Question 1

GM's original first-year ________ goal for the Volt was 10,000 units,although the product was well into its second year before reaching that level.
A)profit
B)market share
C)sales
D)customer satisfaction
E)survival

Accepted Answer

This is an example of a sales goal,which is sometimes in dollars or in units,as it is here.

Question 2

When a firm recognizes the critical importance of its employees by attempting to provide good conditions and opportunities,it sets an employee ________ goal.
A)satisfaction
B)responsibility
C)compensation
D)core value
E)welfare

Accepted Answer

Business firms pursue several different types of goals such as profit,sales,market share,quality,customer satisfaction,employee welfare,and social responsibility.When a firm recognizes the critical importance of its employees by providing them with good employment opportunities and working conditions,this is an employee welfare goal.

Question 3

Steep markdowns at a retail store for end-of-year sales are likely to help with which goal,rather than a profit one?
A)Social responsibility
B)Sales
C)Market share
D)Customer satisfaction
E)Survival

Accepted Answer

If profits are acceptable,a firm may elect to maintain or increase its sales level even though profits may not be maximized.

Question 4

Pharmavite LLC recently recalled several lots of Nature Made vitamin products due to possible salmonella or staphylococcus contamination.It should have adopted a more rigorous ________ goal.
A)profit
B)sales revenue
C)customer satisfaction
D)employee welfare
E)quality

Accepted Answer

Pharmavite needed a quality goal because it failed to protect its products from contamination.If adequate quality were present,there would not be need for recalls like these.

Question 5

A firm may have a goal to offer its customers the highest ________,as Medtronic does with its implantable medical devices that meet its customers' critical performance expectations.
A)innovation
B)quality
C)service
D)value
E)warranty

Accepted Answer

Business firms pursue several different types of goals such as profit,sales,market share,quality,customer satisfaction,employee welfare,and social responsibility.Medtronic offers its customers the highest quality with its implantable medical devices.

Question 6

Market share refers to
A)the ratio of the profit of the firm to the total profits of all firms in the industry,excluding the firm itself.
B)the ratio of the profit of the firm to the total profits of all firms in the industry,including the firm itself.
C)the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry,excluding the firm itself.
D)the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry,including the firm itself.
E)the ratio of the profits of all firms in an industry to the profits of the firm.

Accepted Answer

Key term definition-market share.

Question 7

Market share is the ratio of sales revenue of the firm to the total sales revenue of all ________,including the firm itself.
A)firms in the industry
B)firms in the competitive set
C)firms in the WTO
D)product groupings
E)domestic firms in a country

Accepted Answer

Key term definition-market share.

Question 8

Seeking to obtain as high a financial return on their investments (ROI)as possible,firms will often set ________ goals.
A)sales
B)quality
C)market share
D)profit
E)employee welfare

Accepted Answer

Business firms pursue several different types of goals such as profit,sales,market share,quality,customer satisfaction,employee welfare,and social responsibility.Most seek to maximize profit to obtain as high a financial return on their investments (ROI)as possible.

Question 9

Motorola,a pioneer firm in the mobile communications space,invented a program known as Six Sigma,which sets as a goal no more than one defect in one million parts manufactured.This is an example of ________ goal.
A)a profit
B)a sales revenue
C)a quality
D)a market share
E)an employee welfare

Accepted Answer

Six Sigma is a quality program that sets a goal of no more than 1 part per million defective.A firm may target the highest quality,as Motorola did with its Six Sigma program.

Question 10

Lands' End,an American apparel and outerwear firm,ships each order within 48 hours and its guarantee is said to be the best in the world,as exemplified by its tagline "Guaranteed Period." These marketing actions by Lands' End most likely reflect its ________ goals.
A)profit
B)market share
C)employee welfare
D)social responsibility
E)customer satisfaction

Accepted Answer

Customer satisfaction can be measured directly with surveys or tracked through complaints,which should be minimized by increasing the percent of orders shipped within 48 hours of receipt and its guarantee.

Question 11

If Dr.Pepper Snapple plans to grow its proportion of the flavors segment of the carbonated soft drink industry to 45 percent,it has set ________ goal.
A)a sales proportionality
B)a company sales
C)an industry potential
D)a contribution margin
E)a market share

Accepted Answer

This is an example of a market share goal.Market share is the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry,including the firm itself.

Question 12

Howard Schultz,the founder of the American coffee chain Starbucks,provides health care for all employees who work over 20 hours per week.He says,"The companies that are doing the right thing by covering their employees [with health care coverage] are paying for the companies who don't do the right thing." This is an example of one of Starbucks' ________ goals.
A)profit
B)market share
C)employee welfare
D)customer satisfaction
E)sales

Accepted Answer

A firm may recognize the critical importance of its employees by having an explicit goal stating its commitment to good employment opportunities and working conditions for them,the situation with Starbucks.

Question 13

Toyota had some difficulty recovering from a recall crisis several years ago when it was forced to recall about 6 million vehicles due to a variety of problems,most notably one with the accelerator pedal.To "polish" its brand,it implemented stricter ________ goals to improve the safety and reliability of its vehicles.
A)profit
B)sales revenue
C)customer satisfaction
D)quality
E)employee welfare

Accepted Answer

Quality goals should help Toyota to regain the trust of consumers and rebuild its image as a producer of quality automobiles.

