Question 1

Novartis,a Swiss drug maker,is planning to purchase a majority stake in Zhejiang Tianyuan Bio-Pharmaceutical Company,a Chinese vaccine maker.Novartis has agreed to pay $125 million for the company that holds a 3% share of China's $1 billion vaccines market.The market for vaccines is growing 20% or more in developing nations of Asia,Africa,and Australasia.In the past,vaccine use has been limited to basic shots against diseases such as polio,tuberculosis,and measles,but as the economies of these countries grow,government and private healthcare spending focuses on preventing diseases such as hepatitis B,cholera and rotavirus,tetanus,and others.Some critics are against the acquisition,claiming that prices will increase.Novartis claims it is not interested in raising prices but rather to expand Tianyuan's product offering
-Refer to Novartis.Tianyuan has a relatively small market share of a high-growth market in China.How would this company be classified in Novartis' portfolio model?

Accepted Answer

A)  Problem child 
B)  Star 
C)  Cash cow 
D)  Dog 
E)  Emergent

Question 2

Of the following,what is the most useful objective for Purina cat food?

Accepted Answer

A)  To increase sales of Purina brand cat food by 15 percent over 2010 sales of $300 million. 
B)  To increase sales of Purina brand cat food between January 1,2010 and December 31,2010. 
C)  To increase sales of Purina brand cat food from $300 million to $345 million. 
D)  To increase sales of Purina Brand cat food. 
E)  To increase sales of Purina pet food.

Question 3

The SWOT acronym refers to a firm's analysis of its:

Accepted Answer

A)  sales,width of product mix,observations,and technology 
B)  situations,wealth,organizational strengths,and target markets 
C)  strengths,weaknesses,opportunities,and threats 
D)  service levels,willingness to spend,organizational culture,and total revenues 
E)  strategies,willingness to change,objectives,and trends

Question 4

Years ago,Arm & Hammer baking soda convinced millions of homemakers that their product could be effective in keeping refrigerators smelling fresh.After years of languishing sales,this campaign led to a huge increase in sales of a simple,basic product.This is a classic example of a _____ strategy.

Accepted Answer

A)  market development 
B)  product development 
C)  market penetration 
D)  product penetration 
E)  divestment

Question 5

A subgroup of a single business or a collection of related businesses within the larger organization is called a(n):

Accepted Answer

A)  conglomerate 
B)  joint venture 
C)  strategic business unit (SBU) 
D)  oligarchy 
E)  strategic alliance

Question 6

What is a marketing objective? Name three criteria for good marketing objectives.Use the criteria to write an objective for a business with which you are familiar.

Accepted Answer

The answer of What is a marketing objective? Name three...

Question 7

The marketing plan is a written document that acts as a guidebook of marketing activities for a marketing manager.

Accepted Answer

A) True 
 B)False

Question 8

The company that manufactures Molson beer,which is typically consumed by males,launched an alcoholic lemonade beverage to attract more females.This launch of a new product to attract a new market for Molson's products is an illustration of a _____ strategy.

Accepted Answer

A)  market development 
B)  market penetration 
C)  product penetration 
D)  product development 
E)  diversification

Question 9

The Hallmark Company was inspired by the popularity of Jan Karon's best-selling novels about Mitford,a fictional town in the mountains of North Carolina,to develop a new line of products for Hallmark Gold Crown Stores nationwide.Hallmark created hundreds of Mitford-inspired products that authentically bring "the little town with the big heart" into tangible reality.The products include greeting cards,partyware and gift wrap,mugs,and puzzles for Hallmark's existing customers.Hallmark used a _____ strategy.

Accepted Answer

A)  market development 
B)  market penetration 
C)  product penetration 
D)  product development 
E)  diversification

Question 10

Patents on prescription medications give pharmaceutical companies that own the patents a(n)_____ for 17 years until the patent expires.

Accepted Answer

A)  targeted market position 
B)  sustainable competitive advantage 
C)  strategic focus 
D)  situational strength 
E)  opportunistic privilege

Question 11

Stump's Hot Olives are manufactured by a family business in Wisconsin and are sold in Midwestern grocery stores,through mail order,and to a few local restaurants.The company has been in operation since 1998 and relies on labor from family and friends to produce and package olives in attractive,reusable glass containers.They use store demonstrations to introduce their spicy olives to new customers.Discuss how this company can establish or maintain at least one of the three types of competitive advantage.

