Ch3 Test Bank Docx Strategic Marketing Decisions, Choices,

Chapter 3: Strategic marketing decisions, choices, and mistakes

Test Bank

Type: multiple choice question

Title: Chapter 03 Question 01

1) Strategic choice as an area of strategic marketing management process involves

a. choosing a market to enter.

b. understanding the underlying bases guiding future strategy, and generating strategic options for evaluation and selecting from them.

c. choosing company name.

d. choosing market tactics.

Type: multiple choice question

Title: Chapter 03 Question 02

2) Which of the following is an example of strategic decision at the corporate level?

a. Choosing generic strategy

b. Developing a mission statement

c. Focus strategy

d. Market position tactics

Type: multiple choice question

Title: Chapter 03 Question 03

3) Which of the following is an example of a strategic decision at the SBU level?

a. Choosing generic strategy

b. Developing a mission statement

c. Directional strategy

d. Market position tactics

Type: multiple choice question

Title: Chapter 03 Question 04

4) The unique purpose of a firm that distinguishes it from others and defines the boundary of operation is called _________

a. mission.

b. strategy.

c. fission.

d. idealism.

Type: multiple choice question

Title: Chapter 03 Question 05

5) Which of the following are examples of directional strategies?

a. Growth strategies

b. Stability strategies

c. Retrenchment strategies

d. All of the options given are correct.

Type: multiple choice question

Title: Chapter 03 Question 06

6) What is the difference between a concentration growth strategy and a diversification growth strategy?

a. There is no difference between the two.

b. Concentration strategy is concentric whereas diversification is horizontal.

c. Concentration strategy is conglomerate whereas diversification is vertical.

d. Concentration strategy is vertical/horizontal whereas diversification is concentric/conglomerate.

Type: multiple choice question

Title: Chapter 03 Question 07

7) Portfolio analysis and planning normally takes two forms:

a. Industry analysis and company analysis

b. Market analysis and competitive analysis

c. Industry analysis and financial analysis

d. Product portfolio analysis and business portfolio analysis.

Type: multiple choice question

Title: Chapter 03 Question 08

8) What does the BCG matrix focus on?

a. Market share

b. Market growth

c. Industry attractiveness

d. Market share and market growth

Title: Chapter 03 Question 09

9) What does the GE business screen focus on?

a. Position of the business

b. Market growth

c. Industry attractiveness

d. Position of the business and industry attractiveness

Type: multiple choice question

Title: Chapter 03 Question 10

10) BCG matrix, GE matrix, and Shell directional matrix are tools used by firms to ____________

a. manage people.

b. allocate resources.

c. start business.

d. manage brand communication.

Type: multiple choice question

Title: Chapter 03 Question 11

11) What are the four quadrants of the BCG matrix?

a. Star, wildcat, dog, elephant

b. Star, wildcat, cow, elephant

c. Star, wildcat, dog, cash cow

d. Star, mouse, dog, elephant

Type: multiple choice question

Title: Chapter 03 Question 12

12) What is the appropriate strategic objective for a cash cow business?

a. Build

b. Harvest/Hold

c. Divest

d. Invest

Type: multiple choice question

Title: Chapter 03 Question 13

13) What is the appropriate strategic objective for a dog business?

a. Build

b. Harvest

c. Divest

d. Invest

Type: multiple choice question

Title: Chapter 03 Question 14

14) The following is a criticism of the BCG matrix.

a. It is too simplistic.

b. The cut-off point of 10% growth is too high.

c. Market growth is not the only indicator of industry attractiveness.

d. All of the options given are correct.

Type: multiple choice question

Title: Chapter 03 Question 15

15) The advantage of the GE model lies in

a. the use of more variables than those used in BCG matrix.

b. the recognition that the attractiveness of an industry can be assessed in different ways than using growth rate only.

c. the use of nine cells, not only four.

d. All of the options given are correct.

Type: multiple choice question

Title: Chapter 03 Question 16

16) Portfolio analysis has gained a wide adoption because

a. it stimulates the use of externally oriented data to supplement management’s judgement.

b. it recognizes the importance of the fund generation ability of each SBU.

c. it motivates managers to evaluate the internal and external environment of each business unit.

d. All of the options given are correct.

Type: multiple choice question

Title: Chapter 03 Question 17

17) How many generic strategies did Porter talk of?

a. Three

b. Four

c. Five

d. Six

Type: multiple choice question

Title: Chapter 03 Question 18

18) Cost leadership strategy is about

a. low cost.

b. a strategy aimed at narrow market.

c. a low-cost strategy aimed at narrow market.

d. a low-cost strategy aimed at mass market.

Type: multiple choice question

Title: Chapter 03 Question 19

19) If a firm has a low-cost strategy aimed at a narrow market it is following which strategy?

a. Cost focus

b. Cost leadership

c. Market leadership

d. Global leadership

Type: multiple choice question

Title: Chapter 03 Question 20

20) Differentiation can be earned by a firm through which of the following?

a. Brand image

b. Technology

c. Customer service

d. All of the options given are correct.

