Question 1

Although now a part of Sears,Lands' End was primarily known as a catalog retailer.This means that traditional department stores,mass merchandisers,specialty shops,and other catalog retailers are considered to be Lands' End's
A)consideration set.
B)industry.
C)competitors.
D)target market.
E)stakeholders.

Accepted Answer

Lands' End's competitors are traditional department stores, mass merchandisers, specialty shops, and other catalog retailers.

Question 2

In the Boston Consulting Group (BCG)model for analysis of a firm's strategic business units,or SBUs,the vertical axis reflects __________.
A)market growth rate
B)marketing efficiencies
C)industry attractiveness
D)market segment size
E)relative market share

Accepted Answer

The BCG model uses a matrix with the horizontal axis representing a firm's relative market share and the vertical axis representing the market growth rate of the industry in which the SBU operates. The options B), D), and E) are not reflective of the BCG model's vertical axis. The option A) market growth rate, represents the rate at which the overall industry is growing and is used as a factor in determining the potential profitability of the SBU. The option C) industry attractiveness, represents the overall profitability potential of the industry and is used to determine the opportunities and threats facing the SBU. Therefore, options A) and C) are the best choices for the vertical axis of the BCG model.

Question 3

What is the common problem for every CEO of a for-profit organization like Apple's Tim Cook?
A)decrease labor expenses through outsourcing
B)increase future sales
C)employ Americans
D)increase the market growth rate
E)decrease relative market share

Accepted Answer

The common problem for every CEO of a for-profit organization is to increase future sales as it determines the success and profitability of the company in the long run.

Question 4

The Boston Consulting Group (BCG)uses business portfolio analysis to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs)
A)as if each were a separate investment.
B)to establish their worth to society at large.
C)to determine which would be suited for a SWOT analysis.
D)to determine which units are candidates for diversification analysis.
E)to determine which units can be divided into smaller,tactical business units (TBUs).

Accepted Answer

BCG uses business portfolio analysis to assess each SBU as if it were a separate investment, evaluating its profitability and potential for growth. This helps clients to make informed decisions about which SBUs to invest in and which ones to divest or downsize.

Question 5

The Boston Consulting Group (BCG)business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs)on a growth-share matrix.The vertical axis of this matrix indicates
A)the annual rate of growth of the firm's largest competitor.
B)the relative dollar ($)market share of the largest competitor.
C)the annual rate of growth of the SBU's industry.
D)the relative unit (#)market share of the largest competitor.
E)the annual rate of growth of the firm itself.

Accepted Answer

The vertical axis of the growth-share matrix in BCG analysis indicates the annual rate of growth of the SBU's industry. This is a measure of how fast the market for a particular product/service is growing, and the opportunities it presents for the SBU to expand its market presence. The horizontal axis, on the other hand, indicates the relative unit market share of the SBU's largest competitor. This is a measure of the SBU's competitive position in the market, and its ability to capture a larger share of the market in the future.

Question 6

All of the following retailers are principal or direct competitors to Lands' End EXCEPT:
A)Amazon.com
B)Sears
C)L.L.Bean
D)Target
E)Pierre Cardin

Accepted Answer

Pierre Cardin is not a direct competitor to Lands' End as it primarily focuses on high-end fashion and accessories. The other options, Amazon.com, Sears, L.L. Bean, and Target, are all competitors in the retail industry that offer similar products and services as Lands' End.

Question 7

The Boston Consulting Group (BCG)uses __________ to quantify performance measures and growth targets to analyze its clients' SBUs as though they were a collection of separate investments.
A)target marketing
B)synergy analysis
C)market-product grids
D)business portfolio analysis
E)diversification analysis

Accepted Answer

The description given in the question matches the concept of business portfolio analysis, which is used by BCG to analyze its clients' strategic business units (SBUs) as if they were individual investments in a portfolio. It helps in quantifying performance measures and growth targets for each SBU, and identifying which ones to invest in and which ones to divest. Target marketing, synergy analysis, market-product grids, and diversification analysis are all related concepts but not the best fit based on the description given in the question.

Question 8

All of the following are names the BCG has given to describe the four quadrants in its growth-share matrix EXCEPT:
A)dogs.
B)stars.
C)question marks.
D)cash cows.
E)hedgehogs.

Accepted Answer

"Hedgehogs" is not a name used by BCG to describe any of the quadrants in its growth-share matrix, while dogs, stars, question marks, and cash cows are all terms used by BCG to describe the four quadrants.

