MCQs Directions and methods of growth

SHARE THIS

Diversification occurs when a company decides to make new products for new markets. It should have a clear idea about what it expects to gain from
MCQs Directions and methods of growth | MCQs.CLUB

More MCQs
HOME

» MCQs on Nature and Scope of Strategic Management
» MCQs on Strategy Introduction its Levels and Concepts
» MCQs on General and Competitive environment
» Business strategy and strategy development MCQs
» MCQs on Stakeholders and corporate objectives

» Strategic Decision Making MCQs
» MCQs on Resource Audit
» MCQs on Generic strategies

» MCQs Directions and methods of growth
» MCQs on Evaluating Strategic Options

» Strategic Marketing MCQs
» MCQs on Information systems and strategy
» MCQs on Issues in strategic management
» MCQs on Organizational change
» MCQs on Implementing change

» MCQs on Strategic Control
» MCQs on Risk Management

MCQs Directions and methods of growth

Diversification occurs when a company decides to make new products for new markets. It should have a clear idea about what it expects to gain from diversification. Here on MCQs.CLUB we have prepared helpful Multiple-Choice Question on growth strategies in business with examples that fully cover practice questions on business development strategy, inorganic and organic growth business, about marketing growth strategy, external growth strategy, horizontal growth strategy, the product growth strategies. These MCQs on growth strategies in strategic management are also useful for competitive exams, business management exams and professional accountancy exams.

  1. Product-market strategy looks at the mix of products and markets a firm can use to try to increase its sales. Ansoff demonstrates the choices available in the form of a matrix with options including:
    1. Market penetration – current products, current markets
    2. Market development – current products, new markets
    3. Product development – new products, current markets
    4. Diversification – new products, new markets
    5. All of the above
  1. Product Market Mix – is a short-hand term for the products/services a firm sells (or a service which a public sector organisation provides) and the markets it sells them to.
    1. True
    2. False
  1. Product development is the launch of new products to existing markets, either through the internal research and development of a firm’s own products, or possibly by acquiring the rights to produce someone else’s product.
    1. The above statement is correct
    2. The above statement is incorrect
  1. Advantages of product development are:
    1. Product development forces competitors to innovate
    2. Newcomers to the market might be discouraged
    3. Both A&B
    4. None
  1. Diversification occurs when a company decides to make new products for new markets. It should have a clear idea about what it expects to gain from diversification.
    1. True
    2. False
  1. Unrelated or Conglomerate Diversification – ‘is development beyond the present industry into products/markets which, at face value, may bear no close relation to the present product/market’.
    1. True
    2. False
  1. Advantages of conglomerate diversification include:
    1. An improvement of the overall profitability and flexibility of the firm through synergy
    2. Organisational learning by buying-in expertise
    3. Use a company’s image and reputation in one market to develop into another
    4. Exploit under-utilised resources
    5. All of the above
Read more

Leave a Reply

Join us
Recent Post
Follow us

Sign up for Free MCQs

Welcome to the Club

Log in to continue. IT'S FREE

OR

By continuing, you agree to MCQs CLUB’s Terms of Service and acknowledge you’ve read our Privacy Policy