Fred r david – strategic management, 13th edition ch09

Exam
Name___________________________________
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1)


Less than 2 percent of formulated strategies are successfully implemented.
1)
_______
2)


Given that most information on individuals is available online, the extent to which companies can track
individuals' movements on the Internet is not a marketing issue of great concern to consumers today.
2)
_______
3)


Market penetration can be defined as the subdividing of a market into distinct subsets of customers
according to needs and buying habits.
3)
_______
4)


The marketing mix component factors are product, place, promotion, price and people.
4)
_______
5)

With market segmentation, a firm can better operate with limited resources.
5)
_______
6)


The most common bases for segmenting markets are geographic and demographic.
6)
_______
7)


Segmentation often reveals that large, random fluctuations in demand actually consist of several small,
predictable, and manageable patterns.
7)
_______
8)


Segmenting industrial markets is generally simpler and easier than segmenting consumer markets.
8)
_______
9)


Generally, market segmentation is followed by a market diversification strategy.
9)
_______
10)

After segmenting markets so that a firm can target particular customer groups, the next step is to find out
what customer groups want and expect.
10)
______
11)


In general, the Internet makes market segmentation easier.
11)
______
12)


Multidimensional scaling involves examining three or more criteria simultaneously in a product-positioning
analysis.
12)
______
13)


A firm can usually serve two or more market segments with the same strategy.
13)
______
14)


It is acceptable for firms to create expectations that exceed the service that can or will be offered, if it will
attract customers.

14)
______
15)


Return on assets is the most widely used technique for determining whether debt, stock, or a combination
of debt and stock is the best alternative for raising capital to implement strategies.
15)
______
16)


Besides net profit from operations and the sale of assets, the two basic sources of funds for an ongoing
enterprise are debt and equity.
16)
______
17)


In low earning periods, too much debt in the capital structure of an organization can endanger
stockholders' returns and jeopardize company survival.
17)
______
18)


Additional capital is often required for successful strategy implementation.
18)
______
19)

An EPS/EBIT chart can be constructed to determine the breakeven point, where one financing alternative
becomes more attractive than another.
19)
______
20)


A reason for concern over the dilution of company stock is a possible hostile takeover.
20)
______
21)


When additional debt is issued to finance implementation of strategy, both ownership and control of the
enterprise are diluted.
21)
______
22)


In times of depressed stock prices, stock issuances often prove to be the most suitable alternative for
obtaining capital.
22)
______
23)


A projected financial analysis can be used to forecast the impact of various implementation decisions.

23)
______
24)


When performing pro forma financial analyses, the balance sheet should be prepared before the income
statement.
24)
______
25)