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 child D

Question 2

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 3

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 departments A

Question 4

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.

Question 5

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 myopia

Question 6

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.

Question 7

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.

Question 8

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.

Question 9

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.

Question 10

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 11

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.

Question 12

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.

Question 13

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 14

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 audit

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

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 integration

Question 17

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 18

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)   Divest

Question 19

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.

Question 20

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 methods

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.

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

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

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

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?

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

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

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?

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

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

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:

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

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.

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?

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

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.

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

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?

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