Type: multiple choice question

Title: Chapter 03 Question 21

21) If a firm has a differentiation strategy aimed at a narrow market it is following which strategy?

a. Focused differentiation strategy

b. Differentiation strategy

c. Market leadership

d. Global leadership

Type: multiple choice question

Title: Chapter 03 Question 22

22) A firm with more than one generic strategy could be

a. born for success.

b. stuck in the middle.

c. stuck in the heart.

d. geared for growth.

Type: multiple choice question

Title: Chapter 03 Question 23

23) When defining marketing objectives, the common wisdom is that objectives should be

a. quantitative, realistic, consistent.

b. qualitative, realistic, consistent.

c. quantitative, ambitious, consistent.

d. quantitative, realistic, innovative.

Type: multiple choice question

Title: Chapter 03 Question 24

24) What is NOT the job of R&D Manager?

a. Choosing alternate technologies

b. Embody new technology into products and services

c. Deploying resources for technology implementation

d. Anticipate what consumers could need in the future

Type: multiple choice question

Title: Chapter 03 Question 25

25) What are the two dimensions of the Ansoff matrix?

a. Market, consumer

b. Market, industry attractiveness

c. Industry attractiveness, firm position

d. Market, product

Type: multiple choice question

Title: Chapter 03 Question 26

26) Offering new products to current markets (as per Ansoff matrix) is called which strategy?

a. Market penetration

b. Product development

c. Diversification

d. Market development

Type: multiple choice question

Title: Chapter 03 Question 27

27) Offering new products to new markets (as per Ansoff matrix) is called which strategy?

a. Market penetration

b. Product development

c. Diversification

d. Market development

Type: multiple choice question

Title: Chapter 03 Question 28

28) Offering current products to new markets (as per Ansoff matrix) is called which strategy?

a. Market penetration

b. Product development

c. Diversification

d. Market development

Type: multiple choice question

Title: Chapter 03 Question 29

29) What is the riskiest strategy for a firm in a fast-changing marketplace?

a. To stay with the penetrations strategy

b. To pursue product development strategy

c. To adopt market development strategy

d. To diversify

Type: multiple choice question

Title: Chapter 03 Question 30

30) A company that moves earlier than its competitors to manufacture and sell a new product is called

a. the first winner.

b. first mover.

c. early adopter.

d. early bird.

Type: multiple choice question

Title: Chapter 03 Question 31

31) A firm with the largest market share is called

a. market challenger.

b. market leader.

c. market follower.

d. market feeder.

Type: multiple choice question

Title: Chapter 03 Question 32

32) A firm that serves smaller segments not being pursued by other firms is called

a. market challenger.

b. market leader.

c. market nicher.

d. market minor.

Type: multiple choice question

Title: Chapter 03 Question 33

33) A market leader needs to search for

a. new users.

b. new uses.

c. more usage.

d. All of the options given are correct.

Type: multiple choice question

Title: Chapter 03 Question 34

34) A company that builds fortifications around its current position is said to be following a ________ defence tactic.

a. flanking

b. contraction

c. position

d. counter-offensive

Type: multiple choice question

Title: Chapter 03 Question 35

35) What is NOT a competitive tactics for the market follower?

a. Follow closely

b. Follow at a distance

c. Follow selectively

d. Follow frugally

Type: multiple choice question

Title: Chapter 03 Question 36

36) To understand organizational survival and/or failure we should assess

a. the firm’s management capability.

b. the firm’s external environment.

c. the way the firm’s management interacts with its external environment.

d. All of the options given are correct.

Type: multiple response question

Title: Chapter 03 Question 37

37) Which of the following strategic choices and decisions is likely to lead to strategic mistakes and failure? Please select all that apply.

a. Attempted growth without adequate skills or experience

Feedback: A study of a very large European telecommunications firm identified a number of strategic choices and decisions that are likely to lead to strategic mistakes and failure (Baumard and Starbuck, 2005). These included attempted growth into a new domain without adequate skills or experience, projections of over-estimated demand, and inappropriately transferring an old business model to a new situation.

Section reference: Strategic mistakes and organizational failure

b. Projections of over-estimated demand

Feedback: A study of a very large European telecommunications firm identified a number of strategic choices and decisions that are likely to lead to strategic mistakes and failure (Baumard and Starbuck, 2005). These included attempted growth into a new domain without adequate skills or experience, projections of over-estimated demand, and inappropriately transferring an old business model to a new situation.

Section reference: Strategic mistakes and organizational failure

c. Inappropriate transfer of an old business model to a new one

Feedback: A study of a very large European telecommunications firm identified a number of strategic choices and decisions that are likely to lead to strategic mistakes and failure (Baumard and Starbuck, 2005). These included attempted growth into a new domain without adequate skills or experience, projections of over-estimated demand, and inappropriately transferring an old business model to a new situation.

Section reference: Strategic mistakes and organizational failure

d. The creation of a significantly differentiated offering, for which the company charges a premium.

Feedback: A study of a very large European telecommunications firm identified a number of strategic choices and decisions that are likely to lead to strategic mistakes and failure (Baumard and Starbuck, 2005). These included attempted growth into a new domain without adequate skills or experience, projections of over-estimated demand, and inappropriately transferring an old business model to a new situation.

Section reference: Strategic mistakes and organizational failure