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related to the district offering students the ability to compete in a number of different sports would be
categorized as a(n):
a. strength
b. weakness
c. threat
d. opportunity
108. With respect to the BCG matrix, which one of the following generates considerable income, but requires
sizeable investments to underwrite further growth in the future?
a. Cash cows
b. Stars
c. Question marks
d. SBUs
e. Dogs
109. A certain social networking corporation has the highest number of users in the social networking industry.
This is an example of the firm’s:
a. opportunity.
b. constraint.
c. strength.
d. threat.
110. ADA Inc. stopped its production of oral care goods after determining apparel production to be its new
primary objective. This is a direct result of the _____ planning process at ADA Inc.
a. tactical
b. research
c. strategic
d. economic
111. The basic objectives or goals of an organization are derived from its:
a. standard operating procedures.
b. operational plans.
c. supervisory management strategy.
d. strategic planning process.
112. Which of the following is NOT one of Porter’s five Forces related to market competition?
a. threat of substitutes
b. buyer power
c. distinctive competencies
d. competitive rivalry
113. Caleb is the superintendent of a small school district in a rural area of Iowa with a population of 2,500
people. The school district participates in a wide variety of sports for girls and boys including softball, baseball,
basketball, volleyball, track, wrestling, and cross country. Students may also be a member of over 12 clubs and
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organizations sponsored by the school. The school typically rates highly on state-wide tests and approximately
80% of high school graduates attend college. However, Caleb has difficulty in recruiting faculty to teach foreign
language, physics, calculus, and computer science classes. It’s difficult to recruit these teachers because they are
in high demand and are often attracted to larger school districts that can provide higher salaries. Caleb knows
the importance of STEM (science, technology, engineering, and math) to the United States and is concerned
that the district may fall behind in its ability to prepare students for their future. In addition, Caleb hopes to
increase the number of graduates who attend college since college degrees enable students to pursue careers
with higher salaries and benefits. Assume that you are helping Caleb conduct a SWOT analysis. The statement
regarding Caleb’s difficulty in hiring teachers for foreign language, physics, calculus, and computer science
would be categorized as a(n):
a. weakness
b. opportunity
c. threat
d. strength
114. Compared to other organization personnel, more time is devoted to long-range strategic planning by the:
a. middle management.
b. manufacturing labor.
c. top management.
d. supervisory management.
115. Caleb is the superintendent of a small school district in a rural area of Iowa with a population of 2,500
people. The school district participates in a wide variety of sports for girls and boys including softball, baseball,
basketball, volleyball, track, wrestling, and cross country. Students may also be a member of over 12 clubs and
organizations sponsored by the school. The school typically rates highly on state-wide tests and approximately
80% of high school graduates attend college. However, Caleb has difficulty in recruiting faculty to teach foreign
language, physics, calculus, and computer science classes. It’s difficult to recruit these teachers because they are
in high demand and are often attracted to larger school districts that can provide higher salaries. Caleb knows
the importance of STEM (science, technology, engineering, and math) to the United States and is concerned
that the district may fall behind in its ability to prepare students for their future. In addition, Caleb hopes to
increase the number of graduates who attend college since college degrees enable students to pursue careers
with higher salaries and benefits. Assume that you are helping Caleb conduct a SWOT analysis. The statement
related to students earning higher salaries and having better career opportunities if they achieve a college degree
would be categorized as a(n):
a. opportunity
b. weakness
c. threat
d. strength
116. Caleb is the superintendent of a small school district in a rural area of Iowa with a population of 2,500
people. The school district participates in a wide variety of sports for girls and boys including softball, baseball,
basketball, volleyball, track, wrestling, and cross country. Students may also be a member of over 12 clubs and
organizations sponsored by the school. The school typically rates highly on state-wide tests and approximately
80% of high school graduates attend college. However, Caleb has difficulty in recruiting faculty to teach foreign
language, physics, calculus, and computer science classes. It’s difficult to recruit these teachers because they are
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in high demand and are often attracted to larger school districts that can provide higher salaries. Caleb knows
the importance of STEM (science, technology, engineering, and math) to the United States and is concerned
that the district may fall behind in its ability to prepare students for their future. In addition, Caleb hopes to
increase the number of graduates who attend college since college degrees enable students to pursue careers
with higher salaries and benefits. Assume that you are helping Caleb conduct a SWOT analysis. The statement
related to the district offering students the ability to participate in a number of different student organizations
would be categorized as a(n):
a. strength
b. weakness
c. threat
d. opportunity
117. Which of the following conditions would lead a company’s marketers to find a new market, change prices,
or compete in other ways to maintain an advantage?
