SFI CHAPTER 6 CHECK-OUT ACTIVITIES

Multiple Choice

What is the primary objective of offensive strategy?

• Protecting and maintaining market position 

• Expanding market share and gaining a competitive advantage

• Restricting options for potential challengers 

• Minimizing costs and maximizing efficiency

Multiple Choice

 Which of the following is an example of a defensive strategy? 

• Introducing new features and models to fill market gaps 

• Challenging the quality of competitors' products 

• Offering volume discounts to dealers and distributors 

• Expanding into new international markets

Multiple Choice

What is an example of a defensive strategy used by a fast-food chain to protect its market position? 

• Launching a new advertising campaign targeting a specific demographic 

• Introducing a new menu item to attract more customers 

• Offering promotional discounts to counter competitor's pricing strategies 

• Expanding into international markets to increase market share

Multiple Choice

Late-mover advantages refer to the benefits that a company can gain by: 

• Being the first to enter a market and establish a strong presence 

• Entering a market after competitors have already established themselves 

• Adopting a defensive strategy to protect its market position 

• Investing heavily in research and development for innovative products

Multiple Choice

 In 2019, The Walt Disney Company acquired 21st Century Fox. This acquisition is an example of: 

• Horizontal merger 

• Vertical integration 

• Conglomerate merger 

• Strategic alliance

Multiple Choice

 Tesla, a leading electric vehicle manufacturer, vertically integrated its operations by: 

• Acquiring a battery manufacturing company to secure its supply chain 

• Forming a partnership with a renewable energy company to promote sustainable practices 

• Diversifying into the aerospace industry by launching SpaceX 

• Selling off its solar energy division to focus solely on electric vehicles

Multiple Choice

Nestle outsources a significant portion of its manufacturing operations to third-party companies. Which of the following is a key reason why Nestle utilizes outsourcing? 

• To reduce costs and improve operational efficiency 

• To gain control over the entire value chain 

• To eliminate competition from other manufacturers 

• To strengthen its in-house manufacturing capabilities

Multiple Choice

Nestle formed a strategic alliance with which company to create the joint venture called Nestle Waters?

• The Coca-Cola Company 

• Danone 

• PepsiCo 

• Starbucks

Multiple Choice

Which of the following markets is more likely a Blue Ocean market?

• 1. Smartphone market

• 1. Ride-sharing market

• 1. Plant-based meat market

• 1. E-commerce market

Multiple Choice

 Which of the following best describes backward vertical integration? 

• When a company expands its operations into a higher stage of the supply chain or towards the end-consumer. 

• When a company expands its operations into a lower stage of the supply chain or towards the raw materials source. 

• When a company forms a strategic alliance with a competitor to jointly develop new products. 

• When a company outsources its operations to third-party vendors to reduce costs.