Question 1

Which of the following typically included in a situation analysis?
A)financial objectives
B)marketing objectives
C)sales forecast
D)maintenance strategy

Accepted Answer

C

Question 2

Prospector business units and their marketing departments are likely to perform better when:
A)The decision-making authority is centralised.
B)Rigid rules and policies dominate managerial discretion.
C)There is a high degree of formalisation.
D)There are more specialists present.

Accepted Answer

Prospector business units require flexibility and agility to adapt to changing market conditions and customer needs. Having more specialists with diverse skills and knowledge can help the marketing department to stay responsive and innovative. Centralised decision-making, rigid rules, and high formalisation can hinder the ability to quickly test and implement new marketing strategies.

Question 3

Product management organisations:
A)rely primarily on hierarchical mechanisms for resolving conflicts across functional areas
B)are characterised by decentralised decision-making while increasing the amount of product specialisation within the SBU
C)are the most specialised type of organisation
D)are the most common organisational form among entrepreneurial start-ups,including many dot-com companies

Accepted Answer

Product management organisations are characterised by decentralised decision-making and increasing the amount of product specialisation within the Strategic Business Unit (SBU). They are not primarily relying on hierarchical mechanisms for resolving conflicts across functional areas. They may be specialised, but they are not the most specialised type of organisation. They are not the most common organisational form among entrepreneurial start-ups, as start-ups can take various forms.

Question 4

What is an organisational fit?
A)It refers to a firm using a highly centralised organisation structure in its early growth and effectively responding to the changes in the market.
B)It is a fit between an organisation's marketing strategy and the needs of its target customers and the technological realities of the marketplace.
C)It refers to a well-conceived foundation that permits effective implementation of a particular strategy.
D)It is the fit between a business's competitive and marketing strategies and the organisational structures,processes and plans necessary to effectively implement them.

Accepted Answer

Organisational fit is the alignment between the company's competitive and marketing strategies and its organisational structures, processes, and plans. It is vital for a company to have an organisational fit to effectively implement their strategies and achieve their goals. Option A talks about organisational structure and does not cover all aspects of organisational fit, while option B only covers marketing strategy and ignores other elements. Option C talks about a foundation for effective implementation but doesn't cover all aspects of organisational fit.

Question 5

Key issues in an annual marketing plan:
A)Identify the main opportunities and threats to the product that the plan must deal with in the coming year.
B)Summarise the overall strategic approach that will be used to meet the plan's objectives.
C)Describe actions to be taken if specific threats or opportunities materialise during the planning period.
D)Specify the goals to be accomplished in terms of sales volume,market share and profit.

Accepted Answer

The answer of Key issues in an annual marketing plan:
A)Identify...

Question 6

The ____ form is the least bureaucratic or centralised and the most specialised type of organisation.
A)functional
B)divisional
C)matrix
D)global

Accepted Answer

The matrix form is the least bureaucratic and most specialized type of organization, as it combines functional and divisional structures, allowing for flexibility and specialization.

Question 7

The evaluation and reward systems for which strategy comprises high incentives based on sales and share growth?
A)differentiated defender
B)prospector
C)low-cost defender
D)reactor

Accepted Answer

The strategy that comprises high incentives based on sales and share growth is the prospector strategy, which focuses on growth and innovation. Evaluation and reward systems for this strategy are often highly incentivized to encourage employees to actively seek out new opportunities and take risks in order to drive growth. Differentiated defenders and low-cost defenders focus on stability and efficiency, and typically have evaluation and reward systems that prioritize cost control and operational effectiveness. Reactors do not have a clear strategy, and therefore do not typically have well-defined evaluation and reward systems.

Question 8

SBU autonomy level is moderate in which business strategy?
A)differentiated defender
B)prospector
C)low-cost defender
D)reactor

Accepted Answer

In a differentiated defender strategy, the SBU (Strategic Business Unit) has a moderate level of autonomy as it focuses on maintaining a stable market position while differentiating its products or services.

Question 9

The matrix form is the most:
A)bureaucratic type of organisation
B)centralised type of organisation
C)specialised type of organisation
D)common type of organisation

Accepted Answer

The matrix form is a specialized type of organization that combines functional and product/project-based structures. It is used primarily in complex and dynamic environments where coordination and communication between different departments are essential. While it is not as common as other organizational forms such as hierarchical or flat structures, it is still widely used in sectors such as technology, consulting, and project management.

Question 10

Which of the following is the most crucial part of the annual marketing plan for ensuring proper execution?
A)action plans
B)performance review
C)objectives
D)executive summary

Accepted Answer

Action plans are the most crucial part of the annual marketing plan for ensuring proper execution. This is because action plans outline specific tasks and timelines for achieving the objectives laid out in the plan. Without clear action plans, it's difficult to ensure team members are held accountable for completing tasks and making progress towards the overall goals. The other options listed (performance review, objectives, executive summary) are all important parts of an annual marketing plan, but they are not the most crucial for ensuring proper execution.

Question 11

Identify the simplest and most bureaucratic organisational design.
A)product management
B)market management
C)matrix
D)functional

Accepted Answer

The functional organizational design is the simplest and most bureaucratic design. It is divided into functional areas such as finance, marketing, production, and HR, and each area is headed by a manager who reports to the CEO. There is a clear chain of command, and decisions are made by top-level management. This type of design can be inflexible and slow to respond to changes in the market.

Question 12

A functional structure is likely to be appropriate when:
A)Customers all tend to use a narrow range of goods or services to satisfy similar needs.
B)Customer segments use goods or services in different ways.
C)Customers are highly educated and know exactly what they are looking for.
D)Customers are geographically spread in different locations.

