Self-test Questions

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1		In analysing the competitive structure of an industry, a useful model is:
			A)	The Value Chain Analysis
			B)	The Diffusion of Innovation Model
			C)	The Five Forces Framework
			D)	The Competitive Advantage of Nations
			E)	The Boston Consulting Group Matrix
2		In analysing competitors, firms should only look at companies that produce technically similar products.
			A)	True
			B)	False
3		Competitor analysis using the 'Four Layer Approach' includes all but one of the following. Which?
			A)	Identifying strategic objectives
			B)	Auditing competitor capabilities
			C)	Identifying the structure of competitor industry
			D)	Indicating how competitors might respond
			E)	Identifying who the competitors are
4		The Experience Curve is:
			A)	The shape of the PLC in the mature phase
			B)	The effect of learning and economies of scale as output measures
			C)	The breadth of a firm's competitive advantage
			D)	The identity of the competitors
5		The intensity of rivalry between competitors in an industry will depend on:
			A)	The degree of differentiation
			B)	Strategic objectives
			C)	Structure and costs
			D)	Switching costs
			E)	Any of the above
6		In most situations, differentiation and cost leadership strategies are compatible.
			A)	True
			B)	False
7		Michael Porter's model of competitive industry structure indicates a number of forces that shape profitability. Which of the following is not one of those forces?
			A)	Power of suppliers
			B)	The threat of new entrants
			C)	Industry cost base
			D)	Industry competitive rivalry
8		Differentiation and cost leadership are both ways in which firms can:
			A)	Increase their competitive scope
			B)	Gain a competitive advantage
			C)	Identify a competitor's key success factors
			D)	Lower their prices to end users
			E)	Raise their prices to end users
9		In your view, what sort of generic strategy have the no frills supermarkets Netto and KwikSave both employed?
			A)	A differentiation focus strategy
			B)	A superior resources strategy
			C)	A cost leadership strategy
			D)	A market leader strategy
			E)	Price leadership
10		Economies of scale, factory location, linkages, capacity utilisation and learning are all:
			A)	Ways of competing by differentiation
			B)	Cost drivers in the value chain
			C)	Niche strategies
			D)	Any of the above
11		In identifying sources of competitive advantage, firms predominantly use one of the following models of analysis. Which?
			A)	The Generic Strategy Model
			B)	Value Chain Analysis
			C)	A SWOT
			D)	The General Electric multi-factor model
			E)	Strategic group analysis
12		The primary activities in the Value Chain Model include all the following, except one. Which?
			A)	Marketing and sales
			B)	Procurement
			C)	Operations
			D)	Distribution
			E)	Service