Accepted Answer

The answer of Stump's Hot Olives are manufactured by a...

Question 12

Canon began as a camera-making company but has since become a company that produces a wide range of office equipment in addition to cameras.Canon's managers evidently believe in growth through:

Accepted Answer

A)  market penetration 
B)  diversification 
C)  product development 
D)  market development 
E)  market integration

Question 13

A competitive advantage is the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.

Accepted Answer

A) True 
 B)False

Question 14

LVMH,a maker of luxury-goods,has expanded its products offerings into China,Russia,India,and the Middle East.This exemplifies a _____ strategy.

Accepted Answer

A)  market development 
B)  product development 
C)  market penetration 
D)  diversification 
E)  product expansion

Question 15

If market share is maintained,stars are likely to grow into:

Accepted Answer

A)  weak sisters 
B)  problem children 
C)  cash cows 
D)  top dogs 
E)  constellations

Question 16

General Electric has a financing business called GE Capital,which has its own mission,products,services,and strategic plans separate from the parent organization.GE Capital is an example of a(n):

Accepted Answer

A)  organizational level 
B)  SWOT 
C)  secure business unit 
D)  diversified division 
E)  strategic business unit

Question 17

Russell Athletic,which is part of Berkshire Hathaway,Inc. ,is a market leader in sports apparel,an industry that is growing rapidly.Russell Athletic is an example of a(n)_____ according to the portfolio model.

Accepted Answer

A)  star 
B)  question mark 
C)  problem child 
D)  exclamation point 
E)  widow

Question 18

In the General Electric model,SBUs that have low overall attractiveness should be avoided if the organization is not already serving them.

Accepted Answer

A) True 
 B)False

Question 19

Lands' End guarantees its products for as long as you own them.The company would seem most concerned with which element of the marketing mix?

Accepted Answer

A)  Price 
B)  Distribution 
C)  Personalization 
D)  Promotion 
E)  Product

Question 20

The _____ is a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.

Accepted Answer

A)  market audit 
B)  portfolio model 
C)  experience matrix 
D)  market development analysis 
E)  market opportunity analysis

Exam 2: Strategic Planning for Competitive Advantage

Of the following,what is the most useful objective for Purina cat food?

The SWOT acronym refers to a firm's analysis of its:

Years ago,Arm & Hammer baking soda convinced millions of homemakers that their product could be effective in keeping refrigerators smelling fresh.After years of languishing sales,this campaign led to a huge increase in sales of a simple,basic product.This is a classic example of a _____ strategy.

A subgroup of a single business or a collection of related businesses within the larger organization is called a(n) :

What is a marketing objective? Name three criteria for good marketing objectives.Use the criteria to write an objective for a business with which you are familiar.

The marketing plan is a written document that acts as a guidebook of marketing activities for a marketing manager.

The company that manufactures Molson beer,which is typically consumed by males,launched an alcoholic lemonade beverage to attract more females.This launch of a new product to attract a new market for Molson's products is an illustration of a _____ strategy.

Patents on prescription medications give pharmaceutical companies that own the patents a(n) _____ for 17 years until the patent expires.

Canon began as a camera-making company but has since become a company that produces a wide range of office equipment in addition to cameras.Canon's managers evidently believe in growth through:

A competitive advantage is the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.

LVMH,a maker of luxury-goods,has expanded its products offerings into China,Russia,India,and the Middle East.This exemplifies a _____ strategy.

If market share is maintained,stars are likely to grow into:

General Electric has a financing business called GE Capital,which has its own mission,products,services,and strategic plans separate from the parent organization.GE Capital is an example of a(n) :

Russell Athletic,which is part of Berkshire Hathaway,Inc. ,is a market leader in sports apparel,an industry that is growing rapidly.Russell Athletic is an example of a(n) _____ according to the portfolio model.

In the General Electric model,SBUs that have low overall attractiveness should be avoided if the organization is not already serving them.

Lands' End guarantees its products for as long as you own them.The company would seem most concerned with which element of the marketing mix?

The _____ is a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.