Question 1

Global organization structures can be centralized or decentralized in terms of decision making.

Accepted Answer

Centralized global organization structures have decision making centralized at the top levels of management, while decentralized structures delegate decision-making power to different levels and regions of the organization.

Question 2

A prospector strategy is most likely to have:
A)relatively little synergy and few shared programs.
B)little synergy in areas central to differentiation and shared programs elsewhere.
C)more shared programs in areas central to differentiation.
D)high synergy and shared programs.

Accepted Answer

A prospector strategy often involves exploring new opportunities and diversifying into new markets, which typically results in relatively little synergy and few shared programs across different ventures or product lines.

Question 3

The success of a marketing plan depends on effective communication with other parts of the organizations and a variety of marketing units

Accepted Answer

The success of a marketing plan depends on effective communication with other parts of the organization, such as sales, operations, and finance, and a variety of marketing units, such as advertising, promotions, and public relations. Collaboration and coordination among these units are essential to achieve the marketing objectives and goals.

Question 4

Units operating in relatively unstable environments and pursuing more proactive marketing programs are likely to perform better when they:
A)have relatively greater autonomy.
B)have rigid team structures.
C)have clear distinction of power.
D)use centralized decision structures.

Accepted Answer

Units operating in unstable environments and pursuing more proactive marketing programs need to be adaptable and make decisions quickly. Greater autonomy allows them to react quickly and appropriately to changes in the environment. Rigid team structures, clear distinction of power, and centralized decision structures may hinder their ability to act quickly and adapt.

Question 5

Which type of SBU strategy is most likely to always include an evaluation and reward system which includes high incentives based on sales growth and market share gain?
A)Differentiated defender
B)Reactor
C)Low-cost defender
D)Prospector

Accepted Answer

Prospector SBUs are focused on growth and new opportunities, which often involves high incentives based on sales growth and market share gain. The other strategies may prioritize cost reduction or stability over growth and may not incentivize sales growth and market share gain as heavily.

Question 6

Low-cost defender SBUs perform better on ROI and cash flow by:
A)using relatively little synergy and few shared programs.
B)giving their managers relatively little autonomy.
C)focusing on democratic decision making.
D)stressing participation more than productivity improvements.

Accepted Answer

The answer of Low-cost defender SBUs perform better on ROI...

Question 7

Macroenvironmental situation section describes broad environmental occurrences or trends that may have a bearing on a product's future.

Accepted Answer

The macroenvironmental situation section does describe broad environmental occurrences or trends that may have an impact on a product's future. This section typically covers factors such as economic conditions, technological developments, demographic changes, political and legal factors, and sociocultural trends that could affect the product's market potential. It helps companies understand how to position their product in the market given the current environmental conditions.

Question 8

A company following a low-cost defender strategy is most likely to have:
A)relatively high SBU autonomy.
B)moderate SBU autonomy.
C)very few incentive programs.
D)high synergy and shared programs.

Accepted Answer

A company following a low-cost defender strategy typically focuses on efficiency and cost-minimization, which often involves high levels of integration and coordination across different parts of the organization. This leads to high synergy and shared programs to ensure consistent and cost-effective operations.

Question 9

A company following a prospector strategy is most likely to have relatively _____ synergy and _____ shared programs.
A)little;few
B)more;few
C)little;many
D)more;many

Accepted Answer

A prospector strategy involves exploring new markets and opportunities, which often means that there is little synergy between different areas of the company. Additionally, there may be few shared programs in place as the focus is on innovation and differentiation rather than standardization.

Question 10

Prospector business units are likely to perform better on the critical dimensions of new product success and increased volume and market share when organizational decision making is relatively:
A)federalized.
B)bureaucratic.
C)decentralized.
D)bottom up.

Accepted Answer

Decentralized decision making allows for greater autonomy and flexibility at the business unit level, which is important for prospectors to effectively pursue new opportunities and growth. Bureaucratic decision making can slow down the process and limit creativity and innovation, while federalized decision making can create inconsistencies and hinder coordination. Bottom-up decision making can be effective in some cases, but may not always be practical or efficient for prospectors.

Question 11

The impact of shared programs on the performance of differentiated defenders is more difficult to predict because they must often:
A)act with relatively low synergy and provide high incentives to the employees.
B)modify their products and marketing programs based on changing market conditions.
C)respond to market situations in a way that is dictated by a central decision making system.

