Q&A Hero

Q: Diversification refers to the marketing strategy of a. increasing sales of current products in current markets. b. selling current products to new markets. c. selling new products to new markets. d. selling new products to current markets. e. selling the same brands in both current and new markets.

Q: The marketing strategy of developing new products and selling them in new markets is referred to as a. product penetration b. product development c. market development d. market penetration e. diversification

Q: If Ben & Jerry's sold a line of new "Occupy Ben & Jerry's" T-shirts targeted to college students in the U.S., it would be using a __________ strategy. a. product development b. market development c. market penetration d. diversification e. market saturation

Q: Product development refers to the marketing strategy of a. increasing sales of current products in current markets. b. selling current products to new markets. c. selling new products to new markets. d. selling new products to current markets. e. selling the same brands in both current and new markets.

Q: The marketing strategy of selling new products to current markets is referred to as __________. a. product penetration b. product development c. market development d. diversification e. market penetration

Q: If Ben & Jerry's sold its Bonnaroo Buzz Fair Trade-sourced super premium ice cream to Brazilian consumers, it would be using a __________ strategy. a. product development b. market penetration c. diversification d. market development e. market saturation

Q: If Ben & Jerry's starts selling its ice cream in China for the first time, it will be using a __________ strategy. a. product development b. market development c. diversification d. market saturation e. market penetration

Q: Market development refers to the marketing strategy of a. increasing sales of current products in current markets. b. selling new products to new markets. c. selling new products to current markets. d. selling the same brands in both current and new markets. e. selling current products to new markets.

Q: The marketing strategy to sell current products to new markets is referred to as __________. a. market penetration b. market infiltration c. market development d. product development e. diversification

Q: If Ben & Jerry's sold more of its Bonnaroo Buzz Fair Trade-sourced super premium ice cream to U.S. consumers, it would be using a __________ strategy. a. product development b. market development c. market penetration d. diversification e. market saturation

Q: When using a __________ strategy, there is no change in either the basic product line or the markets served. Increased sales are generated by either selling more products through better promotion or distribution or selling the same number of products at a higher price. a. product development b. market development c. diversification d. market saturation e. market penetration

Q: One way a company can benefit from implementing a market penetration strategy would be to a. sell more products at a lower price. b. sell the same amount of product at a higher price. c. find a new market and sell the product at a much higher price. d. alter the product and sell it to a new market. e. reduce promotion and distribution costs to improve production efficiencies.

Q: Market penetration refers to the marketing strategy of a. selling current products to new markets. b. selling new products to new markets. c. selling new products to current markets. d. selling the same brands in both current and new markets. e. increasing sales of current products in current markets.

Q: A marketing strategy to increase sales of current products in current markets is referred to as a. market penetration. b. market development. c. product development. d. diversification. e. marketing synergy.

Q: Which of the following statements regarding diversification analysis is most accurate? a. Companies should only use diversification analysis if they are well-established; new companies that use this process run the risk of trying to do too much too soon. b. For any product, there is both a current and a new market and for any market, there is both a current and a new product. c. Most companies discover that there is at least one product that is targeted to the wrong market. d. Diversification analysis is only effective for consumer products. e. Diversification analysis is used to forecast and calculate industry sales for new products.

Q: Diversification analysis refers to a. a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D"manufacturing efficiencies. b. a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. c. a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products. d. a technique used to determine the appeal of each SBU or offering and then the amount of cash, if any, each should receive. e. a framework that identifies four "generic" strategies to achieve a competitive advantage.

Q: A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products is referred to as __________. a. diversification analysis b. synergy analysis c. a market-product grid framework d. Porter's generic business strategy assessment e. market segmentation

Q: Although an organization has limited influence on market growth rate, its main alternative is to try to change its relative market share. The most likely way for a company to turn a "question mark" into a "star" rather than a "dog" is to a. remove cash from it. b. reduce advertising for it. c. inject cash into it. d. reduce the feature set for it. e. decrease the market growth rate.

