Differentiation strategy is best described as one in which firms seek a competitive advantage:

• through establishing their uniqueness

• through having a lower cost than their competitors

• through concentrating on a narrow market segment

• through achieving a match between their internal and external environments

Which of the following is not an element of Porter’s 5 Forces Model?

• The firm’s macroeconomic environment.

• The firm’s existing competition.

• The bargaining power of suppliers.

• The potential competition from new entrants.

In Porter’s five forces model, conditions are more favourable for firms within an industry if:

• Buyer power is high

• Supplier power is high

• Entry threat is low

• Substitute threat is high

How a company is situated relative to its competitors is referred to as _____.

• market share

• position

• competitive advantage

• brand leadership

Which industry type is characterised by a large number of firms of approximately equal size?

• fragmented industry

• declining industry

• mature industry

• consolidated industry

In assessing competitors it might face in the soft drink (cola) industry, how would a Sarsaparilla drink business position in this industry?

• a direct competitor

• an indirect competitor

• a future competitor

• a follower competitor

What's the biggest threat to a new firm's viability when creating a new market?

• government deregulation

• government determination that the firm is a monopoly

• recession

• larger, better-funded firms copying them

From the list below, identify which factor does not form one of the six key areas of a PESTEL analysis.

• Technological changes

• Ecological changes

• Education changes

• Political changes

Which of the following are considered political elements of PESTLE?

• Visa requirements and trading tariffs.

• Weather and climate

• Currency inflation and interests rates.

• Age and gender.

How does PESTLE help your strategic development team?

• It helps you to identify the strengths of your company.

• It helps you to find solutions to problems, create marketing strategies, and stay ahead of your competition.

• It helps you to find the weaknesses of your company.

• It helps you to see how your company's financial well-being is affecting the environment.