Question 1

According to the text, one of the main reasons that IKEA has been able to grow rapidly without greater capital investments is that
A) it operates in tax havens.
B) most of its production is outsourced to other firms.
C) it is a privately held company.
D) it has relied more on local production.
E) it sells at the lowest cost price in the market.

Accepted Answer

The text states that one of the main reasons for IKEA's rapid growth with limited capital investment is that it outsources most of its production to other firms, allowing it to focus on design and retail.

Question 2

It is the chief executive's job to communicate with others in the organization and explain the new marketing strategy, what needs to happen, and why.

Accepted Answer

The answer of It is the chief executive's job to...

Question 3

Human resource issues can be especially important when there is a need to implement a new marketing plan that involves major changes in the organization.

Accepted Answer

Implementing a new marketing plan can bring significant changes to an organization's structure, processes, and people. Human resource issues such as training, recruitment, and compensation might arise during the implementation phase, and addressing them effectively can be critical to the success of the plan. Therefore, human resources can play a pivotal role in the implementation of a new marketing plan.

Question 4

Marketing managers should plan time for strategy changes and not put undue pressure on the people in their organization to perform heroic efforts.

Accepted Answer

Planning for strategy changes allows for flexibility and adaptability, reducing the need for heroic efforts from individuals in the organization. Pressure to consistently perform heroic efforts can lead to burnout and decreased effectiveness in the long term.

Question 5

Training is especially important during rapid growth of a company because it takes time to hire people and get them up to speed.

Accepted Answer

Rapid growth often means there is an increased demand for new employees, which can cause a strain on existing staff and resources. Proper training can help new hires get up to speed faster and contribute to the company's growth more quickly. Without it, the onboarding process can take longer and may hinder the company's ability to keep up with its own growth.

Question 6

A marketing plan for a new strategy needs to take into consideration the time--and effort--that will be required to get people up to speed on the new jobs they will be expected to do.

Accepted Answer

Yes, a marketing plan for a new strategy should consider the time and effort required to train employees on new tasks and responsibilities so that they can effectively execute the new strategy.

Question 7

In planning a new strategy or reorganization, it's important to keep in mind that each change may require several other changes, and each change may take time.

Accepted Answer

This statement is true. When implementing a new strategy or reorganization, it's important to assess how each change will impact other aspects of the organization and to be aware that the process may take time.

Question 8

It is the responsibility of the chief executive--not the marketing manager-- to make the strategic planning decisions that concern how a firm is going to use its overall resources--from marketing, production, finance and other areas.

Accepted Answer

The chief executive is responsible for overall strategic planning decisions that involve all resources of the firm, not just marketing.

Question 9

The department within a company that is typically concerned with providing money to invest in marketing plans and meet ongoing expenses is the:
A) Marketing department.
B) Production department.
C) Finance department.
D) Accounting department.
E) Human resources department.

Accepted Answer

The finance department is typically responsible for managing the company's financial resources, including providing funding for marketing plans and ongoing expenses. The marketing department focuses on creating and implementing marketing strategies, the production department is responsible for manufacturing products, the accounting department handles financial reporting and record-keeping, and the human resources department manages employee-related matters.

Question 10

A new marketing strategy often upsets established ways of doing things in the organization.

Accepted Answer

A new marketing strategy may require changes in product design, pricing, distribution, and communication strategies, which can upset established ways of doing things in the organization. It may also require additional resources and reallocation of budgets, which can cause resistance from other departments or divisions within the organization. Therefore, a new marketing strategy can potentially disrupt the current organizational structure and processes.

Question 11

While there are real human resources challenges in dealing with rapidly expanding marketing efforts, there are also challenges in dealing with decisions to drop products, channels of distribution, or even certain types of customers.

Accepted Answer

Yes, this statement is true. Just as expanding marketing efforts can lead to challenges in human resources management, making decisions to discontinue products, channels, or customers can also present challenges for a company. These decisions can affect various departments and stakeholders, and must be carefully considered before implementation.

Question 12

It is the marketing manager's job to communicate with others in the organization and explain the new strategy, what needs to happen, and why.

Accepted Answer

Yes, it is the marketing manager's responsibility to communicate the new strategy and ensure everyone in the organization understands their role in implementing it.

Question 13

Rapid growth strains human resources because it's a challenge getting enough qualified people.

Accepted Answer

Rapid growth means that there is an increased demand for employees and hiring enough qualified people can be difficult, putting a strain on human resources.

Question 14

_____ refers to the money invested in a firm.
A) Dividend
B) Debt
C) Cash flow
D) Capital
E) Overhead

Accepted Answer

Capital refers to the money invested in a firm, such as equity from shareholders or retained earnings.

Question 15

Many of the people affected by a new strategy may not be under the control of the marketing manager.

Accepted Answer

Marketing managers may need to consider the impact of their strategies on various stakeholders, including customers, competitors, regulators, suppliers, and employees. However, they may not have control over all of these stakeholders, particularly those outside their organizations, such as government agencies, industry associations, or advocacy groups. Therefore, marketing managers need to be aware of the potential reactions and responses of these stakeholders and develop contingency plans to address any concerns, objections, or criticisms they may have about the new strategy.

Question 16

It is the responsibility of the marketing manager to make the strategic planning decisions that concern how a firm is going to use its overall resources--from marketing, production, finance and other areas.

Accepted Answer

Strategic planning decisions, including how a firm uses its overall resources, are typically the responsibility of top management or executive leadership, not solely the marketing manager. The marketing manager focuses on planning and executing marketing strategies within the broader strategic framework set by higher management.

Question 17

Cross-functional challenges are greatest
A) when minor changes are made to an existing strategy.
B) in routine established operations.
C) to a plan that the firm is already implementing.
D) when developing completely new marketing strategies.
E) when competition is nonexistent.

Accepted Answer

Developing completely new marketing strategies requires input from various departments such as marketing, finance, operations, and research and development. This can cause cross-functional challenges as each department may have different goals or opinions on the strategy.

Question 18

A firm's _____ is usually responsible for finding and allocating capital.
A) chief financial officer
B) chief operating officer
C) chief technology officer
D) chief executive officer
E) chief marketing officer

Accepted Answer

The chief financial officer (CFO) is responsible for managing the financial operations of a firm, including finding and allocating capital. The CFO typically reports to the CEO and plays a critical role in financial decision-making.

Question 19

The marketing manager needs to work with the human resources manager--or with other managers--who will participate in preparing the firm's personnel for changes required by a new marketing strategy.

Accepted Answer

The marketing manager should collaborate with the human resources manager or other managers to ensure that personnel are prepared for any changes associated with a new marketing strategy.

Question 20

Marketing strategies and plans that the marketing manager recommends are more likely to be accepted--and then successfully implemented--if the links between marketing and other functional areas have been carefully considered from the outset.

Accepted Answer

By considering the links between marketing and other functional areas, the marketing manager can develop effective strategies and plans that are more likely to be accepted and successfully implemented by the other departments. This also helps to ensure that the marketing goals are aligned with the overall organizational objectives.

Quiz 20: Managing Marketings Link With Other Functional Areas

According to the text, one of the main reasons that IKEA has been able to grow rapidly without greater capital investments is that