Chap 9: Functional Level Strategy

Question 1

Intended to maximize the resource productivity of a company so that the value is created as perceived by customers

Answer 1

Functional level strategy

Question 2

Deliver customer-value products

Answer 2

Marketing strategies

Question 3

Maximize the financial value of a company

Answer 3

Financial strategies

Question 4

Guide the development and implementation of various programs

Answer 4

Human resource strategies

Question 5

Reconcile a company’s resources and market requirements

Answer 5

Production and operations strategies

Question 6

Maximize resource productivity

Answer 6

Functional level strategy

Question 7

Gain a competitive position in an industry

Answer 7

Business level strategy

Question 8

Provide the overall direction of a company

Answer 8

Corporate level strategy

Question 9

The marketing logic by which a company hopes to create customer value and achieve profitable customer relationships

Answer 9

Marketing strategy (Kotler and Armstrong, 2013)

Question 10

Dictates the marketing strategy that is adapted by a company based on its competitive position in the market

Answer 10

Competitive position strategy

Question 11

There’s a company that has the largest share in the market

Answer 11

Market leader

Question 12

In this strategy, the market leader expands the demand by developing new users or promoting new usage of a product

Answer 12

Expand total demand strategy

Question 13

Adopted by the market leader, when it continuously innovates, and fixes its weaknesses to avoid competitors from taking opportunities

Answer 13

Protect market share strategy

Question 14

It is the desire of the market leader to expand its market share when it offers superior quality products, builds close customer relationships, and creates good service experiences with customers

Answer 14

Expand market share strategy

Question 15

A company that has a marketshare lower than that of the market leader

Answer 15

Market challenger

Question 16

Attacks the strength of the market, leader, and other competitors not their weaknesses. It matches the market leader’s product, price and distribution system.

Answer 16

Full frontal attack strategy

Question 17

Market challenger of words attacking the strength of the market leader. Instead, it works against the weaknesses of the market leader.

Answer 17

Indirect attack strategy

Question 18

A company that simply follows the market leader, or challenger, instead of attacking them

Answer 18

Market follower

Question 19

In this strategy, the market, followers studies and learns from the experiences of the market leader by improving the market leader’s products and programs at a lower cost

Answer 19

Follow closely strategy

Question 20

The market follower in this strategy simply holds on to its current customers and tries win new customers fairly as a way of avoiding retaliation from the market challenger

Answer 20

Follow at a distance strategy

Question 21

A company that provides the needs of a small segment in the market, which has not been given a preference yet by the market leader or challenger

Answer 21

Market nicher

Question 22

In this strategy, a market nicher can specialize in one type of end-user group or specific customers

Answer 22

Specialization niching strategy

Question 23

A market niche with multiple niching strategy as its competitive position strategy serves two or more market niches

Answer 23

Multiple niching strategy

Question 24

Refers to the buyers of a product or service, not the place where a seller and the buyer meet. They can be actual or potential buyers

Answer 24

Market

Question 25

This strategy is designed to determine the customers to be served and the manner in which they are to be served

Answer 25

Market identification strategy

Question 26

This strategy aims to divide the market into distinct groups of buyers who have different behaviors, characters, and needs

Answer 26

Segmentation strategy

Question 27

This strategy is designed to identify the particular group of customers to be served

Answer 27

Targeting strategy

Question 28

This is concerned with the way customers are served

Answer 28

Positioning strategy

Question 29

In this strategy, the markets and the products are classified either as existing or new

Answer 29

Market-product growth strategy

Question 30

This strategy is adopted by a marketing functional unit when it aims to improve a company’s sales through the rigorous selling of existing products to the current market segment

Answer 30

Market penetration strategy

Question 31

This strategy aims to improve a company’s sales through the sale of existing products to new markets

Answer 31

Market development strategy

Question 32

A company plans to grow by selling new products to existing market segments

Answer 32

Product development strategy

Question 33

A company plans to grow by entering a new market with new product lines

Answer 33

Diversification strategy

Question 34

An important factor in the struggles of a company to achieve a competitive advantage in an industry

Answer 34

Pricing strategy

Question 35

Introducing new products to the market

Answer 35

New product pricing strategy

Question 36

This strategy allows a company to set a high, initial price for its product to obtain the highest possible revenue

Answer 36

Skimming pricing strategy

Question 37

In this strategy, a company sets a low initial price for its product so that it can easily penetrate and gain a considerable share in the market

Answer 37

Penetration pricing strategy

Question 38

A set of product lines or items offered by seller for a single price

Answer 38

Product-mix or product portfolio

Question 39

The price between various products in a product line is set based on cost difference, customer evaluation, and competitor’s price

Answer 39

Product line pricing strategy

Question 40

This pricing strategy is adapted when there are accessories that can be added to the main product

Answer 40

Optional product line pricing strategy

Question 41

A certain product must be used with other products

Answer 41

Captive product pricing strategy

Question 42

Adopted when producing the main product results in a byproduct with a saleable value

Answer 42

Byproduct pricing strategy

Question 43

Products are offered to the market as a bundle with one collective price

Answer 43

Product bundle pricing strategy

Question 44

The plans for a company’s activities, intended to communicate its products to target customers and persuade them to purchase them

Answer 44

Promotion and distribution marketing strategies

Question 45

A promotion strategy that makes use of distribution channels in promoting and selling a product

