Q&A Hero

Q: Which of the following types of retailers obtain surplus merchandise from manufacturers and offer brand-name, fashion-oriented goods at low prices? A) specialty stores B) warehouse clubs C) off-price retailers D) department stores E) hypermarkets

Q: Which of the following is the best organization structure for global marketing? A) international division structure B) matrix C) geographic structure D) worldwide product division structure E) There is no single "best" structure.

Q: An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a ________ strategy. A) loose bricks B) collaboration C) layers of advantage D) supplier power E) generic

Q: Which of the following is true about general merchandise discount stores? A) They typically have deep and narrow assortments. B) They typically have shallow and narrow assortments. C) They do not use price differentiation. D) They appeal to consumers who want easy access to a lot of merchandise. E) They are typically full-service retailers.

Q: According to David Whitwam, former CEO of Whirlpool, one must create an organization whose people are: A) adept at exchanging ideas, processes, and symptoms. B) absolutely free of the "not-invented here" syndrome. C) constantly working together to identify best global opportunities. D) working together to solve the biggest global problems. E) able to adapt to systems across borders.

Q: When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing: A) loose bricks. B) a "double diamond." C) attribute diversity. D) layers of advantage. E) buyer power.

Q: Which of the following is a discount retailer owned by a manufacturer that provides the manufacturer a store to sell off defective merchandise? A) a specialty store B) a factory outlet store C) a department store D) a general merchandise discount store E) a warehouse club

Q: Organizations, in order to be globally successful, must be viewed as portfolio of: A) activities. B) businesses. C) competencies. D) products. E) policies.

Q: Caterpillar's attention was focused elsewhere when Komatsu made its first international entry into the Eastern European Market. Based on the strategic intent framework, this is an example of: A) changing the rules. B) collaborating. C) comparative advantage. D) layers of advantage. E) loose bricks.

Q: How important is the nationality of the top management position holder in global businesses?

Q: In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has: A) attribute diversity. B) marketing breadth. C) comparative advantage. D) layers of advantage. E) a "double diamond."

Q: Which type of self-service store offers a limited line of inexpensive items, often at a single price point? A) convenience store B) box store C) specialty store D) variety store E) leased department store

Q: Nokia's reversal of fortune at the hands of Apple and Google underscores the fact that today's executives must rethink the concept of the corporation if they wish to operationalize the concept of core competencies.

Q: Intel's loose brick was: A) it's narrow focus on complex microprocessors for PCs. B) demand for non-PC products. C) getting into the Smartphone market. D) unbeatable in computer market. E) developing new chips incorporating 3D technology.

Q: A large retail store that wants to offer a broader variety of products or services on site than it would otherwise carry would most likely make an arrangement with a(n) ________. A) leased department B) convenience store C) variety store D) factory outlet E) off-price retailer

Q: One of the characteristics of core competence is that it is difficult for competitors to imitate.

Q: Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of: A) building layers of advantage. B) loose bricks. C) changing the rules of engagement. D) collaborating. E) none of the above

Q: ________ carry a narrow assortment of product lines with deep assortments within those lines. A) Supermarkets B) Specialty stores C) Convenience stores D) Discount stores E) Off-price stores

Q: Yong Nam, CEO of LG, recently stipulated that Chinese would be required throughout the company. He explained that the speed of innovation that is required to compete in the world mandates that we must have seamless communication.

Q: Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of Hamel and Prahalad's framework for: A) quality advantage. B) positioning. C) competitive innovation. D) marketing management. E) innovation leadership.

Q: Which type of self-service store is a food store with a limited selection of items and few brands per item? A) convenience store B) box store C) specialty store D) variety store E) leased department store

Q: Indra Nooyi, chair and chief executive of PepsiCo, is among the corporate leaders who are not native to the headquarters country.

Q: Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of the competitive advantage framework developed by: A) W.E. Deming. B) Hamel and Prahalad. C) Porter. D) Drucker. E) D'Aveni.

