Question

3. What term describes what a firm does well relative to its competitors?

A. Distinctive competence

B. Cost leadership

C. Related diversification

D. Unrelated diversification

4. What is meant by focus?

A. A course of action for implementing strategic plans and achieving strategic goals

B. A business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price

C. The product life cycle stage marked by decreases in the product’s market share

D. A business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment

5. Goals that are developed for long periods of time, usually five or more years, and that are central to all of the organization’s planning and activities are

A. tactical goals.

B. operational goals.

C. marketing goals.

D. strategic goals.

Answer 1

Ans3) Correct answer -Distinctive Competence.

• Explanation- Distinctive competence points to some aspects of a company that it does better than its rivals. As a result, this particular company has a competitive advantage as compared to others in the market.

Ans4) Correct answer - a business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment.

• Explanation-A focus strategy is usually applied where the company knows its 'Segment'. The segment here refers to the target audience or a niche market. It then produces products and services and focuses on marketing its products in that particular segment to meet the requirements of that segment.

Ans5) Correct answer - Strategic goals.

• Explanation-Strategic goals are the financial and non-financial goals the company tries to accomplish over a specific period. This period is usually the next three to five years.