48) The Hernandez brothers manufacture trailers that are used by lawn service companies. The
company was started in Texas by their father with one production site and four sales and service
locations. Since the sons took over, they have expanded in the last 12 years to include 26 sales
and service centers throughout the southeast. In this case, the company is most likely using a
generic business strategy based on ________.
A) retrenchment
B) stability
C) product differentiation
D) diversification
E) growth
49) Go Fish Sushi restaurants are primarily located in malls. The restaurants had rapid growth in
their first seven years. The owner realizes that adding more restaurants would make it impossible
to monitor operations. Therefore, he decides to continue current activities without making major
changes. In this case, the owner is most likely pursuing a generic strategy of ________.
A) retrenchment
B) stability
C) diversification
D) growth
E) differentiation
50) Zenith Homebuilders used to purchase many building lots and erect spec homes (i.e., it
gambled that the demand for new houses would be so high that they would sell easily). Since the
real estate slowdown, it builds homes only when owners are under contract. In this case, the
company is most likely pursuing a generic business strategy of ________.
A) retrenchment
B) stability
C) diversification
D) growth
E) differentiation
51) The activities a firm does better than its competitors are known as ________.
A) core competencies
B) strategic alignment
C) distinctive competencies
D) growth indicators
E) competitive indicators
52) Which of the following is NOT one of the four strategic types of firms proposed by Miles
and Snow?
A) prospectors
B) analyzers
C) defenders
D) reactors
E) compromisers
53) Today many retailers create apps that customers can download to their smartphones or
tablets to be up-to-date on the company’s offerings. In the context of situation analysis, which of
the following macro-level external environmental factors does this exemplify?
A) Economic factors
B) Natural factors
C) Technological factors
D) Political, legal, ethical factors
E) Sociocultural/demographic factors
54) According to the 2010 U.S. Census, Asian Americans are a high-income, fast-growing racial
group in America. In the context of situation analysis, under which of the following macro-level
external environmental factors will this be included?
A) natural factors
B) legal and ethical issues
C) technological advancements
D) sociocultural/demographic factors
E) firm structure and systems
55) Automobile manufacturers must comply with regulations set by the National Transportation
and Safety Board. In the context of situation analysis, which of the following macro-level
external environmental factors does this exemplify?
A) sociocultural/demographic
B) firm structure and systems
C) political, legal, and ethical
D) firm resources
E) threat of new entrants
56) In the context of situation analysis, which of the following is a category for analysis in the
internal environment?
A) political, legal, and ethical
B) technological
C) firm resources
D) threat of new entrants
E) sociocultural/demographic
57) What can impact the competitive nature of an industry through the ability to raise prices or
affect the quality of inbound goods and services?
A) suppliers
B) buyers
C) new entrants
D) substitute products
E) retailers
58) Which of the following competitive forces is NOT addressed directly by Michael Porter?
A) threat of new entrants
B) threat of substitute products
C) relative power of other stakeholders
D) bargaining power of suppliers
E) rivalry among existing firms
59) Which of the following is NOT a major category for analysis in the internal environment?
A) firm resources
B) firm leadership
C) firm culture
D) rivalry among existing firms
E) firm structure and systems
60) A SWOT analysis of a firm is least likely to ________.
A) reveal weaknesses
B) look at internal strengths
C) include external analysis
D) identify potential opportunities and threats
E) suggest solutions to problems
61) The best place in a SWOT analysis to identify problems with hurricanes, earthquakes, major
snowfalls, and other natural phenomena is ________.
A) external opportunities
B) external threats
C) internal opportunities
D) internal strengths
E) internal weaknesses
62) The best place in a SWOT analysis to list the availability of credit for a firm seeking to
expand through new construction of real estate is ________.
A) external opportunities
B) external threats
C) internal opportunities
D) internal strengths
E) internal weaknesses
63) The best place in a SWOT analysis to list a highly-competent workforce is ________.
A) external opportunities
B) external threats
C) internal opportunities
D) internal strengths
E) internal weaknesses
64) The best place in a SWOT analysis for an airline to identify the possibility of acquiring a
competitor is ________.
A) external opportunities
B) external threats
C) internal opportunities
D) internal strengths
E) internal weaknesses
65) The best place in a SWOT analysis for a wristwatch manufacturer to identify the presence of
competitive substitute products is ________.
A) external opportunities
B) external threats
C) internal opportunities
D) internal strengths
E) internal weaknesses
66) Goals and objectives should be set ________.
A) at the beginning of marketing planning
B) at the end of the situation analysis
C) after marketing strategies are fixed
D) after completion of market research, situation analysis, and competitor analysis
E) during SWOT analysis while identifying external opportunities and threats
67) Victor Inc., a producer of headphones used with cell phones and MP3 players, uses contract
manufacturing overseas. The firm is concerned that tariffs may be increased. Under which
component of situation analysis will an examination of this issue be found?
A) economic factors
B) natural factors
C) competitive factors
D) political, legal, and ethical factors
E) logistical factors
68) Malala, the marketing manager of an automobile dealership, is crafting a SWOT analysis. In
this case, she should include the downturn in the U.S. economy and tightening of the credit
markets under ________.
A) strengths
B) threats
C) opportunities
D) strategies
E) weaknesses
69) Maria, the marketing manager of an automobile dealership, is crafting a SWOT analysis. In
this case, she should list competitors that have gone bankrupt under ________.
A) strengths
B) threats
C) opportunities
D) strategies
E) weaknesses
70) Lin Wai’s company, New Home Builders Corp., specializes in designing homes that have
wide hallways and walk-in showers that could accommodate the need to use a wheelchair or
walker, and other amenities that allow couples to remain in their homes as they age. The
company’s strong value proposition has allowed it to maintain steady market share in a weak
housing market. In the context of SWOT analysis, a discussion of this relative advantage would
be included under ________.
A) strengths
B) threats
C) opportunities
D) strategies
E) weaknesses
71) Open Sesame is a chain of Thai restaurants located in the western United States. The
marketing manager has discovered that there is a growing demand for Spanish food, and the
appetite for Asian food is declining. In the context of SWOT analysis, this information would be
included under ________.
A) strengths
B) threats
C) opportunities
D) strategies
E) weaknesses