11) Dynotrix Motors is a large car-manufacturing company. The company purchases raw materials from many small-sized sellers across the globe. In this case, Dynotrix Motors is characterized by ________.
A) very low threat of substitute products
B) high bargaining power over its suppliers
C) very low threat of new entrants in the market
D) very high bargaining power over its customers
12) I-scream-4 Ice Cream recently faced competition against their flagship brand of “Orange peel ice cream.” The competitor made significant in-roads into this market by offering three varieties of “Orange peel ice cream.” I-scream-4 Ice Cream decided to counter this threat by introducing five new varieties of ice creams. Which competitive strategy is I-scream-4 implementing?
A) cost leadership
B) product differentiation
C) cost differentiation in the segment
D) service focus
13) An automobile company decides to improve the quality of all its products and bring more variety into its product line. The company has decided to adopt ________.
A) focused cost leadership
B) industry-wide differentiation
C) industry-wide cost leadership
D) focused differentiation
14) Focused differentiation occurs when ________.
A) a better product is provided within an industry segment
B) there is limited competition in an industry
C) the customers are highly price-sensitive
D) product quality improves across an entire industry
15) Focused cost leadership is observed when a product has the lowest cost ________.
A) within an industry segment
B) across the product range offered by a company
C) within an industry
D) within the supply chain of a company
16) The difference between the value that an activity generates and the cost of the activity is called the ________.
17) Porter defined value as the ________.
A) amount of money that a customer is willing to pay for an offering
B) extent of after-sale service provided to customers
C) perceived satisfaction of the customers and sellers after a transaction
D) actual money exchanged in return of a product/service
18) Identify the activity in the value chain that involves receiving and handling of raw materials and other inputs to the product.
A) inbound logistics
D) outbound logistics
19) The difference between the total value added and the total costs incurred is called the ________ of the value chain.
A) actual value
B) total margin
C) total revenue
D) gross turnover
20) A retail company sells products such as agricultural produce and consumer products. The company procures materials from farmers and local producers. This process of obtaining the inputs needed for a business is called ________.
A) outbound logistics
B) inbound logistics
D) internal marketing