Chapter 8 Marketing

____ strategy refers to a mid-range strategy that attempts to move into new market areas at a deliberate and carefully planned pace.

Analyzer

Which of these is concerned with the changes in the sales volume of a product during its existence?

Product life cycle approach

According to the Miles and Snow model of business strategy, which of these strategies is the most appropriate for use in an unstable environment?

Prospector

Which of the following is an example of one of the Miles and Snow typology classifications for business strategies?

Prospector

____ is the proportion of the market controlled by the product.

Relative market share

Using the Boston Consulting Group matrix, SBUs are classified on the basis of

market share and market growth rate.

When implementing a differentiation strategy it is important to have

marketing emphasize high-value distinction. control of funds without discouraging creativity. manufacturing adjust inventory. a culture focused on customer needs. All of these choices

Porsche Automobil Holding and Volkswagen own each other's stock. They plan to integrate the companies in 2011. This diversification strategy is ____.

merger

Apple has a large share of the growing tablet market. Apple is an example of a

star.

MNCs can exploit advantages over domestic businesses. Which of the following in NOT an advantage?

Multiple accounting systems

One action that an organization may take with respect to an SBU classified as a dog is to sell it. It seems odd that one organization would want to buy another's dog. Which of the following might explain such a purchase?

Possible synergistic effects on the buying organization

Franke, a Swiss manufacturer of sink and facet systems, sold accessories through retail stores and then added Internet sales. Franke used

forward vertical integration.

One characteristic of an SBU classified as a star is

a large amount of short-run cash support.

GE noticed that financial institutions had large profit margins. When GE entered the industry, its SBU was

a question mark.

Forms of diversification include

acquisitions. vertical integration. mergers. the internal development of new products. All of these choices

AOL eliminated fees to some subscribers to try to attract more users. AOL was using a(n) ____ strategy.

defender

Extra funds should be channeled to the ____, which is a product with a high share of a fast-growing market.

star

Facebook has high market share and high market growth rate, which would make it a ____.

star

Assuming an SBU retained its share of the market, how would it be classified if it were a star and its market subsequently became a low-growth market?

A cash cow

The aircraft engine division of General Electric, which competes with Pratt & Whitney, has its own mission and a strategy that often differs considerably from other parts of the corporation. What is a division such as this called?

A strategic business unit

____ strategies in the Miles and Snow model represent a middle-of-the-road approach to business strategy.

Analyzer

When the iPhone 5 was anticipated for release, the iPhone 4 was expected to drop in price from $250 to $50. The four was at which stage of the product life cycle?

Decline

Which of the following is NOT an international business strategy?

Intercontinental

____ are corporate-level strategies for becoming a diversified firm.

Internal developments of new products Backward vertical integrations Mergers Acquisitions All of these choices

Which of the following is NOT an advantage inherent in related diversification?

Scope

Which of the following is NOT an example of a basis of relatedness for implementing related diversification?

Similar human resources

United Continental Holdings includes Continental Airlines, United Airline, Chelsea Food Services, and United Cruises, because it was thought that they can accomplish more joined together than they can operating as separate units. Which advantage of related diversification does this best represent?

Synergy

____ exists when the economic value together is greater than the value of the parts.

Synergy

____ is a useful framework for managers to use as they plot business strategy over time.

The product life cycle

Ford once supplied every part to its automobiles, except the rubber (it even tried to grow the trees, to no avail). This is an example of

backward vertical integration.

Hewlett Packard has a large share of the slowly growing PC market. This is an example of a

cash cow

An organization implementing a prospector strategy needs to

create new opportunity. remain flexible. respond quickly. decentralize decision making. All of these choices

Mrs. Fields was the first high quality, high priced cookie. Its success attracted competition. Mrs. Field's slowed growth to focus on making current operations more profitable. This is an example of a ____ strategy.

defender

The ____ strategy is the most conservative approach in the Miles and Snow classifications of business strategies.

defender

Warsteiner beer has the slogan "Life is too short, to drink cheap beer." This slogan supports a ____ strategy.

differentiation

The production company that provided the television show Who Wants to Marry My Dad? to be shown on night-time television to compete in a market begun by Joe Millionaire had to cut cash flow when the demand for the show did not live up to expectations. According to the BCG matrix, the TV show Who Wants to Marry My Dad? was an example of a

dog

Reality shows became prevalent on television after CBS introduced the first Survivor series. That type of television show is now in the maturity stage of its product life cycle. This means

product differentiation concerns are still important.

Blue Origins is a privately funded company started by Amazon CEO Jeff Bezos. Blue Origins plans to offer space tourism. It uses a(n) ____ strategy.

prospector

Adolph Coors Company heavily developed Zima brand beer that was targeted to Generation Xers, but Zima gained only a small share of a rapidly growing market. According to the BCG matrix, Zima is an example of a

question mark

Companies should invest carefully and monitor closely a ____, which is a product that has a small share of a growing market.

question mark

Kmart has struggled for years competing with Wal-Mart and Target. It tried celebrity labels, but that did not help. It cannot lower prices as low as Wal-Mart, because it does not have the distribution expertise. This is an example of a(n) ____ strategy.

reactor

Dell was once a dominant brand in the PC market, commanding high prices. Now Dell is sold in Wal-Mart. This strategy is called

reactor.

Reckitt & Colman, Inc. manufactures Spray 'n Wash laundry stain remover, Resolve fabric refresher, and Woolite fabric wash. This is an example of ____ diversification.

related

When Turner Broadcasting purchased a movie studio with its vault of old movies, it was an example of a(n) ____ diversification strategy. Turner was able to get a source for movies to show on its various cable television stations.

related

The product life cycle

shows how sales volume changes over time for products. can help managers recognize that strategies need to evolve over time. begins when a new product or technology is first introduced. generally consists of four stages. All of these choices

For years, the Tabasco Company used a(n) ____ strategy and manufactured only its famous hot sauce.

single-product

An example of ____ would be when credit card and mortgage divisions of banks often get their customers from the bank's commercial loan customers.

synergy in related diversification

The GE business screen is an expansion of the ideas from

the BCG matrix.

Clorox Corporation owns Kingsford charcoal, Matchlight charcoal lighter, Prime Choice steak sauce, and a restaurant chain. This is an example of ____ diversification.

unrelated

Which of the strategy types in the Miles and Snow model avoids long-term commitment to any single technology, is highly decentralized, and has a propensity to take risk?

Prospector