Reference no: EM131139654

Multiple Choice Questions

1In the first half the 20th century, Ford Motor Company owned rubber plantations in Brazil to supply itself with raw materials for tire making. At some point, Ford began to buy all tires from outside vendors, and put more energy and focus on making the vehicles themselves. This is an example of .
a. the value chain
b. outsourcing (moderate)
c. fulfillment management
d. portfolio balancing
e. inbound logistics

2.A university with growing budget concerns decided to lay off all groundskeepers and hire the work out to a large, local landscaping firm. That firm hired most of the laid off workers. Most campus visitors and students were never aware of the change. This is an example of .
a. inbound logistics
b. the value chain
c. outsourcing (moderate)
d. open markets
e. portfolio management

3.Bernardo Sampson has a restaurant in northeastern China that makes the best Chinese dumplings, according to his well-traveled customers. According to Bernardo, the key is controlling the dumpling filling preparation process and making his own dumpling
Wrapper from an old family recipe. Other inputs to the business, such as
Kitchen equipment, and in some ways, employees, are less important to creating the best dumplings. The dumpling filling preparation and homemade dumpling
Wrapper could be considered Bernardo's . A.outsourcing genius
B.less critical ources
c.holistic marketing effort
d.core competency (moderate)
e.outbound logistics

4. Which of the following is NOT a characteristic of a core competency?
a. It has applications in a wide variety of markets.
b. It is a source of competitive advantage.
c.It makes a significant contribution to perceived customer benefits.
d.It is difficult for competitors to imitate.
e.It can easily be outsourced. (easy)

5 According to Figure 2.3
Company Marketing System in the text, "Factors Influencing Company Marketing Strategy," the center of the all marketing activity should be .
a. publics
b. suppliers
c. stakeholders
d. target customers (moderate)
e. the marketing control system

6 Strategic planning goes on at all of the following organizational levels, EXCEPT:
a.corporate level.
b.retail level. (moderate)
c.division level.
d.business unit level.
e.product level.

7 Blind Bill makes custom window treatments and sells exclusively to commercial homebuilders. CEO William Learned III often follows site finish managers around onsite to see how the customers view the products and to strengthen the partnership he feels he has with them.
Learned's goal is to improve the company's offerings. In the holistic marketing framework, this type of activity would be called .
a.core competency strengthening
b.value exploration
c.value creation (difficult)
d.value fulfillment
e.value delivery

8 The late business guru Peter Drucker asked all of the following questions about defining an organization's mission, EXCEPT:
a.What should the business be?
b.What will the business be?
c.What is the business?
d.Who is the stomer?
e.What has the business been? (moderate)

9 A good mission statement can provide all of the following to employees, EXCEPT: a.a shared sense of purpose.
b.a shared sense of company profits. (moderate)
c.a shared sense of direction.
d.a guide that helps geographically distant employees work independently and collectively. e.a shared sense of opportunity.

10.Good mission statements can define the company's major competitive spheres. The vertical sphere includes .
a.the range of products and applications the company will supply
b.the type of market or customers the company will serve
c.the number of channel levels from raw material to final product (difficult)
d.the range of regions or countries in which a company operates
e.the range of core competencies the company will master and leverage

11 Which of the following is NOT normally a part of the Strategic Planning Process? a.Corporate planning. b.Business unit planning. c.Division planning.
d.Retail planning. (moderate)
e.Product planning.

12.What is the proper order for the Strategic Control Process?
a.measure results € diagnose results € take corrective action (moderate)
b.diagnose results € measure results € take corrective action c.organize results € implement results d.corporate panning € division planning € business planning € retail planning e.planning € implementing € controlling

13.Blind Bill makes custom window treatments and sells exclusively to commercial homebuilders. Which of the following is NOT true of Blind Bill?
a.Homebuilders are its customer group. b.Its market segment is well defined. c.Window coverage is its customer need.
d.It limits its sales to metal or vinyl miniblinds. (easy)
e.The various window treatment products are its technology.

14. According to Levitt, market definitions that are business-oriented rather than product-oriented are superior. Such definitions include each of the following, EXCEPT:
a.customer needs.
b.geographical constraints. (moderate)
c.customer groups.
d.technology.
e.relevant target markets.

