Deck 3: Strategic Planning for Competitive Advantage

Question 1

What sort of strategy did Thermo Electron engage in?

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

Answer 1

A

Question 2

What would a children's book publishing company probably experience by defining its business as "printing books" instead of "empowering imaginations"?

A)market synergy
B)product entropy
C)marketing myopia
D)non-specific strategic planning

Answer 2

C
Publishing books focuses on one product,rather than a broad range of opportunities as found in "entertainment."

Question 3

What should an organization's mission statement focus on?

A)the products it wishes to sell
B)the market it wishes to serve
C)its social responsibilities
D)the target market

Answer 3

B
The choice of the market to serve determines the product and technology decisions.

Question 4

Thermo Electron Corporation,the biggest maker of measurement instruments for medical laboratories,agreed to buy the radiation-monitoring products unit of Compagnie de Saint-Gobain to gain European customers.Saint-Gobain (of France)is Europe's number-one distributor of building materials,and its radiation monitoring unit did not support the company's mission statement.
What mission deals with satisfying customers?

A)Thermo Electron does not have a mission statement.
B)Saint-Gobain's mission dealt with the radiation monitoring unit.
C)Saint-Gobain's mission dealt with providing building materials to its customers,not radiation-monitoring equipment.
D)Thermo Electron's mission statement was incomplete.

Question 5

Marketing plans should be written to do which of the following?

A)compare forecast and expected performance
B)provide clearly stated activities
C)create different goals for employees to work toward
D)control the elements of the external marketing environment

Question 6

In its shareholders' report,PepsiCo states "Our business is to increase the value of our shareholder's investment.We do this through sales growth,cost controls and wise investment of resources.We believe our commercial success depends upon offering quality and value to our consumers and customers;providing products that are safe,wholesome,economically efficient and environmentally sound;and providing a fair return to our investors while adhering to the highest standards of integrity." This statement can be classified as which of the following?

A)a marketing mix strategy
B)a quantifiable goal
C)a mission statement
D)a statement of economic potential

Question 7

Compaq Computer's decision to charge customers for phone technical support to defray the high cost of phone support and encourage customers to read documentation was a failure because consumers like the human touch.Customer rebellion forced Compaq to rethink this policy.As a result,Compaq decided to focus its resources on reaching the inexpensive home computer market segment through enhanced customer service.What did Compaq engage in?

A)strategic planning
B)tactical resource realignment
C)alternative selection
D)portfolio evaluation

Question 8

Which of the following answers the question,"What business are we in,and where are we going?"

A)a mission statement
B)a strategic plan
C)a situation analysis
D)a market strategy

Question 9

What sort of strategy did Saint Gobain engage in?

A)building
B)divesting
C)diversification
D)integration

Question 10

A popular technique for managing a large organization with different technologies and markets is to divide it into which of the following?

A)strategic business units
B)different technologies
C)strategic target markets
D)tactical segments

Question 11

Which of the following is one of the elements of the marketing plan?

A)a global mission statement
B)a situation prediction
C)a target market strategy
D)a marketing history

Question 12

What does the acronym SBU refer to?

A)stock in business unit
B)strategic business unit
C)stock standard business unit
D)strategic barter unit

Question 13

Copan Italia is a distributor of laboratory products and manufacturer of laboratory commodities.Which of the following says that the company's business is to continually work to improve the quality of the collection and preservation of the microbiological sample in the "pre-analytical phase," as the demand for better protection of the specimen is growing day by day?

A)Copan's market synergy
B)Copan's product philosophy
C)Copan's marketing mix strategy
D)Copan's mission statement

Question 14

What did Saint-Gobain sell?

A)one of its (SBUs)
B)one of its strategic alliances
C)one of its action programs
D)one of its transactional units

Question 15

Railroads often offer their customers a trucking service for local delivery or trailers for piggybacking loads to their final destination.Which of the following statements justifies the addition of these services to their strategic plans?

