1. A product has a 12% market share. The largest competitor holds 30%, and the market is growing at 14% a year. Where does the product sit on the BCG matrix?

A) Dog (divest or harvest)
B) Cash cow (harvest for cash)
C) Star (invest to hold share)
D) Question mark (build or divest)

Correct: D complex BCG matrix

Relative market share = 12% / 30% = 0.4, which is low (below 1.0), and market growth of 14% is high. Low share in a high-growth market is a question mark. A star has high share and high growth. A cash cow has high share and low growth. A dog has low share and low growth. If you chose star you used absolute share; if you chose dog you ignored growth.

2. A Chattogram firm makes premium hospital uniforms for a narrow group of private hospitals. It tailors designs and services to them and charges higher prices. Under Porter's generic strategies, the firm follows:

A) broad differentiation
B) differentiation focus
C) cost focus
D) cost leadership

Correct: B difficult Porter's generic strategies

A narrow target segment with a premium, tailored offer is differentiation focus. Cost focus would compete on low cost within a narrow segment. Broad differentiation targets a wide market. Cost leadership means low prices across a wide market. If you chose cost focus you ignored the premium pricing; if you chose broad differentiation or cost leadership you ignored the narrow target.

3. Which TWO would raise barriers to entry into an industry? (Select TWO.)

Multiple response
A) Significant economies of scale for existing firms
B) Low switching costs for customers
C) Easy access to distribution channels
D) Large capital requirements to start up
E) Standardised, undifferentiated products

Correct: A, D difficult Porter's five forces: barriers to entry

High barriers come from scale economies and large capital needs. Low switching costs, easy distribution access and homogeneous products make entry easier. If you chose B, C or E you chose factors that lower barriers.

4. Which TWO are technological factors in a PESTEL analysis for a Bangladeshi garment exporter? (Select TWO.)

Multiple response
A) Mandatory electronic invoicing by the tax authority
B) Wider 5G coverage enabling real-time machine monitoring
C) A rise in the central bank policy rate
D) Automated cutting machines that reduce labour per garment
E) Growing buyer preference for sustainable apparel

Correct: B, D difficult PESTEL

Technological factors relate to innovation, automation and infrastructure. E-invoicing is a legal/political rule, a higher policy rate is economic, and sustainability preference is social. If you chose A, C or E you misclassified the factor.

5. Consider the levels and nature of strategy. For each statement, select Yes if it is correct and No if it is not.

Yes/No grid

1. Corporate strategy decides which industries and markets the group competes in.   Yes

2. Business unit strategy decides how to compete in a particular market.   Yes

3. Functional strategies are set before the corporate strategy.   No

4. Emergent strategy arises only from formal, deliberate planning.   No

Correct: Y, Y, N, N difficult Levels of strategy

(1) Yes. (2) Yes. (3) No: functional strategies support, and so follow, higher-level strategy. (4) No: emergent strategy develops from actions and experience, outside the formal plan (Mintzberg).

6. A Bangladeshi biscuit maker launches a new gluten-free range to its existing supermarket customers. In Ansoff's matrix, which strategy is this and what is its risk?

A) Diversification, with the highest risk because both the product and the market are new to the firm
B) Product development, with moderate risk because the market is known but the product is new
C) Market penetration, with the lowest risk because both the product and the market are already known
D) Market development, with moderate risk because the product is known but the customers are new

Correct: B difficult Ansoff's matrix

A new product sold to existing customers is product development. Risk is moderate: the market is familiar but product acceptance is uncertain. Market development is existing products in new markets. Penetration is existing products in existing markets. Diversification is new products in new markets.

7. A firm negotiates annual contracts with fabric mills and evaluates alternative sources of supply. In Porter's value chain this activity is:

A) firm infrastructure, a support activity
B) inbound logistics, a primary activity
C) procurement, a support activity
D) operations, a primary activity

Correct: C difficult Value chain

Procurement covers the buying of inputs and managing supplier relationships; it supports all primary activities. Inbound logistics is receiving, storing and distributing inputs. Operations converts inputs into the product. Firm infrastructure covers general management, planning, finance and legal affairs.

8. A Chattogram dyeing firm lists the factors below. Which TWO are internal factors (strengths or weaknesses) in a SWOT analysis? (Select TWO.)

