10.

Organizations can identify potential risks and

develop strategies to manage or avert them. Risk
STRATEGIC BUSINESS ANALYSIS Management
Instructions: Identify the correct term being
described in each item. Write your answer on the 11. Aids companies in spotting trends and shifts in
space provided.​ consumer behavior, enabling them to plan their
strategies accordingly. Alignment with Market Trends

1. It is a pattern of activities that seek to achieve the 12. Helps leaders identify critical areas for
objectives of the organization over the long term, investment, ensuring that time and money are
which achieves advantage in a changing environment directed towards initiatives with the highest potential
through its configuration of resources and for return. Optimized Resource Allocation
competencies with the aim of fulfilling owner’s
13. Strategic Business Analysis is not just about
expectations. . Strategy
addressing immediate concerns; it also helps
2. It is comprehensive process that involves the businesses plan for the future by setting long-term
assessment and interpretation on internal and goals and developing sustainable strategies.​
external factors affecting an organization.​ . Long-Term Vision and Sustainability
. Strategic Business Analysis
14. Fosters a culture of continuous improvement by
3. It aims to align business objectives with market promoting regular assessment of strategies and
trends, consumer behavior, and competitive performance to ensure organizations remain relevant
dynamics, facilitating effective decision-making and and competitive. . Continuous Improvement
planning. . Alignment of business objectives
15. Help organizations understand their
4. It is a process of gathering data from both internal environment, make informed decisions, and achieve
and external sources. Data Collection long-term objectives. . Strategic Business Analysis
Tools and Techniques
5. Analyzing the collected data to identify patterns,
trends, and insights that can inform business strategy. 16. These tools guide planning, resource allocation,
Data Interpretation performance measurement, and competitive
positioning. Planning and Competitive Positioning
6. It is a process of developing long-term goals and
strategies based on insights gained from the analysis. 17. Refers to the overall plan or long-term approach
. Strategic Planning used to achieve organizational goals, involving
market analysis, resource allocation, and adaptation
7. Tracking the effectiveness of implemented to change. Strategy
strategies and making adjustments as necessary
based on ongoing analysis and feedback.​ 18. Refers to the specific methods or actions used to
. Implementation Monitoring implement the strategy effectively. Technique

8. By providing detailed insights into market 19. Focuses on identifying and satisfying customer
conditions and internal capabilities, businesses can needs while ensuring profitability and building
make better decisions regarding resource allocation, long-term customer relationships rather than
product development, and market expansion. one-time sales. Marketing Concept
Informed Decision-Making

9. Enables organizations to identify their unique

20. Specific tactics such as advertising, social media
strengths and weaknesses in relation to competitors,
marketing, promotions, and email campaigns used to
allowing them to capitalize on opportunities and
attract attention, generate interest, and convert
mitigate threats. . Enhanced Competitive Advantage
potential customers into buyers. Marketing 35. Raw materials and inputs used in production.​
Techniques Materials

21. A company’s overall plan for reaching target 36. Focuses on recording and reporting financial
customers and persuading them to purchase its transactions for external users such as investors and
products or services, including value proposition, shareholders.​
brand messaging, target market, and positioning.​ . Financial Accounting
Marketing Strategy
37. Used internally by managers for planning,
22. A plan that outlines how an organization will budgeting, performance evaluation, and
achieve its goals and objectives and guides decision-making.​
decision-making, resource allocation, and Managerial Accounting
coordination among departments. Business Strategy
38. Provide relevant financial and non-financial
23. Defines the organization’s direction and goals.​ information that helps management control
Vision and Objectives operations and achieve organizational objectives.​
Managerial Accounting Techniques
24. Guides ethical behavior and decision-making.​
Core Value

25. Assesses strengths, weaknesses, opportunities,

and threats. SWOT Analysis

26. Specifies operational actions to achieve objectives.

Tactics

27. Identifies and assigns needed resources.​

Resource Allocation

28. Tracks performance against goals.​

Measurement and Control

29. Involves planning, organizing, and controlling the

production process by efficiently managing inputs
such as raw materials, labor, and capital to produce
quality outputs. Production Management

30. Areas that production management works closely

with. . Operations and Supply Chain Management

31. Workforce managing and operating production.

Men

32. Equipment and technology used in production.

Machines

33. Processes and techniques applied in production.​

Methods

34. Financial resources used in production.​

Money
​ changes like technological shifts or competitor
moves.
CORPORATE OBJECTIVES, STRATEGY, AND
STRUCTURE Guides resource allocation 14. A well-crafted strategy
Instructions: Identify the correct term being guides how money, people, and assets are deployed.
described in each item. Answers are provided for
Consistent decision-making 15. A well-crafted
reference. Read each statement carefully.​
strategy enables this across organizational levels.