A)Their mission statements reflect their belief that they are transportation companies,not just railroads.
B)Local delivery has high market attractiveness.
C)Diversification is needed to survive.
D)New business units are needed to continue growth.

Question 16

Marketing plans can best be described by which of the following statements?

A)Marketing plans can exist as oral traditions.
B)Marketing plans should be viewed as a series of sequential steps.
C)Marketing plans have basically the same content.
D)Marketing plans are created so organizations can meet their marketing objectives.

Question 17

What occurs when a business is defined in terms of goods and services rather than by the benefits customers seek from it?

A)market synergy
B)a market barrier entry
C)a reactive focus
D)marketing myopia

Question 18

What do strategic plans require?

A)long-term resource commitments
B)a change in organizational structure
C)the addition of new personnel
D)new product development

Question 19

What is the process of anticipating events and determining strategies to achieve organizational objectives?

A)planning
B)evaluation
C)forecasting
D)implementation

Question 20

What is the term for the managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities?

A)strategic planning
B)market scanning
C)functional planning
D)environmental scanning

Question 21

PPR,the French retail and luxury goods group,announced plans to sell its Printemps department store chain.PPR will continue to hold onto Gucci,Yves St.Laurent,Balenciaga;Conforma,its furniture store chain;FAAC,its books and music chain,and La Redoute,a catalogue retailer.(All of PPR's divisions are operated as independent businesses. )What are these businesses called?

A)PPR's strategic business units
B)PPR's strategic alliances
C)PPR's transactional units
D)PPR's synergistic divisions

Question 22

Tyler works for Star Creek,a new start-up Australian wine producer.He has been asked to submit recommendations for marketing objectives for the upcoming strategic planning period.Which of the following marketing objectives would be most appropriate for the company?

A)Star Creek wants 30 percent of the market for Australian wines within 24 months of the launching of its new advertising campaign.This effort will be supported by a $20 million commitment from the company's owner and president.
B)Star Creek seeks to sell more bottles of wine than its competitors during the next strategic planning period.
C)Star Creek needs to develop some new wines to help it gain market share.
D)Star Creek wants to be number one in the marketplace for all Australian wines within one year.

Question 23

Hustler Turf Equipment is a company that makes landscaping equipment.The company is looking at customer trends,its competitors,and the economy to see if there are any threats or opportunities on the horizon.It has also examined its production policies and sales histories to determine its strengths and weaknesses.What is Hustler Turf Equipment conducting?

A)an environmental test
B)a market audit
C)a competitive advantage search
D)a situation analysis

Question 24

Giorgio Armani,the Italian fashion group,announced plans to launch a $1 billion international luxury hotel chain containing ten hotels and four resorts before the end of 2015.This will allow the company to both take advantage of an international trend toward luxury lifestyle consumerism and achieve its growth objectives.
What term best describes these statements?

A)tactical objectifying
B)contingency plan
C)strategic planning
D)marketing implementation

Question 25

For marketing objectives to be realized,they must meet which of the following criteria?

A)be consistent with organization objectives
B)be describable in words
C)be slightly unattainable to challenge the employees
D)be set within a one-year time frame

Question 26

General Electric has a security division that builds equipment for screening passenger luggage checked in at airports.This division is composed of InVision Technologies,which manufactures CT scanners,and Ion Track,which measures luggage for trace elements of drugs and explosives.What is GE's security division an example of?

A)an organizational level
B)a strategic business unit
C)a secure business unit
D)a business sales unit

Question 27

Which of the following statements best describes an SBU?

A)It competes with the same companies as the other SBUs in the parent organization.
B)It shares the same mission with all the other SBUs in the parent organization.
C)It controls its business independent of other SBUs in the organization.
D)It usually benefits from the combined corporate raw materials purchases.

Question 28

Since this was Armani's first venture into the hotel industry,what would it be an example of?

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

Question 29

In terms of Armani's situation analysis,what would the trend toward luxury lifestyle consumerism be an example of?

