Marketing Final Exam

Group portfolio matrix are stars cash cows problem

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: sh cows, problem children (or question marks), and dogs. PTS: 1 REF: 23-24 Thinking KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB Reflective MSC: BLOOMS Analysis 81. Which of the following represents a business unit that shows rapid growth but poor profit margins? a. Star b. Cash cow c. Problem child d. Loss leader e. Dog ANS: C This is the definition of a problem child, also called a question mark. PTS: 1 REF: 24 Thinking KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB Reflective MSC: BLOOMS Comprehension 82. Before Heinz sold its 9-Lives brand cat food unit, the company identified the product as having a low market share in a high-growth market. The portfolio matrix would classify 9-Lives as a(n): a. star b. exclamation point c. problem child d. cash cow e. widow ANS: C A problem child, also called a question mark, shows rapid growth but has poor profit margins. PTS: 1 REF: 24 Thinking KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB Reflective MSC: BLOOMS Application 83. John R. Harland Company is best known for printing checks. Its Financial Solutions division develops software for mortgage companies and is currently producing much less than the desired level of profitability in a high-growth industry. According to the portfolio matrix, Harland would label its Financial Solutions division as a(n): a. widow b. exclamation point c. problem child d. star e. dog ANS: C A problem child, also called a question mark, has a low market share in a rapidly growing industry. PTS: 1 REF: 24 Thinking KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB Reflective MSC: BLOOMS Application 84. In the portfolio matrix, a business unit that has low growth potential and a small market share is called a(n): a. widow b. problem child c. cash cow d. dog e. bust ANS: D This is the definition of a dog in the portfolio matrix. PTS: 1 REF: 24 Thinking KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB Reflective MSC: BLOOMS Knowledge 85. All of the following are basic strategies resulting from a portfolio analysis EXCEPT: a. harvest b. build c. hold d. divest e. milk ANS: E The four strategies are build, hold, harvest, and divest. PTS: 1 REF: 24 Thinking KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB Reflective MSC: BLOOMS Analysis 86. John R. Harland Company is best known for printing checks. Its Financial Solutions division develops software for mortgage companies, which is a growing industry. This division is currently not producing at the desired level of profitability, but Harland plans to turn the division into a success by acquiring other companies that develop similar software. To accomplish this, Harland will be engaging in a _____ strategy. a. harvesting b. diversification c. divesting d. holding e. building ANS: E If an organization has a strategic business unit that it believes has potential to be a star, building would be an appropriate strategy. PTS: 1 REF: 24 Thinking KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB Reflective MSC: BLOOMS Applicati...
View Full Document

This document was uploaded on 09/29/2013.

Ask a homework question - tutors are online