Deck 2: Developing Successful Organizational and Marketing Strategies

Question 1

In marketing, an offering refers to

A)the formal designation of a publicly-traded stock for a specific product, service or idea.
B)a form of currency used by buyer and seller to minimize the tax burden for both parties.
C)a product, service, or idea that creates value for both the organization and its customers by satisfying their needs and wants.
D)the manufacturer's suggested retail price of a product or service to the general public or the wholesale price to distributors and retailers.
E)the service suppliers and distributors provide to help manufacturers bring a product to market.

Answer 1

C

Question 2

Which of the following statements regarding Ben & Jerry's is most accurate?

A)Ben & Jerry's is owned by Unilever, the market leader in the global ice cream industry.
B)Ben & Jerry's is a privately owned ice cream producer.
C)Ben & Jerry's prides itself on offering more ice cream flavors than its competitors.
D)Ben and Jerry are not real people; the names were a clever reference to Tom and Jerry cartoon characters in order to capitalize on childhood nostalgia.
E)Ben & Jerry's has only been in business for twenty years and is already the industry leader in premium ice cream.

Answer 2

A

Question 3

A(n) __________ is a legal entity that consists of people who share a common mission.

A)department
B)organization
C)SBU
D)industry
E)market

Answer 3

B

Question 4

__________ is(are) the reward to a business firm for the risk it undertakes in marketing its offerings.

A)Shareholders' equity
B)Profit
C)Assets
D)Contribution margin
E)Goodwill

Question 5

A nonprofit organization is

A)a nongovernmental organization that serves its customers but does not have profit as an organizational goal.
B)a legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit.
C)a publicly owned organization that serves the general population.
D)a group of people united through contractual or corporate ownership.
E)a privately owned organization that serves its customers to earn a profit so that it can survivE.Text term definition - nonprofit organization.

Question 6

Ben & Jerry's social entrepreneurship effort is known as

A)ISO 9000, promoting the quality concept through its commitment to making the finest ice cream from the best ingredients.
B)Sight Life, giving its stakeholders the greatest possible input into company marketing decisions.
C)Regeneration Nation, generating enough revenue for the firm to be a completely nonprofit organization.
D)Give and Go, donating 10% of its net profits to local charitable causes and an additional 5% to support producers that practice sustainable farming.
E)Partnershops, enabling community nonprofits to operate Scoop Shops that help employ at-risk youth and young adults to better their lives.

Question 7

In marketing, an organization refers to

A)a legal entity that consists of people who share a common mission.
B)a group of people united through contractual or corporate ownership.
C)a legal entity engaged in business activities solely with the intent of making a profit.
D)a legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit.
E)a privately owned entity that serves its customers to earn a profit so that it can survivE.Text term definition - organization.

Question 8

Which statement best describes the most significant difference between a for-profit organization or a business firm and a nonprofit organization?

A)Business firms operate with larger budgets than nonprofits.
B)Nonprofit organizations do not carry on economic activities while business firms do.
C)Nonprofit organizations are concerned with social issues and business firms are not.
D)Both serve customers, but business firms seek a profit while nonprofit organizations do not.
E)Nonprofit organizations are publicly owned and business firms are privately owned.

Question 9

A __________ is a federal, state, county, or city unit that provides a specific service to its constituents.

A)business firm
B)subchapter S corporation
C)government agency
D)cooperative
E)nonprofit organization

Question 10

Ben & Jerry's has earned B-Corp certification from B-Lab, which means it has

A)reached the goal of generating enough revenue to be a completely nonprofit organization.
B)a sustainable financial basis of profitable growth, increasing value for our stakeholders and expanding opportunities for development and career growth for our employees.
C)the goal of making profits for selected charitable organizations such as Fair Trade.
D)been recognized for its efforts to use the power of business to solve social and environmental problems.
E)been instrumental in expanding into international markets by developing dairies for developing nations.

Question 11

Today's organizations can be divided into three groups, which are __________ organizations.

A)company, nonprofit, and cooperative
B)corporation, employee-owned, and interest
C)for-profit, nonprofit, and government
D)employee, distributor, and customer
E)public, private, and international

Question 12

Cree markets LED (light-emitting diode) light bulbs (see the photo above) that replaces the traditional incandescent bulb. The Cree LED 60w bulb is 84 percent more energy efficient, lasts for 25,000 hours, and initially sold for about $12 at Home Depot. Cree is an example of a(n) __________.

A)cooperative
B)industry
C)nonprofit organization
D)business firm
E)government agency

Question 13

A(n) __________ is a product, service, or idea that creates value for both the organization and its customers by satisfying their needs and wants.

