Deck 9: Strategy Implementation

Question 1

An example of a marketing decision is whether or not to limit the share of business done with a single customer.

Answer 1

True

Question 2

Which two variables rank as marketing's most important contributions to strategic management?

A)Diversification and budgeting
B)Marketing penetration and competition
C)Competition and collaboration
D)Product development and market development
E)Market segmentation and product positioning

Answer 2

E

Question 3

What makes market segmentation an important variable in strategy implementation?

A)It allows a small firm to compete successfully with a large firm.
B)It allows a firm to operate with limited resources.
C)New or improved market-segmentation approaches are required for the successful execution of market development & market penetration.
D)Market segmentation decisions directly affect marketing mix variables.
E)All of the above

Answer 3

E

Question 4

Matching which factors would allow factories to produce desirable levels without extra shifts,overtime,or subcontracting?

A)Markets and competitors
B)Competition and positioning
C)Customer behavior and positioning
D)Supply and demand
E)Segments and competitors

Question 5

The online community of customers increasingly mirrors the offline community but is much quicker,cheaper,and effective to reach than traditional focus groups and surveys.

Question 6

Subdividing a market into distinct subsets of customers according to their needs and buying habits is known as

A)market penetration.
B)product diversification.
C)market segregation.
D)market segmentation.
E)positioning.

Question 7

Which of the following variables is NOT directly affected by market segmentation?

A)Product
B)Place
C)Process
D)Promotion
E)Price

Question 8

Why is market segmentation an important variable in the strategy-implementation process?

A)Company strategies do not require increased sales through new markets and products.
B)It allows a firm to operate with no resources.
C)It directly affects marketing mix variables.
D)It allows a firm to minimize per-unit profits and per-segment sales.
E)All of the above

Question 9

Market segmentation can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits.

Question 10

There are five component variables in the marketing mix: product,place,promotion,price,and people.

Question 11

Although there are many marketing activities that impact the success or failure of strategy-implementation efforts,three activities are indicated in the text as being especially important.What are these three activities? Discuss why they are so important.

Question 12

Market penetration can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits.

Question 13

The online community of customers is more expensive to reach than traditional focus groups and surveys.

Question 14

With market segmentation,a firm can better operate with limited resources.

Question 15

All of the following are true EXCEPT

A)marketing has evolved to be more about building a two-way relationship with consumers.
B)in 2015 the number of LinkedIn users was closer to the number of Facebook users than to the number of Twitter users.
C)the online community of customers is much quicker,cheaper,and effective to reach than traditional focus groups and surveys.
D)successful strategy implementation requires a firm to know what people are saying about it and its products.
E)company websites should enable customers to interact with the firm on a variety of social media networks.

Question 16

Which variable would be considered part of the "product" element of the marketing mix?

A)Advertising
B)Packaging
C)Payment terms
D)Inventory levels and location
E)Publicity

Question 17

Seemingly minor ethical and questionable actions can catapult these days into huge public relations problems for companies as a result of the monumental online social and business communications.

Question 18

Name five strategic marketing issues or decisions.

Question 19

All of the following are strategic marketing issues or decisions EXCEPT

A)to be a price leader or a price follower.
B)to use operating leverage.
C)to offer a complete or limited warranty.
D)to use heavy,light,or no TV advertising versus online advertising.
E)to use exclusive dealerships or multiple channels of distribution.

Question 20

Which variable would be considered part of the "place" element of the marketing mix?

A)Product line
B)Service level
C)Personal selling
D)Sales territory
E)Discounts and allowances

Question 21

Which of these is NOT a rule for using product positioning as a strategy-implementation tool?

A)Look for the hole or vacant niche,a segment of the market currently not being served.
B)Do not serve two segments with the same strategy.
C)Position yourself in the middle of the map,if you are one of only two competitors.
D)Position yourself in the middle of the map,if there are more than two competitors.
E)All of these are rules for using product positioning as a strategy-implementation tool.

Question 22

An area on a perceptual map where there is a cluster of ideal points indicates a market segment.

Question 23

Which is NOT a required step in perceptual mapping?

A)Select key criteria that effectively differentiate products or services in the industry.
B)Serve two segments with the same strategy.
C)Plot major competitors' products or services in the resultant matrix.
D)Identify areas in the positioning map where the company's products or services could be most competitive in the given target market.
E)Develop a marketing plan to position the company's products and services appropriately.

Question 24

Segmenting industrial markets is generally simpler and easier than segmenting consumer markets.

