Question 1

Using the General Electric strategic planning grid,an opportunity rated "medium" in terms of both industry attractiveness and business strengths is an opportunity that the firm should always avoid.

Accepted Answer

Yellow businesses are borderline cases, where opportunities are rated "medium" in terms of both industry attractiveness and business strengths. GE may continue to support an existing yellow business but will probably reject a proposal for a new one.

Question 2

When planning a marketing strategy,managers have control over:

Accepted Answer

Managers can't alter the variables of the market environment. However, they can select a strategy that leads the firm into a market where competition is not yet strong or where trends in the external market are likely to support market growth.

Question 3

Most industrial products tend to be near the "insensitive" end of the continuum of environmental sensitivity.

Accepted Answer

Most industrial products are near the insensitive end of the continuum of environmental sensitivity.

Question 4

The "continuum of environmental sensitivity" suggests that industrial products are more sensitive to the cultural environments in which they are placed than high-style consumer products.

Accepted Answer

The "continuum of environmental sensitivity" suggests that industrial products are more insensitive to the cultural environments in which they are placed than high-style consumer products.

Question 5

The GE "stop-light" evaluation method is a very objective approach because GE feels there are too many possible errors if it tries to use subjective criteria for judging "attractiveness" or "strength."

Accepted Answer

GE's "stop-light" evaluation method is a subjective, multiple-factor approach.

Question 6

Screening criteria should be in quantitative form-based on factors such as profit and expected sales-so that they are objective and not subject to qualitative judgments and interpretations by different managers.

Accepted Answer

The product-market screening criteria include both quantitative and qualitative components. Screening criteria summarize in one place what the firm wants to accomplish, thus, marketing decisions are not just made or accepted based on intuition and gut feel.

Question 7

In the total profit approach,management forecasts potential sales and costs during the life of the plan to estimate likely profitability.

Accepted Answer

The total profit approach can help evaluate possible plans by looking at the potential sales and costs during the life of the plan.

Question 8

Managers are now applying new screening criteria,sustainability,that reinforces the importance of meeting present needs without compromising the ability of future generations to meet their own needs.

Accepted Answer

Many organizations now screen opportunities on sustainability, the idea that it's important to meet present needs without compromising the ability of future generations to meet their own needs.

Question 9

GE's strategic planning grid considers two dimensions-industry attractiveness and business strengths-to identify opportunities that may be growth,borderline,or no growth.

Accepted Answer

General Electric's (GE) strategic planning grid forces company managers to make three-part judgments (high, medium, and low) about the business strengths and industry attractiveness of all proposed or existing product-market plans.

Question 10

The General Electric "strategic planning grid" forces company managers to make three-part judgments (high,medium,and low)about the business strengths and industry attractiveness of all proposed or existing product-market plans.

Accepted Answer

General Electric's (GE) strategic planning grid forces company managers to make three-part judgments (high, medium, and low) about the business strengths and industry attractiveness of all proposed or existing product-market plans.

Question 11

Marketing managers should remember that there are many variables in the ____________ that affect strategy planning.

Accepted Answer

Variables in the economic, technological, cultural, social, political and legal environments affect strategy planning.

Question 12

If the risks of getting into international marketing are difficult to evaluate,it may be wise to start with exporting.

Accepted Answer

If the risks of an international opportunity are hard to judge, it is wise to look first for opportunities that involve exporting.

Question 13

The General Electric "strategic planning grid" relies on subjective judgments about business strengths and industry attractiveness.

Accepted Answer

GE's evaluation method is a subjective, multiple-factor approach.

Question 14

Opportunities that fall into the red boxes of General Electric's "strategic planning grid" are growth opportunities.

Accepted Answer

Opportunities that fall into the red boxes (lower right-hand corner of the grid) suggest a no-growth policy.

Question 15

In international markets marketing managers usually have an easier time understanding the variables in the market environment.

Accepted Answer

In international markets it is often harder to fully understand the market environment variables.

Question 16

Forecasts of the probable results of implementing whole strategic plans are needed to apply quantitative screening criteria.

Accepted Answer

Forecasts of the probable results of implementing a marketing strategy to apply the quantitative part of the screening criteria is needed because only implemented plans generate sales, profits, and return on investment.

Question 17

Product-market screening criteria should be mainly quantitative in nature,because qualitative criteria are too subjective.

Accepted Answer

The product-market screening criteria include both quantitative and qualitative components.

Question 18

Sustainability,as a screening criteria,supports the idea of focusing completely on a company's present needs.

Accepted Answer

Sustainability supports the idea that it's important to meet present needs without compromising the ability of future generations to meet their own needs.

Question 19

Consumer products that are linked to cultural variables tend to be lower risk when entering international markets.

Accepted Answer