Q: One of the weaknesses inherent in the use of the BCG business portfolio analysis is that it a. causes dissension between different divisions when one is labeled a "star" and another a "dog." b. reduces employee motivation to move a low valued SBU to a higher one. c. considers too many SBU factors beyond market growth rate and relative market share. d. does not require sales forecasts in order to be implemented. e. is often difficult to obtain the needed information to place SBUs in the matrix correctly.

Q: One of the strengths inherent in the use of the BCG business portfolio analysis is that it a. is based solely on company perception rather than actual data. b. considers all factors that might impact an SBU's value to an organization. c. acts as a strong motivational tool for employees in SBUs that have been labeled "dogs" or "question marks." d. forces a firm to place each of its SBUs in the growth-share matrix, which in turn suggests which SBUs will be cash producers and cash users in the future. e. identifies specific marketing strategies and marketing tactics on how to solve SBU shortcomings.

Q: Kodak's digital camera sales may flatten due to high household penetration, the economic downturn, and increased competition. Kodak remains No. 3 in market share behind Canon and Sony. Today more women are buying digital cameras because they are small and light. Bottom line: Kodak expects this SBU to continue to be a "__________," with its new digital camera models generating mainly replacement sales. a. hedgehog b. star c. cash cow d. dog e. question mark

Q: In 2003, Kodak's traditional film sales were an $8 billion dollar "cash cow." In 2009, the revenue generated dropped below $500 million. By 2012, film sales will almost evaporate. Kodak's film SBU became a "dog" primarily due to a. an exponential increase in the price of silver, which is necessary for the production of film. b. the loss of patent protection. c. too much revenue shifted from this SBU to the more profitable ink-jet printer SBU. d. the use of traditional film cameras was only a fad. e. the advent of the popularity of digital photography.

Q: In 2008, Kodak's ink-jet printer could be considered a "question mark" because the market dramatically changed as consumers shifted from single-purpose to multifunction machines designed to print photos, make copies, scan images, and send faxes. Today, Kodak now offers only multifunction printers. If Kodak can double or triple unit sales soon, this SBU "question mark" could become a "__________;" if online printing and sharing steal market share, this SBU could become a "__________." a. cash cow; star b. cash cow; dog c. star; dog d. star; hedgehog e. in either scenario, the inkjet printer will remain a question mark

Q: In 2007, Kodak introduced a line of digital picture frames that allowed consumers to upload, store, and view digital images. In 2009, Kodak expanded its line with more than 11 items ranging in price from $60 to $180. By 2013, sales could approach 50 million units for market leader Kodak. According to the BCG growth-share matrix, this SBU is a __________. a. dog b. star c. cash cow d. question mark e. hedgehog

Q: In 2008, about 80 percent of U.S. consumers owned a digital camera because it is easy to use, is relatively inexpensive, and allows images to be uploaded and shared online. And Kodak's sales of digital cameras have been good, moving from a "question mark" to a "cash cow." But in the near future, Kodak's digital camera sales may flatten due to high household penetration, the economic downturn, and increased competition. As a result, its new digital camera sales may come mostly as replacement sales for existing, not new customers. Kodak expects this SBU may become(may remain) a __________ in the near future. a. question mark b. star c. hedgehog d. cash cow e. dog

Q: Figure 1. In Figure 1. shown above, SBUs found in quadrant "D" would be called __________. a. cash cows b. stars c. question marks d. dogs e. hedgehogs

Q: Figure 1. In Figure 1. shown above, SBUs found in quadrant "C" would be called __________. a. cash cows b. stars c. question marks d. dogs e. hedgehogs

Q: Figure 1. In Figure 1. shown above, SBUs found in quadrant "B" would be called __________. a. cash cows b. stars c. question marks d. dogs e. hedgehogs

Q: Figure 1. In Figure 1. shown above, SBUs found in quadrant "A" would be called __________. a. cash cows b. question marks c. dogs d. hedgehogs e. stars

