Strategic Management
Solved Exam Questions
Course Introduction
Strategic Management focuses on the formulation, implementation, and evaluation of business strategies to achieve organizational goals and maintain a competitive advantage. Students will learn how to analyze internal and external environments, assess resources and capabilities, and navigate complex business landscapes. The course covers key concepts such as vision and mission development, competitive and corporate strategies, industry analysis, and strategic decision-making. Through case studies and real-world examples, students develop critical thinking and problem-solving skills to apply strategic frameworks in diverse business contexts.
Recommended Textbook
Franchising 4th Edition by Richard J. Judd
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22 Chapters
209 Verified Questions
209 Flashcards
Source URL: https://quizplus.com/study-set/1324
Page 2
Chapter 1: Franchising: History and Overview
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/26381
Sample Questions
Q1) The approach to be used by a franchisee in providing the franchisor's products or services to the customer is called:
A)business licensing
B)free-form business opportunity
C)business format franchising
D)an open business opportunity
Answer: C
Q2) Which of the following industries provides the earliest and lasting example of franchising in the U.S.economy?
A)beverage industry
B)retail fast-food industry
C)automotive industry
D)steel industry
Answer: C
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Chapter 2: Recognizing Franchising Opportunities
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Business situations that are appropriate to consider when looking for growth through franchising include all but which one of the following?
A)firms in market niches that have broad product appeal and known consumer acceptance as long as the trends support long-term market viability and growth.
B)firms in stable and growing industries,where the industry itself is unburdened by significant regulation.
C)firms that have complex internal systems to execute,that draw from a limited pool of qualified employees,or require significant amounts for training to assure franchisee competence in delivery of the system's products or services.
D)firms whose operating margins allow for franchisee fees to be charged and still leave an adequate r.o.i.for both franchisor and franchisee.
Answer: C
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Chapter 3: The Franchisor Business Plan
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Which of the following is often referred to as the franchisee's "bible"?
A)the franchisor's business plan
B)the franchising agreement or contract
C)the PERT chart
D)the operations manual
Answer: D
Q2) What are the four main areas of taxation one must consider when reporting about a franchise's activity?
A)sales taxes,business taxes,property taxes,employee taxes
B)sales taxes,property taxes,employee taxes,franchisor taxes
C)sales taxes,property taxes,employee taxes,franchisee taxes
D)sales taxes,property taxes,franchisor taxes,franchisee taxes
Answer: A
Q3) A realistic estimate for the cost of legal requirements to begin a franchising system could be:
A)$5,000
B)$10,000
C)$20,000
D)$50,000
Answer: C
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Chapter 4: Franchisor Management, Organization and Administrative Policy
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) According to Jim Peterson,it is important to know how customers honestly perceive the quality of the product or service offered by the franchise system.The product quality is within the perception of the customer and is greatly influenced by the franchise system's server.The attitude of the customer is made up of three key factors.Which one of the options below is not one of these critical customer perception factors?
A)70%--the way the customer is looked at;
B)29%--based on the tone of the server's voice;
C)1%--exactly what the employee (server)says;or
D)the server's intent to win an argument.
Q2) There are six major organizational development tasks required of a franchisor to develop from a single unit firm into a growing franchise system.Which one of the following tasks is not one of these six major organizational development tasks?
A)Identify and define the market niche for the franchise firm
B)Develop products/services through the prototype unit
C)Acquire resources,solicit and train franchisees
D)Develop strategic plans for the franchise firm
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Chapter 5: The Franchise Marketing Process
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11 Verified Questions
11 Flashcards
Source URL: https://quizplus.com/quiz/26385
Sample Questions
Q1) Which one of the following is Not one of the "Four P's" in marketing?
A)product
B)process
C)price
D)promotion
Q2) Identifying one or more target markets and creating a marketing mix that has focus upon a customer grouping's needs is the definition of
A)marketing
B)marketing mix
C)marketing strategy
D)the businesses image
Q3) There are four generic categories to classify goods and services.Which one below fits the description of----goods or services that are frequently purchased,usually are low-to- competitively priced,and staples,emergency or impulse buys.
A)convenience goods or services
B)homogeneous shopping goods or services
C)heterogeneous shopping goods or services
D)specialty products or services.
