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Question 1 of 20

The most intense level of competition will be under situations ofpure competition in which there is/are:

A. one seller and a low degree ofdifferentiation.   

B. many sellers and a high degree ofdifferentiation.   

C. many sellers and no degree ofdifferentiation.   

D. few sellers and a low degree ofdifferentiation.   

 
Question 2 of 20

Which of the following factor(s) determine the intensity ofcompetition in an industry according to the industryperspective?

A. The number of sellers   

B. The number of buyers   

C. How well different organizations are able to meet customersneeds   

D. The identification of strategic groups   

 
Question 3 of 20

The adaptive strategies approach was developed by:

A. Miles and Snow.   

B. Mintzberg.   

C. Abell.   

D. Porter.   

 
Question 4 of 20

Which of the following strategies is appropriate for business unitsthat search for market stability and produce only a limited productline directed at a narrow segment of the total potentialmarket?

A. Prospector competitive strategy   

B. Defender competitive strategy   

C. Analyzer competitive strategy   

D. Reactor competitive strategy   

 
Question 5 of 20

Systematically assessing and evaluating possible courses of actionis known as the __________ strategy.

A. reactor   

B. defender   

C. analyzer   

D. focus   

 
Question 6 of 20

According to Porter, the “appropriate” competitive strategy isbased on the organization’s:

A. manufacturing operations.   

B. competitive advantage.   

C. public relations department.   

D. financial forecasts.   

 
Question 7 of 20

The three generic types of competitive strategies are:

A. vertical integration, diversification, andgrowth.   

B. cost leadership, differentiation, andfocus.   

C. prospector, defender, and analyzer.   

D. build market share, maintain industry rank, and increasebusiness strength.   

 
Question 8 of 20

According to Michael Porter, competitive advantage can comefrom:

A. having the lowest price in the industry.   

B. having the lowest costs in the industry.   

C. having the most efficient production process in theindustry.   

D. having the most creative marketing strategies in theindustry.   

 
Question 9 of 20

When there is a broad competitive scope and there are low costsobtained, Porter suggests a(n) __________ strategy.

A. cost leadership   

B. differentiation   

C. prospector   

D. reactor   

 
Question 10 of 20

Which of the following is the main objective in the successfulpursuit of the cost leadership strategy?

A. Product innovation   

B. Efficiency in operations   

C. Customer focus   

D. Product design   

 
Question 11 of 20

When customers consistently and repeatedly seek out, purchase, anduse a particular brand, this is a situation of:

A. effective production policies.   

B. cultural dynamics.   

C. brand loyalty.   

D. operations management.   

 
Question 12 of 20

Which strategy is used by businesses that compete in a narrowmarket and use only one common competitive weapon?

A. Differentiated strategy   

B. Focus strategy   

C. Analyzer strategy   

D. Prospector strategy   

 
Question 13 of 20

The main goal of a company pursuing a differentiation strategy isto:

A. increase market share and profits.   

B. lower production costs and increaseefficiency.   

C. provide products or services that areunique.   

D. improve customer-oriented service.   

 
Question 14 of 20

When an organization is not successful at pursuing a low-cost ordifferentiation strategy, this concept is referred to by Porteras:

A. focus (cost).   

B. focus (differentiation).   

C. stuck in the middle.   

D. prospector.   

 
Question 15 of 20

One advantage of the focus strategy is:

A. the organization will get to know its market niche verywell.   

B. the organization has difficulty lowering costssignificantly.   

C. other organizations may be able to offer lower costs of theproduct.   

D. the organization may lose sight of changing customerneeds.   

 
Question 16 of 20

A company that produces commodity aluminum should pursue which ofthe following generic competitive strategies?

A. Cost leadership   

B. Differentiation   

C. Growth   

D. Profit   

 
Question 17 of 20

Using Mintzberg’s framework, organizations that compete on thebasis of providing desirable product features and designconfigurations are using differentiation by:

A. product design.   

B. product quality.   

C. price.   

D. marketing image.   

 
Question 18 of 20

When an organization attempts to exploit and strengthen itscompetitive position through attacks on a competitor’s position,this ploy is known as:

A. defensive strategies.   

B. offensive moves.   

C. defensive moves.   

D. offensive strategies.   

 
Question 19 of 20

A frontal assault with regard to competitive actions means:

A. matching the competition along the dimension of priceonly.   

B. matching the competitor along dimensions such as price,promotion, and distribution.   

C. holding off competitors with the use of internationalmarkets.   

D. remaining reactive the actions of thecompetition.   

 
Question 20 of 20

The small, intermittent, seemingly random assaults on the marketsof the competitors are referred to as __________ attacks.

A. guerrilla   

B. resource   

C. industrial   

D. maneuvered