Cost Leadership 16. A competitive strategy focused

Corporate objectives 1. Corporate objectives are
on becoming the lowest-cost producer.
specific, measurable, time-bound targets that support
a company’s long-term goals and mission. Differentiation 17. A competitive strategy focused on
offering unique products or services.
Guide decision-making 2. Corporate objectives are
vital because they guide decision-making. Focus 18. A competitive strategy targeting a specific
market segment.
Align stakeholders 3. Corporate objectives are vital
because they align stakeholders. Growth Strategy 19. A strategy focused on expansion
and increased market presence.
Provide benchmarks for performance 4. Corporate
objectives are vital because they provide benchmarks Stability Strategy 20. A strategy focused on
for performance. maintaining current operations.

Support resource allocation 5. Corporate objectives Retrenchment Strategy 21. A strategy focused on
are vital because they support resource allocation. reducing operations or costs.

Financial Objectives 6. Objectives related to Combination Strategy 22. A strategy that combines
profitability, revenue, and financial performance. multiple strategic approaches.

Market Objectives 7. Objectives related to market Corporate Level Strategy 23. Organization-wide
share, positioning, and customer reach. direction and scope.

Operational Objectives 8. Objectives related to Business Level Strategy 24. How each business unit
efficiency and internal processes. competes.

Social/Environmental Objectives 9. Objectives related Functional Level Strategy 25. Operational plans of
to social responsibility and environmental departments like marketing or finance.
sustainability.
Operational Strategy 26. Specific short-term actions
Human/Individual Objectives 10. Objectives related to implement higher-level strategies.
to employee development and satisfaction.
Organizational structure 27. Organizational structure
Strategy 11. Strategy is the long-term direction and refers to the framework through which roles,
scope chosen by an organization to achieve its goals responsibilities, authority, and communication flow
by aligning its resources with its environment. are defined within an organization.

Competitive advantage 12. A well-crafted strategy Clear decision-making pathways 28. Organizational
creates this in the marketplace. structure matters because it ensures this.

Respond to external changes 13. A well-crafted Supports strategy execution 29. Organizational
strategy helps organizations respond to external structure matters because it supports this.
Facilitates communication 30. Organizational Enhance competitive advantage 47. Strategic
structure matters because it facilitates this. planning enhances this by anticipating change.

Efficiency and innovation 31. Organizational Big Data 48. Big Data refers to large, complex datasets
structure matters because it affects this. generated from internal and external sources that are
too extensive or rapid for traditional processing
Functional Structure 32. Departments organized by methods.
specialized tasks such as marketing and finance.
Enhancing decision quality 49. Big Data replaces gut
Divisional Structure 33. Divisions organized by instincts with data-driven choices.
product, market, or geography.
Monitoring performance 50. Big Data enables
Matrix Structure 34. Structure characterized by dual real-time tracking of KPIs and strategic outcomes.
reporting lines.
Predicting trends 51. Big Data identifies patterns in
Flat Structure 35. Structure with minimal hierarchy markets and customer behavior.
and more teamwork.
Supporting scenario planning 52. Big Data evaluates
Hybrid Structure 36. Structure that is a mix of potential future outcomes.
functional and divisional forms.
Strategic information systems 53. Systems that
Strategic planning 37. Strategic planning is a integrate big data to provide dashboards and
systematic process where an enterprise defines its analytics for executives in strategy formulation and
direction, allocates resources, and plans actions to monitoring.
achieve objectives in the long term.

Vision and Mission 38. Elements that guide the

purpose and future aspirations of an organization.

Environmental Analysis 39. Analysis of internal and

external environments.

Setting Objectives 40. The process of establishing

SMART goals.

Strategy Formulation and Choice 41. Defining the

best strategic approaches.

Resource Allocation 42. Budgeting and personnel

alignment.

Implementation and Monitoring 43. Tracking

performance using KPIs.

Focus efforts on goals 44. Strategic planning helps

businesses focus efforts on goals and long-term
direction.

