Question 1

Speed,an automobile company,has a broad product range that includes cars as well as car accessories.It prioritizes new product and service development and innovation to meet new and changing customer needs and demands and to create new demands.It is constantly on the lookout for new opportunities and ensures that it is the "first mover" in new product and market areas.In the context of the Miles and Snow typology,this accurately exemplifies the _____ strategy.

Accepted Answer

Speed, as described in the passage, prioritizes new product and service development and innovation to meet new and changing customer needs and demands. This shows a focus on exploring and expanding into new market areas and taking risks, which aligns with the prospector strategy in the Miles and Snow typology.

Question 2

A _____ is defined as any activity or benefit that one party can offer to another that is essentially intangible and that does not result in the ownership of anything.

Accepted Answer

The definition specifically mentions that it is something intangible and does not result in ownership. A product, good, or merchandise implies a tangible item that can be owned, bought, or sold. A service fits the described definition.

Question 3

Profitability as a percent of sales and return on investment are said to be measures of:

Accepted Answer

Profitability as a percent of sales and return on investment are both measures of efficiency, in terms of how well a company manages its resources to generate profits. Effectiveness is more focused on achieving goals and objectives, while differentiation and adaptability are related to competitive strategies and the ability to innovate and respond to changing market conditions.

Question 4

If a company such as Volvo adds the all-wheel-drive technology to one of its car lines to exploit a growing market for luxury cars,while maintaining its position in the established markets,we can infer that the company follows the _____ strategic type.

Accepted Answer

The differentiated analyzer strategic type is characterized by adding new features or technologies to existing products to appeal to a broader range of customers while maintaining a strong presence in the current markets. In this case, adding all-wheel-drive to a luxury car line is an example of differentiation, and Volvo is still maintaining its position in the market for luxury cars. Therefore, option B is the best choice. The high-cost prospector type involves introducing new products with new technology, which is not the case here. The low-cost prospector type involves introducing low-cost products in new markets. The differentiated endorser type involves using the company's reputation or image to differentiate its products, which is also not relevant here.

Question 5

According to the Miles and Snow typology,the analyzer strategic type:

Accepted Answer

The analyzer strategic type is characterized by being a second or third entrant in product-markets related to its existing market base. They are cautious in their approach, often offering a lower cost or higher quality product. They do not ignore industry changes, but also do not value being a first mover in new product and market areas. They respond to environmental pressures when necessary but do not actively seek out change. Option A is incorrect as analyzers do not ignore industry changes. Option C is incorrect as analyzers do not respond primarily when forced to, and option D is incorrect as analyzers do not value being a first mover in new product and market areas.

Question 6

One of the most common measures of adaptability is:

Accepted Answer

The number of successful new products introduced relative to competitors is a common measure of adaptability because it shows how well a company can adapt to changing market conditions and customer needs.

Question 7

The difference between single-business and multi-SBU organizations is that in the case of smaller single-business firms:

Accepted Answer

Smaller single-business firms do not have the luxury of separating their marketing strategy from their overall competitive strategy, as they have a more limited scope of operations. Therefore, their business-level competitive strategy and marketing strategy often blend into one.

Question 8

Which type of strategy is particularly well-suited to environments which are unstable and rapidly changing due to new technology and/or shifting customer needs?

Accepted Answer

A prospector strategy is particularly well-suited to unstable and rapidly changing environments as it emphasizes innovation and risk-taking to explore new market opportunities and stay ahead of competitors. This strategy focuses on continuous experimentation and flexibility to adapt quickly to changing customer needs and new technologies.

Question 9

The category of business most likely to devote the largest proportion of resources to development of new product-markets is the _____ business.

Accepted Answer

Prospectors are characterized by a focus on innovation and growth through the development of new products and markets. They allocate a large proportion of their resources to research and development in order to identify and capitalize on emerging opportunities. Defenders, on the other hand, prioritize maintaining their current market position and may be less willing to take risks on new ventures. Differentiators focus on distinguishing their products from those of competitors rather than necessarily developing new markets. Reactors are typically not as proactive in their approach to innovation and may only respond to changes in the market as they occur.

