Question 1

Which of the following strategies from the GE business screen is most likely to be used with an SBU that is classified as a dog according to the BCG matrix?

Accepted Answer

A)  diversify 
B)  divest 
C)  harvest 
D)  invest 
E)  protect 
A)  diversify 
B)  divest 
C)  harvest 
D)  invest 
E)  protect

Question 2

The _____ for a dating service for young professionals reads, "Our goal is to promote fun, excitement, and a proactive approach to your personal life by providing quality lunch-date opportunities in a discrete, no-pressure atmosphere."

Accepted Answer

A)  strategic plan 
B)  corporate motto 
C)  marketing campaign 
D)  mission 
E)  situational assessment 
A)  strategic plan 
B)  corporate motto 
C)  marketing campaign 
D)  mission 
E)  situational assessment

Question 3

According to the BCG matrix, a strategic business unit (SBU) with a high market share in an industry with a low growth rate is classified as a:

Accepted Answer

A)  question mark. 
B)  star. 
C)  cash cow. 
D)  problem child. 
E)  dog. 
A)  question mark. 
B)  star. 
C)  cash cow. 
D)  problem child. 
E)  dog.

Question 4

Southwire is one of the world's largest cable and wire manufacturers. In 1999 it sold its copper recycling plant so it could concentrate on expanding its wire and cable manufacturing capabilities. Since the price of recycled metals had declined, it was not profitable for Southwire to continue this operation. According to the GE business screen, Southwire engaged in which of the following strategies?

Accepted Answer

A)  protect 
B)  divest 
C)  harvest 
D)  invest 
E)  diversify 
A)  protect 
B)  divest 
C)  harvest 
D)  invest 
E)  diversify

Question 5

In an attempt to gain additional sales from its current customers, Pizza Hut has added Buffalo wings to its menus. Pizza Hut is implementing a _____ _____ strategy.

Accepted Answer

The answer of In an attempt to gain additional sales...

Question 6

Strategic planning:

Accepted Answer

A)  usually involves activities of less than one year into the future. 
B)  is a desired short-range outcome. 
C)  makes a long-range match of an organization's resources with its market opportunities. 
D)  identifies potential and actual sales in each target market. 
E)  answers the question, "What business are we in?" 
A)  usually involves activities of less than one year into the future. 
B)  is a desired short-range outcome. 
C)  makes a long-range match of an organization's resources with its market opportunities. 
D)  identifies potential and actual sales in each target market. 
E)  answers the question, "What business are we in?"

Question 7

Which of the following statements about organizational strategies is True?

Accepted Answer

A)  Organizational strategies represent broad plans of action by which an organization intends to achieve its goals and fulfill its mission. 
B)  A company that has only one product does not need an organizational strategy. 
C)  The majority of companies do not develop organizational strategies because strategy formulation is an expensive and time-consuming process. 
D)  Older firms are more likely to have formalized organizational strategies than are new firms. 
E)  None of the above statements about organizational strategies is True. 
A)  Organizational strategies represent broad plans of action by which an organization intends to achieve its goals and fulfill its mission. 
B)  A company that has only one product does not need an organizational strategy. 
C)  The majority of companies do not develop organizational strategies because strategy formulation is an expensive and time-consuming process. 
D)  Older firms are more likely to have formalized organizational strategies than are new firms. 
E)  None of the above statements about organizational strategies is True.

Question 8

The Boston Consulting Group (BCG) matrix classifies a strategic business unit according to the growth rate of the industry in which it operates and:

Accepted Answer

A)  its profitability levels. 
B)  its market share relative to its competitors. 
C)  its gross sales. 
D)  the degree of difficulty involved in entering the industry in which it is competing. 
E)  the type of competitors in the industry in which it is competing. 
A)  its profitability levels. 
B)  its market share relative to its competitors. 
C)  its gross sales. 
D)  the degree of difficulty involved in entering the industry in which it is competing. 
E)  the type of competitors in the industry in which it is competing.