Improve adaptability 45. Strategic planning helps

businesses adapt in rapidly changing markets.

Increase coordination 46. Strategic planning helps

increase coordination across functions.
STRATEGIC MARKETING ANALYSIS SWOT Analysis​
8. A framework that examines a company's Strengths,
Instructions: Identify the correct term being Weaknesses, Opportunities, and Threats.
described in each item.
Strengths​
9. Internal factors that give a company a competitive
STRATEGIC MARKETING ANALYSIS – OVERVIEW edge.

Strategic Marketing Analysis​ Weaknesses​

1. Strategic marketing analysis is a systematic 10. Internal factors that put a company at a
process of examining a company's internal and disadvantage.
external environment to identify opportunities, Opportunities​
threats, strengths, and weaknesses that will inform 11. External factors that a company can leverage to
marketing strategies. its advantage.
Strategic marketing​ Threats​
2. Strategic marketing involves analyzing the market, 12. External factors that could negatively impact a
identifying opportunities, and developing a plan to company.
achieve competitive advantage.

Marketing budgeting​
3. Budgeting in marketing is the process of allocating PESTEL ANALYSIS
financial resources to different marketing activities to
achieve marketing goals. PESTEL Analysis​
13. A framework that analyzes the
macro-environmental factors influencing a business:
Political, Economic, Sociological, Technological,
KEY COMPONENTS AND PURPOSE Environmental, and Legal.
Market Analysis​ Political factors​
4. A component of strategic marketing analysis that 14. Government regulations, trade policies, and
examines market conditions. political stability.
Internal Analysis​ Economic factors​
5. A component of strategic marketing analysis that 15. Interest rates, inflation, economic growth, and
examines a company’s internal environment. consumer spending.
Competitive Analysis​ Sociological factors​
6. A component of strategic marketing analysis that 16. Cultural norms, demographics, lifestyle trends,
examines competitors and competitive forces. and consumer attitudes.
Develop a marketing strategy​ Technological factors​
7. The purpose of strategic marketing analysis to 17. Technological advancements, innovation, and
align with overall business objectives, maximize automation.
resource utilization, and achieve competitive
advantage. Environmental factors​
18. Climate change, environmental regulations, and
resource availability.
TOOLS AND APPROACHES TO STRATEGIC MARKET
ANALYSIS
Legal factors​ Market Sizing​
19. Laws and regulations related to business 29. Estimating the potential demand and revenue for
operations, consumer protection, and labor. a product or service.

Customer Journey Mapping​

30. Visualizing the customer experience to identify
PORTER’S FIVE FORCES pain points and opportunities for improvement.
Porter’s Five Forces​ Benchmarking​
20. A framework that analyzes the competitive 31. Comparing a company’s performance against its
intensity and attractiveness of an industry. competitors.
Threat of new entrants​ Scenario Planning​
21. How easy it is for new companies to enter the 32. Developing different possible future scenarios to
market. prepare for various outcomes.
Bargaining power of suppliers​ Competitive Intelligence​
22. The influence suppliers have on prices and terms. 33. Gathering and analyzing information about
Bargaining power of buyers​ competitors to understand their strategies and
23. The influence customers have on prices and identify threats or opportunities.
terms.

Threat of substitute products or services​ PRODUCT LIFE CYCLE

24. The availability of alternative products or
services that can satisfy customer needs. Product Life Cycle​
34. The stages a product goes through from its
Competitive rivalry​ introduction to the market until it is eventually
25. The intensity of competition among existing removed.
players in the market.
Introduction​
35. The stage where the product is launched, sales
VALUE CHAIN ANALYSIS are low, costs are high, and focus is on awareness and
demand creation.
Value Chain Analysis​
26. A framework that examines the activities a Growth​
company performs to create value for its customers. 36. The stage where sales increase rapidly,
competition emerges, and profits start to grow.
Primary Activities​
27. Activities directly involved in the production, Maturity​
sales, and delivery of a product or service. 37. The stage where sales growth slows, competition
is intense, and strategies focus on extending the
Support Activities​ product’s life.
28. Activities that support primary activities such as
procurement, technology development, human Decline​
resource management, and infrastructure. 38. The stage where sales and profits decline as the
product loses popularity.

