Management > TEST BANKS > TEST BANK FOR Strategic Market Management, 12th Edition David A. Aaker, Christine Moorman (All)

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

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TEST BANK FOR Strategic Market Management, 12th Edition David A. Aaker, Christine Moorman-Essay Question: 1.1 Describe and give examples of a well-developed business strategy including the four ch... aracteristics. Objective Questions: 1.1 Five management tasks used to develop strategic competencies do not include the following: a. Strategic analysis b. Manage multiple business units c. Identify competitors d. Develop a sustainable advantage e. Develop a growth platform Answer: C. Identifying competitors is valuable but not one of the 5 management tasks. 1.2 The book suggests that many markets are dynamic and require new strategic models. Answer: False—the book asserts that all markets are dynamic. 1.3 To develop a sustainable competitive advantage (SCA) in dynamic markets, a company must create multiple business units. Answer: False. There are two routes to creating SCA’s, developing assets and competencies and creating and leveraging organizational synergies between multiple business units. 1.4 A business is generally an organizational unit that has a distinct business strategy and a manager with sales and profit responsibility. Answer: True. 1.5 Synergy occurs when two businesses can reduce costs by sharing some asset such as a sales force or logistics system. Answer: True. 1.6 A strategy should only involve one value proposition – otherwise chaos will occur. Answer: False. Most successful strategies involve more than one – for example, a customer value proposition that involves innovation and customer intimacy such as Virgin Atlantic Airways. 1.7 A strategic market management system will have more value for an organization that is not engaged in complex markets with multiple channels and regional variation in channels and products. Answer: False. A strategic market management system is designed to help a company (complex or not) to deal with the rapid changes that can occur in a firm’s external environment. 1.8 The elements of strategy can be capsulated into four core elements--the product-market investment decision, functional area strategies, the customer value proposition, and the sustainable competitive advantage. Answer: False. The four elements are: 1) the product-market investment strategy 2) the customer value proposition, 3) assets and competencies and synergies, and 4) functional area strategies. So while a sustainable competitive advantage is the goal of a business strategy it is not one of the elements that make up a good business strategy. [Show More]

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