Mastering Strategy

The integral part to a company's strategic plan that describes the process through which a company hopes to earn profits is the:

Business model

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

non-realized

Which of the following statements holds true for the book, Competitive Strategy: Techniques for Analyzing Industries and Competitors? *chapter one*

It offered concepts such as Five Forces Analysis and Generic Strategies that continue to strongly influence how executives choose strategies.

For a small firm, licensing technology to larger firms provides a second income stream and decreases the chances of imitation.

True

Intended strategies are usually described in detail within an organization's strategic plan.

True

Strategic ploys can be especially beneficial when facing much stronger opponents.

True

Strategic management is described as being part science and part ______.

art

There is only one single established method of conceptualizing the concept of strategy.

false

Viewing strategy as position involves only the actions of a single firm.

false

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

_____ 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 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

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

perspective

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

position

An example of strategic ______ is the corporate ownership and management of General Motors brands Chevrolet (entry-level), Buick (mid-level) and Cadillac (upscale) that represent three different price points and markets within the vehicle industry.

positioning

Pizzas at Home, a pizza shop, plans to deliver pizzas to households. Deliveries would be made without any extra charge. 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

Myshirts.com, a company that manufactures shirts, buys large batches 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.