Strategic Planning for Competitive Advantage

Topics: Marketing, Strategic management, Marketing plan Pages: 47 (14843 words) Published: November 16, 2014
Chapter 2—Strategic Planning for Competitive Advantage

TRUE/FALSE

1.The manufacturer of Macho brand martial arts products was implementing a strategic plan when it sponsored a local karate tournament for teenagers.

ANS:F
Such a short-range decision is typically a tactical plan or operating decision, not a strategic plan.

PTS:1OBJ:02-1TOP:AACSB Reflective Thinking
KEY:CB&E Model StrategyMSC:BLOOMS Level III Application

2.Berkshire Hathaway Inc., a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell Corporation, a manufacturer of sporting goods. Berkshire Hathaway uses a market penetration strategy.

ANS:F
Berkshire Hathaway uses a diversification strategy.
PTS:1OBJ:02-3TOP:AACSB Reflective Thinking
KEY:CB&E Model StrategyMSC:BLOOMS Level III Application

3.When the Internet auction company eBay opened a version of the company called eBay France for the French market, it was an example of market penetration.

ANS:F
Market penetration is the strategy of selling more to the existing customers. This is an example of a market development strategy, which is attracting new customers to existing products.

PTS:1OBJ:02-3TOP:AACSB Reflective Thinking
KEY:CB&E Model StrategyMSC:BLOOMS Level III Application

4.A market penetration strategy entails the creation of new products for current customers.

ANS:F
This is an example of product development strategy. A market penetration strategy in one that tries to increase market share among existing customers.

PTS:1OBJ:02-3TOP:AACSB Reflective Thinking
KEY:CB&E Model StrategyMSC:BLOOMS Level I Knowledge

5.The Home Depot’s purchase of Hughes Supply Company allows it to better meet the needs of its current business customers. This is an example of product development.

ANS:TPTS:1OBJ:02-3
TOP:AACSB Reflective ThinkingKEY:CB&E Model Strategy
MSC:BLOOMS Level III Application

6.When a florist shop begins to sell burial caskets to its customers, it is engaged in product development.

ANS:T
Product development is the offering of new products to current markets.

PTS:1OBJ:02-3TOP:AACSB Reflective Thinking
KEY:CB&E Model StrategyMSC:BLOOMS Level III Application

7.A diversification strategy entails increasing sales by introducing new products into new markets.

ANS:TPTS:1OBJ:02-3
TOP:AACSB Reflective ThinkingKEY:CB&E Model Strategy
MSC:BLOOMS Level I Knowledge

8.The portfolio matrix is a tool for allocating resources among products or strategic business units on the basis of relative market share and degree of innovation.

ANS:F
The portfolio matrix is based on relative market share and market growth rate.

PTS:1OBJ:02-3TOP:AACSB Reflective Thinking
KEY:CB&E Model StrategyMSC:BLOOMS Level I Knowledge

9.The marketing plan is a written document that acts as a guidebook of marketing activities for the marketing manager.

ANS:TPTS:1OBJ:02-3
TOP:AACSB Reflective ThinkingKEY:CB&E Model Marketing Plan MSC:BLOOMS Level I Knowledge

10.A firm’s mission statement should answer the question, “What products do we produce best?”

ANS:F
Mission statements should not focus on specific product offerings but on the market or markets served.

PTS:1OBJ:02-4TOP:AACSB Reflective Thinking
KEY:CB&E Model StrategyMSC:BLOOMS Level II Comprehension

11.A production costs analysis could be a part of a company’s SWOT analysis.

ANS:TPTS:1OBJ:02-5
TOP:AACSB Reflective ThinkingKEY:CB&E Model Strategy
MSC:BLOOMS Level IV Analysis

12.Environmental scanning entails the collection and analysis of information about factors that may affect the organization as well as the identification of market opportunities and threats.

ANS:TPTS:1OBJ:02-5
TOP:AACSB Reflective ThinkingKEY:CB&E Model Strategy
MSC:BLOOMS Level II Comprehension

13.A competitive advantage...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Strategic Planning Essay
  • strategic planning Essay
  • Strategic planning Essay
  • Essay on Strategic Planning and Strategic Intent
  • ESSAY STRATEGIC SALES PLANNING.
  • Strategic Management: Creating Competitive Advantages Essay
  • Strategic Management and Competitive Advantage Essay
  • Essay on Strategic Planning

Become a StudyMode Member

Sign Up - It's Free