Question 9

General Mills saw that consumers were tired of fast food and were demanding more healthful food. When General Mills realized what consumers wanted was a sit-down seafood restaurant with moderate prices, it created the Red Lobster restaurant chain. General Mills identified a:

Accepted Answer

A)  new mission. 
B)  strategic goal. 
C)  differential advantage. 
D)  product orientation. 
E)  strategic window. 
A)  new mission. 
B)  strategic goal. 
C)  differential advantage. 
D)  product orientation. 
E)  strategic window.

Question 10

Porsche added Cayenne, "a cross between a sports car and a utility vehicle" as a new model of automobile to appeal to young customers who "always wondered what they would do once they had an infant." These young customers are identified as the _____ for the Porsche Cayenne.

Accepted Answer

A)  consumer base 
B)  target market 
C)  product audience 
D)  consumer mix 
E)  marketing mix 
A)  consumer base 
B)  target market 
C)  product audience 
D)  consumer mix 
E)  marketing mix

Question 11

A company that designs a computer with two central processing units and two memories for systems that can never afford to lose their data bases is seeking a differential advantage.

Accepted Answer

A) True 
 B)False

Question 12

Until its hostile takeover, Centerpulse was Europe's largest orthopedics manufacturer. Due to the aging of the baby boomers and increased longevity, the demand for orthopedics is growing rapidly. According to the BCG matrix, Centerpulse would be an example of a:

Accepted Answer

A)  question mark. 
B)  star. 
C)  cash cow. 
D)  problem child. 
E)  exclamation point. 
A)  question mark. 
B)  star. 
C)  cash cow. 
D)  problem child. 
E)  exclamation point.

Question 13

Theme parks, movies, retail stores, and an Internet portal are some of the divisions of the Walt Disney Co. Each division is operated as a separately identifiable entity with its own distinct mission, competitors, and managers. Each of these divisions could be classified as a:

Accepted Answer

A)  strategic business unit. 
B)  selective buying unit. 
C)  stand-alone business unit. 
D)  selling and buying unit. 
E)  derived demand unit. 
A)  strategic business unit. 
B)  selective buying unit. 
C)  stand-alone business unit. 
D)  selling and buying unit. 
E)  derived demand unit.

Question 14

The primary weakness inherent in all planning models is:

Accepted Answer

A)  oversimplification. 
B)  an overly complicated classification system. 
C)  the inability to devise any usable strategy from these models. 
D)  the encouragement of haphazard situational assessments. 
E)  the encouragement of careless allocation of resources. 
A)  oversimplification. 
B)  an overly complicated classification system. 
C)  the inability to devise any usable strategy from these models. 
D)  the encouragement of haphazard situational assessments. 
E)  the encouragement of careless allocation of resources.

Question 15

Amer Group is the world's leading manufacturer of tennis racquets, golf clubs, and Alpine skis with its Wilson brand tennis racquets and golf clubs as well as its Atomic brand ski. It also produces and sells cigarettes in Finland where it has a 75 percent share of the market. (It is licensed by Phillip Morris to produce the Phillip Morris brands in Finland.) In addition Amer Group owns Precor, a leading supplier of fitness equipment to gyms, health clubs, and private customers in the United States. A healthy cash flow from its tobacco unit allowed the conglomerate to specialize in sporting equipment. In 2002, it decided to get out of the tobacco business because it did not fit with the image of a sporting equipment supplier.
-Golfers, tennis players, and Alpine skiers are the _____ for Amer Group's Wilson brand and Atomic brand sporting equipment.

Accepted Answer

A)  consumer bases 
B)  target markets 
C)  product audiences 
D)  consumer mixes 
E)  marketing mixes 
A)  consumer bases 
B)  target markets 
C)  product audiences 
D)  consumer mixes 
E)  marketing mixes

Question 16

According to the BCG matrix, a strategic business unit (SBU) with a high market share in an industry with a high growth rate is classified as a(n):

Accepted Answer

A)  question mark. 
B)  star. 
C)  cash cow. 
D)  problem child. 
E)  exclamation point. 
A)  question mark. 
B)  star. 
C)  cash cow. 
D)  problem child. 
E)  exclamation point.