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7
Chapter 6: Selling Franchises and Marketing Research
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) What's the difference between the sales package and sales playbook?
A)the sales playbook consists of three parts,and the sales package consists of five parts.
B)the sales brochure and ufoc are part of the sales playbook but not the sales package.
C)the mission statement and opening benefits are part of the sales package but not the sales playbook.
D)the sales package is used by the franchisor to give a prospective franchisee a good sales presentation;the sales playbook helps the salesperson sell to customers.
Q2) Which of the following is true about the serious prospective franchisee?
A)he/she is not looking to start the franchise as soon as possible.
B)he/she is very straightforward about his/her interest,availability,and financial resources.
C)he/she is cautious about disclosing his/her intentions.
D)his/her time frame generally increases as his/her interest level increases.
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8
Chapter 7: Co-Branding
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5 Verified Questions
5 Flashcards
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Sample Questions
Q1) What factor generally determines which co-branding method is chosen by a franchisor?
A)expertise
B)personal preference
C)profit potential
D)none of these is a determining factor.
Q2) Why might co-branding be beneficial for a mature market?
A)mature markets provide little opportunity for sales and profit growth through traditional outlets.
B)co-branding represents a new approach that can revitalize mature markets.
C)a new and improved,co-branded unit has the potential to bring in extra cash flow that can result in greater overall new profits for the franchise system.
D)all of these are reasons it could be beneficial.
Q3) What crucial element is necessary for the success of co-branding partners?
A)sufficient time to integrate the brands
B)natural synergy between the brands
C)distinctive differences between the brands
D)a strong personal relationship between the franchisors
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9
Chapter 8: Managing the Franchisors Operations Process
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Part of the motivation for a franchisor to develop a franchise system is to ensure consistency throughout the business units in the system.Which type of franchisor manual is specifically focused to this purpose?
A)pre-opening manual
B)site inspection manual
C)record keeping manual
D)communications manual
Q2) Which type of franchisor program offered to franchisees is based on the general notion that new franchisees have little or no specific business knowledge about the franchise system?
A)marketing manual
B)reporting manual (including appropriate financial forms)
C)training manual
D)operating (or operations)manual
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Chapter 9: Location and Site Selection
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/26389
Sample Questions
Q1) One of the more interesting ratios for franchising is the Location Selection Ratio or Sales/Costs ratio.Which of the following ratios would be ranked the best?
A)¼
B)½
C)1
D)all of the above are desirable ratios
Q2) Which of the following sequences of the three-step location model is correct?
A)BPI,DMAs,Individual Site Analysis
B)DMAs,Individual Site Analysis,BPI
C)DMAs,BPI,Individual Site Analysis
D)Individual Site Analysis,DMAs,BPI
Q3) Which philosophy of expansion is,as a rule,the best method for franchisors?
A)the shotgun approach
B)the rifle shot approach
C)seeding
D)whichever method the franchisor deems appropriate for a their particular business
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11
Chapter 10: Accounting and Financial Statements:
Presentation and Uses
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Sample Questions
Q1) What is the purpose of ratio analyses of financial statements?
A)to gauge the franchise's profit potential
B)to asses the franchisor or franchisee's management skills
C)to determine the success of the franchise in meeting its overall objectives
D)to measure the exact worth of a franchise
Q2) Which of the following types of financial ratios measures how well a franchise meets its short-term debts or financial obligations?
A)liquidity
B)profitability
C)activity
D)coverage/leverage
Q3) Which of the following types of financial ratios measures the ability of the franchise organization to turn sales into profits?
A)activity
B)market
C)profitability
D)coverage/leverage
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Page 12
Chapter 11: Financial Management and Fiscal Planning
Tools and Techniques
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/26391
Sample Questions
Q1) To fund a franchise business,most franchisee use:
A)a single source of funding
B)multiple sources of funding
C)already have sufficient liquidity to fund the startup and need no additional funding
D)none of the above
Q2) The cash flow statement is used to plan:
A)liquidity for the firm
B)profitability for the firm
C)anticipated costs of operation
D)asset utilization for the business
Q3) Which one of the following is Not a common method of borrowing funds in the short-term when considering the rate of interest to be paid:
A)percentage-of-sales method
B)simple
C)add-on
D)discount
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13
Chapter 12: Information Systems in Franchising
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10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/26392
Sample Questions
Q1) Which of the following activities at the franchisor's headquarters office should be the center of attention?
