Question 1

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

Rexona is a leading brand in a growing market, indicating a high market share and high growth potential, which makes it a star on the BCG growth-market share matrix.

Question 2

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, a company with a small share of a declining market (such as the market for two-way radios) would be considered a "dog." Dogs have low market share and operate in low-growth markets, making it difficult for them to generate substantial profits.

Question 3

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

Given that the pharmaceuticals division is in a high-growth market but has a low market share, investing in it to increase its market share is a strategic move. Using funds from a cash cow (a business unit with high market share in a low-growth market) to promote the pharmaceuticals division can provide the necessary financial support to boost its growth and competitiveness.

Question 4

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 is no longer growing 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 a leading brand in the market for small vehicles that can be driven on all types of terrain and weather. Even though the market for such vehicles is no longer growing due to the recent economic downturn, Argo remains a dominant player in the market. Therefore, Argo can be classified as a cash cow in the BCG growth-market share matrix. A cash cow is a business unit that has a high market share in a low-growth market, generating a steady cash flow that can be used to support other business units or invest in new opportunities.

Question 5

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 6

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 7

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 that describes the range of businesses that John H. Harland Company operates is the business portfolio. It encompasses the various businesses that Harland is involved in, including check-printing, financial software, and testing and assessment. A business portfolio is an important aspect of strategic planning, as it helps a company diversify its revenue streams and minimize risk by not relying too heavily on any single business segment.

Question 8

When the makers of a ballpoint pen state they are in the communication equipment business, they are defining their mission too ________.

Accepted Answer

By stating that they are in the communication equipment business, the makers of a ballpoint pen are defining their mission broadly, as pens can be seen as a form of communication equipment, albeit a simple one.

Question 9

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

Accepted Answer

This business fits into the "cash cow" category because it has high market share in a low-growth market. Cash cows generate more cash than they require to maintain market share and are considered to be valuable assets for the company.

Question 10

Biopure is a company that manufactured and marketed oxygen therapeutics. Its products were Hemopure for human use and Oxyglobin for animal use. Both were developed as alternatives to red blood cell transfusions. Which of the following was 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 directly controlled by the company. Approval by the U.S. Food and Drug Administration (A) and changes in patent law (E) are external environmental factors that Biopure may have to navigate. The global market for raw materials (B) and a competitor developing a similar product (D) are also external environmental factors that Biopure must consider.

Question 11

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 involves introducing existing products into new markets. In this case, the donut shop chain is introducing its existing products into a new market (Australia).

Question 12

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 market with the development of lenses that have effective water-sheeting action for people who fish, as fishing is one of the fastest growing sports in the United States.

Question 13

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

Accepted Answer

SWOT actually stands for strengths, weaknesses, opportunities, and threats.

Question 14

One objective of a small regional marketer of office supplies is to enter new markets. Which of the following most accurately identifies a weakness of this objective?

Accepted Answer

The objective of entering new markets is not specific because it does not detail which markets, how many, or by when these goals should be achieved. Specific objectives are crucial for effective planning and measurement of success.

Question 15

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

Accepted Answer

Opportunities and threats come from the external environment, while strengths and weaknesses come from the internal environment of a company.

Question 16

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 correct answer is "strength" because the company plans to leverage its existing reputation, manufacturing facilities, and labor force, which are internal positive attributes, to enter a new market. These are considered strengths in a SWOT analysis.

Question 17

Edy's is a brand of high quality 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 and Starbucks ice cream) within the same market (ice cream lovers), which is a classic example of a product development strategy. This strategy involves creating new products to sell to existing markets.

Question 18

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

The security regulations enacted by the Transportation Safety Administration are external factors that affect Southwest Airlines, indicating that the external environment is affecting the airline.

Question 19

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

The aim of General Mills was to increase usage among current customers, which is a characteristic of market penetration strategy. This strategy focuses on increasing sales of existing products to the current market.

Question 20

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.

Quiz 3: Strategic Market Planning