TEST BANK
for Strategic Market Management 9th Edition
David A. Aaker
ESSAY QUESTIONS
1. What is the objective of external analysis? How would you distinguish between an
effective and an ineffective external analysis? What would you say would be the most
useful way to conduct an external analysis? Why?
-Chapter 1 & 2-
2. Describe and give examples of a well-developed business strategy including the four
characteristics.
-Chapter 1-
3. Discuss the advantages of a customizing rather than a standardizing marketing program in
the context of a global strategy. When would customizing make sense?
-Chapter 13-
4. Consider the implementation problems of merging Sears and Walt Disney. What synergy
would you expect? How could you make sure that it materialized?
-Chapter 7 & 15-
5. Describe scenario analysis using one of the cases discussed in the course as a vehicle to
illustrate. What implementation problems would you expect if scenario analysis were to be
adopted at Apple Computer?
-Chapter 5-
6. American business have been accused of being short-sighted, looking at short-term
financial performance instead of taking a longer-term view. What can a manager do to
make sure that he or she is managing for the long term? How would you go about advising
a department store to generate indicators of long-term success? Be specific.
7. What are assumptions underlying the growth-share matrix? When are these assumptions
likely to hold? What is the historical contribution of the growth-share matrix?
-Chapter 14-
8. Discuss the considerations involved in making the decision to expand or broaden the
product line.
-Chapter 12-
9. Describe the distinctions between strategic commitment, strategic opportunism, and
strategic adaptability.
-Chapter 7-
2010 John Wiley & Sons Test Questions & Answers page 1
,10. Describe and illustrate the following terms:
-Scenario analysis - chapter 5
-Strategic uncertainties – chapter 2
-Synergy – chapter 7&15
-Strategic opportunism – chapter 7
-Strategic drift – chapter 7
-Key success factors – chapter 4&7
-Experience curve – chapter 8
-Silo barriers – chapter 15
11. You have been given the task to evaluate a market opportunity for a firm. Give specific
examples of the dimensions you would use to determine the attractiveness of a given
market.
-Chapter 14-
12. Discuss Competitor Analysis. In your discussion include the following: the objectives of
competitor analysis and the elements of competitor analysis. You should use information
from the course including articles, cases, and textbook material to support your answer.
-Chapter 3-
13. Discuss Environmental Analysis. In your discussion include the following: the objectives of
environmental analysis; the dimensions of environmental analysis; and how to deal with
strategic uncertainty. Use information from the course including articles, cases, and
textbook material to support your answer.
-Chapter 5-
14. What at the payoffs to creating a new business? What are the risks?
-Chapter 12-
15. Discuss Internal Analysis. In your discussion include the following: the objectives of
internal analysis; the benefits of conducting an internal analysis; and the elements of
internal analysis. Use information from the course including articles, cases, and textbook
material to support your answer.
-Chapter 6-
16. Discuss the concept of customer value proposition and give examples.
-Chapter 8-
17. How could you energize a business? Illustrate your answer.
-Chapter 10-
19. What role does innovation have in strategy making? Give examples of firms who have a
history of doing well with innovation and discuss the impact that has had on them.
-Chapter 1, 5, 10, & 12-
20. What is the innovator’s advantage? How can a firm enhance the chances that the
innovator advantage will materialize?
2010 John Wiley & Sons Test Questions page 2
, -Chapter 12-
OBJECTIVE QUESTIONS
Note – These objective questions cover the material from the book. In general, a false answer is
markedly at odds with material in the book. However, it may not be at odds with other written
material. Therefore, it is important to position these questions as a test of a student’s competence
with the book material.
Chapter 1 – Strategic Market Management: An Overview
.
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.
2010 John Wiley & Sons Test Questions & Answers page 3
, 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.
1.9
A strategic competency is what a business unit does exceptionally well, such a manufacturing,
promotion, distribution, etc. which has strategic importance to the business.
Answer: True. This is the definition of a strategic competency. .
1.10
According to the book, strategic marketing management has six objectives which include all except
one of the following:
(a) Precipitate the consideration of strategic choices.
(b) Contribute to the bottom line success of the firm.
(c) Force a long-range view.
(d) Make visible the resource allocation decision.
(e) Provide methods to aid in strategic analysis and decision-making.
Answer: B. There is nothing that will guarantee the success of a business. In fact, it is
interesting to discuss that a strategy is evaluated after implementation; that is when it is
known whether a strategy is successful or not. .
1.11
The four elements of a business strategy for a firm are the product-market investment decision, the
functional strategies and program, the customer value proposition, and the __________ and
_________.
Answer: assets and competencies. .
