Deck 2: Developing Successful Organizational and Marketing Strategies

Question 1

Which statement best describes the most significant difference between a for-profit organization or a 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.

Answer 1

D

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

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

Answer 3

A

Question 4

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.

Question 5

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 6

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 7

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 8

A(n)__________ is a good,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 9

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 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 use the power of business to solve social and environmental problems.
E) been instrumental in expanding into international markets by creating dairies for developing nations.

Question 10

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 11

Cree markets LED (light-emitting diode)bulbs that replace the traditional incandescent bulb.A Cree LED bulb consumes 85 percent less energy and lasts 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.

Question 12

Social entrepreneurs who start new ventures such as Teach for America and SIRUM are usually structured as __________ rather than business firms.

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

Question 13

Ben & Jerry's entrepreneurial approach led the company to successfully implement many highly creative organizational and marketing strategies.One example includes

A) ISO 9000, promoting the quality concept through its commitment to making the finest ice cream from the best ingredients.
B) "linked prosperity," which encouraged 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) PartnerShops, Ben & Jerry scoop shops that are independently owned and operated by community-based nonprofit organizations.

Question 14

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 governmental
D) employee, distributor, and customer
E) public, private, and international

Question 15

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 16

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 17

Ben & Jerry's mission to make the world a better place is linked to various organizational and marketing strategies,one of which is

A) supporting farmers who agree to use sustainable farming practices, implementing fair working standards, and investing in local communities.
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 18

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 19

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 20

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 21

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 22

__________ starts new ventures that address important social needs and issues.These new enterprises are often organized as nonprofit organizations.

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

Question 23

Figure 2-1
In Figure 2-1,C represents the

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

Question 24

In Figure 2-1,D represents the

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

Question 25

SIRUM (Supporting Initiatives to Redistribute Unused Medicine)is an organization that works with health care systems to distribute unused prescription drugs (that would otherwise be destroyed)to patients who can't afford to pay for the drugs.SIRUM is an example of

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

Question 26

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 27

SIRUM 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 match unused prescription drugs with patients who cannot afford to purchase them.
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 28

A board of directors of an organization

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

Question 29

In Figure 2-1,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 30

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 31

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 cable television industry

Question 32

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 educate doctors and patients to end corneal blindness worldwide.
C) It provides education and small business loans to women in impoverished areas so that they can help themselves.
D) It offers free training and rehabilitation services for injured U.S. veterans returning from overseas conflict.
E) It offers tax credits to small businesses to employ undereducated, at-risk youth in their communities.

Question 33

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 34

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 35

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 36

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

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

Question 37

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 38

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 39

Social entrepreneurs' ventures 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 40

Figure 2-1
In Figure 2-1,B represents the

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

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

Question 42

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 43

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 44

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 45

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 46

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 47

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 48

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 49

__________ have an increasingly important role in top management because of their ability to think strategically,bringing 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 50

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 51

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 52

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 53

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 54

__________ 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 55

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 56

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 57

The corporate level of an organization is the

A) functional level.
B) proxy for the board of directors.
C) level of top management that directs overall strategy.
D) most independent level of the business.
E) strategic business unit level.

Question 58

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 59

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 60

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 61

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 62

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 63

Figure 2-2
In Figure 2-2,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

When developing new offerings,marketing may provide staff to serve as part of __________,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) a cross-functional team
B) a department
C) a strategic business unit
D) an organization
E) a business consortium

Question 65

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

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

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 68

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 69

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 70

The key role of marketing includes

A) supporting the board of directors.
B) operating at the corporate level.
C) looking outward by listening to customers.
D) managing executives.
E) delivering strategic business decisions.

Question 71

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 72

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

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

Question 73

Which of the following is one of the key elements of a visionary organization?

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

Question 74

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 75

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.

Question 76

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 77

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 78

Figure 2-2
In Figure 2-2,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 79

Figure 2-2
In Figure 2-2,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

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.