Q: Several years ago, the Honda Motor Company unveiled the hybrid version of the Honda Civic. While the hybrid vehicles are very fuel efficient, they are also very expensive to purchase. Hybrid vehicles sales have increased over 570 percent with a compound annual growth rate of 88.6%. Sales of the Civic eventually overtook those of the Toyota Prius, making it the number one hybrid car in the U.S. For years, Honda has experienced tremendous success with their Accordsin fact, these Honda cars are the top-selling automobiles in the U.S. Where would the Honda Civic (hybrid version) and the Honda Accord fall in the BCG business portfolio analysis matrix? a. The hybrid Civic is a star; the Accord is a cash cow. b. The hybrid Civic is a cash cow; the Accord is a star. c. Due to the overwhelming success of Honda cars, both the Accord and the hybrid Civic are cash cows. d. The hybrid Civic is a hedgehog; the Accord is a cash cow. e. The hybrid Civic is a dog; the Accord is a star.

Q: In its business portfolio analysis, an organization's SBUs often start as "__________" and then become "__________." a. dogs; question marks b. question marks; stars c. stars; question marks d. stars; dogs e. question marks; dogs

Q: The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. "Dogs" are located in which area of the BCG growth-share matrix? a. upper left quadrant b. upper right quadrant c. center quadrant d. lower right quadrant e. lower left quadrant

Q: The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. "Dogs" are SBUs that are classified as having a. high market growth rates and high relative market shares. b. low market growth rates but high relative market shares. c. low market growth rates and low relative market shares. d. high market growth rates but low relative market shares. e. medium market growth rates and medium relative market shares.

Q: SBUs with a low share of slow-growth markets that may generate enough cash to sustain themselves but do not hold the promise of ever becoming real winners for the organization are referred to as __________. a. dogs b. cash cows c. stars d. question marks e. hedgehogs

Q: The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. "Question marks" are located in which area of the BCG growth-share matrix? a. upper left quadrant b. upper right quadrant c. center quadrant d. lower right quadrant e. lower left quadrant

Q: The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. "Question marks" are SBUs that are classified as having a. high market growth rates and high relative market shares. b. low market growth rates but high relative market shares. c. low market growth rates and low relative market shares. d. high market growth rates but low relative market shares. e. medium market growth rates and medium relative market shares.

Q: SBUs with a low share of high-growth markets that may require large cash injections of cash just to maintain market share are referred to as __________. a. dogs b. cash cows c. question marks d. stars e. hedgehogs

Q: Solarcom is a 30-year-old information technology company that owns several subsidiaries. One of its subsidiaries is Atlantix Global Systems, which is one of the leading wholesalers for refurbished computer equipment that has a large share of an industry that is growing worldwide. According to the BCG business portfolio analysis framework, Atlantix Global would most likely be classified as a __________. a. dog b. cash cow c. question mark d. hedgehog e. star

Q: The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. "Stars" are located in which area of the BCG growth-share matrix? a. upper left quadrant b. upper right quadrant c. center quadrant d. lower right quadrant e. lower left quadrant

Q: SBUs with a high share of high-growth markets that may not generate enough cash to support their own demanding needs for future growth are referred to as __________. a. dogs b. cash cows c. question marks d. stars e. hedgehogs

Q: The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. "Stars" are SBUs that are classified as having a. high market growth rates and high relative market shares. b. low market growth rates but high relative market shares. c. low market growth rates and low relative market shares. d. high market growth rates but low relative market shares. e. medium market growth rates and medium relative market shares.

Q: Several years ago, Black & Decker purchased General Electric's small appliances product line. Black & Decker purchased the line because it needed the cash generated from a product line that had a dominant market share in the slow-growth small appliance industry. GE's small appliances product line is most likely a __________ for Black & Decker. a. dog b. cash cow c. question mark d. star e. hedgehog

Q: The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. "Cash cows" are located in which area of the BCG growth-share matrix? a. upper left quadrant b. upper right quadrant c. center quadrant d. lower right quadrant e. lower left quadrant

Q: SBUs with dominant shares of slow-growth markets that provide cash to cover the organization's overhead and to invest in other SBUs are referred to as __________. a. cash cows b. stars c. question marks d. dogs e. hedgehogs

Q: The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. "Cash cows" are SBUs that are classified as having a. high market growth rates and high relative market shares. b. low market growth rates but high relative market shares. c. low market growth rates and low relative market shares. d. high market growth rates but low relative market shares. e. medium market growth rates and medium relative market shares.

