Deck 2: The Marketing Implications of Corporate and Business Strategies

Question 1

As industries mature,sales volume levels off and technological differences among brands tend to shrink.

Answer 1

True

Question 2

A company's possession of resources that its competitors do not have makes it sufficient for the company to have superior performance.

Answer 2

False

Question 3

In large-scale companies,corporate and business-level strategic issues mirror each other.

Answer 3

False

Question 4

How a business unit competes within its industry is the critical focus of business-level strategy.

Question 5

Strategic inertia refers to the automatic continuation of strategies successful in the past,even though current market conditions are changing.

Question 6

Ethical standards emerge only after the negative consequences of an action become apparent.

Question 7

Customer satisfaction and loyalty are also determined by factors other than the product itself or the activities of the marketing department.

Question 8

When specifying short-term business-level and marketing goals,important dimensions include their relevance to higher-level strategies and goals and their attainability.

Question 9

The degree of adoption of a market orientation varies across firms but not across entire industries.

Question 10

Synergy exists when the firm's businesses,product-markets,resource deployments,and competencies complement and reinforce one another.

Question 11

Industries tend to become less competitive as they continue to grow.

Question 12

Ethics focuses on those actions that may result in actual or potential harm of some kind to an individual,group,or organization.

Question 13

To provide a useful sense of direction,a corporate mission statement should clearly define the organization's strategic scope.

Question 14

A strategy is a fundamental pattern of present and planned objectives,resource deployments,and interactions of an organization with markets,competitors,and other environmental factors.

Question 15

The primary strategic responsibility of any manager is to look outward continuously to keep the firm or business in step with changes in the environment.

Question 16

Market-oriented firms are characterized by a consistent focus only at the managerial level on customers' needs and competitive circumstances.

Question 17

The critical issue concerning the scope of a marketing strategy is identifying distinctive competencies that can give the business unit a competitive advantage.

Question 18

Regardless of a company's location,marketing managers play an equally extensive strategic role in every firm.

Question 19

An organization's scope and synergy are the primary focus of a corporate strategy.

Question 20

Early entrants into newly emerging industries are typically very market-oriented.

Question 21

Value-based models enable managers to classify and review their current and prospective businesses by viewing them as portfolios of investment opportunities.

Question 22

Firms use the _____ response to changes in business environment by increasing advertising budgets or offering frequent price promotions to maintain market share and hold down unit costs.

A)market-oriented
B)customer-oriented
C)sales-oriented
D)quality-oriented

Question 23

What is the focus of the research function in a market-oriented organization?

A)Applying new technologies to satisfy customer needs
B)Cutting costs in the production process
C)Improving the functional performance of existing products
D)Achieving greater production efficiencies

Question 24

Market growth rate is an inadequate descriptor of overall industry attractiveness.

Question 25

The _____ of an organization refers to the desired levels of accomplishment on one or more dimensions of performance over specified time periods for the overall organization.

A)synergy
B)scope
C)resource deployments
D)goals and objectives

Question 26

The _____ concept holds that planning and coordination of the company's activities should revolve around the primary goal of satisfying customer needs in order to attain and sustain a competitive advantage and to achieve company objectives over time.

A)production-orientation
B)profit-maximization
C)the marketing concept
D)vertical integration

Question 27

Which of the following is a difference between product-oriented and market-oriented organizations?

A)A product-oriented organization makes what it can sell;while a market-oriented organization sells what it can make.
B)Product-oriented organizations offer broad product lines;while market-oriented organizations offer narrow product lines.
C)The packaging function in a product-oriented organization focuses on providing greater convenience to the customer;while in a market-oriented organization,it focuses providing protection to the product.
D)The primary focus of the product offering of a product-oriented organization is on functional performance and cost;while in a market-oriented organization,the focus is on customers' needs and market opportunities.

Question 28

Strategic business units have responsibility for their own profitability.

Question 29

Which of the following is true of market-oriented firms?

A)Market-oriented firms have shown to be less profitable.
B)Companies always embrace a market-orientation.
C)Market-oriented firms rely heavily on inputs from their marketing and sales personnel in developing their strategies.
D)Market-oriented firms coordinate their activities around the primary goal of satisfying unmet customer needs.

Question 30

Corporate identity flows from the communications,impressions,and personality projected by an organization.

Question 31

A competitive strategy should give potential customers a good reason to purchase from the SBU instead of its competitors.

Question 32

A business's relative market share is a proxy for its competitive strength within its industry.

