Question 1

Refer to the scenario below to answer the following question(s).
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theater.
"My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and the arbors. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful. There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time for variety."
Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like the park's motto at the entrance reads, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
-Ron and Gail, owners of Fun-Spot, strive to provide new offerings and entertainment options for their visitors. This type of strategy can be best described as ________.
A) market penetration
B) market development
C) product development
D) niche marketing
E) diversification

Accepted Answer

Ron and Gail Hart's strategy of providing new rides and attractions to their visitors to keep things fresh and interesting can be categorized as product development. They are not expanding into new markets or diversifying into new industries, but rather focusing on enhancing their core product offering to attract and retain customers. The emphasis on making every visitor happy and providing a "total package" of entertainment also supports the idea of product development, as they are continually improving and refining their existing offerings to meet customer needs and expectations.

Question 2

What are stars according to the BCG growth-share matrix?

Accepted Answer

The answer of What are stars according to the BCG...

Question 3

An American airline company started a grocery chain in Australia. This is an example of product development.

Accepted Answer

This is an example of diversification, as the company is entering a new market with a new product line.

Question 4

What type of strategy should a company use to manage its cash cows?

Accepted Answer

The answer of What type of strategy should a company...

Question 5

The major activity in strategic planning is business portfolio analysis, whereby management evaluates the products and businesses that make up the company.

Accepted Answer

Business portfolio analysis is a major activity in strategic planning, where management evaluates the products and businesses that make up the company. This analysis helps to determine which products or business units should receive more or fewer resources and how to allocate resources for optimal growth and profitability. The most commonly used tools for business portfolio analysis are the BCG Matrix, the GE McKinsey Matrix, and the Product Life Cycle.

Question 6

Define market penetration.

Accepted Answer

The answer of Define market penetration....

Question 7

Cleats, Unlimited developed a new style of soccer shoe. This is an example of ________.
A) product development
B) market development
C) market penetration
D) diversification
E) product differentiation

Accepted Answer

Product development involves creating a new product or significantly improving an existing one. In this case, Cleats, Unlimited developed a new style of soccer shoe, which is an example of product development.

Question 8

Refer to the scenario below to answer the following question(s).
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theater.
"My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and the arbors. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful. There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time for variety."
Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like the park's motto at the entrance reads, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
-Fun-Spot Fun Park represents a high-growth, high-share business. According to the BCG matrix, it can be classified as a ________.
A) star
B) question mark
C) bear
D) cat
E) dog

Accepted Answer

The BCG matrix is a framework used to analyze a company's product portfolio based on market growth rate and market share. According to the scenario, Fun-Spot Fun Park is a high-growth, high-share business, which makes it a good fit for the "star" quadrant in the BCG matrix.
Stars represent products or businesses with high market share and high market growth. In this case, Fun-Spot Fun Park has been successful in attracting a large number of visitors and has continued to grow over the years. The park's owners also indicate that they have been able to deliver on their promise of making visitors happy, which suggests that they have been able to maintain a competitive advantage over time.
In contrast, a "question mark" business would have high market growth but low market share, indicating that it has potential for growth but has not yet established a strong foothold in the market. A "bear" business would have low market share and low market growth, indicating that it may be struggling to compete in a declining market. "Dog" businesses have low market share and low market growth, indicating that they may not be worth investing in.
Therefore, the best fit for Fun-Spot Fun Park in the BCG matrix is "star".

Question 9

A women's apparel manufacturer in California recently acquired a Houston-based company that manufactures office furniture. This is an example of ________.
A) product development
B) market development
C) market penetration
D) diversification
E) product differentiation

Accepted Answer

This is an example of diversification because the company is expanding into a completely different industry by acquiring a company that manufactures office furniture.

Question 10

Companies may want to downsize their business portfolios for all but which of the following reasons?
A) The firm may have grown too fast.
B) The firm may have entered areas where it lacks experience.
C) The customers may have purchased all they need.
D) The market environment might change.
E) The products might simply age.

Accepted Answer

Companies may want to downsize their business portfolios for various reasons, including the ones listed in options A, B, D, and E. However, the reason mentioned in option C is not a valid reason for downsizing a business portfolio. If customers have purchased all they need, it might be an indication for the company to explore new markets or create new products to meet their changing needs. Therefore, option C is the best choice for this question.

