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Business Strategy Week 6 - Ch 6

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Porter's generic strategies include:

a)

Differentiation

b)

Cost leadership

c)

Focus

d)

All of the above

2.

A small business has just one SBU:

a)

True

b)

False

3.

SBU's have:

a)

Similar customers

b)

Similar channels

c)

Similar customers

d)

All of the above

4.

SBUs allow large corporations to:

a)

Centralise initiative

b)

Vary business strategies across the portfolio

c)

Discourage accountability

d)

None of the above.

5.

An example of a broadly-targeted Differentiator is:

a)

Aldi

b)

Apple

c)

Rolls Royce

d)

Porsche

6.

An example of a broadly-targeted Cost Leader is:

a)

Apple

b)

KMart

c)

Ferrari

d)

Chanel

7.

Economies of scale come from:

a)

Lower input costs

b)

Experience

c)

Lower labour costs

d)

All of the above

8.

The cost leader achieves higher profits than average competitors with:

a)

Price proximity

b)

Price parity

c)

Both A. and B.

d)

None of the above.

9.

Being 'stuck in the middle' means that you are

a)

Following a hybrid strategy.

b)

Following a 'no frills' strategy.

c)

Doing no strategy well.

d)

All of the above.

10.

Aldi follows a focused lowest cost strategy because.

a)

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

b)

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

c)

Its own-brand policy allows it to reduce prices.

d)

All of the above.