A)organization
B)business firm
C)nonprofit
D)offering
E)industry

Question 14

Profit refers to

A)the point at which a company's assets equal its liabilities plus shareholder equity.
B)the difference between the list and final price of a product or service.
C)the money earned when the economic order quantity is minimized.
D)the money left over after a business firm's total expenses are subtracted from its total revenues.
E)the total amount of revenue accrued through product sales or service distribution.

Question 15

An example of a nonprofit organization is

A)the Food and Drug Administration.
B)CVS Pharmacies.
C)the medical technology company Medtronic, Inc.
D)the pharmaceutical company Pfizer, Inc.
E)the American Red Cross.

Question 16

A for-profit organization refers to

A)a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers.
B)a legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit.
C)a privately owned organization that serves its customers to earn a profit so that it can survive.
D)a group of people united through contractual or corporate ownership.
E)a publicly owned organization that serves the general population.

Question 17

A __________ is a nongovernmental organization that serves its customers but does not have profit as an organizational goal.

A)business firm
B)subchapter S corporation
C)service agency
D)cooperative
E)nonprofit organization

Question 18

A(n) __________ is a privately owned organization that serves its customers to earn a profit so that it can survive.

A)agency
B)for-profit organization
C)institution
D)nonprofit organization
E)cooperative

Question 19

Social entrepreneurs like Teach for America and SightLife are usually structured as __________ rather than business firms.

A)business agencies
B)nonprofit organizations
C)government agencies
D)cooperatives
E)social service agencies

Question 20

Ben & Jerry's mission to improve humanity is linked to various organizational and marketing strategies, one of which is

A)using milk and cream obtained from Caring Dairy, a cooperative that guarantees it suppliers are bovine growth hormone free.
B)the intent of making modest profits without sacrificing high product quality standards.
C)ingredients that are all completely organic and are available only in Vermont to ensure freshness and contribute to the local economy.
D)a commitment to donating a percentage of profits to Teach for America.
E)ingredients that come exclusively from developed countries promoting Fair Trade practices.

Question 21

Social entrepreneurs are usually structured as __________.

A)business firms
B)subchapter S corporations
C)nonprofit organizations
D)governmental agencies
E)501 (c) 3 for profit organizations

Question 22

An industry refers to

A)organizations that develop similar offerings.
B)organizations who manufacture identical products to meet ISO 9000 specifications.
C)companies that are active in the production of materials that are used in finished products.
D)a group of people or firms united through strategic alliances.
E)the economic activity concerned with the selling of finished products to wholesalers and retailers.

Question 23

Which of the following statements about strategy is most accurate?

A)An organization can be all things to all people because it has access to all the resources it needs to discover and satisfy the needs and wants of its target markets.
B)The marketing department helps to both set an organization's direction and move it there.
C)The American Marketing Association (AMA) recently has established the definition of strategy.
D)Strategy is an organization's short-term course of action designed to deliver a specific customer experience while achieving its internal standards.
E)Only start-up organizations must develop strategies to help them raise capital as well as focus and direct their efforts to accomplish their goals.

Question 24

-In Figure 2-1 above, D represents the

A)strategic business unit level.
B)functional level.
C)corporate level.
D)board of directors.
E)CMO.

Question 25

According to the textbook, the terms firm, company, and organization

A)refer to for-profits, non-profits, and government agencies respectively.
B)refer to non-profits, government agencies, and for-profits respectively.
C)refer to government agencies, for-profits, and non-profits respectively.
D)refer to for-profits, government agencies, and non-profits respectively.
E)can be used interchangeably to cover both profit and nonprofit organizations.

Question 26

SightLife (see the logo above) creates eye banks throughout the world. Its goal is to find cornea donors prepare their tissues for surgery. SightLife is an example of a(n) __________.

A)cooperative
B)business firm
C)industry
D)public firm
E)nonprofit organization

Question 27

-In Figure 2-1 above, Box A represents the

A)functional level.
B)board of directors.
C)corporate level.
D)CEO.
E)strategic business unit level.

Question 28

-In Figure 2-1 above, C represents the

A)strategic business unit level.
B)board of directors.
C)corporate level.
D)functional level.
E)CMO.

Question 29

The term used to identify an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals is referred to as a __________.

A)marketing strategy
B)policy
C)strategy
D)plan
E)tactic

Question 30

The level in an organization where top management directs overall strategy for the entire organization is referred to as the

A)corporate level.
B)functional level.
C)directive level.
D)strategic level.
E)tactical level.

