University of Management & Technology Lahore

School of Professional Advancement

Name and ID: ____Muhammad Bilal_____f2020052025___________
Course Title: ______________________________ Marks: ______________
Section-I
Q-1: Encircle the correct options [10]
1. The Resource-based view of the firm could also be described as:
a) The outside-in approach
b) The inside-out approach
c) The outsider approach
d) The insider approach
2. If a resource is 'inimitable' a competitor finds it:
a) Easy to copy
b) Easy to acquire
c) Easy to copy and easy to acquire
d) Difficult to copy
3. What are the core competencies?
a) Resources which critically underpin competitive advantage and that others cannot
obtain
b) Activities and processes needed to meet customers minimum requirements and
therefore continue to exist
c) Key skills required in particular business
d) None of the above
4. In SWOT analysis the internal factors include?
a) Strengths and Weaknesses
b) Opportunities and Threats
c) Strengths and Opportunities
d) Weaknesses and Threats
5. Which of the following is false regarding why a SWOT Analysis is used?
a) To build on the strengths of a business
b) To minimize the weaknesses of a business
c) To reduce opportunities available to a business
d) To counteract threats to a business
6. Which of the following could be an opportunity?
a) Having quality processes and procedures
b) Moving into new market segments that offer improved profits
c) Damaged reputation
d) A new competitor in your home market
7. Which of the following is true about preparing a SWOT Analysis?
a) It should focus on where the organization is today, not where it could be in the
future.
b) A SWOT Analysis is objective
c) It should be specific and avoid grey area
d) It should analyze the organization only and ignore the performance of competitors.
8. A sustained or sustainable competitive advantage requires that
a) The value creating strategy be in a formulation stage.
b) Competitors be simultaneously implementing the strategy.
c) Other companies not be able to duplicate the strategy.
d) Average returns be earned by the company.
9. The competitive moves and business approaches a company's management are using
grow the business, attract and please customers, compete successfully, conduct
operations, and achieve the targeted levels of organizational performance is referred to
as its
a) Strategic offensive for becoming a market leader.
b) Long-term strategic direction.
c) Mission statement.
d) Strategy
10. A company achieves sustainable competitive advantage when
a) It is able to increase shareholder value.
b) Sufficient numbers of buyers believe the company has demonstrated a commitment
to environmental sustainability.
c) It is consistently able to achieve both its strategic and financial objectives.
d) an attractive number of buyers have a lasting preference for its products or services
as compared to the offerings of competitors
11. A company's business model
a) Determines whether its strategy will be ethical or not.
b) Is management's storyline for how the strategy will result in achieving sustainable
competitive advantage?
c) Is management's rationale for how the strategy will be a moneymaker—absent the
ability to deliver good profitability, the strategy is not viable and the survival of the
business is in doubt.
d) Identifies how the company plans to outmaneuver and outcompete key rivals and
become a market leader.
e) Sets forth the actions and approaches that it will rely on to earn the best profit
margins in the industry.
12. The most trustworthy signs of a well-managed company are
a) A strong emphasis on offensive strategies rather than defensive strategies.
b) A strategy matched to fast-evolving market conditions and bigger profit margins
than rivals and a steady upward trend in net income.
c) Attractive bottom-line performance and a proven business model.
d) Good strategy and good strategy execution.
13. A competitive advantage
a) Can be permanent if the firm has successfully implemented the strategic
management process.
b) Entails reducing investors' risk to near zero.
c) Can be identified only if it has been unsuccessfully challenged by competitors.
d) Exists when competing firms are unable to find investors.
14. The strategic management process is
a) A set of activities that will assure a sustainable competitive advantage and above-
average returns for the firm.
b) Decision-making activity concerned with a firm's internal resources, capabilities, and
competencies, independent of the conditions in its external environment.
c) A process directed by top-management with input from other stakeholders that
seeks to achieve above-average returns for investors through effective use of the
organization's resources.
d) The full set of commitments, decisions, and actions required for the firm to achieve
above-average returns and strategic competitiveness.
15. Enlist any four attributes for gaining competitive advantage
a) cost leadership
b) Differentiation
c)Defensive strategies
d) strategic alliance

Section-II

Q.2: What are the growth strategies? Describe briefly each strategy with one example at
least.
ANS:
Growth strategy is a plan that we can say that in which companies used to achieve a high
level rank of market share so that business will always be growing towards track. When
growth strategies fall because of irrelevant strategic apply which can destroy the
growth of business.
There are four main strategies:

 Market Penetration
Expand business or market share by offering low prices or advertising or services It
base on your current product. For example, Cars share in Pakistan such as Honda has
12.3% or Suzuki have -47% or Toyota have 7.9% shares.
 Product Development
Is define as making new product in their same market. Company sell his product in
their existing customers and growing the business in the market. For example, Toyota
is Japanizes company. It’s have difficult to sale our product in other countries but
they can survive and sell his product into existing company.
 Market Development
Define as introducing your product into new markets. May be a new city, new state
or even a new country. For example, Microsoft first make windows then making
games and now they make his could computing.
 Diversification
Means offer totally new product into the totally new market. For example, amazon
firstly sell books now they sell all over the products.

Q3: Briefly describe cost leadership with at least two examples.

ANS:
Cost leadership is defining as companies used this strategy to use for increase his efficiencies
or sells and reduce his production costs under the industry average or his competitors. This
mean they tried to find any way to reduce his cost in company so they can easily have
offered a product into a lower price than their competitors. Because of many customer’s
demand to pay low price for goods and services and get good product. Companies always
gain a large customer that becomes the cost leader in the existing industry.
In other way, some customers think that low prices mean low quality product but that’s not
always true. Many companies have a huge success in this role and applying cost leadership
strategies. That’s makes goods products or services.
For example: Aldi have successful business at every point of production and they used a
leadership strategy. As a result, they provide a good product as consumer demand with low
prices.
Another example is, Walmart is the largest company today. They know for his low prices
products. In which workers are paid low payment and they offered low benefit health
insurance. Just like MacDonald offers more good quality because they have very strong
leadership strategy.
 Q.4: What is competitive strategy? You answer should be based on the examples.
ANS:
A competitive strategy is defining as company long term plans. In which company can attract
customers and provide high level services and fulfilling customers’ expectations as well as good
strength of market position. Company can give a superior respect to customers.
There are four main strategies that company can provided. Such as

 Cost leadership
 Differentiation
 Cost focus
 Differentiation Focus
For example: Asus providing high providing performance devices and high performance
graphics. Asus mobiles or laptops are goods for customers because of its performance. And
NVidia have high performance systems with graphics both companies are different but
provided a same performance because they fulfill customers’ needs and demands.