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Worksheetsteam 5
Total questions: 20
Worksheet time: 10mins
A blue ocean strategy focuses on:
Competing in existing markets
Creating new demand and market space
Following traditional industry rules
Lowering costs through efficiency
Which strategy is used to achieve cost leadership?
Differentiation
Vertical Integration
Low-cost production
Niche Marketing
What is the primary goal of corporate-level strategy?
Maximizing shareholder wealth
Increasing production
Enhancing operational efficiency
Reducing employee turnover
Why do companies focus on core competencies in strategic management?
To diversify randomly
To gain a sustainable competitive advantage
To reduce brand value
To decrease investment in innovation
What is a key strength of Amazon’s strategic advantage?
Limited supply chain
Weak customer loyalty
Integration of technology, logistics, and data analytics
Ignoring market trends
How do regulatory barriers impact market competition?
Make it easier for new entrants
Reduce the cost of entry
Have no impact on new businesses
Increase compliance costs and restrict market access
What role does technology play in market positioning?
Reduces competition
Enhances innovation and differentiation
Increases entry barriers only for startups
Prevents firms from adopting new business models
What is an example of a substitute product?
Electric cars replacing gasoline cars
Samsung launching a new smartphone
A company expanding its product line
A merger between two companies
Why do economies of scale create barriers to entry?
Reduce costs for established firms, making competition harder for new entrants
Allow new firms to set lower prices
Increase customer switching costs
Reduce dependency on brand loyalty
Which industry is most affected by supplier bargaining power?
Retail
Semiconductor
Automobile
Hospitality
What is a key characteristic of Strategic Advantage Profile (SAP)?
Focuses only on financial metrics
Analyzes internal strengths and weaknesses in a competitive context
Ignores external factors
Emphasizes short-term financial gains
How does high capital requirement impact market entry?
Encourages new firms to enter easily
Deters new firms due to financial constraints
Has no effect on competition
Lowers brand loyalty of competitors
Which of the following is NOT a component of Porter’s Five Forces Model?
Threat of New Entrants
Bargaining Power of Suppliers
Internal Rivalry
Threat of Substitutes
Which strategy would a company most likely use if it wants to increase market presence while reducing operational inefficiencies?
Expansion Strategy
Retrenchment Strategy
Stability Strategy
Combination Strategy
What is an example of scaling in an existing market?
Reducing production costs through automation
Acquiring a company in the same industry to increase market share
Expanding into an international market
Entering a completely different industry
A company that improves its customer service experience without introducing new products or entering new markets is applying which strategy?
Innovation Strategy
Retrenchment Strategy
Stability Strategy
Expansion Strategy
What is a key feature of a combination strategy?
It strictly focuses on cost reduction
It exclusively involves launching new product
It adapts to changing conditions by mixing multiple strategies
It avoids expansion and retrenchment entirely
A business that focuses on exiting unprofitable segments and strengthening its core operations is using which strategy?
Stability Strategy
Expansion Strategy
Retrenchment Strategy
Combination Strategy
Which of the following best describes a cost-cutting strategy?
Investing in research and development for innovation
Reducing expenses through process optimization and layoffs
Expanding into new geographic markets
Creating a hybrid approach of stability and expansion
A company introducing a new product to attract a different customer base is following which strategy?
Retrenchment Strategy
Stability Strategy
Expansion Strategy
Combination Strategy