Question 31

Organizations that develop similar offerings, when grouped together, create a(n)

A)conglomerate.
B)merger.
C)industry.
D)sector.
E)monopoly.

Question 32

SightLife works to solve which societal problem?

A)It provides new college graduates as teachers in urban and rural public schools in the U.S.
B)It works to end corneal blindness worldwide by finding cornea donors and creating tissue banks.
C)It provides education and small business loans to women in impoverished areas so that they can help themselves.
D)It offers free rehabilitation services for injured U.S. veterans returning from overseas conflict.
E)It offers tax credits to small businesses that make charitable donations in their communities.

Question 33

-In Figure 2-1 above, E represents the __________ operating at the lowest strategic level.

A)board of directors
B)corporate level
C)departments
D)executives
E)strategic business unit level

Question 34

-In Figure 2-1 above, B represents the

A)functional level.
B)board of directors.
C)corporate level.
D)department level.
E)strategic business unit level.

Question 35

Which of the following is NOT an example of an industry?

A)the computer industry
B)the automobile industry
C)the landscaping industry
D)the government industry
E)the television programming industry

Question 36

__________ applies innovative approaches to organize, create, and manage a venture to solve the practical needs of society and is usually structured as a nonprofit organization.

A)Corporate welfare
B)A social entrepreneur
C)Sustainable development
D)Cause marketing
E)Societal capitalism

Question 37

The corporate level refers to the level in an organization where top management

A)develops marketing strategies and tactics for the marketing department to implement.
B)directs overall strategy for the entire organization.
C)executes all marketing program actions to ensure consistency of performance.
D)develops overall sales projections not only for the short term but also for a period of at least two to five years.
E)supervises the hiring, firing, and training of all marketing department personnel.

Question 38

Teach for America works to solve which societal problem?

A)It provides new college graduates as teachers in urban and rural public schools in the U.S.
B)It works to end corneal blindness worldwide by finding cornea donors and creating tissue banks.
C)It provides education and small business loans to women in impoverished areas so that they can help themselves.
D)It offers free rehabilitation services for injured U.S. veterans returning from overseas conflict.
E)It offers tax credits to small businesses to employ at-risk youth in their communities.

Question 39

Strategy refers to

A)an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals.
B)an organization's corporate tactical or action plan.
C)statements of an accomplishment of a task to be achieved by a certain time.
D)a statement of the organization's function in society, often identifying its customers, markets, product, and technologies.
E)a road map for the entire organization for a specified future period of time, such as one or five years.

Question 40

Large organizations are extremely complex, and usually consist of __________ organizational levels whose strategies are linked to marketing.

A)two
B)three
C)five
D)six
E)seven or more

Question 41

The functional level in an organization is where

A)groups of specialists actually create value for the organization.
B)employees perform assigned tasks without actually having input into the decision making process.
C)all financial outlays are made.
D)all company hiring and firing occurs.
E)the strategic planners in SBUs makes all decisions regarding which product benefits will be promoted during a promotional campaign.

Question 42

Which of the following statements regarding an organization's strategic business unit level is most accurate?

A)The strategic business unit level is the level that works most directly with an organization's targeted customers.
B)The overall strategy for the organization is directed at the strategic business unit level.
C)In the most complex organizations, the corporate level and the strategic business unit level may merge.
D)More end-user analysis is provided at the strategic business unit level than at the functional level.
E)The strategic direction is more specific at the strategic business unit level than at the corporate level.

Question 43

The level at which managers set a more specific strategic direction for their businesses to exploit value-creating opportunities is referred to as the

A)marketing department level.
B)strategic business unit level.
C)corporate level.
D)functional level.
E)board of directors level.

Question 44

A subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers is referred to as a

A)strategic business unit.
B)strategic industry level.
C)private corporation.
D)product grouping.
E)marketing department.

Question 45

Bill McDermott is the CEO of SAP, which is a company that sells expensive enterprise resource planning software to large and mid-sized companies. McDermott operates at the __________ level of his organization.

A)business unit
B)functional
C)corporate
D)strategic
E)tactical

Question 46

In recent years, many large firms have changed the title of the head of marketing from vice president of marketing to

A)chief executive officer.
B)corporate marketing official.
C)coordinating marketing officer.
D)chief marketing officer.
E)corporate marketing executivE.In recent years, many large firms have changed the title of the head of marketing from vice president of marketing to chief marketing officer (CMO). These CMOs have an increasingly important role in top management because of their ability to think strategically.

