Ansoff Matrix Strategies Quiz

Which option in the Ansoff matrix focuses on developing new products for existing markets?

• Market penetration

• Market development

• Product development

• Diversification

A high street retailer starts selling online and achieves a high proportion of sales via the internet. Which market development strategy does this best exemplify?

• Increasing consumption among existing users.

• Attacking competitors’ sales.

• Identifying new customers through different distribution channels.

• Attracting occasional users by increasing brand loyalty.

Why might a business attempt diversification?

• To see a new opportunity and has investment funds available

• To reduce the number of employees

• To focus only on existing products

• To avoid any risk

Which of the following companies is recognized as innovative for continually developing their products?

• Apple

• Virgin

• Mars

• Tesco

Which of the following best describes organic growth in a business?

• Expansion by selling more products using existing resources

• Merging with another company to increase market share

• Acquiring another business to expand operations

• Reducing the number of employees to cut costs

Which type of integration occurs when a business merges with or takes over another business at the previous stage in the production process within the same industry?

• Forward vertical integration

• Horizontal integration

• Backward vertical integration

• Conglomerate integration

Why might a business pursue horizontal integration, according to the text?

• To increase the number of suppliers

• To reduce competition and gain greater market power

• To diversify into unrelated industries

• To improve employee satisfaction

Which of the following is an example of forward vertical integration?

• A manufacturer buying a retailer

• A retailer buying a manufacturer

• Two retailers merging

• A manufacturer buying raw materials

How can mergers and takeovers help a company increase its market power?

• By increasing its market share

• By reducing its product quality

• By limiting its operations to one region

• By avoiding competition

Consider a scenario where two companies merge, but instead of reducing duplicated services, they maintain all existing departments. What impact might this have on the expected synergy and cost savings?

• The expected synergy and cost savings would likely be reduced or not realized.

• The synergy would increase due to more staff.

• Cost savings would be higher due to increased spending.

• There would be no impact on synergy or cost savings.