Q: All of the following are names the BCG has given to describe the four quadrants in its growth-share matrix EXCEPT: a. dogs. b. stars. c. question marks. d. cash cows. e. hedgehogs.

Q: In a BCG growth-share matrix, a relative market share of 10 at the left end of the scale on its horizontal axis means that the SBU has 10 times the share of its largest competitor, whereas a relative market share of 0.1 at the right end of the scale on its horizontal axis means that a. the SBU has only 10 percent of the share of its smallest competitor. b. the SBU has 100 percent of the share of its largest competitor. c. the growth rate between the SBU and the next largest competitor is actually identical. d. the SBU has only 10 percent of the share of its largest competitor. e. the industry growth rate is declining.

Q: The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs) on a growth-share matrix. The horizontal axis of this matrix indicates a. the annual rate of growth of the SBU's industry. b. the relative dollar ($) market share of the largest competitor. c. the annual rate of growth of the firm's largest competitor. d. the relative unit (#) market share of the smallest competitor. e. the annual rate of growth of the firm itself.

Q: In the Boston Consulting Group (BCG) model for analysis of a firm's strategic business units, or SBUs, the horizontal axis reflects __________. a. market growth rate b. marketing efficiencies c. industry attractiveness d. market segment size e. relative market share

Q: The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs) on a growth-share matrix. The vertical axis of this matrix indicates a. the annual rate of growth of the firm's largest competitor. b. the relative dollar ($) market share of the largest competitor. c. the annual rate of growth of the SBU's industry. d. the relative unit (#) market share of the largest competitor. e. the annual rate of growth of the firm itself.

Q: In the Boston Consulting Group (BCG) model for analysis of a firm's strategic business units, or SBUs, the vertical axis reflects __________. a. market growth rate b. marketing efficiencies c. industry attractiveness d. market segment size e. relative market share

Q: The purpose of business portfolio analysis is to a. add or delete product line and brand extensions. b. search for growth opportunities from among current and new markets as well as current and new products. c. alter a product's characteristic, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales. d. determine the appeal of each SBU or offering and then determine the amount of cash each should receive. e. seek opportunities by finding the optimum balance between marketing efficiencies versus R&D"manufacturing efficiencies.

Q: A technique that managers use to quantify performance measures and growth targets to analyze its strategic business units (SBUs) as though they were a collection of separate investments is referred to as a. investment (ROI) analysis. b. synergy analysis. c. marketing audit. d. diversification analysis. e. business portfolio analysis.

Q: Business portfolio analysis refers to a. a tool that helps a firm search for growth opportunities from among current and new markets as well as current and new products. b. a technique that managers use to subjectively evaluate performance measures and growth targets to analyze their firm's strategic business units (SBUs) as though they were a single expense. c. a technique that managers use to quantify performance measures and growth targets to analyze their firm's strategic business units (SBUs) as though they were a collection of separate investments. d. an analysis that uses percentage points of market share as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm. e. a tool that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D"manufacturing efficiencies.

Q: The Boston Consulting Group (BCG) uses business portfolio analysis to quantify performance measures and growth targets to analyze its clients' strategic business units (SBUs) a. as if each were a separate investment. b. to establish their worth to society at large. c. to determine which would be suited for a SWOT analysis. d. to determine which units are candidates for diversification analysis. e. to determine which units can be divided into smaller, tactical business units (TBUs).

Q: The Boston Consulting Group (BCG) uses __________ to quantify performance measures and growth targets to analyze its clients' SBUs as though they were a collection of separate investments. a. target marketing b. business portfolio analysis c. synergy analysis d. market-product grids e. diversification analysis

Q: Two commonly used techniques to aid mangers with important decisions for setting a direction and allocating resources include __________ and __________ analysis strategies. a. micromarketing; macromarketing b. business portfolio; diversification c. investment; divestment d. dashboards; metrics e. subjective; objective

Q: Although now a part of Sears, Lands' End was primarily known as a catalog retailer. This means that traditional department stores, mass merchandisers, specialty shops, and other catalog retailers are considered to be Lands' End's a. competitors. b. consideration set. c. industry. d. target market. e. stakeholders.

Q: Men's Wearhouse (MW) caters to the man who doesn"t necessarily enjoy shopping. Its stores are located in shopping centers so that customers can get in and out quickly. Additionally, the MW targets the budget-conscious consumer with suit prices ranging from $250 to $500. Earnings rose 23% recently, indicating that the location of its stores and the pricing strategy both are part of MW's a. competitive advantage. b. core values. c. core benefit proposition. d. marketing edge. e. viable mission.

Q: Netflix is a company that rents DVD movies either by mail or streams movies over the Internet. It jumped into an industry where there were many competitors from other local and national video stores. Initially, it established a loyal clientele by providing a service that was not availablereliable and fast shipment. Its delivery system created Netflix's a. viable mission. b. competitive advantage. c. tactical innovation. d. core benefit. e. sales orientation.

Q: A unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation, is referred to as a a. creative advantage. b. marketing edge. c. distinctive competency. d. competitive advantage. e. core benefit.

Q: A competitive advantage refers to a. the cluster of benefits that an organization promises customers to satisfy their needs. b. those characteristics of a product that make it superior to competitive substitutes. c. a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation. d. actions taken by a firm with the sole intent of putting a competitor out of business. e. the cluster of benefits that an organization promises customers to satisfy their needs.

Q: Evergreen Air Center is the world's biggest parking lot for unwanted aircraft. Airlines pay a monthly fee from $750 to $5,000 to mothball their unneeded airplanes at this site. Its location is on 1,600 acres of Arizona desert near Tucson. The Southwest climate of dry, warm air serves as a cheap and effective airplane preservative against rust. Evergreen's location is a(n) a. competency. b. sustainable advantage. c. competitive identity. d. core benefit proposition. e. innovative distinction.

Q: Designing a car is expensive and time-consuming even with the use of computers because until recently, there was no way for all the varied departments that are involved in new car development to work together. Mercedes-Benz created a unique central web-based system that cuts the design and production process by at least two years, thus providing customer value. This is an example of a(n) a. point of difference. b. innovation-oriented mission. c. action program. d. operational goal implementation. e. competency.

Q: Rhone-Poulenc is an international French company that produces and markets a variety of chemicals and pharmaceuticals. Due to the resources it makes available to its scientists and researchers, the company has a number of Nobel Prize winners working in its laboratories. This ability to employ some of the finest minds in the world is an example of a a. point of difference. b. competency. c. sustainable advantage. d. product development strategy. e. human resource strategy.

Q: Competencies include all of the following EXCEPT: a. profit. b. customer service. c. technologies. d. resources. e. employee skills.

Q: An organization's special capabilities, including skills, technology, and resources that distinguish it from other organizations and provide customer value is (are) referred to as a. a marketing edge. b. a sustainable advantage. c. core values. d. points of difference. e. competencies.

Q: A marketing plan refers to a. the long-term decisions made to implement the marketing program and the monitoring of those decisions. b. a technique that marketing managers use to quantify performance measures and growth targets to analyze their firm's strategic business units (SBUs) as though they were a collection of separate investments. c. a road map for the marketing activities of an organization for a specified future time period, such as one year or five years. d. the detailed day-to-day operational decisions essential to the overall success of marketing strategies. e. a road map for the entire organization for a specified future period of time, such as one year or five years.

