Question 1

What sort of strategy did Thermo Electron engage in?

Accepted Answer

A

Question 2

What would a children's book publishing company probably experience by defining its business as "printing books" instead of "empowering imaginations"?

Accepted Answer

Publishing books focuses on one product,rather than a broad range of opportunities as found in "entertainment."

Question 3

What should an organization's mission statement focus on?

Accepted Answer

The choice of the market to serve determines the product and technology decisions.

Question 4

Thermo Electron Corporation,the biggest maker of measurement instruments for medical laboratories,agreed to buy the radiation-monitoring products unit of Compagnie de Saint-Gobain to gain European customers.Saint-Gobain (of France)is Europe's number-one distributor of building materials,and its radiation monitoring unit did not support the company's mission statement.
-What mission deals with satisfying customers?

Accepted Answer

The diversification into radiation monitoring equipment did not let the company focus on the market it wished to serve.

Question 5

Marketing plans should be written to do which of the following?

Accepted Answer

Marketing plans should have clearly stated objectives

Question 6

In its shareholders' report,PepsiCo states "Our business is to increase the value of our shareholder's investment.We do this through sales growth,cost controls and wise investment of resources.We believe our commercial success depends upon offering quality and value to our consumers and customers;providing products that are safe,wholesome,economically efficient and environmentally sound;and providing a fair return to our investors while adhering to the highest standards of integrity." This statement can be classified as which of the following?

Accepted Answer

A mission statement answers the question "What business are we in?"

Question 7

Compaq Computer's decision to charge customers for phone technical support to defray the high cost of phone support and encourage customers to read documentation was a failure because consumers like the human touch.Customer rebellion forced Compaq to rethink this policy.As a result,Compaq decided to focus its resources on reaching the inexpensive home computer market segment through enhanced customer service.What did Compaq engage in?

Accepted Answer

Strategic planning provides a long-term vision and thus guides long-term commitment of resources.

Question 8

Which of the following answers the question,"What business are we in,and where are we going?"

Accepted Answer

The answer of Which of the following answers the question,"What...

Question 9

What sort of strategy did Saint Gobain engage in?

Accepted Answer

Divesting means get rid of SBUS with low market share

Question 10

A popular technique for managing a large organization with different technologies and markets is to divide it into which of the following?

Accepted Answer

Dividing an organization into strategic business units (SBUs) allows for each unit to focus on a specific set of strategic target markets and/or technologies, resulting in more effective management and allocation of resources. Tactical segments and different technologies only address part of the issue, while strategic target markets can be one factor in determining the structure of the SBUs.

Question 11

Which of the following is one of the elements of the marketing plan?

Accepted Answer

One of the key elements of a marketing plan is identifying and defining the target market strategy, which involves researching and analyzing the demographics, psychographics, and behavior of potential customers. A global mission statement can be part of the overall company mission, but may not necessarily be specific to the marketing plan. A situation prediction may be helpful in developing the marketing plan, but is not a specific element. A marketing history can inform the development of the plan, but is not a component of the plan itself.

Question 12

What does the acronym SBU refer to?

Accepted Answer

SBU stands for Strategic Business Unit, a unit within a company that focuses on a specific product or market segment and operates somewhat independently from the rest of the company.

Question 13

Copan Italia is a distributor of laboratory products and manufacturer of laboratory commodities.Which of the following says that the company's business is to continually work to improve the quality of the collection and preservation of the microbiological sample in the "pre-analytical phase," as the demand for better protection of the specimen is growing day by day?

Accepted Answer

A mission statement answers the question "What business are we in?"

Question 14

What did Saint-Gobain sell?

Accepted Answer

SBUs have separate business functions from one another and have their own mission statements,markets,and planning.

Question 15

Railroads often offer their customers a trucking service for local delivery or trailers for piggybacking loads to their final destination.Which of the following statements justifies the addition of these services to their strategic plans?

Accepted Answer

A broad mission statement would recognize that the firm's business is total transportation service.

Question 16

Marketing plans can best be described by which of the following statements?

Accepted Answer

By definition,marketing plans are written.Several steps of the marketing plan can be done at the same time.The content of marketing plans varies.

Question 17

What occurs when a business is defined in terms of goods and services rather than by the benefits customers seek from it?

Accepted Answer

When a business is defined in terms of goods and services rather than by the benefits customers seek from it, it is experiencing marketing myopia - a short-sighted approach to marketing that focuses on the product rather than the customer's needs and wants. This can lead to a lack of innovation and failure to adapt to changing customer needs, ultimately resulting in a decline in sales and profits.

Question 18

What do strategic plans require?

Accepted Answer

Strategic plans are long-range plans that involve developing,organizing,and controlling marketing activities.

Question 19

What is the process of anticipating events and determining strategies to achieve organizational objectives?

Accepted Answer

Planning involves anticipating events and determining strategies to achieve organizational objectives. Evaluation involves assessing the effectiveness of strategies already in place. Forecasting involves predicting future trends and events. Implementation involves putting plans into action.

Question 20

What is the term for the managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities?

Accepted Answer

Strategic planning is the process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities. This involves analyzing the organization's strengths and weaknesses, as well as the external environment, to identify opportunities and threats, and developing strategies to achieve the organization's goals.

B) market scanning and D) environmental scanning are related concepts, but they are not the specific term for the managerial process described. Market scanning involves monitoring and gathering information about specific markets, while environmental scanning involves monitoring and gathering information about the broader external environment.

C) functional planning is a narrower concept, focused on planning for specific functions or departments within the organization, rather than the broader strategic direction.

Quiz 3: Strategic Planning for Competitive Advantage