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SM_Chapter_2

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

According to Hambrick and Fredrickson (2005), what is the main challenge associated with the term "strategy" in the business context?

a)

Lack of executive communication skills

b)

Strategic fragmentation and conflicting definitions

c)

Insufficient focus on joint venture strategies

2.

Which element of the Strategy Diamond refers to a product’s characteristics, such as its quality, customization and price?

a)

Arenas

b)

Differentiators

c)

Economic Logic

3.

Which of the following statements is true?

a)

The markets which a company wants to expand into is an example for “Staging”

b)

Selling a company’s product in Asia is an example for “Vehicles”

c)

Make or buy decisions refer to “Arenas”

4.

"IKEA stores are designed to offer customers a unique and enjoyable shopping experience."
With regards to the Strategy Diamond, what does this statement refer to?

a)

They try to differentiate themselves from the competition

b)

They try to diversify their revenue streams

c)

They try to expand rapidly in different countries

5.

If IKEA decided to produce luxury clothes to expand their business into new markets, which element of the Strategy Diamond would this strategic move refer to?

a)

Economic Logic

b)

Differentiators

c)

Arenas

6.

Netflix recently introduced 'paid sharing' to prevent users from sharing the same account for free.

In doing so, they are adjusting their...

a)

Economic logic

b)

Arenas

c)

Vehicles

7.

Netflix recently was not able to expand their licensing contracts with certain film producers, such as Disney or Paramount.

Which strategic response from Netflix refers best to Differentiators?

a)

Raising prices for all kinds of subscriptions

b)

Forming an alliance with other streaming services

c)

Focusing on producing own 'Netflix Originals'

8.

Considering the Economic Logic, which of the following are generic strategic approaches (Porter, 1985) achieve a competitive advantage?

a)

Price advantage and revenue advantage

b)

First-mover advantage and price advantage

c)

Price advantage and performance advantage

9.

Which of the following scenarios best represents the “vehicles” element of Hambrick & Fredrickson’s (2001) Strategy Diamond?

a)

A premium coffee chain expands into new geographic regions across Asia and Europe to reach new customer groups.

b)

A premium coffee chain acquires a minority stake in a local bakery chain to integrate pastry offerings into its stores.

c)

A premium coffee chain differentiates through sustainable sourcing and fair-trade certified beans.

10.

Which of the following statements best reflects the “economic logic” in Hambrick & Fredrickson’s (2001) Strategy Diamond?

a)

An online retailer focuses on same-day delivery and a seamless shopping experience to increase customer satisfaction.

b)

An online retailer uses economies of scale and automated fulfillment centers to offer lower prices than competitors.

c)

An online retailer expands its product range to include luxury fashion, electronics, and home décor items.