Question 9

The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization."Cash cows" are SBUs that are classified as having
A)high market growth rates and high relative market shares.
B)low market growth rates but high relative market shares.
C)low market growth rates and low relative market shares.
D)high market growth rates but low relative market shares.
E)medium market growth rates and medium relative market shares.

Accepted Answer

"Cash cows" are SBUs with low market growth rates but high relative market shares.

Question 10

Figure 2-4 shown above represents which type of analysis?
A)SWOT analysis
B)synergy analysis
C)marketing audit
D)diversification analysis
E)business portfolio analysis

Accepted Answer

The figure shown above represents the business portfolio analysis, also known as portfolio planning or portfolio management. It helps organizations to analyze and evaluate their various businesses and products to determine their levels of profitability and potential for future growth. The analysis involves two dimensions: market growth rate and relative market share, which are depicted on the horizontal and vertical axis, respectively. The four quadrants of the matrix represent different types of business units: stars, question marks (or problem children), cash cows, and dogs. The analysis helps organizations to make strategic decisions about investing in or divesting from different businesses or products.

Question 11

Netflix is a company that rents DVD movies either by mail or streams movies over the Internet.It jumped into an industry where there were many competitors from other local and national video stores.Initially,it established a loyal clientele by providing a service that was not available-reliable and fast shipment.Its delivery system created Netflix's
A)viable mission.
B)competitive advantage.
C)tactical innovation.
D)core benefit.
E)sales orientation.

Accepted Answer

Netflix's reliable and fast shipment gave them a competitive advantage over other local and national video stores. This was a unique aspect of their service that helped establish a loyal clientele.

Question 12

Two commonly used techniques to aid mangers with important decisions for setting a direction and allocating resources include __________ and __________ analysis strategies.
A)micromarketing;macromarketing
B)business portfolio;diversification
C)investment;divestment
D)dashboards;metrics
E)subjective;objective

Accepted Answer

The two techniques mentioned are business portfolio analysis and diversification analysis, both of which are commonly used to aid managers in making important decisions regarding resource allocation and setting a direction for the organization.

Question 13

The Boston Consulting Group (BCG)business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs)on a growth-share matrix.The horizontal axis of this matrix indicates
A)the annual rate of growth of the SBU's industry.
B)the relative dollar ($)market share of the largest competitor.
C)the annual rate of growth of the firm's largest competitor.
D)the relative unit (#)market share of the smallest competitor.
E)the annual rate of growth of the firm itself.

Accepted Answer

The horizontal axis of the BCG growth-share matrix represents the relative market share, which is the SBU's market share compared to its largest competitor.

Question 14

In the Boston Consulting Group (BCG)model for analysis of a firm's strategic business units,or SBUs,the horizontal axis reflects __________.
A)market growth rate
B)marketing efficiencies
C)industry attractiveness
D)market segment size
E)relative market share

Accepted Answer

The vertical axis is the market growth rate,which is the annual rate of growth of the SBU's industry.The horizontal axis is the relative market share,defined as the sales of the SBU divided by the sales of the largest firm in the industry.

Question 15

Business portfolio analysis refers to
A)a tool that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
B)a technique that managers use to graphically track their firm's strategic business units (SBUs)as though they were a single expense in order to identify cost-cutting measures.
C)a technique that managers use to quantify performance measures and growth targets to analyze their firm's strategic business units (SBUs)as though they were a collection of separate investments.
D)an analysis that uses percentage points of market share as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm.
E)a tool that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.

Accepted Answer

Business portfolio analysis is a technique used by managers to quantify performance measures and growth targets to analyze their firm's strategic business units (SBUs) as though they were a collection of separate investments.

Question 16

Consider the Lands' End ad above.Lands' End communicates a remarkable commitment to its __________ with these unconditional words: "We accept any return,for any reason.Guaranteed.Period."
A)competitive advantage
B)core values
C)core benefit proposition
D)customers
E)mission statement

Accepted Answer

The answer of Consider the Lands' End ad above.Lands' End...