A)an opportunity because it is part of Armani's external environment
B)a strength because it is part of Armani's internal environment
C)a weakness because Armani cannot control the growth of the trend
D)an advantage because it gives Armani growth opportunities

Question 30

Which of the following is defined as a statement of what is to be accomplished through marketing activities?

A)mission statement
B)business plan
C)marketing objective
D)goal-driven directive

Question 31

Armani identified a large and growing segment of the market that wanted a luxury lifestyle by conducting which of the following?

A)market diversification analysis
B)market audit
C)social audit
D)market opportunity analysis

Question 32

Baths from the Past is a small company that sells reproduction sinks,bathtubs,toilets,and faucets.Company management is currently conducting a formal study of its current strengths and weaknesses by looking at the company's profit and sales histories and searching for opportunities and threats by studying consumer trends.What is Baths from the Past conducting?

A)a marketing audit
B)a SWOT analysis
C)an environmental scan
D)a trend analysis

Question 33

What is the term for a formal study conducted by an organization to ascertain its current status and capabilities and its future expectations?

A)situation analysis
B)marketing audit
C)trend analysis
D)competitive advantage audit

Question 34

After management agrees on a mission statement,it must set objectives.Which of the following is NOT necessarily a characteristic of a good objective?

A)profitable
B)realistic
C)measurable
D)time-specific

Question 35

One of the divisions of Procter & Gamble (P&G)manufactures and markets health and beauty aids.It handles products such Olay lotions and Old Spice fragrances.This part of the business has its own accounting,engineering,manufacturing,and marketing departments,separate from the rest of the organization.This division also has its own mission statement,target markets,and planning committees.What would this segment of P&G be termed?

A)a product market niche
B)a diversified division
C)a heterogeneous element
D)a strategic business unit

Question 36

Coca-Cola vending machines are found all over the world.The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ring tones after they have bought a drink.Critics of these new vending machines are concerned that entertaining technology is being used to market sugary products.In terms of a SWOT analysis,what would this concern be an example of?

A)a weakness
B)a strength
C)an opportunity
D)a threat

Question 37

When an organization creates a mission statement that is too narrow,what is the result?

A)marketing synergy
B)marketing myopia
C)directional marketing
D)an internal threat

Question 38

What does the SWOT acronym refer to?

A)a firm's analysis of its sales,width of product mix,observations,and technology
B)a firm's analysis of its situations,wealth,organizational strengths,and target markets
C)a firm's analysis of its strengths,weaknesses,opportunities,and threats
D)a firm's analysis of its service levels,willingness to spend,organizational culture,and total revenues

Question 39

Coca-Cola drink vending machines are found all over the world.The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ring tones after they have bought a drink.The reason for the introduction of this new-style vending machine is to "allow the company to interact more directly with its customers." According to a SWOT analysis,what are the technology used by these machines and the need to interact with customers both examples of?

A)strengths because they are part of Coke's external opportunities
B)advantages because they are part of Coke's marketing environment
C)weaknesses because Coke cannot control technology or consumer behaviour
D)opportunities because they are part of Coke's external environment

Question 40

A textile manufacturer concerned about its survival in the world marketplace has set as its goal,"To increase training and educational opportunities for its employees during the next twenty-four months." Why is this corporate objective ineffective?

A)The objective is time restrictive.
B)The objective is not quantifiable.
C)The objective restricts the corporate priorities.
D)The objective is not qualitative in nature.

Question 41

PPR,the French retail and luxury goods group,announced plans to sell its Printemps department store chain.Through re-engineering,the company hopes to increase its profit margins,improve inventory turnover,and make itself more attractive to investors.What sort of advantage will PPR create by restructuring and selling off the department chain that does not complement its luxury product lines?

A)a brand name advantage
B)a niche competitive advantage
C)a cost competitive advantage
D)a marketing competitive advantage

Question 42

Skoda is a carmaker in the Czech Republic.The auto manufacturer is launching a marketing drive designed to ultimately sell one million Skoda vehicles a year.It has identified the main growth markets for automobiles as China,Russia,and India,and has plans to build production plants in each of those countries.
Refer to Skoda.What has Skoda used to identify the main growth markets for automobiles as China,Russia,and India and to develop plans to build production plants in each of those countries?

