Business Strategy Quiz # 3

Which of the following would probably NOT be considered wrongful termination of an employee?

Firing an employee who commits or threatens physical violence

Firing an employee due to his or her age

Firing an employee because he or she reported an illegal activity taking place in the workplace

Firing an employee for whistleblowing on a contract that is using government funds

True of False? A Cost Leadership strategy places an emphasis on lower selling prices rather than lower costs.

False

True

How can companies avoid falling prey to "The Icarus Paradox"?

Marketing

Low Pricing Strategy

Research and Development

Dominating the Competition

Which of the following is a benefit of Horizontal Integration?

Economies of Scale

Both Economies of scale and Economies of scope

Economies of Scope

Which framework determines the competitive intensity of a market?

The Fox Five Force analysis

The Five Porter analysis

Porter Competition analysis

The Porter Five Forces analysis

What is horizontal integration?

Forming strategic alliances with companies that provide complementary products

A strategy where companies acquire or create products that are alike or complementary to one another

Working with competitors to provide a standard process or product for the market

A style of growth and management control in which you integrate companies in your supply chian

According to the Growth-share matrix, a high market growth rate and market share means you are:

A Star

A dog

A cash cow

A question mark

Which is NOT a stage in the shifting basis of competition?

None of these

Reliability

Functionality

Convenience

What are profit margins?

It is a ratio of profitability, calculated by sales divided by net income

It is a ratio of profitability, calculated by revenue divided by sales

It is a ratio of profitability, calculated by sales divided by revenue

It is a ratio of profitability, calculated by net income divided by sales

What is a hostile takeover?

When a company invests in a holding company who owns one of its competitors and attempts to force it to close

To acquire a company through the company's shareholders rather than the company's management

When employees attempt to take over a companies management by threatening strike or refusing to work for several periods driving the company to either give in to management change wnated by the employees or face possible bankruptcy.

When a company "offers" to buy a smaller company with the threat of putting them out of business or making it very difficult for them to remain competive

If you are a company in a cyclical industry what is a good business strategy for you?

Deal with the volatility by implementating cuts to compensations, reducing employee work hours, or laying off workers during bad times. Paying bonuses, ensuring enough inventory, and hiring in mass during good times.

Close shop completly during bad times, and reopen when good times approach

Work with trade unions to ensure all work is approved beforehand and there is little risk of strike

Since costs are fixed, lower your workforce until you find the best formula for profit. Keep adjusting and improving this formula throughout the year.

What micro-economic analysis would you use to analyze economics, social factors, and government regulations?

Securities analysis

SWOT analysis

PET analysis

PEST or STEEP analysis

What is recombinant innovation?

Working with competitors to produce innovative products

Take ideas from one context and apply it to another context

The process of constantly innovating and creating new products

Revamping previously failed innovations

A competitive advantage suggests what?

A company is able to sell stock

A company is able to compete

A company is outperforming its competitors

A company is selling a unique product

What trait should an information-driven company have at its core?

A solid, unshakable core

An inflexible centralized core

A flexible, decentralized structure

An enterprising and motivated core

OPEC is an example of what?

Cartel

Oligopoly

Monopoly

Why must change be a strategic function of business?

Change is natural and doesn't require a strategy

Change in business is a constant disruption that can devastate the stability of a company

Change is a strategy in itself

Strategy is change and doesn't need further planning

What does the T stand for in the PEST analysis?

Technological

Team

Test

Threat

What are two internal environmental factors that must be considered when developing a sound marketing strategy?

Performance mix and marketing advantage

Strategic mix and performance matrix

Marketing mix and performance analysis

Marketing dominance and portfolio strategy

Oil companies' business models are examples of what?

Vertical Integration

Horizontal Integration

Economies of Scale

Supply Chains

What performance management tool do companies use to measure and retain their competitive advantage?

Competitive Framework

Competitive Metrics

Advantage Matrix

Balanced Scorecard

What is "The Icarus Paradox"?

Businesses who who spend money to grow, but end up growing too fast and expend all the resources

Businesses that bring about their own downfall through their own successes

A demand curve is more price elastic when a price____________ ?

Decreases

Increases

What is an example of a legal monopoly?

A company that owns all the possible patents related to a specific technology therefore no other company can legally enter into that market without violating their patent

A company that purchases all of its competitors

Utility companies

A company that defeats all its competitors due to superior product and price, and is able to charge whatever it wants since it is the only one in business

In which situation would a joint venture make the most sense?

A successful company that specializes in high end cat food with little market share and a successful company that specializes in low grade cat food with plenty of market share

A very competive industry in which one competitor wants to try something new and brings in another competitor to make the process is smoother

A telecommunications company who wishes to expand its network coverage and a competitor who owns several cell phone towers

A traditional software company that wants to expand into retail and a marketing company who specializes in retail sales

What company is an example of a brandnomer?

Band-Aid

Best Buy

Xerox

McDonalds

How many of porter's five forces refer to competition?

Three

Two

Four

One

What ratio is used as an indicator of the size of a leading firm in relation to its industry?

Sample ratio

Sharpe Ratio

Concentration ratio

Quick ratio

Market ratio

What market dominance trend is common in most industries?

A steady trend

A dominant trend

An increasing trend

A declining trend

Which is not a value chain function?

Innovation

Product Design

Distribution

Research

Quiz:	Business Strategy Quiz # 3
Subject:	Basic Business Strategy
Total Questions:	30 MCQs
Time:	30 Minutes