Question 25

The most common bases for segmenting markets are geographic and demographic.

Question 26

Multidimensional scaling is used in

A)determining the size of a new building.
B)determining the size of a new department.
C)evaluating the amount of high-tech equipment a firm needs.
D)perceptual mapping.
E)market segmentation.

Question 27

It is okay for firms to create expectations that are slightly above the service the firm can or will offer,in order to create an effective product-positioning strategy.

Question 28

A firm can usually serve two or more market segments with the same strategy.

Question 29

Which of the following is true about two different market segments?

A)They can usually be served with the same marketing strategy.
B)They usually require different marketing strategies.
C)They are always in different geographic locations.
D)They are usually interchangeable.
E)All of the above

Question 30

An area on a perceptual map without ideal points indicates a

A)market segment.
B)demand void.
C)vacant niche.
D)multidimensional scale.
E)product reposition.

Question 31

Matching competition and positioning factors would allow factories to produce desirable levels without extra shifts,overtime,or subcontracting.

Question 32

Segmentation often reveals that large,random fluctuations in demand actually consist of several small,predictable,and manageable patterns.

Question 33

Multidimensional scaling involves examining three or more criteria simultaneously in a product-positioning analysis.

Question 34

In general,the Internet makes market segmentation easier.

Question 35

After segmenting markets so a firm can target particular customer groups,the next step is to find out what customer groups want and expect.

Question 36

Serving two segments with the same strategy is not a step in perceptual mapping.

Question 37

Perceptual mapping entails developing schematic representations that reflect how your products or services compare to competitors' on dimensions most important to success in the industry.

Question 38

Packaging is considered part of the "product" element of the marketing mix.

Question 39

The most common bases for segmenting markets are geographic and product.

Question 40

What entails developing schematic representations that reflect how your products or services compare to competitors' on dimensions most important to success in the industry?

A)Perceptual mapping
B)Market segmentation
C)Market penetration
D)Unrelated diversification
E)Capital budgeting

Question 41

Although acquiring needed capital can be an important task,it is not seen as central to strategy implementation.

Question 42

In low earning periods,too much debt in the capital structure of an organization can endanger stockholders' returns and jeopardize company survival.

Question 43

Too much debt in the capital structure of an organization can endanger stockholders' returns and jeopardize company survival,particularly in periods of high earnings.

Question 44

A reason for concern about the dilution of ownership is the possibility of hostile takeover.

Question 45

In low-earning periods,too much ________ in the capital structure of an organization can endanger stockholders' return and jeopardize company survival.

A)debt
B)liquidity
C)equity
D)cash
E)tax liability

Question 46

What tends to become a more attractive financing technique when interest rates are high?

A)Stock issuance
B)Debt
C)Cost cutting
D)Borrowing
E)Staying privately owned

Question 47

When additional stock is issued to finance implementation of strategy,the existing stockholders' ownership and control of the enterprise are strengthened.

Question 48

Additional capital is often required for successful strategy implementation.

Question 49

Discuss the three rules mentioned in the text for using product positioning as a strategy-implementation tool.

Question 50

To be a price leader or a price follower is a decision that may require finance/accounting policies.

Question 51

Return on Assets is the most widely used technique for determining whether debt,stock,or a combination of debt and stock is the best alternative for raising capital to implement strategies.

Question 52

Which one of the following statements regarding stock issuances is true?

A)They are not always better than debt for raising capital.
B)Their effect on stock price is not a concern.
C)They do not require a company to share future earnings with new shareholders.
D)Dilution of ownership is not a special concern.
E)None of these statements regarding stock issuance is true

Question 53

Stock issuances are always better than debt for raising capital.

Question 54

The primary sources of capital are known as debt and EPS.

Question 55

Name three finance and accounting activities especially important in strategy implementation.

Question 56

Name five examples of finance and accounting decisions that may require policies.

Question 57

What is the most widely used technique for determining the best combination of debt and stock?

A)Debt-to-Stock Ratio
B)Earnings Per Share/Earnings Before Interest and Taxes Analysis
C)Gross Profit Analysis
D)Capital Asset Pricing Model
E)Present Value Analysis

Question 58

After completing an EPS/EBIT analysis,what conclusions would you make if the debt line is above the stock line throughout the range of EBIT on the graph?

A)Debt appears to be the best financing alternative.
B)Stock would be the best financing alternative.
C)A combination of debt and stock is probably the best financial alternative.
D)Dividends must be considered before conclusions can be made.
E)The company should be privately owned.

