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

An opportunity rated "medium" in terms of both industry attractiveness and business strengths falls in the "selective" quadrant of the grid, which means the firm should carefully consider and evaluate these opportunities to determine whether to pursue them. The firm may need to invest in improving its business strengths to take advantage of these opportunities or consider whether the industry attractiveness is worth pursuing despite having only medium business strengths. It is not an opportunity that the firm should always avoid.

Question 2

Most changes in the cultural and social environment come slowly.

Accepted Answer

Changes in culture and society usually take time to manifest and may not occur overnight.

Question 3

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

Accepted Answer

The General Electric "strategic planning grid" relies on subjective judgments about the business strengths and industry attractiveness. It involves analyzing a company's product line and market position based on two factors: business strength and industry attractiveness. Both factors involve subjective judgment and analysis.

Question 4

Changes in the cultural and social environment tend to come about quickly.

Accepted Answer

Changes in the cultural and social environment usually occur gradually over time, as they involve shifts in attitudes, behaviors, and norms within a society, which typically take generations to significantly alter.

Question 5

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

Accepted Answer

This is correct. GE's strategic planning grid considers industry attractiveness and market growth to identify growth opportunities.

Question 6

When evaluating opportunities, quantitative screening criteria help a manager decide what kind of opportunities to pursue.

Accepted Answer

Quantitative screening criteria provide measurable and objective criteria, which can aid in the decision-making process for pursuing opportunities.

Question 7

Managers are now applying a 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

The statement is true. Many managers are now prioritizing sustainable practices in order to ensure a better future for upcoming generations.

Question 8

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

Accepted Answer

Forecasts of probable results are important in applying quantitative screening criteria because it allows for a more accurate assessment of the potential outcomes of a strategic plan.

Question 9

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 involves forecasting sales and costs over the entire plan period to estimate the overall profitability of the plan.

Question 10

A strategic business unit (SBU) within a larger firm is usually treated as a separate profit center.

Accepted Answer

A strategic business unit is usually treated as a separate entity within a larger firm, with its own set of objectives, strategies, and resources. It is often evaluated based on its profitability, which makes it a separate profit center from other SBUs or the overall company.

Question 11

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

The General Electric "strategic planning grid" does require managers to make three-part judgments about business strengths and industry attractiveness for product-market plans.

Question 12

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

Screening criteria can include both quantitative factors (like profit and expected sales) and qualitative factors (such as brand alignment or strategic fit) to ensure a comprehensive evaluation of opportunities. Relying solely on quantitative criteria might overlook important qualitative aspects that could impact the success of a project or decision.

Question 13

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

Accepted Answer

The GE "stop-light" evaluation method, while aiming to simplify the evaluation process, still incorporates subjective judgments in assessing market attractiveness and business strength, as these assessments often involve qualitative factors and managerial judgment.

Question 14

Opportunities which fall into the red boxes in the General Electric "strategic planning grid" are growth opportunities.

Accepted Answer

Opportunities which fall into the red boxes in the General Electric "strategic planning grid" are considered to be low growth opportunities. The growth opportunities are usually found in the green or yellow boxes.

Question 15

The cultural and social environment refers to where people live and their income.

Accepted Answer

The cultural and social environment refers to the values, beliefs, norms, customs, and traditions of a society, as well as its social structures and institutions such as family, education, religion, and government. Income is a component of the economic environment.

Question 16

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

Accepted Answer

Product-market screening criteria should include both quantitative and qualitative criteria. Quantitative criteria provide measurable data on market size, growth, and profitability, while qualitative criteria consider factors such as consumer preferences, cultural considerations, and competitive environment, which can vary based on subjective judgments. A balanced approach that incorporates both types of criteria is recommended for effective product-market screening.

Question 17

Because the cultural and social environment tends to change slowly, firms should try to identify and work with cultural attitudes rather than trying to encourage big changes in the short run.

Accepted Answer

This statement suggests that firms should take a long-term approach to cultural and social changes and work with existing attitudes rather than trying to force quick and drastic changes.

Question 18

The profit potentials of alternative strategic plans can be evaluated at the same time only if the plans are very similar.

Accepted Answer

The profit potentials of alternative strategic plans can be evaluated even if the plans are not very similar. In fact, the purpose of evaluating multiple plans is to determine which one has the highest profit potential, regardless of how similar or different they are.

Question 19

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

Accepted Answer

Sustainability as a screening criteria focuses on the company's ability to meet its present needs while also ensuring that future generations will have the resources to meet their own needs. Therefore, it supports the idea of balancing present and future needs rather than focusing solely on present needs.

Question 20

Women's changing role has created opportunities for marketing but also complications.

Accepted Answer

As women's roles in society have changed, new opportunities have arisen for marketing to target these shifting demographics. However, there are also complications, such as the need for sensitive and inclusive messaging that avoids stereotypes and respects diverse perspectives.

Quiz 3: Evaluating Opportunities in the Changing Marketing Environment