Business Policy Final Exam
_____ are CEOs who lack fame but possess positive reputations.
Hidden Gems
_____ refer to CEOs possessing both fame and strong reputations.
Icons
A pizza shop plans to deliver pizzas to households. The delivery would be made without any extra charge. it hopes to execute this strategy in the suburbs. This is an example of a(n) ______ strategy.
Intended
Which of the following statements holds true for financial measures as a part of the balanced scorecard?
They relate to organizational effectiveness and profits.
A department store consistently keeps low prices, and this strategy helps the store to attract many customers. This is an example of a strategic:
Pattern
Strategy as ______ focuses on the extent to which a firm's actions over time are consistent.
Pattern
The _____ aspect of a performance measuring framework makes sure that the actions of an organization are socially responsible.
People
_____ refers to an approach to assessing performance that emphasizes the concerns of people and the planet in addition to profit.
The triple bottom line
Which of the following statements holds true for learning and growth measures as a part of the balanced scorecard?
They focus on innovation and proceeds with an understanding that strategies change over time.
Which of the following statements holds true for customer measures as a part of the balanced scorecard?
They relate to client attraction, satisfaction, and retention.
Which of the following statements holds true for internal business process measures as a part of the balanced scorecard?
They relate to organizational efficiency.
Who wrote the book, "The World is Flat: A Brief History of the Twenty-First Century"?
Thomas Friedman
An organization's _____ describes what the organization hopes to become in the future.
Vision
Dormer is the only fine dining restaurant in a small town. The opening of a new restaurant is viewed as a threat by some of the employees at Dormer. Others see it as an opportunity for Dormer to strengthen itself by looking out for its weaknesses and ironing them out. This is an example of strategy as:
Perspective
Strategy as ______ refers to how executives interpret the competitive landscape around them.
Perspective
A company that manufactures soaps could not sell its products despite spending a good amount on advertisements. Therefore, management decided to use the concept of direct marketing. They thought of appointing a large number of salespersons who would do door-to-door selling of the product. This is an example of strategic:
Plan
A strategic ______ is a carefully crafted set of steps that a firm intends to follow in order to be successful.
Plan
A supermarket purchases all its vegetables from the local farmers. It also ensures that it purchases the vegetables from farmers who are located closest to the supermarket so that the distance covered in the transport of the vegetables is the minimal. This would reduce pollution. The supermarket is also earning good profits. The fact that the supermarket tries to make a reasonable contribution to lessening pollution reflects the _____ aspect of the triple bottom line framework.
Planet
A coffee chain was losing its customers to its competitors, and wanted to increase its sales. Therefore it started offering complimentary pastries with every cup of coffee, to outwit its competitors. Soon, the company registered an increase in its sales. This is an example of a strategic:
Ploy
A strategic ______ is a specific move designed to outwit or trick competitors.
Ploy
A company that manufactures cars aims to sell them to customers in the premium market segment. This is an example of strategy as:
Position
Strategy as ______ refers to a firm's place in the industry relative to its competitors.
Position
An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The company has the required technology and the required finances to come up with such a car. Therefore the plan seems to be feasible. The fact that the plan is viable and practicable reflects the _____ dimension of a goal.
Realistic
A(n) _____ strategy is the strategy that an organization actually follows.
Realized
Pizzas at Home, a pizza shop, plans to deliver pizzas to households. Deliveries would be made without any extra charge. It put this plan in place. Soon, Pizzas at Home realizes it must start charging a nominal fee for delivery. Many other pizzerias start following the same strategy. Pizzas at Home then starts offering free pizzas if they are not delivered within 30 minutes of the order placement. The strategy followed by Pizzas at Home is an example of a(n) _____ strategy.
Realized
A bakery generally makes a sale of $4,000 every month. But during Christmas time it made a sale of $6,000. That is, it registered a 50% increase in its sales during Christmas. During the same time other bakeries registered sales in excess of $10,000. The fact that other bakeries registered sales in excess of $10,000 can be used a yardstick to measure the performance of this particular bakery. This is referred to as the performance _____.
Referent
A performance _____ is a benchmark used to make sense of an organization's standing along a performance measure.
