Test on Implementing Business Strategy Across Functions

Question 1: Is failing to appropriately segment markets a contributing factor to the low success rate of strategy implementation?

A. Ano

B. Ne

Explanation: Failing to appropriately segment markets is explicitly mentioned as one of the reasons for the low success rate of strategy implementation.

Question 2: Which of the following statements accurately describe aspects of strategy implementation, according to the provided text?

A. Strategy implementation frequently has a low success rate, with less than 10 percent of formulated strategies being successfully implemented.

B. It is primarily successful when an organization focuses solely on reducing costs.

C. Individuals who did not participate in strategy formulation may resist implementation efforts.

D. Paying too much for a new acquisition is a common reason for the low success rate of strategy implementation.

Explanation: The study materials state that 'Less than 10 percent of strategies formulated are successfully implemented!' making option 0 correct. It also mentions, 'individuals may not have participated in the strategy-formulation process at all and may not appreciate or understand... nor accept the work required for strategy implementation. There may even be foot dragging or resistance on their part,' confirming option 2. Additionally, 'paying too much for a new acquisition' is listed as a reason for the low success rate, making option 3 correct. Option 1 is incorrect because the text states strategies are implemented successfully only when an organization 'markets its goods and services effectively and raises needed working capital,' not solely by reducing costs.

Question 3: One of the five steps in product positioning involves conducting a comprehensive survey of customer satisfaction with existing products.

A. Ano

B. Ne

Explanation: The study materials outline five steps for product positioning: 1. Select key criteria, 2. Diagram a two-dimensional map, 3. Plot major competitors, 4. Identify competitive areas (niches), and 5. Develop a marketing plan. Conducting a comprehensive survey of customer satisfaction is not listed as one of these five specific steps.

Question 4: According to the study materials, which of the following is a key aspect of successful social media marketing for customer engagement?

A. Primarily using social media to inform consumers about product features.

B. Enabling customers to interact with the firm and soliciting their suggestions.

C. Limiting customer conversations to only positive feedback.

D. Focusing the company website exclusively on company achievements and information.

Explanation: The study materials state that marketing has evolved to be more about building a two-way relationship with consumers, and marketers must get customers involved, enable interaction on the company website, and solicit suggestions in terms of product development, customer service, and ideas. This aligns with enabling customers to interact and soliciting their suggestions. The text also indicates the company website must be about the customer too, contradicting options that limit interaction or focus solely on the company.

Question 5: Is goodwill considered a favorable asset to have on a company's balance sheet?

A. Ano

B. Ne

Explanation: The study materials explicitly state that 'Goodwill is not a good thing to have on a balance sheet.'