Question 1

The BCG approach to portfolio analysis is less likely to provide a useful framework for analysis when which of the following conditions is evident?
A)It is difficult to define the organisational SBUs.
B)It is difficult to measure market share.
C)It is difficult to measure market growth rates.
D)There are no direct competitors.
E)All of the above.

Accepted Answer

All of the above conditions make the BCG approach to portfolio analysis less likely to provide a useful framework for analysis. If it is difficult to define the organisational SBUs, then it will be hard to identify which products or services to include in the analysis. If it is difficult to measure market share or growth rates, then it will be hard to identify which products or services are cash cows, stars, question marks, or dogs. If there are no direct competitors, then the analysis will need to be modified to account for this unusual circumstance.

Question 2

In the Boston Consulting Group approach,________ serve(s)as a measure of company strength in the market.
A)relative market share
B)annual sales or profits
C)resource utilisation
D)market growth rate
E)capital investment

Accepted Answer

The Boston Consulting Group approach uses the relative market share as a measure of company strength in the market because it indicates a company's position compared to its competitors in the industry. A high relative market share means that the company is a market leader or has a strong competitive advantage, while a low relative market share means that the company has a weaker position in the market.

Question 3

In the BCG matrix,income from ________ can be used to help finance the company's question marks and stars.
A)dogs
B)SBUs
C)cash cows
D)sales revenue
E)overseas operations

Accepted Answer

The BCG matrix divides a company’s product portfolio into four categories, namely cash cows, stars, question marks, and dogs. Cash cows are products that generate high revenue and profits, while stars are products that have high growth potential and high market share. In contrast, question marks have low market share but high growth potential, while dogs have low market share and low growth potential. Income from cash cows can be used to help finance the company’s question marks and stars, as they require significant investment to sustain growth and market share. Therefore, the best choice is C, cash cows.

Question 4

The beverage,Lucozade,was originally marketed as a nutrient rich beverage that was easily tolerated by a fragile or distressed digestive system.Sick children were the intended consumers for the initial product.Eventually,Lucozade was rebranded and repositioned as a beverage for active persons,with athletes becoming the primary target market.Lucozade's ability to find a new market for its existing product is an example of ________.
A)marketing controls
B)market development
C)diversification
D)market penetration
E)product development

Accepted Answer

Lucozade's shift to targeting active persons and athletes is an example of market development, which is the process of finding and entering new markets for existing products. This is different from product development (creating new products for existing markets), market penetration (increasing market share within existing markets), and diversification (entering new markets with new products). Marketing controls refer to the evaluation, monitoring, and adjustment of marketing strategies and tactics.

Question 5

A strategy focused on generating more sales from existing customers without changing a firm's products is ________.
A)market development
B)market growth
C)market penetration
D)product development
E)market attractiveness

Accepted Answer

Market penetration is a strategy that aims to increase sales of existing products within existing markets. It focuses on the current customer base and aims to sell more to them through various tactics such as promotions, discounts, loyalty programs, etc. It does not involve introducing new products or entering new markets.

Question 6

In 1982,the manufacturer of carbonated drinks,the Coca Cola Group,acquired the feature film maker,Columbia Pictures,and retained control over it for almost a decade.This stage of the Coca Cola Group's history is an example of ________.
A)marketing controls
B)market development
C)diversification
D)market penetration
E)product development

Accepted Answer

The acquisition of a feature film maker by a carbonated drink manufacturer represents diversification, as the two industries are not directly related.

Question 7

In the BCG approach,the most likely candidate for divestment decisions is a ________.
A)star
B)dog
C)question mark
D)cash cow
E)cat

Accepted Answer

According to the BCG approach, dogs are the most likely candidates for divestment decisions. Dogs have a small market share in a low-growth industry, and they often generate little to no profit. As a result, companies may choose to divest these products or business units and invest in more promising opportunities.

Question 8

The four possible strategies that can be pursued for each SBU are building,holding,________ and ________.
A)harvesting;divesting
B)promoting;selling
C)downsizing;expanding
D)diversifying;penetrating
E)developing;growing

Accepted Answer

The other options (B, C, D, E) do not accurately reflect the common strategies for SBUs, whereas harvesting and divesting are commonly used strategies. Harvesting involves reducing investment in the SBU to maximize short-term cash flow, while divesting involves selling off or closing down an SBU that is not performing well. Thus, A is the best choice.

