Question 1

Comcast's NBC division acquired Universal Studios and the highest executive who approved this acquisition was most likely Comcast's CEO. This decision is the direct result of _____ planning process at Comcast.

Accepted Answer

Strategic planning involves long-term decisions that shape the direction of an organization, such as acquisitions and mergers. Acquiring Universal Studios would significantly impact Comcast's market position and offerings, aligning with strategic planning objectives.

Question 2

Enterprise Rental Cars is able to secure favorable prices from major automobile manufacturers such as Ford and Chevrolet for their rental fleets due to the large number of vehicles they purchase each year. This is an example of _____, one of Porter's Five Forces related to marketplace competition.

Accepted Answer

Buyer power refers to the impact that customers have on a producing industry. In this case, Enterprise Rental Cars has significant buyer power due to their large volume purchases, which allows them to negotiate better prices from automobile manufacturers.

Question 3

Compared to other organization personnel, more time is devoted to long-range strategic planning by the:

Accepted Answer

Top management is primarily responsible for long-range strategic planning, focusing on the overall direction and goals of the organization. Middle management, supervisory management, and manufacturing labor typically focus on more immediate operational and tactical issues.

Question 4

A company's plans that focus largely on its current and near-future activities and are determined by its middle level management are referred to as _____ plans.

Accepted Answer

Tactical plans focus on the current and near-future activities of a company and are typically developed by middle level management to implement parts of the strategic plan.

Question 5

Which of the following statements is true of tactical planning?

Accepted Answer

Tactical planning is focused on the short to medium term and helps in implementing the broader strategic plans. It serves as the foundation for operational planning, which deals with the day-to-day operations of the organization.

Question 6

Operational planning:

Accepted Answer

Operational planning is focused on the day-to-day operations and involves setting departmental rules and procedures, which is typically the responsibility of middle and lower management rather than top management.

Question 7

Employees of Popsie Inc., a small grocery store chain, are working on its tactical plans. The personnel most involved in this level of its planning process would be its:

Accepted Answer

Tactical plans are typically developed by middle management, as they translate the high-level strategies set by top management into specific, actionable plans. Middle managers like merchandising and advertising managers are responsible for developing and implementing these plans within their departments.

Question 8

Business strategist Michael E. Porter identified five competitive forces that influence _____ in a model called Porter's Five Forces.

Accepted Answer

Porter's Five Forces model is used to analyze an industry's competitive environment, which influences planning strategies.

Question 9

In the planning hierarchy, plans dealing with organization-wide objectives, long-term plans, and the total budget would be classified as _____ plans.

Accepted Answer

Strategic plans are designed to address organization-wide objectives, set long-term goals, and outline the total budget to achieve these goals, making them distinct from weekly, tactical, or operational plans which are more short-term and specific in focus.

Question 10

A company typically modifies its strategy when:

Accepted Answer

A company typically modifies its strategy when its actual performance is not in line with expected results. This is because such a discrepancy indicates that the current strategy is not effective in achieving the company's goals, necessitating a reassessment and adjustment of the strategy.

Question 11

An event management company decided to use radio advertising in order to promote an upcoming music festival. The executives of the company suggested various activities that could be used for the radio campaign. These activities are a part of the company's _____.

Accepted Answer

The activities suggested for the radio campaign are part of the company's tactical planning efforts. Tactical planning involves short-term actions and strategies that support the overall strategic plan, such as promoting an event through specific advertising campaigns.

Question 12

Promotional schemes like frequent shopper programs provide incentives to loyal buyers. Considering Porter's Five Forces model, such offers will:

Accepted Answer

Frequent shopper programs increase customer loyalty, making it harder for new entrants to attract customers, thus reducing the threat of new entrants.

Question 13

Which of the following is a dimension of Porter's Five Forces model?

Accepted Answer

Porter's Five Forces model includes the bargaining power of buyers as one of its dimensions, which assesses how much control buyers have over the price of goods.

Question 14

The U.S. Sports and Fitness Federation is determining where they should build their permanent training facility. They want it to be located near a populated center but it must also provide ample access to those who don't reside in cities. The federation is engaged in _____ planning.

Accepted Answer

Strategic planning involves long-term goals and considerations, such as the location of a permanent facility, which impacts both urban and rural access. This type of planning looks at the broader objectives and how to achieve them over time, fitting the scenario described.

Question 15

Preparation of quarterly and semiannual plans by personnel such as the general sales manager or advertising director would be classified as _____ planning.

Accepted Answer

Tactical planning involves short-term actions that are aimed at implementing the strategies of an organization. The preparation of quarterly and semiannual plans by roles like the general sales manager or advertising director fits this description, as these plans are designed to achieve specific objectives within a shorter timeframe, typically less than a year.

Question 16

A shoe manufacturer has multiple suppliers for leather. Based on this information, which of the following statements is true?

Accepted Answer

When a buyer has multiple suppliers to choose from, it increases the buyer's bargaining power and decreases the suppliers' bargaining power, because the buyer can switch between suppliers if necessary.

Question 17

Which of the following is NOT one of Porter's five Forces related to market competition?

Accepted Answer

Distinctive competencies are not one of Porter's five forces. Porter's five forces include the threat of new entrants, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and competitive rivalry within an industry. Distinctive competencies relate to a company's internal strengths and capabilities, not to the external competitive environment.

Question 18

The basic objectives or goals of an organization are derived from its:

Accepted Answer

The basic objectives or goals of an organization are primarily derived from its strategic planning process. This process involves defining the organization's strategy or direction and making decisions on allocating its resources to pursue this strategy, including its capital and people. Strategic planning sets the foundation for everything the organization does going forward, including setting objectives, goals, and the means to achieve them.

Question 19

The first step of the marketing planning process involves:

Accepted Answer

The first step in the marketing planning process often involves defining or revisiting the organization's mission statement, which guides the overall direction and goals of the marketing strategy.

Question 20

An automobile manufacturer is dependent on a single supplier for tires. Based on this information, which of the following statements is true?

Accepted Answer

The supplier has significant bargaining power because the automobile manufacturer is dependent on a single supplier for tires, giving the supplier leverage over prices and terms.

Quiz 2: Strategic Planning in Contemporary Marketing