business planning & goals setting 3

1. What does Porter’s Five Forces framework primarily analyze?

• 1. Employee performance

• 1. Internal marketing strategies

• 1. Industry competitiveness and profitability

• 1. Product pricing decisions

2. Which force focuses on competition between firms in the same industry?

• 2. Threat of Substitutes

• 2. Bargaining Power of Buyers

• 2. Threat of New Entrants

• 2. Rivalry Among Existing Competitors

3. Which of the following increases the bargaining power of buyers?

• 3. High brand loyalty

• 3. High switching costs

• 3. Few buyers purchasing in large volumes

• 3. Highly differentiated products

4. What is the effect of a strong threat of substitutes in an industry?

• 4. Higher prices

• 4. Limited innovation

• 4. Reduced profitability and price limits

• 4. Increased supplier control

5. Which industry is known for high barriers to entry due to capital and regulation?

• 5. Fast food

• 5. Retail fashion

• 5. Aerospace

• 5. Software development

6. What two dimensions form the Ansoff Matrix?

• 6. Profitability & Risk

• 6. Products & Markets

• 6. Costs & Revenues

• 6. Strengths & Weaknesses

7. Which strategy involves introducing new products to existing markets?

• 7. Market Development

• 7. Market Penetration

• 7. Product Development

• 7. Diversification

8. Which is considered the riskiest strategy in the Ansoff Matrix?

• 8. Diversification

• 8. Product Development

• 8. Market Development

• 8. Market Penetration

9. Which is an example of Market Penetration?

• 9. Entering a foreign market

• 9. Launching a new product line

• 9. Offering discounts to increase sales among current customers

• 9. Acquiring a company in a different industry

10. What is the goal of Market Development in the Ansoff Matrix?

• 10. Sell new products to existing customers

• 10. Improve product quality

• 10. Enter new markets with existing products

• 10. Reduce operational costs