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1 | |
__________ is the money left over after a firm's total expenses are subtracted from its total revenues. |
| | A) | Shareholders' equity |
| | B) | Profit |
| | C) | Inventory turnover |
| | D) | Contribution margin |
| | E) | Asset leverage |
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2 | |
The goal of PartnerShops (operated by Ben & Jerry's) is to provide training and job opportunities for at-risk youth. Since PartnerShops does not have a profit goal, it would be an example of a: |
| | A) | for-profit service provider. |
| | B) | for-profit organization. |
| | C) | not-for-profit governmental agency. |
| | D) | not-for-profit company. |
| | E) | for-profit franchise. |
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3 | |
The three levels of strategy in organizations are: |
| | A) | product mix, product line, unit product. |
| | B) | strategic, tactical, and functional. |
| | C) | corporate, business unit, and functional. |
| | D) | corporate, functional, and departmental. |
| | E) | strategic, corporate, and departmental |
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4 | |
Craig Conway is CEO of a software design company named PeopleSoft, a company that has automated many human resource functions such as tracking vacation time. Conway operates at the ____ level of his organization. |
| | A) | business unit |
| | B) | functional |
| | C) | corporate |
| | D) | strategic |
| | E) | back office |
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5 | |
The __________ for PepsiCo is "We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of quality." |
| | A) | mission |
| | B) | organizational code of conduct |
| | C) | functional code |
| | D) | benefits statement |
| | E) | marketing concept |
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6 | |
Some corporations choose profit rather than sales revenue as an organizational goal. Sales revenues can be deceiving because: |
| | A) | increased sales may not increase profitability. |
| | B) | of fluctuations in inventory. |
| | C) | of unpredictable sales expenses. |
| | D) | of slow sales forecasting. |
| | E) | All of the above are reasons that sales revenues can be deceiving. |
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7 | |
A firm may recognize the critical importance of its __________, by having explicit goals that state its intention to improve work conditions by adding more lighting and providing the workers with more and better safety equipment. |
| | A) | satisfaction |
| | B) | sales revenue |
| | C) | market share |
| | D) | quality |
| | E) | employee welfare |
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8 | |
The water supply in many villages in Bangladesh is contaminated with heavy concentrations of arsenic. The people who must drink from the water supply are being slowly poisoned to death. When it learned of this problem, Apyron Technology developed an innovative water purification device that removes all traces of arsenic from the water. This innovative technology gave Apyron Technology __________ when it came to selling its low-cost water purification system. |
| | A) | a competitive advantage |
| | B) | benchmarking expertise |
| | C) | a tactical innovation |
| | D) | leapfrogging capabilities |
| | E) | a viable mission |
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9 | |
Designing a car is expensive and time-consuming even with the use of computers. Until recently there was no way for all the varied departments that are involved in new car development to work together. DaimlerChrysler has created a central, Web-based system that cuts the design and production process by at least two years. This is an example of a(n): |
| | A) | benchmarking project. |
| | B) | innovation-oriented mission. |
| | C) | action program. |
| | D) | operational goal implementation. |
| | E) | competency. |
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10 | |
Knowing where the organization is at the present time enables managers to set a direction for the firm and start to allocate resources to move toward that direction. Two techniques to aid in these decisions are: |
| | A) | market-product analyses and portfolio analysis. |
| | B) | break-even analysis and sales forecasting. |
| | C) | portfolio analysis and benchmarking. |
| | D) | contribution margin analysis and market-product analyses. |
| | E) | resource allocation and situational analyses. |
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11 | |
One of the strengths inherent in the use of the BCG portfolio analysis is that it: |
| | A) | is remarkably easy to locate an SBU on the BCG matrix. |
| | B) | considers all factors that might impact an SBU's value to an organization. |
| | C) | acts as a strong motivational tool for employees in SBUs that have been labeled dogs or problem children. |
| | D) | forces firms to assess their SBUs in terms of relative market share and industry growth rate. |
| | E) | shows visually all factors that might impact an SBU's value to society. |
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12 | |
Once an organization has determined how each of its business units should be labeled in terms of the BCG portfolio analysis, it is time to decide what strategy should be used with each. Which of the following is NOT one of the strategies available for use with each SBU? |
| | A) | build share |
| | B) | milk |
| | C) | hold share |
| | D) | harvest |
| | E) | divest |
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13 | |
The market for the fast car with so much horsepower that handling becomes an issue is decreasing. People are more interested in buying SUVs and pickups. As a result, General Motors is stopping production of its Camaro, a car that has had limited sales recently. Since the Camaro can no longer generate enough cash to sustain its manufacture, the BCG portfolio would classify it as a: |
| | A) | dog. |
| | B) | cash cow. |
| | C) | question mark. |
| | D) | star. |
| | E) | bonanza. |
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14 | |
In the Boston Consulting Group (BCG) model for analysis of a firm's strategic business units, or SBUs, the horizontal axis reflects the: |
| | A) | national forecast. |
| | B) | business portfolio in dollars. |
| | C) | years of experience. |
| | D) | market segment size. |
| | E) | relative market share. |
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15 | |
Pedigree is a widely used brand of dog food. Its introduction of Pedigree BreathBuster biscuits for dogs with bad breath and Pedigree JointCare meaty treats for dogs suffering from joint stiffness is an example of a __________ strategy. |
| | A) | diversification |
| | B) | market penetration |
| | C) | market development |
| | D) | product development |
| | E) | product penetration |
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16 | |
Loyal consumers have found numerous uses for WD-40 lubricating spray beyond what its manufacturer intended. For example, some people use the product as an insect killing spray. A few years ago, its manufacturer ran a contest asking people to send in ways that they used the product. By capitalizing on the unforeseen ways its product gets used, the WD-40 manufacturer could implement a __________ strategy. |
| | A) | market penetration |
| | B) | market development |
| | C) | product development |
| | D) | diversification |
| | E) | product penetration |
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17 | |
In the early months of 2002, strikes throughout Nigeria almost led to the country's financial ruin. For a company trying to do business in Nigeria during those months, the strikes would be an example of a(n): |
| | A) | strength. |
| | B) | weakness. |
| | C) | threat. |
| | D) | opportunity |
| | E) | challenge. |
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18 | |
There are many perfumes on the market, but only one that breaks down fragrances into elements so people can wear the particular scents with which they have emotional ties. The perfume's manufacturer is Demeter, and it makes over 150 different fragrances with names like Dirt, Lobster, Dandelion, Sugar Cookie, Brownie, Woodsmoke, Leather, and Turpentine. According to people who use Demeter perfume, its memorable scents would be what makes it superior to other perfumes. Which element of the marketing program is being considered when the company's owner decides to add scents that evoke colors? |
| | A) | product |
| | B) | price |
| | C) | promotion |
| | D) | place |
| | E) | all of the above |
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19 | |
The Georgia Board of Education voted to have one Internet connection for each student by the end of 2001. In 1998, there was one connection for each 35 students. In 2002, there was one connection for every 7.5 students. Putting a more realistic target date of an Internet connection for each student will mean the goal will not be achieved until the end of 2003. The difference between the new projections and the original projections is called: |
| | A) | the contribution margin. |
| | B) | a marginal analysis. |
| | C) | the product differentiator. |
| | D) | the planning gap. |
| | E) | a tactical analysis. |
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20 | |
At which phase of the strategic marketing process might a marketer discover the existence of a planning gap? |
| | A) | planning |
| | B) | motivating |
| | C) | control |
| | D) | evaluating |
| | E) | implementation |
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