Question 1

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

Accepted Answer

Porter's differentiation strategy focuses on providing unique and superior value to the buyer through product quality, special features, or after-sale service.

Question 2

Which of Porter's competitive strategies concentrates on a particular buyer group, product line segment, or geographic market so that a company can serve its market more effectively?

Accepted Answer

The differentiation focus strategy targets a specific market segment, allowing a company to tailor its products or services to meet the unique needs of that segment more effectively.

Question 3

A SFAS Matrix differs from the EFAS and IFAS Tables by adding a new column called

Accepted Answer

B

Question 4

Which offensive tactic utilizes a head-to-head approach with the firm's competitor by matching every category of competition from price to promotion to distribution channel?

Accepted Answer

The frontal assault tactic utilizes a head-to-head approach with the firm's competitor by matching every category of competition from price to promotion to distribution channel. This tactic involves competing on the same grounds and through the same channels as the competition. It is a high-risk approach but can be effective in capturing market share.

Question 5

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

Accepted Answer

A propitious niche is a market position that is so well-aligned with a company's strengths and the external environment that it is unlikely to face significant competition.

Question 6

Which offensive tactic proposes an indirect approach against the established competitor such as changing the rules of the game?

Accepted Answer

The bypass attack proposes an indirect approach against the established competitor such as changing the rules of the game. It involves avoiding the competitor's strengths and instead focusing on weaknesses or new opportunities that the competitor has not yet recognized. This can include changing market rules, introducing new products or services, or identifying and exploiting gaps in the competitor's offerings.

Question 7

An acronym for the assessment of the external and internal environments of the business corporation in the process of strategy formulation/strategic planning is

Accepted Answer

The acronym for the assessment of the external and internal environments of the business corporation in the process of strategy formulation/strategic planning is S.W.O.T. It stands for Strengths, Weaknesses, Opportunities, and Threats.

Question 8

As an industry matures while overcoming fragmentation and becomes dominated by a small number of large companies, it tends to become an)

Accepted Answer

"Consolidated industry" is the best choice as it describes the process of an industry becoming dominated by a few large companies and overcoming fragmentation. This is often due to mergers and acquisitions, leading to increased market power and reduced competition.

Question 9

Midamar Corporation, the maker of halal foods, successfully follows a strategy of

Accepted Answer

The answer of Midamar Corporation, the maker of halal foods,...

Question 10

A tactic is defined by the text as

Accepted Answer

A tactic is 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.

Question 11

Focus strategies will likely predominate when many small and medium-sized local companies compete for relatively small shares of the total market in an)

Accepted Answer

In a fragmented industry, there are many small and medium-sized companies competing for small shares of the total market, making focus strategies more effective.

Question 12

Which of Porter's competitive strategies recommends that a company emphasize a particular buyer group or geographic market and attempts to serve only this niche market in order to be more efficient?

Accepted Answer

The cost focus strategy involves targeting a specific niche market and offering products or services at a lower cost to serve that particular group more efficiently.

Question 13

Which defensive tactic acts to block a challenger's logical avenues of attack such as exclusive agreements with distributors or an increase scale economies to reduce unit costs?

Accepted Answer

Raising structural barriers involves creating obstacles that make it difficult for competitors to enter or succeed in the market, such as exclusive agreements or achieving economies of scale.

Question 14

Business strategy focuses on

Accepted Answer

Business strategy is primarily concerned with improving the competitive position of a corporation's products or services within a specified market segment, focusing on how to compete successfully.

Question 15

According to Porter, the term that applies to the breadth of a company's target market is called

Accepted Answer

Competitive scope refers to the range or breadth of a company's target market, indicating whether a company targets a broad market or a narrow market segment.

Question 16

The technique that illustrates how management can match the external opportunities and threats with its strengths and weaknesses to yield four sets of strategic alternatives is called a an)

Accepted Answer

The TOWS Matrix is the technique that matches external opportunities and threats with the organization's strengths and weaknesses. It helps in identifying strategies that can take advantage of opportunities, counter threats, leverage strengths, and overcome weakness. Option A (IFAS Table), Option B (EFAS Table), and Option C (SFAS Table) are tools that help in analyzing the internal and external factors affecting the organization but do not provide strategic alternatives like the TOWS matrix. Option E (Issues Priority Matrix) is a tool used to prioritize issues and not a framework for generating strategic alternatives.

Question 17

Which offensive tactic advocates attacking a part of the market where the competitor is weak?

Accepted Answer

Flanking maneuver involves attacking a niche or segment of the market where the competitor is weak and where they have not established a strong presence or dominance. This allows the company to gain a foothold in the market without competing directly with the competitor's strengths.

Question 18

According to Porter, a business unit in a competitive marketplace with no competitive advantage is

Accepted Answer

Porter describes a business unit with no competitive advantage as "stuck in the middle," meaning it lacks a clear strategy to differentiate itself or compete on cost.

Question 19

When lower cost and differentiation strategies have a narrow focus on a market niche they are simply called

Accepted Answer

When lower cost and differentiation strategies have a narrow focus on a market niche, they are called cost focus and differentiation focus. This approach allows firms to compete more effectively within a specific segment of the market by offering products or services tailored to the unique needs of that market.

Question 20

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

Accepted Answer

Lower cost strategy focuses on producing and marketing products more efficiently than competitors, allowing a company to offer lower prices or achieve higher margins.

Quiz 5: Strategy Formulation: Situation Analysis and Business Strategy