Strategic Analysis MCQ Quiz in தமிழ் - Objective Question with Answer for Strategic Analysis - இலவச PDF ஐப் பதிவிறக்கவும்

The correct answer is 

C) To create and offer new products to existing markets

Key Points Choosing product development as a growth strategy involves creating and introducing new products or services to existing markets. Here are the details explaining why a company might opt for this strategy:

1. Market Expansion:

   • Introducing new products to existing markets allows the company to leverage its existing customer base. This can be an effective way to grow sales and capture additional market share.

2. Customer Retention:

   • Offering new and innovative products to current customers can enhance customer loyalty. It gives existing customers more reasons to continue doing business with the company, reducing the risk of losing them to competitors.

3. Competitive Advantage:

   • Product development enables a company to stay ahead of the competition by offering unique and differentiated products. This can be a source of competitive advantage, making it more challenging for competitors to mimic or replicate.

4. Revenue Diversification:

   • By introducing new products, a company can diversify its revenue streams. Relying on a single product or service can expose a business to risks, and having a diverse product portfolio helps mitigate these risks.

5. Utilizing Existing Infrastructure:

   • Leveraging existing distribution channels, manufacturing capabilities, and marketing infrastructure can result in cost efficiencies when introducing new products. This is particularly beneficial when compared to the costs associated with entering entirely new markets.

6. Responding to Market Trends:

   • Markets are dynamic, and consumer preferences can change. Product development allows a company to adapt to evolving trends and meet the changing needs and demands of its target audience.

7. Brand Image Enhancement:

   • Introducing innovative and high-quality products can enhance the company's overall brand image. It portrays the company as forward-thinking and committed to providing value to its customers.

8. Increased Revenue Potential:

   • New products often come with the potential for higher profit margins, especially if they address unmet needs in the market or offer superior features compared to existing offerings.

The correct answer is Increasing market share in existing markets.

Key Points A market penetration strategy is focused on increasing the market share of existing products or services in existing markets. The primary objective is to capture a larger portion of the current market by selling more of the existing products or services to the current customer base or by attracting new customers within the same market.

Key characteristics and details of a market penetration strategy include:

Existing Products:

The strategy involves selling existing products or services in the current market.
Existing Markets:

The focus is on the markets where the company is already operating. This could be a specific geographical region, demographic group, or industry segment.
Increasing Sales:

The main goal is to boost sales of current products within the current market.
Competitive Pricing and Promotions:

Companies may use tactics such as competitive pricing, discounts, promotions, or advertising to attract more customers and increase sales.
Customer Retention and Loyalty Programs:

Encouraging repeat business from existing customers is a common aspect of a market penetration strategy. Loyalty programs, special offers, or improved customer service may be implemented to retain customers.
Market Share Growth:

The ultimate aim is to gain a larger market share within the existing market, solidifying the company's position against competitors.
Risk and Cost Consideration:

Market penetration is generally considered less risky than venturing into entirely new markets. The company already has knowledge and experience in the current market

The correct option is M. Alexander, A Campbell & M Goold

Key Points The Parenting Fit Matrix, also known as the Parenting Advantage Matrix, was proposed by Michael Goold, Andrew Campbell, and Marcus Alexander.

This matrix is a strategic management tool used to analyze and make decisions regarding the allocation of resources and strategic direction among a corporation and its business units. 

Additional Information The Parenting Fit Matrix composes of two dimensions : Positive contributions and negative effects of corporation (parent). Five positions are created :

i) Heartland

ii) Edge of Heartland

iii) Ballast

iv) Alien territory

v) Value Trap

Thus, the correct answer is M. Alexander, A Campbell & M Goold

The correct answer is General Electricals.

Key Points

•  The company that first adopted McKinsey's 9-cell matrix so extensively that it became known as the "McKinsey Matrix" itself is General Electric (GE). Although other firms also used the framework, GE's consistent and successful application solidified its association with the model.
• The 9-cell matrix, developed by Bruce Henderson at McKinsey & Company in the 1970s, helps businesses evaluate their strategic portfolio based on two key dimensions: market attractiveness and business strength. By plotting their products or business units on the matrix, companies can gain insights into which areas to prioritize for investment, growth, harvest, or divestment.
• GE's then-CEO Jack Welch embraced the 9-cell matrix as a central tool for strategic decision-making in the 1980s and 1990s. He used it to identify and divest non-performing businesses, focus on high-growth markets, and allocate resources accordingly. GE's success with the framework led to its widespread adoption by other corporations, ultimately cementing its association with the company itself.

Therefore, while McKinsey & Company developed the 9-cell matrix, General Electric's pioneering and effective utilization of the framework earned it the unofficial nickname "McKinsey Matrix."

