Chapter 2

Question 1

business planning

Answer 1

an ongoing process of making decisions that guides the firm both in the short term and for the long term

Question 2

business plan

Answer 2

a plan that includes the decisions that guide the entire organization

Question 3

business ethics

Answer 3

rules of conduct for an organization

Question 4

code of ethics

Answer 4

written standards of behavior to which everyone in the organization must subscribe

Question 5

strategic planning

Answer 5

a managerial decision process that matches an organization’s resources and capabilities to its market opportunities for long term growth and survival

Question 6

strategic business units (sbu’s)

Answer 6

individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors

Question 7

functional planning

Answer 7

a decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organization’s long term strategic pln

Question 8

operational planning

Answer 8

a decision process that focuses on developing detailed plans for day to day activities that carry out an organization’s functional plans

Question 9

mission statement

Answer 9

a formal statement in an organization’s strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources

Question 10

situation analysis

Answer 10

an assessment of a firm’s internal and external environments

Question 11

internal environment

Answer 11

the controllable elements inside an organization, including its people its facilities, and how it does things that influence the operations of the organization

Question 12

external environment

Answer 12

the uncontrollable elements outside an organization that may affect its performance either positively or negatively

Question 13

SWOT analysis

Answer 13

an analysis of an organization’s strengths and weaknesses and the opportunities and threats in its external environment

Question 14

business portfolio

Answer 14

the group of different products or brands owned by an organization and characterized by different income generating and growth capabilities

Question 15

portfolio analysis

Answer 15

a management tool for evaluating a firm’s business mix and assessing the potential of an organization’s strategic business units

Question 16

BCG growth market share matrix

Answer 16

a portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products

Question 17

stars

Answer 17

SBUs with products that have a dominant market share in high growth markets

Question 18

cash cows

Answer 18

SBUs with a dominant market share in a low growth potential market

Question 19

question marks

Answer 19

SBUs with low market shares in fast growth markets

Question 20

dogs

Answer 20

SBUs with a small share of a slow growth market. they are businesses that offer specialized products in limited markets that are not likely to grow quickly

Question 21

market penetration strategies

Answer 21

growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets

Question 22

market development strategies

Answer 22

growth strategies that introduce existing products to new markets

Question 23

product development strategies

Answer 23

growth strategies that focus on selling new products in existing markets

Question 24

diversification strategies

Answer 24

growth strategies that emphasize both new products and new markets

Question 25

control

Answer 25

process that entails measuring actual performance, comparing this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis

Question 26

return on marketing investment (ROMI)

Answer 26

quantifying just how an investment in marketing has an impact on the firm's success, financially and otherwise

Question 27

action plans

Answer 27

individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan. sometimes referred to as marketing programs

Question 28

operational plans

Answer 28

plans that focus on the day to day execution of the marketing plan. include detailed directions for the specific activities to be carried out, who will be responsible for them, and time lines for accomplishing the tasks