Quiz chap 2 - Corporate Strategies and their Marketing Implications Flashcards
- (p. 34) What is “not true” of the criteria for defining a corporate mission?
A. Basic customer needs tend to change over time, but products endure
B. Many firms specify their domain in physical terms
C. Statements focusing only on basic customer needs can be too broad to provide clear guidance
D. Statements that specify domains in physical terms can lead to slow reactions to customer demand changes
A. Basic customer needs tend to change over time, but products endure
defining a corporate mission
- domain in physical terms
- basic customer needs - can be too broad
- physical terms can lead to slow reactions to customer demand changes
- (p. 34) The most useful mission statements focus on being
A. Functional and broad
B. Physical and specific
C. Functional and specific
D. Physical and broad
C. Functional and specific (mission statements)
- (p. 38) What is the expansion for the acronym SMART used in specifying corporate objectives?
A. Specific, Measurable, Attainable, Relevant, and Time-bound
B. Structured, Manageable, Acceptable, Related, and Theoretical
C. Standardized, Manageable, Accountable, Relevant, and Targeted
D. Structured, Marketable, Accountable, Reusable, and Targeted
A. “Specific”, “Measurable”, Attainable, Relevant, and Time-bound
- (p. 39) The profitability criterion is measured in terms of which of the following indexes?
A. Percentage change in sales
B. Return on net assets
C. Price/earnings ratio
D. Percentage cost savings from new processes
B. Return on net assets (profitability criterion)
- (p. 38) In expressing corporate objectives aimed at enhancing shareholder value, a firm combining its debt and market value of its stock, and then subtracting the capital invested in the company, is using the _____ approach.
Để thể hiện các mục tiêu của công ty nhằm nâng cao giá trị của cổ đông, một công ty kết hợp nợ và giá trị thị trường của cổ phiếu, sau đó trừ đi vốn đầu tư vào công ty, đang sử dụng phương pháp _____.
A. Return on capital
B. Economies of scale
C. Economic value added
D. Cash conversion cycle
C. Economic value added (debt, market value of its stock, subtracting the capital invested)
- (p. 38) Standard accounting measures such as earnings per share or return on investment are
Các thước đo kế toán tiêu chuẩn như thu nhập trên mỗi cổ phiếu hoặc lợi tức đầu tư là
A. Not always reliably linked to the true value of a company’s stock
B. Objectives that always provide adequate guidance for a firm’s lower-level managers
C. Fool-proof tools available to evaluate the future impact of strategic actions on shareholders
D. Objectives that consistently set benchmarks for accurately evaluating performance
A. Not always reliably linked to the true value of a company’s stock
- (p. 40) A survey on customer feedback for an auto dealer company found that about 75 percent of customers’ satisfaction scores were accounted for “order processing, delivery, and post-sale services”. This finding substantiates which of the following statements?
A. Customer satisfaction increases due to the product-oriented approach
B. Spending more on emphasizing product features creates a sustainable competitive advantage
C. Customer satisfaction is influenced by factors other than the product itself
D. Pricing is based on production and distribution costs
C. Customer satisfaction is influenced by factors other than the product itself
- (p. 42) A company trying to increase its market share for its current products is most likely to follow which of the following strategies?
A. Diversification
B. Market penetration
C. Market development
D. Product development
B. Market “penetration” (increase its market share for its current products)
- (p. 41) Amazon.com pursued a combination of actions such as making service improvements, cutting costs as well as forming alliances with Web portals to expand its share of Web shoppers, even though the expense of such activities postponed the firm’s ability to become profitable. This is an example of expansion by
A. Diversifying
B. Selling existing products to new segments
C. Developing new products for current customers
D. Increasing market penetration of current product
D. Increasing market penetration of current product
expand its share of Web shoppers
- (p. 42) Stepan Co. successfully introduced detergents for washing clothes, dishes, and carpets. Each detergent capitalized on the image of baking soda as an effective deodorizer and on the high level of recognition of the Stepan Co. brand. This example illustrates the use of a
A. Market penetration strategy
B. Diversification strategy
C. Product development strategy
D. Market development strategy
C. Product development strategy (capitalized on the image of baking soda as an effective deodorizer and on the high level of recognition of the Stepan Co. brand)
- (p. 43) Theaters, orchestras, and other performing arts organizations often reach audiences outside major metropolitan areas by promoting matinee performances with lower prices and free public transportation to attract senior citizens and students. Identify the strategy being employed in this case.
A. Expansion by diversifying
B. Expansion by selling existing products to new segments
C. Expansion by developing new products for current customers
D. Expansion by increasing penetration of current product-markets
B. Expansion by selling existing products to new segments (reach audiences outside major metropolitan areas)
- (p. 43) A manufacturer is moving downstream in terms of product flow by launching a chain of retail outlets. Which diversification strategy is being used by the company?
A. Forward vertical integration
B. Related diversification
C. Backward integration
D. Conglomerate diversification
A. Forward vertical integration (moving downstream in terms of product flow)
Forward vertical integration is a type of business strategy that involves moving through the production cycle and giving a company more control over its distribution.
- (p. 44) Faced with a decline in its current business, a generic drug manufacturer is planning a foray into design, and manufacture of re-locatable modular structures. Which diversification strategy is being employed by the company?
A. Related diversification
B. Backward integration
C. Forward vertical integration
D. Unrelated diversification
D. “Unrelated” diversification (planning a foray - sự thâm nhập)
Unrelated Diversification —Diversifying into “new industries”, such as Amazon entering the grocery store business with its purchase of Whole Foods.
- (p. 46) Which of the following is a limitation of the growth-share matrix?
A. Since the matrix uses multiple variables as a basis for categorizing a firm’s business, it is complex to understand
B. Outcomes of this analysis are highly sensitive to variations in how growth and share are measured
C. It is unable to analyze the impact of investing resources in different businesses on the firm’s future earnings
D. The model fails to consider that firms can generate cash from businesses with strong competitive positions in mature markets
B. Outcomes of this analysis are highly sensitive to variations in how growth and share are measured (limitation of the growth-share matrix)
(Kết quả của phân tích này rất nhạy cảm với các biến thể về cách đo lường mức tăng trưởng và tỷ trọng)
- (p. 46) Cash cows are
A. Businesses with a high relative share of low-growth markets
B. Low-share businesses in low-growth markets
C. The market leaders in a high-growth industry
D. Businesses in high-growth industries with low relative market shares
A. Businesses with a high relative share of low-growth markets (Cash cows -> high share - low growth)
Resource allocation and strategy implications
- Question marks—businesses in high-growth industries with low relative market shares
- Stars—market leader in a high-growth industry
- Cash cows—businesses with a high relative share of low-growth markets
- Dogs—low-share businesses in low-growth markets