a. When the bargaining power of suppliers is low
b. When the bargaining power of buyers is low
c. When the threat of substitute products is high
d. When the threat of new entrants is low
118. Craft and micro-breweries have sparked consumer interest in a wide variety of flavor profiles and interest
in supporting small, locally owned businesses. In addition, these companies have created pressure on
established brands such as Budweiser and Miller that have increased promotional activities and reduced prices
as a strategy to retain customers. Craft breweries are an example of _________, one of Michael Porter’s five
competitive forces.
a. threat of new competitors
b. supplier power
c. buyer power
d. retailer power
119. The process of anticipating future events and conditions and determining the best way to achieve
organizational objectives is known as:
a. retrospecting.
b. planning.
c. archiving.
d. correlating.
120. Danica is a sales manager with Kind, manufacturers of natural snacks such as protein bars, healthy grain
bars, and breakfast bars. Danica typically schedules quarterly meetings with her 8 sales representatives where
they collaborate to develop their weekly and daily account plans. These meetings reflect Danica’s efforts to
engage in _____ planning.
a. operational
b. tactical
c. strategic
d. calendar
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121. Which of the following would qualify as an example of a firm’s weakness?
a. Changing buyer tastes in the marketplace
b. The presence of modern production facilities
c. Inadequate financing capabilities
d. An addition to the current product line
122. Employees of Popsie Inc., a small grocery store chain, are working on its tactical plans. The personnel most
involved in this level of its planning process would be its:
a. top management, such as the owner.
b. middle management, such as the merchandising and advertising managers.
c. store managers.
d. supervisory management, such as shift managers and night auditors.
123. Companies such as Ford Motor Company often grow their business by seeking new markets. Which of the
following would most likely be responsible for making the decision regarding Ford Motor Company
establishing a manufacturing facility in India?
a. Chief Operating Officer
b. Human Resources Director
c. Regional Marketing Director for Asia-Pacific
d. Sales Manager for India
124. The quadrant of the BCG market share/market growth matrix that represents both a high market share and a
high rate of market growth represents the:
a. cash cows.
b. innovators.
c. stars.
d. strivers.
125. Every company, whether for-profit or not-for-profit, must plan. Otherwise, the company will find itself
reacting to future events rather than proactively positioning itself to take advantage of future events.
Which of the following statements is false in regards to strategic planning?
a. It includes the process of determining the organization’s primary objectives.
b. It is done after the company completes its tactical planning activities.
c. It involves choosing actions that will facilitate the achievement of its primary objectives.
d. It provides longer term guidance for the marketers and other decision makers in the firm.
e. It establishes the company objectives that are used to develop the tactical plan.
126. Comcast’s NBC division acquired Universal Studios and the highest executive who approved this
acquisition was most likely Comcast’s CEO. This decision is the direct result of _____ planning process at
Comcast.
a. tactical
b. strategic
c. operational
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d. technological
127. An event management company decided to use radio advertising in order to promote an upcoming music
festival. The executives of the company suggested various activities that could be used for the radio campaign.
These activities are a part of the company’s _____.
a. tactical planning efforts
b. standard operating procedures
c. weekly scheduling plans
d. unit-wise budgeting plans
128. As chief executive of Stalwart Shipfitting Company, a diversified producer of marine supplies and
equipment, John needs a method for spotting promising product lines that warrant commitment of additional
resources, as well as those that should be removed from the firm’s product portfolio. A good choice for this firm
at this stage would be to use:
a. computer models.
b. strategic business units.
c. a marketing audit.
d. an industry analysis.
129. Jamal is the marketing director of a third party logistics firm operating in the United States. Jamal and his
team recently engaged in ________ to determine the company’s primary objectives over the next three years and
identified specific actions that the company would initiate to achieve the objectives.
a. strategic planning
b. tactical planning
c. operations planning
d. near-term planning
130. The U.S. Sports and Fitness Federation is determining where they should build their permanent training
facility. They want it to be located near a populated center but it must also provide ample access to those who
don’t reside in cities. The federation is engaged in _____ planning.
a. strategic
b. short-term
c. operational
d. economic
131. Matching an internal strength with an external opportunity produces a situation known as:
a. leverage.
b. constraint.
c. vulnerability.
d. plateau.