15.Carmaker Toyota has the Scion division that is aimed at providing entry-priced vehicles to new members of the Toyota "family." Scion has independent budgeting, management direction, and profit/loss responsibility within the larger company. Scion is .
a.only sold on the west coast
b.only one market segment for Toyota, because the Camry is so popular
c.a strategic business unit (moderate)
d.a competitor for Lexus vehicles
e.horizontally integrated with the parent company

16.Perhaps the least intuitive part of assessing growth opportunities for the company is . a.planning new businesses
b.downsizing and/or terminating older businesses (moderate)
c.deciding whether to integrate by buying a supplier or a customer
d.choosing an intensive growth strategy
e.employing a market penetration approach

17.Attempting to gain market share with current products in current markets is called .
a.forward integration
b.horizontal integration
c.concentric diversification
d.market development
e.market penetration (moderate)

18.Russ Clark, a NAPA auto parts dealer, bought out a competitor's store. This is an example of.
a.market penetration
b.backward integration
c.horizontal diversification
d.conglomerate diversification
e.horizontal integration (moderate)

19.Many years ago, French utilities management company Vivendi decided to buy a portfolio of entertainment businesses that included theme parks and rights to a music catalog. The purpose of the acquisition was to grow company revenues and profits. This was an example of . a.integrative diversification
b.horizontal integrative growth
c.conglomerate diversification (difficult)
d.market development
e.concentric diversification

20.Tired of high prices and poor service, and convinced she can do better, funeral home owner Macy Mbacke-Abdullah decides to purchase the wholesaler that she has been buying caskets from. This is an example of .
a.backward integration (moderate)
b.forward integration
c.diversified integration
d.horizontal integration
e.concentric integration

21.A company's consists of its structures, policies, and corporate culture. a.headquarters
b.organization (moderate)
c.sales position
d.industry
e. scenario

22.has been defined as the shared experiences, stories, beliefs, and norms that characterize an organization.
a.Corporate structure
b.Corporate history
c.Corporate strategy
d.Corporate culture (moderate)
e.Corporate organization

23.Which of the following is NOT considered to be a part of an organization's culture?

a.Experiences.
b.Stories.
c.Beliefs.
d.Salaries. (easy)
e. orms.

24.Which of the following is NOT one of Hamel's recommendations for crafting corporate strategy?

a.Management should encourage fresh ideas.
b.Employees with youthful perspectives should participate.
c.Those who are new to the industry should be asked to contribute.
d.The company should not forget to include ideas from those who do not work close to headquarters.
e.Senior management should make and hand down strategy. (moderate)

25.Which of the following would NOT be considered a part of scenario analysis for General Motors?

a.The company adopts the most probably scenario and watches for signs that confirm it.
b.The CEO asks for plausible representations of the company's future to be considered.
c.Company analysts present last quarter's earnings for the board. (difficult)
D.Managers considers how they will deal with a declaration of bankruptcy by a major supplier. e.Unit chiefs map out strategies in case a strike disrupts production during upcoming contract negotiations with labor.

26.Which of the following is in the correct order, as a part of the Business Unit Strategic-Planning Process?

a.mission € SWOT € strategy formulation € implementation (moderate)
b.external analysis € internal analysis € program formulation € mission statement
c.program formulation € strategy formulation € goal formulation
d.program formulation € strategy formulation € feedback € control
e.mission € SWOT € program formulation € strategy formulation

27.SWOT refers to .

a.semper wit omnicus terapis
b.internal and external environmental analysis (moderate)
c.strategy and goal formulation d.
the control and feedback loop in the strategic planning process e.implementing strategy across the organization

28.SWOT refers to.

a.semper wit omnicus terapis
b.strategy with operations talent
c.strategic watching of technology
d.strengths, weaknesses, opportunities, threats (easy)
e.strategy formulation, willingness to negotiate, operational excellence, temperament suitable to succeed

29.Marketing opportunity analysis (MOA) involves asking each of the following questions,

EXCEPT:
a.Does the company have access to the resources needed to deliver customer benefits?
b.Can the benefits involved in the opportunity be articulated to the target customer?
c.Can the company deliver the benefits at least as well as competitors? (difficult)
d.Will the financial rate of return meet or exceed the company's threshold for investment?
e.Can the target market(s) be located and reached with cost-effective media and trade channels?

30.A(n) is a challenge posed by an unfavorable external trend or development that would lead, in the absence of defensive marketing action, to lower sales or profit.

a.environmental threat (moderate)
b.SWOT team
c.outside sales investment
d.marketing opportunity
e.organizational weakness

31.Which of the following is NOT part of effective goals?

a.Goals must be consistent.
b.Goals must be realistic.
c.Goals must be arranged hierarchically, from most to least important.
d.Goals must be available to all organizational stakeholders. (difficult)
e.Goals must be stated quantitatively whenever possible.

32.Apple Computer designs its computers and other technological products, such as the popular iPod so that they stand out in the marketplace from equally-effective, but more boring-looking competitors. This is an example of using the strategy, as proposed by Porter.

a.cost leadership
b.differentiation (moderate)
c.horizontal integration
d.focus
e.all-in-one

33.Costco has higher sales per square foot than powerful rival Sam's Club (a Wal-Mart company). Costco have achieved this through a deep understanding of its highly targeted customer group. This is an example of using Porter's strategy.

a.cost leadership
b. differentiation
c.horizontal integration
d.focus (moderate)
e.price and performance

34.According to McKinsey & Company, successful strategy involves seven "S" elements. Which of the following is included among the "hardware" needed to successfully implement strategy?

a. Style. b.Staff.
c.Systems. (moderate)
d.Shared values.
ESkills.