Chapter 2 ("Strategic Planning")

Question 1

target markets

Answer 1

groups of customers

Firms typically identify different target markets they want to reach when they are developing their value propositions.

Question 2

value proposition

Answer 2

A value proposition is a thirty-second “elevator speech” stating the specific benefits a product or service offering provides a buyer. It shows why the product or service is superior to competing offers.

Question 3

strategic planning

Strategic planning can occur at 3 different levels in an organization:

Answer 3

Strategic planning is a process that helps an organization allocate its resources to capitalize on opportunities in the marketplace.

Strategic planning can occur at different levels (corporate, business, and functional) in an organization. The number of levels may vary. However, if a company has multiple planning levels, the plans must be consistent, and all must help achieve the overall goals of the corporation.

Corporate Level: PepsiCo, Inc.

Business Level: PepsiCo Americas Beverages, PepsiCo Americas Foods, PepsiCo International

Functional Level: Marketing Department, Accounting Department, HR Department

Question 4

contract manufacturing

Answer 4

When companies hire manufacturers to produce their products in another country.

Question 5

strategic planning process

Answer 5

A process that helps an organization allocate its resources under different conditions to accomplish its objectives, deliver value, and be competitive in a market-driven economy.

Question 6

franchising

Answer 6

Granting an independent operator the right to use your company’s business model, techniques, and trademarks for a fee.

Question 7

export

Answer 7

Sell products to buyers in foreign markets.

Question 8

General Electric (GE) approach

Answer 8

A portfolio planning approach that examines a business’s strengths and the attractiveness of industries.

Question 9

portfolio

Answer 9

A group of business units owned by a single firm.

Question 10

joint venture

Answer 10

An entity that is created when two parties agree to share their profits, losses, and control with one another in an economic activity they jointly undertake.

Question 11

product development strategy

Answer 11

Creating new products or services for existing markets.

Question 12

corporate level plans

Answer 12

Plans developed for the corporation as a whole take place at the corporate level.

Question 13

portfolio planning approach

Answer 13

An approach to analyzing various businesses relative to one another.

Question 14

situation analysis

Answer 14

An assessment of an organization’s internal and external environments.

Question 15

harvest

Answer 15

When a firm lowers investment in a product or business.

Question 16

direct investment

Answer 16

Owning a company or facility overseas.

Question 17

green marketing

Answer 17

Marketing environmentally safe products and services in a way that is good for the environment.

Question 18

second-mover strategy

Answer 18

Corporate level strategy theorizing that closely observing the innovations of the first movers, and then improving on them can help an organization gain advantage in the marketplace.

Question 19

marketing plan

Answer 19

A document that is designed to communicate the marketing strategy for an offering. The purpose of the plan is to influence executives, suppliers, distributors, and other important stakeholders of the firm so they will invest money, time, and effort to ensure the plan is a success.

Question 20

business level plans

Answer 20

Plans developed for each strategic business unit typically have their own mission statement.

Question 21

star

Answer 21

Business or offering with high growth and a high market share.

Question 22

market penetration strategy

Answer 22

Selling more of existing products and services to existing customers.

Question 23

cash cow

Answer 23

Business or offering with a large share of a shrinking market.

Question 24

divest

Answer 24

When a firm drops or sells a product or business.

Question 25

diversification strategy

Answer 25

Offering products that are unrelated to other existing products produced by the organization.

Question 26

first-mover strategy

Answer 26

Corporate level strategy theorizing that being the first organization to offer a product in the marketplace will be the long-term market leader.

Question 27

SWOT analysis

Answer 27

An acronym for strengths, weaknesses, opportunities, and threats, the SWOT analysis is a tool that frames the situational analysis.

例）
S: Firm's Brand Name and resources
W: Low Product Awareness, Poor Facility Allocation
O: Demand for Product, Size and Market
T: Bad Economy, Competitors

Question 28

dog

Answer 28

Business or offering with low growth and a low market share.

Question 29

question marks or problem children

Answer 29

Businesses or offerings with a low share of a high-growth market.

Question 30

market development strategy

Answer 30

Selling existing products or services to new customers. Foreign markets often present opportunities for organizations to expand. Exporting, licensing, franchising, joint ventures, and direct investment are methods that companies use to enter international markets.

Question 31

strategic business unit (SBU)

Answer 31

Businesses or product lines within an organization that have their own competitors, customers, and profit centers.

Question 32

Product and Market Entry Strategies

Answer 32

Existing Markets / Existing Products = Market Penetrations
Existing Markets / New Products = Product Development
New Markets / Existing Products = Market Development
New Markets / New Products = Diversification

Question 33

The Boston Consulting Group (BCG) Matrix

Answer 33

High Market Growth / Low Market Share = Question Marks (例：ガソリンの値段が上がった時、バイクの需要が急激に高まった）

High Market Growth / High Market Share = Star (例：iPod)

Low Market Growth / Low Market Share = Dog

Low Market Growth / High Market Share = Cash Cow (例：ソニーのDVD。ゆくゆくはdigital downloadsによって置き換えられる）