Question 14

A new company projects that its sales will exceed its expenses within the first year of operation.This is an example of which type of goal?
A)Dollar sales revenue
B)Profit
C)Market share
D)Unit sales
E)Quality

Accepted Answer

Most firms seek to maximize long-run profits,achieving as high a financial return on investment (ROI)as possible.Profit is the money left after a business firm's total expenses are subtracted from its total revenues.

Question 15

The top consumer complaint about bananas is how soon they start getting brown spots.Dole,a multinational agricultural company,most likely set ________ goal when it recently began adding stickers to bananas to promote the use of overripe bananas in the Yonanas machine (Dole owns 30 percent of the firm)to make a creamy,guilt-free dessert.
A)a profit
B)a market share
C)an employee welfare
D)a customer satisfaction
E)a social responsibility

Accepted Answer

Customer satisfaction can be measured directly with surveys or tracked through customer complaints.This action by Dole seems to be one intended to reduce the number of complaints about its bananas and thus improve satisfaction.

Question 16

Most firms seek to maximize their long-run ________,achieving as high a financial return on their investments as possible.
A)quality
B)market share
C)employee welfare
D)social responsibility
E)profits

Accepted Answer

Business firms can pursue several different types of goals including profit goals to get as high a financial return on its investments (ROI)as possible.

Question 17

The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry,including the firm itself,is referred to as
A)a sales proportionality.
B)a marketing metric.
C)an industry potential.
D)a contribution margin.
E)a market share.

Accepted Answer

Key term definition-market share.

Question 18

Sometimes maximizing sales will come at the expense of ________,so it is necessary to ensure that the latter remains at acceptable levels.
A)advertisements
B)sales force
C)profits
D)sustainability efforts
E)customer satisfaction

Accepted Answer

If profits are acceptable,a firm may elect to maintain or increase its sales level even though profits may not be maximized.

Question 19

Suppose L.L.Bean,a catalog retailer,has set a goal to reduce merchandise returns by 20 percent for the holiday season.The firm would most likely have set ________ goal.
A)a profit
B)a customer satisfaction
C)a market share
D)an employee welfare
E)a social responsibility

Accepted Answer

Customer satisfaction can be measured directly with surveys or tracked with performance measures (marketing metrics)such as the number of merchandise returns,which it wants to reduce by 20 percent for the holiday season.Returned merchandise is an indication of dissatisfied customers.

Question 20

Customers' perceptions are of vital importance to an organization.Customer ________ can be measured with surveys or by the number of customer complaints an organization receives.
A)satisfaction
B)welfare
C)lifetime benefit
D)value
E)responsibility

Accepted Answer

Business firms pursue several different types of goals such as profit,sales,market share,quality,customer satisfaction,employee welfare,and social responsibility.Customer satisfaction can be measured with surveys or by the number of customer complaints an organization receives.

Quiz 2: Developing Successful Organizational and Marketing Strategies

GM's original first-year ________ goal for the Volt was 10,000 units,although the product was well into its second year before reaching that level.

When a firm recognizes the critical importance of its employees by attempting to provide good conditions and opportunities,it sets an employee ________ goal.

Steep markdowns at a retail store for end-of-year sales are likely to help with which goal,rather than a profit one?

Pharmavite LLC recently recalled several lots of Nature Made vitamin products due to possible salmonella or staphylococcus contamination.It should have adopted a more rigorous ________ goal.

A firm may have a goal to offer its customers the highest ________,as Medtronic does with its implantable medical devices that meet its customers' critical performance expectations.

Market share refers to

Market share is the ratio of sales revenue of the firm to the total sales revenue of all ________,including the firm itself.

Seeking to obtain as high a financial return on their investments (ROI) as possible,firms will often set ________ goals.

Motorola,a pioneer firm in the mobile communications space,invented a program known as Six Sigma,which sets as a goal no more than one defect in one million parts manufactured.This is an example of ________ goal.

Lands' End,an American apparel and outerwear firm,ships each order within 48 hours and its guarantee is said to be the best in the world,as exemplified by its tagline "Guaranteed Period." These marketing actions by Lands' End most likely reflect its ________ goals.

If Dr.Pepper Snapple plans to grow its proportion of the flavors segment of the carbonated soft drink industry to 45 percent,it has set ________ goal.

A new company projects that its sales will exceed its expenses within the first year of operation.This is an example of which type of goal?

Most firms seek to maximize their long-run ________,achieving as high a financial return on their investments as possible.

The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry,including the firm itself,is referred to as

Sometimes maximizing sales will come at the expense of ________,so it is necessary to ensure that the latter remains at acceptable levels.

Suppose L.L.Bean,a catalog retailer,has set a goal to reduce merchandise returns by 20 percent for the holiday season.The firm would most likely have set ________ goal.

Customers' perceptions are of vital importance to an organization.Customer ________ can be measured with surveys or by the number of customer complaints an organization receives.