week six - str581 - sample final exam

STR 581 Strategic Planning and Implementation: Sample Final Exam

STR/581 Sample Final Exam

MarketingStrategic marketing

Metrics and control mechanisms-CLV (Customer Lifetime Value)Environmental scanning and marketing planningInnovation

Buyer behaviorConsumer and business purchasing processesFactors influencing consumer and business purchasingSegmentation

Market researchCompetitive intelligenceProblem formulationManagerial decision making

Target segments and marketing mixSpecifying target marketsPricingProducts/services (new product development, brand management, positioning)Promotion (integrated marketing communication)Channels and distribution/supply chain

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This Sample Final Exam is provided as a resource to help familiarize students with the content areas and types of questions that they may encounter when they complete the comprehensive STR/581 Final Exam in Week Six.

Marketing Section


1. ____________ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs a. Performance b. Valuec. Qualityd. Customer retentione. Customer loyalty

2. Marketers need to be aware of threats and opportunities associated with four trends in the natural environment. All of the following are among those trends EXCEPT ________.a. The shortage of raw materialsb. The increased cost of energyc. Near 90 percent corporate support for “green causes”d. Increased pollution levelse. The changing role of governments

3. A(n) ________ is any good, service, or idea that is perceived by someone as new. The idea may have a long history, but it is new to the person who sees it as such.a. Productb. Innovationc. New idea d. Creative producte. None of these

4. In market-penetration pricing, the company’s objective in pricing is to ________, believing that higher sales volume will lead to lower unit costs and higher long-run profits.a. Block competitive launchesb. Maximize their market sharec. Minimize their market shared. Maximize volumee. None of the above

5. Most companies will ________ their list price and give discounts and allowances for early payments, volume purchases, and off-season buying. a. List two pricesb. Increasec. Reduced. Adjuste. None of these

6. If a marketer decides that segmenting a market based on neighborhoods, the marketer will have chosen the ________ method of segmentation.a. Demographic b. Psychographicc. Geographicd. Culturale. Social class

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7. ________ is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. a. Marketing intelligenceb. MIS (marketing information system)c. Marketing researchd. Demographicse. Marketing management

8. Companies undertake surveys to learn about people’s knowledge, ________, preferences, and satisfaction, and to measure these magnitudes in the general population.a. Beliefsb. Psychec. Inner idd. Deepest secretse. Intelligence and literacy

9. Designing a research plan calls for decisions on all of the following EXCEPT ________. a. Drafting research objectivesb. Data sourcesc. Research approachesd. Research instrumentse. Sampling plans

10. Procter & Gamble has many soap brands. One reason for this is that soap users tend to group together in terms of preferences such as bleaching action, softness, stain-removal, et cetera. Which of the following preferences pattern would most likely apply to P&G’s method of response to market needs? a. Homogeneous preferencesb. Diffused preferencesc. Clustered preferencesd. Psychological preferencese. Cultural preferences

11. Companies price their products in a number of ways. Small companies prices are set by the boss, in larger companies, pricing is handled by division and product-line managers. In industries where price is a key factor, companies often establish a ________ department reporting to other internal departments.a. Financial b. Pricingc. Salesd. Marketinge. Distribution

12. Most new-product activity is devoted to ________ existing products.a. Improvingb. Coordinatingc. Distributingd. Pricinge. Marketing

13. Modern marketing calls for more than developing a good product, pricing it attractively, and making it accessible. Companies must also ________ with present and potential stakeholders, and the general public.a. Attractb. Reachc. Relate tod. Advertise toe. Communicate

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14. Intermediaries include retailers, ________, and logistical organizations.a. Internet companiesb. Wholesalersc. Competitorsd. Box storese. None of these

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ManagementOrganizational behavior

LeadershipTeamsConflictNegotiationMotivation

Human resource managementRecruiting and selectionCompensationEmployment planningTraining and development

Organizational theory

Organizational change and developmentOrganizational structure designSystems thinkingEntrepreneurship/small business management

Operations planning/management scienceQuantitative decision making modelsQuality/process managementSupply chain logisticsPlanningControlService management

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Management Section


1. Which of the following roles focuses on bringing about order and consistency by drawing up formal plans?a. Leadershipb. Managementc. Task structured. Initiating structuree. None of these

2. Which is NOT one of the most common types of teams? a. Problem-solvingb. Interdepartmentalc. Self-managedd. Virtuale. Cross-functional

3. What is one of the views of conflict? a. The traditional view b. The human interactions viewc. The relationist viewd. The functional viewe. The persuasive view

4. The terms negotiation and _____ are used interchangeably. a. Win-loseb. Bargainingc. Collaborationd. Accommodating

5. In Maslow’s hierarchy of needs, what is the term used for the drive to become what one is capable of becoming? a. Perfection b. Self-actualizationc. Hypo-glorificationd. Self-esteeme. Attainment

6. The best way for an employer to find out if a potential employee can do a job is by _____.a. Using the interview processb. Using a written testc. Having them spend a day in the officed. Administering an IQ teste. Using a performance simulation test

7. Which approach to performance evaluation rank-orders employees from best to worst?a. Individual rankingb. Group order rankingc. Paired comparisond. Straight rankinge. Comparison ranking

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8. Examples of on-the-job training include all of the following EXCEPT _____.a. Job rotationb. Apprenticeshipc. Simulation centersd. Understudy assignmentse. Formal mentoring programs

9. How would a participator best absorb information? a. Use computers to read manualsb. Watch others and imitate behaviorsc. Copy what others do on computersd. Listen to an audiotapee. Gain hands-on experience

10. An example of change in competition is _____. a. Growth of e-commerce b. Collapse of Enron Corporationc. Iraq-U.S. ward. Increased interest in urban livinge. A decrease in interest rates

11. _____ defines how job tasks are formally divided, grouped, and coordinated. a. Organizational structureb. Work specializationc. Departmentalizationd. Organizational behaviore. Matrix departmentation

12. Shortcuts in judging others include all of the following EXCEPT _____. a. Stereotypingb. Halo effectc. Projectiond. Self-serving biase. The Pygmalion effect

13. Holland’s theory of personality-job fit argues that job satisfaction is highest and turnover lowest where _____. a. Personality and occupation are in agreementb. An individual is highly motivatedc. Salary is highd. Felt emotions are displayede. Compensation is high

14. Given that the previous forecast of 65 turned out to be four units less than the actual demand. The next forecast is 66. What would be the value of alpha if the simple exponential smoothing forecast method is being used? a. 0.02 b. 0.4c. 0.04d. 0.25e. None of these

15. Five forces model is an operation-consulting tool used in the ___________ phase. a. Problem definitionb. Data gatheringc. Data analysisd. Cost impact

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e. Implementation

16. According to Hau Lee, which of the following types of products need to be delivered with efficient supply-chains? a. Custom products b. Innovative productsc. Grocery productsd. High technology productse. Responsive products

17. The drawbacks of JIT in relation to synchronous manufacturing include all BUT: a. JIT is limited to repetitive manufacturing b. JIT requires a stable production levelc. JIT uses a schedule to assign work to each workstationd. JIT does not allow very much flexibility in the products producede. All of these are drawbacks of JIT

18. From an operations standpoint, the goal of the firm is to simultaneously increase throughput and inventory and reduce operating expenses. a. Trueb. False

19. ______________ refers to service encounters whose specifications must be developed through some interaction between the customer and the server.. a. Mail contactb. Face-to-face loose specsc. Face-to-face tight specsd. Phone contacte. Face-to-Face total customization

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FinanceCorporate finance

Capital budgetingCost of capitalCapital structureDividend policyWorking capital managementInternational finance

InvestmentsFinancing instrumentsRisk and returnSecurities valuation and analysisOptions, futures, and other derivatives

Financial markets and institutionsCapital marketsMoney marketMarket efficiencyInvestment banking

1. Pursuing valuable ideas is the best way .a. To achieve extraordinary returns.b. To get yourself in troublec. To restrain your spending.d. To avoid risk.

