Exam 1: Mastering Strategy: Art and Science

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

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

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:

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:

The demands of strategic management are simple enough to be handled alone by the chief executive officer.

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.

What is the "capstone" course as recommended by The Ford Foundation?

Alfred Chandler's book focused on:

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.

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 stopped the policy of refunds in case of a delay of more than 30 minutes is an example of a _____ strategy.

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

What is the name of Sun Tzu's best-known work that is still studied by business and military leaders today?

Deciding what a firm is not going to do is just as important to strategy as deciding what it is going to do.

Unexpected twists and turns in the external as well as the internal environment place limits on the value of strategic planning.

Firms must evaluate their own resources to understand how they might react to changes in the environment.

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

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:

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):

What is an intended strategy?

One important aspect of a business model is providing customers with a good or service more cheaply than they can create it themselves.