Page 149 - BA1 Integrated Workbook STUDENT 2018

Supplementary objective test questions

CHAPTER 7 – STRATEGIC OPTIONS AND CHOICE

7.1 HER sells hair care products through a number of high street retailers and
supermarkets.

HER has a large share of the hair care market, though its products are similar to
those produced by its rivals. HER believes its greatest strength is in its strong
brand name, which it has created additional demand for its products.

Which of the following correctly identifies the strategic approach being
taken by HER?

A Differentiation

B Cost leadership

C Niche

D Stuck in the middle

7.2 XXX manufactures neon signs for commercial clients. It is currently considering
three main strategies based on Ansoff’s product/market growth framework.

Strategy A involves the sale of its current neon signs to individual consumers for
home use. XXX has noticed a growing fashion for neon signs in homes.

Strategy B would involve XXX increasing the amount of advertising it
undertakes for its neon signs to commercial customers. It is considering
coupling this with price cuts to increase demand.

Strategy C would involve XXX manufacturing neon gases and compounds for
use by chemists. This would require XXX to implement a large number of new
internal processes.

Which of the following options correctly identifies the type of strategy
within Ansoff’s matrix that has NOT been considered by XXX?

A Product development

B Market development

C Diversification

D Market penetration

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