Answer 45

Bush strategy

Question 46

A promotion strategy that is used when a company, heavily engages in advertising and customer promotion to influence a buyer the purchase of product

Answer 46

Pull strategy

Question 47

The sales force presents the products to customers to make sales and at the same time build strong customer relationships

Answer 47

Personal selling strategy

Question 48

A company distributes, or sells goods or services directly to final consumers for their personal use

Answer 48

Retailing strategy

Question 49

Plans to distribute or sell goods and services to companies that are buying for resale

Answer 49

Wholesaling strategy

Question 50

To deliver customer value products

Answer 50

Marketing strategies

Question 51

To set plans based on the role of a company in a market

Answer 51

Competitive position strategies

Question 52

To determine grows in a target market

Answer 52

Market strategies

Question 53

To set competitive prices for a fair return

Answer 53

Pricing strategies

Question 54

To influence a buyer to purchase

Answer 54

Promotion and distribution strategies

Question 55

This unit, in coordination with the middle and top level management is largely responsible for the formulation of financial strategies

Answer 55

Finance unit

Question 56

A strategic plan that seeks to determine how a company supports the financial requirements of its operating activities and its current assets and fixed asset acquisition

Answer 56

Financing strategy

Question 57

The fixed assets of a company and part of its permanent current assets are financed by long-term debt, equity, and spontaneous current liabilities

Answer 57

Aggressive financing strategy

Question 58

A company borrows a significant amount of funds to acquire another company, using the assets of the acquired company as collateral and some of its own

Answer 58

Leveraged buyout

Question 59

The total assets of a company are financed by long-term debt, equity and spontaneous current liabilities

Answer 59

Conservative financing strategy

Question 60

A financing plan that funds all temporary current assets with short term nonspontaneous debt

Answer 60

Maturity matching financing strategy

Question 61

Concerned with the management of the investment portfolio of a company returns at certain levels of risks

Answer 61

Investing strategy

Question 62

Reflects how a company manages or handles its investment portfolio at a particular level of risk

Answer 62

Management strategy

Question 63

A company places its investment portfolio when market prices are rising and giving higher returns. It is the strategy adapted for the bull market.

Answer 63

Passive management strategy

Question 64

A company places its investment portfolio when market prices are falling with a shorter cycle. This strategy is employed during the bear market.

Answer 64

Active management strategy

Question 65

A company invest funds in a mixture of assets that have low correlation to each other to optimize its return on assets and risk level

Answer 65

Asset allocation strategy

Question 66

A company employs the strategic asset allocation strategy when it has fixed the allocation of its investment portfolio

Answer 66

Strategic asset allocation strategy

Question 67

The portfolio mix is changed when market conditions change

Answer 67

Tactical asset allocation strategy

Question 68

Portfolio mix is returned to its original allocation to realize, gains from investments and expand growth opportunities in high value securities

Answer 68

Portfolio rebalancing

Question 69

Purchases assets that are offered at a discounted price which gives the intrinsic value of the investment

Answer 69

Value investing strategy

Question 70

A company purchases assets or companies that have above average earnings growth not withstanding their valuation and the type of assets acquired

Answer 70

Growth stock investing strategy

Question 71

When a company buys securities that have average earnings in a short period of time and cells those that have poor growth

Answer 71

Momentum investing strategy

Question 72

An organizational plan about a company’s human resource policies and practices, and the way they integrate with other functional areas

Answer 72

Human resource strategy

Question 73

A broad and encompassing strategy that is concerned with the overall effectivity of a company in terms of human resources so people are managed developed, attracted and retained

Answer 73

Overarching human resource strategy

Question 74

A plan that defines what a company intends to do in various specific areas of human resource management

Answer 74

Specific human resource strategy

Question 75

This human resource strategy focuses on the improvement of the processes that support the achievement of a company’s goals and the development of positive culture

Answer 75

Organizational effectiveness strategy

Question 76

This strategy aims to develop or improve the preparation and implementation of organizational development plans

Answer 76

Organizational development strategy

Question 77

This strategy plans to radically change a company’s structure, culture and processes as a response to competitive pressure brought by changes in the market, technology, product lines, and business acquisitions

Answer 77

Organizational transformation strategy

Question 78

It is the strategic human resource management plan designed to identify the ways a company can manage the changes in its culture from depressants date to the desirable future state

Answer 78

Culture management strategy

Question 79

In this strategy, the company aims to acquire, use, and transfer knowledge effectively to achieve competitive advantage

Answer 79

Knowledge management strategy

Question 80

This strategy aims to develop communication, education, training, and involvement, as a way of increasing rewards and motivation, among employees for their commitment to the company

Answer 80

Commitment strategy

Question 81

Intends to develop or build trust, which is considered the sound ground to generate commitment

Answer 81

Climate of trust strategy

Question 82

This strategy is intended to create and maintain a quality oriented, culture and standards to meet the expectations of customers

Answer 82

Quality management strategy

Question 83

The aim of this strategy is to improve and sustain the quality and reliability of products and services over a period of time

Answer 83

Continuous improvement strategy

Question 84

This strategy plans to achieve excellence in service in terms of delivering promises, resolving customers problems, post sale infrastructure, and customer focused systems

Answer 84

Customer service strategy

Question 85

Concerned with meeting the requirements of a company in terms of skills, talents, and behavior

Answer 85

Resource strategies