Question 1

What are stars according to the BCG growth-share matrix?

Accepted Answer

The answer of What are stars according to the BCG...

Question 2

Fun-Spot Fun Park represents a high-growth, high-share business. According to the BCG matrix, it can be classified as a ________.
A) star
B) question mark
C) bear
D) cat
E) dog

Accepted Answer

Fun-Spot Fun Park is considered a high-growth, high-share business, indicating that it has a relatively large market share in a growing industry. This fits the characteristics of a star in the BCG matrix, which represents a business unit with a high market share in a growing industry.

Question 3

Cleats, Unlimited developed a new style of soccer shoe. This is an example of ________.
A) product development
B) market development
C) market penetration
D) diversification
E) product differentiation

Accepted Answer

Product development refers to the creation of a new or improved product that is intended to provide added value to customers or to increase the firm's market share. In this case, Cleats, Unlimited has developed a new style of soccer shoe, which fits the definition of product development.

Question 4

What type of strategy should a company use to manage its cash cows?

Accepted Answer

The answer of What type of strategy should a company...

Question 5

Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. This is an example of ________.
A) niche marketing
B) local marketing
C) diversification
D) product adaptation
E) downsizing

Accepted Answer

Diversification refers to the expansion of a business into new markets or products that are not related to its existing business. In this case, Elmo Corp. is diversifying by establishing a new business in a different industry (office furniture exporting) from its existing business (personal computers and printers).

Question 6

Ron and Gail, owners of Fun-Spot, strive to provide new offerings and entertainment options for their visitors. This type of strategy can be best described as ________.
A) market penetration
B) market development
C) product development
D) niche marketing
E) diversification

Accepted Answer

Product development involves creating new products or modifying existing ones in order to better meet the needs of the target market. In this scenario, Ron and Gail are creating new entertainment options for visitors, which falls under product development.

Question 7

Refer to the scenario below to answer the following question(s).
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theater.
"My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and the arbors. "There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful. There is nothing else like Fun-Spot Fun Park in the area. We were just lucky." "I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time for variety."
Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like the park's motto at the entrance reads, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
-Fun-Spot's mission is ________.
A) product oriented
B) technology oriented
C) market oriented
D) design oriented
E) narrowly focused on profits

Accepted Answer

The scenario states that the owners of Fun-Spot identified an untapped market in weekenders coming to the lakes in their rural area and have grown the amusement park into a popular family attraction with something for everyone. The owners prioritize making every visitor happy and have a motto of "We're here to make you happy." This focus on meeting the needs and wants of their customers indicates that the mission of Fun-Spot is market-oriented.

Question 8

Company growth through diversification involves offering modified or new products to the company's current markets.

Accepted Answer

The answer of Company growth through diversification involves offering modified...

Question 9

What is a strategic business unit (SBU)?

Accepted Answer

The answer of What is a strategic business unit (SBU)?...

Question 10

On the BCG matrix, "question marks" are high-growth, high-share businesses or products.

Accepted Answer

"Question marks" are actually low-share, high-growth businesses or products on the BCG matrix. High-growth, high-share businesses or products are known as "stars."

Question 11

The major activity in strategic planning is business portfolio analysis, whereby management evaluates the products and businesses that make up the company.

Accepted Answer

Business portfolio analysis is a critical component of strategic planning, where management evaluates the products and businesses that make up the company. Based on this analysis, they decide which products to invest in, which to maintain, and which to divest.

Question 12

Companies may want to downsize their business portfolios for all but which of the following reasons?
A) The firm may have grown too fast.
B) The firm may have entered areas where it lacks experience.
C) The customers may have purchased all they need.
D) The market environment might change.
E) The products might simply age.

Accepted Answer

Companies generally downsize their business portfolios for reasons such as rapid growth, lack of experience in certain areas, changes in the market environment, and aging products. However, customers purchasing all they need is not a reason for downsizing. In fact, it may indicate the need for the company to expand into new areas or develop new products to meet changing customer needs.

Question 13

The major activity in strategic planning is product innovation.

Accepted Answer

While product innovation may be a part of strategic planning, it is not the major activity. Strategic planning involves setting goals, analyzing the market and competition, developing strategies, and making decisions on resource allocation and implementation.

Question 14

An American airline company started a grocery chain in Australia. This is an example of product development.

Accepted Answer

This is an example of diversification, which is a different strategy from product development.

Question 15

Define market penetration.

Accepted Answer

The answer of Define market penetration....

Question 16

Market development involves company growth by identifying and developing new market segments for current company products.

Accepted Answer

Market development involves expanding and finding new markets for current products.

Question 17

Ron and Gail plan to lower Fun-Spot's prices in an effort to encourage customers to stay longer, visit more often, and spend more money during each visit. What type of strategy are Ron and Gail planning?
A) market penetration
B) market development
C) product development
D) product adaptation
E) diversification

Accepted Answer

Market penetration involves lowering prices to encourage customers to visit more frequently and spend more money during each visit. This is precisely what Ron and Gail are trying to do, making it the best fit for their strategy. Option B) market development involves expanding into new markets, which is not mentioned in the scenario. Option C) product development involves creating new products or improving existing ones, which is also not mentioned. Option D) product adaptation involves modifying existing products to better fit a specific market, which is also not mentioned. Finally, option E) diversification involves expanding into unrelated businesses or industries, which is not relevant to the scenario.

Question 18

Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________.
A) benchmarking
B) diversification
C) mass customization
D) product development
E) downsizing

Accepted Answer

This exemplifies product development as Sunny Brews introduced a new product, Eva, which became immensely popular.

Question 19

A women's apparel manufacturer in California recently acquired a Houston-based company that manufactures office furniture. This is an example of ________.
A) product development
B) market development
C) market penetration
D) diversification
E) product differentiation

Accepted Answer

This is an example of diversification, which is the strategy of entering a new market or industry that is different from the core business. In this case, the women's apparel manufacturer is expanding into the office furniture industry, which is a different market than clothing.

Question 20

Market penetration involves offering modified or new products to current markets.

Accepted Answer

The answer of Market penetration involves offering modified or new...

Quiz 2: Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

What are stars according to the BCG growth-share matrix?

Fun-Spot Fun Park represents a high-growth, high-share business. According to the BCG matrix, it can be classified as a ________.

Cleats, Unlimited developed a new style of soccer shoe. This is an example of ________.

What type of strategy should a company use to manage its cash cows?

Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. This is an example of ________.

Ron and Gail, owners of Fun-Spot, strive to provide new offerings and entertainment options for their visitors. This type of strategy can be best described as ________.

Company growth through diversification involves offering modified or new products to the company's current markets.

What is a strategic business unit (SBU)?

On the BCG matrix, "question marks" are high-growth, high-share businesses or products.

The major activity in strategic planning is business portfolio analysis, whereby management evaluates the products and businesses that make up the company.

Companies may want to downsize their business portfolios for all but which of the following reasons?

The major activity in strategic planning is product innovation.

An American airline company started a grocery chain in Australia. This is an example of product development.

Define market penetration.

Market development involves company growth by identifying and developing new market segments for current company products.

Ron and Gail plan to lower Fun-Spot's prices in an effort to encourage customers to stay longer, visit more often, and spend more money during each visit. What type of strategy are Ron and Gail planning?

Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________.

A women's apparel manufacturer in California recently acquired a Houston-based company that manufactures office furniture. This is an example of ________.

Market penetration involves offering modified or new products to current markets.