A case study on IKEA

A) IKEA’s product development process is based on extensive market research. Which step of the strategic-management process is most closely related to this development process?

a) maintain strategic control

b) assess the current reality

c) implement the strategy

d) establish the mission, vision, and values statements

e) formulate the grand strategy

2) Which of Porter’s Four Competitive Strategies is IKEA primarily embracing?

a) cost-focus

b) differentiation

c) focused-differentiation

d) cost-leadership

3) IKEA is strategically positioning itself based on which of the following customer needs?

a) broad needs, few customers

b) broad needs, many customers

c) few needs, many customers

d) few needs, few customers

e) ambiguous needs, many customers

4) Based on the BCG matrix, IKEA would most likely be labeled a

a) star

b) question mark

c) dog