Question 1

After reviewing the case in the text, the carefully crafted mission statement for Airbnb was presented as .
A) we are not a hotel.
B) belong anywhere.
C) travel adventure defined.
D) cheap rooms around the world making travel affordable.
E) connecting hosts with guests.

Accepted Answer

Airbnb's mission statement is "belong anywhere," which emphasizes creating a sense of belonging and community for travelers, rather than just providing accommodation.

Question 2

When Howard Schultz returned to assume leaderships at Starbucks in 2007, the company's average transactions per store fell and same-store growth slowed. This was happening despite continued strong growth in the industry. According to the BCG model, Starbucks was a _ .
A) cash cow
B) hero
C) question mark
D) star
E) dog

Accepted Answer

C

Question 3

In the BCG matrix, _ refer to low-growth, high-share businesses or products.
A) question marks
B) stars
C) heroes
D) dogs
E) cash cows

Accepted Answer

Cash cows refer to low-growth, high-share businesses or products in the BCG matrix. They generate more cash than they consume.

Question 4

Business portfolio analysis is defined as the process in which management _ _.
A) studies the products and strategies of competitors to improve the company's own products
B) assesses the attractiveness of an SBU's market and the strength of its position in the market
C) segments the company's markets to reach target consumers effectively
D) analyzes consumer feedback in order to better position the company's brand image
E) conducts marketing research to evaluate the company's marketing strategy

Accepted Answer

Business portfolio analysis involves evaluating the attractiveness of a strategic business unit's (SBU) market and the strength of its position within that market to make informed strategic decisions.

Question 5

According to the BCG matrix, products or businesses with a low share of market in a high-growth industry are considered _.
A) question marks
B) value chains
C) cash cows
D) dogs
E) stars

Accepted Answer

The answer of According to the BCG matrix, products or...

Question 6

A _ is purposeful, specifying what an organization wants to accomplish in the larger environment.
A) mission statement
B) marketing strategy
C) market portfolio
D) marketing objective
E) strategic plan

Accepted Answer

A mission statement is a purposeful statement that specifies what an organization wants to accomplish in the larger environment.

Question 7

An organization's mission statement should emphasize its intentions toward customers and the customer experience the organization seeks to create.

Accepted Answer

A mission statement is a declaration of an organization's purpose and its overall goal. It should convey the organization's desired impact on its customers and the experience it aims to create for them. Therefore, it should emphasize its intentions toward customers.

Question 8

The two dimensions the BCG approach uses to evaluate and manage SBUs are _ .
A) market growth rate and market penetration
B) market growth rate and relative market share
C) market growth rate and market development
D) relative market share and market penetration
E) relative market share and product development

Accepted Answer

The BCG matrix evaluates SBUs based on market growth rate and relative market share to determine their position as stars, cash cows, question marks, or dogs.

Question 9

Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The CEO stresses that the new mission statement should be market-oriented rather than product-oriented. Which of the following mission statements will best suit the company?
A) to sell hypoallergenic cosmetics products made only from the finest organic ingredients
B) to give customers the complexion they dream about by providing products suited to their needs
C) to create the best possible products and sell them at the best possible prices
D) to become a market leader in every cosmetics product category
E) to increase our market share in the cosmetics segment and increase profit margins

Accepted Answer

A market-oriented mission statement focuses on fulfilling customer needs and desires, which is reflected in option B by emphasizing providing products suited to customer needs.

Question 10

According to the BCG matrix, products or businesses with a high market share in a high-growth market are classified as _ .
A) question marks
B) stars
C) dogs
D) heroes
E) cash cows

Accepted Answer

In the BCG matrix, products or businesses with a high market share in a high-growth market are classified as "stars."

Question 11

Which of the following is true of strategic planning in a firm?
A) It deals with adapting the firm to take advantage of changing marketing opportunities.
B) It focuses on the firm's internal environment rather than the external environment.
C) It involves preparing short-term investment objectives at the product level.
D) It occurs at the business-unit, product, and market levels rather than at the corporate level.
E) It deals with maintaining the company's current business ventures.

Accepted Answer

Strategic planning involves adapting the firm to take advantage of changing marketing opportunities, focusing on long-term goals and the external environment.

Question 12

Due to the limitations of the BCG and other formal portfolio planning models, many companies are placing responsibility for strategic planning in the hands of cross-functional teams of divisional managers who are close to their markets. In such organizations, strategic planning is .
A) purposeful
B) centralized
C) informal
D) decentralized
E) limited

Accepted Answer

Strategic planning is decentralized because it involves cross-functional teams of divisional managers who are closer to their markets, allowing for more localized and informed decision-making.

Question 13

As identified in the text, what is the Starbucks mission statement?
A) Growing profits by opening new and different stores in more locations throughout the world.
B) To inspire and nurture the human spirit - one person, one cup and one neighbourhood at a time.
C) Starbucks does not believe in a mission statement as it restricts growth and limits opportunities
D) Increase sales at every store by offering new products and lower prices to aggressively gain market share
E) Offering the most delicious, ethically sourced coffee and serve it in with tasty food.

Accepted Answer

Starbucks' mission statement is "To inspire and nurture the human spirit - one person, one cup and one neighbourhood at a time."

