Type:
Test Bank
Resource:
Strategic Market Management
Edition:
European Edition
Author(s):
David A. Aaker Damien McLoughlin
TEST BANK for Strategic Market Management: European Edition David A. Aaker and Damien McLoughlin ESSAY QUESTIONS 1.
What is the objective of external analysis? How would you distinguish between an effective and an ineffective external analysis? What would you say would be the most useful way to conduct an external analysis? Why?
2.
Describe and give examples of a well-developed business strategy including the four characteristics.
3.
Discuss the advantages of a customizing rather than a standardizing marketing program in the context of a global strategy. When would customizing make sense?
4.
Consider the implementation problems of merging Aldi and Harrods. What synergy would you expect? How could you make sure that it materialized?
5.
Describe scenario analysis using one of the cases discussed in the course as a vehicle to illustrate. What implementation problems would you expect if scenario analysis were to be adopted at Dyson or a rapidly growing biotechnology firm?
6.
American business has been accused of being short-sighted, looking at short term financial performance instead of taking a longer term view. Are European firms similarly shortsighted? What can a manager do to make sure that he or she is managing for the long term? How would you go about advising a nationally focused food producer to generate indicators of long-term success? Be specific.
7.
What are assumptions underlying the growth-share matrix? When are these assumptions likely to hold? What do you see as the appropriate role of the growth-share matrix?
8.
Discuss the considerations involved in making the decision to expand or broaden the product line.
9.
Describe the distinctions between strategic vision, strategic stubbornness, and strategic intent.
10.
What are the six phases of hostility? How can you reduce the chances that hostility will hit your market? How do you compete in a hostile market?
11.
Describe and illustrate the following terms: -Scenario analysis -Strategic uncertainties -Synergy -Strategic opportunism
© 2005 John Wiley & Sons
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-Strategic drift -Key success factors -Experience curve 12.
Discuss Market Analysis. In your discussion include the following: the objectives of market analysis, the elements of market analysis and tools to make market analysis more effective. Use information from the course including articles, cases, and textbook material to support your answer.
13.
Discuss Competitor Analysis. In your discussion include the following: the objectives of competitor analysis; what are the benefits of conducting a competitor analysis; what are the elements of competitor analysis. You should use information from the course including articles, cases, and textbook material to support your answer.
14.
Discuss Environmental Analysis. In your discussion include the following: the objectives of environmental analysis; the dimensions of environmental analysis; and how to deal with strategic uncertainty. Use information from the course including articles, cases, and textbook material to support your answer.
15.
Discuss External Analysis. In your discussion include the following: the objectives of external analysis; the benefits of conducting an external analysis; and the elements of external analysis. Use information from the course including articles, cases, and textbook material to support your answer.
16.
Discuss Internal Analysis. In your discussion include the following: the objectives of internal analysis; the benefits of conducting an internal analysis; and the elements of internal analysis. Use information from the course including articles, cases, and textbook material to support your answer.
17.
Discuss the concept of customer value proposition and give examples.
18.
What value does strategic positioning play in developing a firm’s marketing strategy?
19.
You have been given the task to evaluate a market opportunity for a firm. Give specific examples of the dimensions you would use to determine the attractiveness of a given market.
20.
What role does innovation have in strategy making? Give examples of firms who have a history of doing well with innovation and discuss the impact that has had on them.
OBJECTIVE QUESTIONS
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Note – These objective questions cover the material from the book. In general, a false answer is markedly at odds with material in the book. However, it may not be at odds with other written material. Therefore, it is important to position these questions as a test of a student’s competence with the book material. Chapter 1 – Business Strategy: The Concept and Trends in Its Management 1.1 A business is generally an organizational unit that has a distinct business strategy and a manager with sales and profit responsibility. Answer: True. See page 4 for discussion on the definition of a business. 1.2 Synergy occurs when two businesses can reduce costs by sharing some asset such as a sales force or logistics system. Answer: True. See page 8 for a discussion on the definition of synergy. 1.3 A strategy only can involve one strategic option – otherwise chaos will occur. Answer: False. Most successful strategies involve more than one strategic option – for example, a customer value proposition that involves innovation and brand equity such as Nokia. 1.4 A strategic market management system will have more value for an organization that is not engaged in complex markets with multiple channels and regional variation in channels and products. Answer: False. A strategic market management system is designed to help a company (complex or not) to deal with the rapid changes that can occur in a firm’s external environment. See page 12 for a discussion on strategic market management systems. 1.5 The elements of strategy can be capsulated into four core elements--the product-market investment decision, functional area strategies, the customer value proposition, and the sustainable competitive advantage. Answer: False See page 5 for a discussion the four elements which are: 1) the productmarket investment strategy 2) the customer value proposition, 3) assets and competencies, and 4) assets and competencies. So while a sustainable competitive advantage is the goal of a business strategy it is not one of the elements that make up a good business strategy. 1.6 A strategic competency is what a business unit does exceptionally well, such a manufacturing, promotion, distribution, etc. which has strategic importance to the business. Answer: True. This is the definition of a strategic competency. See page 8.
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1.7 Despite the costs and problems, strategic marketing management has the potential to do all except one of the following: (a) Precipitate the consideration of strategic choices. (b) Guarantee the success of the firm. (c) Force a long-range view. (d) Make visible the resource allocation decision. (e) Provide methods to aid in strategic analysis and decision-making. Answer: B. There is nothing that will guarantee the success of a business. In fact, it is interesting to discuss that a strategy is evaluated after implementation; that is when it is known whether a strategy is successful or not. See page 14 for a discussion on the value of strategic market management. 1.8 The four elements of a business strategy for a firm are the product-market investment decision, the functional strategies and program, the customer value proposition, and the __________ and _________. Answer: assets and competencies. See pages 5-6 for discussion on the elements of a business strategy. 1.9 The scope of a business is defined by the products it offers and chooses not to offer, by the markets it does and does not seek to serve, by the competitors it chooses to compete with or to avoid, and by its level of vertical integration. Answer: True. This is the definition of a business scope. See page 5 for a discussion on business scope. 1.10 The need for strategic analysis and decision making always occurs right at the close of the fiscal year and it is not always possible to plan strategies at that time. Answer: False. The need for strategic analysis and decision making is on-going. See page 10 for a discussion on characteristics of strategic planning. 1.11 Strategic marketing is involved in making decisions, some of which include investment decisions. Of the following which is not an investment decision: (a) Invest for growth (b) Milk (c) Maintain (d) Liquidate (e) Innovation Answer: E. Innovation is a strategic option. See page 7 for a discussion on the choices of investment options. 1.12
© 2005 John Wiley & Sons
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