Deck 17: Organizing and Planning for Effective Implementation

Question 1

A product management structure centralizes decision making while increasing the amount of product specialization within the SBU.

Answer 1

False

Question 2

Differentiated defenders perform best when their organization structures incorporate moderate levels of formalization,centralization,and specialization.

Answer 2

True

Question 3

Evaluation and reward systems that place relatively more emphasis on sales and share growth are appropriate for businesses pursuing prospector strategies.

Answer 3

True

Question 4

Top-down strategic planning systems are particularly well-suited to prospector businesses operating in unstable environments.

Question 5

Competence in new product R&D is very critical for the success of a low-cost defender.

Question 6

In prospector service organizations,employees do not have a critical role in identifying potential new services.

Question 7

The simplicity of the product management organization makes it the most common organizational form among entrepreneurial start-ups.

Question 8

Prospector business units are likely to perform better on the critical dimensions of new product success when organizational decision making is relatively centralized.

Question 9

A business's organizational structure,internal policies,procedures,and resources must fit its chosen strategy or else implementation will fall short.

Question 10

The functional form of organization is most appropriate for businesses pursuing differentiated defender and analyzer strategies,particularly when they operate in industries with complex and relatively unstable market and competitive environments.

Question 11

In centralized units,middle- and lower-level managers have more autonomy and participate in a wider range of decisions.

Question 12

The matrix form is the least bureaucratic or centralized and the most specialized type of organization.

Question 13

SBU autonomy is relatively low for firms adopting a prospector business strategy.

Question 14

Specialization is the degree to which formal rules and standard policies and procedures govern decisions and working relationships.

Question 15

Centralization refers to the location of decision authority and control within an organization's hierarchy.

Question 16

Product management organizations have the advantage of identifying and reacting more quickly to the threats and opportunities faced by individual product-market entries.

Question 17

Successful implementation of a given strategy is more likely when the business has the functional competencies demanded by its strategy.

Question 18

SBUs will perform best on critical volume and share-growth dimensions when its functional strengths include marketing,sales,and product R&D,in a low cost defender strategy.

Question 19

Functional organizations rely primarily on hierarchical mechanisms for resolving conflicts across functional areas.

Question 20

Adaptiveness and innovativeness are enhanced when decision-making authority is centralized.

Question 21

Global organization structures can be centralized or decentralized in terms of decision making.

Question 22

A prospector strategy is most likely to have:

A)relatively little synergy and few shared programs.
B)little synergy in areas central to differentiation and shared programs elsewhere.
C)more shared programs in areas central to differentiation.
D)high synergy and shared programs.

Question 23

The success of a marketing plan depends on effective communication with other parts of the organizations and a variety of marketing units

Question 24

Units operating in relatively unstable environments and pursuing more proactive marketing programs are likely to perform better when they:

A)have relatively greater autonomy.
B)have rigid team structures.
C)have clear distinction of power.
D)use centralized decision structures.

Question 25

Which type of SBU strategy is most likely to always include an evaluation and reward system which includes high incentives based on sales growth and market share gain?

A)Differentiated defender
B)Reactor
C)Low-cost defender
D)Prospector

Question 26

Low-cost defender SBUs perform better on ROI and cash flow by:

A)using relatively little synergy and few shared programs.
B)giving their managers relatively little autonomy.
C)focusing on democratic decision making.
D)stressing participation more than productivity improvements.

Question 27

Macroenvironmental situation section describes broad environmental occurrences or trends that may have a bearing on a product's future.

Question 28

A company following a low-cost defender strategy is most likely to have:

A)relatively high SBU autonomy.
B)moderate SBU autonomy.
C)very few incentive programs.
D)high synergy and shared programs.

Question 29

A company following a prospector strategy is most likely to have relatively _____ synergy and _____ shared programs.

A)little;few
B)more;few
C)little;many
D)more;many

Question 30

Prospector business units are likely to perform better on the critical dimensions of new product success and increased volume and market share when organizational decision making is relatively:

A)federalized.
B)bureaucratic.
C)decentralized.
D)bottom up.

Question 31

The impact of shared programs on the performance of differentiated defenders is more difficult to predict because they must often:

A)act with relatively low synergy and provide high incentives to the employees.
B)modify their products and marketing programs based on changing market conditions.
C)act with relatively low synergy and provide high incentives to the employees.
D)respond to market situations in a way that is dictated by a central decision making system.

