What are the three generic strategies proposed by Michael Porter?
A) Innovation, Quality, Service
B) Cost Leadership, Differentiation, Focus
C) Market Penetration, Product Development, Diversification
D) Vertical Integration, Horizontal Integration, Diversification
Answer: B) Cost Leadership, Differentiation, Focus

Which generic strategy focuses on becoming the lowest-cost producer in the industry?
A) Differentiation
B) Focus
C) Cost Leadership
D) Market Development
Answer: C) Cost Leadership

Which company is a classic example of a cost leadership strategy?
A) Apple
B) Walmart
C) Rolex
D) Tesla
Answer: B) Walmart

What is the primary goal of a differentiation strategy?
A) To reduce costs
B) To target a niche market
C) To offer unique products or services
D) To expand globally
Answer: C) To offer unique products or services

Which of the following is an example of a differentiation strategy?
A) Walmart
B) Apple
C) McDonald’s
D) IKEA
Answer: B) Apple

What is the focus strategy also known as?
A) Niche strategy
B) Broad market strategy
C) Cost minimization strategy
D) Diversification strategy
Answer: A) Niche strategy

Which generic strategy targets a specific market segment?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Penetration
Answer: C) Focus

Which of the following is an example of a focus strategy?
A) Walmart
B) Rolex
C) Amazon
D) Coca-Cola
Answer: B) Rolex

What is a risk associated with the cost leadership strategy?
A) High production costs
B) Price wars
C) Lack of innovation
D) Limited market reach
Answer: B) Price wars

What is a risk associated with the differentiation strategy?
A) Imitation by competitors
B) High operational costs
C) Limited customer base
D) Lack of brand recognition
Answer: A) Imitation by competitors

Which generic strategy requires continuous innovation?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Development
Answer: B) Differentiation

Which generic strategy is most likely to involve economies of scale?
A) Differentiation
B) Focus
C) Cost Leadership
D) Diversification
Answer: C) Cost Leadership

What is a key requirement for a successful focus strategy?
A) Broad market appeal
B) Deep understanding of a niche market
C) Low production costs
D) High brand recognition
Answer: B) Deep understanding of a niche market

Which generic strategy is Tesla primarily using?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Penetration
Answer: B) Differentiation

Which of the following is NOT a generic strategy?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: D) Diversification

What is the main advantage of a cost leadership strategy?
A) High profit margins
B) Ability to charge premium prices
C) Competitive pricing
D) Strong brand loyalty
Answer: C) Competitive pricing

What is the main advantage of a differentiation strategy?
A) Lower production costs
B) Ability to charge premium prices
C) Broad market reach
D) Economies of scale
Answer: B) Ability to charge premium prices

What is the main advantage of a focus strategy?
A) High market share
B) Strong customer loyalty in a niche market
C) Low operational costs
D) Global presence
Answer: B) Strong customer loyalty in a niche market

Which generic strategy is most likely to involve heavy investment in R&D?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Development
Answer: B) Differentiation

Which generic strategy is most likely to involve outsourcing production?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: A) Cost Leadership

Which of the following is a risk of the focus strategy?
A) High competition in the niche market
B) Lack of innovation
C) High production costs
D) Limited customer base
Answer: D) Limited customer base

Which generic strategy is most likely to involve premium pricing?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Penetration
Answer: B) Differentiation

Which generic strategy is most likely to involve mass production?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: A) Cost Leadership

Which generic strategy is most likely to involve customization?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Development
Answer: C) Focus

Which of the following is a key success factor for cost leadership?
A) High product quality
B) Efficient operations
C) Strong brand image
D) Niche market focus
Answer: B) Efficient operations

Which of the following is a key success factor for differentiation?
A) Low production costs
B) Unique product features
C) Broad market reach
D) Economies of scale
Answer: B) Unique product features

Which of the following is a key success factor for focus?
A) High market share
B) Deep understanding of a niche market
C) Low operational costs
D) Global presence
Answer: B) Deep understanding of a niche market

Which generic strategy is most likely to involve brand loyalty?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Penetration
Answer: B) Differentiation

Which generic strategy is most likely to involve customer segmentation?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: C) Focus

Which generic strategy is most likely to involve price competition?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Development
Answer: A) Cost Leadership

Which generic strategy is most likely to involve innovation?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: B) Differentiation

Which generic strategy is most likely to involve a narrow target market?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Penetration
Answer: C) Focus

Which generic strategy is most likely to involve high customer satisfaction?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: B) Differentiation

Which generic strategy is most likely to involve low pricing?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Development
Answer: A) Cost Leadership

Which generic strategy is most likely to involve a unique value proposition?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: B) Differentiation

Which generic strategy is most likely to involve a broad target market?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: A) Cost Leadership

Which generic strategy is most likely to involve a premium brand image?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Penetration
Answer: B) Differentiation

Which generic strategy is most likely to involve a niche customer base?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: C) Focus

Which generic strategy is most likely to involve high operational efficiency?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Development
Answer: A) Cost Leadership

Which generic strategy is most likely to involve high R&D investment?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: B) Differentiation

Which generic strategy is most likely to involve economies of scale?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Penetration
Answer: A) Cost Leadership

Which generic strategy is most likely to involve a unique selling proposition?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: B) Differentiation

Which generic strategy is most likely to involve a narrow product line?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Development
Answer: C) Focus

Which generic strategy is most likely to involve high customer loyalty?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: B) Differentiation

Which generic strategy is most likely to involve low-cost production?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Penetration
Answer: A) Cost Leadership

Which generic strategy is most likely to involve a broad product range?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: B) Differentiation

Which generic strategy is most likely to involve a specific geographic market?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Development
Answer: C) Focus

Which generic strategy is most likely to involve high brand recognition?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: B) Differentiation

Which generic strategy is most likely to involve low profit margins?
A) Cost Leadership
B) Differentiation
C) Focus
D) Market Penetration
Answer: A) Cost Leadership

Which generic strategy is most likely to involve a unique customer experience?
A) Cost Leadership
B) Differentiation
C) Focus
D) Diversification
Answer: B) Differentiation