Reference no: EM132864086

1. The Boston matrix essentially supports:

Select one:

a. a concentration on question marks.

b. product specialisation.

c. a balanced portfolio of products.

d. process specialisation.

e. an unbalanced portfolio of products.

Q2. Brand extension strategies are often used to delay the onset of the:

Select one:

a. introduction phase of the product life cycle.

b. maturity phase of the product life cycle.

c. 'Cash Cow' phase of the Boston matrix.

d. decline phase of the product life cycle.

e. growth phase of the product life cycle.

Q3. Here you'll see a description of a particular strategy and a list of Porter's five forces. Try to match the description with its correct term.

Retail and wholesale outlets combine together to force manufacturers of toys and games to offer bigger discounts for displaying their products.

Select one:

a. Threat of potential entrants increases.

b. Power of buyers increases.

c. Threat of substitutes is significant.

d. High degree of competitive rivalry in industry.

e. Power of sellers increases.

Q4. Under which of the following circumstances is the firm most likely to consider a price cutting strategy?

Select one:

a. Relatively elastic demand.

b. Unit elastic demand.

c. Perfectly inelastic demand.

d. Other firms raising their prices.

e. Relatively inelastic demand.

Q5. Which three of the following strategies were identified by Porter as 'generic strategies' open to firms?

Select one or more:

a. Focus strategy.

b. Price discrimination strategy.

c. 'Cheap and Cheerful' strategy.

d. Product differentiation strategy.

e. Overall cost leadership strategy.

Q6. Which one of the following international strategies involves an MNE in responding to high cost pressures and high local responsiveness pressures in a way which often involves a more geographically dispersed value chain?

Select one:

a. Global.

b. Transnational.

c. Multi domestic.

d. International.

Q7. The threat of potential entrants may cause existing (incumbent) firms to keep prices low, even if they current market situation would permit higher prices.

Select one:

True

False

Q8. In Ansoff's matrix, a diversification strategy may involve new products and new markets.

Select one:

True

False

Q9. A 'price war' is more likely to break out where price elasticity of demand is highly inelastic.

Select one:

True

False

Q10. In the decline stage of the product life cycle it may be worth cutting price to attract many new customers.

Select one:

True

False