Question 1

A(n)________ strategy is selling the same standardized product and using the same basic marketing approach in each national market.

Accepted Answer

A global strategy involves selling the same standardized product and using the same basic marketing approach in each national market, aiming for efficiency and consistency across different countries.

Question 2

A company that enters a new business area in order to leverage existing expertise and achieve synergy across the newly combined set of products is following a ________ strategy.

Accepted Answer

Related diversification involves entering a new business area that is related to the company's existing operations, allowing the company to leverage its existing expertise and achieve synergy.

Question 3

There is constant, fierce competition between telecommunication companies due to the continuous advances in mobile technology and a wide range of customer tastes. This is called

Accepted Answer

Hypercompetition refers to an environment characterized by intense and rapid competitive moves, where competitors must constantly adapt to survive. This term is commonly used to describe industries like telecommunications, where technological advancements and diverse consumer preferences drive fierce competition.

Question 4

A large pharmaceutical company decides to reduce the price of a medication to encourage physicians to continue prescribing it as generic brands have entered the market. According to the five forces model, which competitive force is the company addressing?

Accepted Answer

The company is addressing the threat of substitute products, as generic brands entering the market represent substitutes that could replace their medication. Reducing the price is a strategy to maintain competitiveness against these substitutes.

Question 5

The airlines sold fewer tickets to business travelers during the "Great Recession" due to more companies using video conferencing software to save money. According to the five forces model, this type of threat is called the

Accepted Answer

The use of video conferencing software is a substitute for business travel, reducing the demand for airline tickets among business travelers.

Question 6

An organization consistently invests above the industry average in research and development. As a result, it is able to offer exclusive product features although product pricing is higher to account for the additional investment. This organization is using a ________ strategy.

Accepted Answer

The organization is using a differentiation strategy, which involves offering unique product features that justify a higher price, often supported by significant investment in research and development.

Question 7

A recent SWOT analysis determines that a company's controls allowed inventory levels of some products to rise while other products to consistently be out of stock. The firm would classify this as a potential

Accepted Answer

This situation indicates a weakness in the company's inventory management system, as it shows inefficiency in maintaining optimal stock levels.

Question 8

After many years of distributing her clothing through a large chain of department stores, Georgia, a fashion designer, decides to open a boutique to exclusively sell her clothing directly to consumers. Georgia is following a(n)________ strategy.

Accepted Answer

Forward vertical integration involves a company expanding its operations to include direct distribution or sales to consumers, which is what Georgia is doing by opening her own boutique.

Question 9

According to the five forces model, ________ levels of competition for customers translate to ________ levels of profit in the industry.

Accepted Answer

The answer of According to the five forces model, ________...

Question 10

________ is a corporate-level strategy in which a company expands its business operations into a new industry that produces inputs for the company's products.

Accepted Answer

Backward vertical integration is when a company expands its operations into an industry that produces inputs for its products, effectively moving upstream in the supply chain.

Question 11

When pursuing both a low-cost and differentiation strategy,

Accepted Answer

Pursuing both strategies can lead to being "stuck in the middle," where the organization fails to achieve either a strong cost advantage or a strong differentiation advantage.

Question 12

Cozy Threads, a clothing retailer, recently expanded its business by purchasing a regional airline. This business expansion is an example of

Accepted Answer

Unrelated diversification occurs when a company expands its operations into an entirely different industry, as Cozy Threads did by purchasing a regional airline.

Question 13

Two divisions of a company decide to consolidate manufacturing facilities to maximize supplier discounts, optimize inventory management, and reduce fixed costs. This is an example of

Accepted Answer

Consolidating manufacturing facilities to achieve cost savings and efficiencies is an example of synergy, where combined operations lead to greater benefits than operating separately.

Question 14

During a SWOT analysis, Sweet Treats identifies a growing number of local businesses now offering bakery items to customers. This finding would be characterized as a(n)

Accepted Answer

This finding would be characterized as a threat because the growing number of local businesses offering bakery items increases competition for Sweet Treats, potentially impacting their market share and profitability.

Question 15

According to the SWOT analysis, an opportunity for a company would be the ability to

Accepted Answer

An opportunity in a SWOT analysis refers to external factors that the company can capitalize on to grow or improve its position. Taking over a bankrupt competitor is an external opportunity that can help the company expand its market share.

Question 16

According to an organization's SWOT analysis, a strength of the organization is

Accepted Answer

The answer of According to an organization's SWOT analysis, a...

Question 17

To maintain profits while offering the best industry pricing to customers, a furniture company decides to order materials in larger quantities to realize larger discounts on materials. The company is employing a ________ strategy.

Accepted Answer

The company is using a low-cost strategy by ordering materials in bulk to reduce costs and offer competitive pricing.

Question 18

A multinational tire manufacturer introduces a line of premium, high-priced tires that can handle extreme temperatures. The tires are only marketed in the Middle East and were designed with the climatic conditions of that region in mind. The manufacturer is pursuing a ________ strategy.

Accepted Answer

The manufacturer is pursuing a focused differentiation strategy by targeting a specific market segment (the Middle East) with a unique product (premium tires for extreme temperatures).

Question 19

________ is a corporate-level strategy that emphasizes reinvesting a company's profits in strengthening its competitive position in its current industry.

Accepted Answer

Concentration on a single industry involves reinvesting profits to enhance a company's competitive position within its current industry, rather than expanding into new markets or industries.

Question 20

In order to cater to local tastes and culinary traditions, a well-known restaurant chain offers customized versions of its menu in different countries. This is an example of a(n)________ strategy.

Accepted Answer

A multidomestic strategy involves tailoring products or services to fit local markets and preferences, which is what the restaurant chain is doing by offering customized menu versions in different countries.

Quiz 8: The Manager As a Planner and Strategist

A(n) ________ strategy is selling the same standardized product and using the same basic marketing approach in each national market.