unit 7

Question 1

What is also known as the market penetration strategy?

Answer 1

Concentrated growth.

Question 2

What is involved in expanding the portfolio of the markets the organisation serves?

Answer 2

Market development

Question 3

What internal strategy focuses on
improving and modifying the
organisation’s products and services
to increase sales?

Answer 3

Product development

Question 4

What internal strategy creates new
product life cycles that will make
similar existing products or
services?

Answer 4

Innovation

Question 5

Which internal strategy is typically associated with corporate strategies and growth?

Answer 5

Diversification

Question 6

Which external strategy focuses on gaining control of suppliers, distributors or competitors in a particular industry to enhance the effectiveness and efficiency of the organisation?

Answer 6

Integration

Question 7

Which declining strategy focuses on strengthening the
distinctive competencies of the organisation to
break the downward spiral concerning sales and
profits?

Answer 7

Retrenchment or turnaround

Question 8

Which declining strategy is selling one or two units that
have become liabilities in the portfolio of the organisation due to poor profitability,
which often results from a lack of
expertise or increased competition in a
particular industry?

Answer 8

Divestiture

Question 9

Which declining strategy is selling all the assets of the organisation in an attempt to avoid bankruptcy?

Answer 9

Liquidation