Question 1

An executive summary, situation analysis, objectives, strategies, tactics, financial schedules, timetables, and evaluation procedures would all be part of a(n):

Accepted Answer

These components are typical of an annual marketing plan, which outlines a company's marketing strategy for the year, including goals, strategies, and how success will be measured.

Question 2

The exact content of an organization's annual marketing plan is determined by:

Accepted Answer

The content of an organization's annual marketing plan is typically tailored to its specific goals, resources, and market environment, rather than being determined by external guidelines, government manuals, industry leaders, or stakeholders alone.

Question 3

To be identified as a strategic business unit (SBU), a division or unit of a larger corporation that operates as a separate entity, should:

Accepted Answer

Strategic Business Units (SBUs) do not need to be monopolies, deviate from the organizational mission, share executives with other units, or lack an executive group with profit responsibility. Instead, they operate as separate entities within a larger corporation, often with their own vision aligned with the corporate mission, dedicated leadership, and profit accountability.

Question 4

To be identified as a strategic business unit (SBU), a division or unit of a larger corporation that operates as a separate entity, should:

Accepted Answer

A strategic business unit (SBU) is defined as a separately identifiable business, which means it has its own distinct mission, business plan, and competitors, and operates somewhat independently from the parent corporation.

Question 5

Nike is offering 82 new products for the committed golfer. Nike's expansion into golf products will be done through, Nike Golf, a separate company division with its own unique logo. Nike Golf is an example of a:

Accepted Answer

Nike Golf, being a separate company division with its own unique logo and focused on a specific market segment (golf products), exemplifies a strategic business unit (SBU). SBUs operate within larger organizations but focus on specific business areas or markets, allowing for targeted strategies and management.

Question 6

Central Jensen Group sells equipment to laundries. It operates Senking in Germany, which produces washroom automation equipment. It operates Jensen Switzerland and Metric Sweden, which manufacture garment-handling equipment. Flatwork systems are manufactured at Jensen Germany. Each of these operations is a separately identifiable business and is an example of a:

Accepted Answer

Each operation is a distinct entity within the larger organization, focusing on specific products and markets, which aligns with the definition of a strategic business unit (SBU). SBUs have their own strategies and objectives that align with the overall corporate strategy.

Question 7

Theme parks, movies, retail stores, and an Internet portal are some of the divisions of the Walt Disney Co. Each division is operated as a separately identifiable entity with its own distinct mission, competitors, and managers. Each of these divisions could be classified as a:

Accepted Answer

These divisions of the Walt Disney Co. are examples of strategic business units (SBUs). SBUs are parts of an organization that operate within their own distinct marketplaces, with their own specific set of competitors and a clear, defined strategy. They have their own missions and objectives, separate from those of the parent company, and are managed independently.

Question 8

Bayer is the name of a German chemical and pharmaceutical company. It has a pharmaceutical division, an agrochemical division, and a diagnostic division among others. Each of these divisions operates as a separate business entity and would be categorized as a:

Accepted Answer

Each division of Bayer operates as a separate entity with its own strategy and objectives, fitting the definition of a strategic business unit (SBU).

Question 9

With the product-market growth strategy of _____, a company tries to sell more of its present product to its present market.

Accepted Answer

Market penetration strategy involves a company focusing on selling its existing products into existing markets with the aim to increase its market share. This strategy does not involve diversifying the product line or entering new markets but rather increasing sales of current products within the markets the company already serves.

Question 10

By offering cash bonuses, prizes, and free vacations to travelers, Holiday Inn, Ramada Inn, and Hilton tried to increase sales in their present markets. Which of the following strategic alternatives did the hotel chains use?

Accepted Answer

Market penetration strategy involves efforts to increase sales of existing products or services in current markets through tactics such as advertising, price reductions, or increased distribution. The actions of Holiday Inn, Ramada Inn, and Hilton—offering cash bonuses, prizes, and free vacations—are aimed at boosting sales in their existing markets without introducing new products or entering new markets, which aligns with the definition of market penetration.

