Business Strategies Unit 3 Quiz
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Questions and Answers

What should an organization do if the economy is booming?

  • Focus on reducing the carbon footprint
  • Analyze environmental hazards
  • Invest in growth due to higher demand (correct)
  • Reduce prices to match competitors

    • How does environmental factors influence consumer behavior?

  • They dictate the need for technological upgrades
  • They affect the pricing strategy of products
  • They can limit consumer access due to natural disasters (correct)
  • They enhance product marketing techniques

    • What does Porter’s Five Forces model address?

  • Customer satisfaction metrics
  • Technological advancements in production
  • External forces influencing industry competition (correct)
  • The internal resources of an organization

    • In the BCG Matrix, which category represents products that require more marketing despite having low income?

    <p>Question Marks (A)</p> Signup and view all the answers

    What is a major advantage of using the SWOT analysis according to Dr. Morrison?

    <p>It is simple and easy to apply (B)</p> Signup and view all the answers

    What should organizations do if faced with a poor economy?

    <p>Make products cheaper to accommodate consumers (C)</p> Signup and view all the answers

    What describes 'Stars' in the BCG Matrix?

    <p>Products that are both growing and generating high income (B)</p> Signup and view all the answers

    Which factor is NOT a part of Porter's Five Forces model?

    <p>Technological determinism (A)</p> Signup and view all the answers

    What is one of the strengths of DSC compared to Coca Cola?

    <p>DSC follows isomorphism. (D)</p> Signup and view all the answers

    What health-related weakness does Coca Cola face?

    <p>Health problems due to soft drink consumption. (A)</p> Signup and view all the answers

    Which opportunity does DSC have in its market?

    <p>Low competition in the international school sector. (B)</p> Signup and view all the answers

    What is a significant threat to DSC's future?

    <p>Low birth rate affecting student enrollment. (B)</p> Signup and view all the answers

    How does SWOT analysis benefit Coca Cola financially?

    <p>By allocating resources for product quality improvements. (D)</p> Signup and view all the answers

    What is a drawback of using SWOT analysis for Coca Cola?

    <p>It can lead to too many conflicting opinions. (D)</p> Signup and view all the answers

    What factor makes SWOT analysis subjective in a large company like Coca Cola?

    <p>Every staff member has a different perspective. (B)</p> Signup and view all the answers

    How did Coca Cola respond to the rise in popularity of Oreos?

    <p>By collaborating with Oreo for a new product. (C)</p> Signup and view all the answers

    What is a major disadvantage of using a SWOT analysis as mentioned in the content?

    <p>It requires excessive time to conduct. (A)</p> Signup and view all the answers

    What specific opportunity did DSC realize from the SWOT analysis?

    <p>The influx of mainlanders offers a chance for growth. (A)</p> Signup and view all the answers

    Which intrinsic factor is discussed as influential for DSC's decision-making?

    <p>Bilingual strength of the institution. (C)</p> Signup and view all the answers

    Why did the individual feel the meeting regarding SWOT was not effective?

    <p>There was too much time spent on prioritizing external factors. (D)</p> Signup and view all the answers

    What subjective aspect of the analysis was highlighted as a potential drawback?

    <p>Personal biases can affect objective assessment. (D)</p> Signup and view all the answers

    What does the SWOT analysis fail to provide, according to the content?

    <p>A systematic approach to prioritization of factors. (A)</p> Signup and view all the answers

    What external threat does DSC face as identified in the content?

    <p>More international schools entering the market. (C)</p> Signup and view all the answers

    How does the individual view the relationship between SWOT analysis and practical implementation?

    <p>Time spent on analysis detracts from actual work. (B)</p> Signup and view all the answers

    What are the two primary ways to compete according to Porter's Generic Strategy?

    <p>Differentiation and Cost Leadership (A)</p> Signup and view all the answers

    Which of the following is NOT a component of the PEEST analysis?

    <p>Financial (A)</p> Signup and view all the answers

    What is the purpose of a SWOT analysis?

    <p>To assess both internal and external factors that affect an organization. (B)</p> Signup and view all the answers

    Which of these is an example of a focused cost leadership strategy?

    <p>A discount airline offering low fares on a limited number of routes. (D)</p> Signup and view all the answers

    Which of the following is considered an internal factor in a SWOT analysis?

    <p>A company's strong brand reputation. (C)</p> Signup and view all the answers

    Which of the PEEST factors focuses on the laws and leadership within a country?

    <p>Political (A)</p> Signup and view all the answers

    How does the SWOT analysis help an organization adapt to its demands?

    <p>By identifying internal strengths and weaknesses and external opportunities and threats. (B)</p> Signup and view all the answers

    What is the key difference between a focused differentiation and a differentiation strategy?

    <p>Focused differentiation targets a specific market segment while differentiation targets a broader market. (C)</p> Signup and view all the answers

    Flashcards

    SWOT Analysis

    A strategic tool that identifies strengths, weaknesses, opportunities, and threats of an organization.

    Internal Factors

    Elements within an organization that impact its performance, such as resources and capabilities.

    External Factors

    Elements outside an organization that affect its operations, like market trends and laws.

    Porter's Generic Strategy

    Framework for companies to gain a competitive advantage through differentiation or cost leadership.

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    Differentiation Strategy

    Creating unique products to stand out in the market and attract consumers.

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    Cost Leadership Strategy

    Offering products at a lower price to attract a broad range of customers.

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    PEEST Analysis

    Framework for assessing external environmental factors: Political, Economic, Environmental, Social, Technological.

