SBL Strategy

Which element of PESTEL covers the effect of changes in interest rates and exchange rates?

• 1 Economic
• 2 Social
• 3 Political
• 4 Legal

In Porter's five forces, the threat of new entrants is reduced by:

• 1 High barriers to entry such as economies of scale
• 2 Easy access to distribution channels
• 3 Low capital requirements
• 4 Undifferentiated products

A firm competes by offering the lowest price in the market through very efficient operations. In Porter's generic strategies this is:

• 1 Focus on a niche
• 2 Stuck in the middle
• 3 Cost leadership
• 4 Differentiation

In the Ansoff matrix, selling new products to new markets is called:

• 1 Market penetration
• 2 Diversification
• 3 Market development
• 4 Product development

In the Boston Consulting Group matrix, a business unit with a high market share in a low growth market is a:

• 1 Cash cow
• 2 Question mark
• 3 Dog
• 4 Star

A company grows by acquiring its supplier. This is:

• 1 Forward vertical integration
• 2 Backward vertical integration
• 3 Horizontal integration
• 4 Conglomerate diversification

A strategic option is assessed as 'suitable' if it:

• 1 Has a positive net present value only
• 2 Can be financed from existing cash
• 3 Fits the strategic position and the opportunities and threats the firm faces
• 4 Is acceptable to all stakeholders

Which of the following is a typical risk of growth through acquisition?

• 1 Lower purchase price than building from scratch
• 2 Culture clash and difficulty integrating the two businesses
• 3 Greater control over the pace of change
• 4 Slower entry into a new market than organic growth