Question 1

The defender strategy is most useful:

Accepted Answer

A) for business units with a profitable share of one or more major segments in a relatively mature and stable industry 
B) for business units that try to avoid being left behind in newly developing application segments within the market 
C) for well-developed units that are still experiencing some growth and change as a consequence of evolving customer needs 
D) for unstable units due to fewer competitors and their relative market shares that shift rapidly as new products are introduced 
A) for business units with a profitable share of one or more major segments in a relatively mature and stable industry 
B) for business units that try to avoid being left behind in newly developing application segments within the market 
C) for well-developed units that are still experiencing some growth and change as a consequence of evolving customer needs 
D) for unstable units due to fewer competitors and their relative market shares that shift rapidly as new products are introduced A

Question 2

Which business strategy is followed by a business that attempts to maintain a strong position in its core product market but also seeks to expand into new-usually closely related-product markets?

Accepted Answer

A) prospector strategy 
B) analyser strategy 
C) low-cost defender strategy 
D) reactor strategy 
A) prospector strategy 
B) analyser strategy 
C) low-cost defender strategy 
D) reactor strategy B

Question 3

A strategic issue for SBUs is how their strategy influences the amount of resources committed to marketing and ultimately the budget available.

Accepted Answer

A) True 
 B)False  True

Question 4

42BELOW-a wheat vodka made by a small distillery in New Zealand-has captured a share of the prestige segment of the market, especially hotels such as the Ritz in London and El Bulli in Spain.Identify the strategy used by the firm.

Accepted Answer

A) prospector strategy 
B) differentiated defender strategy 
C) low-cost defender strategy 
D) reactor strategy 
A) prospector strategy 
B) differentiated defender strategy 
C) low-cost defender strategy 
D) reactor strategy

Question 5

Emerson Electric formed an operating group of several otherwise autonomous business units that make different types of electrical motors and tools.By sharing production facilities, marketing activities and a common sales force, the group was able to reduce the costs of both per-unit production and marketing.Emerson Electric is trying to:

Accepted Answer

A) gain operating synergies through sharing resources 
B) preserve its position in established product markets 
C) generate excess cash to support its product and market development efforts 
D) devote a proportion of resources to the development of new product markets 
A) gain operating synergies through sharing resources 
B) preserve its position in established product markets 
C) generate excess cash to support its product and market development efforts 
D) devote a proportion of resources to the development of new product markets

Question 6

A key strategic characteristic of Huawei is that:

Accepted Answer

A) around 46% of its employees are engaged in research and development 
B) it out-sources research and development 
C) it tends to be a follower, hence does not need much research and development 
D) little public information is known about the amount of research and development it conducts 
A) around 46% of its employees are engaged in research and development 
B) it out-sources research and development 
C) it tends to be a follower, hence does not need much research and development 
D) little public information is known about the amount of research and development it conducts

Question 7

Firms pursuing a reactor strategy usually can still be successful and achieve competitive advantage in the short term.

Accepted Answer

A) True 
 B)False

Question 8

A business pursuing a prospector strategy:

Accepted Answer

A) concentrates on maintaining its positions in established product markets while paying less attention to new product development 
B) focuses on growth through the development of new products and markets 
C) attempts to maintain a strong position in its core product markets but also seeks to expand into new product markets 
D) does not have a clearly defined strategy 
A) concentrates on maintaining its positions in established product markets while paying less attention to new product development 
B) focuses on growth through the development of new products and markets 
C) attempts to maintain a strong position in its core product markets but also seeks to expand into new product markets 
D) does not have a clearly defined strategy

Question 9

Considering scope, these businesses usually operate in broad and rapidly changing domains where neither the technology nor customer segments are well established.

Accepted Answer

A) prospector 
B) differentiated defender 
C) low-cost defender 
D) analyser 
A) prospector 
B) differentiated defender 
C) low-cost defender 
D) analyser

Question 10

What are the characteristics of strategic business units? Identify the dimensions that define the scope and mission of individual SBUs in a firm.

Accepted Answer

Ideally, SBUs have the following charact

Question 11

Which of the following are most likely to be involved in a strategy of high forward vertical integration with regards to their distribution policies?

Accepted Answer

A) differentiated defenders 
B) diversified prospectors 
C) customer-oriented analysers 
D) All of the given answers are correct. 
A) differentiated defenders 
B) diversified prospectors 
C) customer-oriented analysers 
D) All of the given answers are correct.