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    Political Factors

    Influences from government laws and policies affecting organizations.

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    Economic boom

    A period of significant economic growth that increases demand for goods and services.

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    Technological advancement

    The level of innovation and technology available in a country, affecting production efficiency.

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    Environmental factors

    Elements like climate and natural disasters that affect consumer habits and organizational operations.

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    Carbon footprint

    The total greenhouse gas emissions caused directly and indirectly by an organization.

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    Porter’s Five Forces

    A model analyzing five competitive forces that shape an industry’s strategy.

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    BCG Matrix

    A tool that categorizes products based on market growth and market share to aid in strategic decisions.

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    Cash cows

    Products with high market share but low growth potential; they generate steady income.

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    Bilingual Strength

    The advantage gained from being fluent in two languages.

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    Intrinsic Factors

    Internal elements that affect an organization, like structure and culture.

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    Extrinsic Factors

    External elements impacting an organization, such as competition and market trends.

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    Threats to DSC

    Challenges like the rise in international schools and declining student birth rates.

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    Opportunities for DSC

    Potential advantages such as an influx of mainland students.

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    Lack of Prioritization

    The difficulty in deciding which factors to focus on first during analysis.

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    Subjective Analysis

    Personal opinions impacting the reliability of assessments in SWOT.

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    Isomorphism

    A principle where organizations adapt similar characteristics or structures to fit their environment.

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    Coca Cola's Secret Recipe

    Coca Cola's unique formulation that differentiates it from competitors like Pepsi.

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    Health Concerns of Soft Drinks

    Soft drinks, like Coca Cola, can lead to health issues for consumers.

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    DSC's Market Advantage

    DSC benefits from having fewer competitors as an international school in Hong Kong.

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    Threat of Low Birth Rate

    The decreasing birth rate in Hong Kong poses a risk of fewer students for DSC.

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    SWOT's Cost Advantage for Coca Cola

    Using SWOT can lower Coca Cola's budget and enhance product quality.

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    Subjectivity in SWOT Analysis

    Different opinions among staff can lead to subjective interpretations in SWOT analysis.

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    Study Notes

    Culminating Scrapbook Assignment (Unit 3)

    • Assignment submitted by Otis
    • Part of Unit 3

    SWOT Analysis

    • Two factors affect organizations: internal and external
    • Internal factors are controllable (e.g., decisions)
    • External factors are uncontrollable (e.g., market trends)
    • Strengths, weaknesses, opportunities, and threats (SWOT) provide a comprehensive view of an organization.
    • Internal factors are strengths and weaknesses
    • External factors are opportunities and threats
    • SWOT analysis helps organizations adapt to demands.

    Porter's Generic Strategy

    • Companies compete in two main ways: differentiation (unique product) and cost leadership (cheaper product).
    • Within each approach are focused and non-focused strategies
    • Focused strategies target specific groups.
    • Non-focused strategies target broader markets.
    • Four resulting strategies are cost leadership (low cost, broad market), differentiation (broad market, differentiated product), focused cost leadership (low cost, narrow market), and focused differentiation (differentiated, narrow market).

    P.E.E.S.T. Analysis

    • External factors affecting a global or national scale
    • Acronym for Political, Economic, Environmental, Social, and Technological factors
    • Political factors involve laws and leadership specifics
    • Economic factors encompass the overall state of the economy.
    • Environmental factors consider climate, geological activities, and environmental attitudes.
    • Social factors cover cultural aspects.
    • Technological factors reflect advancements.

    Porter's Five Forces

    • Five external forces impacting organizations.
    • These factors are critical in highly competitive industries, where there's less competition, few substitutes, & lower bargaining power among suppliers and customers.

    BCG Matrix

    • A grid showing product growth rate and market share
    • Helps organizations decide which products to focus on.
    • Four categories: Stars (high growth, high market share), Cash cows (low growth, high market share), Question marks (high growth, low market share), and Dogs (low growth, low market share).
    • Different strategies tailored to each product category are applicable.

    Advantages and Disadvantages of SWOT

    • Dr. Morrison primarily uses SWOT analysis
    • Advantage: Simple to apply, Comprehensive, One tool for multiple aspects.
    • Disadvantages: Lack of prioritization, Time-consuming, analysis is subjective, uncertain decisions.

    Coca-Cola vs. DSC

    • Coca-Cola Strengths: Variety of products, 43% market share, substantial brand recognition, secret recipes.
    • Coca-Cola Weaknesses: Difficulty keeping up with health concerns, substitution for sugar.
    • Coca-Cola Threats: Competitors & negative media.
    • DSC Strengths: Focus on unique aspects.
    • DSC Weaknesses: External factors and limited competition
    • DSC Opportunities: Adapting to market needs
    • DSC Threats: Population decline.

    Effectiveness of SWOT

    • Low Cost Approach: Allocate resources efficiently
    • Collaborative Opportunities: Creating new products to capitalize on trends.
    • Subjectivity Consideration: Recognize opinions' potential variations during analysis.
    • Lack of Clear Definition: acknowledge potential issue of uncertainty in analysis outcomes.
    • Analysis effectiveness: dependent on how clearly defined the goals are.

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    Culminating Scrapbook Assignment (Unit 3) PDF

    Description

    Test your understanding of SWOT analysis and Porter's generic strategy in the context of business management. This quiz covers internal and external factors affecting organizations and the competitive strategies companies use. Dive into the intricacies of organizational adaptation and market positioning.

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