OTHER TOOLS AND APPROACHES

PRODUCT PORTFOLIO MATRIX (BCG MATRIX)
Product Portfolio Matrix​ Marketing Strategies​
39. A tool used to analyze a company’s products 50. Outlining approaches such as content marketing,
based on market growth rate and relative market social media marketing, or advertising.
share.
Marketing Tactics​
Stars​ 51. Detailing specific actions such as campaigns, blog
40. Products with high market share and high market posts, or ads.
growth requiring significant investment.
Budget Allocation​
Cash Cows​ 52. Determining how much money will be spent on
41. Products with high market share in a low-growth each marketing activity.
market generating substantial cash flow.
Timeline and Schedule​
Question Marks​ 53. Establishing a timeline and tracking progress
42. Products with low market share in a high-growth against goals.
market requiring significant investment.
Evaluation and Measurement​
Dogs​ 54. Determining how marketing effectiveness will be
43. Products with low market share and low market measured.
growth that may be considered for divestiture.

IMPORTANCE OF A MARKETING BUDGET

COMPREHENSIVE STRATEGIC MARKETING
BUDGET Resource Allocation​
55. Allocating resources effectively across different
Marketing budgeting​ channels and activities.
44. The process of allocating financial resources to
marketing activities such as advertising, promotions, Spending Control​
public relations, and digital marketing. 56. Preventing overspending and ensuring financial
limits are followed.
Setting Goals​
45. Defining clear marketing objectives. Performance Tracking​
57. Tracking spending against results to identify
Allocating Resources​ effectiveness.
46. Deciding how much to spend on different
marketing activities. ROI Optimization​
58. Optimizing marketing efforts for better return on
Tracking and Evaluation​ investment.
47. Monitoring marketing expenses and performance.
Justification​
59. Using the budget to justify marketing spending to
stakeholders and management.
MARKETING PLAN AND BUDGET – KEY
COMPONENTS

Market Analysis​ BUDGETING PROCESS IN MARKETING

48. Understanding target audience, competition, and
market trends. Review Past Performance​
60. Analyzing previous marketing efforts to identify
Marketing Goals​ what worked and what did not.
49. Defining specific, measurable, achievable,
relevant, and time-bound goals.
Set Clear Goals​
61. Defining marketing goals aligned with overall
business goals. PROMOTION MIX – DEFINITION

Identifying Marketing Channels​ Promotion Mix​

62. Determining which channels will be used to reach 1. A combination of marketing methods including
the target audience. advertising, sales, public relations, and direct
marketing to achieve a specific marketing goal.
Estimate Cost​
63. Researching costs associated with marketing Promotion Mix​
activities. 2. Refers to the specific combination of the tools,
channels, and processes used to promote offerings.
Allocate Budget​
64. Distributing the budget across channels and
activities. ELEMENTS OF PROMOTION MIX
Track and Adjust​ Advertising​
65. Monitoring spending and results and adjusting 3. An element of the promotion mix involving paid,
the budget based on performance. non-personal presentation and promotion of goods
and services.

Personal Selling​
4. An element of the promotion mix involving
face-to-face interaction between a company
representative and a customer.

Sales Promotion​
5. An element of the promotion mix involving
short-term incentives to encourage purchase.

Public Relations​
6. An element of the promotion mix that
communicates a company’s services and image to the
public.

Direct Marketing​
7. An element of the promotion mix that targets
customers directly without intermediaries.

ADVERTISING

Advertising​
8. Any paid form of non-personal presentation and
promotion of goods and services by an identified
sponsor in exchange for a fee.
PROMOTION MIX: PUSH STRATEGY & PULL
STRATEGY Television advertisements​
9. A common form of advertising.
Instructions: Identify the correct term being
described in each item.
Newspaper advertisements​ News conferences​
10. A common form of advertising. 22. An example of public relations activity.

Direct mail​ Press releases​

11. A common form of advertising. 23. An example of public relations activity.

Radio advertisements​
12. A common form of advertising.
DIRECT MARKETING
Magazine advertisements​
13. A common form of advertising. Direct Marketing​
24. A personal promotional approach targeting
Online advertisements​ customers directly through various communication
14. A common form of advertising. methods.

In-person promotions​
25. A method used in direct marketing.
PERSONAL SELLING
Catalogs​
Personal Selling​ 26. A method used in direct marketing.
15. A face-to-face interaction between the company
representative or salesperson and the customer with E-mail​
the objective of influencing purchase. 27. A method used in direct marketing.

