MGMT 408 TEST 1 QUESTIONS | VERIFIED
ACCURATE ANSWERS | 2026
What is a cluster of industry rivals that employ similar competitive approaches, have
product offerings that appeal to similar types of buyers, and thus occupy similar market
positions? - Answers -Strategic group
What are the four types of competitors in the Matrix? - Answers -Maverick, Clone, off-
radar, parallel
What are the strategy elements, product attributes, resource strengths, competitive
capabilities, and market achievements with the greatest impact on future competitive
success in the marketplace? - Answers -Key or critical success factors
What strategy puts emphasis on EXTERNAL factors and the Structure-Conduct-
Performance Paradigm? - Answers -The Industrial Organization view
What strategy puts emphasis on INTERNAL firm resources and the VRIO framework? -
Answers -The Resource-based view
Many buyers and sellers, undifferentiated products, perfect information of the market -
Answers -Pure Competition
Many buyers and sellers, fragmented market, differentiated products, imperfect
information of the market - Answers -Monopolistic Competition
Few sellers, intense rivalry, "game theory" - Answers -Oligopoly
One seller - Answers -Monopoly
What are the four categories of Grand Strategies? - Answers -Integration, intensive,
diversification, defensive
Opening or acquiring distributor or retail establishments - Answers -forward vertical
integration
acquiring ownership or expansion into supply chain - Answers -backward vertical
integration
merging with or acquiring competitors (usually classified as a merger or acquisition) -
Answers -horizontal integration
, seeking increased market share for present products or services in present markets
through greater marketing efforts - Answers -market penetration
introducing present products or services into new geographic areas - Answers -market
development
seeking increased sales by improving present products or services or developing new
ones - Answers -product development
adding new but related products or services - Answers -related (concentric)
diversification
adding new, unrelated products or services - Answers -unrelated (conglomerate)
diversification
regrouping through cost and asset reduction to reverse declining sales and profit -
Answers -retrenchment
selling a division or part of an organization - Answers -divestiture
selling all of a company's assets, in parts, for their tangible worth - Answers -Liquidation
A company uses outside suppliers to provide services that it could perform itself (e.g. a
firm might contract a professional cleaning company to come in on a regular basis to
clean offices) - Answers -Outsourcing
When a shoe manufacturer opens a company-owned retail store, it is an example of -
Answers -forward vertical integration
marketing efforts to increase sales of existing products in existing markets in which
concentration (intensive) grand strategy? - Answers -Market penetration
exporting products made in the US to new foreign markets is a basic example of which
concentration (intensive) strategy? - Answers -Market development
which generic strategy is usually associated with the discount retailers such as Wal-
Mart? - Answers -Cost leadership strategy
A generic strategy aimed at emphasizing the uniqueness or superiority of products and
services is? - Answers -differentiation strategy
A sign in a store window reads, "going out of business-everything must go" is probably
an example of which grand strategy? - Answers -Liquidation
If Microsoft bought a chain of food retailers such as Piggly-Wiggly, it would be an
example of a - Answers -conglomerate diversification
ACCURATE ANSWERS | 2026
What is a cluster of industry rivals that employ similar competitive approaches, have
product offerings that appeal to similar types of buyers, and thus occupy similar market
positions? - Answers -Strategic group
What are the four types of competitors in the Matrix? - Answers -Maverick, Clone, off-
radar, parallel
What are the strategy elements, product attributes, resource strengths, competitive
capabilities, and market achievements with the greatest impact on future competitive
success in the marketplace? - Answers -Key or critical success factors
What strategy puts emphasis on EXTERNAL factors and the Structure-Conduct-
Performance Paradigm? - Answers -The Industrial Organization view
What strategy puts emphasis on INTERNAL firm resources and the VRIO framework? -
Answers -The Resource-based view
Many buyers and sellers, undifferentiated products, perfect information of the market -
Answers -Pure Competition
Many buyers and sellers, fragmented market, differentiated products, imperfect
information of the market - Answers -Monopolistic Competition
Few sellers, intense rivalry, "game theory" - Answers -Oligopoly
One seller - Answers -Monopoly
What are the four categories of Grand Strategies? - Answers -Integration, intensive,
diversification, defensive
Opening or acquiring distributor or retail establishments - Answers -forward vertical
integration
acquiring ownership or expansion into supply chain - Answers -backward vertical
integration
merging with or acquiring competitors (usually classified as a merger or acquisition) -
Answers -horizontal integration
, seeking increased market share for present products or services in present markets
through greater marketing efforts - Answers -market penetration
introducing present products or services into new geographic areas - Answers -market
development
seeking increased sales by improving present products or services or developing new
ones - Answers -product development
adding new but related products or services - Answers -related (concentric)
diversification
adding new, unrelated products or services - Answers -unrelated (conglomerate)
diversification
regrouping through cost and asset reduction to reverse declining sales and profit -
Answers -retrenchment
selling a division or part of an organization - Answers -divestiture
selling all of a company's assets, in parts, for their tangible worth - Answers -Liquidation
A company uses outside suppliers to provide services that it could perform itself (e.g. a
firm might contract a professional cleaning company to come in on a regular basis to
clean offices) - Answers -Outsourcing
When a shoe manufacturer opens a company-owned retail store, it is an example of -
Answers -forward vertical integration
marketing efforts to increase sales of existing products in existing markets in which
concentration (intensive) grand strategy? - Answers -Market penetration
exporting products made in the US to new foreign markets is a basic example of which
concentration (intensive) strategy? - Answers -Market development
which generic strategy is usually associated with the discount retailers such as Wal-
Mart? - Answers -Cost leadership strategy
A generic strategy aimed at emphasizing the uniqueness or superiority of products and
services is? - Answers -differentiation strategy
A sign in a store window reads, "going out of business-everything must go" is probably
an example of which grand strategy? - Answers -Liquidation
If Microsoft bought a chain of food retailers such as Piggly-Wiggly, it would be an
example of a - Answers -conglomerate diversification
