Question 1

The cost leadership strategy in Porter's generic strategy model is very similar to the Boston Consulting Group's stars and cash cows.

Accepted Answer

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Question 2

According to the Boston Consulting Group matrix, cash cows generate cash and those question marks that need to be revitalized use cash.

Accepted Answer

In the Boston Consulting Group (BCG) matrix, cash cows are business units or products that have a high market share in a slow-growing industry and generate more cash than they consume. Question marks are units with low market share in a high-growth market and typically require significant cash to capture more market share or become profitable.

Question 3

An important concern in implementing the Boston Consulting Group matrix is to determine whether to invest in or divest a question mark.

Accepted Answer

The Boston Consulting Group (BCG) matrix classifies business units or products into four categories: Stars, Cash Cows, Dogs, and Question Marks. An important strategic decision for managers using this matrix is determining whether to invest further in Question Marks (products with high market growth but low market share) to turn them into Stars, or to divest them if turning them into Stars seems unlikely or too resource-intensive.

Question 4

Unlike the Boston Consulting Group matrix which considers the firm's business strength from a single dimension (market share), the General Electric business screen considers the firm's business strengths from the perspective of many dimensions (patent protection, marketing effectiveness, and control over prices).

Accepted Answer

The General Electric (GE) business screen extends the analysis beyond the Boston Consulting Group (BCG) matrix by evaluating a business on multiple dimensions, including factors like patent protection, marketing effectiveness, and control over prices, rather than just market share. This provides a more nuanced understanding of a firm's strategic position.

Question 5

The Porter generic strategy model could recommend a focus strategy for a small firm.

Accepted Answer

The Porter generic strategy model includes a focus strategy as one of its main strategies, which is particularly suitable for small firms aiming to serve a niche market or specific segment effectively.

Question 6

The Porter generic strategy model can be effectively used by small firms.

Accepted Answer

The Porter generic strategy model, which includes cost leadership, differentiation, and focus strategies, can be effectively used by small firms to identify their competitive advantage and position themselves effectively in the market.

Question 7

A major advantage of strategic planning models is the ability to analyze all of a firm's SBUs at the same time.

Accepted Answer

Strategic planning models, such as the BCG matrix, allow firms to evaluate and compare the performance and potential of all their Strategic Business Units (SBUs) simultaneously, aiding in resource allocation and strategic decision-making.

Question 8

From a marketing perspective, order-generating costs are more important than order-processing costs.

Accepted Answer

Order-generating costs are crucial as they directly impact the ability to attract and secure new customers, which is essential for business growth.

Question 9

Tactical plans are subject to more frequent revision than strategic plans.

Accepted Answer

Tactical plans are shorter term and more specific than strategic plans, making them more adaptable to immediate changes in the organization's environment, thus subject to more frequent revision.

Question 10

Contingency plans should be developed after a company determines that actual performance lags behind goals.

Accepted Answer

Contingency plans should be developed during the planning phase, before any performance gaps occur, to prepare for potential future challenges or unexpected events.

Question 11

a.	Under what circumstances would you use a bottom-up plan?
b. Under what circumstances would you use a top-down plan?

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Question 12

a.	Describe the conflicting orientation of marketing, finance, accounting, and legal personnel.
b. Develop a series of measures to resolve these conflicts.

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Question 13

Describe the concept of organizational mission. Develop an appropriate mission (in terms of customer groups served, goods and services offered, functions performed, and technologies utilized) for the following organizations:
a. McDonald's. c. Your college or university.
b. General Motors. d. A family-oriented restaurant.

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Question 14

Develop criteria for deciding whether a single product with multiple markets (value-driven and status driven) should have one or two strategic business units (SBUs).

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Question 15

Develop a situation analysis (SWOT analysis) for your college bookstore.

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Question 16

What are the roles of monitoring results and situation analysis in strategic planning? How are these two concepts interrelated?

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Question 17

Apply the product/market opportunity matrix to your college's marketing strategy.

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Question 18

a.	What are the fundamental assumptions of the Boston Consulting Group matrix?
b. What is an optimal mix of stars, cash cows, question marks, and dogs for a firm? Draw a matrix to illustrate your answer.

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Question 19

Differentiate between the Boston Consulting Group matrix, the General Electric business screen, and the Porter generic strategy model. (Hint: look at market share and market growth rate).

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Question 20

a.	"Maximum profit rarely occurs at the lowest level of expenditure on order-generating costs." Explain this statement.
b. Does this statement also apply to order-processing costs? Why or why not?

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The answer of a.	"Maximum profit rarely occurs at the lowest...

Quiz 3: Developing and Enacting Strategic Marketing Plans