Final answer:
The President's plan to purchase a new grocery chain is a business strategy for Yummy Food, Inc., which is aimed at achieving company growth and competitive advantage within a five-year period.
Step-by-step explanation:
The President of Yummy Food, Inc's intention to purchase a new grocery chain within 5 years is an example of a business strategy. A business strategy is a company's long-term plan to reach certain objectives. The purchase of another grocery chain may be aimed at achieving goals such as market expansion, increased revenues, and competitive advantage.
In the context of the information provided, franchises like McDonald's illustrate a specific business model where multiple outlets offer standard products or services. This expansion strategy has allowed companies to grow rapidly across various locations. Meanwhile, the relocation of manufacturing, such as the shift of clothing production from the U.S. to China, exemplifies global business strategies aimed at reducing costs.
Another example given is small 'Mom and Pop' firms that continue operating despite not earning economic profits. These businesses might survive due to various non-economic reasons, such as community service, personal satisfaction, or employment for family members.