A)marketing and advertising to prospective franchisees for franchise development
B)managing people who perform franchise support and franchise development
C)helping and supporting business units
D)dealing with financial issues such as accounting and finances
Q2) Why might it be a good idea for a franchisor to investigate several ASP vendors before choosing one?
A)some ASP vendors are riskier than others.
B)the franchisor is looking for the ASP with the highest value and the lowest cost.
C)the franchisor must be sure the data of the franchise is well-protected.
D)all of the above.
Q3) The information contained in the daily business intelligence reports becomes the foundation upon which a franchise system builds what?
A)experience
B)working knowledge profiles
C)reliability
D)target markets
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14
Chapter 13: Franchise Legal Documents
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5 Verified Questions
5 Flashcards
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Sample Questions
Q1) What sort of disclosure document is required by the FTC Rule?
A)the format prescribed by the FTC
B)the UFOC,or uniform franchise offering circular
C)both of the above formats
D)one of the above formats
Q2) Why do most franchisors use the UFOC format for disclosure?
A)not all states accept the FTC rule format.
B)the UFOC covers more ground than the FTC rule format.
C)the FTC rule format covers more ground and is more complicated to use.
D)the UFOC is accepted in more registration states than the FTC rule format.
Q3) When must the disclosure document be delivered,according to the FTC Rule?
A)at the first personal,face-to-face meeting
B)10 business days before the franchisee executes a binding legal document or makes any payment
C)whichever of these comes first
D)whenever the franchisor deems it appropriate
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Five: the Franchisee
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Sample Questions
Q1) When do copyright laws go into effect for a written work?
A)when the work is published
B)when the work is written
C)when the work is registered
D)when a copyright notice is attached to it
Q2) What element of the Sherman Act does the Rule of Reason help the courts enforce?
A)prohibition of tying arrangements
B)prohibition of unfair competition
C)prohibition of any contract which restrains trade
D)prohibition of contracts and conspiracies that unreasonably restrain trade
Q3) Which of the following is a protectable property right granted by the government that protects an invention,new device,or innovation?
A)patent
B)copyright
C)trade secret
D)trademark
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16
Chapter 15: Investigating Franchise Opportunities
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Rule 436 is a rule issued by ( )provides franchisors and franchisees with certain legal rights under federal law.
A)Interstate Commerce Commission
B)Department of Commerce
C)Federal Trade Commission
D)U.S.Small Business Administration
Q2) Popular franchise directories,which may be the primary first step in information collection for prospective franchisees include all but one of the following.Which should not be included?
A)the Franchise Handbook
B)the New York Times
C)the Executive Guide to Franchise Opportunities
D)the Franchise Opportunities Guide
Q3) About ( )percent of franchise systems provide some form of earnings claims for franchisees?
A)5 percent
B)about 25 percent
C)about 40 percent
D)about 70 percent
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Page 17
Chapter 16: Financing Your Franchised Business
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Typically,franchise fees
A)remain the same and do not vary,depending on the number of franchised units planned for in the initial agreement between franchisor and franchisee
B)may differ within the same franchise system,depending on the number of franchised units to be opened
C)are set very high to discourage most and only attract the most financially capable D)most often the greatest financial commitment required of a potential franchisee
Q2) When its time to sell or retire,most franchisors will cooperate with the franchisee intent to exit
A)but are not usually interested in helping the franchisee find a buyer for the business
B)other franchisees are not likely to among those persons with intent or interest to purchase another franchise unit
C)and will stand aside to allow the franchisee to sell to whomever is found as a buyer of the business
D)none of the above is an accurate statement
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18
Chapter 17: Marketing the Franchisee Business
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8 Verified Questions
8 Flashcards
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Sample Questions
Q1) Marketing research in franchising is done primarily by A)the franchisor
B)the independent franchisees
C)both franchisor and franchisee collaboratively
D)contracted outside survey research firms.
