Week Six

Question 1

Steps in strategic planning are

Answer 1

1) defining the company mission
2) setting company objectives and goals
3) designing the business portfolio
4) planning marketing and other functional strategies

Question 2

market-oriented mission statement

Answer 2

defines the business in terms of satisfying basic customer needs

Question 3

business objectives include

Answer 3

building profitable customer relationships, investing in research and improving profits

Question 4

marketing objectives include

Answer 4

increasing market-share, creating local partnerships, increasing promotion

Question 5

the business portfolio

Answer 5

the business portfolio is the collection of businesses and products that make up the company

Question 6

strategic business units (SBU)

Answer 6

can be a company devision, a product line within a division or a single product or brand

Question 7

to analyse current business portfolio

Answer 7

1) identify key businesses that make up the company
2) assess attractiveness of its various sbus
3) decide what support each sbu deserves

Question 8

BCG matrix

Answer 8

question mark or problem child, stars, cash cows, and dogs

Question 9

GE matrix

Answer 9

looks at market attractiveness and company strength and assesses overall attractiveness in a 3x3 matrix

Question 10

10 sources of competitive advantage

Answer 10

1) rep for quality
2) customer service / support
3) name recognition
4) retain good management and staff
5) low-cost production
6) financial resources
7) customer orientation
8) product line bredth
9) technical superiority
10) satisfied customers

Question 11

market penetration

Answer 11

present products present markets

Question 12

product development

Answer 12

new products present markets

Question 13

market development

Answer 13

present products new markets

Question 14

diversification

Answer 14

new and new

Question 15

downsizing

Answer 15

is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy

Question 16

value chain

Answer 16

includes design, produce, market, deliver, and support

Question 17

marketing mix

Answer 17

is the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market

Question 18

marketing roi

Answer 18

is the net return from a marketing investment divided by the costs of the marketing investment

Question 19

competitor anaysis involves

Answer 19

1) identifying the company’s competitors
2) assessing competitors objectives, strategies, strengths and weaknesses, and reaction patterns
3) selecting which competitors to attack or avoid

Question 20

best competitve strategies include

Answer 20

overall cost leadership, differentiation, focus, middle of the road

Question 21

companies can gain leadership positions by delivering superior value to their customers in three strategies or value disciplines

Answer 21

1) operational excellence
2) customer intimacy
3) product leadership

Question 22

market leader strategies

Answer 22

expand total demand by developing new users, new uses, and more usage of its product
protect current market, expand total demand, expand market-share