Strategy Formulation and Business Level Strategy Quiz

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Questions and Answers

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 Signup and view all the answers

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. Signup and view all the answers

What is the process of making among alternatives that are more likely to gain the desired profit objective called?

The development of strategy Signup and view all the answers

What is the process of clustering customers into different individuals and groups with similar needs and wants?

Market segmentation Signup and view all the answers

What are some of the factors considered in demographic segmentation?

Age, income, gender Signup and view all the answers

What are the strategies to satisfy customer needs mentioned in the text?

Continuous innovation, creating superior products, and satisfying limitless customer needs Signup and view all the answers

What is the age range of Generation X as mentioned in the text?

Between 40 to 50 years old Signup and view all the answers

In what way do top level executives and line managers contribute to understanding customer needs?

By recognizing and understanding the needs of the customers Signup and view all the answers

What is the aim of identifying the target customers?

To enter specific segments or groups of customers and understand their population and buying activity Signup and view all the answers

What factors are considered in socioeconomic segmentation?

Social class, stage in the family life cycle, employment classification Signup and view all the answers

What are the contributory factors in the changing customer needs and wants?

Higher standards of education and literacy Signup and view all the answers

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 Signup and view all the answers

What is the role of innovation in satisfying customer needs?

Innovation and adding new features sustain continuous patronage Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

The External environment is saddled with opportunities and threats and identifying them develop corporate leadership’s awareness of their proposed plans and ______

actions Signup and view all the answers

Strategic goals will affect the degree of competitive advantage in the achievement of the above average return on ______

investment Signup and view all the answers

The choice is important as there exists an established link between the firm’s strategy and the long-term ______ goals

performance Signup and view all the answers

The firm’s specific strategy is aimed at the desired outcome in terms of market share and ______

profit Signup and view all the answers

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 Signup and view all the answers

Customers want products that are reasonably priced Signup and view all the answers

Customers constantly seek new customers and satisfy the needs of their existing clientele Signup and view all the answers

The higher standards of education and literacy are contributory factors in the changing customer needs and wants Signup and view all the answers

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 Signup and view all the answers

Customer satisfaction is limitless, and the company must always seek to satisfy customer needs and wants. Signup and view all the answers

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. Signup and view all the answers

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. Signup and view all the answers

More students are now use erasable ball pen inks for more convenient changes in the rest paper or during not taking. Signup and view all the answers

This is very true in electronic communications and the car industry where firms are competing for innovative Signup and view all the answers

Study Notes

Strategic Development & Customer Needs

Business Level Strategy defines the industry and product market segment a firm chooses to compete in.
The strategic development process involves top executives & line managers making choices to achieve desired profit objectives.
The external environment provides opportunities and threats, informing strategic planning and decision-making.
Strategic goals influence the firm's ability to achieve above-average return on investment.
Long-term performance goals are linked to a firm's specific strategy.
A firm's strategy aims for desired outcomes in terms of market share and profitability.
Effective strategy development considers market and global economic factors.

Identifying Target Customers

Target customers refer to specific customer segments a firm intends to enter.
Market segmentation groups customers based on similar needs and wants.

Understanding Customer Needs and Wants

Demographic segmentation examines factors like age, gender, income, education, and location.
Generation X refers to individuals born between 1965 and 1980.
Socioeconomic segmentation considers factors like income, occupation, and social class.
Top executives and line managers contribute to understanding customer needs through market research, analysis, and customer feedback.
Identifying target customers enables firms to tailor products and services to meet specific needs.
Customer needs and wants are influenced by factors like:
- Demographics
- Socioeconomic factors
- Technological advancements
- Cultural trends
- Competition
Customer wants mentioned in the text may include:
- Quality products
- Competitive prices
- Excellent customer service
- Convenience
- Innovation
Innovation plays a crucial role in satisfying customer needs by introducing new products, features, and solutions.

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Description

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.