Refer to the Scenario Below to Answer the Following Questions

question 113

Multiple Choice

Refer to the scenario below to answer the following questions.
Megabyte Centre (Scenario)
Your old friend Ariel Eskenazi is the owner and general manager of Megabyte Centre, a computer reseller and systems integrator located in Panama City, Panama. Since leaving IBM Canada to start a business in his home country, Ariel has watched his company grow steadily, due in large part to the business partnerships he's established over the years with large foreign computer and software firms, such as Goldstar and Microsoft. These relationships have helped his company win considerable market share in Panama, as well as in other parts of Latin America. However, in recent years, there has been a huge influx of foreign capital into Panama. For example, several large Asian firms have established subsidiaries in Panama to launch their North American operations. Tourism is also on the rise, and dozens of new hotels have been built in the metropolitan area over the past three years. As a result, demand for Megabyte's products and services has increased dramatically, but so has the level and diversity of its competition. While Megabyte's customer base has remained fairly loyal, many longtime customers are beginning to demand price concessions and enhanced service levels in return for their continued business. Ariel has recently learned that several of his former suppliers and business partners are considering establishing their own local sales offices in Panama City to sell direct to market rather than distributing through Megabyte. Ariel knows you are very knowledgeable about competitive strategy and asks for your advice. You begin by telling him a little about Michael Porter's competitive strategies framework.
-Once Ariel has assessed the five forces and determined the threats and opportunities that exist in the current environment, he will be ready to select an appropriate competitive strategy. The three competitive strategies proposed by Michael Porter are __________.

• A) cost leadership, focus, and diversification
• B) cost leadership, focus, and integration
• C) focus, differentiation, and cost leadership
• D) focus, differentiation, and retrenchment
• E) focus, diversification, and combination

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Definitions:

Wilhelm Wundt

A founder of modern psychology known for his establishment of the first psychological laboratory.

Self-Observation

Self-observation involves consciously paying attention to one’s own behaviors, thoughts, and emotions, often as a method of personal development or psychological analysis.

Stimulus-Response

A theory in psychology that describes how an external stimulus can elicit or provoke a specific response from an individual or system.

Experimental Social Psychology

A branch of psychology focusing on how individuals' thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others, using experimental methods for investigation.