Question 33

_____ firms focus most of their attention and resources on functions such as product and process engineering and finance in order to acquire and manage the resources necessary to keep pace with growing demand.

A)Market-oriented
B)Production-oriented
C)Customer-oriented
D)Promotion-focused

Question 34

The breadth of an organization's strategic domain,including the number and types of industries,product lines,and market segments it competes in or plans to enter,refers to the organization's:

A)synergy.
B)scope.
C)resource deployments.
D)sustainable competitive advantage.

Question 35

Hi-Purr is a pet-grooming business operating over 20 branches in and around the San Francisco area.The firm's stated mission is to become the "preferred destination for pet-owners who desire the very best for their pets." The firm routinely holds pet shows and organizes many other interactive activities centered on studying customer needs and working to realize them.On this evidence,Hi-Purr is a _____ firm.

A)market-oriented
B)monopolistic
C)profit-oriented
D)transaction-oriented

Question 36

SBU-level managers,particularly those in marketing and sales,are exempt from the responsibility of collecting and analyzing information relevant to their SBUs.

Question 37

Zodiac Inc.acquired one of its major suppliers in order to diversify its operations.This implies that it was engaging in forward vertical integration.

Question 38

Value-based planning is can be effectively used as a substitute for strategic planning.

Question 39

In the BCG growth-share matrix,a star is the market leader in a low-growth industry.

Question 40

The term _____ refers to a fundamental pattern of present and planned objectives,resource deployments,and interactions of an organization with markets,competitors,and other environmental factors.

A)process
B)mission
C)goal
D)strategy

Question 41

Which of the following is an approach to corporate development strategy?

A)Vertical integration
B)Concentric diversification
C)Product elimination plans
D)Line extensions

Question 42

Which of the following is most likely an objective of an organization's corporate strategy?

A)Market share
B)Customer satisfaction
C)Cash flow
D)Return on investment

Question 43

Which of the following is a source of synergy for an organization through marketing strategy?

A)Shared functional competencies across product-markets within an industry
B)Shared marketing activities across product-market entries
C)Shared technologies across businesses within the firm
D)Shared favorable customer image

Question 44

Which of the following is a primary source of competitive advantage that is achieved through a marketing strategy?

A)Better organizational processes relative to competitors
B)Effective product positioning
C)Superior corporate financial resources
D)Business unit's competencies relative to competitors

Question 45

Allocation of resources at the marketing strategy-level occurs:

A)across functions shared by multiple businesses.
B)across functional units within the business unit.
C)among businesses in the corporate portfolio.
D)across components of the marketing plan for a product-specific entry.

Question 46

Which of the following is a source of synergy for an organization through business strategy?

A)Shared functional competencies across product-markets within an industry
B)Shared marketing activities across product-market entries
C)Shared technologies across businesses within the firm
D)Shared marketing competencies across product-market entries

Question 47

Which of the following is a measure of the performance criteria of 'contribution to customers?'

A)Product quality
B)Market share
C)Return on investment
D)Unit sales

Question 48

Which of the following is an approach to product-market development strategy?

A)Vertical integration
B)Concentric diversification
C)Acquisition policies
D)Line extensions

Question 49

_____ is concerned with the development of moral standards by which actions and situations can be judged.

A)Religion
B)Ethics
C)Logic
D)Emotion

Question 50

The term _____ of an organization refers to decisions made regarding how people and funds are obtained and allocated across businesses,product-markets,functional departments,and activities within each business or product-market.

A)goals and objectives
B)scope
C)resource deployments
D)synergy

Question 51

Which of the following is a source of synergy for an organization through corporate strategy?

A)Shared functional competencies across product-markets within an industry
B)Shared marketing activities across product-market entries
C)Shared technologies across businesses within the firm
D)Shared favorable customer image

Question 52

_____ exists when the firm's businesses,product-markets,resource deployments,and competencies complement and reinforce one another.

A)Scope
B)Synergy
C)Hierarchy
D)Mission

Question 53

Which of the following is most likely an objective of an organization's marketing strategy?

A)Profitability
B)Return on investment
C)Customer satisfaction
D)New market growth

Question 54

_____ include activities such as increasing market share and increasing product usage.

A)Market penetration strategies
B)Market development strategies
C)Product development strategies
D)Diversification strategies

Question 55

Which of the following is an approach to business development strategy?

A)Vertical integration
B)Concentric diversification
C)Acquisition policies
D)Line extensions

Question 56

_____ involve expanding markets for existing products.

A)Market development strategies
B)Market penetration strategies
C)Product development strategies
D)Diversification strategies

Question 57

Which of the following is a component of a corporate objective?