Question 17

According to the text, the first of the five steps in strategic marketing planning is to:

Accepted Answer

A)  delineate the strategic business units (SBUs). 
B)  design a strategic marketing mix. 
C)  determine marketing objectives. 
D)  select target markets. 
E)  conduct a situation analysis. 
A)  delineate the strategic business units (SBUs). 
B)  design a strategic marketing mix. 
C)  determine marketing objectives. 
D)  select target markets. 
E)  conduct a situation analysis.

Question 18

Given that the Oral-B Laboratories of the Gillette Company has a high market share in the slowly growing dental hygiene market, Oral-B can be labeled a question mark.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is described by the text as a strength inherent in all of the four planning models?

Accepted Answer

A)  They are very simple and, therefore, easy to understand. 
B)  They all encourage consistent assessment of opportunities, allocation of resources, and formulation of strategies. 
C)  When using these models, very little information is needed to locate a product or a strategic business unit on one of the grids. 
D)  They are excellent substitutes for managerial judgment and intuition. 
E)  All of the above describe strengths inherent in the four planning models. 
A)  They are very simple and, therefore, easy to understand. 
B)  They all encourage consistent assessment of opportunities, allocation of resources, and formulation of strategies. 
C)  When using these models, very little information is needed to locate a product or a strategic business unit on one of the grids. 
D)  They are excellent substitutes for managerial judgment and intuition. 
E)  All of the above describe strengths inherent in the four planning models.

Question 20

To be identified as a strategic business unit (SBU), a division or unit of a larger corporation that operates as a separate entity, should:

Accepted Answer

A)  be a monopoly. 
B)  deviate from the organizational mission statement. 
C)  share its executives with other similar units in the organization. 
D)  not have an executive group with profit responsibility. 
E)  be none of the above. 
A)  be a monopoly. 
B)  deviate from the organizational mission statement. 
C)  share its executives with other similar units in the organization. 
D)  not have an executive group with profit responsibility. 
E)  be none of the above.

Which of the following strategies from the GE business screen is most likely to be used with an SBU that is classified as a dog according to the BCG matrix?

The _____ for a dating service for young professionals reads, "Our goal is to promote fun, excitement, and a proactive approach to your personal life by providing quality lunch-date opportunities in a discrete, no-pressure atmosphere."

According to the BCG matrix, a strategic business unit (SBU) with a high market share in an industry with a low growth rate is classified as a:

In an attempt to gain additional sales from its current customers, Pizza Hut has added Buffalo wings to its menus. Pizza Hut is implementing a _ _ strategy.

Strategic planning:

Which of the following statements about organizational strategies is True?

The Boston Consulting Group (BCG) matrix classifies a strategic business unit according to the growth rate of the industry in which it operates and:

General Mills saw that consumers were tired of fast food and were demanding more healthful food. When General Mills realized what consumers wanted was a sit-down seafood restaurant with moderate prices, it created the Red Lobster restaurant chain. General Mills identified a:

Porsche added Cayenne, "a cross between a sports car and a utility vehicle" as a new model of automobile to appeal to young customers who "always wondered what they would do once they had an infant." These young customers are identified as the _____ for the Porsche Cayenne.

A company that designs a computer with two central processing units and two memories for systems that can never afford to lose their data bases is seeking a differential advantage.

Until its hostile takeover, Centerpulse was Europe's largest orthopedics manufacturer. Due to the aging of the baby boomers and increased longevity, the demand for orthopedics is growing rapidly. According to the BCG matrix, Centerpulse would be an example of a:

Theme parks, movies, retail stores, and an Internet portal are some of the divisions of the Walt Disney Co. Each division is operated as a separately identifiable entity with its own distinct mission, competitors, and managers. Each of these divisions could be classified as a:

The primary weakness inherent in all planning models is:

According to the BCG matrix, a strategic business unit (SBU) with a high market share in an industry with a high growth rate is classified as a(n):

According to the text, the first of the five steps in strategic marketing planning is to:

Given that the Oral-B Laboratories of the Gillette Company has a high market share in the slowly growing dental hygiene market, Oral-B can be labeled a question mark.