A)through market sampling
B)through an internal audit
C)through opportunity analysis
D)through environmental scanning
NAR: Skoda

Question 43

Skoda is a carmaker in the Czech Republic.The auto manufacturer is launching a marketing drive designed to ultimately sell one million Skoda vehicles a year.It has identified the main growth markets for automobiles as China,Russia,and India,and has plans to build production plants in each of those countries.
Refer to Skoda.Skoda will be well into the implementation stage when the plant in Shanghai starts producing cars in 2012.Which term best describes how Skoda intends to reach its goals?

A)tactical objectifying
B)contingency plan
C)strategic planning
D)market integration

Question 44

How did Revlon identify the fact that its brand names (Revlon,Almay,and Flex)had developed a poor image with both its customers and its retailers?

A)through market analysis
B)through environmental control
C)through environmental scanning
D)through social audit

Question 45

Which of the following show costs declining at a predictable rate as experience with a product increases?

A)liquidity growth curves
B)supply/demand analyses
C)break even analyses
D)experience curves

Question 46

In 1990,as a customer entered the Hornady store,which sells no chalk pool cues,a salesperson approached her and said,"Hornady pool cues are the cues you ought to buy.They are the most uniform in size and shape,and they are made of pure wood.Our cue is used by the Billiards World Champion." What was the salesperson describing?

A)Hornady's competitive advantage
B)Hornady's strategic strength
C)Hornady's tactical opportunity
D)Hornady's opportunity mission

Question 47

There are many different kinds of cheese.According to its ads,only Jarlsberg Lite has 50 percent less fat,60 percent less cholesterol,and 100 percent of the taste of other kinds of cheese.What does this advertising statement describe?

A)Jarlsberg Lite's strategic edge
B)Jarlsberg Lite's competitive advantage
C)Jarlsberg Lite's tactical strength
D)Jarlsberg Lite's marketing mix

Question 48

Price Chopper is a no-frills grocery chain.It sells grocery staples right out of crates and boxes with emphasis on low-priced,private-label brands.The chain targets bargain hunters who are willing to rent a cart and bag their own groceries.
Refer to Price Chopper.What does Price Chopper use to create its competitive advantage?

A)demand and supply curves
B)efficient labour
C)production innovation
D)no-frills goods and services

Question 49

Which of the following is NOT a source of a cost competitive advantage?

A)production innovation
B)experience curves
C)break-even analyses
D)efficient labour

Question 50

Skoda is a carmaker in the Czech Republic.The auto manufacturer is launching a marketing drive designed to ultimately sell one million Skoda vehicles a year.It has identified the main growth markets for automobiles as China,Russia,and India,and has plans to build production plants in each of those countries.
Refer to Skoda.Which strategy would be used to attract new customers?

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

Question 51

BC Tea is marketed by Vultaggio & Sons.The wide-mouthed,long-necked bottles are now considered to be trendsetters in the new-age beverage industry,and some customers buy the tea just for the bottle.What is the success of BC Tea based on?

A)supply-demand curves
B)re-engineering curves
C)a product differentiation competitive advantage
D)a cost competitive advantage

Question 52

All the following are environmental forces an Ontario fruit grower with both orchards and a packaging/shipping facility might consider when making marketing decisions.What factor is LEAST likely to impact its marketing decisions?

A)working mothers who rely on their teenagers to do the family grocery shopping
B)the increase in foreign shipments to Canada of a similar product
C)changes in provincial laws concerning pollution control,waste disposal,and use of pesticides
D)the number of employees of a British Columbia fruit grower

Question 53

Yuengling,founded in 1827,is the oldest brewery in the United States.It has survived by severely limiting sales of the beer and creating a mystique about the brand.In areas where the beer is sold,its brand name is used to identify all beer,the same as Kleenex is used by many to represent all types of tissues.Its competitors all wanted to expand their markets.Yuengling's strategy was "To do nothing." For over 180 years,what has this strategy given the brewery?

