Question 1

Reckitt & Colman,Inc.manufactures Spray 'n Wash laundry stain remover,Resolve fabric refresher,and Woolite fabric wash.This is an example of ____ diversification.

Accepted Answer

All the products manufactured by Reckitt & Colman, Inc. are related to the laundry and fabric care category. Therefore, this is an example of related diversification.

Question 2

Kmart has struggled for years competing with Wal-Mart and Target.It tried celebrity labels,but that did not help.It cannot lower prices as low as Wal-Mart,because it does not have the distribution expertise.This is an example of a(n)____ strategy.

Accepted Answer

Kmart's inability to effectively compete with Wal-Mart and Target, despite attempts such as introducing celebrity labels and facing challenges in lowering prices due to distribution inefficiencies, exemplifies a reactor strategy. This strategy is characterized by a lack of a consistent approach and reactive measures to competitive pressures, rather than proactive market positioning or innovation.

Question 3

Reality shows became prevalent on television after CBS introduced the first Survivor series.That type of television show is now in the maturity stage of its product life cycle.This means

Accepted Answer

The answer of Reality shows became prevalent on television after...

Question 4

The aircraft engine division of General Electric,which competes with Pratt & Whitney,has its own mission and a strategy that often differs considerably from other parts of the corporation.What is a division such as this called?

Accepted Answer

The description provided refers to a strategic business unit (SBU), which is a semi-autonomous unit within a larger organization that operates as an independent business with its own mission, strategy, and product line. SBUs are typically created to focus on a specific market segment, product line, or geographical region and operate with a high degree of autonomy from the parent company. Examples of SBUs include GE Aviation, GE Healthcare, and GE Transportation.

Question 5

An organization implementing a prospector strategy needs to

Accepted Answer

All of the choices are necessary for an organization implementing a prospector strategy. Creating new opportunities is the core of the prospector approach, and remaining flexible and responding quickly are essential to fulfill the organization's objectives. Decentralizing decision-making can also help the organization move quickly on new opportunities and adjust its strategy as needed. Therefore, all of these choices are important for implementing a prospector strategy.

Question 6

The ____ strategy is the most conservative approach in the Miles and Snow classifications of business strategies.

Accepted Answer

The defender strategy is the most conservative approach in the Miles and Snow classifications of business strategies. Defenders focus on maintaining a stable market position by defending their existing products or services from competition through efficient operations and cost-saving measures. They tend to avoid risks and are more likely to adopt a wait-and-see approach to new opportunities.

Question 7

Which of these is concerned with the changes in the sales volume of a product during its existence?

Accepted Answer

The product life cycle approach is concerned with the changes in the sales volume of a product during its existence, identifying stages of introduction, growth, maturity, and decline. The portfolio approach is concerned with managing a portfolio of products or business units, the environmental SWOT analysis is concerned with analyzing the external opportunities and threats in the market, the Miles and Snow model is concerned with different strategic orientations of organizations, and Maslow's hierarchy is a motivational theory in psychology.

Question 8

The product life cycle

Accepted Answer

The product life cycle shows how sales volume changes over time for products, can help managers recognize that strategies need to evolve over time, begins when a new product or technology is first introduced, and generally consists of four stages. Therefore, all of the choices listed are correct.

Question 9

____ strategies in the Miles and Snow model represent a middle-of-the-road approach to business strategy.

Accepted Answer

The Miles and Snow model includes four strategies: Defender, Prospector, Analyzer, and Reactor. The Analyzer strategy represents a middle-of-the-road approach, where companies balance stability and change. This strategy involves moderate levels of risk-taking and innovation but also maintains some degree of stability and control. The other options listed (Defender, Prospector, Cash cow, and Star) do not align with a middle-of-the-road approach.

Question 10

Mrs.Fields was the first high quality,high priced cookie.Its success attracted competition.Mrs.Field's slowed growth to focus on making current operations more profitable.This is an example of a ____ strategy.

Accepted Answer

Mrs. Fields' decision to slow growth and focus on making current operations more profitable indicates a Defender strategy, which seeks to maintain the current market position by emphasizing stability and efficiency.

Question 11

AOL eliminated fees to some subscribers to try to attract more users.AOL was using a(n)____ strategy.

Accepted Answer

The answer of AOL eliminated fees to some subscribers to...

Question 12

When implementing a differentiation strategy it is important to have

Accepted Answer

All of these choices are important when implementing a differentiation strategy. Marketing should emphasize high-value distinction to communicate the unique features of the product or service. Control of funds is important to ensure efficient use of resources without discouraging creativity. Manufacturing should adjust inventory to meet the demand for the unique product or service. And a culture focused on customer needs is important to ensure that the differentiation strategy is aligned with the needs and wants of the target market.

Question 13

For years,the Tabasco Company used a(n)____ strategy and manufactured only its famous hot sauce.

Accepted Answer

The Tabasco Company's strategy of manufacturing only one product, its famous hot sauce, can be classified as a single-product strategy. This means that the company focuses all its resources and efforts into producing and selling one product, which in this case is the hot sauce.

Question 14

____ strategy refers to a mid-range strategy that attempts to move into new market areas at a deliberate and carefully planned pace.

Accepted Answer

The analyzer strategy is characterized by a moderate level of risk-taking behavior and a focus on expanding into new market areas at a deliberate and carefully planned pace. This strategy combines elements of both the defender and the prospector strategies, with a focus on maintaining a strong core business while exploring new opportunities for growth. The targeted strategy focuses on narrowly defined markets, while differentiation strategy emphasizes differentiation from competitors.

Question 15

Clorox Corporation owns Kingsford charcoal,Matchlight charcoal lighter,Prime Choice steak sauce,and a restaurant chain.This is an example of ____ diversification.

Accepted Answer

The different industries/products owned by Clorox Corporation do not have any relation or connection to each other. This is an example of unrelated diversification.

Question 16

When the iPhone 5 was anticipated for release,the iPhone 4 was expected to drop in price from $250 to $50.The four was at which stage of the product life cycle?

Accepted Answer

The iPhone 4 was in the decline stage of the product life cycle, as indicated by the significant price drop in anticipation of the release of a newer model, the iPhone 5.

Question 17

Which of the following is NOT an example of a basis of relatedness for implementing related diversification?

Accepted Answer

Similar human resources are not a basis of relatedness for implementing related diversification. The other options (similar technology, common brand name and reputation, common customers, and common distribution and marketing skills) all provide a basis for leveraging existing resources and capabilities across businesses for greater efficiencies and synergies.

Question 18

____ is a useful framework for managers to use as they plot business strategy over time.

Accepted Answer

The answer of ____ is a useful framework for managers...

Question 19

When Turner Broadcasting purchased a movie studio with its vault of old movies,it was an example of a(n)____ diversification strategy.Turner was able to get a source for movies to show on its various cable television stations.

Accepted Answer

This is an example of related diversification because Turner Broadcasting acquired a movie studio that complements its existing business of cable television by providing content that can be used on its channels.

Question 20

Warsteiner beer has the slogan "Life is too short,to drink cheap beer." This slogan supports a ____ strategy.

Accepted Answer

The slogan "Life is too short, to drink cheap beer" implies that Warsteiner beer is superior to cheaper alternatives, supporting a differentiation strategy.

Quiz 8: Managing Strategy and Strategic Planning