Q: Which of the following is true about convenience stores? A) They carry mostly shopping goods. B) They charge lower-than-normal prices for shopping goods. C) They are reluctant to change their store designs and offerings to adjust to changes in the market. D) They create time utility for their customers. E) They create form, time, and place utility for their customers.

Q: Sigismundus W. W. Lubsen, the former president and CEO of Quaker Chemical Corporation, is a good example of today's cosmopolitan executive. Born in the Netherlands and educated in Rotterdam as well as New York, Lubsen speaks Dutch, English, French, and German.

Q: The key to maintaining competitive advantage, according to Dr. W.E. Deming as well as your textbook authors, is: A) being committed to constant improvement. B) being first to market with all products. C) outsourcing key components. D) challenging all market leaders. E) stressing low-price advantage in all areas.

Q: Retail stores are often classified on the breadth and depth of their merchandise assortment. The depth of the merchandise is the variety of choices for each specific product. Merchandise depth may be classified as ________ or ________. A) narrow; broad B) narrow; deep C) shallow; broad D) shallow; deep E) narrow; full

Q: The ability to speak at least one other foreign language is one difference between managers born and raised in the United States and those born and raised elsewhere.

Q: The flagship model is evident in the strategies of all but one of the following businesses: A) Ford. B) Volkswagen. C) IKEA. D) Benetton. E) Microsoft.

Q: Retail stores are often classified on the breadth and depth of their merchandise assortment. The breadth of the merchandise is the number of different lines available. The merchandise breadth may be classified as ________ or ________. A) narrow; broad B) narrow; deep C) shallow; broad D) shallow; deep E) narrow; full

Q: Uichiro Niwa, former president of Japan's ITOCHU Corp., took steps to ensure that more of the trading company's $115 billion in annual transactions were conducted online. He also radically changed the way he communicated with employees and began relying more on e-mail, a practice that until recently was virtually unknown in Japan.

Q: Which of the following is not an element of Rugman and D'Cruz's flagship model? A) key suppliers B) key customers C) key consumers D) selected competitors E) focused differentiation

Q: ________, such as Target and Kohl's, provide merchandise return and offer credit, but customers select merchandise without much assistance. A) Self-service retailers B) Full-service retailers C) Specialty retailers D) Off-price retailers E) Limited-service retailers

Q: Jack Welch encountered resistance at GE and said that, "The lower you are in the organization, the less clear it is that globalization is great."

Q: Which of the following is LEAST likely to happen at a full-service retailer? A) Customers have access to alteration services. B) Gift wrapping services are offered. C) Customers seek and receive helpful guidance from trained sales associates. D) Customers handle their own checkout process. E) Product consultants are available to answer specialized questions.

Q: Rugman and D'Cruz have developed an alternative framework to Porter's five forces model. The framework, based on business networks, is called: A) the differentiation model. B) strategic intent. C) the flagship model. D) the hypercompetition model. E) the Rugman & D'Cruz model.

Q: During his years as chief executive of GE, Jack Welch discovered that many employees resisted his ideas about the need to globalize the company.

Q: Which of the following is the number of different product lines available at a particular retail store? A) merchandise breadth B) inventory depth C) merchandise depth D) retail diversity E) point-of-sale range

Q: Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry. If analyzed in terms of Porter's generic strategies framework, such companies might be said to be pursuing competitive advantage via: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer differentiation.

Q: Former Whirlpool CEO David Whitwam described his own staffs' resistance in the early 1990s after he had approved the acquisition of Royal Philips Electronics' European home appliance division.

Q: Which of the following types of retailers place the most emphasis on salespeople assisting customers throughout the purchase process? A) limited-service retailers B) full-service retailers C) self-service retailers D) discount retailers E) off-price retailers

Q: Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry? A) cost leadership B) differentiation C) cost focus D) focused differentiation E) cost differentiation

Q: Carly Fiorina, former CEO of Hewlett-Packard, said in her 2002 commencement address at the Massachusetts Institute of Technology that leadership is not about hierarchy or title or status: It is about having influence and mastering change.

Q: Germany's Mittelstand companies have been extremely successful pursuing: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) cost differentiation.