Referent
A(n) _____ fee refers to the percentage of franchisees' revenues paid to an organization which has granted the right to use its brand name, products, and processes.
Royalty
A _____ strategy refers to the parts of the intended strategy that are abandoned.
Non-realized
Quattro is a pizza shop that delivers pizzas without any extra charge. It also refunded the entire amount of the order when the pizza was not delivered within 30 minutes from the order placement. After two years it stopped this policy, but it still delivers pizzas without any extra charge. The fact that it stopped the policy of refunds in case of a delay of more than 30 minutes is an example of a _____ strategy.
Non-realized
_____ refers to how well a company is doing reaching its vision, mission, and goals.
Organizational performance
Entrepreneurial _____ is a term that refers to the processes, practices, and decision-making styles of organizations that act entrepreneurially.
Orientation
A supermarket purchases all its vegetables from the local farmers. It also ensures that it purchases the vegetables from farmers who are located closest to the supermarket so that the distance covered in the transport of the vegetables is the minimal. This would reduce pollution. The supermarket is also earning good profits. The fact that the supermarket purchases all its vegetables from the local farmers and demonstrates its social responsibility reflects the _____ aspect of the triple bottom line framework.
People
Which of the following statements holds true for the "time-bound" aspect of a goal?
The goal is achieved through the creation of deadlines.
Which of the following statements holds true for the "specific" aspect of a goal?
The goal is explicit rather than vague.
Which of the following statements holds true for the "aggressive" aspect of a goal?
The goal presents a significant challenge to the organization.
Which of the following statements holds true for the "measurable" aspect of a goal?
The goal that is achieved is quantifiable.
An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The fact that the company has a set target date to complete the task reflects the _____ dimension of a goal.
Time-bound
A steel manufacturing company wants to be among the fortune 500 companies in the next one year. This is an example of the _____ of the company.
Vision
Skyway manufactures fighter jets. It aims to be the top aircraft manufacturing company in the world. This is an example of the _____ of the company.
Vision
Quattro is a pizza shop that delivers pizzas without any extra charge. It also refunded the entire amount of the order when the pizza was not delivered within 30 minutes from the order placement. After two years it stopped this policy, but it still delivers pizzas without any extra charge. The fact that it continues to deliver pizzas to households without any extra charge is an example of a _____ strategy.
Deliberate
A company that sells dairy products purchases large quantities of milk from the local dairy farms. Since the quantity purchased is very high, the company is able to demand and get price concessions from the dairy farms. The company prices its dairy products at a lower rate than its competitors. The greater quantity of products sold compensates for the low price. This is an example of:
Economies of scale
Which of the following are created when the costs of offering goods and services decreases as a firm is able to sell more items?
Economies of scale
Which of the following statements holds true for the book "Strategy and Structure: Chapters in the History of the Industrial Enterprise"?
It stressed on how strategy and organizational structure need to be consistent with each other in order to ensure strong firm performance.
Marty's, a clothing company, has a number of outlets which are owned and managed by private individuals. These outlets are allowed to use the brand name and products of Marty's after paying a fee to the company. They also pay a part of their revenues to the clothing line. The part of the revenues paid by the outlets to Marty's is referred to as:
Royalty fee
Which of the following statements holds true for the "realistic" aspect of a goal?
The achievement of the goal is feasible.
_____ refers to an approach to assessing performance that targets managers' attention on four areas: financial, customer, internal business process, and learning and growth.
The balanced scorecard
A take-out restaurant specializing in pizzas completes the order for a single pizza in 15 minutes. The employees of the restaurant are trained to deliver orders within the specified period. This is an example of a(n) _____ measure used to assess organizational performance.
internal business process
The management of a football club regularly encourages and funds its coaches and trainers to take courses on sports' science. The management believes that the application of scientific principles and techniques would help its players to improve their performance on the field. This is an example of a(n) _____ measure used to assess organizational performance.
learning and growth
The _____ aspect of a performance measuring framework makes sure that organizations act in a way that promotes environmental sustainability.
planet
The book "The Principles of Scientific Management" _____.
stressed how organizations could become more efficient through identifying the "one best way" of performing important tasks
An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The task presents a challenge to the engineering skills of the organization. The fact that the task presents a challenge to the organization reflects the _____ dimension of a goal.