Question 9

The BCG growth-share matrix classifies four types of SBUs.They are ________,________,________,and ________.
A)stars;moons;planets;galaxies
B)sales generating;profitable profits;resource-intensive;asset rich
C)stars;cash cows;question marks;dogs
D)growth;mature;declining;divestment
E)market penetration;market development;product development;diversification

Accepted Answer

The BCG growth-share matrix classifies strategic business units (SBUs) as stars, cash cows, question marks, and dogs based on their market growth rate and relative market share. Stars have high growth and high market share, cash cows have low growth but high market share, question marks have high growth but low market share, and dogs have low growth and low market share. Option A is incorrect as it lists nonsensical types of SBUs. Option B is incorrect as it lists different criteria for classification. Option D is incorrect as it lists stages of the product life cycle rather than types of SBUs. Option E is incorrect as it lists different growth strategies rather than types of SBUs.

Question 10

Which of the following is a useful tool for identifying growth opportunities?
A)the BCG matrix
B)the business portfolio
C)the product / market expansion grid
D)the value chain
E)the value delivery network

Accepted Answer

The product/market expansion grid is a useful tool for identifying growth opportunities as it helps to identify different strategies for expanding into new product and market segments. This tool helps in mapping out the potential opportunities that a company can explore, and helps in creating a framework for analyzing the profitability and viability of each opportunity. The BCG matrix is useful for analyzing a company's existing product portfolio, the business portfolio helps to evaluate a company's overall investment and growth strategies, the value chain helps to identify the activities that add value to a product or service, and the value delivery network is a framework for assessing how a company delivers value to its customers. All of these are important tools, but they do not specifically focus on identifying growth opportunities.

Question 11

When dealing with a ________,managers must decide whether to invest in it in an attempt to build it into a star or cash cow,or whether to phase it out.
A)star
B)dog
C)question mark
D)cash cow
E)cat

Accepted Answer

The correct answer is "question mark." In the context of the BCG matrix, a question mark (also known as a problem child) represents a business unit that has a small market share in a rapidly growing market. Managers face the decision of investing resources to increase its market share (hoping to turn it into a star and eventually a cash cow) or phasing it out if the required investment is deemed too high or risky.

Question 12

Since its inception in 1886,the Coca Cola Group has always been associated with the manufacture and sale of flavoured,carbonated beverages.However,in recent years,the sale of carbonated beverages has been exhibiting long-term decline,forcing the company to investigate new products to add to its portfolio.Today,Coca Cola is active in fruit juices,sports drinks,energy drinks,ready-to-drink tea and coffee,still and sparkling mineral waters and vitamin waters.Coca Cola's move into a more diverse range of beverages is an example of ________.
A)marketing controls
B)market development
C)diversification
D)market penetration
E)product development

Accepted Answer

The answer of Since its inception in 1886,the Coca Cola...

Question 13

Unlike strategic-planning efforts of the past,which were conducted primarily by senior managers,today's strategic planning is more ________.
A)short-term oriented
B)decentralised
C)limitation-free
D)product-oriented
E)centralised

Accepted Answer

Today's strategic planning is more decentralised, meaning that it involves input and participation from employees at all levels of the organization rather than being solely conducted by senior managers. This allows for a more diverse range of perspectives and can result in more effective and practical strategic plans.

Question 14

Which of the following does NOT accurately reflect a problem with the BCG matrix approach?
A)It focuses on future planning.
B)It can be costly to conduct.
C)It can be time consuming to implement.
D)It is difficult to define SBUs and measure market share and growth.
E)It focuses on classifying current businesses.

Accepted Answer

The BCG matrix approach is actually criticized for focusing too much on past performance and not enough on future planning.

Question 15

If a maker of exercise shirts and shorts considered introducing a line of fitness equipment,the company would be considering ________.
A)marketing controls
B)market development
C)diversification
D)market penetration
E)product adaptation

Accepted Answer

Diversification is the process of entering a new market with a new product that is not related to the existing product line. In this case, introducing a line of fitness equipment is a new product and a new market for the maker of exercise shirts and shorts.

