Chapter 1 quiz

A is the strategy that an organization actually follows.

realized strategy

The strategic management process begins with an understanding of strategy and _________.

performance

The Hebrews leaving Egypt, the Greek soldiers inside of the Trojan Horse, and King Arthur's famous round table are all examples of ________.

strategy in ancient times

The book The Principles of Scientific Management _____.

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

Strategic management is a process that requires the ability to manage .

change

What is an intended strategy?

An intended strategy is, in the most basic context, the strategy that an organization is planning to utilize.

Most strategic ploys are illegal. (T/F)

F

The demands of strategic management are simple enough to be handled alone by the chief executive officer. (T/F)

F

There is only one single established method of conceptualizing the concept of strategy. (T/F)

F

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.

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

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

Explain how strategy in ancient times can provide lessons to businesses today.

Looking back on the strategies of the past allows for businesses today to learn some useful as well as non-useful tactics. There are well documented strategies that were utilized by ancient organizations that proved to be successful and are still in use today. An example may be the development of trade, which eventually evolved into capitalism and monetary compensation.

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

T

Intended strategies are usually described in detail within an organization's strategic plan. (T/F)

T

The study of strategic management involves knowing how and when to apply creative thinking. (T/F)

T

Explain the concept of strategy as perspective.

The concept of "strategy" is commonly thought of as a tool, something that you pull out to improve performance or aid a transition in a business. However, strategy as a perspective considers a deeper, more integrated idea. Including strategies in the structure of an organization can lead to a new and innovative perspective company-wide.

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

art

Quattro is a pizza shop that delivers pizzas without any extra charge. It also refunds 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

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

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

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

position

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

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

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

strategic management