Quiz 1 Flashcards
(28 cards)
Which level of strategy provides direction on the company’s mission, the kinds of businesses it should be in, and its growth policies?
Corporate strategy
What question needs to be specifically addressed while developing a business strategy?
What distinctive competencies can give the business unit a competitive advantage?
What is primary focus of marketing strategy?
Effective allocation and coordination of resources to meet organizational objectives within a specific product-market
Why are early entrants into newly emerging industries, particularly industries based on new technologies, especially likely to be internally focused and not very market-oriented?
Rapid growth in demand for the new product
Product-oriented firms
Are likely to be internally focused
Which of the following approaches characterize a production-oriented organization?
Primary focus on functional performance and cost
Marketers have identified 4Cs critical to a good strategic marketing plan. Which of the following is not one among them? A.Company B.Context C.Contacts D.Customers
Contacts
A distinct subset of people with similar needs, circumstances, and characteristics that lead them to respond in a similar way to a particular product or service offering is known as a
Market segment
Which of the following is considered an important tool for communicating and coordinating expectations and responsibilities throughout the firm?
Written marketing plan
Which of the following statements is consistent with the marketing orientation?
A. Pricing is based on production and distribution costs
B Pricing is based on perceived benefits the product provides.
C. Credit is a necessary evil.
D. Promotion should emphasize product features
Pricing is based on perceived benefits the product provides.
In expressing corporate objectives aimed at enhancing shareholder value, a firm combining its debt and market value of its stock, and then subtracting the capital invested in the company, is using the _____ approach.
Economic value added
Standard accounting measures such as earnings per share or return on investment are
Objectives that consistently set benchmarks for accurately evaluating performance
Amazon.com pursued a combination of actions such as making service improvements, cutting costs as well as forming alliances with Web portals to expand its share of Web shoppers, even though the expense of such activities postponed the firm’s ability to become profitable. This is an example of expansion by
Increasing market penetration of current product
Amazon.com pursued a combination of actions such as making service improvements, cutting costs as well as forming alliances with Web portals to expand its share of Web shoppers, even though the expense of such activities postponed the firm’s ability to become profitable. This is an example of expansion by
Increasing market penetration of current product
. What does value-based planning assist in?
addressing questions concerning a business unit’s competitive strategy by assessing the shareholder value a given strategy is likely to create
Strategic business units
Are components of a firm engaged in multiple industries or businesses
Which of the following is not a dimension that defines the scope and mission of an individual SBU?
Similarity of competitors
A firm ensures that no two SBUs within the firm compete for the same customers with similar products. Which SBU characteristic is being discussed here?
A unique set of product-markets
3M consumer product group introduced Never Rust soap pads made from recycled plastic beverage bottles. Its objective was to capture a major share of the soap pad market and maximize Never Rust’s volume growth. The firm’s top managers approved a major investment in a new plant and a substantial introductory advertising budget. At the same time, the consumer group maintained high profitability goals for its other established products to provide the cash required for Never Rust’s introduction and preserve the group’s overall profit level. Identify the business strategy employed here.
A firm breaking down its corporate objectives into subobjectives for each SBU
According to Michael Porter, a business that avoids direct confrontation with its major competitors by concentrating on narrowly defined market niches is using the ______ strategy to gain and maintain competitive advantage.
Focus
A business pursuing a prospector strategy
Focuses on growth through the development of new products and markets
Which business strategy is followed by a business that attempts to maintain a strong position in its core product-market but also seeks to expand into new—usually closely related—product-markets?
Analyzer strategy
Businesses following a reactor strategy
Are not as willing to assume the risks of a new product or market development as its competitors
Which of the following observations is not true of services?
They can be even tested before purchase