Which of the following is described by the text as a strength inherent in all of the four planning models?

To be identified as a strategic business unit (SBU), a division or unit of a larger corporation that operates as a separate entity, should:

The Field of Marketing

The Dynamic Marketing Environment

Global Markets and Marketing

Consumer Markets and Buying Behavior

Business Markets and Buying Behavior

Marketing Research and Market Information

Product Planning and Development

Product-Mix Strategies

Brands, Packaging, and Other Product Features

Services Marketing

Price Determination

Pricing Strategies

Channels of Distribution

Retailing

Wholesaling and Physical Distribution

Integrated Marketing Communications

Personal Selling and Sales Management

Advertising, Sales Promotion, and Public Relations

Marketing Implementation and Evaluation

Marketing and the Information Economy

Market Segmentation Targeting and Positioning

Filters

Exam 20: Strategic Marketing Planning

Which of the following strategies from the GE business screen is most likely to be used with an SBU that is classified as a dog according to the BCG matrix?

The _____ for a dating service for young professionals reads, "Our goal is to promote fun, excitement, and a proactive approach to your personal life by providing quality lunch-date opportunities in a discrete, no-pressure atmosphere."

According to the BCG matrix, a strategic business unit (SBU) with a high market share in an industry with a low growth rate is classified as a:

In an attempt to gain additional sales from its current customers, Pizza Hut has added Buffalo wings to its menus. Pizza Hut is implementing a _____ _____ strategy.

Strategic planning:

Which of the following statements about organizational strategies is True?

The Boston Consulting Group (BCG) matrix classifies a strategic business unit according to the growth rate of the industry in which it operates and:

General Mills saw that consumers were tired of fast food and were demanding more healthful food. When General Mills realized what consumers wanted was a sit-down seafood restaurant with moderate prices, it created the Red Lobster restaurant chain. General Mills identified a:

Porsche added Cayenne, "a cross between a sports car and a utility vehicle" as a new model of automobile to appeal to young customers who "always wondered what they would do once they had an infant." These young customers are identified as the _____ for the Porsche Cayenne.

A company that designs a computer with two central processing units and two memories for systems that can never afford to lose their data bases is seeking a differential advantage.

Until its hostile takeover, Centerpulse was Europe's largest orthopedics manufacturer. Due to the aging of the baby boomers and increased longevity, the demand for orthopedics is growing rapidly. According to the BCG matrix, Centerpulse would be an example of a:

Theme parks, movies, retail stores, and an Internet portal are some of the divisions of the Walt Disney Co. Each division is operated as a separately identifiable entity with its own distinct mission, competitors, and managers. Each of these divisions could be classified as a:

The primary weakness inherent in all planning models is:

According to the BCG matrix, a strategic business unit (SBU) with a high market share in an industry with a high growth rate is classified as a(n):

According to the text, the first of the five steps in strategic marketing planning is to:

Given that the Oral-B Laboratories of the Gillette Company has a high market share in the slowly growing dental hygiene market, Oral-B can be labeled a question mark.

Which of the following is described by the text as a strength inherent in all of the four planning models?

To be identified as a strategic business unit (SBU), a division or unit of a larger corporation that operates as a separate entity, should:

The Field of Marketing

The Dynamic Marketing Environment

Global Markets and Marketing

Consumer Markets and Buying Behavior

Business Markets and Buying Behavior

Marketing Research and Market Information

Product Planning and Development

Product-Mix Strategies

Brands, Packaging, and Other Product Features

Services Marketing

Price Determination

Pricing Strategies

Channels of Distribution

Retailing

Wholesaling and Physical Distribution

Integrated Marketing Communications

Personal Selling and Sales Management

Advertising, Sales Promotion, and Public Relations

Marketing Implementation and Evaluation

Marketing and the Information Economy

Market Segmentation Targeting and Positioning

Filters

In an attempt to gain additional sales from its current customers, Pizza Hut has added Buffalo wings to its menus. Pizza Hut is implementing a _ _ strategy.