BBM Degree in Business Management Strategy 2

Question 1

Which strategic framework analyzes a company's competitive position using five forces including supplier power and threat of substitutes?

Accepted Answer

Porter's Five Forces

Answer

Porter's Five Forces model evaluates industry attractiveness through five competitive pressures: rivalry, buyer power, supplier power, threat of new entrants, and threat of substitutes.

Question 2

A company decides to acquire a supplier to reduce input costs and secure supply. This is an example of:

Accepted Answer

Backward vertical integration

Answer

Backward vertical integration occurs when a company acquires or merges with a supplier that operates earlier in the supply chain.

Question 3

In the context of corporate strategy, a 'cash cow' in the BCG Matrix is characterized by:

Accepted Answer

Low market growth and high relative market share

Answer

Cash cows operate in slow-growth markets but hold dominant market share, generating steady cash flow with minimal investment required.

Question 4

Which of the following best describes a 'blue ocean strategy'?

Accepted Answer

Creating uncontested market space by making competition irrelevant

Answer

Blue ocean strategy, developed by Kim and Mauborgne, focuses on creating new demand in uncontested markets rather than competing in existing saturated ones.

Question 5

A firm's core competency is BEST described as:

Accepted Answer

A unique bundle of skills and technologies that creates value and is difficult to imitate

Answer

Core competencies, per Prahalad and Hamel, are deeply embedded capabilities that provide competitive advantage, are hard to replicate, and can be applied across multiple markets.

BBM - Business Management Degree Practice Test

BBM - Business Management Degree Practice Test

BBM Degree in Business Management Strategy 2