Strategic Management Chapter 1

41. 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.

13. Strategy as _____ refers to how executives interpret the competitive landscape around them.

Perspective

43. Who wrote the book, "The World is Flat: A Brief History of the Twenty-First Century"?

Thomas Friedman

21. A _____ strategy is the parts of the intended strategy that an organization continues to pursue over time.

Deliberate

22. 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. a. make over

Deliberate

17. A(n) _____ strategy is an unplanned strategy that arises in response to unexpected opportunities and challenges.

Emergent

18. 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

33. 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

31. An organization which gets the right to use another organization's brand name, products, and processes is referred to as a _____.

Franchisee

32. 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

25. _____ 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

28. 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

29. A _____ is an organization which grants the right to use its brand name, products, and processes to other organizations.

Franchisor

30. 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

26. _____ published a book titled The Principles of Scientific Management.

Frederick W. Taylor

15. A(n) _____ strategy is the strategy that an organization hopes to execute.

Intended

42. 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.

40. 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.

23. A _____ strategy refers to the parts of the intended strategy that are abandoned.

Non-realized

24. 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

11. Strategy as _____ focuses on the extent to which a firm's actions over time are consistent.

Pattern

12.. 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

14. 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: a. ploy.

Perspective

7. A strategic _____ is a specific move designed to outwit or trick competitors.

Ploy

8. 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

10. A company that manufactures cars aims to sell them to customers in the premium market segment. This is an example of strategy as:

Position

9. Strategy as _____ refers to a firm's place in the industry relative to its competitors.

Position

19. A(n) _____ strategy is the strategy that an organization actually follows.

Realized

20. 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.its plans to good effect. 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

35. 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

36. 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

5. 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

6. Myshirts.com, a company that manufactures shirts, buys large batches of dressing material from a supplier. The

Scale

1. _____ examines how actions and events involving top executives, firms, and industries influence a firm's success or failure.

Strategic management

37. Alfred Chandler's book focused on:

Strategy and Structure

39. 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

38. Which of the following statements holds true for the book "Strategy and Structure: Chapters in the History of the Industrial Enterprise"?

a. It stressed on how strategy and organizational structure need to be consistent with each other in order to ensure strong firm performance.

34. 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):

c. franchise fee.

3. A strategic _____ is a carefully crafted set of steps that a firm intends to follow in order to be successful.

plan

4. 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 a strategic:

plan

2. 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.

16. 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