chapter 2 Flashcards
(19 cards)
Which of the following defines the reason why the business exists?
Vision statement
Mission statement
Gap analysis
Goals and objectives
Mission statement
Which of the following strategies covers the entire organization when the business includes multiple
divisions or operating units?
Functional strategy
Strategic business unit strategy
Corporate-level strategy
Business-level strategy
Corporate-level strategy
Which of the following best describes a gap analysis?
A statement that answers the question, Where do we see the business going?
An internal analysis of the company to identify inherent deficiencies that may hinder its ability to meet its goals
A statement that answers the question, Why does the business exist?
A strategic plan created for a single business or operating unit
An internal analysis of the company to identify inherent deficiencies that may hinder its ability to meet its goals
In “SMART goals,” what does the “R” stand for?
Relatable
Rational
Required
Realistic
Realistic
Marcus is preparing a SWOT analysis for the health club he owns. One of the factors he has identified is
the fact that the health club is the only facility in the area that offers water aerobics classes. In terms of a SWOT analysis, how would this factor be characterized?
Strength
Weakness
Opportunity
Threat
Strength
Hoffman Enterprises has a portfolio of businesses in a wide variety of unrelated industries. One of its
strategic business units (SBUs) has high market share in a low-growth industry. How would this SBU be
characterized in terms of the BCG matrix?
Star
Dog
Cash Cow
Question Mark
Cash Cow
What key metrics does the BCG matrix use to show the relative attractiveness of different offerings?
Market share and market growth rate
Market size and market share
The ratio of dogs to cash cows in the product portfolio
The potential for question marks to cross over and become stars
Market share and market growth rate
Which strategy involves the creation of new or improved products to replace existing ones in order to
improve a company’s competitive position and sales?
Market development
Product diversification
Horizontal diversification
Product development
Product development
In a SWOT analysis, which factors are internal to the organization?
Strengths and opportunities
Weaknesses and threats
Strengths and weaknesses
Opportunities and threats
Strengths and weaknesses
In which section of the marketing plan would you identify key internal and external influences on the
company’s current position?
Objectives and issues
SWOT analysis
Buyer personas
Current marketing situation
SWOT analysis
What are key performance indicators (KPIs)?
Industry economic forecasts gathered during external analysis
A collection of all the detailed statistics we can find regarding firm performance
A competitive analysis that allows a company to understand the strategic direction of competitors
Specific variables that allow us to monitor the health/performance of the organization
Specific variables that allow us to monitor the health/performance of the organization
Why is it important to track customer satisfaction?
(a ) We don’t need to; we already have their money.
( b) Customer referrals can be a powerful promotional tool.
( c) Customer acquisition can be expensive; repeat purchases can be much more profitable.
Statements b and c are both correct.
Statements b and c are both correct.
When a company applied __________, the focus is to sell the existing products to the existing market.
Market Penetration
Market Development
Product Development
Diversification
Market Penetration
When a company applied __________, the focus is to sell the existing products to the new market.
market penetration
market development
product development
diversification
market development
When a company applied __________, the focus is to sell new products to the existing market.
market penetration
market development
product development
diversification
product development
When a company applied __________, the focus is to sell new products to the new market.
market penetration
market development
product development
diversification
diversification
General Electric started out as a lighting business, but over the years, it has diversified into medical devices, household appliances, aircraft engines, financial services, and more.
concentric diversification
horizontal diversification
conglomerate diversification
conglomerate diversification
Concentric diversification
applies to a
company’s existing business by adding
similar products or services.
Horizontal diversification
is used to develop a larger customer base by offeringnew and/or unrelated products or services.
