C2 Exam Flashcards
1) \_\_\_\_\_\_\_\_ is the process of developing and maintaining a crucial fit between the organization's goals and capabilities and its changing marketing opportunities. A) Benchmarking B) SWOT analysis C) Market segmentation D) Strategic planning E) Diversification
D) Strategic planning
+ organization’s goals
+ capabilities
+ its changing marketing opportunities.
2) Which of the following is true with regard to strategic planning?
A) At the corporate level, the company starts the strategic planning process by determining what portfolio of businesses and products is best for the company.
B) A strategic plan deals with a company’s short-term goals.
C) The focus of strategic planning is to define a game plan for long-run survival and growth.
D) The strategic plan is a statement of an organization’s purpose.
E) Strategic planning involves identifying segments of consumers with identical preferences.
C) The focus of strategic planning is to define a game plan for “long-run survival and growth.”
3) Which of the following is the first step in strategic planning?
A) setting short-term goals
B) developing the business portfolio
C) defining the organizational mission
D) formulating the key marketing strategies
E) identifying the organization’s weaknesses and the threats it faces
C) defining the organizational mission
4) Which of the following is NOT a step in the strategic planning process?
A) defining the company mission
B) setting company objectives and goals
C) designing the business portfolio
D) planning marketing and other functional strategies
E) evaluating members of the company’s value chain
E) evaluating members of the company’s value chain
strategic planning: mission -> objectives and goals -> bus portfolio -> mkt and functional strategies
5) A \_\_\_\_\_\_\_\_ documents an organization's purpose—what it wants to accomplish in the larger environment. A) vision statement (F) B) mission statement C) business portfolio D) value proposition E) product strategy
B) mission statement (accomplish in the larger environment)
6) Mission statements should ________ and be defined in terms of ________.
A) be technology oriented; meeting the self-actualization needs of customers
B) be product oriented; satisfying the esteem needs of customers
C) embody the company’s short-term plans; current opportunities
D) be market oriented; satisfying basic customer needs
E) address sales and profits; the net return on investments
D) be market oriented; satisfying basic customer needs
7) A mission statement serves as a ________.
A) statement of the organization’s net profits
B) plan for short-term sustainability
C) statement of the organization’s purpose
D) statement of the organization’s current liabilities
E) reward plan for the organization’s highly skilled employees
C) statement of the organization’s purpose
8) Which of the following is NOT a market-oriented business definition?
A) “We empower customers to realize their dreams.”
B) “We make high-quality consumer food products.”
C) “We sell success and status.”
D) “We create the Hilton experience.”
E) “We bring innovation to every home.”
B) “We make high-quality consumer food “products.”” -> Product-oriented Def
9) Companies that define their missions in terms of products or technologies are considered myopic (thiển cận) primarily because ________.
A) products and technologies result in low returns on investment
B) consumer preferences with regard to products and technology are difficult to predict
C) consumer preferences for different product categories vary from time to time
D) products and technologies eventually become outdated
E) most consumers are not comfortable using sophisticated technology during the buying process
D) products and technologies eventually become outdated
10) Mission statements should be defined in terms of ________.
A) the advantages a company’s products provide
B) satisfying basic customer needs
C) the value a company’s products provide
D) the profitability of a company’s products
E) the variety they offer to a customer
B) satisfying basic customer needs
Mission statements customer needs
11) Orion Inc. operates in many industries, including pharmaceuticals and food products. The company's goal is to create "abundant and affordable food for all and a healthy environment." This represents Orion's \_\_\_\_\_\_\_\_. A) marketing plan B) product mix C) business portfolio D) marketing mix E) mission statement
E) mission statement
12) A company's broad mission leads it to develop all of the following EXCEPT \_\_\_\_\_\_\_\_. A) budget objectives B) business objectives C) sales objectives D) marketing objectives E) customer engagement objectives
budget objectives
mission not relate to budget
13) Which of the following companies has a product-oriented business definition?
A) A luxury hotel, whose business definition is: “We sell out-of-the-world experiences to our guests.”
B) A real estate company, whose business definition is: “We sell dreams.”
C) A cosmetic company, whose business definition is: “We offer hope and self-expression.”
D) A shoe manufacturer, whose business definition is: “We manufacture affordable and long lasting shoes for all.”
E) A high-technology company, whose business definition is: “We sell inspirations.”
D) A shoe manufacturer, whose business definition is: “We manufacture affordable and long lasting shoes for all.”
product-oriented “shoes”
17) Mission statements should be ________.
A) meaningful and specific yet motivating
B) technology oriented
C) written solely for public relations purposes
D) focused on increasing sales or profits
E) strictly product oriented
A) meaningful and specific yet “motivating”
18) A company’s broad mission leads to ________.
A) increasing profits and more customers
B) increasing sales and decreasing costs
C) a higher share price
D) a hierarchy of objectives, including business objective and marketing objectives
E) increased market share and increasing profitability
D) a hierarchy of objectives, including business objective and marketing objectives
(broad mission -> objectives)
19) The purpose of strategic planning is to find ways in which your company can best use its strengths to take advantage of attractive opportunities in the environment.
T
20) A company’s mission statement provides the depth needed for all segments of the company to reach their goals.
F
21) A mission statement is a document embodying an organization’s short-term goals
F
22) A clear mission statement acts as an “invisible hand” that guides people in the organization.
T
25) “At Trader Joe’s, our mission is to provide all our customers the best food and beverage values to be found anywhere, and the information to make informed buying decisions.” This is a product-oriented business definition.
F
26) A company’s mission could appropriately be stated as “making more sales or profits.”
F
31) Which of the following is the first step of business portfolio planning?
