Question 1

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

Accepted Answer

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

Question 2

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

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

Question 3

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:

Accepted Answer

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

Question 4

GE's planning grid approach

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 5

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

Accepted Answer

International products

Question 6

General Electric's "strategic planning grid":

Accepted Answer

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

Question 7

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:

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 8

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

Accepted Answer

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

Question 9

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

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 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:

Accepted Answer

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

Question 11

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

Accepted Answer

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

Question 12

The "continuum of environmental sensitivity" suggests that:

Accepted Answer

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

Quiz 5: Evaluating Opportunities in the Changing Market Environment