Question 11

Tropicana increased its production of single-serving containers of fruit-based juices and introduced vending machines to make it more readily available to people who ordinarily bought Tropicana juice when they were thirsty. Which of the following strategic alternatives did Tropicana use?

Accepted Answer

Tropicana used market penetration by increasing production and distribution to make its existing product more available to its current market.

Question 12

Nike is offering 82 new products for the committed golfer. Nike's expansion into golf products will be done through, Nike Golf, a separate company division with its own unique logo. Nike will implement a strategy of:

Accepted Answer

The answer of Nike is offering 82 new products for...

Question 13

Sky Is the Ltd. is an Israeli-based company that manufactures and distributes a wafer-thin cracker called Bible Bread. In 1995 it launched Galilee Splendor Inc. in the United States to act as a distributor of the bread in this country. This is an example of a _____ strategy.

Accepted Answer

This is an example of a market development strategy, where a company enters a new market with an existing product. Sky Is the Ltd. is expanding its market for Bible Bread by entering the United States through Galilee Splendor Inc.

Question 14

The National Football League (NFL) has expanded into various cities in Western Europe including Barcelona and London. Now Europeans can watch football just as it's played in the U.S. According to the product-market growth matrix, the NFL is using a strategy of:

Accepted Answer

The NFL is using a market development strategy by expanding its existing product (American football games) into new geographic areas (Western Europe). This involves entering new markets with existing products to attract new customers.

Question 15

A manufacturer and installer of bullet-proof glass had a decline in business due to a slowing economy. As a result, the company began offering to make and install bullet-proof glass to protect expensive and sometimes irreplaceable stained glass windows in churches and other public buildings. The company used a _____ strategy.

Accepted Answer

The company is using a market development strategy by targeting a new market segment (churches and other public buildings) with their existing product (bullet-proof glass).

Question 16

Brose, a German manufacturer, is the world's biggest producer of the components that sit inside car doors and do the job of adjusting windows, locks, wing mirrors, and hi-fi systems. Brose sells primarily to European car manufacturers. Its biggest competitor is the U.S.-owned ArvinMeritor. Brose plans to build three plants in the U.S. by 2007 and expand its U.S. market share to 25 percent. This is an example of a _____ strategy.

Accepted Answer

Market development strategy involves expanding into new markets. Brose is doing this by building plants in the U.S. to increase its market share there.

Question 17

The product-market growth strategy of _____ calls for a company to develop new products to sell to its existing markets.

Accepted Answer

Product development strategy involves creating new products or modifying existing ones to offer to the current market. This approach aims to attract existing customers with new or improved products, thereby increasing sales without the need to enter new markets.

Question 18

Haggar Apparel, one of the U.S.'s largest producers of ready-made custom-fit suits, has responded to the dress-down trend at work by adding jeans and a "relaxed, yet tailored" line of suits called City Casuals. According to the product-market growth matrix, Haggar Apparel is using a strategy of:

Accepted Answer

Haggar Apparel is introducing new products (jeans and a new line of suits) to its existing market, which aligns with the product development strategy in the product-market growth matrix.

Question 19

Red Kap Industries is a manufacturer of corporate uniforms such as those worn by FedEx drivers and other delivery personnel. The addition of a pleated casual slacks line made of 100 percent wrinkle-free cotton to be sold as an alternative to the currently used line of slacks, is an example of a:

Accepted Answer

Adding a new product line (pleated casual slacks) to the existing product offerings (corporate uniforms) represents product development, as it involves creating new products for the existing market.

Question 20

Adecco Career Service, based in Switzerland, is the world's largest temporary-job company. It recently acquired Resume.com, a provider of resumes and job-seeking services over the Internet to expand its line of career services. This acquisition was needed to implement Adecco's _____ strategy.

Accepted Answer

The acquisition of Resume.com by Adecco Career Service to expand its line of career services is an example of a product development strategy. This strategy involves offering new products or services to the company's existing market to grow its business.

Quiz 20: Strategic Marketing Planning

An executive summary, situation analysis, objectives, strategies, tactics, financial schedules, timetables, and evaluation procedures would all be part of a(n) :