Question 47

At the functional level, the organization's strategic direction becomes

A)much more manageable since its offerings have been finalized.
B)the most specific and most focused in terms of implementing the company's goals.
C)broader since for less complex firms, the corporate and functional levels may merge.
D)more general to avoid the "not invented here syndrome" that could result in missed opportunities.
E)the sole responsibility of the CEO.

Question 48

Specialized functions such as marketing and finance are generally referred to as __________.

A)teams
B)groups
C)divisions
D)departments
E)business units

Question 49

The strategic business unit level

A)works most directly with the organization's target customers.
B)directs the overall strategy for the organization.
C)is most likely to change substantially over time.
D)provides more end-user analysis in order to design more customer-directed products.
E)is the level at which managers set a more specific strategic direction for their businesses to exploit value-creating opportunities.

Question 50

At the functional level, the marketing department

A)solicits talent from all levels of the organization for strategic corporate planning sessions.
B)promotes its goals to the organization's stakeholders.
C)looks outward, in part by listening to customers.
D)develops the corporate culture.
E)defines the overall strategic direction of the organization.

Question 51

Each strategic business unit has marketing and other specialized activities (e.g., finance, manufacturing, or research and development) at the __________ level, where groups of specialists actually create value for the organization.

A)strategic
B)corporate
C)functional
D)business unit
E)compartmental

Question 52

A strategic business unit (SBU) refers to

A)a single product or service identification code used to identify items for strategic marketing planning purposes.
B)a small number of people from different departments in an organization who are mutually accountable to accomplish a task or common set of performance goals.
C)a strategic product that has a unique brand, size, or price.
D)a privately owned franchise under the auspices of a larger group or organization bearing the same name.
E)a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers.

Question 53

The highest-ranking person in an organization who oversees the organization's daily operations and spearheads its strategy planning efforts is often referred to as

A)the corporate executive overseer.
B)the chief executive officer.
C)the corporate executive official.
D)the chief marketing officer.
E)the coordinating executive official.

Question 54

Which of the following statements would most likely be heard at the functional level of an organization?

A)"We need to divest our Canadian operations that are performing poorly."
B)"How large a budget can we allot to the marketing department?"
C)"We plan to implement a Facebook advertising initiative within 90 days."
D)"We should hire the most culturally diverse cross-functional team possible in order to generate the best new-product ideas."
E)"What dividends should we pay stockholders next quarter?"

Question 55

A key role of the marketing department is to "look outward." This is accomplished by

A)allocating financial resources across strategic business units.
B)communicating the vision of the marketing department forcefully enough to be incorporated into the overall mission of the company.
C)forming cross-functional teams to help solve the organization's marketing problems.
D)implementing new accounting methods passed by Congress.
E)listening to customers, developing and producing offerings, and implementing marketing program activities.

Question 56

The corporate level in an organization is where

A)the department heads direct overall strategy for the entire organization.
B)groups of specialists actually create value for the organization.
C)a small number of people from different departments are mutually accountable to accomplish a task or a common set of performance goals.
D)a subsidiary, division, or unit of an organization markets a set of related offerings to a clearly defined group of customers.
E)top management directs overall strategy for the entire organization.

Question 57

Overseeing strategic marketing efforts at the corporate level would most likely be the responsibility of the __________.

A)CEO
B)CMO
C)CPM
D)CPO
E)COO

Question 58

__________ have an increasingly important role in top management because of their ability to think strategically, bringing with them to the job multi-industry backgrounds, cross-functional management expertise, analytical skills, and intuitive marketing insights.

A)Chief marketing officers (CMOs)
B)Chief financial officers (CFOs)
C)Chief executive officers (CEOs)
D)Chief human resource officers (CHROs)
E)Chief operating officers (COOs)

Question 59

People in the finance and the human resources departments traditionally operate at what organizational level?

A)corporate level
B)top management level
C)strategic business unit level
D)functional level
E)stakeholder level

Question 60

Groups of a small number of people from different departments in an organization who are mutually accountable to accomplish a task or a common set of performance goals are referred to as

A)designated teams.
B)strategic business units.
C)cross-functional teams.
D)business committees.
E)venture squads.

Question 61

Today's visionary organization uses three key elements to __________, set a direction, and formulate strategies.

A)set financial goals
B)specify its foundation
C)establish detailed marketing tactics
D)assign job responsibilities
E)establish an organizational chart

Question 62

An organization's __________ are the fundamental, passionate, and enduring principles that guide its conduct over time.

A)goals
B)culture
C)strategies
D)core values
E)mission statements

Question 63

-In Figure 2-2 above, B represents the "what" element of visionary organization. This is referred to as __________.