Accepted Answer

A functional structure is most suitable when customers tend to use a narrow range of goods or services to satisfy similar needs. This is because a functional structure groups employees based on their functional expertise, and this enables them to offer specialized services or products to customers.

Question 13

The executive summary in an annual marketing plan:
A)describes actions to be taken if specific threats or opportunities materialise during the planning period
B)specifies the goals to be accomplished in terms of sales volume,market share and profit
C)examines the past performance of the product and the elements of its marketing program such as distribution and promotion
D)presents a short overview of the issues,objectives,strategy and actions incorporated in the plan and their expected outcomes for quick management review

Accepted Answer

The executive summary in an annual marketing plan is meant to give a brief overview of the issues, objectives, strategy, and actions incorporated in the plan and their expected outcomes for quick management review. It is not meant to describe actions to be taken if specific threats or opportunities materialize during the planning period (A), specify goals in terms of sales volume, market share, and profit (B), or examine the past performance of the product and its marketing program (C).

Question 14

Identify the statement that relates to the market management organisation.
A)A product manager has overall responsibility for planning and implementing a national marketing program for the product.
B)This form is the least bureaucratic or centralised and the most specialised type of organisation.
C)This is particularly suitable for a business facing an extremely complex and uncertain environment.
D)It involves the creation of an additional organisational unit responsible for coordinating the actions of other units within the firm.

Accepted Answer

A product manager is responsible for planning and implementing marketing strategies, which is a key aspect of market management organization.

Question 15

Regardless of the form of worker self-management,all self-managing teams are based on this concept.
A)empowerment
B)joint venture
C)centralisation
D)hierarchy

Accepted Answer

Worker self-management is about giving employees the power and independence to make decisions and control their own work processes. Empowerment is the key concept behind any form of self-management, whether it is through self-managing teams, cooperatives, or other models. Joint venture, centralisation, and hierarchy are not necessarily essential components of worker self-management.

Question 16

What does centralisation refer to?
A)the location of decision authority and control within an organisation's hierarchy
B)the degree to which formal rules and standard policies and procedures govern decisions and working relationships
C)the degree to which organisations emphasise the managing of business processes in contrast to functional areas
D)the division of tasks and activities across positions within the organisational unit

Accepted Answer

Centralisation refers to the concentration of decision-making authority and control within a single or limited group within an organisation's hierarchy.

Question 17

Which global organisational type is especially appropriate when there is considerable variance across markets regarding product acceptance and marketing activities?
A)functional
B)product
C)area
D)process

Accepted Answer

Area organizations, also known as geographic or regional organizations, are particularly suitable when there are significant regional differences in product acceptance and marketing activities. This structure allows a company to tailor its approach to each region, taking into account factors such as language, culture, and customer preferences. It also enables local managers to make decisions and respond quickly to market changes without seeking head office approval, boosting efficiency and agility.

Question 18

Which of the following relates to shared programs and synergy for a low-cost defender?
A)little synergy in areas central to differentiation-shared programs elsewhere
B)relatively little synergy-few shared programs
C)no synergy-no shared programs
D)high level of synergy and shared programs

Accepted Answer

A low-cost defender focuses on reducing costs and maximizing efficiency. Therefore, having a high level of synergy and shared programs is the best choice as it would help in reducing costs and increasing efficiency.

Question 19

Which section of an annual marketing plan would contain plans to be implemented if specific threats or opportunities should occur during the planning period?
A)action plan
B)marketing strategy
C)profit-and-loss statement
D)contingency plan

Accepted Answer

A contingency plan is a section of an annual marketing plan that outlines specific actions that will be taken if threats or opportunities occur during the planning period. It is important for businesses to have a contingency plan in place to ensure they are prepared to address unexpected situations and minimize potential negative impacts on their marketing efforts. The action plan outlines the specific steps that will be taken to implement the marketing strategy, the marketing strategy outlines the overall approach to reaching target customers, and the profit-and-loss statement outlines the financial goals and projections for the marketing plan.

Question 20

What represents the functional coordination and conflict resolution for the successful implementation of a low-cost defender strategy?
A)SBU will experience moderate levels of inter-functional conflict.
B)SBU will perform best on ROI and cash flow dimensions when conflict resolution mechanisms are hierarchical.
C)SBU will experience high levels of inter-functional conflict.
D)SBU will perform best on volume and share-growth dimensions when participative resolution mechanisms are used.

Accepted Answer

Hierarchical conflict resolution mechanisms are typically more effective for low-cost defender strategies, as they emphasize efficiency and cost control, aligning with the goals of maximizing ROI and cash flow.

Quiz 12: Organizing and Planning for Effective Implementation

Which of the following typically included in a situation analysis?

Prospector business units and their marketing departments are likely to perform better when:

Product management organisations:

What is an organisational fit?

Key issues in an annual marketing plan:

The ____ form is the least bureaucratic or centralised and the most specialised type of organisation.

The evaluation and reward systems for which strategy comprises high incentives based on sales and share growth?

SBU autonomy level is moderate in which business strategy?

The matrix form is the most:

Which of the following is the most crucial part of the annual marketing plan for ensuring proper execution?

Identify the simplest and most bureaucratic organisational design.

A functional structure is likely to be appropriate when:

The executive summary in an annual marketing plan:

Identify the statement that relates to the market management organisation.

Regardless of the form of worker self-management,all self-managing teams are based on this concept.

What does centralisation refer to?

Which global organisational type is especially appropriate when there is considerable variance across markets regarding product acceptance and marketing activities?

Which of the following relates to shared programs and synergy for a low-cost defender?

Which section of an annual marketing plan would contain plans to be implemented if specific threats or opportunities should occur during the planning period?

What represents the functional coordination and conflict resolution for the successful implementation of a low-cost defender strategy?