Question 32

The action plan in an annual marketing plan summarizes relevant background information on the market,competition and the macroenvironment,and trends therein,including size and growth rates for the overall market and key segments.

Question 33

Contingency plans describe actions to be taken if specific threats or opportunities materialize during the planning period.

Question 34

Financial objectives provide goals for the overall performance of the brand and should reflect the objectives for the SBU as a whole and its competitive strategy.

Question 35

Marketing strategy summarizes the overall strategic approach that will be used to meet the plan's objectives.

Question 36

The action plan is a document that lays down long-term strategies and objectives for a product.

Question 37

A company following a differentiated defender strategy is most likely to have:

A)moderate SBU autonomy.
B)very few incentive programs.
C)high SBU autonomy.
D)high synergy in areas central to differentiation.

Question 38

The key issues section of annual marketing plan specifies the goals to be accomplished in terms of sales volume,market share,and profit.

Question 39

The matrix form of organization suits prospector businesses and the management of new product development projects within analyzer or differentiated defender businesses.

Question 40

People with expertise in purchasing,manufacturing,order delivery,and billing are most important to new product development.

Question 41

A product management structure:

A)decentralizes decision making while increasing the amount of product specialization within the SBU.
B)centralizes decision making while decreasing the amount of product specialization within the SBU.
C)makes conflict resolution mechanisms hierarchical while increasing the amount of product specialization within the SBU.
D)makes conflict resolution mechanisms participative while decreasing the amount of product specialization within the SBU.

Question 42

A company which seeks to maximize fixed assets per employee and percent of capacity utilization relative to its competitors is most likely following a _____ business strategy.

A)low-cost defender
B)prospector
C)reactor
D)differentiated defender

Question 43

A product-management organizational design would most likely be appropriate when the firm sells:

A)a single product to a large number of different customers.
B)only a few products in a relatively stable competitive environment.
C)a large number of products in a relatively simple and stable environment.
D)a large number of products in an unstable environment.

Question 44

Evaluation and reward systems that place more emphasis on sales volume or market share objectives are most appropriate for businesses pursuing:

A)differentiated defender strategies.
B)reactor strategies.
C)prospector strategies.
D)low-cost defender strategies.

Question 45

_____ is the degree to which formal rules standard policies and procedures govern decisions and working relationships.

A)Specialization
B)Formalization
C)Centralization
D)Decentralization

Question 46

Which of the following organizational structures would an entrepreneurial start-up most likely use?

A)Product management
B)Functional
C)Matrix
D)Market management

Question 47

D.G Corporation sells coffee beans to various companies.The company also has its own coffee houses where it sells brewed coffee directly to consumers.The intermediaries and marketing activities involved in selling to the two set of clients are very different and so the company has appointed separate managers for each section.This is an appropriate illustration of:

A)franchise management.
B)functional management.
C)market management.
D)client management.

Question 48

A SBU using a prospector strategy will perform best in terms of sales volume growth and market share gains when its structure has _____ levels of centralization and _____ levels of specialization.

A)low;high
B)low;low
C)high;low
D)high;high

Question 49

In a low-cost defender SBU will perform best on critical ROI and cash flow dimensions when:

A)its functional are not in distribution and control.
B)production managers have little influence on business.
C)sales and product R&D expenses are high.
D)the structure has high levels of formalization.

Question 50

A company's production department has many managers who are experts in different fields.The department has a packaging manager,assembly manager,quality manager,and an inspection manager.This division of management responsibilities is an example of:

A)formalization.
B)centralization.
C)specialization.
D)standardization.

Question 51

In the context of low-cost defender strategy,SBU will perform best on ROI dimension when resolution is:

A)participative for issues related to differential advantage,but hierarchical for others.
B)participative for all issues.
C)hierarchical for all issues.
D)hierarchical for issues related to differential advantage,but participative for others.

Question 52

In the context of differentiated defender strategy,SBU will perform best on ROI dimension when resolution is:

A)participative for issues related to differential advantage,but hierarchical for others.
B)participative for issues like product improvement.
C)hierarchical for issues related to differential advantage.
D)hierarchical for issues related to differential advantage,but participative for others.

Question 53

Which of the following is defined as the division of tasks and activities across positions within the organizational unit?

A)Specialization
B)Formalization
C)Centralization
D)Standardization

Question 54

Which of the following refers to the location of decision authority and control within an organization's hierarchy?

A)Formalization
B)Dispersion
C)Specialization
D)Centralization

Question 55

Adaptiveness and innovativeness are enhanced when:

A)specialization is limited in the structure.
B)informal coordination is promoted.
C)there are rigid rules and policies.
D)decision-making authority is centralizeD.

