Chapter 1 quiz BP

The book "The Principles of Scientific Management" _____.

stressed on how organizations could become more efficient through identifying the "one best way" of performing important tasks

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 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.

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

_____ 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

Quattro is a pizza shop that delivers pizzas without any extra charge. It plans to refund the entire amount of the order in case the pizza is not delivered within a period of thirty minutes from the time when the order is placed. After two years it has stopped the policy of refunding any money in case of a delay of more than thirty minutes. The fact that it stopped the policy of refunds in case of a delay of more than thirty minutes is an example of a _____ strategy.

non-realized

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

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 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

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

position

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

realized

Pizzas at Home, a pizza shop, plans to deliver pizzas to households. The delivery would be made without any extra charge. It put its plans to good effect. Soon, Pizzas at Home starts charging a nominal fee for the delivery. Many other pizzerias start following the same strategy and thus, Pizzas at Home is now giving pizzas for free if the pizzas are not delivered within 30 minutes of placing the order. The strategy followed by Pizzas at Home is an example of a(n) _____ strategy.

realized

A ___ 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

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

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 consignments of dressing material from a supplier. The supplier charges them less than what Myshirts.com would have had to pay if it had purchased the material from different sources. As a consequence, the cost of manufacturing each shirt at Myshirts.com is lower than at other manufacturers. This is an example of economies of:

scale

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.