BT- CH - 11 TO 20

Which of the following are advantages of functional organisations ?

1. A. Suits decentralised organisations

2. B. Pools expertise

3. C. Focus on internal processes facilitates quick response to environmental change

4. D. Facilitates the recruitment of specialists

• 1. Statements A and C only

• 1. Statements B and D only

• 1. Statements A, C and D only

• 1. Statements A, B, C and D

The scalar chain of an organisation influences its structure.

Which of the following statements describe the scalar chain of an organisation?

1. 1. The number of reporting lines between the top and bottom levels of an organisation

2. 2. The number of subordinates reporting to a manager

3. 3. The number of levels of delegated authority

4. 4. The number of subordinates in one location

• 1. Statement 2 only

• 1. Statements 1 and 2 only

• 1. Statements 1 and 3 only

• 1. Statements 1, 2, 3 and 4

A company manufacturing handbags has a problem with an unreliable supplier. It is currently in negotiations with a new supplier so that it can meet its production schedule next month.

Which levels of planning does this problem involve?

1. 1. Strategic

2. 2.Tactical

3. 3. Operational

• 1. 1 only

• 1. 1 and 2 only

• 1. 2 and 3 only

• 1. 1, 2 and 3

Adrian, Lesley and Manju all work in the purchasing department of an organisation. They carry out similar work, but have responsibilities for managing different contracts within the organisation.

Lesley is very busy at the moment, working on the tender process for a large contract that is up for renewal. Adrian and Manju have little work that urgently needs their attention, so they offer to help Lesley with her tender so that she is ready on time. They do not ask permission from the head of the purchasing department to carry out this work in favour of their own.

Which of the circumstances listed below does this situation illustrate?

• 1. Unfair allocation of work by the head of purchasing

• 1. Efficiency can be created by the informal organisation

• 1. The head of purchasing has no authority or respect in this organisation

• 1. That rules are made to be broken

Paul works as a desktop-publishing specialist in an advertising agency. Paul creates layouts for print-related advertising campaigns for the eight account managers and the art director he supports. He also works closely with the agency’s five art managers and their creative director.

Which structure best describes this section of the advertising agency?

• 1. Entrepreneurial

• 1. Product based

• 1. Service oriented

• 1. Matrix

A computer company has identified that there is demand for a lower-cost laptop to be included in its product range.

Which two departments would most likely be tasked with achieving this?

• 1. Purchasing, Research and Development

• 1. Research and Development, Marketing

• 1. Marketing, Manufacturing

• 1. Purchasing, Direct service provision

The main decision under “place” a marketing manager has to take when reviewing the marketing mix is whether to sell directly or indirectly to customers.

Is this statement true or false?

• 1. True

• 1. False

What are the elements of the purchasing mix?

• 1. Price, quality, promotion, place

• 1. Promotion, price, distribution, place

• 1. Quantity, quality, price, delivery

• 1. Quantity, quality, place, delivery

Organisations such as accountancy firms sell services, rather than products, to customers.

Which of the following statements relating to services are true?

1. 1. Setting the price for a service is easier than setting the price for a product

2. 2. Standard pricing can be adopted in a service organisation

3. 3. Services have no tangible components

4. 4. Quality and reputation are fundamental to a service organisation’s success

• 1. Statement 3 only

• 1. Statements 3 and 4 only

• 1. Statements 2 and 4 only

• 1. Statements 1, 2, 3 and 4

Roger Co’s product Q is wildly popular and is currently the number one best seller on the market, which was Roger Co’s primary objective over the past two years. However, product Q’s sales performance has hurt Roger Co’s profitability.

Which aspect of pricing is Roger Co’s product Q not adequately considering?

• Costs

• Customers

• Competition

• Corporate objectives