Question 1

With hospitals nationwide facing budget cuts and slimmer profit margins,Dekalb County's Medical Center decided to cash in on one of the most consistently profitable services--delivering babies.It initiated a three-year project to build a $55 million state-of-the-art women's center with 18 labor and delivery suites.When the hospital decided to commit its resources to obstetrics,it was engaging in:

Accepted Answer

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

Question 2

Heinz has announced that they plan to grow the company through an accelerated push into emerging markets such as China,Indonesia,and India in the next ten years.This is an example of:

Accepted Answer

Strategic planning is the managerial process of creating and maintaining a fit between the organization's objectives and evolving market opportunities.

Question 3

The four Ps of the marketing mix are product,planning,promotion,and price.

Accepted Answer

The four Ps are product,place,promotion,and price.

Question 4

Which of the following is a type of strategic alternative that tries to increase market share among existing customers?

Accepted Answer

Market penetration is a strategic alternative that involves increasing market share among existing customers by using various marketing tactics such as sales promotions, advertising, and improving customer service. This approach is focused on increasing revenue and profits from existing markets rather than developing new markets or products.

Question 5

Market penetration occurs when:

Accepted Answer

Market penetration is the marketing of the same product to current customers.

Question 6

_____ is the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities.

Accepted Answer

This is the definition of strategic planning.

Question 7

Subgroups of a single business or collection of related businesses within a larger organization are referred to as:

Accepted Answer

A strategic business unit (SBU)is a subgroup of a single business or collection of related businesses within the larger organization.

Question 8

Typically,the development of the marketing mix starts with determining the promotion for a product.

Accepted Answer

The development of the marketing mix begins with the product.

Question 9

A strategic business unit (SBU):

Accepted Answer

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

Question 10

_____ is a strategy of increasing market share for present products in existing markets.

Accepted Answer

This is the definition of market penetration.

Question 11

Until spun off in 2007,Kraft was part of Altria Group,Inc.Kraft had its own management team,mission statement,and target markets different from Altria.Kraft was a _____ of Altria.

Accepted Answer

A strategic business unit usually has its own mission statement,target markets,and separate functional departments.

Question 12

A marketing audit helps management allocate marketing resources efficiently.

Accepted Answer

A marketing audit is a thorough evaluation of a company's marketing strategy, objectives, and activities that helps management identify areas of strengths, weaknesses, opportunities, and threats. This information can be used to allocate marketing resources efficiently and make informed decisions to improve the effectiveness of marketing efforts.

Question 13

Chrysler has a financial unit that is responsible for vehicle leases to consumers.It has a distinct mission,control over its resources,and plans independent of the other divisions of Chrysler.This financial unit is an example of a(n):

Accepted Answer

A strategic business unit is a subgroup of a single business or collection of related businesses within a larger organization.

Question 14

A popular technique for managing a large organization with different technologies and markets is to divide it into:

Accepted Answer

A strategic business unit (SBU)is a subgroup of a single business or collection of related businesses within the larger organization.

Question 15

Strategic plans require:

Accepted Answer

The goal of strategic planning is long-run profitability and growth.Thus,strategic decisions require long-term commitments of resources.

Question 16

Yildiz Holding of Turkey purchased Godiva Chocolates from Campbell's Soup Company.Campbell's sold one of its:

Accepted Answer

An SBU is a subgroup of a single business or collection of related businesses within the larger organization.

Question 17

Since gas prices have soared and consumers have cut back on their spending on new trucks and SUVs,Ford Motor Corporation is transforming several of its plants to create small cars.Ford has engaged in:

Accepted Answer

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

Question 18

The SBU acronym refers to:

Accepted Answer

SBU refers to strategic business unit,which is a subgroup of a single business or collection of related businesses within the larger organization.

Question 19

Strategic planning is most effective when managers view it as an annual exercise.

Accepted Answer

Strategic planning requires creativity and an ongoing commitment,not just going through the motions once a year.

Question 20

The most critical element for successful strategic planning is top management's support and participation.

Accepted Answer

Top management's support and participation is crucial in implementing effective strategic planning as it ensures that the plan is aligned with the organization's goals and objectives and can effectively guide the organization towards achieving its mission. Without management support and involvement, there is a higher risk of resistance and failure to implement the plan, resulting in wasted resources and missed opportunities.

Quiz 3: Strategic Planning for Competitive Advantage