1.      Which one of the business level strategies provides low cost products or services to a particular market segment?  

a. Focused differentiation strategy

b. Focused cost leadership strategy

c. Cost leadership strategy

d. Integrated cost leadership/differentiation strategy

e. None of the above  

2.      The following is not an assumption of Total Quality Management:  

a. Employees are responsible for the TQM system.

b. The costs of poor quality are far greater than the costs of developing processes that produce high quality products and services.

c. Employees naturally care about their work and will take initiatives to improve it.

d. Organizations are systems of highly interdependent parts.

e. All of the above are assumptions of TQM.  

3.                  is not a primary activity in the value chain, but a support activity.  

a. Marketing and Sales

b. Procurement

c. Outbound Logistics

d. Service

e. All of the above are primary activities.  

4.  In a               , two firms agree to create value by using their skills and capabilities in different stages of the value chain.  

                                    a. Horizontal complementary alliance

                                    b. Competition response strategy

                                    c. Uncertainty reduction strategy

                                    d. Vertical complimentary alliance  

5. Which of the following is not an entry barrier for a company into a new industry?  

a. Government control of entry

b. low switching costs

c. high switching costs

d. expected retaliation of existing firms in the industry

     

6.  Companies in the                stage are most concerned with exploiting market position.  

            a. emerging

            b. growth

            c. mature

            d. fragmented  

7.When two or more firms have become so excessively competitive that the firms realize that the competition is self-destructive and informally cease engaging in it what occurs?  

            a. Mutual forbearance

            b. Vertical integration

            c. Multipoint competition

            d. Horizontal integration  

8.Which of the following is not one of the components of competitive analysis?  

a. Future objectives

b. Future strategy

c. Assumptions

d. Capabilities

e. All of the above are components of competitive analysis.  

                        9. Which of the following describes scanning?  

a.  A firm observes environmental changes and the key is to discover meaning in environmental events.

b.  It involves identifying the timing and importance of the effects of environmental changes on the strategic management of a firm.

c. It involves analyzing all segments of the general environment, and a firm usually recognizes early warning signs of changes in the environment.

d. None of the above.

Answer Key  

1.      B

2.      A

3.      B

4.      B

5.      D

6.      C

7.      A

8.      B

9.      C