Question 16

In the BCG approach,________ are low-growth,high share businesses or products.They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment.
A)Stars
B)Cash cows
C)Question marks
D)Dogs
E)Cats

Accepted Answer

Cash cows are described as low-growth, high-share businesses that generate a lot of cash. The purpose of cash cows is to provide resources that can be used to support other SBUs that need investment.

Question 17

Sass and Bide,according to the text,could use the product / market expansion grid to develop strategies.The owners of the company would most likely find the grid to be quite useful for identifying ________.
A)target markets
B)growth opportunities
C)key customers
D)new products
E)suppliers

Accepted Answer

The product/market expansion grid is a useful tool for identifying growth opportunities. This could help Sass and Bide determine which markets they should expand into or what new products they should develop to increase their sales and profitability. While the other options (target markets, key customers, new products, and suppliers) are all important factors for a business, they are not the primary focus of the product/market expansion grid.

Question 18

In the BCG approach to portfolio planning,________ are high-share,high-growth businesses or products.They need heavy investment to finance rapid growth.When their growth slows down,they turn into ________.
A)cash cows;stars
B)question marks;dogs
C)stars;question marks
D)stars;cash cows
E)dogs;cash cows

Accepted Answer

According to the BCG approach, high-share, high-growth businesses or products are called "stars," which require heavy investment to sustain rapid growth. As their growth slows down, they turn into "cash cows," which generate high profits but require less investment. Therefore, the correct answer is D: stars; cash cows. A is incorrect because cash cows are not high-growth businesses or products. B is incorrect because "question marks" are low-share, high-growth businesses that require a lot of investment but may not generate good returns. C is incorrect because it is the reverse of the correct answer. E is incorrect because "dogs" are low-share, low-growth products that are not profitable and require little investment.

Question 19

Disney is identifying and developing new market segments for its theme parks.Disney is exploring possibilities for ________.
A)market penetration
B)market development
C)downsizing
D)diversification
E)product development

Accepted Answer

Market development refers to identifying and developing new market segments for existing products or services. This is exactly what Disney is doing by exploring possibilities for its theme parks.

Question 20

In the Boston Consulting Group approach,________ provide(s)a measure of market attractiveness.
A)relative market share
B)annual sales or profits
C)resource utilisation
D)market growth rate
E)capital investment

Accepted Answer

According to the Boston Consulting Group approach, market growth rate provides a measure of market attractiveness. This is because a high growth rate suggests that the market has potential for increased sales and profits, and is therefore attractive for investment. Conversely, a low growth rate indicates a less attractive market.

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

The BCG approach to portfolio analysis is less likely to provide a useful framework for analysis when which of the following conditions is evident?

In the Boston Consulting Group approach,________ serve(s) as a measure of company strength in the market.

In the BCG matrix,income from ________ can be used to help finance the company's question marks and stars.

A strategy focused on generating more sales from existing customers without changing a firm's products is ________.

In 1982,the manufacturer of carbonated drinks,the Coca Cola Group,acquired the feature film maker,Columbia Pictures,and retained control over it for almost a decade.This stage of the Coca Cola Group's history is an example of ________.

In the BCG approach,the most likely candidate for divestment decisions is a ________.

The four possible strategies that can be pursued for each SBU are building,holding, and .

The BCG growth-share matrix classifies four types of SBUs.They are ,,,and .

Which of the following is a useful tool for identifying growth opportunities?

When dealing with a ________,managers must decide whether to invest in it in an attempt to build it into a star or cash cow,or whether to phase it out.

Unlike strategic-planning efforts of the past,which were conducted primarily by senior managers,today's strategic planning is more ________.

Which of the following does NOT accurately reflect a problem with the BCG matrix approach?

If a maker of exercise shirts and shorts considered introducing a line of fitness equipment,the company would be considering ________.

In the BCG approach,________ are low-growth,high share businesses or products.They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment.

Sass and Bide,according to the text,could use the product / market expansion grid to develop strategies.The owners of the company would most likely find the grid to be quite useful for identifying ________.

In the BCG approach to portfolio planning, are high-share,high-growth businesses or products.They need heavy investment to finance rapid growth.When their growth slows down,they turn into .

Disney is identifying and developing new market segments for its theme parks.Disney is exploring possibilities for ________.

In the Boston Consulting Group approach,________ provide(s) a measure of market attractiveness.