Deck 3: Strategic Market Planning

Question 1

Strategic planning for a large firm such as Disney with several SBUs probably occurs ________.

A) only in its corporate headquarters
B) only at the individual business unit level
C) at both the overall corporate level and at the individual SBU level
D) as needed based upon the success of each division
E) at each location on a quarterly basis

Answer 1

C

Question 2

________ is the managerial decision process that matches the organization's resources and capabilities to its market opportunities for long-term growth.

A) Operational planning
B) Strategic planning
C) Portfolio analysis
D) SWOT analysis
E) Budgeting

Answer 2

B

Question 3

SBU stands for ________.

A) strategic buying utilities
B) successful business utilities
C) strategic business units
D) standard business units
E) successful business units

Answer 3

C

Question 4

A detailed quarterly plan that states how many units of product each salesperson on the team needs to sell per month is an example of a(n) ________.

A) business plan
B) financial plan
C) strategic plan
D) functional plan
E) operational plan

Question 5

Vice presidents of large companies are typically in charge of ________ planning.

A) business
B) strategic
C) operational
D) functional
E) day-to-day

Question 6

________ is the first, or "big picture," level of planning.

A) Strategic planning
B) Functional planning
C) Operational planning
D) Product development
E) Business planning

Question 7

Which of the following is true about business planning?

A) Business planning involves taking action before developing objectives.
B) Business planning is an ongoing process.
C) Business planning is concerned with the long term but not the short term.
D) Business planning is concerned with the short term but not the long term.
E) Business planning takes place after development of the marketing plan.

Question 8

The three levels of business planning are ________.

A) managerial, operational, and promotional
B) strategic, functional, and operational
C) portfolio, strategic, and functional
D) SWOT, strategic, and tactical
E) operational, functional, and tactical

Question 9

Orkin Pest Control Service knows homeowners skimp on maintenance such as pest control during recessions. It also knows that the more consumers know about bugs, the more likely they are to buy the company's services. So Orkin teamed with the Smithsonian Institution on the Insect Safari, a traveling exhibit designed to teach people about the critters. The Safari truck visited 108 cities during one year, leaving a wake of creeped-out insectophobes reaching for the phone numbers of the local Orkin franchise. Business increased in each city the Safari truck visited. Decisions on which cities to visit and what kinds of promotion to use in each city visited are both examples of ________ plans.

A) functional
B) portfolio
C) operational
D) strategic
E) control

Question 10

Market planning is a type of ________.

A) day-to-day planning
B) financial planning
C) strategic planning
D) independent planning
E) functional planning

Question 11

A(n) ________ is a document that describes the marketing environment, outlines the marketing objectives and strategies, and identifies how the company will implement the strategies.

A) marketing plan
B) communications plan
C) business plan
D) operational plan
E) financial plan

Question 12

A business plan ________.

A) is a document that outlines marketing strategies step by step
B) identifies how a company will measure and control specific marketing strategies
C) is another name for a marketing plan
D) includes the decisions that guide the entire organization or its business units
E) is another name for a SWOT analysis

Question 13

Columbia Sportswear makes nylon activewear. Its marketing manager set a goal to increase sales 12 percent over the next three years through the introduction of a new line of comfortable, lightweight clothing for people who fish. The marketing manager is engaged in ________.

A) operational planning
B) strategic planning
C) control planning
D) portfolio planning
E) functional planning

Question 14

Kimball Gardens is a company that operates as two distinct businesses: one that sells lawn and garden products and one that markets booklets. Each business is called a ________.

A) separate entity
B) strategic business unit (SBU)
C) cash cow
D) star
E) business portfolio

Question 15

Which of the following types of managers would be most likely to engage in operational planning on a regular basis?

A) the company's CEO
B) the company's sales manager
C) the company's vice president of product research and development
D) the company's vice president of human resources
E) the company's chief financial officer

Question 16

Which of the following is true about functional planning?

A) It is conducted by the various functional areas of a firm.
B) It is also called hierarchical management.
C) It covers a longer time span than strategic planning does.
D) It covers a shorter time span than operational planning does.
E) It is the same as strategic planning.

Question 17

A sales manager sets an objective for her team to increase the units sold by five percent for the quarter. This objective is most likely part of a detailed ________ plan that is created annually, semiannually, or quarterly.

A) strategic
B) functional
C) operational
D) product development
E) human resources

Question 18

The CEO, president, and top executive officers are responsible for ________ in the strategic plan.

