Question 1

When an SBU has become a _____________,it is essential to either invest in it heavily to gain better market share,acquire competitors to get the necessary market share,reposition its products,or drop it.

Accepted Answer

A)   cash cow
B)   star
C)   dog
D)   problem childE) A) and B)
F) C) and D) D

Question 2

Which of the following defines the key goal of an SBU that is a very successful cash cow?

Accepted Answer

A)   Hold
B)   Build
C)   Harvest
D)   DivestE) A) and D)
F) A) and C)

Question 3

In the context of the Boston Consulting Group's (BCG's) portfolio matrix,which of the following is true of SBUs considered to be question marks?

Accepted Answer

A)   They operate in a high-growth industry with a low market share.
B)   They generate more cash than they need to maintain their market share.
C)   They have low growth potential and a small market share.
D)   They do not require any cash to maintain their market.E) C) and D)
F) None of the above

Question 4

Magnira Inc.plans to implement a market penetration strategy to increase its market share.According to Ansoff's strategic opportunity matrix,which of the following scenarios is most likely to happen?

Accepted Answer

A)   It will try to attract new customers to its products.
B)   It will try to increase its market share among existing customers.
C)   It will create new products for its existing customers.
D)   It will move away from its core capabilities and diversify its business.E) None of the above
F) B) and C)

Question 5

Which of the following generally does NOT result in a cost competitive advantage?

Accepted Answer

A)   Efficient labor
B)   Government subsidies
C)   Product design
D)   Maintaining older service delivery methodsE) None of the above
F) C) and D)

Question 6

Which of the following is correct about a sustainable competitive advantage?

Accepted Answer

A)   It is not attractive because of its durability.
B)   It cannot be copied by the competition.
C)   It lowers costs by removing frills.
D)   It does not offer any low-priced products.E) A) and B)
F) B) and D)

Question 7

Which of the following is the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives?

Accepted Answer

A)   Implementation
B)   Evaluation
C)   Control
D)   Marketing auditE) All of the above
F) A) and B)

Question 8

Which of the following statements is true of effective strategic planning?

Accepted Answer

A)   Subordinates must persuade the management to accept their demands.
B)   Managers should challenge assumptions about the firm and the environment.
C)   Sound strategic planning is based on a trial-and-error method of execution.
D)   Strategic planning should be an annual exercise on a day specially designated for it.E) C) and D)
F) A) and D)

Question 9

Which of the following statements is true of the innovation matrix?

Accepted Answer

A)   As a company moves away from its core capabilities,it moves through a range of innovation.
B)   If an SBU of a firm is in a market with low overall attractiveness,it must be harvested.
C)   Products are matched with markets to develop alternative marketing strategies.
D)   Clear-cut sectors define modern businesses' growth better than the fluid growth model.E) A) and B)
F) A) and C)

Question 10

For a star,the best marketing tactic is to protect existing market share by reinvesting earnings in product improvement,better distribution,more promotion,and production efficiency.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is correct about the product development strategy of Ansoff's strategic opportunity matrix?

Accepted Answer

A)   It is a marketing strategy that tries to increase market share among existing customers.
B)   It is a marketing strategy that entails attracting new customers to existing products.
C)   It is a marketing strategy that entails the creation of new products for present markets.
D)   It is a strategy of increasing sales by introducing new products into new markets.E) B) and D)
F) A) and D)

Question 12

An operating decision is unlikely to have a great impact on the long-run profitability of a company.

Accepted Answer

A) True 
 B)False

Question 13

With reference to the General Electric model for selecting strategic alternatives,which of the following refers to how well placed in a market an organization needs to be to take advantage of opportunities?

Accepted Answer

A)   Business position
B)   Experience curve
C)   Market attractiveness
D)   Marketing myopiaE) A) and B)
F) B) and C)

Question 14

In the context of the portfolio matrix,which statement is generally true of SBUs considered to be dogs?

Accepted Answer

A)   Protection of existing market share is essential for dogs.
B)   Dogs have a dominant market share in low-growth markets.
C)   Typical marketing strategies for dogs are to harvest or divest.
D)   Dogs escalate in the market if given strong financial funding.E) B) and C)
F) C) and D)

Question 15

A strategic business unit (SBU)is a single business or a collection of related businesses.

Accepted Answer

A) True 
 B)False

Question 16

According to the Boston Consulting Group model,the best strategy options in dealing with problem children are to invest heavily to gain better market share,acquire competitors to get the necessary market share,or drop the SBU.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following strategies can enable companies to gain a cost competitive advantage?

Accepted Answer

A)   Removing frills from products
B)   Focusing on serving marginal customers
C)   Eliminating reverse engineering efforts
D)   Developing additional,exclusive functional departmentsE) C) and D)
F) None of the above A

Question 18

Imitating a rival's competitive advantage requires a company to first identify the rival's competitive advantage.

Accepted Answer

A) True 
 B)False  True

Question 19

The marketers at Gemini Inc.have prepared a marketing plan for the company's air conditioners.The managers at Gemini have outlined several activities for their subordinates based on this marketing plan and set a deadline and allocated a budget for each activity.Which of the following stages of the marketing plan is illustrated in this scenario?

