Question 1

Areas of business within a firm that are distinct enough to have their own missions, business objectives, resources, managers, and competitors are referred to as ________.

Accepted Answer

Strategic business units (SBUs) are standalone entities within a larger organization that have their own distinct missions, objectives, and resources. They are managed independently and often have their own competitors. This allows the larger organization to focus resources and attention to each SBU individually, making it easier to measure and improve their performance. The other options - market development units, market penetration units, standard business units, and competitive intelligence units - are not commonly used terms for defining business areas within a firm.

Question 2

Strategic planning for a large firm such as Disney with several SBUs probably occurs ________.

Accepted Answer

Strategic planning at Disney likely occurs both at the overall corporate level and at the individual SBU level, as they have multiple SBUs that each require their own specific strategies, but all ultimately fall under the umbrella of the larger corporate entity.

Question 3

Which of the following is true about functional planning?

Accepted Answer

Functional planning is conducted by the various functional areas of a firm, such as marketing, finance, operations, and human resources. It is focused on achieving specific objectives within each of these areas and is typically conducted over a shorter time horizon than strategic planning. Hierarchical management, on the other hand, refers to the levels of authority and decision-making within an organization.

Question 4

Which of the following types of managers would be most likely to engage in operational planning on a regular basis?

Accepted Answer

The sales manager would be most likely to engage in operational planning on a regular basis as their role involves planning and executing sales strategies and goals on a day-to-day basis. The other options may handle more strategic planning or policy development rather than operational planning.

Question 5

Market planning is a type of ________.

Accepted Answer

The answer of Market planning is a type of ________.
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Question 6

Kimball Gardens is a company that operates as two distinct businesses: one that sells lawn and garden products and one that markets booklets. Each business is called a ________.

Accepted Answer

Each business within Kimball Gardens is a Strategic Business Unit (SBU), a term used in strategic management to refer to individual business units within a larger corporation that operate as separate autonomous entities with their own mission, goals, and business models.

Question 7

The CEO, president, and top executive officers are responsible for ________ in the strategic plan.

Accepted Answer

The CEO, president, and top executive officers are responsible for defining the firm's purpose in the strategic plan. Operational planning, developing pricing strategy, designing ad campaigns, and determining employee benefits are responsibilities of other departments within the organization.

Question 8

A business plan ________.

Accepted Answer

A business plan includes the decisions that guide the entire organization or its business units, including financial, operational, and marketing strategies. While marketing strategies may be included in a business plan, it is not the sole focus. Measuring and controlling marketing strategies would be part of a marketing plan. A SWOT analysis is a separate strategic planning tool, not synonymous with a business plan.

Question 9

________ is the third, or "nuts-and-bolts," level of planning.

Accepted Answer

Operational planning involves developing specific plans and procedures to achieve the goals and objectives set in strategic and functional planning. It focuses on day-to-day tasks, resources, and processes necessary to carry out the organization's functions. This level of planning is also called "tactical planning" because it involves implementing specific tactics to achieve the objectives set in higher-level plans.

Question 10

________ is the first, or "big picture," level of planning.

Accepted Answer

Strategic planning is the first level of planning and involves setting the overall direction and goals of the organization. It focuses on the long-term perspective and involves top-level management. Functional planning (B) refers to planning for specific functions within the organization such as marketing or finance. Operational planning (C) involves planning for the day-to-day operations of the organization. Product development (D) involves planning for the creation of new products or improvements to existing products. Business planning (E) is a more holistic approach to planning that includes all aspects of the business, including strategic, operational, and functional planning.

Question 11

Which of the following is true about business planning?

Accepted Answer

Business planning is an ongoing process that involves setting objectives, analyzing resources, creating strategies, and regularly revising plans to achieve measurable results. It is not a one-time event, but rather a continuous effort to adapt to changing circumstances and achieve long-term success. Option A is incorrect because action should not be taken before developing objectives. Instead, objectives should be clearly defined and understood before taking action. Option C and D are incorrect because business planning is concerned with both short-term and long-term goals. Option E is incorrect because business planning includes the development of the marketing plan, but it is not limited to it.

Question 12

The three levels of business planning are ________.

Accepted Answer

The three levels of business planning are strategic, functional, and operational. Strategic planning involves long-term goal setting and determining the overall direction of the company. Functional planning focuses on specific areas of the company such as marketing, finance, or operations. Operational planning involves day-to-day decision making and implementation.

Question 13

________ is the managerial decision process that matches the organization's resources and capabilities to its market opportunities for long-term growth.

Accepted Answer

Strategic planning is the only managerial decision process described that involves matching the organization's resources and capabilities to market opportunities for long-term growth. Operational planning involves short-term plans for day-to-day processes, portfolio analysis involves evaluating the portfolio of products or services offered by the organization, SWOT analysis is a tool used within the strategic planning process to evaluate strengths, weaknesses, opportunities, and threats, and budgeting involves allocating resources and planning for financial expenditures.

Question 14

A detailed quarterly plan that states how many units of product each salesperson on the team needs to sell per month is an example of a(n) ________.

Accepted Answer

An operational plan details the specific, short-term actions and processes that help achieve strategic goals, including specific sales targets and the allocation of resources to meet those targets, making it the correct choice for a detailed quarterly sales plan.

Question 15

SBU stands for ________.

Accepted Answer

SBU stands for Strategic Business Units, which are independent units within a larger company that operate as separate businesses, each with their own set of goals and strategies.

Question 16

Vice presidents of large companies are typically in charge of ________ planning.

Accepted Answer

The answer of Vice presidents of large companies are typically...

Question 17

A(n) ________ is a document that describes the marketing environment, outlines the marketing objectives and strategies, and identifies how the company will implement the strategies.

Accepted Answer

A marketing plan is a detailed document that includes an analysis of the current marketing environment, sets marketing objectives and strategies, and defines how the company will implement these plans. It is a comprehensive guide that helps a company to achieve its marketing goals and objectives. The other options (communications plan, business plan, operational plan, financial plan) may be components of a marketing plan, but they do not cover all the aspects of a marketing plan.

Question 18

A sales manager sets an objective for her team to increase the units sold by five percent for the quarter. This objective is most likely part of a detailed ________ plan that is created annually, semiannually, or quarterly.

Accepted Answer

Operational plans are short-term, highly detailed plans designed to achieve tactical objectives. The goal of increasing units sold by five percent for the quarter fits the criteria of an operational plan, focusing on specific, short-term activities and objectives.

Question 19

Orkin Pest Control Service knows homeowners skimp on maintenance such as pest control during recessions. It also knows that the more consumers know about bugs, the more likely they are to buy the company's services. So Orkin teamed with the Smithsonian Institution on the Insect Safari, a traveling exhibit designed to teach people about the critters. The Safari truck visited 108 cities during one year, leaving a wake of creeped-out insectophobes reaching for the phone numbers of the local Orkin franchise. Business increased in each city the Safari truck visited. Decisions on which cities to visit and what kinds of promotion to use in each city visited are both examples of ________ plans.

Accepted Answer

Operational plans are short-term and very specific plans that guide day-to-day activities. In this case, deciding which cities to visit and the types of promotion to use are operational decisions aimed at executing the broader strategy of educating the public and increasing demand for pest control services.

Question 20

Columbia Sportswear makes nylon activewear. Its marketing manager set a goal to increase sales 12 percent over the next three years through the introduction of a new line of comfortable, lightweight clothing for people who fish. The marketing manager is engaged in ________.

Accepted Answer

The answer of Columbia Sportswear makes nylon activewear. Its marketing...

Quiz 3: Strategic Market Planning