Final Quiz 1

20/20

Weaknesses stands for a major unfavorable situation in the firm’s environment or an

impediment to the firm’s current and/or desired future position.

Select one:

False
Its four-quadrant framework indicates whether aggressive, conservative, defensive, or
competitive strategies are most appropriate for a given organization.

Answer: Strategic Position and Action Evaluation Matrix

In this, some investments may be justified but major investments should be made
with extreme caution.

Proceed with care domain

Need very little capital expenditure but return high levels of cash income. Can be
used to finance the stars.

Answer:  cash cow

Because of their low market share these businesses are often expected to have a
higher cost structure than industry leaders. What is this?

Answer:  DOGS
Identification of key strengths and weaknesses of the firm helps in narrowing down
the choice of alternatives and choosing a strategy.

Select one:

True

This promise high returns so reinvest heavily to defend market share and position.

Answer:  stars

Investment should be made to allow the product to grow with the market.

Growth domain

Johnson and Scholes three ways in strategies selection.

Answer: Selection against Objectives, Referral to a Higher Authority,
Partial Implementation
In these circumstances the company should certainly consider making available
resources in excess of what the product can generate.

Select one:

Try harder domain

It refers to the projected rate of sales growth for the market that a particular business
caters to.

Answer: Market growth rate

People know that power relationships are a key reality in organizational life.
In many enterprises, if the top manager begins to advocate one alternative,
the decision to choose it is soon unanimous.

Managerial Power Relationship

Have a potential to be stars if successfully developed.

Answer: Question mark
It means the ratio of the business’s market share divided by the market share of the
largest competitor in that market and provides a basis for comparing the relative
strengths of different businesses in the portfolio.

Answer: Relative competitive position

It is a tool that can be used to determine what priorities should be given in the
product portfolio of a business unit.

Answer: BGC Matrix

It can be defined as a group of techniques that assist strategists in making strategic
decisions regarding individual products or businesses in a firm’s portfolio.

Answer: Corporate Portfolio Analysis

In the Directional Policy Matrix, the vertical axis is defined as

Answer: Market Attractiveness

In the Directional Policy Matrix, the horizontal axis is defined as

Competitive Strength