Question 14

"At CL Online, we create customer connectivity, anytime, anywhere" is a product-oriented mission statement.

Accepted Answer

The mission statement is customer-oriented as it focuses on creating connectivity for customers, but it is not specific to any particular product.

Question 15

Strategic planning defined: The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marking opportunities.

Accepted Answer

Strategic planning involves aligning an organization's goals and capabilities with market opportunities to ensure long-term success and adaptability.

Question 16

In the BCG growth-share matrix, question marks refer to products or businesses with a .
A) low market share in a market with high growth prospects
B) low market share in a niche market
C) low market share in a market that is set to shrink significantly
D) high market share in a market with a high growth rate
E) greater market share than all their competitors combined in a saturated market

Accepted Answer

Question marks in the BCG matrix are products or businesses with a low market share in a market with high growth prospects, indicating potential but requiring significant investment to increase market share.

Question 17

Vertigo is an electronics company. According to the BCG matrix, which of the following products of Vertigo would most likely classify as a question mark?
A) Electra-a home entertainment system that has a strong market share in a market that is likely to expand in the future
B) SoLo-a CD player that has a very low market share in a market that is shrinking rapidly
C) Blue-a cell phone that is designed for music lovers and has a very low market share in a market that is growing steadily
D) Kindle Fire-a children's iPad that has a high market share in a market that is not expected to grow significantly
E) SpinDrive-a car audio system that has a high market share in a market that has been growing constantly

Accepted Answer

A question mark in the BCG matrix is a product with a low market share in a high-growth market. "Blue," the cell phone designed for music lovers, fits this description as it has a very low market share in a market that is growing steadily.

Question 18

"At Dodson, we sell shoes" is a market-oriented business definition.

Accepted Answer

A market-oriented business definition focuses on meeting the needs and wants of its customers. The statement "At Dodson, we sell shoes" is product-oriented because it focuses on the product being sold rather than on the needs or wants of the customers.

Question 19

Which of the following statements is true in the context of the BCG growth-share matrix?
A) Cash cows typically turn into stars.
B) Stars often need heavy investment to finance their rapid growth in a market.
C) The income from one SBU cannot be used to support other business units.
D) Dogs promise to be large sources of cash.
E) The positions of SBUs in the growth-share matrix rarely change over time.

Accepted Answer

Stars often need heavy investment to finance their rapid growth in a market, as they are in high-growth industries and require resources to maintain or increase their market share.

Question 20

Omni Healthcare's analgesic drug Cetaprin has a 40 percent share in the analgesics market in the country of Terrania. Its closest competitor, Febex, has a 25 percent share in the market, while four other analgesic brands split the remainder. Which statement indicates that Cetaprin is a cash cow according to the BCG matrix?
A) The Terrania market for healthcare products is expanding rapidly.
B) Omni Healthcare often takes money from other strategic business units to support Cetaprin.
C) Febex is rapidly gaining market share over Cetaprin due to aggressive marketing efforts.
D) The demand for analgesic drugs in the Terrania market is expected to maintain a low-growth, high-share status
E) A customer survey shows that Cetaprin users do not prefer it to other analgesics in the market.

Accepted Answer

Cetaprin is considered a cash cow in the BCG matrix if it has a high market share in a low-growth market, which is indicated by the statement that the demand for analgesic drugs is expected to maintain a low-growth, high-share status.

Quiz 2: Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

After reviewing the case in the text, the carefully crafted mission statement for Airbnb was presented as .

When Howard Schultz returned to assume leaderships at Starbucks in 2007, the company's average transactions per store fell and same-store growth slowed. This was happening despite continued strong growth in the industry. According to the BCG model, Starbucks was a _ .

In the BCG matrix, _ refer to low-growth, high-share businesses or products.

Business portfolio analysis is defined as the process in which management _ _.

According to the BCG matrix, products or businesses with a low share of market in a high-growth industry are considered _.

A _ is purposeful, specifying what an organization wants to accomplish in the larger environment.

An organization's mission statement should emphasize its intentions toward customers and the customer experience the organization seeks to create.

The two dimensions the BCG approach uses to evaluate and manage SBUs are _ .

Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The CEO stresses that the new mission statement should be market-oriented rather than product-oriented. Which of the following mission statements will best suit the company?

According to the BCG matrix, products or businesses with a high market share in a high-growth market are classified as _ .

Which of the following is true of strategic planning in a firm?

Due to the limitations of the BCG and other formal portfolio planning models, many companies are placing responsibility for strategic planning in the hands of cross-functional teams of divisional managers who are close to their markets. In such organizations, strategic planning is .

As identified in the text, what is the Starbucks mission statement?

"At CL Online, we create customer connectivity, anytime, anywhere" is a product-oriented mission statement.

Strategic planning defined: The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marking opportunities.

In the BCG growth-share matrix, question marks refer to products or businesses with a .

Vertigo is an electronics company. According to the BCG matrix, which of the following products of Vertigo would most likely classify as a question mark?

"At Dodson, we sell shoes" is a market-oriented business definition.

Which of the following statements is true in the context of the BCG growth-share matrix?