Question 1

A company may use which of the following trade promotions to "push" their products through the distribution system?
A)discounts
B)in-store special offers
C)advertising allowances
D)coupons
E)brand advertising

Accepted Answer

The answer of A company may use which of the...

Question 2

Fujitsu demonstrated a strategy to avoid when it imitated IBM's strategy in 1990.

Accepted Answer

Fujitsu's strategy of imitating IBM's in the 1990s was not successful, and in fact led to financial losses and a reputation for being a copycat. Therefore, it would be advisable for companies to not mimic the strategies of their competitors without careful consideration and adaptation to their own unique situation.

Question 3

The attractiveness of a strategic alternative is seldom affected by its perceived compatibility with the key stakeholders in a corporation's task environment.

Accepted Answer

The attractiveness of a strategic alternative is often affected by its perceived compatibility with the key stakeholders in a corporation's task environment. Stakeholders may include customers, suppliers, employees, shareholders, and regulatory agencies, among others. It is important for a company to consider the impact of its strategic decisions on these stakeholders in order to build and maintain positive relationships and support for its business objectives.

Question 4

Which type of pricing takes advantage of the demand curve while the product is still novel and competitors are few?
A)demand pricing
B)competitive pricing
C)skim pricing
D)penetration pricing
E)loss-leader pricing

Accepted Answer

Skim pricing takes advantage of the demand curve while the product is still novel and competitors are few by setting a high price initially and gradually lowering it over time as competition increases. This strategy allows the company to maximize profits early on when demand is high, and then adjust pricing to remain competitive as new competitors enter the market.

Question 5

The follow-the-moon management philosophy allows project team members living in one country to pass their work to team members in another country in which the work day is just beginning.

Accepted Answer

The answer of The follow-the-moon management philosophy allows project team...

Question 6

If the strategy is incompatible with the corporate culture, the likelihood of its success is very low.

Accepted Answer

Corporate culture plays a crucial role in the success of a strategy. If the strategy goes against the set norms, values, and beliefs of the company, it will be difficult to implement and achieve desired outcomes. Therefore, the compatibility of the strategy with the corporate culture is critical for its success.

Question 7

When a company spends a large amount of money on trade promotion in order to gain or hold shelf space in retail outlets, a company is using a ________ strategy.
A)pull
B)push
C)lengthening
D)knot
E)hold

Accepted Answer

The strategy described in the question is a "push" strategy, where the company is pushing its products onto the retailer's shelves through the use of trade promotions. This is in contrast to a "pull" strategy, where the company focuses on generating demand from consumers in order to attract retailers to stock their products. The other options (C, D, and E) do not accurately describe a marketing strategy.

Question 8

The type of marketing strategy in which a company captures a larger share of an existing market for current products through market saturation or market penetration or develops new markets for current products is called
A)market development.
B)push strategy.
C)product development.
D)pull strategy.
E)skimming the cream.

Accepted Answer

Market development involves capturing a larger share of an existing market or developing new markets for current products, which is exactly what the question describes. Option B, push strategy, refers to the strategy of promoting a product to retailers or wholesalers in an effort to persuade them to carry it. Option C, product development, involves creating new products to sell to existing or new markets. Option D, pull strategy, involves creating demand for a product through advertising and promotion to consumers. Option E, skimming the cream, is a pricing strategy where high prices are charged for an innovative or unique product.

Question 9

Corporate scenarios are pro forma balance sheets and income statements that forecast the effect each alternative strategy and its various programs will likely have on division and corporate return on investment.

Accepted Answer

Corporate scenarios are indeed pro forma balance sheets and income statements that forecast the effect each alternative strategy and its various programs will likely have on division and corporate return on investment.

Question 10

Some executives show a self-serving tendency to attribute the firm's problems not to their own poor decisions, but to environmental events out of their control such as government policies or a poor economic climate.

Accepted Answer

This statement is true, as some executives tend to shift blame onto external factors rather than taking responsibility for their own poor decisions.

Question 11

Which strategy is developed to pull together the various activities and competencies of each department so that corporate and business unit performance improves and resource productivity is maximized?
A)business strategy
B)competitive strategy
C)generic strategy
D)enterprise strategy
E)functional strategy

Accepted Answer

The answer of Which strategy is developed to pull together...

