Question 1

All of the following are methods used with a market penetration strategy EXCEPT ________.&#10;A) cross selling&#10;B) converting nonbuyers&#10;C) introducing new applications&#10;D) converting competitors' customers

Accepted Answer

A

Question 2

Which of the following is NOT one of the adjacency paths described by Chris Zook?&#10;A) new businesses&#10;B) new geographies&#10;C) new profit pools&#10;D) new customer segments

Accepted Answer

Chris Zook's work on adjacency paths for business growth includes expanding into new businesses, new geographies, and new customer segments, but does not specifically mention "new profit pools" as one of the adjacency paths. Profit pools conceptually relate to the idea of finding profitability within the value chain, but it's not listed as one of the adjacency paths Zook described.

Question 3

A company implementing a diversification strategy through forward integration would most likely acquire a supplier.

Accepted Answer

Forward integration involves a company acquiring or merging with a business closer to the consumer in the supply chain, such as a distributor or retailer, not a supplier.

Question 4

Which growth strategy has the lowest probability of success?&#10;A) diversification&#10;B) market development&#10;C) product development&#10;D) market penetration

Accepted Answer

Diversification involves entering into new markets or industries with new products or services. This strategy has the lowest probability of success because it requires significant resources and expertise to successfully enter a new market or industry. It also involves higher risks as the company has limited knowledge of the new market and may face competition from established players. Therefore, diversification is considered a high-risk but high-reward strategy. The other three options, market development, product development, and market penetration, involve leveraging the company's existing strengths to grow within the current market, which is generally considered less risky.

Question 5

A firm would most likely add new product features to generate sales during the ________ stage of the product life cycle.&#10;A) introduction&#10;B) maturity&#10;C) decline&#10;D) growth

Accepted Answer

During the maturity stage of the product life cycle, firms often add new features or revamp products to differentiate from competitors and rejuvenate sales, as the market becomes saturated and growth slows.

Question 6

Which growth strategy has the highest success rate and requires the lowest amount of resources?&#10;A) diversification&#10;B) market penetration&#10;C) product development&#10;D) market development

Accepted Answer

Market penetration is the growth strategy that has the highest success rate and requires the lowest amount of resources. This is because it focuses on selling more of the existing products to the existing customers, which requires minimal additional investment in research and development, marketing or distribution.

Question 7

A firm that implements a growth strategy of market development will most likely try to ________.&#10;A) cross sell products&#10;B) build brand awareness&#10;C) convert lost customers&#10;D) modify product performance

Accepted Answer

Market development strategy involves expanding the target market for existing products or services. Building brand awareness is a common approach to market development as it helps to reach new customers and increase sales. Cross-selling, converting lost customers, and modifying product performance are more aligned with other growth strategies such as product development or market penetration.

Question 8

According to Chris Zook,a firm can reduce the risks associated with any growth strategy by ________.&#10;A) conducting extensive market research&#10;B) eliminating value-chain activities&#10;C) focusing only on B2B customers&#10;D) building from core strengths

Accepted Answer

According to Chris Zook, a firm can reduce the risks associated with any growth strategy by building from core strengths. This means that the firm should focus on its existing competencies, capabilities, and resources while pursuing growth opportunities rather than investing in new and untested areas. This approach enables the firm to leverage its existing assets and knowledge, which reduces the risk of failure and increases the chances of success. Conducting market research can help the firm identify growth opportunities, but it does not necessarily reduce the risks associated with pursuing them. Eliminating value-chain activities or focusing only on B2B customers may not be feasible or effective for all firms, as it depends on their specific circumstances and market conditions.

Question 9

Research indicates that most firms are more successful at winning new customers than at winning back lost customers.

Accepted Answer

The answer of Research indicates that most firms are more...

Question 10

A firm that implements cross selling as a product development method is most likely focusing on sales to ________.&#10;A) nonbuyers&#10;B) lost customers&#10;C) existing customers&#10;D) dissatisfied customers

Accepted Answer

Cross selling is a sales technique that involves offering customers additional products or services that are complementary or related to what they have already purchased. By implementing cross selling as a product development method, a firm is targeting its existing customers in order to increase sales and revenue.

Question 11

Market penetration,product development,market development,and diversification are the four growth strategies defined by the ________.&#10;A) Ansoff matrix&#10;B) Markov model&#10;C) Reilly model&#10;D) BCG matrix

Accepted Answer

The answer of Market penetration,product development,market development,and diversification are the...

Question 12

What is a diversification strategy? How can a firm reduce the risks associated with diversification?

Accepted Answer

The answer of What is a diversification strategy? How can...

Question 13

A strategy of product development requires more resources than a strategy of market penetration.

Accepted Answer

The answer of A strategy of product development requires more...

Question 14

Bisquick,a General Mills brand,includes numerous recipes on the back of each box of baking mix.General Mills is most likely using a strategy of ________.&#10;A) product development&#10;B) market development&#10;C) market penetration&#10;D) diversification

Accepted Answer

The answer of Bisquick,a General Mills brand,includes numerous recipes on...

Deck 19: Note : Generic Strategies - Product-Market Growth Strategies