Florida International University

MAR 3023

Chapter 6-Identifying and Choosing Opportunities

Multiple Choice Questions

1)Which of the following is NOT a dimension focused on the internal resources when a company is articulating its mission?

a.) Core ingredient b.) Technology

c.) Product or service

d.) Customer needs

2. Growth path is specifically concerned with the trade-off between expected financial return and risk, and a firm must consider all of the following factors EXCEPT:

a.) The revenue and profit potential of its opportunities b.) Its core competencies

c.) All selections are critical factors to consider

d.) Its assessment of risk

3. In which of the following growth approaches does the firm focus on existing products and markets?

a.) Market penetration

b.) Product growth c.) Market growth

d.) Product and market diversification

4. Which of the following is NOT mentioned in the text as one of the four approaches for growth that are embedded in the growth path matrix?

a.) Market penetration b.) Product growth

c.) Market growth

d.) Cultural growth

5. The                                           option focuses on growth that is constant with the firm’s core competencies and has the least knowledge risk.

a.) market penetration

b.) product growth c.) market growth

d.) product and market diversification

6. All things being equal,                                            is more distant from the firm’s technological base than

                                      and is therefore more risky. a.) market extension; market expansion

b.) product extension; product expansion

c.) product expansion; product extension

d.) market extension; product expansion

7. For a bank skilled in making corporate loans, lock-box services would be considered a

                                     . a.) market expansion

b.) product expansion

c.) product extension 

d.) market extension

8. Ski resorts that expand their range of offerings beyond skiing to include ice-skating, downhill sledding, dog-sledding, snowmobiling, and tubing are practicing                                                           .

a.) market expansion b.) product expansion

c.) product extension 

d.) market extension

9. Entry into another English-speaking country for a domestically based firm in the English-speaking world would be considered a                                                                  .

a.) market expansion b.) product expansion c.) product extension

d.) market extension

10. For a domestically based firm in the English-speaking world, entry into a non-English-speaking country would be considered a                                                                      .

a.) market expansion

b.) product expansion c.) product extension d.) market extension

11. In which of the following growth options is the level of risk clearly the greatest? a.) Market penetration

b.) Product extension c.) Market expansion

d.) Conglomeration

12. According to the text, firms with high levels of technical expertise would be better off pursuing a

                                      strategy. a.) market-growth

b.) product-growth

c.) customer-growth d.) cultural-growth

13. In which of the following strategies are new products and services typically introduced as a result of consistent and extensive R&D spending?

a.) Pioneer

b.) Follow-the-leader c.) Segmenter

d.) Me-too

14.     is the name for firms that blaze trails and create and innovate new markets by consistent and extensive R&D spending.

a.) Follow-the-leader b.) Segmenter

c.) Me-too

d.) Pioneer

15. Even when monopoly positions cannot be achieved, firms that successfully pioneer new markets may enjoy    . These are a set of benefits that may accrue simply because the pioneer was the first entrant.

a.) first-mover advantages

b.) follow-the-leader advantages c.) segmenter advantage

d.) me-too advantages

16. Which of the following companies possesses the R&D skills and internal processes to consistently develop new products and services and has the marketing capabilities to open up new markets?

a.) Follow-the-leader b.) Segmenter

c.) Me-too

d.) Pioneer

17. Whereas                                           place extensive effort in producing new-to-the-world products and services via high investment in research,                                                          focus attention on development.

a.) follow-the-leader firms; pioneer firms

b.) pioneer firms; follow-the-leader firms

c.) segmenter firms; pioneer firms

d.) follow-the-leader firms; segmenter firms

18. Which of the following strategies can be extremely effective when the market is fairly well developed?

a.) Pioneer strategy

b.) Follow-the-leader strategy

c.) Segmenter strategy

d.) Innovator strategy

19. For which of the following strategies is technological expertise no longer the driving force; rather, marketing research to understand customers and identify potential markets are the major skills required?

a.) Pioneer strategy

b.) Follow-the-leader strategy

c.) Segmenter strategy

d.) Innovator strategy

20. To create shareholder value,                                    require a low-cost position. a.) pioneer strategies

b.) follow-the-leader strategies c.) segmenter strategies

d.) me-too strategies

21.                                    firms enter mature markets with limited product lines. a.) Follow-the-leader

b.) Segmenter

c.) Me-too

d.) Pioneer

22. Many Chinese firms pursue or have pursued which of the following market-entry approaches? a.) Follow-the-leader

b.) Segmenter

c.) Me-too

d.) Pioneer

23. Which of the following is NOT a subconstruct that is embraced by the concept of fit? a.) Product-market fit

b.) Product-company fit c.) Company-market fit

d.) Company-culture fit

24.     addresses the question of whether the product is appropriate for the market.

a.) Product-market fit

b.) Product-company fit c.) Company-market fit d.) Company-culture fit

25. According to the text, which of the following subconstructs of fit should the firm assess through market research and market testing?

a.) Product-market fit

b.) Product-company fit c.) Company-market fit d.) Company-culture fit

26. The skills and resources required to engage in continual product upgrading and marketing the product successfully are referred to as                                                       .

a.) Product-market fit

b.) Product-company fit 

c.) Company-market fit d.) Company-culture fit

27. Which of the following subconstructs of fit would be apply in the following example? “A firm is skilled at manufacturing, promoting, and distributing a product in its home market and ascertains through market research that a foreign market seems attractive. However, the problem is that the firm has no presence in, and little knowledge of, the foreign market.”

a.) Product-market fit b.) Product-company fit

c.) Company-market fit

d.) Company-political fit

28. Positive synergy reflects the notion that                                  . a.) 2 + 2 = 3

b.) 2 + 2 = 5

c.) 5 – 3 = 2

d.) 5 – 3 = 3

29.     occurs when pursuing a new opportunity would cause revenues and profits from existing products to be reduced.

a.) Positive synergy

b.) Negative synergy

c.) Theoretical synergy d.) Hypothetical synergy

30. Which of the following methods of achieving growth is perhaps the most widespread among major corporations?

a.) Internal development

b.) Acquisition

c.) Strategic alliances d.) Equity investment

31. Which of the following methods of achieving growth has resource access and timing as major disadvantages?

a.) Internal development

b.) Acquisition

c.) Strategic alliances

d.) Licensing and technology purchase