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1. UOP STR 581 Week 4 Knowledge Check New
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1.Firms that enjoy higher profit margins are using which of
Michael Porter’s generic strategies?
A. Cost leadership
B. Differentiation
C. Focus
D. Concentrated growth
2.Which of the following companies is a good example of a low-
cost leader?
A. Wal-Mart
B. Brooks Brothers
C. Chivas Regal
D. Porsche
3.Firms that follow this type of generic strategy can sometimes
have difficulties succeeding without compromising the key
attributes of a company’s products or services.
A. Focus
B. Differentiation
C. Cost leadership
D. Concentrated growth

2. 4.Which of the following is a generic strategy developed by
Michael Porter?
A. Market development
B. Differentiation
C. Liquidation
D. Innovation
5.Striving to create and market unique products for varied
customer groups is called
A. cost leadership
B. differentiation
C. focus
D. concentrated growth
6.Which of the following is a value discipline?
A. Operational excellence
B. Cost leadership
C. Concentrated growth
D. Innovation
7. Companies that pursue this value discipline strive to produce
a continuous stream of state-of-the-art products and services.
A. Customer intimacy
B. Operational excellence
C. Product leadership
D. Innovation
8. Which of the grand strategies is typically lowest in risk?
A. Horizontal integration
B. Concentrated growth
C. Market development
D. Divestiture
9. The grand strategy in which the firm directs its resources to
the profitable growth of a single product, in a single market and

3. with a single technology is termed
A. product development
B. market development
C. concentrated growth
D. vertical integration
10. What is it called when current products are marketed, often
with only cosmetic changes, to customers in related market
areas?
A. Diversification
B. Concentrated growth
C. Product development
D. Market development
11. The acquisition of one or more businesses operating at the
same stage of the production-marketing chain is an example of
A. market development
B. product development
C. innovation
D. horizontal acquisition
12. If a textile producer acquires a shirt manufacturer, this is
called
A. vertical horizontal acquisition
B. backward horizontal acquisition
C. backward vertical acquisition
D. forward vertical acquisition
13. For the ABC Company, the Alpha business is in a dominant
market share position in a mature market. As per the BCG
matrix, Alpha is a
A. star
B. question mark
C. cash cow
D. dog

4. 14. Which matrix makes fine distinctions among business
portfolio positions with the inclusion of high/medium/low
axes?
A. Industry strength matrix
B. Growth-share matrix
C. Strategic environments matrix
D. Industry attractiveness–business strength matrix
15. Which matrix involves a framework that can help ensure
that businesses' strategies are consistent with strategies
appropriate to their strategic environment?
A. Strategic choice matrix
B. Growth-share matrix
C. Industry attractiveness–business strength matrix
D. Strategic environments matrix
16. Which of the following represents an operating opportunity
to build value or sharing?
A. Shared inbound or outbound shipping and materials
handling
B. Shared management know-how
C. Shared after-sales service
D. Shared brand name
17. The most compelling reason companies should diversify
can be found in situations when
A. core competencies are not similar
B. core competencies can be leveraged with other products or
into other markets
C. management is similar in various businesses
D. cash resources can be leveraged
18. The core competency must represent a major source of
value to be a basis for competitive advantage. Furthermore, the
core competency

5. A. must be negotiable
B. must be financial
C. must be diversified
D. must be transferable

6. A. must be negotiable
B. must be financial
C. must be diversified
D. must be transferable