Business Administration Capstone Pre-Test
Questions
Course Introduction
The Business Administration Capstone course is designed to integrate and apply the knowledge and skills acquired throughout the business administration curriculum. Through a combination of case studies, simulations, and real-world projects, students analyze complex business problems, develop strategic solutions, and enhance their decision-making abilities. The course emphasizes teamwork, critical thinking, ethical considerations, and effective communication while requiring students to synthesize concepts from finance, marketing, management, and operations. By the end of the capstone experience, students are prepared to transition from academic study to professional practice in diverse business environments.
Recommended Textbook
The Management of Strategy Concepts and Cases International 10th Edition by Hitt
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13 Chapters
2022 Verified Questions
2022 Flashcards
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Chapter 1: Strategic Management and Strategic Competitiveness
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135 Verified Questions
135 Flashcards
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Sample Questions
Q1) The CEO of Twin Spires, Inc., is emotionally and intellectually committed to using the resources of the firm to serve the needs of the natural gardening community by providing rare and native plants to individuals and nurseries around the United States. This commitment has carried the CEO through long periods of below average returns on investment. The perspective of the CEO of Twin Spires is consistent with the assumptions of the industrial organizational (I/O) model.
A)True
B)False
Answer: False
Q2) New markets created by iPods, PDAs, and WiFi are a result of A) disruptive technologies.
B) global competition.
C) knowledge intensity.
D) hypercompetition.
Answer: A
Q3) Resources are considered rare when they have no structural equivalent.
A)True
B)False
Answer: False
Page 3
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Chapter 2: The External Environment: Opportunities,
Threats, Industry Competition, and Competitor Analysis
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Sample Questions
Q1) An analysis of society's attitudes and values would be conducted when studying the ____ segment of the general environment.
A) sociocultural
B) global
C) demographic
D) economic Answer: A
Q2) Age structure, geographic distribution, income distribution, interest rates, and process innovations are all elements of concern when studying the demographic segment of the general environment.
A)True
B)False Answer: False
Q3) Strategic groups are firms in different industries following the same or similar strategies.
A)True
B)False Answer: False
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Advantages
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153 Flashcards
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Sample Questions
Q1) (Refer to Case Scenario 1) Why might an outsourcing arrangement with EdFex be attractive to Heartsong?
Answer: The best answers will start by observing that the scenario suggests that Heartsong needs to grow if it is going to continue being competitive and successful. However, Heartsong is also capital constrained and an outsourcing arrangement with EdFex allows it to more efficiently manage this significant aspect of its cost base (inventory and delivery). This outsourcing solution would be ideal if it would allow Heartsong to maintain a centralized warehouse with heart valve inventory in major population centers, instead of its present practice of carrying inventory on the shelves of each of its hospital customers. As a result, Heartsong could grow its market presence, while more efficiently managing the need to have heart valves available on short notice.
Q2) ____ is/are the source of a firm's ____, which is/are the source of the firm's ____.
A) Resources, capabilities, core competencies
B) Capabilities, resources, core competencies
C) Capabilities, resources, above average returns
D) Core competencies, resources, competitive advantage
Answer: A
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Chapter 4: Business Level Strategy
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Sample Questions
Q1) All of the following are considered generic business-level strategies EXCEPT
A) product diversification.
B) cost leadership.
C) focused differentiation.
D) integrated cost leadership/differentiation.
Q2) Wholesome Pet Food has successfully specialized for 20 years in high-quality pet food made from all-natural ingredients and organically-raised lamb. This brand has a strong following and is recommended by veterinarians who practice in affluent neighborhoods. Wholesome's main supplier of lamb has announced that the price for lamb will be 15 percent higher next year.
A) Wholesome will probably be able to pass the cost on to its customers because they are less sensitive to price increases than the average buyer.
B) Companies pursuing Wholesome's business strategy are especially vulnerable to this risk.
C) If Wholesome raises its pet food prices, customers will turn to less expensive brands such as Purina.
D) Wholesome probably operates on very thin margins, and a cost increase will threaten its ability to earn average returns.
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Chapter 5: Competitive Rivalry and Competitive Dynamics
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Sample Questions
Q1) (Refer to Case Scenario 3) The pet food industry provides an example of A) market commonality.
B) resource similarity.
C) multimarket competition.
D) market commonality, resource similarity, and multimarket competition.
Q2) The CEO of the Wholesome Food retail grocery chain, which specializes in organic and natural produce and meat, has stated, "The key to success is to find your niche and focus on it, regardless of what anyone else does." The CEO
A) realizes that he must understand competitors in order to predict their competitive actions and responses.
B) understands that he is the market leader in his niche and thus has a sustainable competitive advantage.
C) believes he has placed his firm in a slow-cycle industry where concerns about protecting unique competencies dominate concerns about market share.
D) realizes his firm has such lower resources than other competitors that his chain is "competitively invisible" to them.
Q3) Define competitors, competitive rivalry, competitive behavior, and competitive dynamics.
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Chapter 6: Corporate-Level Strategy
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Sample Questions
Q1) The Publicis Groupe (Chapter 6 Strategic Focus) has three major groups of business (advertising, media, and digital) which share resources and capabilities. Publicis Groupe is using a _____________ diversification strategy.
A) related linked
B) related constrained
C) unrelated
D) dominant
Q2) If the businesses in the corporate portfolio are not worth more under the management of the corporation than they would be under any other ownership, then the corporate-level strategy has failed.
A)True
B)False
Q3) Compared with diversification based on intangible resources, diversification based on financial resources is
A) less imitable and less likely to create value on a long-term basis.
B) more imitable and less likely to create value on a long-term basis.