Question 17

In a BCG growth-share matrix,a relative market share of 10× at the left end of the scale on its horizontal axis means that the SBU has 10 times the share of its largest competitor,whereas a relative market share of 0.1× at the right end of the scale on its horizontal axis means that
A)the SBU has only 10 percent of the share of its average competitor.
B)the SBU has 100 percent of the share of its largest competitor.
C)the growth rate between the SBU and the next largest competitor is actually identical.
D)the SBU has only 10 percent of the share of its largest competitor.
E)the industry growth rate is declining.

Accepted Answer

A relative market share of 0.1× at the right end of the scale on its horizontal axis means that the SBU has only 10 percent of the share of its largest competitor.

Question 18

Men's Wearhouse (MW)caters to the man who doesn't necessarily enjoy shopping.Its stores are located in shopping centers so that customers can get in and out quickly.Additionally,the MW targets the budget-conscious consumer with suit prices ranging from $150 to $850.The location of its stores and its pricing strategy both are part of MW's
A)competitive advantage.
B)core values.
C)core benefit proposition.
D)marketing edge.
E)viable mission.

Accepted Answer

MW's strategy of locating its stores in shopping centers for quick convenience and targeting budget-conscious consumers with affordable suit prices is a competitive advantage over other men's clothing retailers.

Question 19

A technique that managers use to categorize strategic business units (SBUs)as question marks,stars,cash cows,or dogs is referred to as a(n)
A)investment (ROI)analysis.
B)synergy analysis.
C)marketing audit.
D)diversification analysis.
E)business portfolio analysis.

Accepted Answer

The technique referred to in the question is known as business portfolio analysis, which helps managers categorize their strategic business units (SBUs) as question marks, stars, cash cows, or dogs based on their market growth rate and relative market share. This information helps managers make decisions about resource allocation and strategic planning for each SBU. Investment (ROI) analysis, synergy analysis, and marketing audits are all useful tools for business analysis, but they are not specifically related to the categorization of SBUs in a business portfolio analysis. Diversification analysis focuses on the expansion of a company's offerings into new markets or products, which is related but not directly applicable to the categorization of SBUs in a business portfolio analysis.

Question 20

The purpose of business portfolio analysis is to
A)add or delete product line and brand extensions.
B)search for growth opportunities from among current and new markets as well as current and new products.
C)alter a product's characteristic,such as its quality,performance,or appearance,to increase its value to customers and increase sales.
D)determine the appeal of each SBU or offering and then determine the amount of cash each should receive.
E)seek opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.

Accepted Answer

Business portfolio analysis is used to evaluate the strategic business units (SBUs) or offerings of a company to determine their appeal and decide how to allocate resources effectively among them.

Quiz 2: Developing Successful Organizational and Marketing Strategies

Although now a part of Sears,Lands' End was primarily known as a catalog retailer.This means that traditional department stores,mass merchandisers,specialty shops,and other catalog retailers are considered to be Lands' End's

In the Boston Consulting Group (BCG) model for analysis of a firm's strategic business units,or SBUs,the vertical axis reflects __________.

What is the common problem for every CEO of a for-profit organization like Apple's Tim Cook?

The Boston Consulting Group (BCG) uses business portfolio analysis to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs)

The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs) on a growth-share matrix.The vertical axis of this matrix indicates

All of the following retailers are principal or direct competitors to Lands' End EXCEPT:

The Boston Consulting Group (BCG) uses __________ to quantify performance measures and growth targets to analyze its clients' SBUs as though they were a collection of separate investments.

All of the following are names the BCG has given to describe the four quadrants in its growth-share matrix EXCEPT:

The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization."Cash cows" are SBUs that are classified as having

Figure 2-4 shown above represents which type of analysis?

Two commonly used techniques to aid mangers with important decisions for setting a direction and allocating resources include and analysis strategies.

The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs) on a growth-share matrix.The horizontal axis of this matrix indicates

In the Boston Consulting Group (BCG) model for analysis of a firm's strategic business units,or SBUs,the horizontal axis reflects __________.

Business portfolio analysis refers to

Consider the Lands' End ad above.Lands' End communicates a remarkable commitment to its __________ with these unconditional words: "We accept any return,for any reason.Guaranteed.Period."

In a BCG growth-share matrix,a relative market share of 10× at the left end of the scale on its horizontal axis means that the SBU has 10 times the share of its largest competitor,whereas a relative market share of 0.1× at the right end of the scale on its horizontal axis means that

A technique that managers use to categorize strategic business units (SBUs) as question marks,stars,cash cows,or dogs is referred to as a(n)

The purpose of business portfolio analysis is to