QUESTION 16

In practical terms, aspirations differ from objectives in that aspirations

		can stand alone, without a corresponding strategy.
		are more focused on the financial performance of the firm.
		provide the guiding principles and motivational forces for the organization.
		are rarely formally written.

QUESTION 17

The calculated market value added (MVA) for XYZ Inc. is positive. Which of the following is indicated by this result?

	a.	The amount of wealth the company has created.
	b.	The amount of debt the company has accumulated
	c.	The total amount of resources available to the company
	d.	The success of the company's efforts at sustainability

QUESTION 18

Which of the following strategies is most likely to be used by a company that is trying to increase its market share for its current products in the current market?

	a.	Diversification
	b.	Market penetration
	c.	Market development
	d.	Product development

QUESTION 19

A processed-meat manufacturer is moving "downstream" in terms of product flow by launching a chain of retail outlets. Which diversification strategy is being used by the company?

	a.	Forward vertical integration
	b.	Related diversification
	c.	Backward integration
	d.	Unrelated diversification

QUESTION 20

Which of the following is a limitation of the growth-share (BCG) matrix?

	a.	Since the matrix uses multiple variables as a basis for categorizing a firm's business's, it is complex to understand.
	b.	Outcomes of this analysis are highly sensitive to variations in how growth and share are measured.
	c.	It fails to analyze the impact of investing resources in different businesses on the firm's future earnings.
	d.	The model fails to consider that firms can generate cash from businesses with strong competitive positions in mature markets.

QUESTION 21

Which of the following is typically a part of using customer equity to estimate the value of alternative marketing actions?

	a.	Forecasting the costs incurred in promoting products
	b.	Calculating the lifetime values of each of its customers
	c.	Assessing the shareholder value of each marketing action
	d.	Measuring changes in market share from quarter to quarter.

QUESTION 22

A business avoids direct confrontation with its major competitors by concentrating on narrowly defined market niches. According to Michael Porter, which of the following competitive strategies does this exemplify?

	a.	Maintaining cost leadership in a specific market segement
	b.	Using market penetration strategies to gain a foothold in a saturated market
	c.	Focusing on an elite customer segment
	d.	Differentiating between competitors' products.

QUESTION 23

A business pursuing a prospector strategy:

	a.	operates within a broad product-market domain that undergoes periodic redifinition.
	b.	values being a second or third entrant in product-markets related to its existing market base.
	c.	responds primarily when it is forced to by environmental pressures.
	d.	attempts to locate and maintain a secure position in relatively stable product or service areas.

QUESTION 24

______________ businesses have an intermediary type of business strategy that makes fewer and slower product market changes than ________________ businesses that are less committed to stability and efficiency thn _________________ businesses.

	a.	Prospector; defender; reactor
	b.	Prospector; reactor; defender
	c.	Defender; analyzer; reactor
	d.	Analyzer; prospector; defender

QUESTION 25

A defender strategy is most useful for

	a.	unstable, rapidly changing environments resulting from new technology, shifting consumer needs, or both.
	b.	industry structures that are still evolving with one or more competitors holding large shares in major segments.
	c.	business units with a profitable share of one or more major segments in a relatively mature and stable industry.
	d.	business units with strong research and development, product engineering, and marketing capabilities.