Question 12

Some businesses that are technological leaders in their industries may divest or license individual product-market entries as they mature rather than defend them in the face of increasing competition and eroding margins.

Accepted Answer

A) True 
 B)False

Question 13

Strategic business units:

Accepted Answer

A) are primarily alliances with other competitive firms aimed at new markets 
B) are components of a firm engaged in multiple industries or businesses 
C) adapt the same growth objectives and competitive strategies as other SBUs 
D) are business units that always focus on competing within their industry 
A) are primarily alliances with other competitive firms aimed at new markets 
B) are components of a firm engaged in multiple industries or businesses 
C) adapt the same growth objectives and competitive strategies as other SBUs 
D) are business units that always focus on competing within their industry

Question 14

Explain the appropriate conditions for a prospector strategy.

Accepted Answer

A prospector strategy is particularly we

Question 15

Michael Porter describes firms that lack a distinctive strategy as being 'stuck on the outside'.

Accepted Answer

A) True 
 B)False

Question 16

The strategic decision to reposition Emirates as a global carrier is regarded as a threat to existing global carriers because:

Accepted Answer

A)  air travellers can now by-pass traditional airline hubs such as London-Heathrow, Paris-CDG and Frankfurt on their way between Europe and North America. 
B)  Emirates flies to every international airport in the world. 
C)  Emirates will now have a monopoly on global aviation. 
D)  Emirates provides better in-flight entertainment than competitors. 
A)  air travellers can now by-pass traditional airline hubs such as London-Heathrow, Paris-CDG and Frankfurt on their way between Europe and North America. 
B)  Emirates flies to every international airport in the world. 
C)  Emirates will now have a monopoly on global aviation. 
D)  Emirates provides better in-flight entertainment than competitors.

Question 17

The Miles and Snow combined typology of business-level competitive strategies is universal in that it can be applied to various types of firms, be they small or large firms; services only firms or firms that compete in global markets.

Accepted Answer

A) True 
 B)False

Question 18

3M consumer product group introduced Scotch-Brite Never Rust soap pads made from recycled plastic beverage bottles.Its objective was to capture a major share of the soap pad market and maximise Never Rust's volume growth.The firm's top managers approved a major investment in a new plant and a substantial introductory advertising budget.At the same time, the consumer group maintained high profitability goals for its other established products to provide the cash required for Never Rust's introduction and preserve the group's overall profit level.Identify the business strategy employed here.

Accepted Answer

A) A firm breaking down its corporate objectives into subobjectives for each SBU. 
B) A firm's subobjectives are consistent across the various SBUs. 
C) A firm's subobjectives are used only for the existing product market within the unit. 
D) A firm using value-based planning as a tool for evaluating alternative resource allocations. 
A) A firm breaking down its corporate objectives into subobjectives for each SBU. 
B) A firm's subobjectives are consistent across the various SBUs. 
C) A firm's subobjectives are used only for the existing product market within the unit. 
D) A firm using value-based planning as a tool for evaluating alternative resource allocations.

Question 19

Which of the following observations is not true of services?

Accepted Answer

A) They can be thought of as intangibles. 
B) Intangibles can rarely be experienced in advance of the sale. 
C) They can be tested even before purchase. 
D) Almost all businesses are engaged in service to some extent. 
A) They can be thought of as intangibles. 
B) Intangibles can rarely be experienced in advance of the sale. 
C) They can be tested even before purchase. 
D) Almost all businesses are engaged in service to some extent.

Question 20

Identify the correct statement concerning the distribution policies.

Accepted Answer

A) Prospector's need for motivation of distribution channel members is accomplished through tight control of business-owned channels. 
B) Maintaining tight control over the behaviour of channel members is an appropriate policy for prospectors who rely on customer service. 
C) Defenders are likely to devote a larger percentage of sales to trade promotions than the prospector businesses. 
D) Defenders rely on trade promotion tools and other incentives to induce support from their independent channel members. 
A) Prospector's need for motivation of distribution channel members is accomplished through tight control of business-owned channels. 
B) Maintaining tight control over the behaviour of channel members is an appropriate policy for prospectors who rely on customer service. 
C) Defenders are likely to devote a larger percentage of sales to trade promotions than the prospector businesses. 
D) Defenders rely on trade promotion tools and other incentives to induce support from their independent channel members.

