PART 1: From the idea to the business model

Question 1

Segment

Answer 1

customers are not all the same and shall be diveded in homogeneous groups

Question 2

Differentiation

Answer 2

strategy designed to supple a product/service that customer preceive as being different in ways relevant to them

Question 3

Differentiation shall not be

Answer 3

unprofitable

Question 4

Unique Selling Proposition

Answer 4

what we do better than other competitors and what customers want

Question 5

Value proposition –> strategy you should avoid

Answer 5

same benefit for higher price

Question 6

Your value proposition should not…

Answer 6

be easy to copy

Question 7

Value chain

Answer 7

the set of activities to conduct the business to deliver your competitive advantage

Question 8

The 4Ps

Answer 8

product, price, promotion, place

Question 9

7Ps (service)

Answer 9

process, people, physical evidence

Question 10

4Cs

Answer 10

customer value, cost, convenience, communication

Question 11

3Cs

Answer 11

Customers, competitors and companies

Question 12

The 3Cs are used for…

Answer 12

Developing a positioning strategy

Question 13

what is the 15% rule at 3M

Answer 13

3M employees are encouraged to spend 15% of their time on developing new projects

Question 14

Product Life Cycle

Answer 14

introduction, growth, maturity and decline

Question 15

Bad description of services

Answer 15

that “can be stock”

Question 16

Marketing myopia

Answer 16

focusing only on one aspect of the marketing attributes without focusing on what the customer actually wants

Question 17

One example of marketing myopia

Answer 17

Focusing just on quality and not on the actual demand of the customer

Question 18

BGC matrix orders products along relative market share and…

Answer 18

growth rate

Question 19

which is not one of the 4 basic growth strategies as defined in the Ansoff Matrix

Answer 19

• vertical development
• market development
• diversification
• product development
• market penetration

Question 20

What aims market penetration strategy

Answer 20

Increase its market share

Question 21

How does market penetration can be executed

Answer 21

Decreasing prices to attract new customers, increasing promotion and distribution efforts and acquiring a competitor in the same market

Question 22

How does a product development strategy can be executed

Answer 22

Investing in R&D to develop new products, acquiring a competitor’s product and merging resources to create a new product that better meet the needs of existing market and forming strategic partnerships to gain access to each partner’s distribution channels

Question 23

How does market development can be executed

Answer 23

Catering to different customer segment, expanding regionally (domestic market) and expanding internationally (foreign market)

Question 24

What is related diversification

Answer 24

There are potential synergies between existing business and the new product/market

Question 25

What is unrelated diversification

Answer 25

There are no potential synergies between existing business and the new product/market

Question 26

What is vertically integrated diversification

Answer 26

Forward integration is “entering the business of customers” and backward integration is “entering the business of suppliers”

Question 27

What is horizontally integrated diversification

Answer 27

The firm acquires one or more than one business that are in similar business and at the equivalent level of production-marketing chain

Question 28

When Facebokk and Instagram merge, it was a…

Answer 28

horitonzal merger

Question 29

A company produces and sell a high number of diesel cars in Europe although the current trend seems to favor electrical vehicles; in the following SWOT one proposition is not at its correct place

Answer 29

weakness - market…

Question 30

which “force” will lead to higher profitability in an industry

Answer 30

no possible substitute product

Question 31

Michael Porter defines strategical positions such as niche players, industry leaders and the position “stuck in the middle” by establishing a relationship between ROI (return of investment) and

Answer 31

market share

Question 32

Michael Porter’s 3 generic strategies

Answer 32

cost leadership, differentiation and focus (or niche) strategy

Question 33

A blue ocean strategy consists in…

Answer 33

create a new market and make competition irrelevant

Question 34

Cost leadership

Answer 34

focuses on becoming the lowest-cost producer in the industry, achieve economies of scale, cost control and reduction and the goal is to offer products or services at lower prices than competitors while mantaining profitability

Question 35

Peter Drucker once said “corporate cultures eats strategy for breakfast”; this means?

Answer 35

corporate culture can get a company successful although its strategy is noy optimum

Question 36

What is ROE

Answer 36

return on equity

Question 37

Target shall be “SMART”; this acronym does not stand for

Answer 37

• specific
• measurable
• relevant
• time-bound
• arguable

Question 38

What is blue ocean strategy

Answer 38

The metaphorical “red” signifies the blood in the water due to intense competition. Represents existing industries where competition is fierce, and companies compete for a share of the existing market

The metaphorical “blue” signifies calm waters without competition. Represents new, uncontested market space where competition is irrelevant because the market is created rather than fought over

Question 39

What is the most secure payment term for an importer

Answer 39

consignment

Question 40

What does extraterritorial jurisdiction imply?

Answer 40

it is the legal ability of a government to exercise authority beyond its normal boundaries

Question 41

NAFTA was replaced by a new treaty which took effect on July 1st 2020

Answer 41

True, the NAFTA agreement has been replaced by a USMCA

Question 42

What is the competitive market strategy (by P. Kotler)

Answer 42

according to market share: leader/challenger (refers to a company that is actively competing against larger and more dominant players within a specific industry), cooperation and niche