Question 59

Which of the following is NOT given as an example of a decision that may require finance/accounting policies?

A)To extend the time of accounts receivable
B)To establish a certain percentage discount on accounts within a specified period of time
C)To lease or buy fixed assets
D)To use LIFO,FIFO,or a market-value accounting approach
E)To be a price leader or a price follower

Question 60

An EPS/EBIT chart can be constructed to determine the break-even point,where one financing alternative becomes more attractive than another.

Question 61

If a firm incurs a loss during a particular year,or if the firm paid out more in dividends than it had in net income,what happens to the retained earnings (RE)amount?

A)It increases.
B)It is unchanged.
C)It decreases.
D)It doubles.
E)It cannot be determined from the information given.

Question 62

In preparing projected statements,to project cost of goods sold in the income statement,which of these methods is recommended?

A)Net Worth Method
B)Net Income Method
C)Percentage-of-Sales Method
D)Price-Earnings Ratio method
E)Outstanding Shares Method

Question 63

The first step in performing projected financial analysis is to

A)prepare the projected balance sheet.
B)take an inventory of goods.
C)estimate increases in debt.
D)forecast sales as accurately as possible.
E)calculate the projected net income.

Question 64

In projected financial statements,what is used as a plug figure?

A)Retained earnings
B)Fixed assets
C)The Cash Account
D)Long-term liabilities
E)Stockholders' equity

Question 65

The effects of the Sarbanes-Oxley Act include increased inflation of financial projections.

Question 66

What is a central strategy-implementation technique that allows an organization to examine the expected results of various strategy implementation decisions?

A)EPS/EBIT
B)Financial budgeting
C)TOWS analysis
D)Projected financial statement analysis
E)External analysis

Question 67

The amount by which retained earnings changes is obtained by subtracting

A)any dividends to be paid for that year from net income.
B)net income from EBIT.
C)taxes from EBIT.
D)interest expense from EBIT.
E)EBIT from CGS.

Question 68

Which element in the projected income statement CANNOT be forecasted using the percentage-of-sales method?

A)Cost of goods sold
B)Selling expense
C)Administrative expense
D)Interest expense
E)All of these items can be forecasted using the percentage-of-sales method.

Question 69

A benefit of using projected balance sheets and income statements is that

A)the impact of various implementation decisions can be forecasted.
B)money can be put aside to pay future income taxes.
C)insurance needs can be computed.
D)it is useful in analyzing past performance.
E)all of the above

Question 70

The percentage-of-sales method should be used for projecting interest and taxes,but not dividends,in the income statements.

Question 71

Which method of determining a firm's net worth divides the market price of the firm's stock by the annual earnings per share,and multiplies this number by the firm's average net income for the past five years?

A)Debt/Equity Method
B)Current Ratio Method
C)Price-Earnings Ratio Method
D)Long-term Asset Method
E)Outstanding Shares Method

Question 72

The Sarbanes-Oxley Act has eliminated the problem of firms inflating their financial projections,so stakeholders no longer have to worry about the reliability of the financial projections of different companies.

Question 73

Projected financial analysis is an important strategy-implementation technique because

A)it is an exact measurement of financial costs in the future.
B)it is an exact measurement of future company profits.
C)it allows an organization to examine the expected results of strategies being implemented.
D)insurance needs can be computed.
E)none of the above

Question 74

Which is NOT a step in performing a projected financial analysis?

A)Prepare the projected income statement before preparing the balance sheet
B)Forecast sales as accurately as possible
C)Use the percentage-of-sales method to project CGS
D)Subtract from the net income any dividends to be paid for that year and bring this retained earnings amount over to the balance sheet
E)Use the revenue account as the plug figure

Question 75

A projected financial analysis can be used to forecast the impact of various implementation decisions.

Question 76

Which item is included in net worth?

A)Retained earnings
B)Common stock
C)Additional paid-in-capital
D)All of the above are included in net worth.
E)None of the above are included in net worth.

Question 77

When performing projected financial analysis,the balance sheet should be prepared before the income statement.

Question 78

The percentage-of-sales method should be used for projecting the cost of goods sold in the income statements.

Question 79

Which of the following is NOT an accepted approach for determining a business's worth?

A)The Net Worth Method
B)The Net Income Method
C)The Return on Investment Method
D)The Price-Earnings Ratio Method
E)The Outstanding Shares Method

Question 80

The cash account is used as the plug figure in projected balance sheets.