Question 10

Tata Motors,an leading auto company in India,launched its low-priced car model,Nano,in the year 2009.It made the production of Nano possible by using lighter material and replacing expensive material with less expensive material wherever possible,without compromising on safety and environmental issues.Thus,with a successful implementation of its well-constructed strategy,it has strengthened and defended its share of the established market.The company has very successfully implemented the _____ strategy.

Accepted Answer

Tata Motors implemented a low-cost analyzer strategy by producing the Nano using cost-effective materials and methods, allowing it to offer the car at a lower price while maintaining safety and environmental standards.

Question 11

Businesses that compete in the global market almost always pursue a(n)_____ strategy.

Accepted Answer

Businesses in the global market often pursue an analyzer strategy, which combines elements of both innovation and stability, allowing them to adapt to changing environments while maintaining a stable core.

Question 12

A(n)_____ offering can rarely be experienced in advance of a sale while a(n)_____ offering can be tested before purchase.

Accepted Answer

An intangible offering refers to a product or service that cannot be physically touched or seen, such as expertise, knowledge, or a warranty. These offerings are difficult to experience before purchase. On the other hand, a tangible offering refers to a product or service that can be physically touched or seen, such as a car or a haircut, which can be tested before purchase. Therefore, (A) is the best choice as it correctly identifies these two different types of offerings.

Question 13

_____ are most likely to focus the bulk of their resources on preserving existing positions in established product-markets.

Accepted Answer

Defenders are the types of companies that prioritize the retention of their current market position and defend against any competitive threats. They focus on improving their existing products and maintaining customer loyalty. As a result, they tend to allocate their resources towards R&D, operational efficiency, and marketing efforts to sustain their position in established product-markets.

Question 14

Strategic business units which have no clear strategy and do not have as consistent a product-market orientation as its competitors,are referred to as _____ in the Miles and Snow typology.

Accepted Answer

Strategic business units which have no clear strategy and do not have as consistent a product-market orientation as its competitors are referred to as reactors in the Miles and Snow typology.

Question 15

The business strategy most likely to have been successful when cordless telephones were first introduced and began to grow as a market was that of the:

Accepted Answer

When a new product is introduced and begins to grow as a market, the most successful business strategy is that of a prospector. A prospector is a company that seeks out new opportunities and is willing to take risks in order to grow and expand its market. In this case, cordless telephones were a new technology that presented an opportunity for companies to grow and expand their market. A prospector would be best equipped to take advantage of this opportunity and develop strategies to capture market share. Differentiated defenders and low-cost defenders are better suited for mature markets with established competition, while a reactor would be a company that is not proactive in responding to changes in the market.

Question 16

The increased share of market that is an indicator of the success of an SBU's products and programs,is the primary objective of both New Edge Inc.and Cutting Edge Inc.If New Edge Inc.increases its market share by 10 percent during a given period,while Cutting Edge Inc.increases its market share by 2 percent,New Edge Inc.can be said to be more:

Accepted Answer

The primary objective of both New Edge Inc. and Cutting Edge Inc. is to increase their share of the market, and the company that increases its market share by a higher percentage is considered more effective. Therefore, New Edge Inc. is more effective than Cutting Edge Inc. as it has increased its market share by 10 percent compared to Cutting Edge's 2 percent increase.

Question 17

According to the Miles and Snow typology,the defender strategic type:

Accepted Answer

The defender strategic type attempts to locate and maintain a secure position in relatively stable product or service areas. They focus on improving their existing products and services and invest in incremental innovations to further strengthen their position in the market. They are not likely to be first movers in new-product market areas and do not respond rapidly to early signals concerning areas of opportunity. They also do not actively seek out promising new developments but rather carefully follow a selected set of developments that align with their core business.

Question 18

A(n )_____ business attempts to maintain a strong position in its core product market but also seeks to expand into new-usually closely related-product-markets.

Accepted Answer

An analyzer strategy involves maintaining a strong position in the core market while also seeking to expand into new, usually closely related, markets. This approach balances the focus on the current market with the exploration of new opportunities.

Question 19

Which of the following is true of the reactor strategic type in the context of the Miles and Snow typology?

Accepted Answer

The reactor strategic type responds primarily when forced to by environmental pressures, rather than proactively developing a well-defined competitive strategy or assuming risks for new-product development. The reactor type lacks a consistent product-market orientation and typically only reacts to changes in the environment as they occur.