A)a brand name strategy
B)a niche competitive advantage
C)a price differentiation advantage
D)a sustainable competitive strategy

Question 54

Fujisawa is Japan's seventh-largest pharmaceutical company.It sells drugs taken by organ transplant patients to increase the probability the new organ will operate efficiently and not be rejected.Currently,the only products Fujisawa makes are these organ transplant drugs,which it sells worldwide.Its patents protect it from competitors.What sort of advantage does Fujisawa have?

A)brand name strategy
B)niche competitive
C)cost competitive
D)marketing strategy

Question 55

A Canadian soft drink company conducting a SWOT analysis of market potential in India should be aware that one of the following are potential opportunities in India?

A)religious differences
B)minimal governmental regulation for foreign businesses
C)a high gross domestic product
D)a high demand for American-made products

Question 56

Flexcar is a car rental service found in some U.S.metropolitan areas.It targets people who take mass transit or carpool to work but occasionally need to run errands,visit the doctor,or check on a sick child.Flexcar is the only company currently providing cars that can be rented by the hour.Which type of advantage has Flexcar created?

A)sustainable competitive
B)experience curve
C)service differentiation competitive
D)niche competitive

Question 57

What could Zipcar,a company that rents cars by the hour,do through the use of environmental scanning?

A)learn why it needed to use a team management structure
B)determine why the market for short-term car rentals is growing
C)benefit from experience curves
D)periodically divest itself of low-margin vehicles

Question 58

Which of the following is defined as the collection and interpretation of information about forces,events,and relationships that may affect the organization?

A)market sampling
B)an internal audit
C)opportunity analysis
D)environmental scanning

Question 59

Price Chopper is a no-frills grocery chain.It sells grocery staples right out of crates and boxes with emphasis on low-priced,private-label brands.The chain targets bargain hunters who are willing to rent a cart and bag their own groceries.
Refer to Price Chopper.Compared to the other grocery stores,Price Chopper has which of the following?

A)market-homogeneous strategy
B)cost competitive advantage
C)product aggregation strategy
D)revenue-based competitive advantage

Question 60

Beverly Morgan started her home-based business,Kitz 4-U Inc.in Hamilton,Ontario,by selling first aid kits to fundraising organizations.She has also developed three other affordable "Everything You Need in a Pinch" kits,the Bowling Kit,the Golf Kit,and the Travel Kit.She owns the only company in Canada that creates kits for fundraisers.What sort of advantage does Kitz 4-U Inc.have?

A)brand name advantage
B)niche competitive advantage
C)cost competitive advantage
D)market advantage

Question 61

The television network HBO produced the drama Boardwalk Empire about the New Jersey mob during prohibition.It is publishing The Boardwalk Empire Cookbook: As Compiled by Ron Goldwood,a collection of southern Italian-style recipes.The creation of the cookbook to appeal to fans of the show is an example of which type of strategy?

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

Question 62

Knorr,a manufacturer of soup,dip,and gravy mixes,printed on-package recipes,gave out coupons to existing customers,and created a recipe booklet that could be ordered with three UPC codes from three different Knorr products.All of these activities would be representative of which type of strategy?

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

Question 63

What is a strategy that attracts new customers to existing products?

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

Question 64

American Express offers a Cobaltcard,a pre-loaded credit card,to 13- to 22-year-olds looking to make online purchases.While American Express had previously supplied credit cards only to many adults,this was a market that was not being served.Which type of strategy is the Cobaltcard program an example of?

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

Question 65

Everyone knows the brand name - Godiva Chocolate.- Godiva is what many consumers think of when they think of - chocolate.Which type of advantage is this widely recognized brand name a source of?