Q2) In making an advertising decision,a franchisor or franchisee should have the primary objectives of advertising address each of the following issues,except:
A)to inform potential purchasers
B)to discourage competitors
C)to persuade potential customers to buy from your firm
D)to remind customers of your product/service availability
Q3) Casual dining places have,generally,targeted which group as their primary customer group?
A)children between ages 2-10
B)senior citizens with disabilities
C)college freshmen
D)adults of all ages
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Page 19
Chapter 18: Managing the Franchisee Business Stage Six:
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Sample Questions
Q1) As stated in the text,all of these items are among the ten most common legal problems of franchisees except:
A)sharing advertising costs
B)minimum performance requirements
C)fees for support services
D)correct information being provided to the IRS
Q2) Which of the following is not typically a franchisee "right" granted in the written franchising agreement?
A)right to transfer or sell the business
B)right to relocate within a designated sales area
C)right to develop and sell new products or services
D)fair and equitable performance standards
Q3) Which of the following is one of the four principles of coordination that promote effective work groups?
A)coordination is best accomplished through electronic means such as e-mail,electronic calendars,etc.
B)coordination must address all factors within any phase of any endeavor
C)coordination should occur at most once a week
D)coordination is only necessary in the beginning and at the end of a project
Page 20
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Chapter 19: The Franchising Relationship
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Sample Questions
Q1) What can a franchisor do to enhance awareness in the franchisor-franchisee relationship?
A)encourage the formation of local or regional clubs for franchisees
B)offer awards or performance incentives to successful franchisees
C)take periodic surveys to monitor franchisees' feelings and concerns
D)all of the above
Q2) The decline of industries such as the US automotive industry and the consumer electronics industry is evidence that:
A)the abundance of competition is harmful to franchising in the US.
B)products or services of merely average quality lose customer confidence and sales.
C)customers do not like having such a wide range of products and services to choose from.
D)the loss of business is usually the fault of the franchisee,not the franchisor.
Q3) Which of the following best describes the franchisor-franchisee relationship?
A)steering-power/pedal-power
B)superior/subordinate
C)partnership
D)A or C but not B
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21
Chapter 20: Franchiser Support Services Stage Seven: Current Issues in Franchising
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Sample Questions
Q1) What is the greatest support for a franchisee?
A)a good training manual
B)lots of start-up capital
C)the opportunity for success
D)frequent contact with field representatives
Q2) What is the field representative's primary task?
A)to conduct surveys of franchisees
B)to observe franchisees' interaction with customers
C)to gauge profitability
D)to help maintain a good franchisor-franchisee relationship
Q3) Which of the following is NOT one of the building blocks of customer service?
A)improvise!
B)be willing to change!
C)listen to customers!
D)provide friendly services!
Q4) What is required of the person in charge of a franchisee training program?
A)experience as a franchisor
B)understanding of the needs of the particular franchised business
C)knowledge about the training process
D)both b and c
To
Chapter 21: Social Responsibility and Business Ethics
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Sample Questions
Q1) Utilitarianism:
A)focuses on the decision maker achieving maximum personal benefits
B)attempts to remove emotion and self-interests from decision-making
C)is concerned with providing the greatest good for the greatest number of people
D)both b and c above
Q2) Which of the following is not an appropriate question to identify ethical factors in a decision-making situation?
A)is the action being considered illegal?
B)have all points of view been considered?
C)what are the short-term and long-term consequences of the decision and action?
D)how will I feel if a story about this action appears on the front page of the local newspaper available to the general public?
Q3) Which of the following illustrates the highest level of social responsibility?
A)safe working conditions for employees
B)support of social and cultural activities
C)fair pricing of products/services
D)providing employees opportunities for growth and development of skills
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Chapter 22: International Franchising
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10 Verified Questions
10 Flashcards
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Sample Questions
Q1) Probably the main hindrance with expanding into foreign markets is:
A)high costs
B)government red tape
C)labor supply
D)lack of master franchisees
Q2) The most common and best way of starting a franchise in a foreign country is through?
A)licensing
B)joint venture
C)direct investment
D)master franchisee
Q3) One of the very few companies that has been successful in using the exact same product world-wide is:
A)Coca-Cola
B)McDonald's
C)Dairy Queen
D)Marriott Hotels
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Page 24