MGT 103 EXAMS SCRIPT ANSWERS AND QUESTIONS
SET A+
✔✔Types of organizations - ✔✔For-Profit - often called a business firm (Nike,
Facebook, Toyota, Samsung)
Non-Profit - non-governmental organization that does not have profit as its main goal
(Boys and Girls Club, American Heart Association, Khan Academy)
Government Agency - federal, state, county or city organization that provides a specific
service to its constituents (e.g., Census Bureau)
✔✔Organizational Structure - ✔✔Board of Directors • Corporate Level - directs overall
strategy for the entire organization (senior mgt)
Strategic Business Unit (SBU) - a subsidiary of an organization that targets a specific
market (e.g., Proctor & Gamble (P&G) has SBUs for various product categories, such
as Beauty (e.g., Olay), Health (e.g., Vicks), and Home Care (e.g., Tide and Febreze).
Each focuses on a distinct market segment.) • Functional Level - a more specific group
of specialists that serve certain functions (e.g. finance department, marketing
department)
✔✔Strategy - ✔✔an organization's long-term plan for creating sustainable value by
delivering a distinctive customer experience while achieving its goals in a changing
environment. Although strategy is long-term, it should guide everyday decisions.
✔✔Core Values - ✔✔fundamental, passionate and enduring principles that guide the
conduct of an organization (e.g., trust) - Must be communicated and supported by top
management as well as all employees
✔✔Organizational culture - ✔✔set of values, ideas, attitudes and norms of behavior that
is learned and shared among members of the organization (e.g., no time clock)
✔✔Mission statement - ✔✔A formal declaration that describes the firm's overall purpose
and what it hopes to achieve in terms of its customers, products, and resources. It
should be clear, concise, meaningful and inspirational. Ex: Nike - to bring inspiration
and innovation to every athlete* in the world (*if you have a body, you are an athlete)
, ✔✔Marketing Plan - ✔✔Road map for the marketing actions of an organization for a
specified future time period (e.g., 1 year, 3 years depending on market) • Can be written
for internal or external audience
✔✔Business Portfolio Analysis - ✔✔Stars (high share of high growth)
Cash cows (generate lots of cash, high share of low growth)
Question marks (low share of high growth) Dogs (low share of slow growth)
✔✔Marketing Penetration Strategy - ✔✔Seeks to increase sales of existing product to
existing markets
✔✔Product Development Strategy - ✔✔Create growth by selling new products in
existing markets
✔✔Market Development Strategy - ✔✔Introduce existing products to new markets
✔✔Diversification Strategy - ✔✔Emphasize both new products and new markets to
achieve growth
✔✔Strategic Marketing Process: Step 1 - ✔✔SWOT: Strength (Internal), Weaknesses
(Internal), Opportunities (External), Threats (External) The company should build on
their strengths - leverage them, make the most of them They should correct their
weakness (e.g., hire, train, focus, etc.) They should capitalize on opportunities They
should beware of threats and take action to avoid disasters
✔✔Environmental Scanning - ✔✔Process of continually acquiring information on events
occurring outside the organization. This is done to identify and interpret potential trends
that might impact the business
✔✔Sociocultural Environment - ✔✔Changes in Cultural Values, Ideas, Attitudes - E.g.,
Health and Fitness - Goods vs. Experiences - Gender roles - Racial and ethnic diversity
• Increasing expectation of authenticity and transparency • Importance of education •
Growing reliance on peers as brand advocates • Language - Impact of language on
brand names
✔✔Socio-Cultural Forces - ✔✔Changes in cultural values alter people's needs and
desires for products
✔ Health, nutrition and exercise growing in importance (discuss egocentrism)
✔ Definitions of family are changing
▪ Changes in a population's demographic characteristics lead to changes in how people
live and consume products
▪ A more diverse customer base means marketing practices must be modified and
diversified to meet changing needs
SET A+
✔✔Types of organizations - ✔✔For-Profit - often called a business firm (Nike,
Facebook, Toyota, Samsung)
Non-Profit - non-governmental organization that does not have profit as its main goal
(Boys and Girls Club, American Heart Association, Khan Academy)
Government Agency - federal, state, county or city organization that provides a specific
service to its constituents (e.g., Census Bureau)
✔✔Organizational Structure - ✔✔Board of Directors • Corporate Level - directs overall
strategy for the entire organization (senior mgt)
Strategic Business Unit (SBU) - a subsidiary of an organization that targets a specific
market (e.g., Proctor & Gamble (P&G) has SBUs for various product categories, such
as Beauty (e.g., Olay), Health (e.g., Vicks), and Home Care (e.g., Tide and Febreze).
Each focuses on a distinct market segment.) • Functional Level - a more specific group
of specialists that serve certain functions (e.g. finance department, marketing
department)
✔✔Strategy - ✔✔an organization's long-term plan for creating sustainable value by
delivering a distinctive customer experience while achieving its goals in a changing
environment. Although strategy is long-term, it should guide everyday decisions.
✔✔Core Values - ✔✔fundamental, passionate and enduring principles that guide the
conduct of an organization (e.g., trust) - Must be communicated and supported by top
management as well as all employees
✔✔Organizational culture - ✔✔set of values, ideas, attitudes and norms of behavior that
is learned and shared among members of the organization (e.g., no time clock)
✔✔Mission statement - ✔✔A formal declaration that describes the firm's overall purpose
and what it hopes to achieve in terms of its customers, products, and resources. It
should be clear, concise, meaningful and inspirational. Ex: Nike - to bring inspiration
and innovation to every athlete* in the world (*if you have a body, you are an athlete)
, ✔✔Marketing Plan - ✔✔Road map for the marketing actions of an organization for a
specified future time period (e.g., 1 year, 3 years depending on market) • Can be written
for internal or external audience
✔✔Business Portfolio Analysis - ✔✔Stars (high share of high growth)
Cash cows (generate lots of cash, high share of low growth)
Question marks (low share of high growth) Dogs (low share of slow growth)
✔✔Marketing Penetration Strategy - ✔✔Seeks to increase sales of existing product to
existing markets
✔✔Product Development Strategy - ✔✔Create growth by selling new products in
existing markets
✔✔Market Development Strategy - ✔✔Introduce existing products to new markets
✔✔Diversification Strategy - ✔✔Emphasize both new products and new markets to
achieve growth
✔✔Strategic Marketing Process: Step 1 - ✔✔SWOT: Strength (Internal), Weaknesses
(Internal), Opportunities (External), Threats (External) The company should build on
their strengths - leverage them, make the most of them They should correct their
weakness (e.g., hire, train, focus, etc.) They should capitalize on opportunities They
should beware of threats and take action to avoid disasters
✔✔Environmental Scanning - ✔✔Process of continually acquiring information on events
occurring outside the organization. This is done to identify and interpret potential trends
that might impact the business
✔✔Sociocultural Environment - ✔✔Changes in Cultural Values, Ideas, Attitudes - E.g.,
Health and Fitness - Goods vs. Experiences - Gender roles - Racial and ethnic diversity
• Increasing expectation of authenticity and transparency • Importance of education •
Growing reliance on peers as brand advocates • Language - Impact of language on
brand names
✔✔Socio-Cultural Forces - ✔✔Changes in cultural values alter people's needs and
desires for products
✔ Health, nutrition and exercise growing in importance (discuss egocentrism)
✔ Definitions of family are changing
▪ Changes in a population's demographic characteristics lead to changes in how people
live and consume products
▪ A more diverse customer base means marketing practices must be modified and
diversified to meet changing needs