2. An investor's risky portfolio is made up of individual stocks. Which (if any) of the following statements about this portfolio is true? a. The beta of this portfolio is negative if all stocks are positively correlated.b. All stocks in this portfolio will have a beta greater than one.c. All stocks in this portfolio will have a beta less than one.d. None of these

3. Which of the following represents the perfect capital market view of capital structure? a. The value of the leveraged firm is equal to the value of the unleveraged firm plus the tax rate

times the amount of debt.b. Corporate taxes cause debt to be cheaper than equity.c. Maximum firm value results from being essentially all-debt financed.d. None of these

4. Which of the following represents the perfect capital market view of capital structure? a. The value of the leveraged firm is equal to the value of the unleveraged firm plus the tax rate

times the amount of debt.b. Corporate taxes cause debt to be cheaper than equity.c. Maximum firm value results from being essentially all-debt financed.

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Finance Section


d. None of these

5. Bank term loans represent . a. Long-term loans that looks like short-term debtb. Loans for specified amounts that require borrowers to repay them according to specified

schedulesc. The pledge of receivablesd. All of these

6. says to calculate the net advantage of a foreign project on the basis of the incremental after-tax cash flows the project will provide. a. The Behavioral Principleb. The Principle of Comparative Advantagec. The Principle of Incremental Benefitsd. The Time Value of Money Principle

7. Which of the following forms of ownership are purchased in the capital markets? a. Stocksb. Bank debtc. Computer equipmentd. Research and development

8. The Principle of implies that the expected return for an asset equals its required return.a. Capital Market Efficiencyb. Risk-Return Trade-Offc. Comparative Advantaged. Signaling

9. says to look for opportunities to develop derivatives that enable firms to cope better with the financial risks they face.a. The Principle of Incremental Benefitsb. The Principle of Valuable Ideasc. The Principle of Two-Sided Transactionsd. The Behavioral Principle

10. Which of the following statements is FALSE? a. Like a call option, a warrant specifies the underlying common stock, the number of shares, a

strike price, an expiration date, and the option type (American or European).b. Dividing the face amount of the convertible bond by the conversion price gives the conversion

ratio.c. Convertible preferred stock is usually perpetual, whereas convertible debt has a stated

maturity and usually has a sinking fund.d. Conversion of PERCs into common stock is voluntary, not mandatory.

11. Which (if any) statement is true? a. The Principle of Comparative Advantage states that capital market efficiency allows a firm to

concentrate its primary efforts on its comparative advantage, rather than on its day-to-day financing.

b. The Principle of Signaling states that new ideas can provide value when first introduced, even in an efficient capital market.

c. The Principle of Valuable Ideas suggests that self-interested capital market transactions force market prices toward being fair prices.

d. None of these

12. You work for ABC, Inc. in the finance department. You own 200 shares in ABC that are selling at $20 per share on the NYSE. You just found out they will publicly announce a new stock offering. The costs from the offering will be 10% of the new offering. The new offering will increase the number of outstanding share by 30%. The new offering is not expected to have any positive or negative impact

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on firm value due to increasing the firm’s cash flows. There are currently 20,000,000 shares of ABC outstanding. Once the announcement is made public, what will be the expected impact on the value of your shareholdings due to the transaction (or issuance) costs of the new offering? a. There will no loss because new money will be taken in.b. You will lose $120c. You will lose $400.d. None of these

13. Which (if any) statement is true? a. The Principle of Comparative Advantage states that capital market efficiency allows a firm to

concentrate its primary efforts on its comparative advantage, rather than on its day-to-day financing.

b. The Principle of Signaling states that new ideas can provide value when first introduced, even in an efficient capital market.

c. The Principle of Valuable Ideas suggests that self-interested capital market transactions force market prices toward being fair prices.

d. None of these

14. Which of the following is not a disadvantage of going public? a. Going public involves significant expenses, generally from 6 to 13% of the amount of the

offering, and even more for very small offerings.b. Going public can also take a substantial amount of valuable management time.c. Going public lessens estate tax obligations.d. Going public can cause existing shareholders to lose voting control.

