Question 1

SBUs with dominant shares of slow-growth markets that provide cash to cover the organization's overhead and to invest in other SBUs are referred to as _________.

Accepted Answer

Cash cows are SBUs with high market share in a slow-growth market. They generate significant cash flows which can be used to cover the overhead costs of the organization and invest in other SBUs with greater growth potential. Stars are SBUs with high market share in a high-growth market, question marks are SBUs with low market share in a high-growth market and dogs are SBUs with low market share in a slow-growth market. Problem children are another name for question marks.

Question 2

Although now a part of Sears, Lands' End was primarily known as a catalog retailer.This means that traditional department stores, mass merchandisers, specialty shops, and other catalog retailers are considered to be

Accepted Answer

Lands' End was primarily known as a catalog retailer, so its competition would be other retailers who also sell clothes through catalogs, as well as brick and mortar stores. This would include traditional department stores, mass merchandisers, specialty shops, and other catalog retailers. Therefore, choice A is the best answer. Choice B (cross-functional competition) and choice C (functional competition) do not accurately describe Lands' End's competitors. Choice D (non-competitive to Lands' End's clothing) is not correct because Lands' End has competition in the clothing industry. Choice E (potential Land's End's acquisitions) doesn't make sense in this context as Lands' End is the company being discussed, not a company that is looking to acquire others.

Question 3

The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position of each of its SBUs on a growth-share matrix.The horizontal axis is the

Accepted Answer

The horizontal axis of the BCG growth-share matrix represents the market share of an SBU relative to its largest competitor.

Question 4

Evergreen Air Center is the world's biggest parking lot for unwanted aircraft.Airlines pay a monthly fee from $750 to $5,000 to mothball airplanes at this site.Its location is on 1,600 acres of Arizona desert.The Southwest climate serves as a cheap and effective airplane preservative.Evergreen's location is its

Accepted Answer

The answer of Evergreen Air Center is the world's biggest...

Question 5

Business portfolio analysis refers to

Accepted Answer

Business portfolio analysis is a technique used by managers to evaluate the performance and growth potential of their company's strategic business units (SBUs) as if they were separate investments. This involves quantifying performance measures and growth targets for each SBU and then determining the overall impact on the company's portfolio. The goal is to identify which SBUs are contributing the most to the company's success and which may need to be divested or invested in further.

Question 6

An organization's special capabilities, including skills, technology, and resources that distinguish it from other organizations and that provide value to its customers are referred to as

Accepted Answer

The term used to describe an organization's special capabilities that distinguish it from others and provide value to its customers is core competencies. Core competencies refer to the combination of skills, technology, and resources that give an organization a competitive advantage in the marketplace. These competencies are difficult to duplicate or imitate, making them a sustainable advantage for the organization. A market edge, business aptitude, and characteristics do not accurately describe this concept.

Question 7

Men's Wearhouse (MW) caters to the man who doesn't necessarily enjoy shopping.The stores are located in outdoor shopping centers so that customers can get in and out quickly.Additionally the MW targets the budget-conscious consumer with suit prices ranging from $250-300.Earnings rose 23% recently, indicating that the location of the stores and the pricing strategy both are part of the MW

Accepted Answer

Men's Wearhouse has a competitive advantage based on its strategic positioning in outdoor shopping centers and its pricing strategy aimed at budget-conscious consumers. The 23% earnings increase is also indicative of this competitive advantage.

Question 8

Mobile phone companies broke the age-old business rule of staying within their __________ by going beyond their expertise in running networks and billing subscribers to designing handsets.Nokia, on the other hand, boosted its success in handsets in large part by staying focused on what it does best: manufacturing handsets and watching carefully for the latest consumer trends.

Accepted Answer

The missing word in the sentence refers to the area of expertise or skill set of mobile phone companies. "Competency" is the best choice in this context as it specifically means "the ability to do something successfully or efficiently" and relates to the idea of staying within one's area of expertise. Option A (goals), B (mission), C (innovative vision), and E (action program) do not directly address the notion of expertise or skill set.

Question 9

Competitive advantage refers to

Accepted Answer

Competitive advantage refers to a unique strength that a company has compared to its competitors, allowing it to provide superior returns to customers in terms of quality, time, cost or innovation. This advantage can help the company to maintain a market position or even grow in the face of competition. Options A, D, and E have negative connotations and are unethical or illegal practices, whereas option B talks about long-term relationships with distributors and suppliers, which may provide benefits, but it does not necessarily guarantee a competitive advantage.