A)a product differentiation competitive advantage
B)a cost advantage
C)market augmentation advantage
D)a niche competitive advantage

Question 66

The Hallmark Company was inspired by the popularity of Jan Karon's best-selling novels about Mitford,a fictional town in the mountains of Alberta,to develop a new line of products for Hallmark Stores.Hallmark created hundreds of Mitford-inspired products that authentically bring "the little town with the big heart" into tangible reality.The products include greeting cards,party ware and gift wrap,mugs,and puzzles for Hallmark's existing customers.Which type of strategy did Hallmark use?

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

Question 67

Procter & Gamble has a website,www.pg.ca,which is designed to help customers with product questions.While at the website,customers can request free samples of Olay Radiance,Pert Plus,and Folgers Latte,all new P&G products.The site also offers "More Than a Card," a feature that allows customers to buy an assortment hamper of new P&G products for less than $25.This is an example of how a company can implement which of the following strategies?

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

Question 68

What is the strategy of increasing sales by introducing new products into new markets?

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

Question 69

What do patents on allergy relief medications such as Allegra and Claritin give the pharmaceutical companies that own the patents until the patent expires?

A)a targeted market position
B)a sustainable competitive advantage
C)a strategic focus
D)a situational strength

Question 70

The company that manufactures Molson beer simultaneously launched Arctic brand in Ontario and Tornade brand in Quebec with the intention of gaining a share of the rapidly expanding alcoholic lemonade segment of the beverage industry.The separate launch strategies for the products are due to different market conditions in the two Canadian provinces.Which strategies did Molson use to reach existing markets with its new product?

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

Question 71

Research has shown that young people below the age of 15 do not use the familiar red ketchup as much as older individuals.To capture this market,Heinz markets blue-,purple- and green-coloured ketchup.The ketchups have an exotic look,which Heinz hopes will appeal to this market.It still tastes like the old red variety.Since this is not really a new product,just an attempt to reach a new target market,which type of strategy does it exemplify?

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

Question 72

Clay Market began as a retailer of terra cotta pots and garden figures imported from Turkey and Mexico.It has since added Turkish rugs and fabrics,leather-trimmed purses,and a line of women's clothes for its customers.This activity is indicative of which of the following strategies?

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

Question 73

For most consumers,the brand name Benetton brings to mind a retail clothing store that carries many products that bear the Benetton brand.But the Benetton Group also owns a chain of restaurants,several toll roads in Italy,and a telecommunications company.The list of the company's holdings indicates that the company's managers believe in growth through which of the following?

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

Question 74

Which of the following is a strategy of increasing market share for present products in existing markets?

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

Question 75

Which of the following is a type of strategic alternative that matches products and markets?

A)vertical integration
B)product penetration
C)market penetration
D)horizontal integration

Question 76

Bentley automobiles are extremely expensive and are designed to appeal to consumers who equate value and quality with price.Which type of competitive advantage has the manufacturer of Bentley automobiles created?

A)value-enhanced
B)mass-marketing
C)social class-oriented
D)niche

Question 77

Due to recent draughts,wheat growers in Saskatchewan have lost millions of dollars.As a result,some growers have decided to bulldoze their wheat fields and put in freshwater lakes for raising shrimp,a product that is popular and is more weather-resistant.Which type of strategy are former wheat growers who are now raising shrimp pursuing?

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

Question 78

Technol Medical Products makes specialty facemasks to shield health care workers from infection.Because it focuses on this narrow market,it is able to outsell its primary competitors-3M and Johnson & Johnson.Which type of advantage does Technol Medical Products have?

A)sustainable competitive advantage
B)service differentiation competitive advantage
C)niche competitive advantage
D)cost competitive advantage

Question 79

The determination of the Australian wine industry to exercise control over the winemaking process was perceived as revolutionary.The Australian wine industry's continuing relentless quest for quality improvement established Australian wine as a market leader.What does this two-decade unique quest superior quality give Australian wine?

A)a targeted market position
B)a sustainable competitive advantage
C)a strategic focus
D)an opportunistic privilege

Question 80

What is a strategy that creates new products for present markets?

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