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A watch manufacturer acquires a tannery that would produce premium leather straps for its brand of wristwatches. The firm acquires a smaller company that specializes in waterproofing wristwatches.

Which of the following strategies is the watch manufacturer adopting in this case? Conglomerate diversification B. Unrelated diversification C. Concentric diversification D. Which of the following is true of related diversification?

The motivations for related diversification are primarily financial rather than operational. Related diversification contributes to internal synergy through the sharing of production facilities and marketing and distribution skills. Related diversification is typically the riskiest growth strategy in terms of financial outcomes. Which of the following growth strategies is typically the riskiest in terms of financial outcomes?

Which of the following factors are plotted along the vertical axis of the BCG growth-share matrix? Divestiture and harvesting are strategies that most suitable for: A. According to the BCG growth-share matrix, businesses in high-growth industries with low market shares are termed: A. In terms of the BCG growth-share matrix, the market leader in a high-growth industry is termed a: A. In terms of the BCG growth-share matrix, businesses with a high relative share of lowgrowth markets are called: A.

The amount of return a strategy or operating program generates in excess of the cost of capital is commonly referred to as its: A.

Strategic business units are: A. List a few reasons why firms are not always in close touch with their market environments. Answer: Some of the reasons why firms are not always in close touch with their market environments include: a. Competitive conditions may enable a company to be successful in the short run without being particularly sensitive to customer desires.

Different levels of economic development across industries or business philosophies. What is the difference between a production-oriented and a sales-oriented firm? What telltale signs would you expect to find distinguishing the two types of firms? Answer: A production- oriented firm derives its mission from the making of the product; a salesoriented firm derives its mission from selling the product.

In the former, substantial power can be found vested in production and engineering personnel; in the latter, power can be found in sales personnel. Describe the five components within a well-developed strategy.

Mention the components of an objective. Answer: Each objective contains four components: a. A performance dimension or attribute sought. A measure or index for evaluating progress. A target or hurdle level to be achieved. A time frame within which the target is to be accomplished. Distinguish between vertical integration, concentric diversification, and conglomerate diversification. Answer: Vertical integration is one way for companies to diversify.

Forward vertical integration occurs when a firm moves downstream in terms of the product flow, as when a manufacturer integrates by acquiring or launching a wholesale distributor or retail outlet. Backward integration occurs when a firm moves upstream by acquiring a supplier. An unrelated or conglomerate diversification involves two businesses that have no commonalities in products, customers, production facilities, or functional areas of expertise.

The motivations for unrelated diversification are primarily financial rather than operational. Explain the four cells in the BCG growth-share matrix that represent different types of business. Answer: Question marks: Businesses in high-growth industries with low relative market shares are called question marks or problem children. Such businesses require large amounts of cash, not only for expansion to keep up with the rapidly growing market, but also for marketing activities or reduced margins to build market share and catch the industry leader.

Stars: A star is the market leader in a high-growth industry. Stars are critical to the continued success of the firm. As their industries mature, they move into the bottom-left quadrant and become cash cows. Paradoxically, while stars are critically important, they often are net users rather than suppliers of cash in the short run. Cash cows: Businesses with a high relative share of low-growth markets are called cash cows because they are the primary generators of profits and cash in a corporation.

Such businesses do not require much additional capital investment. Their markets are stable, and their share leadership position usually means they enjoy economies of scale and relatively high profit margins. Dogs: Low-share businesses in low-growth markets are called dogs because although they may throw off some cash, they typically generate low profits or losses. What are the limitations of the BCG growth-share matrix? How do knowledge and corporate brands serve as sources of synergy?

Answer: Some potential synergies at the corporate level are knowledge-based. The performance of one business can be enhanced by the transfer of competencies, knowledge, or customerrelated intangibles such as brand-name recognition and reputation from other units within the firm. Corporate identity with a strong corporate brand that embodies that identity can help a firm stand out from its competitors and give it a sustainable advantage in the market. What criteria should managers use to decide how product-markets should be clustered into a business unit?

Answer: The three dimensions that define the scope and mission of the entire corporation also define individual SBUs: a. Technical compatibility, particularly with respect to product technologies and operational requirements, such as the use of similar production facilities and engineering skills.

Similarity in the customer needs or the product benefits sought by customers in the target markets. Seller Inventory Book Description Paperback. Condition: new. The eighth edition of Marketing Management: A Strategic Decision-Making Approach, concentrates on marketing decision-making, rather than mere description of marketing phenomena.

Drawing on its authors' wealth of entrepreneurial and executive experience, along with their thought-leading research, the book provides an abundance of real-life examples of marketing decisions - both good and not-so-good - from around the world in companies ranging from entrepreneurial start-ups to multi-national giants.

Drawing on its authors' wealth of entrepreneurial and executive experience, along with their thought-leading research, the book provides an abundance of real-life examples of marketing decisions -- both good and not-so-good -- from around the world in companies ranging from entrepreneurial start-ups to multi-national giants. Shipping may be from multiple locations in the US or from the UK, depending on stock availability. Book Description No Binding. New Condition.

Ships Within business days. Book Description Condition: New. Seller Inventory n. Book Description Soft Cover. Brand new! Please provide a physical shipping address. Mullins, John ; Walker, Orville. Publisher: McGraw Hill , This specific ISBN edition is currently not available. View all copies of this ISBN edition:. Synopsis About this title The eighth edition of Marketing Management: A Strategic Decision-Making Approach , concentrates on marketing decision-making , rather than mere description of marketing phenomena.

About the Author : John W. The marketing manager should be very expert and competent in his job so that he takes proper decisions for marketing the goods and services.

Both these variables have marked influence on decision making. These variables should be properly interpreted by the marketing manager before taking a decision. You must be logged in to post a comment. Leave a Reply Click here to cancel reply. We use cookies We use cookies to personalise content and ads, to provide social media features and to analyse our traffic.

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