
SFI CHAPTER 6 CHECK-OUT ACTIVITIES
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1
Multiple Choice
What is the primary objective of offensive strategy?
Protecting and maintaining market position
Expanding market share and gaining a competitive advantage
Restricting options for potential challengers
Minimizing costs and maximizing efficiency
2
Multiple Choice
Which of the following is an example of a defensive strategy?
Introducing new features and models to fill market gaps
Challenging the quality of competitors' products
Offering volume discounts to dealers and distributors
Expanding into new international markets
3
Multiple Choice
What is an example of a defensive strategy used by a fast-food chain to protect its market position?
Launching a new advertising campaign targeting a specific demographic
Introducing a new menu item to attract more customers
Offering promotional discounts to counter competitor's pricing strategies
Expanding into international markets to increase market share
4
Multiple Choice
Late-mover advantages refer to the benefits that a company can gain by:
Being the first to enter a market and establish a strong presence
Entering a market after competitors have already established themselves
Adopting a defensive strategy to protect its market position
Investing heavily in research and development for innovative products
5
Multiple Choice
In 2019, The Walt Disney Company acquired 21st Century Fox. This acquisition is an example of:
Horizontal merger
Vertical integration
Conglomerate merger
Strategic alliance
6
Multiple Choice
Tesla, a leading electric vehicle manufacturer, vertically integrated its operations by:
Acquiring a battery manufacturing company to secure its supply chain
Forming a partnership with a renewable energy company to promote sustainable practices
Diversifying into the aerospace industry by launching SpaceX
Selling off its solar energy division to focus solely on electric vehicles
7
Multiple Choice
Nestle outsources a significant portion of its manufacturing operations to third-party companies. Which of the following is a key reason why Nestle utilizes outsourcing?
To reduce costs and improve operational efficiency
To gain control over the entire value chain
To eliminate competition from other manufacturers
To strengthen its in-house manufacturing capabilities
8
Multiple Choice
Nestle formed a strategic alliance with which company to create the joint venture called Nestle Waters?
The Coca-Cola Company
Danone
PepsiCo
Starbucks
9
Multiple Choice
Which of the following markets is more likely a Blue Ocean market?
Smartphone market
Ride-sharing market
Plant-based meat market
E-commerce market
10
Multiple Choice
Which of the following best describes backward vertical integration?
When a company expands its operations into a higher stage of the supply chain or towards the end-consumer.
When a company expands its operations into a lower stage of the supply chain or towards the raw materials source.
When a company forms a strategic alliance with a competitor to jointly develop new products.
When a company outsources its operations to third-party vendors to reduce costs.
What is the primary objective of offensive strategy?
Protecting and maintaining market position
Expanding market share and gaining a competitive advantage
Restricting options for potential challengers
Minimizing costs and maximizing efficiency
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