1. Most banks offer electronic statements free of charge but charge clients a small fee if they want to receive paper statements in the mail. What kind of strategy is this an illustration of?

a) Cost leadership

b) Differentiation

c) Niche

d) Best value

2. Cytay Designs is a high-end watch manufacturer. The company has recently decided to start designing $200 premium pens as well. What type of diversification is this an example of?

a) Concentric

b) Horizontal

c) Conglomerate

d) Defensive

3. Cowabunga Cream was originally developed as a lotion to treat the udders of milking cows. Farmers started commenting that the cream also works well to treat chapped hands and feet, so Cowabunga Inc. started marketing the cream to humans as well. What type of strategy is this an example of?

a) Horizontal integration

b) Product development

c) Market penetration

d) Market development Performance Management \

4. Westlake Production Ltd. operates across Canada. It has three main regional plants: Eastern, which produces lawnmower engines; Central, which produces components for watercraft; and Western, which makes frames for all-terrain vehicles. Each region has its own local administrative office to handle hiring, accounting, payroll, and similar roles, and each region is considered an autonomous unit. What organizational structure does this reflect?

a) Functional structure

b) Divisional structure

c) Matrix structure

d) A combination of functional and divisional structures

5. Which of the following statements is true with respect to strategy evaluation?

a) Once an organization has committed to a strategy, it should ensure that nothing is allowed to alter that strategy.

b) Strategy evaluation is a linear process that should be followed systematically.

c) If targets are being missed, an organization will need to adjust the targets to more realistic levels.

d) Strategy evaluation should include monitoring performance against stakeholder expectations.