Telephone calls​
28. A method used in direct marketing.
SALES PROMOTION
Mail​
Sales Promotion​ 29. A method used in direct marketing.
16. Short-term incentives designed to encourage
people to buy a product or service. Direct Marketing​
30. A strategy that allows companies to reach
Discounts​ customers directly without intermediaries or paid
17. An example of sales promotion. media.
Coupons​
18. An example of sales promotion.
PROMOTION MIX DECISION QUESTIONS
Rebates​
19. An example of sales promotion. Effective communication method​
31. A question marketers consider when determining
Games and contests​ how to inform customers.
20. An example of sales promotion that the public can
participate in. Marketing methods​
32. A question marketers consider when selecting
promotional tools.
PUBLIC RELATIONS Target audience​
Public Relations​ 33. A question marketers consider when deciding
21. A type of promotion that communicates a whom promotion efforts should be directed to.
company’s services and image to the public.
Marketing budget​ Product type​
34. A question marketers consider when allocating 44. A factor that affects the promotion mix.
funds to promotional tools.
Product usage​
45. A factor that affects the promotion mix.

OBJECTIVES OF PROMOTION MIX Target market segment​

46. A factor that affects the promotion mix.
Increase demand​
35. An objective of promotion mix used across the Availability of funds​
product life cycle to boost sales. 47. A factor that affects the promotion mix.

Present information about the product​ Marketer’s competence​

36. An objective that helps consumers understand 48. A factor that affects the promotion mix.
product features and benefits.

Differentiate the product​

37. An objective that distinguishes a product from PUSH STRATEGY
competitors. Push Strategy​
49. A strategy that involves taking the product
directly to the customer at the point of purchase.
WHY PROMOTION MIX IS IMPORTANT
Push Strategy​
Effectiveness of promotional campaigns​ 50. A strategy in which a firm attempts to take its
38. An importance of promotion mix related to products to consumers by pushing them.
campaign performance.

Audience segmentation and targeting​

39. An importance of promotion mix related to ADVANTAGES OF PUSH STRATEGY
reaching the right audience. Builds distribution channels​
Customer communication​ 51. An advantage of push strategy.
40. An importance of promotion mix related to Boosts visibility​
improving communication with customers. 52. An advantage of push strategy.
Customer awareness​ Predictable demand​
41. An importance of promotion mix related to 53. An advantage of push strategy.
keeping subscribers and customers informed.
Economies of scale​
Brand differentiation​ 54. An advantage of push strategy.
42. An importance of promotion mix related to
standing out from competitors.

Sales and relationships​ DISADVANTAGES OF PUSH STRATEGY

43. An importance of promotion mix related to
increased sales and stronger customer relationships. Active sales team requirement​
55. A disadvantage of push strategy.

Weak negotiating power​

FACTORS AFFECTING PROMOTION MIX 56. A disadvantage of push strategy.
Difficult demand forecasting​ Advertising​
57. A disadvantage of push strategy. 68. A pull strategy tactic.

High costs and short-term focus​ Mass media promotion​

58. A disadvantage of push strategy. 69. A pull strategy tactic.

Social media networks​

70. A pull strategy tactic.
PULL STRATEGY
Celebrity endorsements​
Pull Strategy​ 71. A pull strategy tactic.
59. A strategy that motivates customers to actively
seek out a brand. Word-of-mouth referrals​
72. A pull strategy tactic.
Pull Strategy​
60. A strategy described as “getting the customer to Customer relationship management​
come to you.” 73. A pull strategy tactic.

Brand visibility​ Sales promotions and discounts​

61. A requirement of pull strategy developed through 74. A pull strategy tactic.
mass media advertising.
Email marketing​
75. A pull strategy tactic.

HOW PULL STRATEGY WORKS

Direct-to-consumer marketing​ ADVANTAGES OF PULL STRATEGY

62. How companies market under pull strategy.
Consumer loyalty​
Advertising​ 76. An advantage of pull strategy related to direct
63. A method used to build brand visibility in pull contact with customers.
strategy.
Bargaining power​
Social media​ 77. An advantage of pull strategy with retailers and
64. A method used to build brand visibility in pull distributors.
strategy.
Brand equity​
Word-of-mouth​ 78. An advantage of pull strategy focused on
65. A method used to build brand visibility in pull long-term product value.
strategy.
Reduced outbound pressure​
Retailer demand​ 79. An advantage of pull strategy where consumers
66. A result of increased consumer demand in pull actively search for the product.
strategy.
Consumer feedback​
Supply response​ 80. An advantage of pull strategy related to testing
67. A natural outcome of consumer demand in pull product acceptance.
strategy.

