Question 1

Which of the following is true with regard to strategic planning?
A) At the corporate level, the company starts the strategic planning process by determining what portfolio of businesses and products is best for the company.
B) A strategic plan deals with a company's short-term goals.
C) The focus of strategic planning is to define a game plan for long-run survival and growth.
D) The strategic plan is a statement of an organization's purpose.
E) Strategic planning involves identifying segments of consumers with identical preferences.

Accepted Answer

Strategic planning is a process that involves defining an organization's direction, making decisions on allocating its resources, and formulating plans to achieve its objectives. The focus of strategic planning is to develop a long-term game plan for an organization's survival and growth. Therefore, option C is the correct answer.
Option A is incorrect because while corporate-level strategic planning involves deciding which businesses and products are best for the company, it is not the starting point of the process.
Option B is incorrect because a strategic plan typically focuses on long-term goals, not short-term ones.
Option D is incorrect because a statement of purpose is part of an organization's mission statement, not its strategic plan.
Option E is incorrect because strategic planning involves analyzing market segments to identify opportunities for growth, but it does not necessarily involve identifying segments with identical preferences.

Question 2

Mission statements should be ________.
A) meaningful and specific yet motivating
B) technology oriented
C) written solely for public relations purposes
D) focused on increasing sales or profits
E) strictly product oriented

Accepted Answer

A mission statement is a concise summary of an organization's purpose, values, and goals. It should provide direction for the company's strategy and decision-making, and serve as a guiding principle for its employees and stakeholders.
The best mission statements are meaningful and specific, as they should accurately reflect the organization's core values and purpose. At the same time, they should be motivating, inspiring employees and other stakeholders to work towards achieving the company's goals.
Option B, focusing on technology, is too narrow and may not accurately capture the organization's overall purpose. Option C, writing solely for public relations purposes, would undermine the authenticity and credibility of the mission statement. Option D, focusing only on sales or profits, may be too narrow and may not reflect the broader purpose and values of the organization. Option E, being strictly product oriented, would miss the larger picture of what the organization is trying to achieve.
Therefore, the best choice is A) meaningful and specific yet motivating.

Question 3

Orion Inc. operates in many industries, including pharmaceuticals and food products. The company's goal is to create "abundant and affordable food for all and a healthy environment." This represents Orion's ________.
A) marketing plan
B) product mix
C) business portfolio
D) marketing mix
E) mission statement

Accepted Answer

The statement describes the company's overarching purpose and values, which is characteristic of a mission statement.

Question 4

Mission statements should be defined in terms of ________.
A) the advantages a company's products provide
B) satisfying basic customer needs
C) the value a company's products provide
D) the profitability of a company's products
E) the variety they offer to a customer

Accepted Answer

Mission statements should focus on satisfying basic customer needs, as they define the organization's purpose and primary objectives related to its customers and the market.

Question 5

________ is the process of developing and maintaining a crucial fit between the organization's goals and capabilities and its changing marketing opportunities.
A) Benchmarking
B) SWOT analysis
C) Market segmentation
D) Strategic planning
E) Diversification

Accepted Answer

Strategic planning is the process of developing and maintaining a crucial fit between the organization's goals and capabilities and its changing marketing opportunities. It involves defining the organization's mission, setting objectives, analyzing the internal and external environment (using tools like SWOT analysis and market segmentation), developing strategies, and implementing and monitoring the plan's progress. This process helps organizations to align their resources and activities with their long-term goals and to adapt to changing market conditions. Benchmarking and diversification are also important business strategies, but they are not specifically focused on aligning organizational goals and capabilities with marketing opportunities. Market segmentation is a technique used in marketing to divide a broad target market into smaller groups of consumers with similar needs and characteristics.

Question 6

A ________ documents an organization's purpose-what it wants to accomplish in the larger environment.
A) vision statement
B) mission statement
C) business portfolio
D) value proposition
E) product strategy

Accepted Answer

A mission statement is a formal document that defines an organization's core purpose and its objectives. It outlines what the organization wants to achieve in the larger environment, including its values, products or services, and target customers. A mission statement serves as a guide for decision-making and helps to align the actions of the organization with its overall goals. In contrast, a vision statement describes the organization's long-term aspirations, and a business portfolio is a collection of products or services offered by a company. A value proposition outlines the unique value that a company offers to its customers, and a product strategy describes how a company plans to achieve its goals through its product offerings.

