Deck 3: Strategic Marketing Decisions, Choices, and Mistakes

Question 1

Strategic choice as an area of strategic marketing management process involves

A) choosing a market to enter.
B) understanding the underlying bases guiding future strategy, and generating strategic options for evaluation and selecting from them.
C) choosing company name.
D) choosing market tactics.

Answer 1

understanding the underlying bases guiding future strategy, and generating strategic options for evaluation and selecting from them.

Question 2

Which of the following is an example of strategic decision at the corporate level?

A) Choosing generic strategy
B) Developing a mission statement
C) Focus strategy
D) Market position tactics

Answer 2

Developing a mission statement

Question 3

Which of the following is an example of a strategic decision at the SBU level?

A) Choosing generic strategy
B) Developing a mission statement
C) Directional strategy
D) Market position tactics

Answer 3

Choosing generic strategy

Question 4

The unique purpose of a firm that distinguishes it from others and defines the boundary of operation is called _________

A) mission.
B) strategy.
C) fission.
D) idealism.

Question 5

Which of the following are examples of directional strategies?

A) Growth strategies
B) Stability strategies
C) Retrenchment strategies
D) All of the options given are correct.

Question 6

What is the difference between a concentration growth strategy and a diversification growth strategy?

A) There is no difference between the two.
B) Concentration strategy is concentric whereas diversification is horizontal.
C) Concentration strategy is conglomerate whereas diversification is vertical.
D) Concentration strategy is vertical/horizontal whereas diversification is concentric/conglomerate.

Question 7

Portfolio analysis and planning normally takes two forms:

A) Industry analysis and company analysis
B) Market analysis and competitive analysis
C) Industry analysis and financial analysis
D) Product portfolio analysis and business portfolio analysis.

Question 8

What does the BCG matrix focus on?

A) Market share
B) Market growth
C) Industry attractiveness
D) Market share and market growth

Question 9

What does the GE business screen focus on?

A) Position of the business
B) Market growth
C) Industry attractiveness
D) Position of the business and industry attractiveness

Question 10

BCG matrix, GE matrix, and Shell directional matrix are tools used by firms to ____________

A) manage people.
B) allocate resources.
C) start business.
D) manage brand communication.

Question 11

What are the four quadrants of the BCG matrix?

A) Star, wildcat, dog, elephant
B) Star, wildcat, cow, elephant
C) Star, wildcat, dog, cash cow
D) Star, mouse, dog, elephant

Question 12

What is the appropriate strategic objective for a cash cow business?

A) Build
B) Harvest/Hold
C) Divest
D) Invest

Question 13

What is the appropriate strategic objective for a dog business?

A) Build
B) Harvest
C) Divest
D) Invest

Question 14

The following is a criticism of the BCG matrix.

A) It is too simplistic.
B) The cut-off point of 10% growth is too high.
C) Market growth is not the only indicator of industry attractiveness.
D) All of the options given are correct.

Question 15

The advantage of the GE model lies in

A) the use of more variables than those used in BCG matrix.
B) the recognition that the attractiveness of an industry can be assessed in different ways than using growth rate only.
C) the use of nine cells, not only four.
D) All of the options given are correct.

Question 16

Portfolio analysis has gained a wide adoption because

A) it stimulates the use of externally oriented data to supplement management's judgement.
B) it recognizes the importance of the fund generation ability of each SBU.
C) it motivates managers to evaluate the internal and external environment of each business unit.
D) All of the options given are correct.

Question 17

How many generic strategies did Porter talk of?

A) Three
B) Four
C) Five
D) Six

Question 18

Cost leadership strategy is about

A) low cost.
B) a strategy aimed at narrow market.
C) a low-cost strategy aimed at narrow market.
D) a low-cost strategy aimed at mass market.

Question 19

If a firm has a low-cost strategy aimed at a narrow market it is following which strategy?

A) Cost focus
B) Cost leadership
C) Market leadership
D) Global leadership

Question 20

Differentiation can be earned by a firm through which of the following?

A) Brand image
B) Technology
C) Customer service
D) All of the options given are correct.

Question 21

If a firm has a differentiation strategy aimed at a narrow market it is following which strategy?

A) Focused differentiation strategy
B) Differentiation strategy
C) Market leadership
D) Global leadership

Question 22

A firm with more than one generic strategy could be

A) born for success.
B) stuck in the middle.
C) stuck in the heart.
D) geared for growth.

Question 23

When defining marketing objectives, the common wisdom is that objectives should be

A) quantitative, realistic, consistent.
B) qualitative, realistic, consistent.
C) quantitative, ambitious, consistent.
D) quantitative, realistic, innovative.

Question 24

What is NOT the job of R&D Manager?

A) Choosing alternate technologies
B) Embody new technology into products and services
C) Deploying resources for technology implementation
D) Anticipate what consumers could need in the future

Question 25

What are the two dimensions of the Ansoff matrix?

A) Market, consumer
B) Market, industry attractiveness
C) Industry attractiveness, firm position
D) Market, product

Question 26

Offering new products to current markets (as per Ansoff matrix) is called which strategy?

A) Market penetration
B) Product development
C) Diversification
D) Market development

Question 27

Offering new products to new markets (as per Ansoff matrix) is called which strategy?

A) Market penetration
B) Product development
C) Diversification
D) Market development

Question 28

Offering current products to new markets (as per Ansoff matrix) is called which strategy?

A) Market penetration
B) Product development
C) Diversification
D) Market development

Question 29

What is the riskiest strategy for a firm in a fast-changing marketplace?

A) To stay with the penetrations strategy
B) To pursue product development strategy
C) To adopt market development strategy
D) To diversify

Question 30

A company that moves earlier than its competitors to manufacture and sell a new product is called

A) the first winner.
B) first mover.
C) early adopter.
D) early bird.

Question 31

A firm with the largest market share is called

A) market challenger.
B) market leader.
C) market follower.
D) market feeder.

Question 32

A market leader needs to search for

A) new users.
B) new uses.
C) more usage.
D) All of the options given are correct.

Question 33

A company that builds fortifications around its current position is said to be following a ________ defence tactic.

A) flanking
B) contraction
C) position
D) counter-offensive

Question 34

What is NOT a competitive tactics for the market follower?

A) Follow closely
B) Follow at a distance
C) Follow selectively
D) Follow frugally

Question 35

To understand organizational survival and/or failure we should assess

A) the firm's management capability.
B) the firm's external environment.
C) the way the firm's management interacts with its external environment.
D) All of the options given are correct.

Question 36

Which of the following strategic choices and decisions is likely to lead to strategic mistakes and failure? Please select all that apply.

A) Attempted growth without adequate skills or experience
B) Projections of over-estimated demand
C) Inappropriate transfer of an old business model to a new one
D) The creation of a significantly differentiated offering, for which the company charges a premium.