Deck 2: Environmental and Internal Analysis: Market Information and Intelligence

Question 1

Two areas of strategic marketing management process are: strategic analysis, strategic implementation. What is the third area?

A) Strategic action
B) Strategic direction
C) Strategic choice
D) Strategic decision

Answer 1

Strategic choice

Question 2

What entails the strategic analysis area of strategic marketing management?

A) Tactical plans, leadership styles
B) Understanding the strategic position of the organization in terms of its external environment and internal resources
C) Direction of development, method of development
D) SMM

Answer 2

Understanding the strategic position of the organization in terms of its external environment and internal resources

Question 3

Which of the following are NOT elements of the marketing environment?

A) Economy, customers, corporate policy, management decision makers
B) Technology, customers, competitors, distributers
C) Economy, suppliers, management systems, financial resources
D) None of the options given are correct.

Answer 3

None of the options given are correct.

Question 4

What does the PESTLE framework help us to do?

A) Kill pests
B) Analyse the macro environment
C) Develop winning strategies
D) Develop a plan of action

Question 5

What does the acronym in the PESTLE framework stand for?

A) Police factors, socio-cultural factors, economic factors, travel factors
B) Police factors, socio-cultural factors, economic factors, technological factors
C) Political factors, economic factors, socio-cultural factors, technological factors, legal factors, environmental factors
D) Police factors, socio-cultural factors, emotional factors, travel factors

Question 6

What is environmental scanning?

A) Is the process of gathering information about the various forces in the environment. It involves observation, perusal of secondary sources, such as business, trade, government and general interest publications, and marketing research.
B) Is the process of assessing and interpreting the information gathered through market intelligence.
C) Is the process of gathering information about the various forces in the environment. It involves observation, perusal of secondary sources, such as business, trade, government and general interest publications, and marketing research, and is also the process of assessing and interpreting the information gathered through market intelligence.
D) None of the options given are correct.

Question 7

The process of assessing and interpreting the information gathered through market intelligence and environmental scanning
Is called

A) marketing research.
B) marketing strategy.
C) environmental analysis.
D) fiscal audit.

Question 8

IKEA's experiment with housing trends in Europe in the 1990s was the result of

A) a well thought out global strategy.
B) its ability to identify a possible market opportunity.
C) its ability to identify a possible market opportunity and also its attempt to capitalize on its skills in developing kit-form products at reasonable prices for customers.
D) it did a detailed audit.

Question 9

Scenario analysis provides

A) a way to analyse past transactions.
B) a way to analyse customers' requirements.
C) alternative ways for investing in information to reduce environmental uncertainty.
D) a way to analyse competitors.

Question 10

Scenario analysis helps managers to build

A) a financial information system.
B) a production-based technology system.
C) a strategic monitoring system that enables the organization to formulate robust defensive strategies in times of uncertainty.
D) a human resources monitoring system.

Question 11

The two types of scenario analysis and planning are

A) competitive scenarios and market scenarios.
B) internal scenarios and external scenarios.
C) strategy-developing scenarios and decision-driven scenarios.
D) historical scenarios and present scenarios.

Question 12

The 'micro' or competitive environment includes

A) political and economic factors.
B) technological and environmental factors.
C) internal resources and capabilities.
D) the forces or groups that directly affect, and are affected by, an organization's major operations.

Question 13

Which of the following is NOT one of the ways to define an industry?

A) A group of firms producing similar products
B) A group of competitors producing products that compete with each other
C) A group of companies that satisfy varying needs of customers
D) A club of like-minded entrepreneurs

Question 14

What are the forces of Porter's five forces model?

A) Threat of potential entrants, bargaining power of sellers, bargaining power of suppliers, threat of substitutes, competitive rivalry
B) Threat of potential entrants, bargaining power of buyers, bargaining power of suppliers, threat of subsidiaries, competitive rivalry
C) Threat of potential entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitutes, competitive fraternity
D) Threat of potential entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitutes, competitive rivalry

Question 15

Which of the following is NOT true of the Porter's five forces model?

A) The collective strength of these forces determines the ultimate profit potential in the industry and the firms' ability to earn rates of ROI in excess of cost of capital.
B) The stronger the force is, the more limited the companies are in raising prices and earning greater profits.
C) A strong force may be regarded as a threat as it reduces the company's bargaining power and is likely to affect profit.
D) All of the options given are correct.

Question 16

What is NOT a critique of Porter's five forces?

A) That Porter's list is not an exhaustive one.
B) That there could be a sixth force.
C) That Porter gives no indication of how to operationalize any analysis.
D) All the options given are correct.