Question 7

Which of the following companies has a market-oriented business definition?
A) An electronics company, whose business definition is: "We produce microchips."
B) A hotel, whose business definition is: "We rent rooms."
C) An apparel company, whose business definition is: "We make and sell women's clothing."
D) A cosmetic company, whose business definition is: "We sell hope and self-esteem."
E) A pizzeria, whose business definition is: "We sell the world's most delicious thin-crust pizzas."

Accepted Answer

A market-oriented business definition focuses on the benefits and value provided to customers, rather than just the products or services offered. "We sell hope and self-esteem" emphasizes the emotional and psychological benefits to the customer, aligning with a market-oriented approach.

Question 8

Which of the following is a market-oriented mission statement?
A) "We empower customers to achieve their dreams."
B) "We sell jumbo burgers."
C) "We are an online library."
D) "We are a low-cost airline."
E) "We make porcelain figurines."

Accepted Answer

A market-oriented mission statement focuses on fulfilling customer needs and desires, which is reflected in empowering customers to achieve their dreams.

Question 9

A company's broad mission leads to ________.
A) increasing profits and more customers
B) increasing sales and decreasing costs
C) a higher share price
D) a hierarchy of objectives, including business objective and marketing objectives
E) increased market share and increasing profitability

Accepted Answer

A company's broad mission statement sets the overall direction and purpose of the organization. It is a statement that guides decision-making, strategy development, and goal-setting for the company. However, a broad mission statement alone does not lead to specific outcomes such as increasing profits, gaining more customers, or increasing sales.
Instead, a hierarchy of objectives is needed, including both business objectives and marketing objectives, to translate the company's broad mission into specific goals that can be achieved. Business objectives are focused on achieving financial performance, such as increasing profits or reducing costs, while marketing objectives are focused on achieving specific marketing outcomes, such as increasing market share or improving customer satisfaction.
Therefore, the best choice is D, as a broad mission statement should lead to the development of a hierarchy of objectives, including business objectives and marketing objectives.

Question 10

Which of the following companies has a product-oriented business definition?
A) A luxury hotel, whose business definition is: "We sell out-of-the-world experiences to our guests."
B) A real estate company, whose business definition is: "We sell dreams."
C) A cosmetic company, whose business definition is: "We offer hope and self-expression."
D) A shoe manufacturer, whose business definition is: "We manufacture affordable and long-lasting shoes for all."
E) A high-technology company, whose business definition is: "We sell inspirations."

Accepted Answer

A product-oriented business definition is one that focuses on the product or service that a company offers. This type of definition emphasizes the characteristics and benefits of the product, rather than the customer or market.
Out of the options given, only the shoe manufacturer's business definition is product-oriented. It clearly describes the product that the company offers, stating that they manufacture affordable and long-lasting shoes for all. The other options focus more on the experience, dreams, hope, self-expression, or inspirations that their products or services provide, rather than the product itself.

Question 11

The purpose of strategic planning is to find ways in which your company can best use its strengths to take advantage of attractive opportunities in the environment.

Accepted Answer

Strategic planning involves aligning a company's strengths with opportunities in the external environment to achieve long-term goals and competitive advantage.

Question 12

A company's mission statement provides the depth needed for all segments of the company to reach their goals.

Accepted Answer

A mission statement provides a general direction and purpose for a company, but it does not provide detailed guidance for achieving specific goals.

Question 13

Which of the following is the first step in strategic planning?
A) setting short-term goals
B) developing the business portfolio
C) defining the organizational mission
D) formulating the key marketing strategies
E) identifying the organization's weaknesses and the threats it faces

Accepted Answer

Defining the organizational mission is the first step in strategic planning because it provides a clear and concise statement of the organization's purpose and goals. The mission statement helps to guide decision-making and serves as a foundation for developing the business portfolio, setting short-term goals, formulating key marketing strategies, and identifying weaknesses and threats. Once the organizational mission is defined, the other steps in strategic planning can be taken to align the organization's resources and efforts towards achieving its mission.

Question 14

Companies that define their missions in terms of products or technologies are considered myopic primarily because ________.
A) products and technologies result in low returns on investment
B) consumer preferences with regard to products and technology are difficult to predict
C) consumer preferences for different product categories vary from time to time
D) products and technologies eventually become outdated
E) most consumers are not comfortable using sophisticated technology during the buying process

Accepted Answer

Products and technologies eventually become outdated, so companies focusing solely on them may miss broader market opportunities and fail to adapt to changing consumer needs and preferences.