Q: Ben & Jerry's Marketing Dashboard (Dollar Market Share) A marketing manager for Ben and Jerry's has been provided with a marketing dashboard display shown above. He notices that dollar market share for 2011 was 18.4% and for 2012 it was 20.0%. What simple formula was used to calculate the dollar market share percentages for each of these two years? a. Dollar market share (%) = Ben and Jerry's sales ($) divided by total industry sales ($). b. Dollar market share (%) = Total industry sales ($) divided by Ben and Jerry's sales ($). c. Dollar market share (%) = Total industry sales ($) divided by Ben and Jerry's unit sales (#). d. Dollar market share (%) = Total industry sales ($) divided by Ben and Jerry's net profit ($). e. Dollar market share (%) = Ben and Jerry's sales ($) divided by gross domestic product ($).

Q: Ben & Jerry's Marketing Dashboard (Dollar Sales) A marketing manager for Ben and Jerry's has been provided with a marketing dashboard display shown above. She notices that dollar sales for 2011 were $240 million and in 2012 they were $250 million. What was the formula used to calculate the dollar sales for each of these two years? a. Dollar sales ($) = average price multiplied by quantity manufactured. b. Dollar sales ($) = average cost of goods sold minus fixed costs. c. Dollar sales ($) = average price minus shrinkage rate. d. Dollar sales ($) = average price multiplied by quantity sold. e. Dollar sales ($) = average cost of goods sold minus variable costs.

Q: Figure 1.c According to Figure 1.c above, which state has the highest number of monthly website visits? a. Illinois b. Texas c. California d. Florida e. Washington

Q: Figure 1.b According to Figure 1.b above, which of the following SBUs has the LOWEST YTD revenue compared to its target? a. Hardware b. Electronics c. Software d. Peripherals e. Grand Total

Q: Figure 1.b According to Figure 1.b above, which of the following SBUs has EXCEEDED its YTD (Year to Date) revenue target? a. Peripherals b. Hardware c. Circuitry d. Software e. Grand Total

Q: Figure 1.a According to Figure 1.a above, which of the following is the largest "Website Traffic Source?" a. YouTube b. Direct traffic c. Google d. Facebook e. Twitter

Q: Figure 1. According to Figure 1. above, the image shown is an example of a(n) a. Gantt chart. b. marketing dashboard. c. Pert chart. d. marketing gauge. e. operations spreadsheet.

Q: Data visualization is a. the visual computer display of the essential information related to achieving a marketing objective. b. a road map for the marketing activities of an organization for a specified future time period. c. the process of (1) continuously collecting information about customers' needs, (2) sharing this information across departments, and (3) using it to create marketing metrics. d. a measure of the quantitative value or trend of a marketing activity or result is the visual computer display of the essential information related to achieving a marketing objective. e. the information about an organization's marketing metrics graphically so marketers can quickly (1) spot deviations from plans and (2) take corrective actions.

Q: The primary purpose of a marketing metric is to a. assign qualitative values to quantitative data. b. allow the sharing of information across product lines. c. measure the quantitative value of a marketing activity. d. forecast potential product/service opportunities over a period of five years. e. provide a numerically precise measurement of management judgment for an industry's growth.

Q: With a marketing dashboard, a marketing manager can glance at all of the following EXCEPT: a. the time frame for which the data are presented. b. a graph. c. a table. d. a printed report. e. a map.

Q: A marketing dashboard refers to a. a "report card" prepared by the marketing department regarding its performance in terms of environmental and social responsibility. b. the display of information found on a car's dashboard. c. an "app" that uses a car navigation device metaphor to indicate the specific direction in which a company wishes to grow based on its annual marketing plan. d. information about an organization's marketing metrics graphically so marketers can quickly (1) spot deviations from plans and (2) take corrective actions. e. the visual computer display of the essential information related to achieving a marketing objective.

Q: Organizational strategies vary in two ways, depending on a. (1) the strategy's level in the organization and (2) the offerings an organization provides to its customers. b. (1) the corporate level and (2) the SBU level in the organization. c. whether an offering is (1) a product) or (2) a service. d. whether they are (1) mission statements or (2) core values. e. (1) the organizational culture and (2) its core values.