Deck 12: Leveraging the Business

Question 1

Three steps to determine which assets and competencies should be leveraged were suggested. The first was to inventory assets and competencies, the second was to find an area where the assets and competencies can be applied to generate advantage and the third was to analyze the potential synergy.

Answer 1

False

Question 2

Brand extension evaluation asks three questions according to the book. Which of the following is not a brand extension question among the three?

A) Will the brand extension be profitable?
B) Will the extension enhance the brand name and image?
C) Does the brand fit the new context?
D) Does the brand add value to the offering in the new product class?

Answer 2

A

Question 3

When there is a real potential synergy, it will happen-otherwise it will simply be a hope.

Answer 3

False

Question 4

Sub brands and endorsed brands are created when the parent company wants to prevent existing brands from damage and when an entirely new brand is not feasible based on lack of resources.

Question 5

According to the book, market development is based on the premise that the right people are available for implementing the leveraged business.

Question 6

Four questions were suggested in the book as being a good source of growth options. One was asking whether brand extensions are possible. Another was whether new distribution channels are available.

Question 7

Budget Rent-A-Car experienced a surge of growth by entering the rental truck and travel arena.

Question 8

Entering into new markets or launching new products are met with the challenges of resistance to new products, lack firm's assets and competencies in the new product's market and organizational access to resources necessary for launches.

Question 9

According to Zook around one-third of successful sustainable growth companies had one or two repeatable formulas.

Question 10

In leveraging an existing brand to move into a new market, the new brand may seek distance and autonomy from the existing brand. However with that distance, the risk of the venture increases.

Question 11

One-stop financial services was a winning strategy in the 1980s.

Question 12

Philip Morris was successful with 7-Up because of its distribution clout.