BUSN 410 PRACTICE EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS | ALREADY GRADED A+RECENT VERSION

BUSN 410 PRACTICE EXAM QUESTIONS WITH CORRECT DETAILED ANSWERS | ALREADY GRADED A+RECENT VERSION 1) Starbucks' previous attempts to include food in its product offerings have met with mediocre results. Currently, only one-third of customers buy food products at Starbucks. How does using vertical integration increase Starbucks' financial risk by buying and operating its own bakery supplier? - ANSWER Demand is unpredictable 2) Definition of Marketing - ANSWER More than just selling a product. •Product •Price •Promotion Place 3) Definition of Relationship Marketing - ANSWER Long term relationship 4) Definition of Strategic Business Unit - ANSWER a subgroup of a single business or collection of related businesses within the larger organization (Specific target Market) 5) Portfolio Matrix - ANSWER Star-is a business unit that is a fast-growing market leader Cash Cow-is a business unit that generates more cash than it needs to maintain its market share Problem Child (question mark)-is a business unit that shows rapid growth but poor profit margins Dog-is a business unit that has low growth potential and a small market share 6) Purpose of Portfolio Matrix - ANSWER a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate (gives a balance/snapshot) 7) Strategy for DOG - ANSWER Divest it, put product down 8) Competitive Advantage - ANSWER a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition (Very hard for competitor to copy your innovation) 3 types: COST PRODUCT DIFFERNTIATION NICHE 9) Brand Name - ANSWER a part of first P- Product 10) Distribution - ANSWER Storage of Raw Materials 11) Image of Company - ANSWER Product Strategy 12) Definition of Promotion - ANSWER •Advertising •Personal Selling •Sales Promotion •Public Relations/Publicity •Social Media (Informing, Educating Reminding and Persuading) 13) Definition of Ethics - ANSWER Own Morals and Interpretations 14) Code of Ethics - ANSWER a guideline to help marketing managers and other employees make better decisions 15) Corporate Social Responsibility (CSR) - ANSWER a business's concern for society's welfare 16) Stake Holders - ANSWER ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm's operation (Competitors are NOT stakeholders) 17) Target Market - ANSWER a group of people or organizations for which an organization designs, implements, and maintains a marketing mix to meet the need of that group, resulting in mutually satisfying exchanges 18) Demography - ANSWER the study of people's vital statistics, such as age, race and ethnicity, and location 19) Demographics and Population - ANSWER People are the basis for any market. -Demographic characteristics are related to consumer buying behavior -Population is the basic statistic in marketing It is useful when broken into smaller and more specific increments 20) Shift in Population - ANSWER Rural communities are getting older, shift from the cities. 21) Global Marketing - ANSWER Marketing that targets markets throughout the world 22) Global Vision - ANSWER recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets 23) Definition of In shoring - ANSWER returning production jobs to the United States 24) Benefit of Globalization - ANSWER Access to Global Markets 25) Outsourcing - ANSWER sending U.S. jobs abroad 26) Goal of Globalization - ANSWER Increase production and living standards 27) Definition of MNC - ANSWER Multinational Corporation: a company that is heavily engaged in international trade, beyond exporting and importing 28) Global Market Standardization - ANSWER production of uniform products that can be sold the same way all over the world 29) Tariff - ANSWER A tax 30) Joint Venture - ANSWER when a domestic firm buys part of a foreign company to create a new entity (Partnership) 31) Direct Investment - ANSWER High Risk High Return. Direct investment occurs when a business in one country invests in a business interest in another country 32) Definition of Licensing - ANSWER the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge 33) Definition of Contract Manufacturing - ANSWER private-label manufacturing by a foreign company. Paying someone else money to produce your product. 34) Difference of Joint Venture and Contract - ANSWER Contracts are only good for a designated amount of time and expire upon completion of contract. Thus, can switch what you produce by going to a new contract. 35) Starbucks is implementing a corporate-level strategy to diversify its product offerings by purchasing La Bolange in an effort to: - ANSWER increase Starbucks' value to customers by improving its quality and overall performance in its industry. 36) What is a value-increase reason for Starbucks to diversify its product offerings to include bakery items? - ANSWER To help Starbucks develop a more competitive position. 37) Corporate-level strategy is best described as: - ANSWER actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets. 38) Firms use corporate-level strategies for several reasons, including to: - ANSWER pursue development of a market. 39) Using a corporate-level strategy over a business-level strategy is based on which of the following key issues? - ANSWER What product markets and businesses the firm should compete in and how corporate headquarters should manage those businesses 40) A popular TV network, QTV, wishes to gain a competitive advantage by managing several businesses from its headquarters. Among its goals, QTV hopes to acquire its competitor, RTV, in the process. In this instance, QTV is using which type of strategy? - ANSWER Corporate-level strategy 41) Turtle creek owns a high-end grocery chain, a high-end outdoor gear chain, and a sporting goods chain. Its retail businesses are unrelated; however, the firm hopes to gain an advantage over its competitors by associating its perceived luxury brand with each business. By selecting and managing these various businesses, Turtlecreek is implementing a _____ strategy. - ANSWER corporate-level 42) A single-business diversification strategy and a dominant-business diversification strategy are both examples of what level of diversification? - ANSWER Low level 43) Firms that use an unrelated diversification strategy are referred to as conglomerates. An unrelated diversification strategy means a _____ firm has _____ direct relationship(s) among its businesses. - ANSWER highly-diversified; no 44) Glow Makeup is a moderately-diversified firm, as it has three main related businesses, including a skin care business, nail polish business, and facial cosmetic business. Its divisions are composed of different products, but they are all related to cosmetics. As a result, the firm maintains many of the same resources and certain core competencies within each of its operations. Based on this information, Glow Makeup uses what diversification strategy? - ANSWER Related constrained diversification strategy 45) Steeler Manufacturing uses an unrelated diversification strategy throughout its operations. For instance, Steeler has five core businesses, all of which are unrelated. Each of its businesses is large and indicates Steeler's success in implementing an unrelated diversification as a _____ firm. - ANSWER highly-diversified 46) Corporate-level diversification strategy is used to _____ the firm's value by _____ its overall performance. - ANSWER increase; improving