Question 56

When a company or SBU has many product-market entries,the:

A)simple functional form of organization is inadequate.
B)hierarchical form of organization works the best.
C)task-based form of organization is the most appropriate.
D)product management organization structure is not appropriate.

Question 57

Which of the following functional areas is likely to play the most crucial role in low-cost defender businesses?

A)Marketing
B)Sales
C)Financial management
D)Product R&D

Question 58

In the case of a prospector strategy,SBU will perform best on critical volume and sharegrowth dimensions when its functional strengths include:

A)product R&D and engineering.
B)financial management and control.
C)financial management and distribution.
D)distribution and control.

Question 59

The _____ form of organization is the simplest and most bureaucratic design.

A)product management
B)functional
C)matrix
D)market management

Question 60

When using a prospector strategy,a SBU will perform best on volume and share-growth dimensions when:

A)percentage of sales spent on marketing is low.
B)structure has low levels decentralization.
C)structure has low levels of formalization.
D)managers from R&D and engineering have little influence.

Question 61

What are the primary conditions necessary for the success of a prospector business in the critical dimensions of new product success and increased volume and market share?

Question 62

_____ summarizes the overall strategic approach that will be used to meet the marketing plan's objectives in a marketing action plan.

A)Executive summary
B)Key issues
C)Action plan
D)Marketing strategy

Question 63

What are the conditions that can make it possible for a firm organized in the hierarchical functional form to be innovative?

Question 64

The action programs should reflect:

A)reviews of the past performance of the product and the elements of marketing program.
B)the expected financial payoff plans and actions to be pursued by the company.
C)the main opportunities and threats to the product that the plan must deal with.
D)agreements made with departments as to their responsibilities over the planning perioD.

Question 65

The written marketing plan is extremely important to the execution of a given strategy because it:

A)provides valuable information on competitors' recent actions.
B)calls attention to what has and has not worked in the past.
C)provides a 'road map' of a product's recent history.
D)spells out the actions to be taken,when and by whom.

Question 66

Describe matrix organizations.

Question 67

List the key sections in an annual marketing plan.

Question 68

Which is,by far,the most commonly used global organizational designs? What is its advantage?

Question 69

The matrix form of organization structure is:

A)the most bureaucratic type of organization.
B)the least specialized type of organization.
C)particularly suitable in the case of prospector businesses.
D)not appropriate for a business facing uncertain environment.

Question 70

Do the organizational structures,policies,and resources differ with each competitive strategy? Why?

Question 71

How much interfunctional conflict should a low-cost defender expect,and what is the best way of resolving the conflict?

Question 72

Define the following formalization,centralization,and specialization.

Question 73

List the five key drivers based on which the managers decide that the time has come to restructure an organization?

Question 74

The key issues section of the annual marketing plan:

A)specifies the goals to be accomplished in terms of sales volume,market share,and profit.
B)summarizes the overall strategic approach that will be used to meet the plan's objectives.
C)presents a short overview of the issues,objectives,strategy,and actions incorporated in the plan.
D)identifies the main opportunities and threats to the product that the plan must deal with in the coming year.

Question 75

Which of the following statements will likely appear in an action plan?

A)Alter focus from the simulation of primary demand to secondary demand.
B)Change advertising message to highlight competitive features.
C)Relative share increased more than did sales dollars.
D)Research indicates that sales volume can be increased 10% via an emerging segment.

Question 76

What are the factors that are most likely to aid the successful implementation of a given business strategy?

Question 77

Which of the following statements is expected to be found in the objectives section of the marketing plan?

A)Alter focus from the simulation of primary demand to secondary demand.
B)Change advertising message to highlight competitive features.
C)Relative share increased more than did sales dollars.
D)Maintain current sales at last year's unit volume.

Question 78

Self-managing teams are based on the concept of:

A)centralization of power.
B)empowerment.
C)formalization.
D)functional management.

Question 79

The _____ is the most crucial part of the annual marketing plan for ensuring proper execution and spell out specific steps necessary to implement the strategy for the product are listed.

A)marketing strategy
B)contingency plan
C)action plan
D)performance review

Question 80

Which of the following sections in a marketing plan identifies and describes the product's major rivals in terms of their size,market share,product quality,marketing strategies,and other relevant factors?

A)Past product performance
B)Market situation
C)Competitive situation
D)Macroenvironmental situation