Business Strategy Week 6 - Ch 6

Porter's generic strategies include:

• Differentiation

• Cost leadership

• Focus

• All of the above

A small business has just one SBU:

• True

• False

SBU's have:

• Similar customers

• Similar channels

• Similar customers

• All of the above

SBUs allow large corporations to:

• Centralise initiative

• Vary business strategies across the portfolio

• Discourage accountability

• None of the above.

An example of a broadly-targeted Differentiator is:

• Aldi

• Apple

• Rolls Royce

• Porsche

An example of a broadly-targeted Cost Leader is:

• Apple

• KMart

• Ferrari

• Chanel

Economies of scale come from:

• Lower input costs

• Experience

• Lower labour costs

• All of the above

The cost leader achieves higher profits than average competitors with:

• Price proximity

• Price parity

• Both A. and B.

• None of the above.

Being 'stuck in the middle' means that you are

• Following a hybrid strategy.

• Following a 'no frills' strategy.

• Doing no strategy well.

• All of the above.

Aldi follows a focused lowest cost strategy because.

• The product range is restricted to the high-turnover goods.

• Services such as provision of bags and trolley return are not provided freely.

• Its own-brand policy allows it to reduce prices.

• All of the above.