MGMT 309 Review Questions And Answers Rated A+
What is optimization? ANS optimizing-
involves balancing and reconciling possible conflicts among goals. Because goals may conflict with
one another, the manager must look for inconsistencies and decide whether to pursue one goal to the
exclusion of another or to find a midrange target between the extremes. For example, Home Depot
first achieved success in the retailing industry by offering do-it-yourselfers high-quality home
improvement products at low prices and with good service.
What is the BCG Matrix? ANS A method of evaluating businesses relative to the growth rate of
their market and the organizations share of the market.
How do we use the BCG matrix? ANS
What is a focus strategy? ANS a strategy in which an organization concentrates on a specific
regional market, product line, or group of buyers.
Focus strategy (differentiation focus)- ANS The firm differentiates its products in the focus
market. A focused differentiation strategy requires offering unique features that fulfill the demands of
a narrow market.
(Example: a firm following a differentiation focus by selling only rugged waterproof watches to
active customers, or a firm making expensive cameras targeted at professional photographers. Lastly,
Fisher Price selling electronic calculators with large, brightly colored buttons to the parents of
preschoolers.
Focus strategy (cost leadership focus)- ANS A firm that follows this practice does not necessarily
charge the lowest prices in the industry. Instead, it charges low prices relative to other firms that
compete within the target market.
Example: Redbox rents DVDs and Video games through vending machines for only $1 or you might
be able to buy milk cheaper by driving to a big-box grocery store in your local community or town,
but the local corner store is the cheapest within walking distance.
What is a reactor strategy? ANS A reactor strategy has no consistent strategic approach; it drifts
with environmental events, reacting to but failing to anticipate or influence those events. Not
, suprisingly, these firms do not usually perform as well as organizations that implement other
strategies.
Example: International Harvester Company (IH) was clearly a reac- tor. At a time when IH's market
for trucks, construction equipment, and agricultural equipment was booming, the company failed to
keep pace with its competitors. By the time a recession cut demand for its products, it was too late for
IH to respond, and the company lost millions of dollars. The firm was forced to sell off virtually all
of its businesses, except its truck-manufacturing business. IH, now renamed Navistar, moved from
being a dominant firm in trucking, agri- culture, and construction to a smaller truck and bus
manufacturer because it failed to anticipate changes in its environment.
What is a prospector strategy? ANS Is innovative and growth oriented, searches for new markets
and new growth opportunities, encourage risk taking.
Example of companies who use it: Amazon.com, 3m, Rubbermaid
What is a defender strategy? ANS A strategy where a firm protects current markets, maintains
stable growth, serves current customers.
Examples of companies who use it: eBay, Mrs. Fields, BIC
What is a Analyzer strategy? ANS A strategy where a firm maintains current markets and current
customer satisfaction with moderate emphasis on innovation.
Examples of companies who use it: DuPont, IBM, Yahoo!
What is satisficing? ANS the tendency to search for alternatives only until one is found that
meets some minimum standard of sufficiency.
What is a product life cycle? ANS It is a model that portrays how sales volume for products
changes over the life of products.
How does the product life cycle work? ANS It is composed of four stages.
What is optimization? ANS optimizing-
involves balancing and reconciling possible conflicts among goals. Because goals may conflict with
one another, the manager must look for inconsistencies and decide whether to pursue one goal to the
exclusion of another or to find a midrange target between the extremes. For example, Home Depot
first achieved success in the retailing industry by offering do-it-yourselfers high-quality home
improvement products at low prices and with good service.
What is the BCG Matrix? ANS A method of evaluating businesses relative to the growth rate of
their market and the organizations share of the market.
How do we use the BCG matrix? ANS
What is a focus strategy? ANS a strategy in which an organization concentrates on a specific
regional market, product line, or group of buyers.
Focus strategy (differentiation focus)- ANS The firm differentiates its products in the focus
market. A focused differentiation strategy requires offering unique features that fulfill the demands of
a narrow market.
(Example: a firm following a differentiation focus by selling only rugged waterproof watches to
active customers, or a firm making expensive cameras targeted at professional photographers. Lastly,
Fisher Price selling electronic calculators with large, brightly colored buttons to the parents of
preschoolers.
Focus strategy (cost leadership focus)- ANS A firm that follows this practice does not necessarily
charge the lowest prices in the industry. Instead, it charges low prices relative to other firms that
compete within the target market.
Example: Redbox rents DVDs and Video games through vending machines for only $1 or you might
be able to buy milk cheaper by driving to a big-box grocery store in your local community or town,
but the local corner store is the cheapest within walking distance.
What is a reactor strategy? ANS A reactor strategy has no consistent strategic approach; it drifts
with environmental events, reacting to but failing to anticipate or influence those events. Not
, suprisingly, these firms do not usually perform as well as organizations that implement other
strategies.
Example: International Harvester Company (IH) was clearly a reac- tor. At a time when IH's market
for trucks, construction equipment, and agricultural equipment was booming, the company failed to
keep pace with its competitors. By the time a recession cut demand for its products, it was too late for
IH to respond, and the company lost millions of dollars. The firm was forced to sell off virtually all
of its businesses, except its truck-manufacturing business. IH, now renamed Navistar, moved from
being a dominant firm in trucking, agri- culture, and construction to a smaller truck and bus
manufacturer because it failed to anticipate changes in its environment.
What is a prospector strategy? ANS Is innovative and growth oriented, searches for new markets
and new growth opportunities, encourage risk taking.
Example of companies who use it: Amazon.com, 3m, Rubbermaid
What is a defender strategy? ANS A strategy where a firm protects current markets, maintains
stable growth, serves current customers.
Examples of companies who use it: eBay, Mrs. Fields, BIC
What is a Analyzer strategy? ANS A strategy where a firm maintains current markets and current
customer satisfaction with moderate emphasis on innovation.
Examples of companies who use it: DuPont, IBM, Yahoo!
What is satisficing? ANS the tendency to search for alternatives only until one is found that
meets some minimum standard of sufficiency.
What is a product life cycle? ANS It is a model that portrays how sales volume for products
changes over the life of products.
How does the product life cycle work? ANS It is composed of four stages.
