Chapter 2 - Developing Successful Organizational and Marketing Strategies

Question 1

What is an organization?

Answer 1

It is a legal entity that consists of people who share a common mission. This motivates them to develop offerings (goods, services or ideas) that create value for both the organization and it’s customers by satisfying their needs and wants.

Question 2

What are the three types of organizations?

Answer 2

1. for profit organizations (a business firm)
2. nonprofit organizations: a non governmental organization that serves its customers but does not have profit as an organizational goal. instead its goals may be operational efficiency or client satisfaction.
3. government agencies: is a federal, state, county or city unit that provides a specific service to its constituents.

Question 3

What is an industry?

Answer 3

Organizations that develop similar offerings.

Question 4

What is a strategy?

Answer 4

An organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals.

Question 5

What are the three organizational levels?

Answer 5

Corporate Level: where top management directs overall strategy for the entire organization. Top management usually refer to the board of directors and senior manager officers with a variety of skills and experiences that are invaluable in establishing the organization’s overall strategy.

Strategic Business Unit Level: Managers set a more specific strategic direction for their businesses to exploit value-creating opportunities.

Functional Level: when groups of specialists actually create value for the organization. At the functional level, the organizations strategic direction becomes its most specific and focused.

Question 6

What must a visionary organization do?

Answer 6

specify it’s foundation (why does it exist?)
set a direct (what will it do)
formulate strategies (how will it do it)

Question 7

What does the organizational foundation (why) consist of?

Answer 7

Core values
Mission (vision)
Organizational culture

Question 8

What does the organizational direction (what) consist of?

Answer 8

Business
Goals (objectives)
-Long-term
-short-term

Question 9

What does the Organizational strategies (how) consist of?

Answer 9

By level:
corporate
sbu
functional

by product:
good
service
idea

Question 10

what is the visionary organization formula?

Answer 10

organizational foundation (why) + Organizational direction (what) = Organizational strategies (how)

Question 11

What are an organization’s core values?

Answer 11

the fundamental, passionate, and enduring principles that guide its conduct over time.