Question 15

Which of the following is NOT a step in the strategic planning process?
A) defining the company mission
B) setting company objectives and goals
C) designing the business portfolio
D) planning marketing and other functional strategies
E) evaluating members of the company's value chain

Accepted Answer

Evaluating members of the company's value chain is not a step in the strategic planning process; it is more related to operational management and supply chain analysis.

Question 16

Which of the following is NOT a market-oriented business definition?
A) "We empower customers to realize their dreams."
B) "We make high-quality consumer food products."
C) "We sell success and status."
D) "We create the Hilton experience."
E) "We bring innovation to every home."

Accepted Answer

A market-oriented business definition focuses on the benefits and experiences provided to customers rather than the products themselves. Option B focuses on the product ("high-quality consumer food products") rather than the customer experience or benefit.

Question 17

Which of the following is NOT an example of product-oriented mission statements?
A) "We are an online library."
B) "We run theme parks."
C) "We sell athletic shoes."
D) "We sell memorable experiences."
E) "We rent hotel rooms."

Accepted Answer

Product-oriented mission statements describe the product or service that a company offers. The remaining statements in the list (A, B, C, and E) are all examples of product-oriented mission statements because they clearly describe the product or service the company provides.
However, option D, "We sell memorable experiences," is not a product-oriented mission statement. While it describes what the company offers in a broad sense, it is more of a value proposition or a customer-oriented statement rather than a description of the product itself. It suggests that the company is focused on providing an emotional connection with their customers rather than a specific tangible product.

Question 18

Mission statements should ________ and be defined in terms of ________.
A) be technology oriented; meeting the self-actualization needs of customers
B) be product oriented; satisfying the esteem needs of customers
C) embody the company's short-term plans; current opportunities
D) be market oriented; satisfying basic customer needs
E) address sales and profits; the net return on investments

Accepted Answer

Mission statements should be market oriented and focus on satisfying basic customer needs, as this approach ensures that the company remains relevant and aligned with the evolving demands and expectations of its customers.

Question 19

A mission statement serves as a ________.
A) statement of the organization's net profits
B) plan for short-term sustainability
C) statement of the organization's purpose
D) statement of the organization's current liabilities
E) reward plan for the organization's highly skilled employees

Accepted Answer

A mission statement is a statement of the organization's purpose or reason for existence. It outlines the organization's core values, goals, and objectives and serves as a guide for decision-making and strategy development. It is usually a concise statement that communicates the organization's philosophy, priorities, and direction. A mission statement is not a statement of the organization's net profits or current liabilities, nor is it a plan for short-term sustainability or a reward plan for highly skilled employees.

Question 20

A company's broad mission leads it to develop all of the following EXCEPT ________.
A) budget objectives
B) business objectives
C) sales objectives
D) marketing objectives
E) customer engagement objectives

Accepted Answer

A company's broad mission statement outlines its overall purpose and values. This mission provides a guiding principle for the company's decision-making and strategic planning.
In order to achieve its mission, a company will typically develop specific goals and objectives that align with that mission. These may include business objectives, sales objectives, marketing objectives, and customer engagement objectives.
However, budget objectives are not directly related to a company's mission. Instead, they are typically developed as part of the financial planning process and are focused on managing the company's resources effectively. While budget objectives may indirectly support the company's mission by ensuring that it has the financial resources necessary to achieve its goals, they are not typically included as a specific objective related to the company's mission statement.

Quiz 2: Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Which of the following is true with regard to strategic planning?

Mission statements should be ________.

Orion Inc. operates in many industries, including pharmaceuticals and food products. The company's goal is to create "abundant and affordable food for all and a healthy environment." This represents Orion's ________.

Mission statements should be defined in terms of ________.

________ is the process of developing and maintaining a crucial fit between the organization's goals and capabilities and its changing marketing opportunities.

A ________ documents an organization's purpose-what it wants to accomplish in the larger environment.

Which of the following companies has a market-oriented business definition?

Which of the following is a market-oriented mission statement?

A company's broad mission leads to ________.

Which of the following companies has a product-oriented business definition?

The purpose of strategic planning is to find ways in which your company can best use its strengths to take advantage of attractive opportunities in the environment.

A company's mission statement provides the depth needed for all segments of the company to reach their goals.

Which of the following is the first step in strategic planning?

Companies that define their missions in terms of products or technologies are considered myopic primarily because ________.

Which of the following is NOT a step in the strategic planning process?

Which of the following is NOT a market-oriented business definition?

Which of the following is NOT an example of product-oriented mission statements?

Mission statements should and be defined in terms of .

A mission statement serves as a ________.

A company's broad mission leads it to develop all of the following EXCEPT ________.