

    • D. 

      All of the above

  • 3. 
    If a country believes in free trade, which of the following policies is not acceptable?
    • A. 

      Globalization policies.

    • B. 

      Trading Bloc membership.

    • C. 

      Anti-dumping duties.

    • D. 

      Protectionist measures.

  • 4. 
    According to Michael Porter, what are the two main factors which can lead to a significant competitive advantage? 
    • A. 

      Higher costs and differentiated products

    • B. 

      Lower costs or differentiated products

    • C. 

      Lower costs or homogeneous products

    • D. 

      Lower costs or economies of scale.

  • 5. 
    According to Michael Porter, differentiated products will allow companies to:
    • A. 

      Charge a higher price

    • B. 

      Charge a lower price

    • C. 

      Increase prices with no change in consumer demand

    • D. 

      Increase prices with only a small change in demand.

  • 6. 
    When companies invest in robotic technology or other machines to reduce costs, this is called:
    • A. 

      Rationalization

    • B. 

      Automation

    • C. 

      Research and Development

    • D. 

      All of the above.

  • 7. 
    When two companies merge, they may benefit through bulk purchases and a smaller combined workforce.   This is called:  
    • A. 

      Rationalization

    • B. 

      Automation

    • C. 

      Research and Development

    • D. 

      None of the above.

  • 8. 
    Shell has spent millions of dollars on R&D to allow _________________ away from its original oil and gas business.
    • A. 

      Differentiation

    • B. 

      Diversification

    • C. 

      Spending

    • D. 

      Movement

  • 9. 
    Hamel and Prahalad (1990) argued that competitive advantage may be enhanced when a business focuses on developing its: 
    • A. 

      Core competences

    • B. 

      Mission and vision statement

    • C. 

      USP

    • D. 

      All of the above.

  • 10. 
    What is a core product? 
    • A. 

      A product made from a business's core competences, and for final consumer use.

    • B. 

      A product made from a business's core competences but not for the final consumer or end user.

    • C. 

      A product made from a business's core competences, but only for select consumers.

    • D. 

      None of the above.

  • 11. 
    Which of the following should be associated with a core competence? 
    • A. 

      Provide recognizable benefits to consumers

    • B. 

      Not be easy for other firms to copy - eg: a patented design.

    • C. 

      Be applicable to a range of different products and markets

    • D. 

      All of the above.

  • 12. 
    According to Prahalad & Hamel, developing a core competency depends on: 
    • A. 

      Integrating multiple technologies

    • B. 

      Integrating different product skills that already exist in the business.

    • C. 

      Spending large amounts on R&D.

    • D. 

      The first two options are correct

  • 13. 
    Sony's ability to _____________________ electronic components has led to many core products. 
    • A. 

      Manufacture

    • B. 

      Produce

    • C. 

      Miniaturise

    • D. 

      Enlarge

  • 14. 
    By building up new products for new markets, there will be greater opportunity for ____________ of scale in the manufacture of the core products.
    • A. 

      Diseconomies

    • B. 

      Globalization

    • C. 

      Liberalization

    • D. 

      Economies

  • 15. 
    Strategic choice is concerned with:
    • A. 

      Identifying strategic options and deciding on one strategy that is best.

    • B. 

      Identifying strategic options, evaluating them and then choosing between them.

    • C. 

      Identifying strategic options, analyzing them, in order to avoid making mistakes.

    • D. 

      None of the above.

  • 16. 
    The process of strategic choice is aided by a number of techniques that include: 
    • A. 

      Decision trees

    • B. 

      Fishbone diagram

    • C. 

      Force field analysis

    • D. 

      All of the above

  • 17. 
    Forecasting future market changes is possible by using: 
    • A. 

      Porters 10 Forces Model

    • B. 

      Sales Forecasting

    • C. 

      PESTLE analysis

    • D. 

      None of the above.

  • 18. 
    Which business tool can be used to identify growth strategies?
    • A. 

      The Product Diffusion Curve

    • B. 

      Michael Porters Five Forces Model

    • C. 

      The Mouton and Blake Managerial Grid

    • D. 

      The ANSOFF Matrix

  • 19. 
    Target setting and ______________________ is an important tool to measure success against competitors. 
    • A. 

      Goal setting

    • B. 

      A mission statement

    • C. 

      Benchmarking

    • D. 

      All of the above.

  • 20. 
    A corporate plan could include 
    • A. 

      A profit target

    • B. 

      A sales growth target

    • C. 

      A market share target

    • D. 

      All of the above

  • 21. 
    A _______________ plan is a methodical plan containing details of the organisation's central objectives and strategies to achieve them.
    • A. 

      Marketing

    • B. 

      Corporate

    • C. 

      Finance

    • D. 

      Hr

  • 22. 
    According to the ANSOFF Matrix, increasing sales of existing products in the home market is called:
    • A. 

      Market development

    • B. 

      Diversification

    • C. 

      Product development

    • D. 

      Market penetration.

  • 23. 
    The value of corporate planning for several years ahead is that senior managers have: 
    • A. 

      A clear focus

    • B. 

      A sense of purpose

    • C. 

      All the information they will require

    • D. 

      The first two options are correct.

  • 24. 
    An important benefit of any corporate plan is the control and __________ process.
    • A. 

      Stability

    • B. 

      Review

    • C. 

      Analysis

    • D. 

      None of the above.

  • 25. 
    By preparing a corporate plan, senior managers are forced to consider the organization's:
    • A. 

      Worst performing employees

    • B. 

      Trials and tribulations

    • C. 

      Hr problems

    • D. 

      Strengths and weaknesses