32 Questions
What is the process of deciding what industry to compete in and the kind of product market segment that will be most attractive to the firm called?
Business level strategy
How does the participative system in drawing the strategy benefit the organization?
It makes people in the organization aware of the probable actions and plans that will be agreed upon.
What is the link between the firm’s strategy and the long-term performance goals?
There exists an established link between the firm’s strategy and the long-term performance goals.
What affects the degree of competitive advantage in the achievement of above-average return on investment?
Strategic goals
What does the internal environment and external environment contribute to in the strategic development process?
The internal and external environment contribute to the strategic development process.
What is the process of making among alternatives that are more likely to gain the desired profit objective called?
The development of strategy
What is the process of clustering customers into different individuals and groups with similar needs and wants?
Market segmentation
What are some of the factors considered in demographic segmentation?
Age, income, gender
What are the strategies to satisfy customer needs mentioned in the text?
Continuous innovation, creating superior products, and satisfying limitless customer needs
What is the age range of Generation X as mentioned in the text?
Between 40 to 50 years old
In what way do top level executives and line managers contribute to understanding customer needs?
By recognizing and understanding the needs of the customers
What is the aim of identifying the target customers?
To enter specific segments or groups of customers and understand their population and buying activity
What factors are considered in socioeconomic segmentation?
Social class, stage in the family life cycle, employment classification
What are the contributory factors in the changing customer needs and wants?
Higher standards of education and literacy
What are some of the customer wants mentioned in the text?
Reasonably priced products, new customers, and products that create value for survival or emotional satisfaction
What is the role of innovation in satisfying customer needs?
Innovation and adding new features sustain continuous patronage
Business level strategy is the process of deciding what industry to compete and the kind of product market segment that will be most attractive to the ______
firm
The development of strategy is the making of top executives and line managers by making among alternatives that are more likely to gain the desired ______ objective
profit
The External environment is saddled with opportunities and threats and identifying them develop corporate leadership’s awareness of their proposed plans and ______
actions
Strategic goals will affect the degree of competitive advantage in the achievement of the above average return on ______
investment
The choice is important as there exists an established link between the firm’s strategy and the long-term ______ goals
performance
The firm’s specific strategy is aimed at the desired outcome in terms of market share and ______
profit
The formulation of effective strategy encompasses many variables including markets, and the worldwide economic situation as they affect business operation in general. 5 IDENTIFICATION OF CUSTOMERS 1. THE TARGET CUSTOMERS This refers to the specific segments or group of customers that the firm intends to enter and the richness of the segments in terms of population and their activity to buy the products. Market segmentation is the process of clustering customers into different individuals and groups with similar needs and wants. 6 IDENTIFICATION OF CUSTOMERS 2. The Customers’ Needs and Wants
Buy products that create value to them for survival or emotional satisfaction
Customers want products that are reasonably priced
Customers constantly seek new customers and satisfy the needs of their existing clientele
The higher standards of education and literacy are contributory factors in the changing customer needs and wants
Top level executives and line managers have a role in recognizing and understanding the needs of the customers. Innovation and adding new features will sustain continuous patronage
Customer satisfaction is limitless, and the company must always seek to satisfy customer needs and wants.
The new or innovative product must be similar or more superior to the existing product in the market in order to switch the customers’ preference and gain greater market share.
Fountain pens can into being, then used by students and executives for decades until the various types of ball pen arrived for a more convenient use and at an affordable price to the consumers.
More students are now use erasable ball pen inks for more convenient changes in the rest paper or during not taking.
This is very true in electronic communications and the car industry where firms are competing for innovative
Test your knowledge on strategy formulation and business level strategy development process. This quiz covers the internal and external environment analysis, strategic decision-making, and participative system in strategy development.
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