A)organizational tactics
B)organizational mission
C)organizational foundation
D)organizational direction
E)organizational strategies

Question 64

Cross-functional teams refer to

A)members of an organization who have been trained in multiple disciplines so they can easily move from one job to another as needed.
B)situations where two departments within the same company have opposing views about how a product should be developed and managed.
C)departments within an organization that carry out multiple functions due to financial constraints within the company.
D)a small number of people from different departments in an organization who are mutually accountable to accomplish a task or a common set of performance goals.
E)departments within an organization who manage the same product with distinctly different marketing programs to reach different target markets.

Question 65

Today's visionary organization uses three key elements to specify its foundation, set a direction, and __________.

A)set financial goals
B)assign job responsibilities
C)formulate strategies
D)establish production parameters
E)establish detailed marketing tactics

Question 66

Successful organizations must be visionary, which includes the ability to

A)develop strategies based on those that were successful in the past.
B)be backward-looking, examining the past carefully to learn from mistakes.
C)anticipate future events and respond quickly and effectively.
D)hire the most culturally diverse team possible in order to generate the best new ideas.
E)involve all stakeholders of the organization when defining its business mission.

Question 67

A firm's __________ are timeless, capturing its heart and soul, and serve to inspire and motivate its stakeholders.

A)core values
B)strategic goals
C)offerings
D)corporate culture
E)corporate ethos

Question 68

In general, a visionary organization asks which three types of questions to specify its foundation, set a direction, and formulate strategies?

A)why, when, where
B)what, by whom, how
C)how, when, where
D)why, what, how
E)who, why, when

Question 69

When developing marketing programs for new offerings, marketing may provide staff to serve as part of a(n) __________, which consists of a small number of people from different departments who are mutually accountable to accomplish a task or a common set of performance goals.

A)cross-functional team
B)department
C)strategic business unit
D)organization
E)business consortium

Question 70

An organization's foundation can be broken into three key elements:

A)products, services, and ideas.
B)business definition, long-term goals, and short-term objectives.
C)board of directors, top management, and stakeholders.
D)corporate-level strategies, SBU-level strategies, and functional-level strategies.
E)core values, mission/vision, and organizational culturE.An organizational foundation includes core values, mission/vision, and organizational culture.

Question 71

An organization's foundation includes which of the following?

A)core values
B)business definition
C)goals
D)strategic levels
E)offerings

Question 72

The philosophical reason for an organization's existence is referred to as its organizational __________.

A)strategy
B)direction
C)foundation
D)goal
E)business

Question 73

Today's visionary organization uses three key elements to specify its foundation, __________, and formulate strategies.

A)set a direction
B)establish detailed marketing tactics
C)assign job responsibilities
D)set financial goals
E)establish an organizational chart

Question 74

-In Figure 2-2 above, Box A represents the "why" element of visionary organization. This is referred to as __________.

A)organizational foundation
B)organizational tactics
C)organizational mission
D)organizational direction
E)organizational strategies

Question 75

Which of the following statements regarding organizational foundation is most accurate?

A)An organizational foundation specifies its goals.
B)An organizational foundation defines the business that it is in.
C)An organization's foundation empowers stakeholders to have a voice in the strategic marketing process.
D)An organization's foundation is its philosophical reason for being - why it exists.
E)An organization's foundation is the company, its product, and its customers.

Question 76

On the northern tip of Goose Island in the Chicago River sits the William Wrigley Jr. Company's Global Innovation Center. Here, Wrigley creates new products using a joint effort by some 250 full-time food scientists, researchers, and marketers. The people who work in this center are most likely members of a(n)

A)innovation squad.
B)business consortium.
C)multiple strategic directional team.
D)strategic evaluation team.
E)cross-functional team.

Question 77

Core values refer to

A)the cultural ethos of an organization.
B)proprietary values of a firm.
C)written mission statements that express an organization's goals and objectives.
D)the personal moral and ethical codes of a firm's stakeholders.
E)the fundamental, passionate, and enduring principles that guide an organization's conduct over timE.Key term definition - core values.

Question 78

An organization's foundation includes all of the following EXCEPT:

A)organizational culture.
B)business definition.
C)vision.
D)core values.
E)mission.

Question 79

-In Figure 2-2 above, C represents the "how" element of visionary organization. This is referred to as __________.

A)organizational tactics
B)organizational mission
C)organizational foundation
D)organizational direction
E)organizational strategies

Question 80

IBM regularly creates what it calls global action teams, which take people from functional groups and bring them together to work on large client projects. These global action teams are a type of

A)innovation group.
B)business consortium.
C)tactical group.
D)SWOT team.
E)cross-functional team.