Strategic Planning and Management Process

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What is a low-risk method of expanding into a new market mentioned in the text?

Geographic expansion

Product diversification

Market research

Franchising (correct)

Which type of diversification involves a company creating a product for a completely different industry and market?

Geographic diversification

What does a franchisee typically pay the franchisor in a franchising agreement?

A commission on sales

A percentage of profits

An ongoing royalty fee

An initial fee (correct)

How can a business avoid typical roadblocks to expansion mentioned in the text?

Conduct in-depth market research Signup and view all the answers

What is the purpose of geographic expansion for businesses according to the text?

To increase brand awareness Signup and view all the answers

When might diversification be risky for a business?

When not done well Signup and view all the answers

What is the first step in the strategic planning process?

Strategy Formulation Signup and view all the answers

What do strategic objectives in an organization refer to?

Specific performance targets Signup and view all the answers

Why do executives consider several alternatives before choosing a course of action?

To ensure a high possibility of success Signup and view all the answers

What does strategic planning call for according to the text?

Upper-level management involvement Signup and view all the answers

Which part of the organization's statements is used to extract key objectives for strategy formulation?

Mission and vision statements Signup and view all the answers

What is the primary focus of positive outcomes in strategic planning as mentioned in the text?

Improving bottom-line results Signup and view all the answers

What should customers do in the stage of Evaluation of Alternatives?

Compare products or services to other services that meet their needs. Signup and view all the answers

What is a key consideration for customers in the Evaluation of Alternatives stage?

Determining if the advantage outweighs the cost. Signup and view all the answers

How should technopreneurs help customers in making a purchase decision?

Reiterate the value and benefits of the product or service. Signup and view all the answers

What action indicates that customers are ready to make a purchase according to the text?

They have compared and analyzed the available offers. Signup and view all the answers

Why is it important for customers to be familiar with competitor's products and service prices?

To make informed decisions. Signup and view all the answers

How has globalization impacted marketing?

Streamlined the marketing process globally. Signup and view all the answers

What is a critical aspect for technopreneurs in Stage 4: Make the purchase?

Reiterating the value and benefits of the product or service. Signup and view all the answers

What is one of the benefits of globalization mentioned in the text?

Technology advances and innovation. Signup and view all the answers

How do businesses benefit from globalization in terms of marketing?

By considering language, culture, and financial situation globally. Signup and view all the answers

What is a challenge of globalization mentioned in the text?

Different marketing and communication approaches. Signup and view all the answers

Why has globalization made marketing more inclusive?

By appealing to international customer needs and circumstances. Signup and view all the answers

Which aspect of globalization has led to access to new talented and highly skilled workers?

International employee expectations. Signup and view all the answers

What is the formula for markup pricing mentioned in the text?

(1 − desired return on sales) × Unit cost Signup and view all the answers

Which pricing strategy involves setting a price to achieve a specific rate of return on investment?

Target-return pricing Signup and view all the answers

What impacts how a business sets prices significantly?

Value pricing Signup and view all the answers

Which factor influences the perceived value of a product according to the text?

Warranty quality Signup and view all the answers

In value pricing, what do businesses base their prices on?

Customer's perceived value Signup and view all the answers

What does value pricing aim to do for customers?

Provide high-quality goods at a fair price Signup and view all the answers