Multiple response
A) A new government incentive for exporters
B) Rising cotton prices
C) A patented low-water dyeing process
D) Entry of Vietnamese competitors
E) High staff turnover in the production department
F) A weakening of the taka

Correct: C, E difficult SWOT analysis

Strengths and weaknesses arise inside the organisation: the patented process is a strength and high staff turnover is a weakness. Incentives, cotton prices, competitor entry and exchange rates are external opportunities or threats.

9. Which TWO are typical features of a cost leadership strategy? (Select TWO.)

Multiple response
A) Premium pricing based on unique product features
B) Economies of scale and tight cost control
C) Heavy investment in brand image advertising
D) Highly customised products for a narrow segment
E) Standardised products produced in high volume

Correct: B, E difficult Cost leadership strategy

Cost leaders seek the lowest cost in the industry through scale, tight control and standardised high-volume production. Premium pricing, brand advertising and customisation are features of differentiation or focus.

10. Consider Porter's generic strategies. For each statement, select Yes if it is correct and No if it is not.

Yes/No grid

1. Cost focus seeks a cost advantage within a narrow market segment.   Yes

2. Differentiation focus offers distinctive products to a narrow market segment.   Yes

3. A differentiation strategy depends on being the lowest-cost producer in the industry.   No

4. A differentiator can sustain higher prices only if customers value the distinctive features.   Yes

5. Cost leadership means charging prices above those of rivals to fund investment.   No

Correct: Y, Y, N, Y, N difficult Generic strategies

(1) Yes. (2) Yes. (3) No: differentiators compete on uniqueness, not on lowest cost. (4) Yes. (5) No: a cost leader seeks low prices relative to rivals or higher margins at market prices.

11. A Chittagong-based tea company sells its existing blends in a new overseas market. In Ansoff's matrix, which strategy is this and how would risk compare with penetration?

A) Product development, which carries less risk than market penetration
B) Diversification, which carries the same risk as market penetration
C) Market penetration, which carries the highest risk of all strategies
D) Market development, which carries more risk than market penetration

Correct: D complex Ansoff's matrix

Existing products in new markets is market development. It is riskier than penetration, which uses existing products in existing markets.

12. A Bangladeshi bank faces the following: a new central bank rule on digital lending (legal/political), rising inflation, growing smartphone use and a trend of younger customers preferring app-based services. Which statement correctly classifies the last two?

A) Smartphone use is social and the younger customers' preference is technological
B) Both are legal factors because they require compliance with new regulation
C) Both are economic factors because they influence the bank's revenue
D) Smartphone use is technological and the younger customers' preference is social

Correct: D complex PESTEL

Technology adoption is a technological factor. Changes in customer demographics and attitudes are social factors. Inflation is the economic factor.

13. A single large retailer buys 60% of a Dhaka manufacturer's output, can switch to imports at low cost, and is demanding price cuts. Which of Porter's forces is strongest here?

A) Threat of new entrants
B) Bargaining power of buyers
C) Bargaining power of suppliers
D) Competitive rivalry

Correct: B complex Porter's five forces

A concentrated buyer accounting for most sales, with low switching costs, has strong bargaining power over price.

14. A conglomerate considers acquiring a software business to serve its manufacturing customers. Which level of strategy is this decision and why?

A) Operational strategy, because it concerns day-to-day use of resources
B) Business strategy, because it concerns how to compete within one market
C) Corporate strategy, because it concerns the scope and mix of businesses in the group
D) Functional strategy, because it concerns the marketing department's budget

Correct: C difficult Corporate strategy

Decisions about which businesses the group should be in, including acquisitions, are corporate-level.

15. A firm's SWOT shows a strength in low-cost production and a threat from a new low-cost foreign competitor. Which strategy combines the strength with the threat?

A) Use the cost advantage to defend market share through competitive pricing
B) Wait until the threat disappears before taking any action
C) Reduce quality to make the product cheaper than the entrant
D) Abandon the market because the strength is irrelevant to the threat

Correct: A difficult SWOT and strategy

A SO/ST approach uses strengths to counter threats: here the cost advantage supports a defensive pricing response.

16. A company improves its after-sales call centre and spare parts availability, hoping to retain customers who value reliability. Which Porter primary activity is this?

