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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) | nonprofit governmental agency. |
| | D) | nonprofit organization. |
| | 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 | |
Larry Ellison is CEO of a software design company named Oracle, a company that has automated many human resource functions such as tracking vacation time. Ellison 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 inspirational—something that can ignite the loyalty of employees and others with whom the organization comes in contact. |
| | A) | mission statement |
| | 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 unemployment figures. |
| | C) | of unpredictable employee expenses. |
| | D) | of stock sales. |
| | 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 growth. One technique to aid in these decisions is: |
| | A) | portfolio analysis. |
| | B) | contribution margin analysis. |
| | C) | benchmarking. |
| | D) | market-product analysis. |
| | E) | resource allocation analysis. |
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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 | |
A firm's SBUs often start as __________ and go counterclockwise around the Boston Consulting Group business portfolio analysis matrix. |
| | A) | cash cows |
| | B) | stars |
| | C) | question marks |
| | D) | dogs |
| | E) | exclamation points |
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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 | |
Strikes throughout Nigeria almost led to the country's financial ruin. For a company trying to do business in Nigeria during this time, the strikes would be an example of a(n): |
| | A) | strength. |
| | B) | weakness. |
| | C) | threat. |
| | D) | opportunity |
| | E) | challenge. |
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| 18 | |
What element of the marketing program is being considered when Medtronic decided to feature demonstrations at cardiologist and medical conventions across Asia to introduce the Champion and highlight the device's features and application? |
| | A) | Product |
| | B) | Price |
| | C) | Promotion |
| | D) | Place |
| | E) | All of the above |
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| 19 | |
Several years ago the Georgia Board of Education voted to have one Internet connection for each student. If current projections indicate that there will be one connection for every 7.5 students next year, the difference between the projections and the goal 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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