TEST BANK FOR Strategic Market Management, 12th Edition David A. Aaker, Christine Moorman
Chapter 1 – Strategic Market Management: An Overview
Essay Question:
1.1
Describe and give examples of a well-developed business strategy including the four
characteristics.
Objective Questions:
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.
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.