TEST BANK FOR Strategic Market Management, 12th Edition David A. Aaker, Christine Moorman

TEST BANK FOR
n n


StrategicnMarketnManagement,n12thnEditionnDavidnA.nAaker,nChristinenMoorman

Chaptern1n–nStrategicnMarketnManagement:nAnnOverview

EssaynQuestion:

1.1
nDescribenandngivenexamplesnofnanwell-

developednbusinessnstrategynincludingnthenfourncharacteristics.

ObjectivenQuestions:

1.1
Fivenmanagementntasksnusedntondevelopnstrategicncompetenciesndonnotnincludenthenfollowin
g:
a. Strategicnanalysis
b. Managenmultiplenbusinessnunits
c. Identifyncompetitors
d. Developnansustainablenadvantage
e. Developnangrowthnplatform
Answer:nC.nIdentifyingncompetitorsnisnvaluablenbutnnotnonenofnthen5nmanagementnta
sks.

1.2
Thenbooknsuggestsnthatnmanynmarketsnarendynamicnandnrequirennewnstrategicnmodels.
Answer:nFalse—thenbooknassertsnthatnallnmarketsnarendynamic.

1.3
Tondevelopnansustainablencompetitivenadvantagen(SCA)ninndynamicnmarkets,nancompanynm
ustncreatenmultiplenbusinessnunits.

Answer:nFalse.nTherenarentwonroutesntoncreatingnSCA’s,ndevelopingnassetsnandncom
petenciesnandncreatingnandnleveragingnorganizationalnsynergiesnbetweennmultiplenb
usinessnunits.

,1.4
Anbusinessnisngenerallynannorganizationalnunitnthatnhasnandistinctnbusinessnstrategynandnanmanage
rnwithnsalesnandnprofitnresponsibility.
Answer:nTrue.

1.5
Synergynoccursnwhenntwonbusinessesncannreducencostsnbynsharingnsomenassetnsuchnasnansale
snforcenornlogisticsnsystem.
Answer:nTrue.

1.6
Anstrategynshouldnonlyninvolvenonenvaluenpropositionn–notherwisenchaosnwillnoccur.
Answer:nFalse.nMostnsuccessfulnstrategiesninvolvenmorenthannonen–
nfornexample,nancustomernvaluenpropositionnthatninvolvesninnovationnandncustomerni

ntimacynsuchnasnVirginnAtlanticnAirways.

1.7
Anstrategicnmarketnmanagementnsystemnwillnhavenmorenvaluenfornannorganizationnthatnisnno
tnengagedninncomplexnmarketsnwithnmultiplenchannelsnandnregionalnvariationninnchannelsna
ndnproducts.
Answer:nFalse.nAnstrategicnmarketnmanagementnsystemnisndesignedntonhelpnanc
ompanyn(complexnornnot)ntondealnwithnthenrapidnchangesnthatncannoccurninnanfir
m’snexternalnenvironment.

1.8
Thenelementsnofnstrategyncannbencapsulatednintonfourncorenelements--thenproduct-
marketninvestmentndecision,nfunctionalnareanstrategies,nthencustomernvaluenproposition,na
ndnthensustainablencompetitivenadvantage.
Answer:nFalse.nThenfournelementsnare:n1)nthenproduct-marketninvestmentnstrategy
2)nthencustomernvaluenproposition,n3)nassetsnandncompetenciesnandnsynergies,nand
4)nfunctionalnareanstrategies.nSonwhilenansustainablencompetitivenadvantagenisnthengo
alnofnanbusinessnstrategynitnisnnotnonenofnthenelementsnthatnmakenupnangoodnbusinessns
trategy.

1.9
Anstrategicncompetencynisnwhatnanbusinessnunitndoesnexceptionallynwell,nsuchnanmanufactur
ing,npromotion,ndistribution,netc.nwhichnhasnstrategicnimportancentonthenbusiness.
Answer:nTrue.nThisnisnthendefinitionnofnanstrategicncompetency.

1.10
Accordingntonthenbook,nstrategicnmarketingnmanagementnhasnsixnobjectivesnwhichnincludena
llnexceptnonenofnthenfollowing:
(a) Precipitatenthenconsiderationnofnstrategicnchoices.
(b) Contributentonthenbottomnlinensuccessnofnthenfirm.
(c) Forcenanlong-rangenview.

, (d) Makenthenresourcenallocationndecisionnvisible.
(e) Providenmethodsntonaidninnstrategicnanalysisnandndecision-making.
Answer:nB.nTherenisnnothingnthatnwillnguaranteenthensuccessnofnanbusiness.nInnfact,nit
nisninterestingntondiscussnthatnanstrategynisnevaluatednafternimplementation;nthatnisnw

hennitnisnknownnwhethernanstrategynisnsuccessfulnornnot.n.

1.11
Thenfournelementsnofnanbusinessnstrategynfornanfirmnarenthenproduct-
marketninvestmentndecision,nthenfunctionalnstrategiesnandnprogram,nthencustomernvaluenproposit
ion,nandnthe
andn .
Answer:nAssetsnandncompetencies.

1.12
Thenscopenofnanbusinessnisndefinednbynthenproductsnitnoffersnandnchoosesnnotntonoffer,nbynthenma
rketsnitndoesnandndoesnnotnseekntonserve,nbynthencompetitorsnitnchoosesntoncompetenwithnorntonav
oid,nandnbynitsnlevelnofnverticalnintegration.
Answer:nTrue.nThisnisnthendefinitionnofnanbusinessnscope.

1.13
Strategicnmarketingnisninvolvedninnmakingndecisions,nsomenofnwhichnincludeninvestmentndecisio
ns.nOfnthenfollowingnwhichnisnnotnanninvestmentndecision:
(a) Investnforngrowth
(b) Milk
(c) Maintain
(d) Liquidate
(e) Innovation
nAnswer:nE.




1.14
Annexternalnanalysisnincludesnthenanalysisnofnthencustomers,nthencompetitors,nthenmarkets/subm
arketsnandnthenenvironment.
Answer:nTrue.

1.15
Accordingntonthenbook,ncustomernanalysisninvolvesnidentifyingnthenorganization’sncustomer
nsegmentsnandneachnsegment’snmotivationsnandnprioritynneeds.

Answer:nFalse.

1.16
Strategicnmarketnmanagementnisnansystemndesignedntonhelpnmanagementnbothnprecipitatena
ndnmakenstrategicndecisions,nasnwellnasncreatenstrategicnvisions.
Answer:nTrue.nThisnisnthendefinitionnofnstrategicnmarketnmanagement.

1.17
Marketing’snroleninnstrategynincludesnbeingnthenprimaryndrivernofnstrategicnanalysis.
Answer:nTrue.

, 1.18
Thenstrategicnplannshouldnbendevelopednannually.
Answer:nFalse.nItnshouldnbencontinuouslynrefined.