Accepted Answer

Differentiated defenders often have unique products and marketing programs that require them to adapt to changing market conditions. Shared programs may or may not be able to meet their specific needs, so the impact on their performance is uncertain. Option A is incorrect because low synergy and high incentives are not necessarily characteristic of differentiated defenders. Option C is incorrect because differentiated defenders typically have some autonomy in decision making, rather than being completely dictated by a central system.

Question 12

The action plan in an annual marketing plan summarizes relevant background information on the market,competition and the macroenvironment,and trends therein,including size and growth rates for the overall market and key segments.

Accepted Answer

The action plan in an annual marketing plan typically outlines the specific steps, initiatives, and tactics the company will use to achieve its marketing objectives, rather than summarizing background information on the market, competition, and macroenvironment.

Question 13

Contingency plans describe actions to be taken if specific threats or opportunities materialize during the planning period.

Accepted Answer

Contingency plans are designed to address specific threats or opportunities that may arise during the planning period. They outline actions that can be taken to mitigate risks or capitalize on opportunities if they materialize.

Question 14

Financial objectives provide goals for the overall performance of the brand and should reflect the objectives for the SBU as a whole and its competitive strategy.

Accepted Answer

Financial objectives should align with the overall goals of the brand and its competitive strategy. They provide targets for the performance of the business unit as a whole.

Question 15

Marketing strategy summarizes the overall strategic approach that will be used to meet the plan's objectives.

Accepted Answer

This statement is true. The marketing strategy is a critical component of the overall marketing plan, outlining the approach and tactics that will be used to achieve the desired objectives. It takes into account factors such as target audience, competition, product positioning, pricing, promotion, and distribution channels. The marketing strategy should be aligned with the overall business strategy and provide a roadmap for achieving the desired results.

Question 16

The action plan is a document that lays down long-term strategies and objectives for a product.

Accepted Answer

An action plan typically outlines short-term tasks, responsibilities, and deadlines necessary to achieve a specific goal, rather than long-term strategies and objectives.

Question 17

A company following a differentiated defender strategy is most likely to have:
A)moderate SBU autonomy.
B)very few incentive programs.
C)high SBU autonomy.
D)high synergy in areas central to differentiation.

Accepted Answer

The answer of A company following a differentiated defender strategy...

Question 18

The key issues section of annual marketing plan specifies the goals to be accomplished in terms of sales volume,market share,and profit.

Accepted Answer

The key issues section of an annual marketing plan typically outlines the main challenges and obstacles the business faces in achieving its marketing objectives, rather than specifying the goals themselves. Goals in terms of sales volume, market share, and profit are usually detailed in the objectives section of the plan.

Question 19

The matrix form of organization suits prospector businesses and the management of new product development projects within analyzer or differentiated defender businesses.

Accepted Answer

The matrix form of organization is known for its ability to handle complex, dynamic environments with multiple cross-functional teams. This structure is well-suited for prospector businesses, which require high levels of creativity, innovation, and agility. Additionally, the matrix structure can also be effective for managing new product development projects within analyzer or differentiated defender businesses, which may require specialized knowledge and resources from different functional areas. Therefore, the statement is true.

Question 20

People with expertise in purchasing,manufacturing,order delivery,and billing are most important to new product development.

Accepted Answer

While people with expertise in purchasing, manufacturing, order delivery, and billing are important, new product development primarily relies on individuals with expertise in research and development, design, innovation, and market analysis to ensure the product meets market needs and is feasible to produce.

Quiz 17: Organizing and Planning for Effective Implementation

Global organization structures can be centralized or decentralized in terms of decision making.

A prospector strategy is most likely to have:

The success of a marketing plan depends on effective communication with other parts of the organizations and a variety of marketing units

Units operating in relatively unstable environments and pursuing more proactive marketing programs are likely to perform better when they:

Which type of SBU strategy is most likely to always include an evaluation and reward system which includes high incentives based on sales growth and market share gain?

Low-cost defender SBUs perform better on ROI and cash flow by:

Macroenvironmental situation section describes broad environmental occurrences or trends that may have a bearing on a product's future.

A company following a low-cost defender strategy is most likely to have:

A company following a prospector strategy is most likely to have relatively _ synergy and _ shared programs.

Prospector business units are likely to perform better on the critical dimensions of new product success and increased volume and market share when organizational decision making is relatively:

The impact of shared programs on the performance of differentiated defenders is more difficult to predict because they must often: