MGT 103 CHAPTER 2 EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026
offerings - Answers goods, services, or ideas that create value for both the organization and its
customers by satisfying their needs and wants
organization - Answers a legal entity that consists of people who share a common mission
For-profit organizations - Answers privately owned organization that serves its customers to earn a
profit so that it can survive
non-profit organization - Answers a nongovernmental organization that serves its customers but does
not have profit as an organizational goal
government agency - Answers a federal, state, county, or city unit that provides a specific service to
its constituents
strategy - Answers an organization's long-term course of action designed to deliver a unique
customer experience while achieving its goals
corporate level - Answers where top management directs overall strategy for the entire organization
"top management" - Answers highest level of management, consisting of the president and other key
company executives who develop strategic plans
What are the three levels of strategy in an organization? - Answers 1. corporate
2. strategic business unit
3. Functional (informational systems, finance, research and development, marketing, manufactoring
operations, human resources
Strategic Business Unit (SBU) - Answers a subgroup of a single business or collection of related
businesses within the larger organization
strategic business unit level - Answers managers set a more specific strategic direction for their
businesses to exploit value-creating opportunities
which level of organization is the most specific and focused? - Answers Functional level
cross-functional team - Answers A group of managers brought together from different departments
to perform organizational tasks.
example of a strategic business unit: - Answers prada manages a portfolio or group of businesses-
including perfume, leather goods, and luggage- each of which may be viewed as a strategic business
unit
Core Values - Answers are the fundamental, passionate, and enduring principles of an organization
that guide its conduct over time.
Stakeholders - Answers employees, shareholders, board of directors, suppliers, distributors,
creditors, unions, government, local communities, and customers
mission - Answers a statement of the organization's function in society that often identifies its
customers, markets, products, and technologies
Mission Statement - Answers clear, concise, meaningful, inspirational, and long-term
organizational culture - Answers the set of values, ideas, attitudes, and norms of behavior that is
learned and shared among the members of an organization
the organizations foundation enables it to set direction in terms of - Answers 1. the business it is in
2. its specific goals
business - Answers describes the clear, broad, underlying industry or market sector of an
organization's offering
business model - Answers the strategies an organization develops to provide value to the customers
it serves
Goals - Answers statements of an accomplishment of a task to be achieved, often by a specific time
types of goals in a business - Answers -profit
-sales
-market share
-quality
-customer satisfaction
-employee welfare
-social responsibility
market share - Answers the ratio of sales revenue of the firm to the total sales revenue of all firms in
the industry, including the firm itself
What are the two ways organizational strategies vary? - Answers 1. a strategy's level in the
organization
offerings - Answers goods, services, or ideas that create value for both the organization and its
customers by satisfying their needs and wants
organization - Answers a legal entity that consists of people who share a common mission
For-profit organizations - Answers privately owned organization that serves its customers to earn a
profit so that it can survive
non-profit organization - Answers a nongovernmental organization that serves its customers but does
not have profit as an organizational goal
government agency - Answers a federal, state, county, or city unit that provides a specific service to
its constituents
strategy - Answers an organization's long-term course of action designed to deliver a unique
customer experience while achieving its goals
corporate level - Answers where top management directs overall strategy for the entire organization
"top management" - Answers highest level of management, consisting of the president and other key
company executives who develop strategic plans
What are the three levels of strategy in an organization? - Answers 1. corporate
2. strategic business unit
3. Functional (informational systems, finance, research and development, marketing, manufactoring
operations, human resources
Strategic Business Unit (SBU) - Answers a subgroup of a single business or collection of related
businesses within the larger organization
strategic business unit level - Answers managers set a more specific strategic direction for their
businesses to exploit value-creating opportunities
which level of organization is the most specific and focused? - Answers Functional level
cross-functional team - Answers A group of managers brought together from different departments
to perform organizational tasks.
example of a strategic business unit: - Answers prada manages a portfolio or group of businesses-
including perfume, leather goods, and luggage- each of which may be viewed as a strategic business
unit
Core Values - Answers are the fundamental, passionate, and enduring principles of an organization
that guide its conduct over time.
Stakeholders - Answers employees, shareholders, board of directors, suppliers, distributors,
creditors, unions, government, local communities, and customers
mission - Answers a statement of the organization's function in society that often identifies its
customers, markets, products, and technologies
Mission Statement - Answers clear, concise, meaningful, inspirational, and long-term
organizational culture - Answers the set of values, ideas, attitudes, and norms of behavior that is
learned and shared among the members of an organization
the organizations foundation enables it to set direction in terms of - Answers 1. the business it is in
2. its specific goals
business - Answers describes the clear, broad, underlying industry or market sector of an
organization's offering
business model - Answers the strategies an organization develops to provide value to the customers
it serves
Goals - Answers statements of an accomplishment of a task to be achieved, often by a specific time
types of goals in a business - Answers -profit
-sales
-market share
-quality
-customer satisfaction
-employee welfare
-social responsibility
market share - Answers the ratio of sales revenue of the firm to the total sales revenue of all firms in
the industry, including the firm itself
What are the two ways organizational strategies vary? - Answers 1. a strategy's level in the
organization