Question 12

Chevron uses the real-options approach for bidding on petroleum reserves.

Accepted Answer

Chevron has been known to use the real-options approach for making investment decisions in the oil and gas industry, specifically for bidding on oil and gas reserves. The real-options approach involves evaluating the value of options to invest or delay investment in a project, based on various uncertainties and risks. This approach allows companies like Chevron to assess the potential value of a reserve before committing significant resources to its development.

Question 13

Risk is composed not only of the probability that the strategy will be effective, but also of the amount of assets the corporation must allocate to that strategy and the length of time the assets will be unavailable for other uses.

Accepted Answer

The statement is true. Risk is not only determined by the probability of success of a strategy, but also by the resources that would have to be invested and the length of time those resources will be tied up.

Question 14

Outsourcing is the reverse of vertical integration.

Accepted Answer

Outsourcing involves contracting tasks or operations to external parties, whereas vertical integration involves bringing tasks or operations in-house. Therefore, they are opposite approaches to managing a company's operations.

Question 15

"The customer is always right" is an example of a policy in Nordstrom's.

Accepted Answer

"The customer is always right" is a well-known policy at Nordstrom's, emphasizing their focus on excellent customer service.

Question 16

When Smith & Wesson puts its name on others' products like men's cologne, it is using which marketing strategy?
A)demand pricing
B)brand pricing
C)line extension
D)penetration extension
E)demand extension

Accepted Answer

This is an example of line extension, which is when a company uses its existing brand name to introduce new products in a related category. In this case, Smith & Wesson is extending its brand name from firearms to men's cologne.

Question 17

There is mounting evidence that when an organization is facing a dynamic environment, the best strategic decisions are arrived at through consensus when everyone agrees on one alternative.

Accepted Answer

While consensus can be valuable in certain situations, in a dynamic environment, relying solely on consensus for strategic decisions can be slow and inhibit the ability to respond quickly to changes. Diverse viewpoints and a more agile decision-making process, possibly led by a smaller, empowered team or leader, are often more effective in rapidly changing contexts.

Question 18

The pricing, selling, and distributing of a product is referred to as a(n)________ strategy.
A)marketing
B)functional
C)operations
D)financial
E)human resource management

Accepted Answer

The pricing, selling, and distributing of a product all fall under the scope of marketing strategy. This strategy involves identifying and satisfying customer needs through the creation, promotion, and distribution of products or services. The goal of marketing strategy is to increase sales and profitability by effectively reaching and appealing to target customers.

Question 19

Even the most attractive strategic alternative might not be selected if it is contrary to the needs and desires of important top managers.

Accepted Answer

Top managers hold significant power and influence in the decision-making process, and their preferences and priorities can heavily influence the selection of a strategic alternative. Even if an alternative appears attractive on paper, it may not be chosen if it conflicts with the desires of these key decision-makers.

Question 20

The key to outsourcing is to purchase from outside only those activities that are not key to the company's distinctive competencies.

Accepted Answer

Outsourcing is most successful when a company focuses on contracting out tasks that are not critical to its core business. This allows the company to free up resources and concentrate on activities that are essential to its competitive advantage.

Quiz 8: Strategy Formulation: Functional Strategy and Strategic Choice

A company may use which of the following trade promotions to "push" their products through the distribution system?

Fujitsu demonstrated a strategy to avoid when it imitated IBM's strategy in 1990.

The attractiveness of a strategic alternative is seldom affected by its perceived compatibility with the key stakeholders in a corporation's task environment.

Which type of pricing takes advantage of the demand curve while the product is still novel and competitors are few?

The follow-the-moon management philosophy allows project team members living in one country to pass their work to team members in another country in which the work day is just beginning.

If the strategy is incompatible with the corporate culture, the likelihood of its success is very low.

When a company spends a large amount of money on trade promotion in order to gain or hold shelf space in retail outlets, a company is using a ________ strategy.

The type of marketing strategy in which a company captures a larger share of an existing market for current products through market saturation or market penetration or develops new markets for current products is called