Question 1

Lands' End ships each order within 48 hours and its guarantee is the best in the world-"Guaranteed.Period.®" These actions by Lands' End are most likely examples of __________ goals.

Accepted Answer

Lands' End's focus on shipping orders quickly and providing a strong guarantee indicate a priority on customer satisfaction.

Question 2

If profits are acceptable, a firm that has set sales as its goal may elect to __________ even though profitability may not be maximized.

Accepted Answer

If a firm has set sales as its goal, then maintaining or increasing sales level would be the logical choice even if profitability may not be maximized. This may be acceptable as long as profits are acceptable. Abandoning green marketing, reducing the sales force, decreasing social responsibility or customer satisfaction may not align with the firm's overall goals or values.

Question 3

The terms "goal" and "objective" are often used interchangeably; however, in both cases, which of the following statements would be most accurate?

Accepted Answer

Both goals and objectives are meant to guide an organization towards achieving specific outcomes. However, goals refer to the overarching, long-term aims of the organization, while objectives are the specific, measurable steps that need to be taken to reach those goals. In order for an organization to successfully achieve its goals, all lower-level goals and objectives must ultimately contribute to achieving those at the next, higher level. This emphasizes the importance of aligning goals and objectives throughout an organization.

Question 4

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

Accepted Answer

If profits are acceptable, meaning they are meeting the firm's strategic objectives, the firm may choose to prioritize maintaining or increasing their sales levels. This can help ensure the company's market share and competitive position, even if it means sacrificing potential margins for immediately higher profits. Additionally, focusing on sales can lead to increased brand awareness and customer loyalty, contributing to long-term profitability.

Question 5

The founder of Starbucks, Howard Schultz, provides healthcare for all employees who work over 20 hours per week.He says that "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.

Accepted Answer

Howard Schultz's statement about providing healthcare for employees reflects a focus on employee welfare, as it highlights the company's commitment to the well-being and support of its workers.

Question 6

A small businesswoman was preparing her staff for the upcoming holiday season."We want to move as much inventory as possible.Not only can we highlight our holiday items, why not mark down some of our other seasonal items while people are in a shopping mood." From this statement, she is most concerned with __________ goals.

Accepted Answer

The small businesswoman is prioritizing sales revenue goals by wanting to move as much inventory as possible and marking down other seasonal items to take advantage of the holiday shopping mood.

Question 7

Many universities and other educational institutions provide retirement benefits by doubling the percentage the employee pays into the account up to a certain percentage of his or her pay.This provides a wonderful benefit to those who are full-time employees.This is an example of a __________ goal.

Accepted Answer

The retirement benefit provided by universities and other educational institutions is an example of a goal related to employee welfare. It is aimed at providing a better quality of life for employees after they retire.

Question 8

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

Accepted Answer

The ratio of a firm's sales revenue to the total sales revenue of all firms in the industry, including the firm itself, is referred to as its market share. Market share is a measure of the firm's competitive position in the industry and is an important factor in determining its success.

Question 9

Customers are the reason an organizations exists.Customer __________ can be measured with surveys or by the number of customer complaints it receives.

Accepted Answer

Customer satisfaction refers to how pleased or content a customer is with a product or service. Satisfaction can be measured through surveys that ask customers to rate their experience, or by the number of complaints a company receives. It is important for a company to prioritize customer satisfaction in order to build loyalty, increase retention rates, and drive repeat business.

Question 10

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

Accepted Answer

The statement "its sales will be greater than its expenses within the first year of operation" is referring to profit, which is the difference between sales and expenses. Therefore, this is an example of a profit goal.

Question 11

Xbox video game consoles were developed through a joint venture between Microsoft and the WWE (World Wrestling Entertainment, Inc.).Complaints about the video game began immediately after its introduction.These complaints ranged from missing parts to incorrect programming.It would seem obvious that the manufacturer of Xbox video game consoles should adopt __________ goals.

Accepted Answer

The complaints about missing parts and incorrect programming suggest that the quality of the Xbox video game consoles is lacking. Therefore, the manufacturer should adopt quality goals to address these issues and ensure customer satisfaction. While profit, sales revenue, and market share are all important considerations, they may not be achievable without a focus on quality. Employee welfare is also important, but not directly related to this specific issue.

Question 12

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

Accepted Answer

Market share compares the sales revenue of a specific company to the total sales revenue of all companies in the same industry, including the company itself. Therefore, the best choice is A. The other options (B, C, D, and E) are not relevant or accurate in defining market share.

Question 13

Market share refers to

Accepted Answer

Market share refers to the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself. It is a measure of the firm's competitiveness and domination in the industry.

Question 14

Motorola invented the Six Sigma program that sets as a goal no more than one defect in one million parts manufactured.This is an example of a __________ goal.

Accepted Answer

The goal of achieving no more than one defect in one million parts manufactured is focused on the quality of the product, making choice D, quality, the correct answer. The other choices, profit, sales revenue, market share, and employee welfare, are not directly related to the Six Sigma program's goal of improving product quality.

Question 15

When Apple introduced the iPhone it did so to great fanfare.Many corporate users, however, found that it did not sync with their servers; many customers could not download from their company email accounts nor immediately activate their phones.Based on these examples, it would seem that Apple should have adopted more stringent __________ goals prior to the iPhone's release.

Accepted Answer

The issues mentioned in the paragraph suggest that Apple lacked quality goals prior to the release of the iPhone. The product's failure to sync with corporate servers and inability to download from company email accounts indicate that Apple did not prioritize quality standards for enterprise use.

Question 16

Business firms pursue several different types of goals: profit, sales, market share, and offer the highest _________, as Medtronic does with its implantable medical devices.

Accepted Answer

The sentence mentions that Medtronic offers the highest "quality" with its implantable medical devices, which indicates that quality is the type of goal being pursued. The other options (innovation, service, personal care, warranty) are not mentioned in the sentence as being the type of goal pursued by Medtronic.

Question 17

When sales revenue is chosen as an organizational goal, a firm whose profits are acceptable

Accepted Answer

When sales revenue is the chosen organizational goal, the firm strives to maintain or increase sales levels, even if it means profitability is not maximized. This is because the revenue generated from sales is the main focus, rather than the profit margins. Therefore, the best choice is C.

Question 18

A catalog retailer who set its qualitative goal to reduce merchandise returns by 20 percent would have set __________ goals.

Accepted Answer

The goal to reduce merchandise returns by 20 percent is directly related to the satisfaction of the customers. Therefore, the qualitative goal set by the catalog retailer is focused on customer satisfaction.

Question 19

Most firms seek to maximize __________-to get as high a financial return on their investments (ROI) as possible.

Accepted Answer

Profit is the financial return on a firm's investments and is often regarded as the main objective of business. Maximizing profit ensures that a firm is able to sustain its operations, pay its stakeholders (including shareholders) and have resources to invest in future growth.

Question 20

Classic economic theory assumes a firm seeks to maximize its long-run _________, achieving as high a financial return on its investments (ROI) as possible.

Accepted Answer

The answer of Classic economic theory assumes a firm seeks...

Quiz 2: Developing Successful Marketing and Organizational Strategies