1.12
2010 John Wiley & Sons Test Questions page 4
for Strategic Market Management 9th Edition
David A. Aaker
ESSAY QUESTIONS
1. What is the objective of external analysis? How would you distinguish between an
effective and an ineffective external analysis? What would you say would be the most
useful way to conduct an external analysis? Why?
-Chapter 1 & 2-
2. Describe and give examples of a well-developed business strategy including the four
characteristics.
-Chapter 1-
3. Discuss the advantages of a customizing rather than a standardizing marketing program in
the context of a global strategy. When would customizing make sense?
-Chapter 13-
4. Consider the implementation problems of merging Sears and Walt Disney. What synergy
would you expect? How could you make sure that it materialized?
-Chapter 7 & 15-
5. Describe scenario analysis using one of the cases discussed in the course as a vehicle to
illustrate. What implementation problems would you expect if scenario analysis were to be
adopted at Apple Computer?
-Chapter 5-
6. American business have been accused of being short-sighted, looking at short-term
financial performance instead of taking a longer-term view. What can a manager do to
make sure that he or she is managing for the long term? How would you go about advising
a department store to generate indicators of long-term success? Be specific.
7. What are assumptions underlying the growth-share matrix? When are these assumptions
likely to hold? What is the historical contribution of the growth-share matrix?
-Chapter 14-
8. Discuss the considerations involved in making the decision to expand or broaden the
product line.
-Chapter 12-
9. Describe the distinctions between strategic commitment, strategic opportunism, and
strategic adaptability.
-Chapter 7-
2010 John Wiley & Sons Test Questions & Answers page 1
,10. Describe and illustrate the following terms:
-Scenario analysis - chapter 5
-Strategic uncertainties – chapter 2
-Synergy – chapter 7&15
-Strategic opportunism – chapter 7
-Strategic drift – chapter 7
-Key success factors – chapter 4&7
-Experience curve – chapter 8
-Silo barriers – chapter 15
11. You have been given the task to evaluate a market opportunity for a firm. Give specific
examples of the dimensions you would use to determine the attractiveness of a given
market.
-Chapter 14-
12. Discuss Competitor Analysis. In your discussion include the following: the objectives of
competitor analysis and the elements of competitor analysis. You should use information
from the course including articles, cases, and textbook material to support your answer.
-Chapter 3-
13. Discuss Environmental Analysis. In your discussion include the following: the objectives of
environmental analysis; the dimensions of environmental analysis; and how to deal with
strategic uncertainty. Use information from the course including articles, cases, and
textbook material to support your answer.
-Chapter 5-
14. What at the payoffs to creating a new business? What are the risks?
-Chapter 12-
15. Discuss Internal Analysis. In your discussion include the following: the objectives of
internal analysis; the benefits of conducting an internal analysis; and the elements of
internal analysis. Use information from the course including articles, cases, and textbook
material to support your answer.
-Chapter 6-
16. Discuss the concept of customer value proposition and give examples.
-Chapter 8-
17. How could you energize a business? Illustrate your answer.
-Chapter 10-
19. What role does innovation have in strategy making? Give examples of firms who have a
history of doing well with innovation and discuss the impact that has had on them.
-Chapter 1, 5, 10, & 12-
20. What is the innovator’s advantage? How can a firm enhance the chances that the
innovator advantage will materialize?
2010 John Wiley & Sons Test Questions page 2
, -Chapter 12-
OBJECTIVE QUESTIONS
Note – These objective questions cover the material from the book. In general, a false answer is
markedly at odds with material in the book. However, it may not be at odds with other written
material. Therefore, it is important to position these questions as a test of a student’s competence
with the book material.
Chapter 1 – Strategic Market Management: An Overview
.
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.
2010 John Wiley & Sons Test Questions & Answers page 3
, 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.
1.9
A strategic competency is what a business unit does exceptionally well, such a manufacturing,
promotion, distribution, etc. which has strategic importance to the business.
Answer: True. This is the definition of a strategic competency. .
1.10
According to the book, strategic marketing management has six objectives which include all except
one of the following:
(a) Precipitate the consideration of strategic choices.
(b) Contribute to the bottom line success of the firm.
(c) Force a long-range view.
(d) Make visible the resource allocation decision.
(e) Provide methods to aid in strategic analysis and decision-making.
Answer: B. There is nothing that will guarantee the success of a business. In fact, it is
interesting to discuss that a strategy is evaluated after implementation; that is when it is
known whether a strategy is successful or not. .
1.11
The four elements of a business strategy for a firm are the product-market investment decision, the
functional strategies and program, the customer value proposition, and the __________ and
_________.
Answer: assets and competencies. .
1.12
2010 John Wiley & Sons Test Questions page 4