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AccountingRelevant cost

Theory of constraintsSpecial orderMake or buyTransfer pricingSell or process further

Resource planning and analysisForecastingCash budgetingVariance analysis

Cost-Volume-Profit (CVP) analysisCost behaviorBreak-even analysisTarget profit

Product costingAbsorption vs. variableActivity-basedProcess vs. job-orderStandardByproduct

Financial reporting and analysisFinancial statementsFinancial ratiosRegulatory environment

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Accounting Section


1. Which one of the following is a cost that would not likely be associated with computer-integrated manufacturing?a. Manufacturing overhead associated with allocation of equipment depreciationb. Direct labor costs of a welder on the production floorc. Manufacturing overhead associated with allocation of the plant lease to the latest production

rund. Direct materials cost with several fuse plates for a new automobile

2. If a plant is operating at full capacity and receives a one-time opportunity to accept an order at a special price below its usual price, thena. Only variable costs are relevant.b. Fixed costs are not relevant.c. The order will likely be accepted.d. The order will likely be rejected.

3. Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs:

Direct Materials $60,000Direct Labor 10,000Variable Overhead 30,000Fixed Overhead20,000

If Tex's Manufacturing Company purchases the component externally, $15,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?

a. $120,000b. $85,000c. $115,000d. $100,000

4. Transfer prices should be set in such a way as to:a. Discourage the internal sales of goods and servicesb. Reflect the actual costs, including opportunity costs, of the transferc. Eliminate profits on the transferd. Reflect market prices

5. Tucson Corporation has a joint process that produces three products: X, Y, and Z. Each product may be sold at split-off or processed further and then sold. Joint- processing costs for a year amount to $100,000. Other relevant data are as follows:

Separate Processing

Sales Value Costs after Sales ValueProduct at Split - off Split - off at Completion

X $128,000 $16,000 $160,000Y 75,000 26,000 99,000Z 32,600 20,000 50,000

Once product X is produced, processing it further will cause profits to _____.

a. Increase by $32,000b. Decrease by $16,000c. Decrease by $32,000d. Increase by $16,000

6. A _____ gives the expected sales under a given set of conditions.

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a. Sales predictionb. Sales budgetc. Budget forecastd. Sales forecast

7. The projection of financial position at the end of the budget period is found on the: a. Budgeted income statement.b. Cash budget.c. Budgeted balance sheet.d. Sales budget.

8. Black Company planned to produce and sell 900 units at a total cost of $180,000. Actual production was 900 units at a cost of $170,000, Black Company was _____. a. Efficientb. Inefficientc. Effectived. Ineffective

9. Cost behavior analysis applies to: a. Retailers.b. Wholesalers.c. Manufacturers.d. All entities.

10. A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $120,000. The number of units the company must sell to break even is: a. 60,000 units.b. 24,000 units.c. 240,000 units.d. 40,000 units.

11. The amount by which actual or expected sales exceeds break-even sales is referred to as:a. Contribution marginb. Unanticipated profit.c. Margin of safety.d. Target net income.

12. There is no difference between variable-costing and absorption-costing income if there is no_____.a. Beginning inventoryb. Ending inventoryc. Change in inventory leveld. Variable overhead cost

13. An example of an activity cost pool is:a. Machine hours.b. Setting up machines.c. Number of setups.d. Number of inspections.

14. Which of these best reflects a distinguishing factor between a job order cost system and a process cost system? a. The detail at which costs are calculated.b. The time period each covers.c. The number of work in process accounts.d. The manufacturing cost elements included.

15.Identify which statement below about "currently attainable standards" is NOT true.

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a. They allow for normal spoilage and nonproductive time.b. Because they allow for waste, they usually result in favorable variances.c. They represent projections of what will probably be attained.d. Employees usually view these goals as resonable

16. Join costs are incurred _____________. a. Before the production process is startedb. Before individual products are separately identifiedc. After the split-off point but before the process-further decisiond. After the process-further decision

17. The ____________ is NOT one of the three major financial statements a. Statement of cash flowsb. Income statementc. Balance sheetd. Statement of equity position

18. _____ are profitability ratios. a. Gross profit rate and return on salesb. Dividend payout and rate of return in invested capitalc. Earnings per share and dividend yieldd. Price earnings and current ratio

