Value Adding Activity And Different Strategies According To Porter


1. Which one of the following statements describes a value adding activity?

A. Packing the product.
B. Warehousing the product to ensure that adequate quantities are on hand to meet future sales
C. Moving the product between the manufacturing processes in the factory.
D. Inspecting the final product to ensure compliance with specifications

2.  A clothing manufacturer makes top-quality clothes under the label Frog and Toad. These garments include denim shirts, pants and jackets that are sold through exclusive retail outlets. The production costs and selling prices of Frog and Toad clothing are at the upper end of the market.

According to Porter (1985), which one of the following options best describes the strategy that this clothing manufacturer is pursuing?

A. Market Development strategy
B. Cost leadership strategy
C. Cost focus strategy
D. Differentiation focus strategy


These multiple choice questions belong to Corporate Strategy and the 1st question discusses about value adding activity and the 2nd question discusses about the strategy adopted by the cloth manufacturer.

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