Accepted Answer

A)   Evaluation
B)   Implementation
C)   Control
D)   Vertical integrationE) A) and D)
F) A) and B)

Question 20

Choqlate King Inc.is a large company that manufactures and sells chocolate bars.It plans to adopt a product development strategy.In this case,Choqlate King will:

Accepted Answer

A)   focus on attracting new customers and retain existing ones.
B)   offer chocolates at competitive prices.
C)   introduce a product line of low-calorie chocolates.
D)   use existing assets to provide added convenience to existing customers.E) All of the above
F) C) and D)

Exam 2: Strategic Planning and Competitive Advantage

When an SBU has become a _____________,it is essential to either invest in it heavily to gain better market share,acquire competitors to get the necessary market share,reposition its products,or drop it.

Correct Answer
verified
D

Which of the following defines the key goal of an SBU that is a very successful cash cow?

Correct Answer
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In the context of the Boston Consulting Group's (BCG's) portfolio matrix,which of the following is true of SBUs considered to be question marks?

Correct Answer
verified

Magnira Inc.plans to implement a market penetration strategy to increase its market share.According to Ansoff's strategic opportunity matrix,which of the following scenarios is most likely to happen?

Correct Answer
verified

Which of the following generally does NOT result in a cost competitive advantage?

Correct Answer
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Which of the following is correct about a sustainable competitive advantage?

Correct Answer
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Which of the following is the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives?

Correct Answer
verified

Which of the following statements is true of effective strategic planning?

Correct Answer
verified

Which of the following statements is true of the innovation matrix?

Correct Answer
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For a star,the best marketing tactic is to protect existing market share by reinvesting earnings in product improvement,better distribution,more promotion,and production efficiency.

Correct Answer
verified

Which of the following is correct about the product development strategy of Ansoff's strategic opportunity matrix?

Correct Answer
verified

An operating decision is unlikely to have a great impact on the long-run profitability of a company.

Correct Answer
verified

With reference to the General Electric model for selecting strategic alternatives,which of the following refers to how well placed in a market an organization needs to be to take advantage of opportunities?

Correct Answer
verified

In the context of the portfolio matrix,which statement is generally true of SBUs considered to be dogs?

Correct Answer
verified

A strategic business unit (SBU)is a single business or a collection of related businesses.

Correct Answer
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According to the Boston Consulting Group model,the best strategy options in dealing with problem children are to invest heavily to gain better market share,acquire competitors to get the necessary market share,or drop the SBU.

Correct Answer
verified

Which of the following strategies can enable companies to gain a cost competitive advantage?

Correct Answer
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A

Imitating a rival's competitive advantage requires a company to first identify the rival's competitive advantage.

Correct Answer
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True

Correct Answer
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Choqlate King Inc.is a large company that manufactures and sells chocolate bars.It plans to adopt a product development strategy.In this case,Choqlate King will:

Correct Answer
verified

Exam 2: Strategic Planning and Competitive Advantage

When an SBU has become a _____________,it is essential to either invest in it heavily to gain better market share,acquire competitors to get the necessary market share,reposition its products,or drop it.

Correct AnswerverifiedD

Which of the following defines the key goal of an SBU that is a very successful cash cow?

Correct AnswerverifiedShow Answer

In the context of the Boston Consulting Group's (BCG's) portfolio matrix,which of the following is true of SBUs considered to be question marks?

Correct AnswerverifiedShow Answer

Magnira Inc.plans to implement a market penetration strategy to increase its market share.According to Ansoff's strategic opportunity matrix,which of the following scenarios is most likely to happen?

Correct AnswerverifiedShow Answer

Which of the following generally does NOT result in a cost competitive advantage?

Correct AnswerverifiedShow Answer

Which of the following is correct about a sustainable competitive advantage?

Correct AnswerverifiedShow Answer

Which of the following is the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives?

Correct AnswerverifiedShow Answer

Which of the following statements is true of effective strategic planning?

Correct AnswerverifiedShow Answer

Which of the following statements is true of the innovation matrix?

Correct AnswerverifiedShow Answer

For a star,the best marketing tactic is to protect existing market share by reinvesting earnings in product improvement,better distribution,more promotion,and production efficiency.

Correct AnswerverifiedShow Answer

Which of the following is correct about the product development strategy of Ansoff's strategic opportunity matrix?

Correct AnswerverifiedShow Answer

An operating decision is unlikely to have a great impact on the long-run profitability of a company.

Correct AnswerverifiedShow Answer

With reference to the General Electric model for selecting strategic alternatives,which of the following refers to how well placed in a market an organization needs to be to take advantage of opportunities?

Correct AnswerverifiedShow Answer

In the context of the portfolio matrix,which statement is generally true of SBUs considered to be dogs?

Correct AnswerverifiedShow Answer

A strategic business unit (SBU)is a single business or a collection of related businesses.

Correct AnswerverifiedShow Answer

According to the Boston Consulting Group model,the best strategy options in dealing with problem children are to invest heavily to gain better market share,acquire competitors to get the necessary market share,or drop the SBU.

Correct AnswerverifiedShow Answer

Which of the following strategies can enable companies to gain a cost competitive advantage?

Correct AnswerverifiedA

Imitating a rival's competitive advantage requires a company to first identify the rival's competitive advantage.

Correct AnswerverifiedTrue

Correct AnswerverifiedShow Answer

Choqlate King Inc.is a large company that manufactures and sells chocolate bars.It plans to adopt a product development strategy.In this case,Choqlate King will:

Correct AnswerverifiedShow Answer

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D

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A

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True

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