A) Service
B) Operations
C) Marketing and sales
D) Inbound logistics

Correct: A complex Value chain

After-sales support and spare parts are the service activity. Marketing and sales covers promotion and selling, operations covers production, and inbound logistics covers receiving inputs.

17. Which THREE are typical features of a differentiation strategy? (Select THREE.)

Multiple response
A) Unique product features valued by customers
B) Premium pricing
C) Strong brand and image
D) Minimal marketing spend
E) Standardised commodity products
F) Lowest cost in the industry

Correct: A, B, C difficult Differentiation strategy

Differentiation relies on uniqueness, which supports higher prices and brand loyalty. Lowest cost and standardised commodities describe cost leadership.

18. Which TWO factors are most likely to appear in a PESTEL analysis rather than in an analysis of internal resources? (Select TWO.)

Multiple response
A) A new environmental regulation
B) The age of the firm's machinery
C) The skill level of the firm's own workforce
D) The firm's brand reputation
E) A change in interest rates

Correct: A, E difficult External analysis

PESTEL examines the external macro-environment. Workforce skills, machinery and brand are internal.

19. Which THREE are barriers to entry? (Select THREE.)

Multiple response
A) Low capital requirements
B) No legal restrictions
C) High switching costs for customers
D) Economies of scale enjoyed by existing firms
E) Easy access to distribution channels
F) Strong brand loyalty

Correct: C, D, F difficult Barriers to entry

Scale advantages, brand loyalty and switching costs make entry harder. Low capital requirements, easy distribution and no legal restrictions lower barriers.

20. Which TWO are stages in the strategic planning process? (Select TWO.)

Multiple response
A) Strategic analysis
B) Preparing the monthly payroll
C) Daily cash counting
D) Strategic choice
E) Reconciling the bank statement

Correct: A, D difficult Strategic planning

Strategic planning typically includes analysis, choice and implementation. Payroll, reconciliations and cash counting are operational routines.

21. Compared with organic growth, which TWO are advantages of growing through acquisition? (Select TWO.)

Multiple response
A) Access to existing customers and capabilities
B) Lower integration risk
C) No need for funding
D) Faster entry to a new market
E) Guaranteed cultural fit

Correct: A, D difficult Strategic alliances and acquisitions

Acquisitions deliver speed, customers and capabilities. They bring integration risk, cultural issues and funding needs.

22. Which TWO are risks of a cost leadership strategy? (Select TWO.)

Multiple response
A) The firm avoids price wars
B) The firm gains a premium price
C) The firm becomes a monopoly by law
D) Competitors may imitate cost-cutting methods
E) Customers may value quality or service more than price

Correct: D, E difficult Cost leadership

Cost leaders risk imitation and customers who value other attributes. A premium price is not typical, and cost leadership does not create legal monopoly.

23. Consider the Boston matrix. For each statement, select Yes if it is correct and No if it is not.

Yes/No grid

1. Cash cows are in high-growth markets with high relative share.   No

2. Stars have high relative share in high-growth markets.   Yes

3. Dogs have high share in high-growth markets.   No

4. Question marks have low share in high-growth markets.   Yes

Correct: N, Y, N, Y difficult Boston matrix

(1) No: cash cows are in low-growth markets. (2) Yes. (3) No: dogs have low share and low growth. (4) Yes.

24. Consider strategic choices. For each statement, select Yes if it is correct and No if it is not.

Yes/No grid

1. Diversification enters existing markets with existing products.   No

2. Organic growth uses the firm's own resources.   Yes

3. Acquisition may give faster growth than organic expansion.   Yes

4. A joint venture requires the partners to merge completely.   No

Correct: N, Y, Y, N difficult Strategic choices

(1) No: diversification means new products in new markets. (2) Yes. (3) Yes. (4) No: it creates a shared entity, not a full merger.

25. Consider competitive advantage. For each statement, select Yes if it is correct and No if it is not.

Yes/No grid

1. Core competences are skills that rivals can easily copy.   No

2. Differentiation can create customer loyalty.   Yes

3. Competitive advantage allows a firm to earn above-average returns.   Yes

4. A cost advantage cannot be a source of competitive advantage.   No

Correct: N, Y, Y, N difficult Competitive advantage

(1) No: core competences are hard to imitate. (2) Yes. (3) Yes. (4) No: it is one of the two main sources.