DISADVANTAGES OF PULL STRATEGY

PULL STRATEGY TACTICS
High brand loyalty requirement​
81. A disadvantage of pull strategy.
Longer lead time​ Segmentation implementation​
82. A disadvantage of pull strategy due to consumer 94. A strategy applied when developing a
comparison. promotional mix.

Competitive market difficulty​

83. A disadvantage of pull strategy in competitive
markets. USING THE PROMOTIONAL MIX

Strong marketing effort requirement​ Target audience establishment​

84. A disadvantage of pull strategy. 95. The first step in using the promotional mix.

Create advertisements​
96. A step in using the promotional mix.
ROLES OF MANAGEMENT ACCOUNTANT
Public relations usage​
Production budgets and inventory costs​ 97. A step in using the promotional mix.
85. A role of management accountants in push
strategy. Sales promotion utilization​
98. A step in using the promotional mix.
Demand forecasting efficiency​
86. A role of management accountants during Direct marketing consideration​
large-scale manufacturing. 99. A step in using the promotional mix.

Real-time data monitoring​

87. A role of management accountants in pull
strategy.

Profitability and waste metrics​

88. A role of management accountants when
responding to customer-driven orders.

DEVELOPING AN EFFECTIVE PROMOTIONAL MIX

Identify target audience​

89. A step in developing an effective promotional mix.

Five P’s rule​

90. A guideline followed when developing a
promotional mix.

Useful information​
91. A principle of providing value in promotion.

Appropriate marketing channels​

92. A consideration when developing a promotional
mix.

Right promotion mix elements​

93. A requirement for effective promotion.
PRICING METHODS AND STRATEGIES Resource Mobilization​
11. A pricing objective related to generating funds for
Instructions: Identify the correct term being business operations.
described in each item.

BASIC PRICING POLICIES

PRICE – DEFINITION
Cost Oriented Pricing Policy​
Price​ 12. A pricing policy where prices are determined
1. The amount of money which is needed to acquire based on costs incurred.
in exchange of some combined assortment of a
product and its accompanying services. Demand Oriented Pricing Policy​
13. A pricing policy where demand is the pivotal
Price (for seller)​ factor.
2. The quantity of money received by the firm or
seller for its products. Competition Oriented Pricing Policy​
14. A pricing policy where prices are fixed after
Price (for buyer)​ considering competitors’ prices.
3. Monetary sacrifice; hence his perception of the
value of the product.

COST ORIENTED PRICING POLICY – METHODS

PRICING OBJECTIVES Cost Plus Pricing​

15. A method where the price covers the entire cost
Ensuring Target Return​ incurred to assure no loss.
4. A pricing objective focused on achieving a
predetermined return. Target Pricing​
16. A method followed by manufacturers who fix the
Preventing Competition​ target return on the total cost.
5. A pricing objective aimed at discouraging
competitors from entering the market. Break Even Pricing​
17. A method that determines the level of operations
Market Share​ where total revenue equals total expenses.
6. A pricing objective that focuses on increasing the
company’s portion of total market sales. Break Even Analysis​
18. A system of determining the point of zero profit.
Maximizing the Profit​
7. A pricing objective that focuses on earning the
highest possible profit.
DEMAND ORIENTED PRICING POLICY
Ability of the customers​
8. A pricing objective based on customers’ purchasing Demand Oriented Pricing Policy​
power. 19. A pricing policy where price is fixed by making
adjustments according to market conditions.
Profit Stability​
9. A pricing objective focused on maintaining Demand​
consistent profits. 20. The pivotal factor in demand oriented pricing
policy.
Establishing the Price​
10. A pricing objective concerned with setting an
acceptable market price. COMPETITION ORIENTED PRICING POLICY
Competition Oriented Pricing Policy​ Tariffs and Trade Policies​
21. A pricing policy where firms consider competitive 31. A factor that affects pricing through taxes and
price structures before fixing prices. trade rules.

Below competition pricing​ Government Regulations​

22. A deliberate pricing policy of selling below 32. A factor that affects pricing through laws and
competitors. controls.

