STR 581 Week 6 Capstone Final Exam

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STR 581 Week 6 Capstone Final Examination, Part
Three (Newest)
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• 1. A(n) ________ market share of exactly 100
  percent means that a company is tied for the
  market lead. A rise in relative market share
  means the company is gaining on its leading
  competitor.
• potential
• relative
• served
• Overall
• 2. The typical risks of a cost leadership
  strategy include___________.
• loss of customer loyalty
• excessive differentiation to the point where the
  customer base is too small
• the inability to balance high differentiation and
  low price
• production and distribution processes becoming
  obsolete
• 3. The likelihood of entry of new competitors is
  affected by and ___________.
• the power of existing suppliers buyers
• the profitability of the industry the market
  share of its leading firm
• barriers to entry expected retaliation of
  current industry organizations
• the demand for the product the profitability of
  the competitors

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• 4. In general, compared with firms which compete
  in only one market, among firms which face one
  another in multiple markets there is__________.
• similar competitive rivalry
• more competitive rivalry
• less competitive rivalry
• no competitive rivalry
• 5. The three parts of the external environment
  which affect a firm's strategic actions
  are__________.
• economic, political, and legal
• industry, business, and product
• local, national, and global
• general, industry, and competitor
• 6. The proper matching of what a firm can do with
  what a firm might do__________.
• balances the internal characteristics of the firm
  with the characteristics of the external
  environment
• overcomes the rigidity and inertia resulting from
  a history of success
• develops core competencies based on human
  knowledge
• yields insights the firm requires to select its
  strategy

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• 7. Gordon Jones is considering purchasing a
  computer from Best Buy. He has created a scale
  for rating eight different computers on three
  different characteristics. He plans to make a
  short list of only those computers that score at
  least a 7 on his scale on all three
  characteristics. Which of the following choice
  heuristics has he chosen?
• anchoring and adjustment heuristic
• elimination-by-aspects heuristic
• conjunctive heuristic
• lexicographic heuristic
• 8. The term "conglomerates" refers to firms using
  the diversification strategy.
• related constrained
• related linked
• global
• Unrelated
• 9. The goal of the organization's ________ is to
  point the firm in the direction of where it would
  like to be in the years to come.
• strategy
• mission
• culture
• vision

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• 10. A company that seeks to increase its sales
  and profits through backward, forward, or
  horizontal integration within the industry is
  said to be employing a(n) ________ growth
  strategy.
• target
• diversification
• intensive
• Integrative
• 11. Annual-plan control requires making sure the
  company isn't overspending to achieve sales
  goals. The key ratio to watch is ___________.
• stock turnover
• marketing expense-to-sales
• cash flow return on investment
• gross margin
• 12. The recent joint ventures formed by BP with
  Russian and Indian partners showed the importance
  of the ________ segment of the general
  environment that BP and other integrated oil
  firms have to manage when contending with scarce
  resources.
• physical
• demographic
• global
• political/legal

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• 13. Many consumers are willing to pay 100 for a
  perfume that contains 10 worth of scent because
  the perfume is from a well-known brand. What kind
  of pricing is the company depending on?
• image pricing
• market-skimming pricing
• target pricing
• going-rate pricing
• 14. Hilton Hotels customizes rooms and lobbies
  according to location. Northeastern hotels are
  sleeker and more cosmopolitan. Southwestern
  hotels are more rustic. This is an example of
  ________ segmentation.
• psychographic
• geographic
• demographic
• behavioral
• 15. A group of college graduates decides to start
  a business. Though they are knowledgeable in
  various business domains, they are unable to
  arrive at a valuable business idea. They decide
  to search for ideas in a structured manner. They
  meet and start discussing everyone's ideas. Each
  idea is recorded and then the thoughts that come
  up in relation to the ideas are written down and
  discussed. This process helps them to finalize a
  business plan. What technique is used here?
• mind mapping
• attribute listing
• forced relationship analysis
• reverse assumption analysis

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• 16. The Enron employee who reported the financial
  manipulations at the company to her superiors can
  be considered to have engaged in__________.
• managerial opportunism
• an act of courage
• vindictive disloyalty
• white-collar crime
• 17. The differentiation strategy can be effective
  in controlling the power of rivalry with existing
  competitors in an industry because__________.
• customers are loyal to brands that are
  differentiated in meaningful ways
• customers will seek out the lowest-cost product
• the differentiation strategy benefits from
  rivalry because it forces the firm to innovate
• customers of non differentiated products are
  sensitive to price increases
• 18. A well-known car manufacturing company
  introduces a new hatchback model by describing
  its distinctive features and then stressing the
  speed and safety qualities of the car. Which of
  the following is the company using to convey its
  membership in the hatchback segment?
• relying on the product descriptor
• using channel differentiation
• announcing category benefits
• comparing to exemplars

