Chapter 2 Quizzes - Chapter 2Strategic Planning for...

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Chapter 2Strategic 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: 1 REF: 36 OBJ: 02-1 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Strategy 2. The marketing plan is a written document that acts as a guidebook of marketing activities for a marketing manager. ANS: T PTS: 1 REF: 36 OBJ: 02-1 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Marketing Plan 3. 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: 1 REF: 38 OBJ: 02-2 TYPE: Def TOP: AACSB Analytic | TB&E Model Strategy 4. Marketing objectives should be consistent with organization objectives, they should be measurable, and they should specify the time frame during which they are to be achieved. ANS: T PTS: 1 REF: 39 TOP: AACSB Analytic | TB&E Model Strategy OBJ: 02-3 TYPE: Comp 5. The company's objective is to spend 10 percent of this fiscal year's sales revenue on research and development in an effort to introduce at least five new products in the next fiscal year. This is an example of a well-stated objective. ANS: T This objective is measurable and has a specific time frame. See Exhibit 2.3. PTS: 1 REF: 39-40 OBJ: 02-3 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Research 6. A situation analysis is a small part of the more all-encompassing SWOT analysis. ANS: F A common way to conduct a situation analysis is to perform a SWOT analysis, which means examining the company's environments for strengths, weaknesses, opportunities, and threats. PTS: 1 REF: 40 OBJ: 02-4 TYPE: Def TOP: AACSB Diversity | TB&E Model Strategy 7. A marketing audit is limited to the collection and analysis of information about factors that may affect the organization as well as the identification of market opportunities and threats. ANS: F This is the definition of environmental scanning. PTS: 1 REF: 40-41 OBJ: 02-4 TYPE: Def TOP: AACSB Diversity | TB&E Model Customer 8. A competitive advantage is some unique aspect of a firm's offering, or of the firm itself, that causes target customers to patronize the firm rather than its competition. ANS: T PTS: 1 REF: 41 TOP: AACSB Reflective Thinking | TB&E Model Customer OBJ: 02-5 TYPE: Def 9. Diamonds that come from rebel African troops trying to get money for weapons are much cheaper than diamonds from countries that are not in conflict. A diamond retailer that ignores the pleas of human rights organizations not to sell the cheaper diamonds is creating a cost competitive advantage for itself.
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