1. A firm becomes more vertically integrated when .
   1. it buys a direct competitor
   2. d. it outsources some activities either upstream or downstream of its core business
   3. it competes in vertical industries
   4. its management and staff are better aligned
   5. it moves to own more stages of the value chain, either upstream or downstream of its core activities

2. When a firm targets a specific market like a particular region or group of potential customers, this strategy is called ...

1. focus strategy.
2. cost-leadership strategy
3. differentiation strategy.
4. functional level strategy
5. production strategy.

3. When a division of an organization has a high relative market share and is in a fast-growing industry, it is referred to as a .
   1. star
   2. cash cow
   3. function
   4. question mark
   5. dog
4. Most companies have developed their websites to sell products and services directly to consumers. For example, in the airline industry, most intermediaries have become redundant as most customers book their tickets, directly, online. These examples demonstrate

a. technical integration

b. backward integration

c. forward integration

d. conglomerate diversification

e. horizontal integration

5. Which of the following is not included among limitations of BCG Matrix?

a. not reflecting divisional or industry growth over time.

b. not allowing a company to be classified as somewhere in between two

categories.

c. requiring at least three years worth of data.

d. viewing every business as a star, cash cow, dog or question mark can be an

oversimplification.

e. other variables such as size of market and competitive advantages are not

considered