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One of the divisions of Masco is the Delta Faucet Company, which is the leader in the faucet
industry. Delta was founded in 1955. Over the decades, it has developed a legacy based on wellcrafted, high-quality products. Since the 1970s, Delta has focused its energies on building loyalty
with the builder marketplace. Research in 2002 showed that while builders respected the Delta
faucet for its quality, durability, and dependability, household consumers were not enamored with
Delta products. Due to the number of new magazines and television programs devoted to home
style, homeowners wanted faucets that were chic and stylish. This was not the image of the Delta
faucet. To change its image, Delta began a marketing program in which it committed itself to
developing new products to appeal to homeowners. It adopted a new slogan––“Beautifully
127. Refer to Delta Faucet Company. The marketing program that Delta designed to develop new
products to appeal to homeowners is an example of:
a mission statement
Strategic planning is the managerial process of creating and maintaining a fit between the
organization’s objectives and resources and the evolving market opportunities.
KEY: CB&E Model Strategy OBJ: 02-1 TOP: AACSB Reflective MSC: BLOOMS Application 128. Refer to Delta Faucet Company. Delta is a _____ of Masco.
strategic business unit (SBU)
share-bearing unit (SBU)
situational business usage (SBU) ANS: C
A strategic business unit (SBU) is a subgroup of a single business or collection of related
businesses within the larger organization.
KEY: CB&E Model Strategy OBJ: 02-2 TOP: AACSB Reflective MSC: BLOOMS Application 129. Refer to Delta Faucet Company. Delta would most likely have gathered the information about
how homeowners perceive its products through the use of a(n):
sales potential assessment
A situation analysis, sometimes referred to as a SWOT analysis, identifies a firm’s internal
strengths (S) and weaknesses (W) and external opportunities (O) and threats (T).
KEY: CB&E Model Strategy OBJ: 02-3 TOP: AACSB Reflective MSC: BLOOMS Application 130. Refer to Delta Faucet Company. The reputation the Delta faucet has for its quality, durability, and
dependability among builders is an example of a(n):
economy of scale
Competitive advantage is a set of unique features of a company and its products that are
perceived by the target market as significant and superior to the competition.
KEY: CB&E Model Strategy OBJ: 02-5 TOP: AACSB Reflective MSC: BLOOMS Application 131....
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- Fall '13