Question 10

VideoAdvantage.net is a small company that rents DVD movies by mail using the Web.It jumped into an industry where there were no firm leaders but many competitors.It established a loyal clientele by seizing the opportunity to provide a service that was not available through other companies that rented movies over the Internet-reliable overnight shipment.Its delivery system created its

Accepted Answer

VideoAdvantage.net established a competitive advantage by providing a service that was not available through other companies that rented movies over the Internet - reliable overnight shipment. This helped the company to establish a loyal clientele and stand out in a crowded market with no clear leaders.

Question 11

The Boston Consulting Group (BCG) uses business portfolio analysis to quantify performance measures and growth targets to analyze its clients' strategic business units

Accepted Answer

BCG's business portfolio analysis approach considers each strategic business unit as if it were a separate investment. The goal is to determine the unit's potential for growth and profitability in order to allocate resources appropriately. The analysis involves plotting the unit's market share and growth rate on a matrix and categorizing it as a cash cow, star, question mark, or dog. This helps the company prioritize investments and develop a balanced portfolio of units.

Question 12

Designing a car is expensive and time-consuming even with the use of computers because until recently there was no way for all the varied departments that are involved in new car development to work together.Daimler-Chrysler created a unique central Web-based system that cuts the design and production process by at least two years, thus providing value to the customer.This is an example of a(n)

Accepted Answer

The answer of Designing a car is expensive and time-consuming...

Question 13

The primary purpose of business portfolio analysis is to

Accepted Answer

The primary purpose of business portfolio analysis is to assess the appeal of each SBU or offering and determine the allocation of cash among them. It helps in portfolio planning, resource allocation, and identifying which SBUs require investment and which need to be divested.

Question 14

In the Boston Consulting Group (BCG) model for analysis of a firm's strategic business units, or SBUs, the horizontal axis reflects the

Accepted Answer

The horizontal axis in the BCG model represents the relative market share of a firm's strategic business units (SBUs) and ranges from low to high. This axis is used to measure the SBU's position in the market and its level of competitiveness compared to other players in the industry.

Question 15

A technique that managers use to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs) as though they were a collection of separate investments is referred to as

Accepted Answer

The technique described in the question is commonly known as business portfolio analysis, which involves assessing the performance of different strategic business units (SBUs) as if they were a portfolio of investments. This technique helps managers make strategic decisions about resource allocation and investment priorities, by identifying which SBUs are most promising and which ones need to be divested or repositioned. The other answer choices are not accurate descriptions of this technique.

Question 16

There are two commonly used techniques to aid mangers with important decisions for setting a direction and allocating resources.These include __________ and __________ analysis strategies.

Accepted Answer

The two commonly used techniques for aiding managers with important decisions for setting a direction and allocating resources are business portfolio analysis and diversification strategies. Business portfolio analysis involves analyzing the company's portfolio of products or services to identify which ones are profitable and which ones are not. Diversification strategies involve expanding the company's portfolio to include new products or services to minimize risk and increase profitability.

Question 17

The Boston Consulting Group (BCG) uses __________ to quantify performance measures and growth targets to analyze its clients' SBUs as though they were a collection of separate investments.

Accepted Answer

The given description matches the business portfolio analysis technique used by BCG, which treats a company's SBUs as a portfolio of separate investments and uses performance measures and growth targets to analyze each unit's potential. Options A, C, D, and E do not accurately describe BCG's approach.

Question 18

A unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation is referred to as

Accepted Answer

A competitive advantage is a unique strength that sets a company apart from its competitors, providing superior returns based on certain factors such as quality, time, cost, or innovation. It allows a company to achieve higher sales, customer loyalty, and profitability compared to its competitors.

Question 19

The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position of each of its SBUs on a growth-share matrix.The vertical axis is

Accepted Answer

The vertical axis in the BCG matrix represents the annual rate of growth of the SBU's industry. This is important in determining the potential for the SBU's future growth and contribution to the overall portfolio. The horizontal axis of the matrix represents the market share, which is also a critical factor in determining the competitive position of the SBU.

Question 20

Rhone-Poulenc is an international French company that produces and markets a variety of chemicals and pharmaceuticals.Due to the resources it makes available to its scientists and researchers, the company has a number of Nobel Prize winners working in its laboratories.This ability to attract some of the finest minds in the world to its workforce is an example of a(n):

Accepted Answer

Rhone-Poulenc's ability to attract Nobel Prize winners indicates that it has a core competency in scientific research and development, which sets it apart from its competitors. This core competency is a key driver of the company's success and helps it to maintain a sustainable advantage in the marketplace. While human resource strategy may also be a factor in attracting top talent, it is ultimately the core competency that creates value for the company. Product development strategy and synergistic capability are not relevant to the company's ability to attract top talent.

Quiz 2: Developing Successful Marketing and Organizational Strategies