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stock-keeping unit (SKU)
strategic business unit (SBU)
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 123. Refer to Novartis. Novartis assessed the opportunity presented by the growing potential markets
in developing countries and determined it was consistent with its internal quality production
processes and extensive research and development capabilities. The assessment process in which
Novartis learned this about the environment is called a:
market audit b.
e. situation analysis
profit and loss assessment
strategic window search ANS: B
When a company pursues a study to ascertain its current status and capabilities and its future
expectations, it is conducting a situation analysis.
KEY: CB&E Model Strategy OBJ: 02-3 TOP: AACSB Reflective MSC: BLOOMS Application 124. Refer to Novartis. By acquiring Tianyuan, Novartis will be offering vaccines, which is a product
that it currently offers in its existing markets, to new markets for the company. This is an example
of which strategic alternative?
Market development entails marketing current products to new target markets.
KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB Reflective MSC: BLOOMS Application 125. Refer to Novartis. Tianyuan has a relatively small market share of a high-growth market in China.
How would this company be classified in the Novartis portfolio matrix?
A problem child, also called a question mark, has a low market share in a high-growth industry.
KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB Reflective MSC: BLOOMS Application 126. Refer to Novartis. One thing Novartis plans to do is increase sales to governments and to the
United Nations agencies since these are the typical buyers of vaccines to distribute in poor
countries. Thus, the company is willing to give up short-term profits to increase market share for
this company. In terms of the portfolio matrix, which basic strategy will Novartis be
Divert ANS: D
If an organization has a strategic business unit that it believes has the potential to be a star
(probably a problem child at present), building would be an appropriate goal.
KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB MSC: BLOOMS Application Delta Faucet Company
Masco is the name of a well-recognized company in the construction industry. It produces
cabinetry, furniture, lighting, and plumbing fixtures for the upper-end homeowner and buil...
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This document was uploaded on 09/29/2013.
- Fall '13