A) operational planning
B) developing the details of the pricing strategy
C) designing ad campaigns
D) defining the firm's purpose
E) determining employee benefits

Question 19

Areas of business within a firm that are distinct enough to have their own missions, business objectives, resources, managers, and competitors are referred to as ________.

A) strategic business units
B) market development units
C) market penetration units
D) standard business units
E) competitive intelligence units

Question 20

________ is the third, or "nuts-and-bolts," level of planning.

A) Strategic planning
B) Functional planning
C) Operational planning
D) Product development
E) Business planning

Question 21

A firm's internal business environment does NOT include its ________.

A) employees
B) patents
C) products
D) technologies
E) customers

Question 22

Business planning is a process of making decisions that guide the firm in both the short and the long term.

Question 23

A chief marketing officer is more likely to be in charge of strategic planning rather than functional planning.

Question 24

Why is it important for all business planning to be integrated?

Question 25

Questions such as "What business are we in?" and "What customers should we serve?" are typically addressed in the ________ stage.

A) operational planning
B) strategic planning
C) market targeting
D) functional planning
E) market planning

Question 26

A mission statement is a formal document that describes the organization's overall purpose and what it hopes to achieve in terms of its products, resources, and ________.

A) customers
B) profits
C) employees
D) shareholders
E) competitors

Question 27

Columbia Sportswear has introduced a new line of comfortable, lightweight clothing for people who fish. An example of ________ is the decision to run a full-page ad in Field & Stream magazine in May to get potential customers to ask their sporting goods stores to carry the new products.

A) operational planning
B) strategic planning
C) business planning
D) portfolio planning
E) brand extension

Question 28

Planning means that an organization develops objectives while in the process of taking action.

Question 29

Strategic business units (SBUs) are individual units representing different areas of business within a firm that have their own missions, business objectives, resources, managers, and competitors.

Question 30

A manager's decision to run a quarter-page ad in the business section of the local newspaper to promote goodwill toward his company is part of an operational plan.

Question 31

Analysis of a firm's internal environment identifies the firm's ________.

A) strengths and weaknesses
B) strengths and opportunities
C) opportunities and threats
D) weaknesses and threats
E) strengths and threats

Question 32

The market planning process should be completed before the strategic planning process begins.

Question 33

In firms with multiple SBUs, the first step in strategic planning is for top management to ________.

A) recruit and hire the right personnel
B) examine historical data
C) establish a mission for the entire corporation
D) allocate resources to the company's various SBUs
E) establish marketing's short-term objectives

Question 34

The second step in strategic planning is to ________.

A) formalize a mission statement
B) establish the business portfolio
C) set SBU and department-level objectives
D) set organizational objectives
E) assess the organization's internal and external environments

Question 35

Compare and contrast strategic planning and operational planning.

Question 36

The ________ for PepsiCo is "to be the world's premier consumer products company focused on convenient foods and beverages."

A) operational plan
B) mission statement
C) portfolio analysis
D) market penetration strategy
E) diversification strategy

Question 37

Strategic planning is also referred to as functional planning.

Question 38

A situation analysis is also known as a(n) ________.

A) environmental analysis
B) portfolio analysis
C) market review
D) growth strategy review
E) action plan

Question 39

Explain how business planning helps managers in a firm.

Question 40

How is business planning different in a large firm in comparison to business planning in a small company?

Question 41

Within a larger corporation, each SBU ________.

A) has its own business portfolio
B) has access to equal resources
C) has separate shareholders
D) is a separate profit center
E) is dependent upon central management for a mission statement

Question 42

Each year, a media company asks every department manager to rate his or her department's strengths and weaknesses as well as those of the other departments with which the department interacts. Then each department manager is asked what he or she sees as the greatest threats and opportunities for the company. The media company is asking its department managers to engage in a ________.

A) SWOT analysis
B) portfolio analysis
C) market analysis
D) functional planning session
E) compatibility assessment

Question 43

According to the BCG growth-market share matrix, ________ are strategic business units with products that have a dominant market share in a high-growth market.

A) problem children
B) exclamation points
C) cash cows
D) stars
E) question marks

Question 44

When Amazon acquired Whole Foods, the brick-and-mortar supermarket, the company was pursuing a ________ strategy.

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

Question 45

Effective objectives should be all of the following EXCEPT which one?

