THM 3312 Exam 1 UPDATED Exam Questions and CORRECT Answers
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Course
THM 3312
Institution
THM 3312
THM 3312 Exam 1 UPDATED Exam
Questions and CORRECT Answers
What is the strategy? - CORRECT ANSWER- A plan of action or policy to achieve a major
or overall aim
Understanding of broad environment and components - CORRECT ANSWER- Societal
trends and influences
Technological advances
Major i...
THM 3312 Exam 1 UPDATED Exam
Questions and CORRECT Answers
What is the strategy? - CORRECT ANSWER- A plan of action or policy to achieve a major
or overall aim
Understanding of broad environment and components - CORRECT ANSWER- Societal
trends and influences
Technological advances
Major innovations in other industries
Economic factors
Political and legal trends and influences
Suppliers are powerful if: - CORRECT ANSWER- The industry is dominated by a few firms
Their products have few substitutes
Their product is important input to buyers' product
Their products are differentiated
Their products have high switching costs
Buyers are powerful if: - CORRECT ANSWER- Purchase accounts for a significant fraction
of a supplier's sales (corporate accounts)
They have full information
They have many choices
Political power
How to play out in an intense rivalry situation - CORRECT ANSWER- Using price
competition
Staging advertising battles (Coke vs Pepsi)
Increasing service warranties
Making new product introductions
, Barriers to entry (Threat of new entrants) - CORRECT ANSWER- Economies of scale
Product differentiation (uniqueness)
Capital requirements- more resources
Switching costs- frequent flyer
Access to distribution channel- nondurable goods (shelf space)
Government policy- licensing and permit requirements
Market Concentration - CORRECT ANSWER- Seeks growth in current markets with current
products
Market Development - CORRECT ANSWER- Seeks growth in new markets with current
products (expand)
Product development - CORRECT ANSWER- New product possibilities in current markets
Concentric Diversification Strategy - CORRECT ANSWER- Moving into new lines of
business by adding new, but related products for the current customer
Concentric Diversification Strategy Example - CORRECT ANSWER- Wendy's introducing
Java Fresh Mexican Grill to respond to customer's healthy eating needs
Horizontal Diversification Strategy - CORRECT ANSWER- Moving into new lines of
business by adding new, but unrelated products for the current customer
Horizontal Growth Strategy - CORRECT ANSWER- Hard Rock Cafe selling clothing and
merchandise in their restaurant
Conglomerate Diversification Strategy - CORRECT ANSWER- Seeking new business that
has no relationship to the company's current products
Conglomerate Diversification Strategy Example - CORRECT ANSWER- Hyatt hotels
entering the retirement homes market
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