Question 1

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

Accepted Answer

A weakness is an internal issue that a company can improve through changes in operations, resources, or strategies. A threat, however, is external and often beyond the company's control to change.

Question 2

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

Accepted Answer

Employee morale is an aspect of a company's internal environment, but promotion strategies and competitors' reactions are part of the external environment.

Question 3

Edy's is a high quality brand of 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.

Accepted Answer

Edy's introduced new products (Godiva ice cream and Starbucks ice cream) to its existing market, which is a product development strategy.

Question 4

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.

Accepted Answer

The term used for the collection of businesses owned by a company is called the business portfolio. This includes all the different products or services offered by the company. In this case, John H. Harland Company has a business portfolio consisting of its check-printing business, financial software business, and testing and assessment business.

Question 5

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?

Accepted Answer

Using funds from a cash cow to promote the pharmaceuticals division would be the most likely strategy to increase market share in a high-growth market. This allows for investment in a profitable venture to improve market position without risking funds from other areas of the business. Holding the share or implementing a harvest strategy would not address the need to increase market share, and diversifying or divesting the SBU may not be necessary or efficient at this stage.

Question 6

John H.Harland Company is best known for printing personal and business checks,but it also owns Scantron,a computerized testing and assessment company.Harland's purchase of Scantron is an example of the implementation of a ________ strategy.

Accepted Answer

The purchase of Scantron, a company in a different industry than check printing, demonstrates diversification strategy, which involves investing in new products or businesses that are distinct from the company's existing products and markets.

Question 7

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.

Accepted Answer

According to the BCG growth-market share matrix, products or businesses with a small share of a shrinking market are considered "dogs." As the market for two-way radios is disappearing, a company with a small share in this market would be a "dog."

Question 8

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 has become stagnant due to the recent economic downturn.In terms of the BCG growth-market share matrix,Argo would be classified as a ________.

Accepted Answer

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 has become stagnant due to the recent economic downturn. Therefore, Argo would be classified as a "cash cow" in the BCG growth-market share matrix, as the company has a relatively high market share in a low-growth market.

Question 9

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

Accepted Answer

The film company has a high market share in the children's film market, which means it is generating a significant amount of revenue. However, since the children's film market has low growth potential, the company cannot expect to achieve significant growth from this market. Thus, the company's business fits into the cash cow category of the BCG growth-market share matrix.

Question 10

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

Accepted Answer

SWOT stands for strengths, weaknesses, opportunities, and threats. Willingness is not part of the SWOT analysis.

Question 11

To ensure attainability,marketers increasingly try to state objectives in general terms.

Accepted Answer

To ensure attainability, marketers try to state objectives in specific and measurable terms. General terms can lead to confusion and uncertainty in the goal-setting process.

Question 12

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

Accepted Answer

Security regulations enacted through the Transportation Safety Administration are external factors that are beyond the control of Southwest Airlines. These regulations are part of the external environment affecting the airline industry as a whole.

Question 13

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

Accepted Answer

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

Question 14

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.

Accepted Answer

Market development is the strategy of entering new markets with existing products. In this case, the donut shop chain has entered a new market (Australia) with its existing product (donuts). This fits the definition of market development strategy.

Question 15

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.

Accepted Answer

General Mills used a market penetration strategy by encouraging current customers to increase their usage of Cheerios by consuming it twice a day for six weeks. This is meant to deepen the brand's relationship with existing customers rather than attracting new ones, which is the goal of market development. It also focuses on increasing usage among current customers, making it a product penetration strategy. There is no indication that General Mills is entering a new market or developing a new product, therefore, diversification and product development are not applicable in this situation.

Question 16

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.

Accepted Answer

The answer of Fence Patrol has developed an entirely new...

Question 17

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 ________.

Accepted Answer

Serengeti has recognized an opportunity in the fishing industry, which is one of the fastest growing sports in the United States.

Question 18

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.

Accepted Answer

The company's reputation as a sunglasses manufacturer is a strength, which it can leverage to enter a new market.

Question 19

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.

Accepted Answer

According to the BCG growth-market share matrix, products that have a high market share in a rapidly growing market are classified as "stars." Rexona, as a leading brand of deodorant and antiperspirant in a growing market, would fit this classification.

Question 20

Biopure is a company that manufactures and markets oxygen therapeutics.Its products are Hemopure for human use and Oxyglobin for animal use.Both have been developed as alternatives to red blood cell transfusions.Which of the following would be part of Biopure's internal environment?

Accepted Answer

The patented manufacturing process used by Biopure to produce Hemopure and Oxyglobin is part of its internal environment as it is a factor that the company has control over within the organization.

Quiz 3: Strategic Market Planning