Above competition pricing​ Local Competition​

23. A deliberate pricing policy of selling above 33. A factor that affects pricing based on domestic
competitors. competitors.

In line with competition pricing​ Cultural Differences​

24. A deliberate pricing policy of selling at the same 34. A factor that affects pricing due to consumer
level as competitors. preferences and traditions.

PRICING STRATEGIES: TOOLS AND TECHNIQUES IMPLEMENTING PRICING STRATEGIES IN AN

INTERNATIONAL MARKET
Economy Pricing​
25. A “no-frills” low-price strategy that minimizes Cost-Based Pricing​
marketing and production costs. 35. A method where price is set by determining all
costs including production, shipping, tariffs, and
Penetration Pricing​ taxes.
26. A strategy that sets a low initial price to rapidly
attract a large number of customers. Market-Oriented Pricing​
36. A method where prices are determined by
Skimming Pricing​ competitors and customer demand in foreign
27. A strategy that sets a high initial price to markets.
maximize revenue from early adopters.
Penetration Pricing​
Premium Pricing​ 37. A method used when entering a new
28. A strategy that maintains a high price to reinforce international market with a very low price.
a brand’s luxury or exclusivity.
Skimming Pricing​
38. A method that starts with a high price and
PRICING IN A COMPETITIVE INTERNATIONAL gradually lowers it over time.
MARKET Value-Based Pricing​
Competitive International Market​ 39. A method where prices are adjusted based on
29. A market environment where pricing is customers’ perception of quality, brand, or
influenced by global competition. usefulness.

FACTORS AFFECTING PRICING IN AN ISSUES THAT LIMIT PRICING DECISIONS

INTERNATIONAL MARKET Consumers​
Fluctuation of Exchange Rates​ 40. A factor that limits pricing decisions due to
30. A factor that affects pricing due to currency value purchasing behavior and sensitivity.
changes.
Competitors​ STRATEGIC BUSINESS ANALYSIS – CHAPTER 6
41. A factor that limits pricing decisions due to rival
pricing actions. MANAGEMENT & THE PLACE–DISTRIBUTION
(SUPPLY CHAIN)
Product Cost​
42. A factor that limits pricing decisions due to Instructions: Identify the correct term being
production and operational expenses. described in each item.

Government Regulations​
43. A factor that limits pricing decisions through legal SUPPLY CHAIN MANAGEMENT
restrictions.
Supply Chain Management​
1. An entire system of producing and delivering a
product or service, from the very beginning stage of
sourcing the raw materials to the final delivery of the
product or service to end-users.

Supply Chain Management​

2. A continuous effort by companies to make their
supply chains efficient and economical.

Supply Chain Management​

3. The management of the flow of goods and services
and includes all processes that transform raw
materials into final products.

BASIC SUPPLY CHAIN

Seller​
4. Provides raw materials, energy, services, and
components.

Producer​
5. Uses components from the seller to create finished
goods.

Customer​
6. Receives the finished goods.

COMPONENTS OF TRADITIONAL SUPPLY CHAIN

MANAGEMENT SYSTEM

Planning​
7. The foundation of an effective SCM plan involving
developing strategies and tactics to achieve supply
chain objectives.
Sourcing​ SOURCING STRATEGIES
8. The process of identifying and selecting suppliers
for the procurement of raw materials, components, or Cost-Based Sourcing​
finished products. 19. A strategy that prioritizes suppliers offering the
lowest costs.
Manufacturing​
9. The component that transforms raw materials and Partnership Sourcing​
components into finished goods. 20. A strategy where companies develop long-term
relationships with key suppliers to drive innovation,
Delivery​ efficiency, and mutual growth.
10. The component that focuses on getting finished
products to end-users in a timely and efficient Demand-Driven Sourcing​
manner. 21. A strategy that aligns sourcing decisions with
real-time market demand to reduce excess stock.
Returning​
11. The stage involving handling product returns, Risk-Based Sourcing​
repairs, recycling, or disposal to ensure sustainability 22. A strategy focused on supplier diversification,
and customer satisfaction. resilience, and geopolitical considerations to mitigate
disruptions.