132. Caleb is the superintendent of a small school district in a rural area of Iowa with a population of 2,500
people. The school district participates in a wide variety of sports for girls and boys including softball, baseball,
basketball, volleyball, track, wrestling, and cross country. Students may also be a member of over 12 clubs and
Name:
Class:
Date:
chapter 2
organizations sponsored by the school. The school typically rates highly on state-wide tests and approximately
80% of high school graduates attend college. However, Caleb has difficulty in recruiting faculty to teach foreign
language, physics, calculus, and computer science classes. It’s difficult to recruit these teachers because they are
in high demand and are often attracted to larger school districts that can provide higher salaries. Caleb knows
the importance of STEM (science, technology, engineering, and math) to the United States and is concerned
that the district may fall behind in its ability to prepare students for their future. In addition, Caleb hopes to
increase the number of graduates who attend college since college degrees enable students to pursue careers
with higher salaries and benefits. Assume that you are helping Caleb conduct a SWOT analysis. The district’s
inability to compete with larger school systems that can pay higher starting salaries to teachers certified in
foreign language, calculus, physics, and computer science would be categorized as a(n):
a. weakness
b. opportunity
c. threat
d. strength
133. Microsoft Windows generates considerable income for its parent company but is expensive to support.
However, the expense is acceptable because Windows is the world’s dominant operating system. Based on this
information, Windows would be categorized under the BCG market share/market growth matrix as a:
a. star.
b. cash cow.
c. question mark.
d. dog.
134. The performance framework developed by the Boston Consulting Group (BCG) plots:
a. market share against market growth potential.
b. market attractiveness against number of product lines.
c. current market conditions against past trends.
d. performance in test markets before a full-scale rollout.
135. Many consumers only have a mobile phone and no longer maintain a landline phone at home. Due to the
increased adoption of mobile phones, companies such as Samsung offer a wide variety of phones from basic
models to advanced, smartphones. The Samsung Convoy is a basic phone that allows consumers to send and
receive calls and text messages as well as a 5 megapixel camera. Samsung’s Galaxy smartphone model is one of
the most popular phones with high relative market share while the Convoy has low market share. According to
the Boston Consulting Group, the Convoy would be classified as a(n) _____ and the Galaxy as a(n) _______.
a. question mark, star
b. dog, question mark
c. question mark, cash cow
d. cash cow, star
136. Operational planning:
a. should be used to establish the fundamental strategies of the organization.
b. is used to determine departmental rules and procedures.
c. is the primary responsibility of the top management.
d. should be completed at the same time the total budget is prepared.
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137. In the planning hierarchy, plans dealing with organization-wide objectives, long-term plans, and the total
budget would be classified as _____ plans.
a. weekly
b. tactical
c. operational
d. strategic
138. There are many roles played in the planning process for a typical company. Depending on the
organizational level, the planning focus and the effort devoted will be different. Which of the following
statements is true about planning within an organization?
a. In their role in the planning process, top management focuses on short-term operational objectives for
the company.
b. Only top management spends time focused on strategic and operational planning activities for the
organization.
c. Middle management employees spend more of their time focusing on planning than other levels of the
organization.
d. Supervisors are tasked with developing specific programs and tactics for achieving the goals of their
responsibility areas.
e. Middle managers are primarily focused on strategic planning considerations.
Indicate one or more answer choices that best complete the statement or answer the question.
139. Within your diversified processed-food firm, there are SBUs for fruits, vegetables, dairy products, and baked goods.
Each SBU has its own: (Select all that apply)
a. Managers
b. Resources
c. Objectives
d. Competitors
e. Portfolios
140. As the marketing director for a public health advocacy group, you recently obtained approval from the board to
pursue a new set of strategic objectives. Among them: to achieve 80% community awareness of the group’s name and
purpose. Now you must turn to tactical planning. Which of the following tasks should you undertake? (Select all that
apply)
a. Develop a five-year funding allocation plan.
b. Reserve advertising space in local newspapers for the next six months.
c. Recruit an assistant to write press releases.
d. Improve the visibility of your headquarters building.
141. Describe the aspects of strategic and tactical planning.
142. Describe the market share/market growth matrix.
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143. Describe the strategic business unit concept.
144. How does planning differ at various levels of organizational management?
145. Explain the forces that influence the rivalry among competitors in Porter’s Five Forces Model.
146. What is the marketing planning process?
147. Discuss how a firm’s stated objectives relate to planning activities.
148. Define and explain the term “planning” in the context of marketing.
149. Define marketing planning.
150. Define SWOT analysis and explain its importance.
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Answer Key
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