Aggressive
Which of the following statements holds true for the cost leadership strategy?
Cost leaders, in general, emphasize on efficiency.
A company introduces a new helmet for bikers. The company prices the helmets at a price which is much lower than that of other helmets offered in the market. This enables the company to attract a lot of customers. This is an example of a(n) _____ strategy.
Cost leadership
A firm following a(n) _____ strategy offers products or services with acceptable quality and features to a broad set of customers at a low price.
Cost leadership
Mike opens a new gym in his hometown. He charges a lower membership and monthly fees than what is offered by the other four gyms in town. This results in the migration of customers from the other gyms to Mike's gym. This enables the company to attract a lot of customers. This is an example of a(n) _____ strategy.
Cost leadership
A law firm wants to increase its client strength. Therefore it has promised to offer free service to senior citizens. This has helped the organization gain new clients, as friends and relatives of the senior citizens having started using this law firm's services. Good legal counseling has helped it to retain its clients. This is an example of _____ measures used to assess organizational performance.
Customer
A _____ strategy is the parts of the intended strategy that an organization continues to pursue over time.
Deliberate
A national grocery chain sets up a store in a small town. It sources most of its produce from the local farmers. Since it sources the produce in bulk, it demands discounts from the suppliers. The store passes some of these savings to the customers in the form of low prices for the products. The price is lower than what is offered by the local grocery stores. The large quantities of products sold compensates for the lower price. This is an example of:
Economies of scale.
A(n) ______ strategy is an unplanned strategy that arises in response to unexpected opportunities and challenges.
Emergent
Roomz, a mid-range hotel, used to provide only food and accommodation facilities. It soon realized that most of its customers are foreign tourists who constantly ask for directions and advice on places to visit. The hotel then decided to start a travel desk which would help tourists select and visit places of historical and cultural significance. This is an example of a(n) _____ strategy.
Emergent
The stock price of an oil and natural gas exploration concern is $100 per share. The value of the share is increasing by the day. This is an example of a(n) _____ measure used to assess organizational performance.
Financial
A(n) ______ fee refers to the upfront fee paid by an organization which gets the right to use another organization's brand name, products, and processes.
Franchise
Marty's, a clothing company, has a number of outlets that are owned and managed by private individuals. These outlets are allowed to use the brand name and products of Marty's after paying a fee to the company. They also pay a part of their revenues to Marty's. The upfront payment these outlets make to Marty's for using the Marty's brand name is referred to as a(n):
Franchise fee
An organization which gets the right to use another organization's brand name, products, and processes is referred to as a _____.
Franchisee
Marty's, a clothing company, has a number of outlets which are owned and managed by private individuals. These outlets are allowed to use the brand name and products of Marty's after paying a fee to the company. They also pay a part of their revenues to Marty's. Each of these outlets is a:
Franchisee
A clothing line company has a number of outlets which are owned and managed by private individuals. These outlets are allowed to use the brand name and products of the clothing line after paying a fee to the clothing line company. They also pay a part of their revenue to the clothing line. This is an example of:
Franchising
_____ involves an organization granting the right to use its brand name, products, and processes to other organizations in exchange for an upfront payment and a percentage of revenues generated by the other organizations.
Franchising
A _____ is an organization which grants the right to use its brand name, products, and processes to other organizations.
Franchisor
Marty's, a clothing company, has a number of outlets that are owned and managed by private individuals. These outlets are allowed to use the brand name and products of the clothing line after paying a fee to Marty's. They also pay a part of their revenues to Marty's. Marty's is an example of a:
Franchisor
_____ published a book titled The Principles of Scientific Management.
Frederick W. Taylor
Jeff wants to open a new coffee shop in town. There are already two other coffee shops in his town. In order to attract more customers to his new shop, James decides to charge less price for each cup of coffee than what is charged by the other two coffee shops. This is an example of a(n) _____ strategy.