19. Which of the following statements is not true regarding the Sarbanes-Oxley Act (SOX) of 2002? a. The Act calls for increased oversight responsibilities for boards of directors.b. The Act has resulted in increased penalties for financial fraud by top management.c. The Act calls for decreased independence of outside auditors reviewing corporate financial

statements.d. The Act is meant to decrease the likelihood of unethical corporate behavior

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Social/PoliticalInternational businessEthics and social responsibilityDiversity and culture

1. Although the U.S. has had a longstanding agreement with ___________ after the passage of NAFTA, _________ became the United States' second largest trading partner.

a. Canada, Venezuelab. Canada, Mexicoc. Mexico, Canadad. Mexico, Venezuelae. Great Britain, Paraguay

2. Which of these parties are considered when decisions are made utilizing stakeholder ethical theory?a. Shareholdersb. Customersc. Employeesd. All of these are considered when using stakeholder theory

3. Which of the following statements is true concerning international selection practices? a. Structured interviews are popular in all countriesb. Beliefs about how one should conduct an interpersonal interview are consistent across

countries.c. The use of educational qualifications in screening candidates seems to be a universal

practice.d. Policies and practices do not require modification from one country to the next.e. Groups are typically much more effective at selecting candidates in individualistic cultures.

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Social Political Section



Legal/Political: LAW/531Legal and regulatory environment

1. Which of the following is correct regarding the Commerce Clause of the U.S. Constitution?a. The Commerce Clause places federal responsibility for judicial determination in the

Commerce Department.b. The Commerce Clause cannot regulate business when it occurs within a state.c. The Commerce Clause can apply to a business that only does business in one state.d. The Commerce Clause can regulate commerce, but not the transportation of goods.e. The Commerce Clause regulated inter-state commerce only.

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Legal/Political Section



Economic: ECO/561Managerial economics

1. When drawing demand and supply curves, economists are assuming that the primary influence on production and purchasing decisions is: a. Priceb. The cost of productionc. The overall state of the economyd. Consumer incomese. Real GDP

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Economics Section



Information SystemsInformation systems/technologyE-commerce

1. The modern business environment has all of the following characteristics EXCEPT:a. Globalb. Interconnectedc. Competitived. Relatively statice. Real-time

2. The difference between target marketing and mass marketing is that target marketinga. Means focusing on a small marketb. Focuses on short-run objectives, while mass marketing focuses on long-run objectivesc. Focuses on specific customers, while mass marketing aims at an entire marketd. Does not rely on e-commerce but mass marketing doese. Aims at increased sales, while mass marketing focuses on increased profits

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Information Systems Section



Research/statistical analysis:Data AcquisitionEvaluation of source dataProbabilityForecastingInformation creationUse of assumptions

1. Which of the following types of marketing research firms would best be described as being one that gathers consumer and trade information which they sell for a fee (e.g., Nielsen Media Research)? a. Custom marketing research firms. b. Syndicated-service research firmsc. Specialty-line marketing research firms.d. General-line marketing research firms.e. Non-profit marketing research firms.

2. A scatter diagram: a. Is a graphic tool designed to portray the relationship between variables and uses interval or

ratio scale datab. Only relies on ration scale datac. Does not allow negative values.d. Is a graphic tool designed to portray the relationship between nominal datae. Is not a reliable measurement of data

3. Events are independent if:a. By virtue of one event happening another cannot. b. The probability of their occurrence is greater than 1.c. We can count the possible outcomes.d. The probability of one event happening does not affect the probability of another event

happeninge. None of these

4. If a marketing researcher selects the most accessible population members, he or she would have selected the ________ sampling method.a. Simple random b. Stratified randomc. Clusterd. Judgmente. Convenience

5. Which source of evidence to support experimental results is most threatened by the use of a field experiment? a. Agreement between the IV and DV b. Time order of the occurrence of the variablesc. Control of contamination from extraneous variablesd. Use of a control groupe. Manipulation of the IV

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Research and Statistical Analysis Section


6. A _____ scale is a scale that scores an object or property without making a direct comparison to another object or propertya. Rankingb. Ratingc. Categorizationd. Sortinge. Recording

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week six - str581 - sample final exam

Documents

marketing research

marketing management

marketing intelligence

marketing mix

modern marketing

strategic planning

specific marketing situation

cultural preferences