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• 19. ATT's business campaign not only helped to
  change public perceptions of the company, it also
  signaled to employees that ATT was determined to
  be a leader in telecommunication services. Which
  principle of internal branding does this example
  portray?
• bringing the brand alive for employees
• linking internal and external marketing
• choosing the right moment to capture employees'
  attention and imagination
• furnishing energizing and informative internal
  communication
• 20. The strategic management process
  is__________.
• the full set of commitments, decisions, and
  actions required for the firm to achieve
  above-average returns and strategic
  competitiveness
• a decision-making activity concerned with a
  firm's internal resources, capabilities, and
  competencies, independent of the conditions in
  its external environment
• a process directed by top-management with input
  from other stakeholders that seeks to achieve
  above- average returns for investors through
  effective use of the organization's resources
• a set of activities that will assure a
  sustainable competitive advantage and
  above-average returns for the firm
• 21. The first step in the social marketing
  planning process is ________.
• designing the market offering
• determining the focus of the program
• setting objectives and goals
• selecting the target audience

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• 22. Moving into international markets is a
  particularly attractive strategy to firms whose
  domestic markets__________.
• have too much regulation
• demand a differentiation strategy for success
• are limited in opportunities for growth
• have developed unfriendly business attitudes
  toward the industry
• 23. Aisha is a marketing manager with Injoos, a
  company that manufactures packaged fruit juices.
  Knowing that several other companies exist in the
  market that offer similar products, Aisha decides
  to build a customer base from among those who
  prefer to avoid mass media and other targeted
  promotions. Which of the following marketing
  communications tools would be her best option to
  build a favorable impression among the
  prospective customers?
• direct marketing
• sales promotions
• personal selling
• public relations
• 24. Viewing the world through the customer's eyes
  and constantly seeking ways to create more value
  for the company enhances__________.
• affiliation with the customer
• the richness of the relationship with the
  customer
• the ability to identify the customer
• the reach of the company toward the customer

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• 25. Backward integration occurs when a
  company_________.
• produces its own inputs
• is divesting unrelated businesses
• is concentrated in a single industry
• owns its own source of distribution of outputs
• 26. Successful implementation of the
  differentiation strategy requires a structure
  that___________.
• focuses on the finance function
• is dominated by the operations function
• has specialized jobs.
• decentralizes decision making
• 27. Which of the following can a company do to
  reduce defection
• Distinguish the causes of customer attrition and
  identify those that can be managed better.
• Increase customer lifetime value by increasing
  the non-monetary costs of products.
• Enhance the growth potential of existing
  customers through cross-selling and upselling.
• Attract new customers to try out the company's
  products.

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• 28. Southwest Airlines offers a Rapid Rewards
  program that allows customers to count flights
  they have taken toward free future flights. This
  is an example of a(n) ________.
• club membership program
• cross-selling program
• activity-based costing program
• value delivery system
• 29. Organizational structure__________.
• specifies the firm's formal reporting
  relationships, procedures, controls, and
  authority and decision-making processes
• specifies the firm's formal value proposition,
  the markets it will serve, and how the firm will
  provide value in those markets
• specifies the firm's control mechanisms,
  grievance procedures, reporting relationships,
  procedures, and authority over decision-making
  processes
• specifies the firm's informal reporting
  relationships, procedures, controls, and
  authority and decision-making processes
• 30. ________ is a form of online word of mouth,
  or "word of mouse," that encourages consumers to
  pass along company-developed products and
  services or audio, video or written information
  to others online.
• Viral marketing
• Microsite marketing
• Interstitial marketing
• Guerrilla marketing

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STR 581 Week 6 Capstone Final Examination, Part
Three (Newest) from UOP. Other topics in the
class are as follows STR 581 Week 2 Capstone
Final Examination, Part One STR 581 Week 4
Capstone Final Examination, Part Two STR 581 Week
6 Capstone Final Examination, Part Three STR 581
Week 6 Capstone Final Examination, Part Three
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