Q: ________ is the basis of most discount operations. Retailers offering this level of service require customers to perform their own product selection and may require customers to handle their own checkout process. A) Limited-service B) Full-service C) Self-service D) Specialty service E) Wholesale service

Q: Before retiring at the end of 2008, Unilever Group Chief Executive Patrick Cescau wanted to reconnect the company with its heritage of sustainability and concern for the environment. This and other values reflect Unilever's philosophy of "doing well by doing good."

Q: Maytag has been called "the Rolls-Royce of washers and dryers." Maytag markets Neptune, a high-tech machine, at a substantially higher than regular washer price. This is an example of: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer focus.

Q: ________ are large stores that combine an economy supermarket with other lower-priced non-food merchandise. A) Variety stores B) Category killers C) Supercenters D) Box stores E) Convenience stores

Q: According to Prahalad and Hamel, a core competence has all of the following characteristics except: A) potential access to a wide variety of markets. B) a significant contribution to perceived customer benefits. C) it is easy for competitors to imitate. D) benefits to customers. E) it is difficult for competitors to imitate.

Q: Gillette markets its flagship MACH3 razor in more than 100 countries around the world. The MACH3 is available virtually everywhere that consumers shop for personal-care products; because of its advanced 3-blade design, the MACH3 typically costs more than other wet-shaving systems. Which generic strategy is evident in Gillette's global marketing effort of MACH3? A) cost leadership B) differentiation C) cost focus D) focused differentiation E) consumer focus

Q: A ________ is a set of related products a retailer offers. A) merchandise mix B) merchandise assortment C) merchandise breadth D) product depth E) product line

Q: When Brazilian Carlos Ghosn was installed as chief executive, he introduced two new words into Nissan's lexicon: A) beliefs and values. B) values and activities. C) speed and commitment. D) policies and speed. E) activities and commitment.

Q: Francisco Martnez is CFO of Comercial Mexicana SA, a retail chain in Mexico. Commenting on Walmart's entry into Mexico, Mr. Martnez notes, "I buy 20,000 plastic toys, and Walmart buys 20 million. Who do you think gets them cheaper?" Which strategic principles are evident in this comment? A) Walmart's buyer power and cost leadership B) Walmart's barriers to entry and differentiation C) Walmart's loose bricks and switching costs D) Walmart's focused differentiation and supplier power E) Walmart's discount policies for customers

Q: Describe the practice of retail borrowing and explain why it is unethical.

Q: Joseph Tripodi is Chief Marketing and Commercial Officer of: A) Gap (United States). B) Levi's (United States). C) L'Oreal (France). D) Coca-Cola (United States). E) SAP AG (Germany).

Q: Porter's four generic strategies for achieving competitive advantage are: A) price determination, cost leadership, product differentiation, distribution savings. B) cost leadership, product differentiation, cost challenger, product challenger. C) price leadership, product differentiation, price challenger, cost differentiation. D) cost leadership, product differentiation, cost focus, focused differentiation. E) cost leadership, product differentiation, consumer differentiation, focused differentiation.

Q: Give an example of how global retailers have adjusted their offerings to meet the needs of different populations around the world.

Q: Howard Stringer, a native of the United Kingdom, is Chairman of: A) Nissan Motor (Japan). B) Pearson PLC (Great Britain). C) Ford Motor Company (USA). D) Sony (Japan). E) Atlas Copco AB (Sweden).

Q: Suppose you are a sales representative for Advanced Micro Devices (AMD) in Japan. You are trying to convince Toshiba to buy your company's superfast Opteron microprocessor for its new laptop computer. Toshiba's representative seems interested, but finally does not place an order. Confidentially, the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD. Thinking about Intel's role in this scenario, which of the following elements of the five forces model is evident here? A) barriers to entry B) bargaining power of suppliers C) bargaining power of buyers D) threat of substitute products E) threat of new entrants

Q: Give an example of how the recent economic downturn affected retailers' strategies.

Q: Brazilian Carlos Ghosn is chief executive of: A) Nissan Motor (Japan). B) Pearson PLC (Great Britain). C) Ford Motor Company (USA). D) Pharmacia Corporation (USA). E) Atlas Copco AB (Sweden).

