Question 1

A firm's decision to identify and develop new markets for existing products is a _ strategy.

Accepted Answer

Market development is a strategy where a firm seeks to identify and develop new markets for its existing products.

Question 2

McDonalds is globally recognized as a restaurant chain offering a consistent experience and similar foods. Which of the following most likely indicates that McDonalds is following a diversification strategy?

Accepted Answer

Diversification involves entering a new market with a new product. Entering the U.S. market with a line of children's clothing represents diversification as it is a new product in a new market for McDonalds.

Question 3

A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets is called _.

Accepted Answer

Diversification is a strategy for company growth through starting up or acquiring businesses outside the company's current products and markets.

Question 4

Which of the following companies is using a divesting strategy?

Accepted Answer

Blackstone is using a divesting strategy by selling its clothing division to a competitor, which involves getting rid of a part of the company that is not performing well.

Question 5

Before being acquired by Restaurant Brands International in 2014, Tim Horton's focused on different approaches to company growth. In the Product/Market Expansion Grid Tim Horton's successfully applied three
Of the four approaches. The fourth approach, , was avoided.

Accepted Answer

Tim Horton's avoided diversification, which involves entering into new markets with new products, as it focused on expanding its existing product lines and markets.

Question 6

When a company chooses to harvest a particular strategic business unit, it increases short-term cash flow despite the long-term effect.

Accepted Answer

Harvesting a business unit involves reducing investment and operating expenses to maximize short-term cash flow, often at the expense of long-term growth and sustainability.

Question 7

Both product development strategies and diversification strategies involve .

Accepted Answer

Both strategies involve developing a new product, as product development focuses on creating new products for existing markets, while diversification involves creating new products for new markets.

Question 8

An SBU can be .

Accepted Answer

An SBU (Strategic Business Unit) can be any of the options listed: a single brand, a company division, a product line within a division, or a single product, as it represents a distinct part of a business with its own strategy and objectives.

Question 9

Lululemon Athletic Wear is a Canadian retail success. While Lululemon has implemented several of these initiatives, which of the following initiatives indicates that the company is following a market development strategy?

Accepted Answer

Market development strategy involves expanding into new geographic markets or customer segments. Introducing its clothing and retail experience in the Indian and Southeast Asian markets is an example of this strategy.

Question 10

Most people are aware that Mars Incorporated sells popular candy products under a number of brands including M&M's, Snickers, Starburst, Wrigley, the company generates higher sales in than their candy products.

Accepted Answer

Mars Incorporated generates higher sales from its pet care products and services, which include brands like Pedigree and Whiskas, than from its candy products.

Question 11

refers to reducing the business portfolio by abandoning products that no longer fit the company's overall strategy.

Accepted Answer

Downsizing involves reducing the business portfolio by eliminating products or business units that do not align with the company's strategic objectives.

Question 12

Under Armour's recent expansion into the digital personal health and fitness tracking market through acquisitions of three fitness app companies is a strategy.

Accepted Answer

Under Armour's acquisition of fitness app companies represents diversification, as it involves entering a new market segment (digital health and fitness tracking) that is different from its traditional athletic apparel and footwear business.

Question 13

Ford's performance against Toyota depends on the quality of Ford's overall value delivery network versus
Toyota's.

Accepted Answer

The performance of a company like Ford against a competitor like Toyota can be influenced by the effectiveness and efficiency of its value delivery network, which includes suppliers, distributors, and other partners that contribute to delivering value to customers.

Question 14

Starbucks is experimenting with stand-alone boutique Princi bakery stores, taking the company beyond coffee and snack shops. This is an example of _.

Accepted Answer

This is an example of diversification because Starbucks is expanding its business into a new area (bakery stores) that is different from its traditional coffee and snack shop offerings.

Question 15

Both market penetration and market development strategies primarily involve .

Accepted Answer

The answer of Both market penetration and market development strategies...

Question 16

Spin Master is a successful Canadian toy manufacturer. Which of the following indicates that the company is following a market penetration strategy?

Accepted Answer

Acquiring toy rights for a popular cartoon character to boost sales is a market penetration strategy as it aims to increase sales of existing products in existing markets.

Question 17

Under Armour increasing its advertising spending and offering an ever-increasing range of styles and colours in its original apparel line is an example of a _ strategy.

Accepted Answer

The answer of Under Armour increasing its advertising spending and...

Question 18

Greyzone, a company that creates customized household furniture, is based in Terrania and is looking to enter other countries as well. The company identifies the country of Nyevka as a good option because the entry barriers for new companies are low in Nyevka. Which statement indicates that Greyzone follows a diversification strategy?

Accepted Answer

Diversification involves entering into new markets or industries, often by developing new products or services. By beginning to manufacture and supply office equipment, Greyzone is entering a new market segment, which indicates a diversification strategy.

Question 19

A strategy for company growth that involves increasing sales to current market segments without changing the product is known as .

Accepted Answer

Market penetration involves increasing sales to current market segments without changing the product.

Question 20

Market penetration means making fewer sales to current customers without changing original products.

Accepted Answer

Market penetration involves increasing sales of existing products to current customers or markets, not making fewer sales.

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