71. Of the following, which one is FALSE
regarding a functional
organizational structure?
► The tasks, people, and technologies necessary to do the work of
the business
are grouped together
► Functional structures predominate in firms with single or narrow
product
lines
► Marketing, operations, and finance would be considered groups
found within
this type of
structure
► Functional structure is designed to achieve
flexibility and better
communication
Ref: Functional
structure is sometimes characterized by low employee morale,
line/staff conflicts, poor delegation of authority, and inadequate
planning for
products and markets. (Page no.118)
Functional Structure
The organization is structured according to functional areas
instead of product
lines. This structure is best used when creating specific, uniform
products. They
are economically efficient, but lack flexibility. Communication between
functional areas can be difficult.
72. Which of these is not one of the tests
used to determine whether a
performance-pay plan will benefit an
organization?
► Do employees understand the plan?
► Is the plan improving communications?
► Does the plan pay out when it should?
► Does the plan reduce management layers?
73. All of the following are the managerial
issues for managing natural
environment EXCEPT:
► Global warming- depletion of rain forests
► Employee understanding about environment
► Developing biodegradable products and packages
► Waste management to clean air and water
Special natural environmental issues include ozone depletion, global warming,
depletion of rain forests, destruction of animal habitats, protecting endangered
species, developing biodegradable
products and packages, waste management,
clean air, clean water, erosion, destruction of natural resources, and pollution
control.
74. The methods which are used to match
managers with strategies to be
implemented include all of the following
EXCEPT:
► Transferring managers
► Job enlargement
► Managers’ retention
► Job
enrichment
75. Which one of the following is an example
of product decisions?
► Brand name
► Volume
discounts
► Distribution channels
► Order processing
Ref: Product Decisions
The term "product" refers to tangible, physical products
as well as services. Here
are some examples of the product decisions to be made:
• Brand name
• Functionality
• Styling
• Quality
• Safety
• Packaging
76. Which variable would be considered as a
part of pricing decisions?
► Warranty
► Bundling
► Safety
► Functionality
Price Decisions
Some examples of pricing decisions to be made include:
• Pricing strategy (skim, penetration, etc.)
• Suggested retail price
• Volume discounts and wholesale pricing
• Cash and early payment discounts
• Seasonal pricing
• Bundling
• Price flexibility
• Price discrimination
77. Which one of the following is an example
of place decisions?
► Safety and packaging
► Personal selling
► Public relations & publicity
► Order processing
Distribution (Place) Decisions
Distribution is about getting the products to the customer. Some
examples of
distribution decisions include:
• Distribution channels
• Market coverage (inclusive, selective, or exclusive distribution)
• Specific channel members
• Inventory management
• Warehousing
• Distribution centers
• Order processing
• Transportation
• Reverse logistics
78. All of the following are the examples of
promotion decision EXCEPT:
► Personal selling
► Volume discounts
► Public relations
► Advertising
Promotion Decisions
In the context of the marketing mix, promotion represents the
various aspects of
marketing communication, that is, the communication of information
about the
product with the goal of generating a positive customer response. Marketing
communication decisions include:
• Promotional strategy (push, pull, etc.)
• Advertising
• Personal selling & sales force
• Sales promotions
• Public relations & publicity
• Marketing communications budget
79. Which of the following is NOT a decision
that may require
finance/accounting policies?
► To extend the time of accounts receivable
► To determine an appropriate dividend payout ratio
► To use LIFO, FIFO or a market-value accounting approach
► To determine the amount of product
diversification
Some examples of decisions that may require
finance/accounting policies are:
1. To raise the amount of capital by issuing shares or obtaining a
debt from
external parties.
2. To enhance the inventory turn over level
3. To make or buy fixed assets.
4. To extend the time of accounts receivable.
5. To establish a certain percentage discount on accounts within a
specified
period of time.
6. To determine the amount of cash that should be kept on hand
7. To determine an appropriate dividend payout
ratio.
8. To use LIFO, FIFO
80. At least how many R & D approaches are
used for the implementation of
strategy?
► Two
► Three
► Four
► Five
Ref: There are
at least three major R&D approaches for implementing strategies.
1. First firm to market new technological products
2. Be an innovative imitator of successful products
3. Low-cost producer of similar but less expensive products
81. While evaluating a strategy, corrective
actions are almost always
needed except:
► When external and internal factors have not
significantly changed
► When the firm is not progressing satisfactorily toward
objectives
► When the firm has not achieved the stated organizational goals
► When there are differences between desired results and achieved
results
Notice that corrective actions are almost always needed except when (1) external
and internal factors have not significantly
changed and (2) The firm is
progressing satisfactorily toward achieving stated objectives.
82. Which one of the following statements best
describes the activity
‘marketing and sales’ of Porter’s supply chain
model?
► Machining, packaging, assembly, equipment maintenance &
testing
► Activities linked with getting buyers to
purchase the product
► Activities that maintain and enhance the product's value
► receiving, storing, inventory control & transportation
planning
The activities of the Value Chain
• Primary activities (line functions)
Inbound Logistics Includes receiving, storing, inventory control, transportation
planning.
Operations Includes
machining, packaging, assembly, equipment maintenance,
testing and all other value-creating activities that transform the
inputs into the
final product
Outbound Logistics The activities required to get the finished product at the
customers: warehousing, order fulfillment, transportation,
distribution
management.
Marketing and Sales The activities associated
with getting buyers to purchase
the product,
including: channel selection, advertising, promotion, selling,
pricing, retail management, etc.
Service The
activities that maintain and enhance the product's value, including:
customer support, repair services, installation, training, spare
parts management,
upgrading, etc.
83. Outbound logistics includes which one of
the following?
► Receiving, storing, inventory control, transportation planning
► Machining, packaging, assembly, equipment maintenance, testing
► Activities required to get the finished
product at the customers
► Activities that maintain and enhance the product's value
Ref: Outbound Logistics. The activities required to get the finished product at
the customers: warehousing, order fulfillment, transportation,
distribution
management.
84. Which of the following is NOT a key
financial ratio?
► Earnings per share
► Production growth
► Asset growth
► Profit margin
Some key financial ratios that are particularly
useful as criteria for strategy
evaluation are as follows:
1. Return on investment
2. Return on equity
3. Profit margin
4. Market share
5. Debt to equity
6. Earnings per share
7. Sales growth
8. Asset growth
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