A)Product positioning
B)Product-line depth
C)Product characteristics
D)Time frame

Question 58

Which of the following is most likely an objective of an organization's business strategy?

A)Contributions to other stakeholders
B)Earnings per share
C)Customer satisfaction
D)New market growth

Question 59

Which of the following indexes measures the performance criteria of 'profitability?'

A)Customer lifetime value
B)Return on investment
C)Market share
D)Fixed assets as percentage of sales

Question 60

Which of the following is the primary focus of a corporate strategy in large organizations?

A)Effective allocation and coordination of marketing resources and activities
B)Competition of a business unit within its industry
C)Decisions about the organization's scope across its divisions or businesses
D)Specification of the target markets for a particular product or product line

Question 61

_____ occurs when a manufacturer acquires a wholesale distributor or retail outlet.

A)Horizontal integration
B)Backward integration
C)Forward vertical integration
D)Unrelated diversification

Question 62

What is the difference between a production-oriented and a sales-oriented firm? What tell-tale signs would you expect to find distinguishing the two types of firms?

Question 63

Distinguish between vertical integration,concentric diversification,and conglomerate diversification.

Question 64

According to the BCG growth-share matrix,businesses in high-growth industries with low market shares are termed:

A)stars.
B)cash cows.
C)question marks.
D)dogs.

Question 65

Divestiture and harvesting are strategies that most suitable for:

A)dogs.
B)question marks.
C)stars.
D)cash cows.

Question 66

List a few reasons why firms are not always in close touch with their market environments.

Question 67

In the BCG growth-share matrix,a business's _____ is a proxy for an SBU's competitive strength within its industry.

A)relative market share
B)core competency
C)market value
D)absolute market share

Question 68

Strategic business units are:

A)two or more independent firms that work together toward common objectives.
B)components of a firm engaged in multiple industries or businesses.
C)firms that are both collaborators and competitors in the same market.
D)members of the value chain for a single product.

Question 69

_____ occurs when a firm moves upstream by acquiring a supplier.

A)Unrelated diversification
B)Forward vertical integration
C)Backward integration
D)Concentric diversification

Question 70

A watch manufacturer acquires a tannery that would produce premium leather straps for its brand of wristwatches.The firm acquires a smaller company that specializes in waterproofing wristwatches.Which of the following strategies is the watch manufacturer adopting in this case?

A)Conglomerate diversification
B)Unrelated diversification
C)Concentric diversification
D)Market penetration

Question 71

The amount of return a strategy or operating program generates in excess of the cost of capital is commonly referred to as its:

A)opportunity cost.
B)gross output.
C)economic value added.
D)enterprise value.

Question 72

Hungry Hogs,a fast-food joint based in America,is opening its first overseas outlet in England.Hungry Hogs is engaging in _____.

A)diversification
B)product development
C)market penetration
D)market development

Question 73

Which of the following growth strategies is typically the riskiest in terms of financial outcomes?

A)Conglomerate diversification
B)Forward vertical integration
C)Backward integration
D)Related diversification

Question 74

Which of the following is an example of backward integration?

A)When a company that produces lumber moves into manufacture of wood furniture
B)When a company that produces wood furniture acquires its supplier of lumber
C)When a firm that produces wood furniture moves into production of metal furniture products
D)When a firm producing a high-technology computer starts to produce sophisticated software

Question 75

Describe the five components within a well-developed strategy.

Question 76

In terms of the BCG growth-share matrix,businesses with a high relative share of low-growth markets are called:

A)dogs
B)stars
C)question marks
D)cash cows.

Question 77

In terms of the BCG growth-share matrix,the market leader in a high-growth industry is termed a:

A)cash cow.
B)star.
C)dog.
D)question mark.

Question 78

Which of the following is true of related diversification?

A)The motivations for related diversification are primarily financial rather than operational.
B)Related diversification contributes to internal synergy through the sharing of production facilities and marketing and distribution skills.
C)Related diversification occurs when a disproportionate number of a firm's current businesses face decline because of decreasing demand.
D)Related diversification is typically the riskiest growth strategy in terms of financial outcomes.

Question 79

Mention the components of an objective.

Question 80

Which of the following factors are plotted along the vertical axis of the BCG growth-share matrix?

A)the industry's growth rate
B)the business's relative market share
C)the industry's market cap
D)the business's absolute market share