A) aspirational
B) specific
C) attainable
D) sustainable
E) measurable

Question 46

A growth strategy that attracts users of competitive brands is called a ________ strategy.

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

Question 47

The BCG growth-market share matrix measures which of the following?

A) the depth and breadth of a firm's different product lines
B) a firm's internal strengths and external opportunities
C) a firm's internal weaknesses and external threats
D) the market growth rate and the relative market share of a firm's SBUs
E) opportunities for growth in markets and the relative risk of different investments

Question 48

Annie's Homegrown markets organic prepared and easy-to-prepare foods and snacks, from macaroni and cheese to their signature bunny crackers. The company's ________ is "to cultivate a healthier and happier world by spreading goodness through nourishing foods, honest words and conduct that is considerate and forever kind to the planet."

A) market penetration strategy
B) marketing development strategy
C) business portfolio
D) value-delivery network
E) mission

Question 49

Analysis of the external environment of an organization identifies the organization's ________.

A) strengths and weaknesses
B) strengths and opportunities
C) opportunities and threats
D) weaknesses and threats
E) strengths and threats

Question 50

________ strategies introduce a firm's current products into new markets.

A) Diversification
B) Market penetration
C) Market development
D) Product development
E) Cash cow

Question 51

The ________ provides managers with four different fundamental marketing strategies: market penetration, market development, product development, and diversification.

A) BCG growth-market share matrix
B) portfolio analysis
C) strategic plan
D) SWOT analysis
E) product-market growth matrix

Question 52

Which of the following is a limitation of the BCG matrix?

A) It doesn't help managers determine which SBUs need investment to grow.
B) It doesn't help managers determine which SBUs should be dropped from the portfolio.
C) It focuses on the future of the market rather than current conditions.
D) It doesn't tell managers the best ways to make growth happen.
E) It can't be used by corporations with multiple SBUs.

Question 53

An SBU fits into the ________ category of the BCG model when sales have been steady and the firm has a large market share it can sustain with minimal funding.

A) exclamation point
B) dog
C) cash cow
D) star
E) question mark

Question 54

There are ________ different types of SBUs represented within the BCG growth-market share matrix.

A) two
B) three
C) four
D) five
E) six

Question 55

According to the BCG growth-market share matrix, ________ are strategic business units with products that have a small share of a slow-growth market.

A) dogs
B) exclamation points
C) cash cows
D) stars
E) question marks

Question 56

According to the BCG growth-market share matrix, ________ are strategic business units with products that have a dominant market share in a low-growth potential market.

A) dogs
B) exclamation points
C) cash cows
D) stars
E) question marks

Question 57

________ is a tool management uses to assess the potential of a firm's business portfolio. It helps management decide how to allocate resources among the firm's current SBUs.

A) SWOT analysis
B) Portfolio analysis
C) A PERT chart
D) An operational plan
E) A promotional strategy

Question 58

The growth-market share matrix developed by the Boston Consulting Group (BCG) is a type of ________.

A) SWOT analysis
B) portfolio analysis
C) value chain
D) situational analysis
E) compatibility assessment

Question 59

________ strategies emphasize both new products and new markets to achieve growth.

A) Diversification
B) Market penetration
C) Market development
D) Product development
E) Cash cow

Question 60

According to the BCG growth-market share matrix, ________ are strategic business units with products that have low market shares in fast-growth markets.

A) dogs
B) exclamation points
C) cash cows
D) stars
E) question marks

Question 61

Unilever makes Rexona deodorant and antiperspirant, a leading brand of deodorant and antiperspirant. Because the worldwide market for deodorants and antiperspirants is growing rapidly, Rexona would be classified as a ________ on the BCG growth-market share matrix.

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

Question 62

The market for two-way radios is disappearing. A company with a small share of the two-way radio market would be considered a ________ in terms of the BCG growth-market share matrix.

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

Question 63

The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. In order to increase market share, managers would be most likely to decide which of the following?

A) retain the pharmaceuticals division's share
B) implement a harvest strategy
C) use money from a cash cow to promote the pharmaceuticals division
D) divest the SBU
E) diversify the pharmaceutical division

Question 64

Argo is the world's leading brand of small vehicles that are designed to be driven on all types of terrain and in all types of weather. The vehicles can carry up to six passengers. The market for such vehicles is no longer growing due to the recent economic downturn. In terms of the BCG growth-market share matrix, Argo would be classified as a ________.