Complex Buying Behavior:

• Complex buying behavior occurs when there is high involvement of consumers with the purchase and when there are highly significant differences among the brands.
• Consumer behaves differently when purchasing an expensive product or a product that is unfamiliar to him.
• In complex buying behavior, the buyer will pass through a learning process.
• A consumer will first develop beliefs about the product, then attitude, and then making a thoughtful purchase choice.
• This type of behavior is mostly associated with the purchase of a new home or a personal computer.
• Such tasks are complex as the risk involved in them is high and the highly significant differences between brands or products require gathering a substantial amount of information before purchase.
• Marketers who wish to influence this buying task must help the consumer process the information as readily as possible.
• This may include informing the consumer about the product category and also its important attributes, providing detailed information on product benefits, and motivating sales personnel to influence the final brand choice.
• For example, realtors’ Web sites typically ofmakefer extensive photographs and videos and full descriptions of each available home.
• And a computer sales representative is likely to spend time providing information to customers who have questions.

Therefore, Complex Buying Behaviour is characterized by the level of Involvement being the high and significant differences among brands is high.

Complex Buying Behavior:

• Complex buying behavior occurs when there is high involvement of consumers with the purchase and when there are highly significant differences among the brands.
• Consumer behaves differently when purchasing an expensive product or a product that is unfamiliar to him.
• In complex buying behavior, the buyer will pass through a learning process.
• A consumer will first develop beliefs about the product, then attitude, and then making a thoughtful purchase choice.
• This type of behavior is mostly associated with the purchase of a new home or a personal computer.
• Such tasks are complex as the risk involved in them is high and the highly significant differences between brands or products require gathering a substantial amount of information before purchase.
• Marketers who wish to influence this buying task must help the consumer process the information as readily as possible.
• This may include informing the consumer about the product category and also its important attributes, providing detailed information on product benefits, and motivating sales personnel to influence the final brand choice.
• For example, realtors’ Web sites typically ofmakefer extensive photographs and videos and full descriptions of each available home.
• And a computer sales representative is likely to spend time providing information to customers who have questions.

Therefore, Complex Buying Behaviour is characterized by the level of Involvement being the high and significant differences among brands is high.

The correct answer is Limited presence in emerging markets.

Key Points

•  "Limited presence in emerging markets" is indeed an example of a weakness for a multinational corporation in the context of SWOT analysis.
• This weakness indicates that the company has a restricted footprint in potentially high-growth markets, which can put it at a disadvantage compared to competitors who have established a stronger presence in those regions.
• In SWOT analysis, weaknesses are internal factors that hinder the organization's ability to achieve its goals or compete effectively, and limited presence in emerging markets is a prime example of an internal constraint that can impact a multinational corporation's performance and market expansion strategies.

The correct answer is Political.

Key Points

•  In PEST analysis, the factor most likely to impact industries such as energy, transportation, and healthcare due to changing government policies and regulations is the Political factor.
• Political factors encompass government policies, regulations, and political stability, all of which can significantly influence industries and businesses.
• Government policies related to energy production, environmental regulations, healthcare reforms, transportation infrastructure, and public funding can directly impact the operations and strategies of companies within these sectors.
• Therefore, changes in government policies and regulations are a critical aspect of the political factor in PEST analysis for these industries.

The correct answer is Market Penetration, Product Development, Market Development, Diversification.

Key Points The Ansoff Matrix strategies can be arranged based on the level of diversification as follows, starting from the least diversified strategy:

• Market Penetration: This strategy involves selling existing products to existing markets. It is the least diversified strategy as it focuses on existing products and existing customer segments.
• Market Development: This strategy involves selling existing products to new markets. It represents a moderate level of diversification because the company is exploring new customer segments while still offering familiar products.
• Product Development: This strategy involves introducing new products to existing markets. It represents a higher level of diversification compared to market penetration and market development because the company is offering new products, even though the market is already known.
• Diversification: This is the most diversified strategy, involving the introduction of new products to new markets. It represents the highest level of diversification as the company is entering both unfamiliar markets and offering unfamiliar products.

So, in terms of diversification level, the sequence would be: Market Penetration < Market Development < Product Development < Diversification.

The correct answer is Competitive advantage.

Key Points Netflix's strategic position can be best described as a global leader in streaming entertainment. Netflix has a strong brand, a large library of content, and a global reach. Netflix is also investing heavily in original content and in expanding into new markets.

Netflix's strategic position is based on the following key factors:

• Strong brand recognition: Netflix is one of the most well-known brands in the world. It has over 220 million subscribers in over 190 countries.
• Large library of content: Netflix has a large library of content, including original shows, movies, and documentaries. This content is available in a variety of languages and is updated regularly.
• Personalized recommendations: Netflix uses algorithms to recommend content to its subscribers based on their viewing history and preferences. This helps subscribers to find new content that they are likely to enjoy.
• Global reach: Netflix is available in over 190 countries. This gives it a global reach that is unmatched by any other streaming service.
• Investment in original content: Netflix is investing heavily in original content. This is because original content is one of the key ways that Netflix can differentiate itself from its competitors. Netflix has produced some of the most popular and critically acclaimed original shows in recent years, such as "Stranger Things," "The Crown," and "Bridgerton."