chapter 6
Generally, _____________ addresses poor product-company fit and/or poor company-market fit without the capital investment and risks inherent with acquisitions. e.) Equity investment f.) Internal development g.) Strategic alliances h.) insourcing
g
Companies implementing me-too strategies enter mature markets with limited product lines..
true
Conglomeration by a direct entry is the growth option where the level of risk is clearly the greatest.
true
Disadvantages of internal development include access to resources, expertise, and time
true
Entry into another English-speaking country for a domestically based firm in the English-speaking world would be considered a market extension.
true
For the segmenter strategy, technological expertise is no longer the driving force; rather, marketing research to understand customers and identify potential market segments is the major skill required.
true
Market penetration is the growth approach in which the firm focuses on existing products and markets.
true
Negative synergy occurs when pursuing a new opportunity would cause revenues and profits from existing products to be reduced.
true
Whereas the pioneer firm places extensive effort in producing new-to-the-world products and services via high investment in research, follow-the-leader firms focus attention on development.
true
According to the text, which of the following subconstructs of fit should the firm assess through market research and market testing? a.) Product-market fit b.) Product-company fit c.) Company-market fit d.) Company-culture fit
a
Contracting with a non-U.S.-based firm to handle some business processes is called ___________. a.) offshoring b.) insourcing c.) outsourcing d.) divestment
a
Even when monopoly positions cannot be achieved, firms that successfully pioneer new markets may enjoy _______________ . These are a set of benefits that may accrue simply because the pioneer was the first entrant. a.) first-mover advantages b.) follow-the-leader advantages c.) segmenter advantage d.) me-too advantages
a
For a domestically based firm in the English-speaking world, entry into a non-English-speaking country would be considered a _______________. a.) market expansion b.) product expansion c.) product extension d.) market extension
a
In which of the following growth approaches does the firm focus on existing products and markets? a.) Market penetration b.) Product growth c.) Market growth d.) Product and market diversification
a
In which of the following strategies are new products and services typically introduced as a result of consistent and extensive R&D spending? a.) Pioneer b.) Follow-the-leader c.) Segmenter d.) Me-too
a
The _______________ option focuses on growth that is constant with the firm's core competencies and has the least knowledge risk. a.) market penetration b.) product growth c.) market growth d.) product and market diversification
a
Which of the following methods of achieving growth has resource access and timing as major disadvantages? a.) Internal development b.) Acquisition c.) Strategic alliances d.) Licensing and technology purchase
a
Which of the following methods of achieving growth is perhaps the most widespread among major corporations? a.) Internal development b.) Acquisition c.) Strategic alliances d.) Equity investment
a
_______________ addresses the question of whether the product is appropriate for the market. a.) Product-market fit b.) Product-company fit c.) Company-market fit d.) Company-culture fit
a
_______________ takes place when a firm engages other firms to undertake activities it previously conducted in-house. a.) Outsourcing b.) Insourcing c.) Re-engineering d.) Divestment
a
According to the text, firms with high levels of technical expertise would be better off pursuing a _______________ strategy. a.) market-growth b.) product-growth c.) customer-growth d.) cultural-growth
b
According to the text, speed is the major advantage for which method of achieving growth? a.) Internal development b.) Acquisition c.) Strategic alliances d.) Licensing and technology purchase
b
Incorporating activities previously conducted by customers is referred to as _______________. a.) forward horizontal integration b.) forward vertical integration c.) backward horizontal integration d.) backward vertical integration
b
Positive synergy reflects the notion that _______________. a.) 2 + 2 = 3 b.) 2 + 2 = 5 c.) 5 - 3 = 2 d.) 5 - 3 = 3
b
The skills and resources required to engage in continual product upgrading and marketing the product successfully are referred to as _______________. a.) Product-market fit b.) Product-company fit c.) Company-market fit d.) Company-culture fit
b
Whereas _______________ place extensive effort in producing new-to-the-world products and services via high investment in research, _______________ focus attention on development. a.) follow-the-leader firms; pioneer firms b.) pioneer firms; follow-the-leader firms c.) segmenter firms; pioneer firms d.) follow-the-leader firms; segmenter firms
b
_______________ is concerned with taking a purchased activity and conducting it in-house. a.) Outsourcing b.) Insourcing c.) Re-engineering d.) Divestment
b
_______________ occurs when pursuing a new opportunity would cause revenues and profits from existing products to be reduced. a.) Positive synergy b.) Negative synergy c.) Theoretical synergy d.) Hypothetical synergy
b