Q: Several factors can create intense rivalry among firms. These factors include all of the following factors except: A) firms focus on market share at the expense of others. B) firms feel pressure due to fixed costs and produce at full capacity. C) lack of differentiation in products and services. D) upward pressure on prices and profitability. E) absence of switching costs for customers.

Q: Pier 1 Imports started as a single store in San Mateo, California, offering low-priced beanbags, love beads, and incense to baby boomers. Today it sells quality home furnishings and decorative accessories. Why is Pier 1 Imports a perfect case study of the wheel-of-retailing hypothesis?

Q: Which of the following has an American woman as the chief executive? A) Nissan Motor (Japan) B) PepsiCo (USA) C) Ford Motor Company (USA) D) Pharmacia Corporation (USA) E) Atlas Copco AB (Sweden)

Q: Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive. Considering the elements of the five forces model this is an example of: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.

Q: Briefly explain the wheel-of-retailing concept.

Q: Inge G. Thulin is chief executive of: A) Nissan Motor (Japan). B) 3M (USA). C) Ford Motor Company (USA). D) Pharmacia Corporation (USA). E) Atlas Copco AB (Sweden).

Q: Factors which determine suppliers' ability to gain leverage over industry firms include all of the following except: A) large numbers and relatively few in number. B) suppliers' products or services are important to user firms. C) suppliers' products or services are highly differentiated. D) alternative products do not threaten suppliers' business. E) buyers preferences are highly differentiated.

Q: Indra K. Nooyi is chief executive of: A) Nissan Motor (Japan). B) PepsiCo (USA). C) Ford Motor Company (USA). D) Pharmacia Corporation (USA). E) Atlas Copco AB (Sweden).

Q: Dell's factories can assemble a complete PC in 3 minutes. With a build-to-order strategy at the heart of its business model, Dell's sales staff maintains close ties with customers. This approach represents which aspect of the Porter's five forces model? A) rivalry among competitors B) bargaining power of buyers C) threat of substitute products D) threat of new entrants E) bargaining power of suppliers

Q: When a cashier at the local grocery store purposefully fails to scan all of the items purchased by her friends and allows her friends to leave the store without paying for all of their items, the cashier is engaged in sweethearting.

Q: The ability to speak foreign languages is one difference between managers born and raised in the United States and those born and raised elsewhere. Which of the following is true and reflects this statement? A) There are 200 million Chinese children studying English. B) There are 24 million American children studying Chinese. C) There are 200 million Indian children studying Chinese. D) Chinese managers study English as much as Chinese. E) There are equal numbers of American and Chinese children studying English.

Q: In the tech world, about 90% of the world's nearly one billion PCs run on Microsoft's operating systems and 80% use Intel's microprocessors. This represents which aspect of the Porter's five forces model? A) bargaining power of suppliers B) bargaining power of buyers C) threat of substitute products D) rivalry among competitors E) threat of new entrants

Q: Failing to provide equal access to customers who appear economically disadvantaged is both unethical and illegal.

Q: Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company. His reasons for this action included all of the following statements except: A) the need to have seamless communication. B) not to depend on a small group of people. C) impede information sharing. D) facilitate decision making. E) utilizing everybody's wisdom.

Q: The retail industry has been largely unaffected by the trend of the world becoming "flatter."

Q: Intel achieved success by using "Intel Inside" advertising campaign and logo that appears on many brands of PCs. This is an example of barrier to entry classified as: A) new capacity. B) product differentiation. C) competitor response. D) new approaches to customer needs. E) distribution channels.

Q: Demographic changes have motivated marketers to make changes in the retailing industry.

Q: In addition to "selling" their vision, top management at both Whirlpool and GE face the formidable task of building: A) their company stature. B) physical layout and design. C) a cadre of globally oriented managers. D) a cadre of loyal customers. E) access to distribution channels.

Q: New entrants to an industry bring all of the following except: A) new capacity. B) desire to gain market share. C) desire to gain market position. D) new approaches to customer needs. E) decline in per-unit product costs.