Oxford University Press | Online Resource Centre

Question 1

A market is defined by:

a) Demand conditions and customers

b) Demand conditions and suppliers

c) Supply conditions and production technology

d) Supply conditions and customers

Question 2

Porter's generic strategies are:

a) Low price, differentiation, focus

b) Cost leadership, differentiation, cost focus, focus differentiation

c) Price leadership, differentiation, focus

d) Low cost, differentiation, focus differentiation

Question 3

According to Porter, if an organization does not follow either a cost reduction strategy or a differentiation strategy they are:

a) Hybrid

b) Stuck in the middle

c) Typical

d) No frills

Question 4

In Porter's Generic Strategies model, a focus strategy involves:

a) Selling a limited range of products

b) Selling to a narrow customer segment

c) Selling to one region only

d) Selling simple products that are cheap to produce

Question 5

A question for business level strategy would be:

a) Which industries do we want to be in?

b) How should the businesses be related?

c) How should the business compete in its market?

d) How should resources be shared amongst the businesses?

Question 6

Which of Porter's generic strategies is Easyjet following?

a) Differentiation

b) Cost leadership

c) Cost focus

d) Hybrid

Question 7

The experience curve theory suggests that as output doubles, the cost of production falls by:

a) 10-20%

b) 20-30%

c) 30-40%

d) 40-50%

Question 8

A differentiation strategy offers:

a) A broad segment something unique

b) A narrow segment something unique

c) A broad segment something more expensive

d) A narrow segment something more expensive

Question 9

H&M, the clothes retailer, is for most of its products following which business level strategy?

a) Focused differentiation

b) Hybrid

c) Cost Focus

d) No Frills

Question 10

According to Grant, what is the basis of competitive advantage?

a) A well-chosen generic strategy

b) Having the correct mix of businesses

c) Resources

d) Capabilities

Question 11

The 'durability' of resources and capabilities refers to:

a) Ricardian rents

b) The rate at which they depreciate or become obsolete

c) The extent to which they are tangible

d) The extent to which they are intangible

Question 12

The 'transparency' of competitive advantage refers to the extent to which?

a) Competitors can identify the reason for the competitive advantage

b) Competitors can access the same resources and capabilities

c) Competitors can copy the resources and capabilities

d) Competitors can find substitute resources and capabilities

Question 13

Kim and Mauborgne (2005) argue that organizations should try to capture uncontested market space. These uncontested markets are known as:

a) Blue skies

b) Blue oceans

c) White skies

d) Fresh snows

Question 14

At which stage of the industry life-cycle is buyer power likely to be at its lowest?

a) Introduction

b) Growth

c) Maturity

d) Decline

Question 15

D'Aveni (1999) describes industries in terms of how turbulent they are. The four different degrees of turbulence are described as equilibrium, fluctuating equilibrium, punctuated equilibrium and:

a) Dynamic-equilibrium

b) Hyper-equilibrium

c) Anti-equilibrium

d) Disequilibrium

Oxford University Press, Online Resource Centre, Chapter 07.

Chapter 07

Instructions