All things being equal, _______________ is more distant from the firm's technological base than _______________ and is therefore more risky. a.) market extension; market expansion b.) product extension; product expansion c.) product expansion; product extension d.) market extension; product expansion
c
For a bank skilled in making corporate loans, lock-box services would be considered a _______________. a.) market expansion b.) product expansion c.) product extension d.) market extension
c
For which of the following strategies is technological expertise no longer the driving force; rather, marketing research to understand customers and identify potential markets are the major skills required? a.) Pioneer strategy b.) Follow-the-leader strategy c.) Segmenter strategy d.) Innovator strategy
c
Growth path is specifically concerned with the trade-off between expected financial return and risk, and a firm must consider all of the following factors EXCEPT: a.) The revenue and profit potential of its opportunities b.) Its core competencies c.) All selections are critical factors to consider d.) Its assessment of risk
c
Many Chinese firms pursue or have pursued which of the following market-entry approaches? a.) Follow-the-leader b.) Segmenter c.) Me-too d.) Pioneer
c
Ski resorts that expand their range of offerings beyond skiing to include ice-skating, downhill sledding, dog-sledding, snowmobiling, and tubing are practicing _______________. a.) market expansion b.) product expansion c.) product extension d.) market extension
c
Which of the following best describes the type of integration that results from a firm incorporating activities previously conducted by suppliers? a.) Forward horizontal integration b.) Forward vertical integration c.) Backward vertical integration d.) Backward leapfrog integration
c
Which of the following strategies can be extremely effective when the market is fairly well developed? a.) Pioneer strategy b.) Follow-the-leader strategy c.) Segmenter strategy d.) Innovator strategy
c
Which of the following subconstructs of fit would be apply in the following example? "A firm is skilled at manufacturing, promoting, and distributing a product in its home market and ascertains through market research that a foreign market seems attractive. However, the problem is that the firm has no presence in, and little knowledge of, the foreign market." a.) Product-market fit b.) Product-company fit c.) Company-market fit d.) Company-political fit
c
______________ firms enter mature markets with limited product lines. a.) Follow-the-leader b.) Segmenter c.) Me-too d.) Pioneer
c
Disadvantages of internal development include all of the following EXCEPT: a.) Resource access b.) Expertise c.) Time d.) Cost
d
Entry into another English-speaking country for a domestically based firm in the English-speaking world would be considered a _______________. a.) market expansion b.) product expansion c.) product extension d.) market extension
d
In which of the following growth options is the level of risk clearly the greatest? a.) Market penetration b.) Product extension c.) Market expansion d.) Conglomeration
d
Options for implementing a growth strategy include all of the following EXCEPT: a.) Internal development b.) Insourcing c.) Equity investment d.) Divestment
d
To create shareholder value, _______________ require a low-cost position. a.) pioneer strategies b.) follow-the-leader strategies c.) segmenter strategies d.) me-too strategies
d
Which of the following companies possesses the R&D skills and internal processes to consistently develop new products and services and has the marketing capabilities to open up new markets? a.) Follow-the-leader b.) Segmenter c.) Me-too d.) Pioneer
d
Which of the following is NOT a dimension focused on the internal resources when a company is articulating its mission? a.) Core ingredient b.) Technology c.) Product or service d.) Customer needs
d
Which of the following is NOT a subconstruct that is embraced by the concept of fit? a.) Product-market fit b.) Product-company fit c.) Company-market fit d.) Company-culture fit
d
Which of the following is NOT mentioned in the text as one of the four approaches for growth that are embedded in the growth path matrix? a.) Market penetration b.) Product growth c.) Market growth d.) Cultural growth
d
_______________ is the name for firms that blaze trails and create and innovate new markets by consistent and extensive R&D spending. a.) Follow-the-leader b.) Segmenter c.) Me-too d.) Pioneer
d
According to the text, speed is the major advantage of the internal development method of achieving growth.
false
All things being equal, product extension is more distant from the firm's technological base than product expansion and is therefore more risky.
false
FedEx is an example of a company that today commonly pioneers new products
false
In the segmenter strategy, new products and services are typically introduced as a result of consistent and extensive R&D spending.
false
Incorporating activities previously conducted by customers is referred to as backward vertical integration.
false
Positive synergy reflects the notion that 2 + 2 = 3.
false
Product and market diversification focuses on growth that is consistent with the firm's core competencies and has the least knowledge risk.
false