Question 11

Market development involves company growth by identifying and developing new market segments for current company products.

Accepted Answer

Market development is a strategy where a company seeks to expand its customer base by targeting new market segments with its existing products.

Question 12

On the BCG matrix, "question marks" are high-growth, high-share businesses or products.

Accepted Answer

"Question marks" in the BCG matrix are businesses or products with low market share in high-growth markets. They require significant investment to grow their market share and potentially become "stars" in the future. Therefore, they are not considered high-share businesses or products.

Question 13

Refer to the scenario below to answer the following question(s).
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theater.
"My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and the arbors. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful. There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time for variety."
Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like the park's motto at the entrance reads, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
-Fun-Spot's mission is ________.
A) product oriented
B) technology oriented
C) market oriented
D) design oriented
E) narrowly focused on profits

Accepted Answer

The scenario states that Fun-Spot Fun Park began as a small amusement park to tap into an untapped market of weekenders coming to the lakes in their rural area. The park has grown into a popular family attraction with a variety of rides, a restaurant, and an outdoor performing arts theater. The owners also mention that they try to change their rides and various attractions from time to time for variety, which indicates a focus on meeting the demands of the market. The park's motto at the entrance also reads, "We're here to make you happy!", indicating a focus on customer satisfaction. All of these factors suggest that Fun-Spot is market oriented.

Question 14

Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. This is an example of ________.
A) niche marketing
B) local marketing
C) diversification
D) product adaptation
E) downsizing

Accepted Answer

This is an example of diversification because Elmo Corp. is expanding its business operations into a new industry (office furniture exporting) that is different from its existing products (personal computers and printers).

Question 15

Company growth through diversification involves offering modified or new products to the company's current markets.

Accepted Answer

Diversification involves entering new markets with new or modified products, not just offering them to current markets.

Question 16

Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________.
A) benchmarking
B) diversification
C) mass customization
D) product development
E) downsizing

Accepted Answer

The introduction of Eva, a new mild roast by Sunny Brews, is an example of product development. Product development is a strategy used by businesses to introduce new or improved products to their existing market or to new markets. In this case, Sunny Brews identified a gap in their product line (a mild roast) and created a new product to fill that gap. The success of Eva demonstrates that this product development strategy was effective in meeting the needs and preferences of their customers.

Question 17

Market penetration involves offering modified or new products to current markets.

Accepted Answer

Market penetration involves increasing sales of existing products in existing markets, not offering modified or new products.

Question 18

Refer to the scenario below to answer the following question(s).
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theater.
"My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and the arbors. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful. There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time for variety."
Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like the park's motto at the entrance reads, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
-Ron and Gail plan to lower Fun-Spot's prices in an effort to encourage customers to stay longer, visit more often, and spend more money during each visit. What type of strategy are Ron and Gail planning?
A) market penetration
B) market development
C) product development
D) product adaptation
E) diversification

Accepted Answer

Market penetration strategy involves increasing market share by selling more of the same products or services to the same market. In this case, Fun-Spot Fun Park plans to lower their prices to encourage customers to visit more often and spend more money during each visit, which aligns with the market penetration strategy. By doing this, Fun-Spot Fun Park aims to increase its market share in the existing market.

Question 19

What is a strategic business unit (SBU)?

Accepted Answer

The answer of What is a strategic business unit (SBU)?...

Question 20

The major activity in strategic planning is product innovation.

Accepted Answer

Strategic planning involves setting long-term goals and determining the best approach to achieve them, which includes various activities such as market analysis, resource allocation, and competitive positioning, not just product innovation.

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

What are stars according to the BCG growth-share matrix?

An American airline company started a grocery chain in Australia. This is an example of product development.

What type of strategy should a company use to manage its cash cows?

The major activity in strategic planning is business portfolio analysis, whereby management evaluates the products and businesses that make up the company.

Define market penetration.

Cleats, Unlimited developed a new style of soccer shoe. This is an example of ________.

A women's apparel manufacturer in California recently acquired a Houston-based company that manufactures office furniture. This is an example of ________.

Companies may want to downsize their business portfolios for all but which of the following reasons?