Question 20

The success of an SBU's products and programs relative to its competitors in the marketplace is known as that SBU's:

Accepted Answer

The term "effectiveness" refers to the degree to which an SBU's products and programs are successful in comparison to those of its competitors in the marketplace. Therefore, Option C is the correct answer. Option A, "adaptability," refers to the ability of an SBU to respond and adjust to changes in its environment, while Option B, "efficiency," refers to the ability of an SBU to use its resources in the most effective manner possible. Option D, "return on sales," refers to the percentage of profit generated by an SBU's sales, which is not explicitly related to success relative to competitors.

Quiz 9: Business Strategies: a Foundation for Marketing Program Decisions

A _____ is defined as any activity or benefit that one party can offer to another that is essentially intangible and that does not result in the ownership of anything.

Profitability as a percent of sales and return on investment are said to be measures of:

If a company such as Volvo adds the all-wheel-drive technology to one of its car lines to exploit a growing market for luxury cars,while maintaining its position in the established markets,we can infer that the company follows the _____ strategic type.

According to the Miles and Snow typology,the analyzer strategic type:

One of the most common measures of adaptability is:

The difference between single-business and multi-SBU organizations is that in the case of smaller single-business firms:

Which type of strategy is particularly well-suited to environments which are unstable and rapidly changing due to new technology and/or shifting customer needs?

The category of business most likely to devote the largest proportion of resources to development of new product-markets is the _____ business.

Businesses that compete in the global market almost always pursue a(n) _____ strategy.

A(n) _ offering can rarely be experienced in advance of a sale while a(n) _ offering can be tested before purchase.

_____ are most likely to focus the bulk of their resources on preserving existing positions in established product-markets.

Strategic business units which have no clear strategy and do not have as consistent a product-market orientation as its competitors,are referred to as _____ in the Miles and Snow typology.

The business strategy most likely to have been successful when cordless telephones were first introduced and began to grow as a market was that of the:

According to the Miles and Snow typology,the defender strategic type:

A(n ) _____ business attempts to maintain a strong position in its core product market but also seeks to expand into new-usually closely related-product-markets.

Which of the following is true of the reactor strategic type in the context of the Miles and Snow typology?

The success of an SBU's products and programs relative to its competitors in the marketplace is known as that SBU's:

Quiz 9: Business Strategies: a Foundation for Marketing Program Decisions

A _____ is defined as any activity or benefit that one party can offer to another that is essentially intangible and that does not result in the ownership of anything.

Profitability as a percent of sales and return on investment are said to be measures of:

If a company such as Volvo adds the all-wheel-drive technology to one of its car lines to exploit a growing market for luxury cars,while maintaining its position in the established markets,we can infer that the company follows the _____ strategic type.

According to the Miles and Snow typology,the analyzer strategic type:

One of the most common measures of adaptability is:

The difference between single-business and multi-SBU organizations is that in the case of smaller single-business firms:

Which type of strategy is particularly well-suited to environments which are unstable and rapidly changing due to new technology and/or shifting customer needs?

The category of business most likely to devote the largest proportion of resources to development of new product-markets is the _____ business.

Businesses that compete in the global market almost always pursue a(n) _____ strategy.

A(n) _____ offering can rarely be experienced in advance of a sale while a(n) _____ offering can be tested before purchase.

_____ are most likely to focus the bulk of their resources on preserving existing positions in established product-markets.

Strategic business units which have no clear strategy and do not have as consistent a product-market orientation as its competitors,are referred to as _____ in the Miles and Snow typology.

The business strategy most likely to have been successful when cordless telephones were first introduced and began to grow as a market was that of the:

According to the Miles and Snow typology,the defender strategic type:

A(n ) _____ business attempts to maintain a strong position in its core product market but also seeks to expand into new-usually closely related-product-markets.

Which of the following is true of the reactor strategic type in the context of the Miles and Snow typology?

The success of an SBU's products and programs relative to its competitors in the marketplace is known as that SBU's:

A(n) _ offering can rarely be experienced in advance of a sale while a(n) _ offering can be tested before purchase.