Question 17

A strategic group is

A) a group of firms pursuing the same or similar strategy with similar resources.
B) a group of firms pursuing the different strategy with similar resources.
C) a group of firms pursuing the same strategy with different resources.
D) a group of competitors that fight against each other.

Question 18

What is 'benchmarking'?

A) It is an internal soul searching exercise.
B) It is a one-off analysis of competitors.
C) It is a continuous process of measuring products, services, and practices against those offered by leading competitors.
D) None of the options given are correct.

Question 19

Which of the following is NOT a common reaction profile of competitors?

A) Laid back competitors
B) Selective competitor
C) Tiger competitor
D) Innocent competitor

Question 20

Calof and Wright (2008) stated that the objective of any competitive intelligence system is

A) to help organizations sustain and develop distinct competitive advantages by using the organization and its networks to develop actionable insights about the various components of the business environment.
B) to spy on other competitors in the market.
C) to collect data about consumers.
D) to collect some government statistics about the market.

Question 21

Some of the components of the resource-based approach to analysing the internal environment are

A) human resource only.
B) intangible resource only.
C) physical resource only.
D) All of the options given are correct.

Question 22

What does the Porter's Value Chain Model help us to do?

A) Help analyse a firm's unique advantage
B) Help analyse a firm's selling points
C) Help analyse a firm's competitive advantage and its core competencies
D) Help analyse firm's marketing environment

Question 23

Using Porter's Value Chain analysis competitive advantage can arise from

A) providing buyer value similar to competitors.
B) performing value chain activities in the same ways that create identical buyer value like competitors.
C) differentiation-based advantage.
D) providing buyer value comparable to competitors but performing value chain activities more efficiently, or performing value chain activities in unique ways that create greater buyer value than competitors and hence command a premium price.

Question 24

Which of the following is NOT an example of primary activities in Porter's Value Chain analysis?

A) Inbound logistics
B) Operation
C) Marketing and sales
D) Firm infrastructure

Question 25

Which of the following is NOT an example of support activities in Porter's Value Chain analysis?

A) Technology development
B) Technology development.
C) Operation
D) Firm infrastructure

Question 26

What does the PIMS programme attempt to do?

A) Analyse the profitability of organizations
B) Analyse how organizations react to environmental changes
C) Discover empirical principles that determine which strategy variables, and under which conditions, produce what results in terms of return on investment (ROI) and cash flow
D) Identify the highflyer organizations

Question 27

What is SWOT analysis used for?

A) Studying internal organizational capabilities
B) Studying external challenges
C) Integrating internal analysis and external analysis to get a strategic fit
D) None of the options given are correct.

Question 28

What does SW stand for in SWOT?

A) Strong, Weak
B) Straight, Weakness
C) Strengths, Weaknesses
D) None of the options given are correct.

Question 29

What does OT stand for in SWOT?

A) Opportunities, Threats
B) Opportunism, Threat
C) Opportunity, Treat
D) None of the options given are correct.

Question 30

What is the difference between SWOT analysis and the TOWS matrix?

A) SWOT is more effective than TOWS.
B) Both use the same inputs, but TOWS integrates them more strategically.
C) TOWS is more effective than SWOT.
D) TOWS focuses on action; SWOT does not.

Question 31

In the SO quadrant of the SWOT/TOWS matrix what should the company do?

A) Develop strategies to overcome organizational weakness
B) Develop strategy to overcome organizational weakness in light of environmental threats
C) Develop strategy to leverage organizational strengths to maximize environmental opportunity
D) Develop strategy to leverage organizational strengths to maximize environmental threats

Question 32

In the WT quadrant of the SWOT matrix what should the company do?

A) Develop strategies to overcome organizational weakness
B) Develop strategy to overcome organizational weakness in light of environmental threats
C) Develop strategy to leverage organizational strengths to maximize environmental opportunity
D) Develop strategy to leverage organizational strengths to maximize environmental threats

Question 33

The biggest criticism of the use of the SWOT analysis is the

A) typewriter approach.
B) trial balance approach.
C) fiscal approach.
D) balance sheet approach.

Question 34

Which of the following is Not an option in the functions of competitor intelligence system?

A) Summaries of the data
B) Ranking the data by the reliability of the source
C) Files on competitors
D) Proforma financial statements on competitors under different scenarios

Question 35

What does PIMS stand for?

A) Profit and Income for Markets Systems
B) Profit Impact of Market Strategy
C) Profit Impact on Managerial Strategy
D) Profit and Income of Market Strategy