Generic
A(n) _____ is a general way of positioning a firm within an industry.
Generic Strategy
An organization's _____ describes the narrower aims that organizations pursue in an effort to serve their visions and missions.
Goal
A(n) ______ strategy is the strategy that an organization hopes to execute.
Intended
Which of the following statements holds true for the book "The World is Flat: A Brief History of the Twenty-First Century"?
It argued that many of the advantages that firms in developed countries like the United States, Japan, and Great Britain take for granted are disappearing.
Which of the following statements holds true for the "capstone" course recommended by The Ford Foundation?
It emphasized student's critical thinking skills in general and the notion that multiple ways of addressing a problem could be equally successful in particular.
Which of the following is an advantage of cost leadership?
It makes a firm following this strategy well positioned to withstand price competition from rivals.
A company introduces a new product in the market. The company decides that the only way it could attract customers is to keep the price of the product lower than what its competitors charge. What advantage would the company enjoy because of the strategy it proposes to follow?
It makes them well positioned to withstand price competition from rivals.
Which of the following statements holds true for the book, "Competitive Strategy: Techniques for Analyzing Industries and Competitors"?
It offered concepts such as Five Forces Analysis and Generic Strategies that continue to strongly influence how executives choose strategies.
A charitable organization provides education to poor children. It aims at providing education to every child who cannot afford to pay for his or her own education. This is an example of the _____ of the organization.
Mission
An organization's _____ describes the reasons for an organization's existence.
Mission
Which of the following statements holds true for the term "proactiveness" as a dimension of entrepreneurial orientation?
It refers to the tendency to anticipate and act on future needs.
Which of the following statements holds true for the term "risk-taking" as a dimension of entrepreneurial orientation?
It refers to the tendency to engage in bold rather than cautious actions.
Which of the following statements holds true for the term "competitive aggressiveness" as a dimension of entrepreneurial orientation?
It refers to the tendency to intensely and directly challenge competitors.
Which of the following statements holds true for the term "innovativeness" as a dimension of entrepreneurial orientation?
It refers to the tendency to pursue creativity and experimentation.
Which of the following statements holds true for the term "autonomy" as a dimension of entrepreneurial orientation?
It tells whether an individual or team of individuals within an organization has the freedom to develop an entrepreneurial idea and then see it through to completion.
An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The progress of the project can be easily calculated and assessed. The fact that this project can be easily assessed reflects the _____ dimension of a goal.
Measurable
A bakery generally makes a sale of $4,000 every month. But during Christmas time it made a sale of $6,000. That is, it registered an increase in its sales. The sales factor is a performance _____ to judge organizational performance.
Measure
Performance _____ refers to a metric such as profits, stock price, and sales along which organizations can be gauged.
Measure
Economies of ______ refer to a cost advantage that is created when a firm can produce a good or service at a lower per unit price due to producing the good or service in large quantities.
Scale
Myshirts.com, a company that manufactures shirts, buys large batches of dressing material from a supplier. The supplier charges them less than what my shirts.com would have had to pay if it had purchased material from different sources. As a consequence, the cost of manufacturing each shirt at my shirts.com is lower than at other manufacturers. This is an example of economies of:
Scale
_____ refer to CEOs displaying high levels of relative fame but low levels of reputation.
Scoundrels
A viable business model requires that a firm:
Sell goods or services for more than it costs the firm to create and distribute those goods.
_____ refer to CEOs who are overlooked and ignored sources of harm to their firms.
Silent Killers
An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. The fact that the company has an explicit goal reflects the _____ dimension of a goal.
Specific
______ examines how actions and events involving top executives, firms, and industries influence a firm's success or failure.
Strategic management
Alfred Chandler's book focused on:
Strategy and structure
A company introduces a new product in the market. The company decides that the only way it could attract customers is to keep the price of the product lower than what its competitors offer in the market. Which of the statements would hold true for such a strategy?
The company emphasizes on efficiency.
Which two pivotal events that took place in 1980 led to the establishment of strategic management as a field of study?
The creation of the Strategic Management Journal and the publication of Competitive Strategy: Techniques for Analyzing Industries and Competitors
