Question 1

According to the "continuum of environmental sensitivity," which of the following types of products are less sensitive to environmental changes?
A) "Faddy" type consumer products
B) Industrial products
C) Basic commodity-type consumer products
D) Consumer products that are linked to cultural variables
E) All of these types of products are equally sensitive to environmental changes.

Accepted Answer

Most industrial products are near the insensitive end of continuum of environmental sensitivity.

Question 2

GE's planning grid approach
A) doesn't work because different managers usually come to different conclusions given the subjective evaluations involved.
B) is really the same thing as the total profit approach.
C) overemphasizes short term profitability.
D) is superficial because it considers only size and expected market share, and ignores other possibly important factors.
E) could be adapted easily by another firm with different objectives.

Accepted Answer

GE's planning grid approach could be adapted by another firm which might modify the evaluation to emphasize other screening criteria depending on its objectives and the type of product-market plans it is considering.

Question 3

When a firm has multiple market opportunities from which to choose, marketers can use the following tool to identify the best ones:
A) Competitor analysis
B) Competitor matrix
C) Focus group
D) S.W.O.T. analysis
E) Strategic planning grid

Accepted Answer

When a firm has many possibilities to evaluate, it usually has to compare quite different ones. This problem is easier to handle with graphical approaches such as the nine-box strategic planning grid used by many companies.

Question 4

When screening for the best market opportunity for a firm, marketers should always avoid options that would combine:
A) high industry attractiveness and the firm's strengths.
B) medium industry attractiveness and the firm's strengths.
C) low industry attractiveness and the firm's weaknesses.
D) high industry attractiveness and the firm's weaknesses.
E) medium industry attractiveness and the firm's medium strengths.

Accepted Answer

When screening for opportunities, marketers must always avoid ventures that possess low industry attractiveness and expose the firm's weaknesses.

Question 5

With General Electric's strategic planning grid:
A) the industry attractiveness dimension focuses on the ability of the company to pursue a product-market plan effectively.
B) managers must follow an objective, single-factor approach.
C) the business strengths dimension focuses on whether this product-market plan looks like a good idea.
D) managers make three-part judgments about the business strengths and industry attractiveness of all proposed or existing product-market plans.
E) opportunities that fall into the red boxes are the firm's best growth opportunities.

Accepted Answer

General Electric's (GE) strategic planning grid forces company managers to make three-part judgments about the business strengths and industry attractiveness.

Question 6

Using General Electric's "strategic planning grid," an opportunity rated "medium" in terms of industry attractiveness and "high" in terms of business strengths would be evaluated as:
A) yellow-borderline.
B) red-for no growth.
C) green-for growth.
D) could be yellow, red, or green-because the grid suggests that opportunities with medium ratings need more analysis.

Accepted Answer

GE feels opportunities that fall into the green boxes of the grid are its best growth opportunities.

Question 7

The _____ dimension of the GE grid helps managers answer the question: Does this product-market plan look like a good idea?
A) business strengths
B) quantitative criteria
C) industry attractiveness
D) relative positioning
E) qualitative criteria

Accepted Answer

The industry attractiveness dimension helps managers answer the question: Does this product-market plan look like a good idea?

Question 8

According to the "continuum of environmental sensitivity," which of the following types of products would be most sensitive to environmental changes?
A) Consumer products that are basically a commodity-like gasoline
B) Industrial products
C) Consumer products that are tied to cultural differences-like diet colas
D) Manufacturing products
E) Engineering products

Accepted Answer

Consumer products closely linked to other social or cultural variables are near the sensitive end of continuum of environmental sensitivity.

Question 9

General Electric's "strategic planning grid":
A) focuses on market share and market growth rate.
B) ignores some important issues-such as competitive structure and the environmental impact of a plan.
C) requires that all opportunities be judged either "High" or "Low."
D) substitutes quantitative estimates for management judgment.
E) None of these is true.

Accepted Answer

General Electric's (GE) strategic planning grid forces company managers to make three-part judgments about the business strengths and industry attractiveness and focuses on the ability of the company to pursue a product-market plan effectively. It is a subjective, multiple-factor approach.

Question 10

Using General Electric's "strategic planning grid," an opportunity rated "medium" in terms of industry attractiveness and "medium" in terms of business strengths would be evaluated as:
A) yellow-borderline.
B) red-for no growth.
C) green-for growth.
D) could be yellow, red, or green-because the grid really doesn't deal with "medium" ratings.

Accepted Answer

In a General Electric's "strategic planning grid," yellow businesses are borderline cases wherein opportunities are rated "medium".

Question 11

General Electric's "strategic planning grid" is an approach for:
A) evaluating possible marketing objectives.
B) selecting target markets.
C) evaluating existing and possible plans.
D) developing new products.
E) developing marketing mixes.

Accepted Answer

General Electric's (GE) strategic planning grid forces company managers to make three-part judgments about the business strengths and industry attractiveness of all proposed or existing product-market plans.

Question 12

GE's Planning Grid approach to evaluating proposed and existing plans and businesses:
A) considers how profitable opportunities are likely to be.
B) reflects the corporation's objectives.
C) helps managers see why some ideas are supported and others are not.
D) can use quantitative data but it is basically a qualitative approach.
E) All of these alternatives about GE's Planning Grid are true.

