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STR 581 Week 4 knowledge check_100%.docx

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1. Firms that enjoy higher profit margins are using which of Michael Porter’s generic strategies?

Cost Leadership

2. If a textile producer acquires a shirt manufacturer, this is called

forward vertical acquisition

3. Which of the following companies is a good example of a low-cost leader?

Walmart

4. The grand strategy in which the firm directs its resources to the profitable growth of a single

product, in a single market and with a single technology is termed

Concentrated Growth

5. The most compelling reason companies should diversify can be found in situations when

core competencies can be leveraged with other products or into other markets

core competencies can be leveraged with other products or into other markets

6. Companies that pursue this value discipline strive to produce a continuous stream of state-of-

the-art products and services.

Product leadership

7. Firms that follow this type of generic strategy can sometimes have difficulties succeeding

without compromising the key attributes of a company’s products or services.

Cost Leadership

8. The acquisition of one or more businesses operating at the same stage of the production-

marketing chain is an example of

horizontal acquisition

9. Which of the following is a generic strategy developed by Michael Porter?

Differentiation

10. Which of the grand strategies is typically lowest in risk?

Concentrated growth

11. Which of the following is a value discipline?

Operational excellence

12. Which matrix makes fine distinctions among business portfolio positions with the inclusion of

high/medium/low axes?

Industry attractiveness–business strength matrix

13. What is it called when current products are marketed, often with only cosmetic changes, to

customers in related market areas?

Market development

14. For the ABC Company, the Alpha business is in a dominant market share position in a mature

market. As per the BCG matrix, Alpha is a

Cash Cow

15. Which matrix involves a framework that can help ensure that businesses' strategies are

consistent with strategies appropriate to their strategic environment?

Strategic environments matrix

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1. Firms that enjoy higher profit margins are using which of Michael Porter's generic strategies? Cost Leadership 2. If a textile producer acquires a shirt manufacturer, this is called forward vertical acquisition 3. Which of the following companies is a good example of a low-cost leader? Walmart 4. The grand strategy in which the firm directs its resources to the profitable growth of a single product, in a single market and with a single technology is termed Concentrated Growth 5. The most compelling reason companies should diversify can be found in situations when core competencies can b ...
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