Deck 2: Developing Successful Organizational and Marketing Strategies

Question 1

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.

Answer 1

E

Question 2

________ the reward to a business firm for the risk it undertakes in marketing its offerings.

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

Answer 2

B

Question 3

Cree markets LED (light-emitting diode) bulbs, selling them for a profit. A Cree LED bulb replaces the traditional incandescent bulb, consuming 85 percent less energy and lasting for 25,000 hours. Cree is an example of

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

Answer 3

D

Question 4

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 5

A(n) ________ is a privately owned organization that serves its customers to make money so that it can survive.

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

Question 6

Julio printed 70 t-shirts for a political rally on campus. His costs to buy the shirts and have them printed were $500. He planned to sell them for $15 each, for a total of $1050. If he sold them all, what would his profit be?

A) $500
B) $1050
C) $1550
D) $550
E) $1000

Question 7

Ben & Jerry's has earned B-Corp certification, 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 stakeholders and expanding opportunities for development and career growth for employees.
C) the goal of making profits for selected charitable organizations such as Fair Trade.
D) been recognized for its efforts to solve social and environmental problems.
E) been instrumental in expanding into international markets by creating dairies for developing nations.

Question 8

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

Question 9

Organizations can be divided into three types:

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 10

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

A) Business firms earn a profit each year while nonprofits operate at a deficit annually.
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 11

Which statement 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 20 years and is already the industry leader in premium ice cream.

Question 12

Social entrepreneurs who start new ventures such as Teach for America and FreeWill are often structured as ________ rather than business firms.

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

Question 13

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 good, 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.

Question 14

________ is a good, service, or idea that creates value for both the organization and its customers by satisfying their needs and wants.

A) An exchange
B) A countertrade
C) A profit center
D) An offering
E) An industry

Question 15

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 16

A nonprofit organization is

A) a nongovernmental organization that serves its customers but does not have making money 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.

Question 17

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 make money 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 18

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.

Question 19

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 20

Ben & Jerry's mission-driven approach led the company to successfully implement many highly creative organizational and marketing strategies. One example is

A) ISO 9000, promoting the quality concept through its commitment to making the finest ice cream from the best ingredients.
B) "linked prosperity," which encourages the success of all constituents including employees.
C) Regeneration Nation, generating enough revenue for the firm to be a completely nonprofit organization.
D) Give and Go, donating 10 percent of its net profits to local charitable causes and an additional 5 percent to support producers that practice sustainable farming.
E) elimination of single-use plastic by discontinuing the offering of plastic straws and spoons.

Question 21

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) statement 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 22

The level in an organization where top management directs overall strategy for the entire organization is the ________ level.

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

Question 23

Figure 2-1

-In Figure 2-1 above, C represents the ________ of an organization.

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

Question 24

Which is not an example of an industry?

A) software firms
B) automobile companies
C) fashion companies
D) government agencies
E) cable television organizations

Question 25

An industry refers to

A) organizations that develop similar offerings.
B) organizations that manufacture identical products to meet ISO 9000 specifications.
C) companies that are active in the production of materials 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 26

Large organizations are extremely complex, and usually consist of ________ organizational levels overseen by a board of directors.

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

Question 27

A board of directors of an organization

A) represents the functional level.
B) oversees the three levels of strategy.
C) is equivalent to the corporate level.
D) reports to the CEO.
E) represents the strategic business unit level.

Question 28

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 United States.
B) It works to end corneal blindness worldwide by training doctors to do corneal surgeries, finding cornea donors and creating tissue banks.
C) It provides education, training, and small business loans to women in impoverished areas so that they can help themselves.
D) It offers free access to graduate education 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 29

An organization's long-term course of action designed to deliver a unique customer experience while achieving its goals is a

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

Question 30

________ can use a variety of organizational models to address social needs that inspire passion, including health care delivery, the cost of higher education, and agricultural efficiency.

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

Question 31

Figure 2-1

-In Figure 2-1 above, D represents the ________ of an organization that is comprised of individual departments.

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

Question 32

FreeWill is an organization created to help make estate planning warm, accessible, and totally free so that users can easily care for the people and causes they love. To date, more than 32,000 people have used the service to create a will, and they have committed more than $373 million to charity. FreeWill is an example of

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

Question 33

Organizations that develop similar offerings, when grouped together, create

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

Question 34

Which statement 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 35

Figure 2-1

-In Figure 2-1 above, E represents the ________ that make up the functional level of an organization.

A) board of directors
B) executive level
C) hourly employees
D) production personnel
E) departments

Question 36

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

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

Question 37

Figure 2-1

-In Figure 2-1 above, B represents the ________, the highest of the three levels of strategy in an organization.

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

Question 38

Ling is in the business of connecting homeless with free shelters, and she funds her business through charitable donations and by placing ads in the shelters. She takes a small salary but reinvests whatever is left to grow the operation. Ling's business is a

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

Question 39

Teach for America is an example of

A) an entrepreneurial business firm.
B) a government agency.
C) a nonprofit organization.
D) a public value agency.
E) a 501(c)(3) for-profit organization.

Question 40

Figure 2-1

-In Figure 2-1 above, Box A represents the ________ that oversees the three levels of strategy in an organization.

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

Question 41

A part of the key role of marketing is to

A) support the board of directors.
B) operate at the corporate level.
C) look outward by listening to customers.
D) manage executives.
E) deliver strategic business decisions.

Question 42

The CEO of an organization

A) is usually at the strategic business unit level.
B) is usually a member of the board of directors.
C) outranks the corporate level.
D) does not oversee the daily operations.
E) is typically also the CMO.

Question 43

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 44

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 45

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.

Question 46

Within the corporate level of an organization, 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 47

At the corporate level in an organization,

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 48

Which statement 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 an Instagram advertising initiative within 60 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 49

At the functional level in an organization,

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 make all decisions regarding which product benefits will be highlighted during a promotional campaign.

Question 50

The specialists within an organization who actually create value are usually a member of the

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

Question 51

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) defines a more specific strategic direction to exploit value-creating opportunities.

Question 52

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 the

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

Question 53

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) tactical

Question 54

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 55

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 56

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 is part of the ________ level of his organization.

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

Question 57

Which statement 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 58

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

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

Question 59

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

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

Question 60

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

A) cross-functional teams.
B) managerial groups.
C) divisions.
D) departments.
E) strategic business units.

Question 61

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 regulations passed by legislators.
E) listening to customers in order to inform decisions for developing and producing offerings.

Question 62

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 or vision, and organizational culture.

Question 63

Which key element must be specified by a visionary organization?

A) Exceed financial goals
B) Set a direction
C) Establish detailed marketing tactics
D) Assign job responsibilities
E) Establish an organizational chart

Question 64

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.

Question 65

Figure 2-2

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

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

Question 66

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 67

An organization's foundation includes all of these except which?

A) Organizational culture
B) Business definition
C) Vision
D) Core values
E) Mission

Question 68

An organizational foundation

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

Question 69

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 carryout 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 that manage the same product with distinctly different marketing programs to reach different target markets.

Question 70

Figure 2-2

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

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

Question 71

Figure 2-2

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

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

Question 72

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

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

Question 73

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.

Question 74

An organization's foundation includes which element?

A) Mission
B) Business definition
C) Goals
D) Strategic levels
E) Offerings

Question 75

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 76

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

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

Question 77

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

Question 78

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 79

Successful organizations must be forward-looking, which includes the ability to

A) develop strategies based on those that were successful in the past.
B) first 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 80

When a company is developing new offerings, marketing may provide staff to serve as part of __________, joining others from different departments who are mutually accountable to this task.

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