Question 1

An exit decision should be considered if the market demand, competitive intensity, or strategic fit is regarded unfavorably.

Accepted Answer

A) True 
 B)False  True

Question 2

____________ would be disciplined about minimizing the expenditures toward the brand and maximizing the short-term cash flow, while ___________ would sharply reduce long-term investment, but continue to support marketing and service operating areas.

Accepted Answer

A fast milking strategy; slow milking strategy

Question 3

Confirmation bias occurs when the objective information cast doubt on the sales projections of a business.

Accepted Answer

A) True 
 B)False  False

Question 4

Strategic brand consolidation process includes five distinct steps: identifying the relevant brand set, assessing the brands, ______________, creating a revised brand portfolio strategy and ______________.

Accepted Answer

The answer of Strategic brand consolidation process includes five distinct...

Question 5

The GE model is less complex than the BCG model.

Accepted Answer

A) True 
 B)False

Question 6

A hold strategy may prevent a firm from making investments that would help retain product relevance.

Accepted Answer

A) True 
 B)False

Question 7

Implementing an exit decision is often delayed by managers who attempt to turn around a struggling business.

Accepted Answer

A) True 
 B)False

Question 8

Centurion organized its brands into four groupings labeled blue, green, yellow and black.

Accepted Answer

A) True 
 B)False

Question 9

Business portfolio analysis provides a structured way to evaluate business units on two key dimensions: the attractiveness of the market involved and the strengths of competitor's in that market.

Accepted Answer

A) True 
 B)False

Question 10

Some of the conditions that favor a milking strategy include a price structure that is stable at a level that is profitable for efficient firms.

Accepted Answer

A) True 
 B)False

Question 11

Biases inhibiting exit decisions are ______________ and ______________.

Accepted Answer

The answer of Biases inhibiting exit decisions are ______________ and...

Question 12

Andy Grove made the decision to get out of memory by pretending he was a new CEO brought in from the outside.

Accepted Answer

A) True 
 B)False

Question 13

A hold strategy will be superior to a milk strategy when the market prospects and/or the business position is not as grim.

Accepted Answer

A) True 
 B)False

Question 14

Exit strategies should be considered in all of the following situations except:

Accepted Answer

A)   When the business position is weak.
B)   When a firm's reputation is at stake.
C)   When demand is diminishing quickly with no impending resurgence.
D)   When the strategic direction of the firm has changed.

Question 15

Motivations for exiting include avoidance of drain on profits by dog businesses in portfolio and purging businesses that do not fit the strategy of the firm.

Accepted Answer

A) True 
 B)False

Question 16

A milk or harvest strategy aims to generate cash flow by reducing investment and operating expenses to a minimum.

Accepted Answer

A) True 
 B)False

Question 17

Cash cows are units that should no longer absorb investments aimed at growing the business.

Accepted Answer

A) True 
 B)False

Exam 15: Setting Priorities for Businesses and Brandsthe Exit, Milk, and Consolidate Options

An exit decision should be considered if the market demand, competitive intensity, or strategic fit is regarded unfavorably.

__ would be disciplined about minimizing the expenditures toward the brand and maximizing the short-term cash flow, while _ would sharply reduce long-term investment, but continue to support marketing and service operating areas.

Confirmation bias occurs when the objective information cast doubt on the sales projections of a business.

Strategic brand consolidation process includes five distinct steps: identifying the relevant brand set, assessing the brands, , creating a revised brand portfolio strategy and .

The GE model is less complex than the BCG model.

A hold strategy may prevent a firm from making investments that would help retain product relevance.

Implementing an exit decision is often delayed by managers who attempt to turn around a struggling business.

Centurion organized its brands into four groupings labeled blue, green, yellow and black.

Business portfolio analysis provides a structured way to evaluate business units on two key dimensions: the attractiveness of the market involved and the strengths of competitor's in that market.

Some of the conditions that favor a milking strategy include a price structure that is stable at a level that is profitable for efficient firms.

Biases inhibiting exit decisions are and .

Andy Grove made the decision to get out of memory by pretending he was a new CEO brought in from the outside.

A hold strategy will be superior to a milk strategy when the market prospects and/or the business position is not as grim.

Exit strategies should be considered in all of the following situations except:

Motivations for exiting include avoidance of drain on profits by dog businesses in portfolio and purging businesses that do not fit the strategy of the firm.

A milk or harvest strategy aims to generate cash flow by reducing investment and operating expenses to a minimum.

Cash cows are units that should no longer absorb investments aimed at growing the business.