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

Question 65

Fence Patrol has developed an entirely new mounting system for chain link fences. Although they are a local company, through the acquisition of a distributor they now have the ability to market their products nationwide. Fence Patrol will most likely use a ________ strategy.

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

Question 66

Employee morale, promotion strategies, and competitors' reactions are all aspects of a company's internal environment.

Question 67

John H. Harland Company is a large company with 5,200 employees and almost $800 million in annual sales. The company is best known for printing personal and business checks. Harland Analytical Services is a technology company that produces software that enables banks to gauge the behavior of their customers by tracking their spending habits. In addition, Harland owns Scantron, a computerized testing and assessment company. The ________ for John H. Harland Company includes its check-printing business, its financial software business, and its testing and assessment business.

A) business portfolio
B) marketing mix
C) market penetration
D) functional plan
E) market classification

Question 68

When the makers of a ballpoint pen state they are in the communication equipment business, they are defining their mission too ________.

A) narrowly
B) realistically
C) specifically
D) broadly
E) socially

Question 69

A media company has a high market share in the CD market. The CD market has low growth potential. This business fits into the ________ category of the BCG growth-market share matrix.

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

Question 70

Biopure is a company that manufactured and marketed oxygen therapeutics. Its products were Hemopure for human use and Oxyglobin for animal use. Both were developed as alternatives to red blood cell transfusions. Which of the following was part of Biopure's internal environment?

A) approval by the U.S. Food and Drug Administration to allow veterinarians to use Oxyglobin
B) the global market for the raw materials needed to make Hemopure and Oxyglobin
C) the patented manufacturing process that Biopure uses to produce Hemopure and Oxyglobin
D) a competitor developing a similar product
E) changes in patent law

Question 71

A donut shop chain opened its first store outside of North America with the opening of a shop in Australia. The donut company used a ________ strategy.

A) market development
B) product penetration
C) market penetration
D) cash cow
E) product development

Question 72

Serengeti makes lightweight sunglasses with 100 percent UV protection for people who love to hunt, hike, and bike ride. Its long-term plans include the development of lenses that, in addition to protecting users from UV rays, will also have effective water-sheeting action to reduce lens spotting. This new feature will be valuable to people who fish. Serengeti has determined that fishing is one of the fastest growing sports in the United States. In terms of a SWOT analysis, Serengeti has recognized a market ________.

A) weakness
B) strength
C) threat
D) opportunity
E) diversification

Question 73

SWOT stands for strengths, willingness, opportunities, and threats.

Question 74

One objective of a small regional marketer of office supplies is to enter new markets. Which of the following most accurately identifies a weakness of this objective?

A) It is not sustainable.
B) It is not attainable.
C) It is not realistic.
D) It is not specific.
E) It is not aspirational.

Question 75

Opportunities and threats come from a company's internal environment.

Question 76

Serengeti makes lightweight sunglasses with 100 percent UV protection for people who love to hunt, hike, and bike ride. Its long-term plans include the development of lenses that, in addition to protecting users from UV rays, will also have effective water-sheeting action to reduce lens spotting. This new feature will be valuable to people who fish. In terms of a SWOT analysis, the company believes it can use the ________ of its reputation as a sunglasses manufacturer for a specialized market in combination with its current manufacturing facilities and labor force to enter this new market.

A) weight
B) strength
C) mission
D) opportunity
E) trend

Question 77

Edy's is a brand of high quality ice cream. Edy's introduced Godiva ice cream and Starbucks ice cream to tempt ice cream lovers to eat even more ice cream. Edy's used a ________ strategy.

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

Question 78

In recent years, security regulations enacted through the Transportation Safety Administration have affected Southwest Airlines. These regulations are part of the ________ affecting this airline.

A) external environment
B) internal environment
C) competitive intelligence
D) diversification strategies
E) market development strategies

Question 79

When General Mills urged consumers to lower their cholesterol by eating Cheerios twice a day over the course of six weeks, the aim was to increase usage among current customers. General Mills used a ________ strategy.

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

Question 80

Which of the following most accurately identifies a difference between a weakness and a threat in SWOT analysis?

A) A company is more able to change a threat than a weakness.
B) A company is more able to change a weakness than a threat.
C) A company can be more negatively affected by a weakness than by a threat.
D) A company can be more negatively affected by a threat than by a weakness.
E) A company can more easily identify threats than weaknesses.