A) shaping the future portfolio by developing strategies for growth and downsizing
B) determining which businesses should receive more, less, or no investment
C) identifying internal strengths and weaknesses
D) identifying future opportunities
E) determining short-term goals
B) determining which businesses should receive more, less, or no investment
32) The major activity in strategic planning is \_\_\_\_\_\_\_\_, whereby management evaluates the products and businesses that make up the company. A) SWOT analysis B) benchmarking C) business portfolio analysis D) breakeven analysis E) prospecting
business portfolio analysis
33) The best business portfolio is the one that ________.
A) provides the greatest opportunity for increasing profits
B) best fits the company’s strengths and weaknesses to opportunities in the environment
C) ensures that the company will realize increased share of market
D) allows the company to decrease its overall costs
E) entices customers to purchase even more products from the company
B) best fits the company’s strengths and weaknesses to opportunities in the environment
34) Which of the following best describes a strategic business unit?
A) the internal value chain of a company
B) the supply chain of a company
C) the key businesses that make up a company
D) the key channel intermediaries of a service company
E) the key competitors of a company
C) the key businesses that make up a company
strategic business unit -> make up a company
35) During portfolio analysis, a company ________ after identifying the key businesses that make up the company.
A) formulates a short-term marketing plan
B) assesses the attractiveness of its various SBUs
C) assesses its strengths and weaknesses
D) performs a SWOT analysis
E) assesses the effectiveness of its various channel intermediaries
B) assesses the “attractiveness of its various SBUs”
36) Which of the following is NOT something a company must determine when analyzing its current business portfolio?
A) which businesses should receive more investment
B) which businesses should receive less investment
C) which businesses should receive no investment
D) which businesses should be sold or closed
E) which businesses shape the future portfolio
D) which businesses should be sold or closed
37) Most standard portfolio analysis methods evaluate SBUs on the ________.
A) potential for niche or global marketing
B) degree of product differentiation
C) strength of the market or industry position
D) accessibility to rural markets
E) number of successful business acquisitions
C) strength of the market or industry position
SBU - strength
40) Which of the following is true of the BCG matrix approach?
A) It is inexpensive to implement.
B) It does not have any limitations.
C) It considers market growth rate to be a measure of market attractiveness.
D) It describes consumer motivations and needs.
E) It does not consider relative market share to be a measure of company strength in the market.
C) It considers market growth rate to be a measure of market attractiveness.
(lớn -> attract)
39) According to the Boston Consulting Group approach, \_\_\_\_\_\_\_\_ serves as a measure of company strength in the market. A) relative market share B) product development C) market diversification D) product attribute E) market segmentation
A) relative market share strength
có sức mạnh -> bully -> share
41) Within a company, who is most likely to perform strategic planning?
A) the president and vice presidents
B) the accounting and finance departments
C) the marketing and sales departments
D) cross-functional teams of divisional managers close to their markets
E) the manufacturing and production departments
D) cross-functional teams of divisional managers close to their markets
(strategic planning -> cross-functional teams)
42) The "key businesses" of Kimberley and Price consist of a division that produces and sells "breakfast cereals" and another that manufactures "gardening tools". Each of these businesses is called a \_\_\_\_\_\_\_\_. A) market segment B) strategic business unit C) question mark D) prospect E) product portfolio
B) strategic business unit (key businesses)
43) \_\_\_\_\_\_\_\_ are a type of SBU that often require heavy investments to finance their rapid growth. A) Cash cows B) Question marks C) Stars D) Dogs E) Bears
C) Stars (heavy investment)
44) \_\_\_\_\_\_\_\_ are low-growth, high-share businesses/products that need less investment to hold their market share. A) Stars B) Cash cows C) Question marks D) Dogs E) Bears
B) Cash cows
45) Which of the following is true with regard to cash cows?
A) They are high-growth, high-share businesses or products.
B) They can be used to help finance the company’s question marks and stars.
C) They require significant cash to maintain market share.
D) They are low-share businesses and products.
E) They do not promise to be large sources of cash.
B) They can be used to help finance the company’s question marks and stars.
47) The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG matrix, the pharmaceuticals division of Omni can be classified as a \_\_\_\_\_\_\_\_. A) star B) bear C) question mark D) cash cow E) dog
C) Question marks (low-share, high-growth, require a lot of cash to hold their share)
48) By harvesting its SBU, a company would most likely be ________.
A) milking the SBU’s short-term cash flow regardless of the long-term effect
B) selling the SBU or phasing it out and using the resources elsewhere
C) investing just enough to hold the SBU’s current market share
D) investing more in the business unit to build its share
E) diversifying the company’s product line
A) milking the SBU’s short-term cash flow regardless of the long-term effect
49) A company can \_\_\_\_\_\_\_\_ an SBU by selling it or phasing it out and using the resources elsewhere. A) divest (tước bỏ) B) promote C) expand D) harvest E) hold
A) divest (tước bỏ)
50) Modern strategic planning ________.
A) exclusively consists of a company’s short-term goals
B) is decentralized
C) does not involve cross-functional teams
D) does not take the overall mission of the company into consideration
E) is highly centralized
B) is decentralized (phân quyền)
51) The BCG matrix approach is problematic in that it ________.
A) focuses on planning for the future at the cost of ignoring the present
B) focuses solely on current businesses and provides little scope for future planning
C) tends to undermine (làm suy yếu dần) the importance of market growth rate as a measure of market attractiveness
D) tends to undermine the importance of relative market share as a measure of company strength in the market
E) fails to classify SBUs
B) focuses solely on “current businesses” and provides “little scope for future planning”