The defender strategy is most useful:

Which business strategy is followed by a business that attempts to maintain a strong position in its core product market but also seeks to expand into new-usually closely related-product markets?

A strategic issue for SBUs is how their strategy influences the amount of resources committed to marketing and ultimately the budget available.

42BELOW-a wheat vodka made by a small distillery in New Zealand-has captured a share of the prestige segment of the market, especially hotels such as the Ritz in London and El Bulli in Spain.Identify the strategy used by the firm.

A key strategic characteristic of Huawei is that:

Firms pursuing a reactor strategy usually can still be successful and achieve competitive advantage in the short term.

A business pursuing a prospector strategy:

Considering scope, these businesses usually operate in broad and rapidly changing domains where neither the technology nor customer segments are well established.

What are the characteristics of strategic business units? Identify the dimensions that define the scope and mission of individual SBUs in a firm.

Which of the following are most likely to be involved in a strategy of high forward vertical integration with regards to their distribution policies?

Some businesses that are technological leaders in their industries may divest or license individual product-market entries as they mature rather than defend them in the face of increasing competition and eroding margins.

Strategic business units:

Explain the appropriate conditions for a prospector strategy.

Michael Porter describes firms that lack a distinctive strategy as being 'stuck on the outside'.

The strategic decision to reposition Emirates as a global carrier is regarded as a threat to existing global carriers because:

The Miles and Snow combined typology of business-level competitive strategies is universal in that it can be applied to various types of firms, be they small or large firms; services only firms or firms that compete in global markets.

Which of the following observations is not true of services?

Identify the correct statement concerning the distribution policies.

Market-Oriented Perspectives Underlie Successful Corporate, Business and Marketing Strategies

Corporate Strategy Decisions and Their Marketing Implications

Understanding Market Opportunities

Measuring Market Opportunities: Forecasting and Market Knowledge

Targeting Attractive Market Segments

Differentiation and Brand Positioning

Marketing Strategies for New Market Entries

Strategies for Growth Markets

Strategies for Mature and Declining Markets

Marketing Strategies for the Digital Economy

Organising and Planning for Effective Implementation

Measuring and Delivering Marketing Performance

Filters

Exam 3: Business Strategies and Their Marketing Implications

The defender strategy is most useful:

Which business strategy is followed by a business that attempts to maintain a strong position in its core product market but also seeks to expand into new-usually closely related-product markets?

A strategic issue for SBUs is how their strategy influences the amount of resources committed to marketing and ultimately the budget available.

42BELOW-a wheat vodka made by a small distillery in New Zealand-has captured a share of the prestige segment of the market, especially hotels such as the Ritz in London and El Bulli in Spain.Identify the strategy used by the firm.

A key strategic characteristic of Huawei is that:

Firms pursuing a reactor strategy usually can still be successful and achieve competitive advantage in the short term.

A business pursuing a prospector strategy:

Considering scope, these businesses usually operate in broad and rapidly changing domains where neither the technology nor customer segments are well established.

What are the characteristics of strategic business units? Identify the dimensions that define the scope and mission of individual SBUs in a firm.

Which of the following are most likely to be involved in a strategy of high forward vertical integration with regards to their distribution policies?

Some businesses that are technological leaders in their industries may divest or license individual product-market entries as they mature rather than defend them in the face of increasing competition and eroding margins.

Strategic business units:

Explain the appropriate conditions for a prospector strategy.

Michael Porter describes firms that lack a distinctive strategy as being 'stuck on the outside'.

The strategic decision to reposition Emirates as a global carrier is regarded as a threat to existing global carriers because:

The Miles and Snow combined typology of business-level competitive strategies is universal in that it can be applied to various types of firms, be they small or large firms; services only firms or firms that compete in global markets.

Which of the following observations is not true of services?

Identify the correct statement concerning the distribution policies.

Market-Oriented Perspectives Underlie Successful Corporate, Business and Marketing Strategies

Corporate Strategy Decisions and Their Marketing Implications

Understanding Market Opportunities

Measuring Market Opportunities: Forecasting and Market Knowledge

Targeting Attractive Market Segments

Differentiation and Brand Positioning

Marketing Strategies for New Market Entries

Strategies for Growth Markets

Strategies for Mature and Declining Markets

Marketing Strategies for the Digital Economy

Organising and Planning for Effective Implementation

Measuring and Delivering Marketing Performance

Filters