Sustainable Sourcing​
IMPORTANCE OF SUPPLY CHAIN MANAGEMENT 23. A strategy emphasizing environmentally friendly
and ethical sourcing practices.
Improve financial position​
12. An importance of SCM related to strengthening Lean Sourcing​
company finances. 24. A strategy focused on minimizing waste,
optimizing processes, and improving supplier
Reduce wastes​ efficiency.
13. An importance of SCM related to minimizing
inefficiencies. Nearshoring​
25. A strategy involving shifting sourcing to nearby
Optimize resources​ countries to reduce lead times and improve agility.
14. An importance of SCM related to efficient use of
inputs. Reshoring​
26. A strategy involving bringing production back to
Boost customer service​ the home country to mitigate global supply chain
15. An importance of SCM related to customer risks.
satisfaction.

Reduce operating costs​

16. An importance of SCM related to lowering SHIPPING SYSTEMS
expenses.
Railroads​
Better supplier relationships​ 27. A shipping system capable of carrying large loads
17. An importance of SCM related to collaboration with little flexibility.
with suppliers.
Trucking​
Sustainability​ 28. A shipping system with flexibility and the ability
18. An importance of SCM related to environmental to ship most manufactured goods.
and long-term responsibility.
Airfreight​ Right Quantity​
29. A shipping system that is fast and flexible for light 39. Controlling the correct amount of goods delivered
loads but may be expensive. to customers.

Waterways​ Right Place​

30. A shipping system used for bulky, low-value cargo 40. Ensuring the product arrives at the correct
where cost is more important than speed. location using tracking and routing systems.

Pipelines​ Right Time​

31. A shipping system used for transporting oil, gas, 41. Delivering products in a timely manner to
and chemical products. maintain reputation and competitiveness.

Multimodal​ Right Cost​

32. A shipping system that combines multiple 42. Pricing products reasonably by analyzing
shipping methods aided by standardized containers. industry dynamics and market demand.

LOGISTICS MANAGEMENT TYPES OF SUPPLY CHAIN MANAGEMENT

Logistics​ Vertical Integration​

33. The planning and executing of the storage and 43. A company’s expansion along the supply chain
movement of goods between different points in the either backward or forward.
supply chain.
Backward Integration​
Logistics​ 44. Occurs when a company acquires or controls
34. Coordinates facilities, people, equipment, and suppliers or raw material sources.
other resources to ensure products move as
scheduled. Forward Integration​
45. Occurs when a company acquires or controls
Logistics Management Process​ distribution channels or retailers.
35. The part of supply chain management that plans,
implements, and controls the efficient forward and Horizontal Integration​
reverse flow and storage of goods. 46. Involves acquiring or merging with companies
operating at the same stage of the supply chain.

7Rs OF LOGISTICS MANAGEMENT

DISTRIBUTION COST ANALYSIS AND CONTROL
Right Product​ TOOLS
36. Ensuring the correct type of product that is in
demand and well-designed. Cost-Benefit Analysis​
47. Evaluates financial viability by comparing costs
Right Customer​ against anticipated benefits.
37. Identifying the target audience and spreading
awareness of products and services. Activity-Based Costing​
48. Assigns overheads to products based on activities
Right Condition​ driving costs.
38. Ensuring products are delivered without damage
or defects. Variance Analysis​
49. Compares actual distribution costs against
budgeted costs.
Break-Even Analysis​ DISTRIBUTION CHANNEL
50. Determines the sales volume needed to cover
distribution costs. Distribution Channel​
61. The network intermediating goods from
Ratio Analysis​ producers to end consumers.
51. Uses financial ratios to benchmark distribution
performance. Direct Distribution Channel​
62. A channel where the manufacturer sells directly
Data Collection and Allocation​ to the consumer.
52. Systematic gathering and allocation of indirect
costs using cost drivers. Indirect Distribution Channel​
63. A channel involving wholesalers, retailers,
Budgetary Control​ distributors, or digital platforms.
53. Establishes predetermined costs and controls
deviations.

Standard Costing​
54. Uses standard costs for controlling distribution
expenses.

Performance Measurement​
55. Uses metrics such as on-time delivery and
customer satisfaction.

Process Improvement​
56. Uses techniques like Lean, JIT, or BPR to
streamline distribution.

Benchmarking​
57. Compares internal distribution processes with
industry best practices.

PLACE DISTRIBUTION DECISION

Place Decision​
58. A marketing decision determining how and
where products and services are made available to
consumers.

Place Decision​
59. Encompasses selection of distribution channels,
location, and logistics.

Place Decision​
60. Involves determining the right place, right time,
and right person for smooth flow of goods.