Accepted Answer

General Electric's (GE) strategic planning grid forces company managers to make three-part judgments about the business strengths and industry attractiveness of all proposed or existing product-market plans. It uses quantitative data but is basically a qualitative approach that uses multiple factors.

Question 13

Which of the following would help prevent marketing mistakes in evaluating international market opportunities?
A) Assume that all cultures around the world are the same.
B) Do not "think locally."
C) Use machine translators.
D) Include local citizens in the evaluation process.
E) Save money by cutting research into foreign markets.

Accepted Answer

A local citizen who knows the market environment may be able to identify an obvious problem ignored even in a careful analysis. Thus, it is very useful for the analysis to include inputs from locals.

Question 14

Which of the following types of products is LEAST sensitive to environmental changes, according to the "continuum of environmental sensitivity"?
A) Industrial products.
B) Commodity-type consumer products.
C) Consumer products linked to cultural variables.
D) "Me-too" products.
E) Fad products.

Accepted Answer

Most industrial products are near the insensitive end of continuum of environmental sensitivity.

Question 15

According to the General Electric strategic planning grid, an opportunity which is low on the "business strengths" dimension but high on the "industry attractiveness" should be:
A) called a strategic business unit.
B) supported if it is an existing business, but probably not supported if it is a new opportunity.
C) immediately supported with large investment.
D) sold off or discontinued.
E) viewed as a "green" (high growth) opportunity.

Accepted Answer

When an opportunity is low on the business strengths dimension but high on the industry attractiveness, GE may continue to support an existing business but will probably reject a proposal for a new one.

Question 16

The business strengths dimension of the GE grid focuses on:
A) market diversity.
B) the question: Does this product-market plan look like a good idea?
C) the ability of the company to pursue a product-market plan effectively.
D) industry profitability.
E) the social and legal environment.

Accepted Answer

The business strengths dimension of the GE focuses on the ability of the company to pursue a product-market plan effectively.

Question 17

According to the General Electric strategic planning grid, a business that is the strongest in its industry:
A) should still be considered as a "no-growth" prospect unless the industry attractiveness is high.
B) is a good prospect, provided the industry has at least medium attractiveness.
C) should automatically receive a large investment.
D) All of these alternatives about GE's strategic planning grid are true.

Accepted Answer

General Electric's strategic planning grid shows that a business that is the strongest in its industry is usually a good prospect especially if its industry has at least medium attractiveness.

Question 18

The "continuum of environmental sensitivity" suggests that:
A) some products are more adaptable to international markets than others.
B) it is extremely risky to sell basic commodities in international markets.
C) industrial products need to be adapted more than consumer products for international markets.
D) All of these statements about the continuum of environmental sensitivity are true.

Accepted Answer

The continuum of environmental sensitivity suggests that some products are more adaptable to international markets than others.

Question 19

Evaluating opportunities in international markets is uniquely challenging for managers because:
A) international variables are confusing and unfamiliar to outsiders.
B) there are so many opportunities from which to choose.
C) marketing in other countries is entirely different from marketing in a domestic setting.
D) international consumers rarely share the same needs.
E) other nations do not welcome foreign businesses.

Accepted Answer

Managers have difficulty understanding market environment variables of other nations due to their lack of familiarity.

Question 20

General Electric's "strategic planning grid":
A) focuses on market share and market growth rate.
B) requires subjective judgments about business strengths and industry attractiveness.
C) requires that all opportunities be judged either "High" or "Low."
D) substitutes quantitative estimates for management judgment.
E) All of these alternatives about GE's strategic planning grid are true.

Accepted Answer

GE's evaluation method is a subjective, multiple-factor approach.

Quiz 3: Evaluating Opportunities in the Changing Market Environment

According to the "continuum of environmental sensitivity," which of the following types of products are less sensitive to environmental changes?

GE's planning grid approach

When a firm has multiple market opportunities from which to choose, marketers can use the following tool to identify the best ones:

When screening for the best market opportunity for a firm, marketers should always avoid options that would combine:

With General Electric's strategic planning grid:

Using General Electric's "strategic planning grid," an opportunity rated "medium" in terms of industry attractiveness and "high" in terms of business strengths would be evaluated as:

The _____ dimension of the GE grid helps managers answer the question: Does this product-market plan look like a good idea?

According to the "continuum of environmental sensitivity," which of the following types of products would be most sensitive to environmental changes?

General Electric's "strategic planning grid":

Using General Electric's "strategic planning grid," an opportunity rated "medium" in terms of industry attractiveness and "medium" in terms of business strengths would be evaluated as:

General Electric's "strategic planning grid" is an approach for:

GE's Planning Grid approach to evaluating proposed and existing plans and businesses:

Which of the following would help prevent marketing mistakes in evaluating international market opportunities?

Which of the following types of products is LEAST sensitive to environmental changes, according to the "continuum of environmental sensitivity"?

According to the General Electric strategic planning grid, an opportunity which is low on the "business strengths" dimension but high on the "industry attractiveness" should be:

The business strengths dimension of the GE grid focuses on:

According to the General Electric strategic planning grid, a business that is the strongest in its industry:

The "continuum of environmental sensitivity" suggests that:

Evaluating opportunities in international markets is uniquely challenging for managers because:

General Electric's "strategic planning grid":