C) less imitable and more likely to create value on a long-term basis.
D) more imitable and more likely to create value on a long-term basis.
Q4) Describe the primary reasons a firm pursues increased diversification.
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Chapter 7: Merger and Acquisition Strategies
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174 Verified Questions
174 Flashcards
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Sample Questions
Q1) One problem with becoming too large is that large firms
A) tend to have less market power.
B) have less potential for economies of scale.
C) become attractive takeover targets.
D) usually increase bureaucratic controls.
Q2) (Refer to Case Scenario 3) Given the history of Barracuda, what guidelines would you suggest to management regarding their acquisition strategy in the home furnishings industry?
Q3) Hostile acquisitions provide greater financial returns to the acquiring company as it is easier for managers to integrate the firms.
A)True
B)False
Q4) Research has shown that the more different the acquired firm is in terms of competencies and resources than the acquiring firm, the more likely the acquisition is to be successful.
A)True
B)False
Q5) (Refer to Case Scenario 3) Given Barracuda's history, what threats does Barracuda face in entering the furniture industry through acquisition?
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Chapter 8: International Strategy
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Sample Questions
Q1) Firms able to standarize the processes used to produce, sell, distribute, and service their products across country borders enhance their ability to
A) learn how to continuously reduce costs while increase the value of their products.
B) increase investment in research and development.
C) access to a low-cost labor force in the host market.
D) mitigate cultural differences.
Q2) The Haier Group concluded that its diversification strategy should be confined to countries in Asia where it had strengths in understanding cultures and institutions (Chapter 8 Strategic Focus).
A)True
B)False
Q3) Multinational firms have many opportunities to learn from their experiences in international markets, but they must have a strong R&D system to absorb the knowledge.
A)True
B)False
Q4) Identify and describe the modes of entering international markets. What are their advantages and disadvantages?
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Chapter 9: Cooperative Strategy
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Sample Questions
Q1) Firms in ____ markets cooperate to pool resources and gain market power.
A) slow-cycle
B) standard-cycle
C) fast-cycle
D) hyper-cycle
Q2) In general, cross-border alliances are more ____ and ____ than domestic alliances, especially in emerging markets.
A) uncertainty reducing, diversifying
B) complex, risky
C) highly leveraged, tightly monitored
D) flexible, trust-based
Q3) Which of the following statements is FALSE?
A) Franchising is most appropriate in fragmented industries.
B) Franchising provides corporate growth with less risk than do mergers and acquisitions.
C) Successful franchising allows transfer of knowledge and skills from the franchisor to the franchisee.
D) Franchising agreements require more trust between firms than do other cooperative strategies.
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Page 11
Chapter 10: Corporate Governance
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Sample Questions
Q1) Which of the following is NOT an internal governance mechanism?
A) the board of directors
B) ownership concentration
C) executive compensation
D) the market for corporate control
Q2) Executive compensation is considered an external corporate governance mechanism because it determined in part by market forces.
A)True
B)False
Q3) Critics advocate reforms to ensure that independent outside directors represent a significant majority of the total membership of the board. But, outsider dominated boards may emphasize the use of financial as opposed to strategic controls. The risk of reliance on financial controls is that they may encourage managers to make decisions to maximize their interests and reduce their employment risk.
A)True
B)False
Q4) Define the three internal corporate governance mechanisms and how they may be used to control and monitor managerial decisions.
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Page 12
Chapter 11: Organizational Structure and Controls
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157 Verified Questions
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Sample Questions
Q1) Describe the organizational structure associated with a firm that pursues an unrelated diversification strategy.
Q2) Organizational inertia often prompts top management to initiate structural change when organizational performance levels drop.
A)True
B)False
Q3) ____ is the degree to which decision making authority is retained at higher managerial levels.
A) Formalization
B) Centralization
C) Specialization
D) Unification
Q4) As a firm grows, it typically shifts from a simple structure to a functional structure.
A)True
B)False
Q5) (Refer to Case Scenario 1) What type of organizational structure will likely be needed for its transnational strategy? What impact will this have on the location of particular value chain activities?
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Chapter 12: Strategic Leadership
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Sample Questions
Q1) Effectively managing the firm's resource portfolio (financial, human, social, and organizational capital) may be the most important strategic leadership task.
A)True
B)False
Q2) Determining the strategic direction of a firm involves
A) implementation of a balanced scorecard.
B) developing an entrepreneurial mind-set.
C) specifying the vision and the strategy to achieve that vision over time.
D) exploiting and maintaining core competencies.
Q3) (Refer to Case Scenario 3) Effectively managing ZW&P's portfolio of resources (in particular its human and social capital resources) may be its most important strategic leadership task.
A)True
B)False
Q4) The firm's core ideology motivates the firm's employees through the company's heritage.
A)True
B)False
Q5) (Refer to Case Scenario 3) What are this firm's core resources and capabilities?
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Chapter 13: Strategic Entrepreneurship
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Sample Questions
Q1) Tide Total care, a premium version of Tide detergent, was developed through Sweden's Lund University along with two small chemical companies. This is an example of open innovation where new products come from ideas external to the firm (Chapter 13 Opening Case).
A)True
B)False
Q2) Research suggests that _________ is needed to encourage entrepreneurial behavior.
A) individualism rather than collectivism
B) a balance between individualism and cooperative behavior
C) collectivism rather than individualism
D) limited autonomy and incentives
Q3) The iPod likely resulted from autonomous strategic behavior at Apple, though the iPhone was more the result of induced strategic behavior.
A)True
B)False
Q4) (Refer to Case Scenario 1) What resources do Wim and Cathy bring to their venture?
Q5) (Refer to Case Scenario 1) What resources appear to be missing?
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