1. Which of the following are lessons from the fall of Howard Johnson's?
A. Failure to provide value and an overemphasis on cost-cutting can drive away customers.
B. A company must develop the appropriate business strategy in order to stay competitive.
C. Reinvesting profits into the organization is fundamental to meeting the demands of a changing market.
D. Past success does not insure future success and can sometimes lead to demise.
E. All of the above are lessons from the fall.
2. Howard Johnson's practiced ____________ integration by using a _______ approach to food preparation.
A. horizontal/commissary
B. production/gourmet
C. vertical/commissary
D. commissary/lateral
E. service/gourmet
3. Howard Johnson's restaurants were classified into which category?
A. casual dining
B. fine dining
C. fast food
D. coffee shop
E. cafeterias
4. This form of business arrangement was made popular, partly due to the success of Howard Johnson's.
A. corporation
B. franchise
C. sole proprietorship
D. partnership
E. joint venture
5. The retail giant Sears has carried out all of the following strategic moves EXCEPT:
A. Acquired Land's End, a clothing retailer.
B. Acquired Kmart, a general merchandise retailer.
C. Moved from a large Sears catalog to a much smaller catalog.
D. Made major shifts in its product mix.
E. Improved store efficiency by eliminating a number of cashiers.