11IP8OE STRATEGIC MANAGEMENT SLIP TEST

1. As seen in porter’s five forces model, conditions under which a supplier group can be more
powerful include all the following except; a) lack of importance of the buyer to the supplier group b)
high differentiation by the supplier c) readily available substitute products d) dominance by a few
suppliers.
2. A marketing department that promises delivery quicker than the production department's ability
to produce is an example of a lack of understanding of the a) synergy of the business units b) need
to maintain the reputation of the company c) organizational culture and leadership d)
interrelationships among functional areas and firm strategies.
3. In the BCG (Boston Consulting Group) Matrix, a business that has a low market share in an
industry set apart by high market growth is termed a; a)star b) cash cow c) question mark d) dog
4. Denoted in the Boston Consulting Group Portfolio management technique, a "cash cow, refers to
a business that has a) relatively low market share and low market growth b) low market growth and
relatively high market share c) relatively low market share and high market growth d) high market
growth and relatively high market share
5. Vertical integration may be beneficial when a) flexibility is reduced, providing a more stationary
position in the competitive environment b) the minimum efficient scales of two corporations are
different c) lower transaction costs and improved coordination are vital and achievable through
vertical integration d) various segregated specializations will be combined
6. The GE 9 cell model is based on a) industry attractiveness and business strength b) industry growth
rate and business strength c) industry attractiveness and relative market share d) industry growth and
relative market share
7. The BCG matrix is based on a) industry attractiveness and business strength b) industry growth rate
and business strength c) industry attractiveness and relative market share d) industry growth rate and
relative market share.
8. Typically, profits are highest in which stage of the industry life cycle? a)introduction b)growth c)
maturity d) decline
9. Which of the following might be sources of synergy between two business units? a) they have
similar customers and use the same distribution channels b) the profits from one can be used to finance
the other when it gets into trouble c) they both have a website d) they are both located in the same
place
10. Economies of scale are derived from; a)achieving cheaper unit costs through making larger
quantities b) using cheaper raw materials c)increasing the breadth of the portfolio d) increasing the
number of markets served.
11. A strategic decision can be distinguished from other types of decisions by three factors, these are
magnitude, time-scale and: a)commitment b)riskiness c) impact d) longevity
12. Opportunities and threats are posed by the a)Internal resources b) External environment c) Firm
level competencies d) Government policies only
13. In which stage of the product life cycle should a firm consider investing heavily in
advertising a) Maturity Phase b) Introductory and emergent phase c) Growth Phase d)
Research Phase
14. In the ‘five forces model’, what is the type of competitive activity that exists between
organizations? a) the potential for entry into the industry b) the threat of substitute products c) the
power of customers d) the level of rivalry.
15. In the 'five forces model', what is the type of competitive activity that exists between organisations?
16. a) The potential for entry into the industry
17. b) The threat of substitute products
18. c) The power of customers
19. d) The level of rivalry
20.

21.
22.
23.

24. A strategic decision can be distinguished from other types of decisions by three factors, these are
magnitude, time-scale and:
25. a) Commitment
26. b) Riskiness
27. c) Impact
28. d) Longevity
29.

30. Economies of scale are derived from:

31. a) Achieving cheaper unit costs through making larger quantities
32. b) Using cheaper raw materials
33. c) Increasing the breadth of the portfolio
34. d) Increasing the number of markets served
35.
36. Which of the following might be sources of synergy between two business units?
37. a) They have similar customers and use the same distribution channels
38. b) The profits from one can be used to finance the other when its gets into trouble
39. c) They both have a website
40. d) They are both located in the same town
41.
42.
43.
44.
45.
46.