Question 1

The activities a firm does better than its competitors are known as ________.

Accepted Answer

Distinctive competencies refer to the unique strengths and abilities that a firm possesses, which allow it to perform activities better than its competitors.

Question 2

Go Fish Sushi restaurants are primarily located in malls. The restaurants had rapid growth in their first seven years. The owner realizes that adding more restaurants would make it impossible to monitor operations. Therefore, he decides to continue current activities without making major changes. In this case, the owner is most likely pursuing a generic strategy of ________.

Accepted Answer

The owner's decision to continue current activities without making major changes suggests that they are pursuing a stability strategy, which involves maintaining existing products and markets without significant expansion or contraction. The other options (retrenchment, diversification, growth, differentiation) all involve some form of change or expansion, which the owner is not pursuing in this case.

Question 3

What can impact the competitive nature of an industry through the ability to raise prices or affect the quality of inbound goods and services?

Accepted Answer

Suppliers have the ability to impact the competitive nature of an industry through their bargaining power. They can raise prices or affect the quality of inbound goods and services, which can in turn affect the profitability of the firms in the industry. A strong and concentrated supplier base can make it difficult for firms to negotiate favorable prices and terms, while a weaker and more dispersed supplier base may make it easier for firms to secure better deals.

Question 4

Mega-Big Corp. is interested in buying Soft works, a medical software firm. Soft works is highly regarded by medical practices for ease of use, but hasn't sold well. Two software engineers started the company, but they have made risky financial and poor management decisions. Mega Corp. believes that with proper management the software firm will become an industry leader. In the context of the BCG matrix, Soft works is most likely considered a ________.

Accepted Answer

Soft works is described as having made risky financial and poor management decisions, indicating that it is not currently a star or cash cow. It also hasn't sold well, ruling out top gun. The best fit for Soft works in the BCG matrix is as a problem child, also known as a question mark, which has potential for growth but requires significant investment and attention to become a star.

Question 5

Automobile manufacturers must comply with regulations set by the National Transportation and Safety Board. In the context of situation analysis, which of the following macro-level external environmental factors does this exemplify?

Accepted Answer

The regulation set by the National Transportation and Safety Board is a political, legal, and ethical external environmental factor that automobile manufacturers must comply with.

Question 6

Which of the following is NOT included in the business position factors of the GE Business Screen?

Accepted Answer

The GE Business Screen includes business position factors such as market size, market growth rate, competitive intensity, and relative market share. Governmental regulations are not included as a business position factor.

Question 7

The Hernandez brothers manufacture trailers that are used by lawn service companies. The company was started in Texas by their father with one production site and four sales and service locations. Since the sons took over, they have expanded in the last 12 years to include 26 sales and service centers throughout the southeast. In this case, the company is most likely using a generic business strategy based on ________.

Accepted Answer

The company's expansion to include 26 sales and service centers throughout the southeast indicates that they are using a growth strategy to expand their business.

Question 8

In the context of situation analysis, which of the following is a category for analysis in the internal environment?

Accepted Answer

Firm resources are a key category for analysis in the internal environment. This includes things like the organization's personnel, finances, technology, and other assets that are directly controlled by the company. The other options listed (A, B, D, and E) are all external factors that would be considered in the external environment analysis.

Question 9

A ________ articulates an organization's reason for existence and defines the unique purpose that sets it apart from competitors and identifies the scope of the company's operations, products, and markets.

Accepted Answer

A mission statement defines the purpose and scope of an organization, differentiating it from competitors and guiding its operations. Functional-level plans are more specific and focus on achieving particular goals or objectives, while a value chain refers to the sequence of activities required to produce a product, and a marketing strategy outlines how a company plans to market and sell its products. A value proposition refers to the unique benefit that a product or service offers to customers.

Question 10

Today many retailers create apps that customers can download to their smartphones or tablets to be up-to-date on the company's offerings. In the context of situation analysis, which of the following macro-level external environmental factors does this exemplify?

Accepted Answer

Creating apps that customers can download to their smartphones or tablets exemplifies technological factors, as it is a product of technological advancements in the retail industry.

Question 11

Which of the following is NOT one of the four strategic types of firms proposed by Miles and Snow?

Accepted Answer

The four strategic types proposed by Miles and Snow are prospectors, analyzers, defenders, and reactors. Compromisers are not included in their framework.

Question 12

Which of the following is most likely to be considered a goal rather than an objective?

Accepted Answer

"To be the leader in one's field" is a broad, long-term aspiration that is typically considered a goal. The other options are specific and measurable, indicating more short-term objectives to achieve a particular goal.

Question 13

Which of the following is considered an objective?

Accepted Answer

Objectives should be specific and measurable, and option C fits this criteria by setting a clear goal of increasing revenue by a certain percentage over a specific time period. Options A, D, and E are more like general aspirations or values, while option B may be a goal but lacks specificity in terms of what responsible financial management entails or what outcomes it aims to achieve.

Question 14

Which of the following is NOT a major category for analysis in the internal environment?

Accepted Answer

Rivalry among existing firms is a major category for analysis in the external environment, rather than the internal environment. The other options (A, B, C, E) are all categories for analyzing the internal environment of a firm.

Question 15

Zenith Homebuilders used to purchase many building lots and erect spec homes (i.e., it gambled that the demand for new houses would be so high that they would sell easily). Since the real estate slowdown, it builds homes only when owners are under contract. In this case, the company is most likely pursuing a generic business strategy of ________.

Accepted Answer

Zenith Homebuilders is now building homes only when owners are under contract, which is a retrenchment strategy.

Question 16

Growth, stability, and retrenchment refer to a firm's position relating to its ________ strategy.

Accepted Answer

Growth, stability, and retrenchment are three of the five strategies defined in the generic strategy framework. The other two strategies are differentiation and cost leadership. Therefore, the answer is B) generic.

Question 17

Which of the following competitive forces is NOT addressed directly by Michael Porter?

Accepted Answer

Porter's Five Forces model includes the threat of new entrants, threat of substitute products, bargaining power of suppliers, and rivalry among existing firms. However, relative power of other stakeholders such as customers, government, and employees are not directly addressed by Porter's model.

Question 18

According to the 2010 U.S. Census, Asian Americans are a high-income, fast-growing racial group in America. In the context of situation analysis, under which of the following macro-level external environmental factors will this be included?

Accepted Answer

The fact that Asian Americans are a high-income, fast-growing racial group in America is a result of sociocultural/demographic factors, specifically the changing demographics of the U.S. population. This information would be included in a situation analysis under this macro-level external environmental factor.

Question 19

A SWOT analysis of a firm is least likely to ________.

Accepted Answer

While a SWOT analysis can identify weaknesses, internal strengths, external factors, potential opportunities, and threats, it is not designed to suggest solutions to problems. Rather, it is a tool that provides information to guide strategic decision-making, and solutions must be developed based on that information.

Question 20

Mega-Big Corp. has a small strategic business unit (SBU) that produces a component vital to the manufacturers of automobiles and has been extremely profitable for 18 years. The SBU acts as a key source of income for the firm. In the context of the BCG matrix, Mega-Big Corp. is most likely considered a ________.

Accepted Answer

The SBU of Mega-Big Corp. has been extremely profitable for 18 years and acts as a key source of income for the firm, which indicates that it is a well-established and mature business. In the context of the BCG matrix, such a business is typically considered a cash cow. Therefore, Mega-Big Corp. is most likely considered a cash cow.

Quiz 3: Elements of Marketing Strategy, Planning, and Competition