Question 1

"At Dodson, we sell shoes" is a market-oriented business definition.

Accepted Answer

A market-oriented business definition focuses on meeting the needs and wants of its customers. The statement "At Dodson, we sell shoes" is product-oriented because it focuses on the product being sold rather than on the needs or wants of the customers.

Question 2

Which of the following best describes a company's business portfolio?

Accepted Answer

A company's business portfolio refers to the collection of businesses and products that make up the company. It includes all the different products, services, and business units that the company offers. Option A, B, C, and E are all elements that may be considered within a company's business portfolio, but they do not encompass the entire portfolio.

Question 3

The two dimensions the BCG approach uses to evaluate and manage SBUs are ________.

Accepted Answer

The BCG approach uses market growth rate and relative market share as the two dimensions to evaluate and manage SBUs. Market growth rate refers to the rate at which the market is growing, while relative market share compares the company's market share relative to its competitors. Together, these dimensions help to classify SBUs into different categories, such as stars, cash cows, question marks, and dogs.

Question 4

According to the BCG matrix, products or businesses with a low share of market in a high-growth industry are considered ________.

Accepted Answer

The answer of According to the BCG matrix, products or...

Question 5

In the BCG matrix, ________ refer to low-growth, high-share businesses or products.

Accepted Answer

Cash cows refer to low-growth, high-share businesses or products in the BCG matrix. Stars are high-growth, high-share businesses or products. Question marks are low-share businesses or products in high-growth markets, and dogs are low-growth, low-share businesses or products. Heroes are not a term used in the BCG matrix.

Question 6

Which of the following products would the electronics company CypressSound classify as a cash cow in its BCG matrix?

Accepted Answer

Cash cows are defined as products with a high market share in a mature, slow-growing market. "Xpress" fits this description as it has a high market share in a market not expected to grow significantly.

Question 7

Most firms begin the strategic planning process by developing detailed marketing and departmental plans that support a company-wide plan.

Accepted Answer

Most firms start the strategic planning process by developing a company-wide plan first, which then guides the development of more detailed marketing and departmental plans.

Question 8

Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The CEO stresses that the new mission statement should be market-oriented rather than product-oriented. Which of the following mission statements will best suit the company?

Accepted Answer

Option C is the only mission statement that is market-oriented as it focuses on providing products suited to customers' needs, instead of just promoting the brand's products. Option A and D are product-oriented, while option B is too focused on the ingredients rather than the customers' needs. Option E is partially market-oriented, but it is also profit-focused.

Question 9

An organization's mission statement should emphasize its intentions toward customers and the customer experience the organization seeks to create.

Accepted Answer

A mission statement should communicate an organization's purpose and goals, including its commitment to serving and meeting the needs of its customers. It should outline how the organization plans to provide value and improve the customer experience.

Question 10

In the BCG growth-share matrix, question marks refer to products or businesses with a ________.

Accepted Answer

Question marks refer to products or businesses with a low market share in a market with high growth prospects. These are products that have the potential to become stars if they can increase their market share, but they require significant investment and attention to achieve this growth.

Question 11

Which of the following statements is true in the context of the BCG growth-share matrix?

Accepted Answer

The BCG growth-share matrix suggests that stars are in high-growth markets and require heavy investment to maintain their growth. Therefore, statement A is true. Statement B is incorrect because the positions of SBUs in the matrix can change over time due to changes in market growth and relative market share. Statement C is incorrect because income from one SBU can be used to support other business units. Statement D is incorrect because dogs do not generate much cash and are often divested. Statement E is incorrect because cash cows are in low-growth markets and do not have the potential to become stars.

Question 12

Which of the following is true of strategic planning in a firm?

Accepted Answer

Strategic planning in a firm deals with adapting the firm to take advantage of changing marketing opportunities, such as new products, changing customer needs, and emerging markets. It involves long-term planning at the corporate level, as well as at the business-unit, product, and market levels, and takes into account both the internal and external environment of the firm. Short-term investment objectives may be a part of the plan, but they are not the primary focus.

Question 13

A ________ is purposeful, specifying what an organization wants to accomplish in the larger environment.

Accepted Answer

A mission statement defines an organization's purpose and its primary objectives, and it is typically included in a strategic plan. Marketing strategies and objectives are focused on specific marketing goals, while a market portfolio refers to the collection of products or services offered by a company.

Question 14

According to the BCG matrix, products or businesses with a high market share in a high-growth market are classified as ________.

Accepted Answer

According to the BCG matrix, products or businesses with a high market share in a high-growth market are classified as stars. Stars have high growth potential and generate significant cash flow, making them attractive for investment and further development.

Question 15

"At CL Online, we create customer connectivity, anytime, anywhere" is a product-oriented mission statement.

Accepted Answer

This statement is customer-oriented as it focuses on the benefits and value provided to the customer (connectivity, anytime, anywhere), rather than the product itself.

Question 16

Vertigo is an electronics company. According to the BCG matrix, which of the following products of Vertigo would most likely classify as a question mark?

Accepted Answer

A question mark product is one that has a low market share in a market that is growing steadily. Blue is a cell phone that is designed for music lovers and has a low market share, and the cell phone market is growing steadily. Therefore, Blue is the product that would most likely classify as a question mark for Vertigo.

Question 17

Which of the following criteria provides a measure of market attractiveness in the Boston Consulting Group approach?

Accepted Answer

Market growth rate is one of the criteria that provides a measure of market attractiveness in the Boston Consulting Group approach, as it reflects the potential for future sales growth in the market. The other options are not directly related to measuring market attractiveness in this approach.

Question 18

Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in the country of Terrania. Its closest competitor, Febex, has a 25% share in the market, while four other analgesic brands split the remainder. Which statement indicates that Cetaprin is a cash cow according to the BCG matrix?

Accepted Answer

A cash cow, according to the BCG matrix, is a product with a high market share in a slow-growing industry. Statement C, indicating that the demand for analgesic drugs in Terrania is expected to remain stable, suggests that the market is not growing rapidly, which aligns with the characteristics of a cash cow.

Question 19

Business portfolio analysis is defined as the process in which management ________.

Accepted Answer

Business portfolio analysis is a managerial tool for evaluating the potential of a company's product lines or strategic business units (SBUs). It assesses the attractiveness of the market in which the SBU operates and the strength of the SBU's position in that market. This analysis helps management to identify SBUs that are performing well and invest in them, as well as identify underperforming SBUs and divest them. Therefore, choice C is the best answer.

Question 20

Due to the limitations of the BCG and other formal portfolio planning models, many companies are placing responsibility for strategic planning in the hands of cross-functional teams of divisional managers who are close to their markets. In such organizations, strategic planning is ________.

Accepted Answer

In such organizations, strategic planning is decentralized, meaning the responsibility for it is distributed among cross-functional teams of divisional managers.

Quiz 2: Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships