Question 1

_____ are methods used to determine how resources should be allocated among the various strategic business units (SBUs)in an organization.

Accepted Answer

Portfolio models are the methods used to determine how resources should be allocated among the various strategic business units (SBUs) in an organization. These models help in identifying and analyzing the performance of different SBUs and making investment decisions based on their potential for growth and profitability. Examples of portfolio models include the Boston Consulting Group (BCG) matrix and the General Electric (GE) matrix. Matrix models, variable models, and vector models are not specifically designed for resource allocation decisions among SBUs.

Question 2

The _____ for a soft drink manufacturer would include other manufacturers of soft drinks,fruit juices,bottled water,sports drinks,caffeine-free colas,and dairy beverages.

Accepted Answer

The competitive environment includes all the businesses that offer similar products or services and compete for the same market share. In this case, other manufacturers of soft drinks, fruit juices, bottled water, sports drinks, caffeine-free colas, and dairy beverages are direct competitors for the soft drink manufacturer.

Question 3

The cooperative environment includes:

Accepted Answer

The cooperative environment encompasses all the firms and individuals who share an interest in accomplishing the objectives of the organization. This includes suppliers, distributors, customers, and other stakeholders who collaborate to promote mutual benefits. Thus, Option A is the most appropriate choice. Option B is incorrect as the competitive environment includes rival firms that compete for resources and customers. Option C is also incorrect as it refers to the external environment that shapes the organization's image, reputation, and social responsibility. Option D is irrelevant as the marketing department is an internal functional department that deals with the promotion and distribution of goods and services.

Question 4

Which of the following statements is true according to the model developed by Michael Porter for formulating organizational strategy?

Accepted Answer

According to Michael Porter's model, firms should first analyze their industry and then choose between a cost leadership strategy or a differentiation strategy. This is because the nature of the industry and the competitive forces within it will determine which strategy is most effective in achieving a competitive advantage. Alternative portfolio models and being a cost follower are not primary components of Porter's model.

Question 5

In the context of situational analysis,the _____ includes the attitudes and reactions of the general public,social and business critics,and other organizations,such as the Better Business Bureau.

Accepted Answer

The answer of In the context of situational analysis,the _____...

Question 6

Essential Products Inc.manufactures a wide range of healthcare products for infants,toddlers,and adults.The company is not able to allocate large budgets for each of its product groups because of resource constraints,and it is making huge losses in most of its product groups.In the context of strategic planning,which of the following is the final phase that Essential Products Inc.should adopt to revive its business?

Accepted Answer

Formulating an organizational portfolio plan is the final phase that Essential Products Inc. should adopt to revive its business. This involves analyzing the performance of each product group and deciding which ones to continue, which ones to divest, and which ones to invest in further. This will help the company to allocate its resources more effectively and focus on the products that have the most potential for growth and profitability. Creating an organizational mission, setting organizational objectives, and creating organizational strategies are all important steps in the strategic planning process, but they come before the final phase of formulating an organizational portfolio plan.

Question 7

Using a competitive advantage strategy based on _____,a firm seeks to be unique in its industry or market segment along particular dimensions that the customers value.

Accepted Answer

Product differentiation is a strategy in which a firm focuses on offering unique features or characteristics that distinguish it from its competitors and are valued by customers. This can be achieved through design, technology, quality, customer service, or other dimensions that set the firm apart in the marketplace. By leveraging its distinctive attributes, the firm can attract and retain customers who are willing to pay a premium for its products or services and build a sustainable competitive advantage.

Question 8

The removal of tariffs on the import of Canadian lumber will adversely affect the U.S.lumber industry because Canada is able to produce lumber much more inexpensively than the U.S.This tariff removal is an example of how the _____ environment can affect businesses.

Accepted Answer

The removal of tariffs is a legal change, as it involves a decision made by the government to change the taxes imposed on imported goods. Therefore, the best choice is D.

Question 9

When using a cost leadership strategy,a firm is most likely to offer:

Accepted Answer

When using a cost leadership strategy, the focus is on reducing costs in order to offer products at a lower price than competitors. Therefore, the firm is most likely to offer a standard, no-frills product that is cheaper than other alternatives. Highly differentiated, prestige, or expensive products with superior design and quality entail higher production costs and are unlikely to be part of a cost leadership strategy.

Question 10

Elite Inc.is as a brand of luxury clothing and accessories,and it targets affluent working women.However,it alters its offerings to include a large proportion of standard clothes at cheaper prices when the country faces severe recessionary pressures.In this scenario,which of the following environments does Elite primarily respond to by changing its offerings?

Accepted Answer

Elite Inc. primarily responds to the economic environment by changing its offerings, in this case, offering cheaper prices during a recessionary period. The economic environment refers to factors such as inflation, recession, unemployment, and income levels that affect the purchasing power and consumer behavior.

Question 11

Which of the following observations pertains to strategic business units (SBUs)?

Accepted Answer

SBUs are individual businesses or product lines within a larger organization that can be planned and managed independently of the other businesses of the total organization in terms of marketing, growth, and profitability. They have their own customers, competitors, and products/services.

Question 12

Which of the following is most likely to comprise the cooperative environment of a firm?

Accepted Answer

A supplier chosen as the firm's single source is part of the cooperative environment because they work closely with the firm to provide necessary goods or services, often involving collaboration and mutual dependence.

Question 13

A firm has chosen to create an organizational strategy based on differentiation.Which of the following is the firm's next step in the strategic planning process?

Accepted Answer

The answer of A firm has chosen to create an...

Question 14

Since September 11,2001,the number of people attending church and looking toward religion to provide solace has increased.As a result,Bible publishers have developed the Starting Point Study Bible,which explains what they are reading and includes a dictionary of biblical terms.In this scenario,the changes in the _____ have led to the publication of the Starting Point Study Bible.

Accepted Answer

The increase in attendance at church and the search for solace after the events of September 11 demonstrate a change in the social environment, which has led to the creation of the Starting Point Study Bible.

Question 15

Which of the following is an organizational strategy based on competitive advantage?

Accepted Answer

Cost leadership strategy is an organizational strategy based on competitive advantage. It focuses on reducing costs to gain a competitive advantage over rivals.

Question 16

PureFruit Inc.prices its products higher than most of its competing brands in the packaged fruit juice industry.However,it still enjoys higher returns than its competitors because it is the only brand that can rightfully claim the use of fresh fruits and no added sugar.What kind of organizational strategy based on competitive advantage does PureFruit most likely use?

Accepted Answer

PureFruit is using a strategy of differentiation by positioning itself as a premium brand that offers superior quality products with no added sugar. This allows the company to price its products higher than competitors and still maintain higher returns.

Question 17

Which of the following is a stage of the marketing planning process that involves the analysis of the past,present,and likely future in six major areas of concern?

Accepted Answer

Situation analysis is the stage in the marketing planning process that involves analyzing the past, present, and likely future in six major areas of concern, namely, the company, customers, competitors, collaborators, climate, and cultural forces. Based on this analysis, marketers can identify opportunities and potential problems that can affect the success of the marketing plan.

Question 18

While choosing an appropriate strategy to establish competitive advantage,management should choose an organizational strategy that:

Accepted Answer

Choosing an organizational strategy that is consistent with the organization's mission and capitalizes on its distinctive competencies is the best approach to establish competitive advantage. This ensures that the organization's resources and capabilities are utilized effectively to differentiate its products or services from competitors, thereby creating a unique selling proposition. Following all strategies and trying to be all things to all people is unlikely to work, and cost leadership may not always be sustainable in the long run. Empowering the organization to grow without creating new products or entering new markets may limit the organization's potential for growth and expansion.

Question 19

If a firm chooses to succeed by building long-term relationships with its customers by offering either best price,best product,or best service,it implies that the firm's organizational strategy is:

Accepted Answer

The firm's organizational strategy is based on value, as it focuses on building long-term relationships with customers by offering either the best price, best product, or best service. This implies that the firm is aiming to provide superior value to its customers, which is a key pillar of a value-based strategy. A competitive parity strategy would focus on matching competitors in terms of price or quality, rather than offering superior value. A product and market strategy would focus on developing and marketing specific products and services, while a selling strategy would be focused on sales and distribution rather than customer relationships.

Question 20

Healthline is a brand of incontinence products.Healthline products sell for $5 less than its rival brand,Depends.According to Michael Porter's model,Healthline is most likely using a _____ strategy to market its products.

Accepted Answer

Healthline's strategy of selling its products for $5 less than its rival brand suggests that the company is emphasizing cost reduction and offering a lower price point to attract customers. This is consistent with a cost leadership strategy, which aims to achieve a competitive advantage by offering products or services at the lowest costs in the industry.

Quiz 1: Strategic Planning and the Marketing Management Process

_____ are methods used to determine how resources should be allocated among the various strategic business units (SBUs) in an organization.