Business Policy
Exam Materials
Course Introduction
Business Policy is a strategic management course that focuses on the formulation, implementation, and evaluation of policies that guide organizations toward achieving their long-term objectives. The course examines key concepts such as mission and vision statements, environmental analysis, corporate governance, competitive advantage, and ethical decision-making. Through case studies, simulations, and real-world examples, students learn to integrate knowledge from various business disciplines, analyze strategic alternatives, and develop policies that align with organizational goals and stakeholder interests. The course aims to equip students with the analytical and decision-making skills needed to navigate complex business environments and lead organizations effectively.
Recommended Textbook
Strategic Management Text and Cases 6th Edition by Gregory Dess
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1213 Verified Questions
1213 Flashcards
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Page 2
Chapter 1: Strategic Management Creating Competitive Advantages
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101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/3021
Sample Questions
Q1) Social responsibility is the idea that organizations are only accountable to stockholders.
A)True
B)False
Answer: False
Q2) An idealistic vision can arouse employee enthusiasm and therefore is a good vision.
A)True
B)False
Answer: False
Q3) Effectiveness is often defined as
A) doing things right.
B) stakeholder satisfaction.
C) doing the right thing.
D) productivity enhancement.
Answer: C
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Page 3
Chapter 2: Analyzing the External Environment of the Firm
Creating Competitive Advantages
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) Reintermediation is responsible for an overall reduction in business opportunities. A)True
B)False
Answer: False
Q2) Boards of directors use outsiders to critique their strategy. This is necessary mostly to improve
A) financial returns.
B) organizational hierarchy.
C) perceptual acuity.
D) employee relations.
Answer: C
Q3) Which of the following is notan example of corporate competitive intelligence?
A) banks tracking home loans
B) airlines changing hundreds of fares daily in response to competitor tactics
C) consumers comparing product offers online
D) car manufacturers offering sales incentives based on rival offers
Answer: C
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Page 4
Chapter 3: Assessing the Internal Environment of the Firm
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) Which of the following is a support activity?
A) inbound logistics
B) customer service
C) technology development
D) operations
Answer: C
Q2) A competitive advantage based on inimitability can be sustained for at least some time, if it has the following characteristics:
A) psychographic uniqueness, path dependency, causal ambiguity, and substitutability.
B) physical uniqueness, path dependency, causal ambiguity, and social complexity.
C) rarity, path dependency, causal ambiguity, and social substitutability.
D) geographic uniqueness, cause dependency, social ambiguity, and path complexity.
Answer: B
Q3) Financial resources such as cash and cash equivalents are intangible resources.
A)True
B)False
Answer: False
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5
Chapter 4: Recognizing a Firm's Intellectual Assets Moving
beyond a Firm's Tangible Resources
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The management of intellectual property involves all of the following except A) copyrights and trademark.
B) contracts with confidentiality and non-compete clauses.
C) converting explicit knowledge to tacit knowledge.
D) patents.
Q2) Another example of social relationships causing human capital mobility is the ________ of talent from an organization to form ________.
A) stability; bail-outs
B) emigration; bail-outs
C) relocation; new business units
D) emigration; start-up ventures
Q3) The environmental sustainability strategy of a firm might be used to retain high-performing employees because recent college graduates
A) seek to make a social or environmental difference in the world.
B) want a job in a company that is committed to corporate profit.
C) feel that profitability is not important.
D) are loyal to firms that are concerned with employee education.
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Page 6
Chapter 5: Business-Level Strategy Creating and Sustaining Competitive Advantages
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) Which of the following is most often true of mature markets?
A) Some competitors enjoy a significant operating advantage due to increasing experience effects.
B) The market supports premium pricing, which attracts additional competitors.
C) Advantages that cannot be duplicated by other competitors are difficult to achieve.
D) The magnitude of pricing differences and product differentiation is larger than in the growth stage.
Q2) Marlin Steel Wire Products is a manufacturer of commodity wire products out of Baltimore, MD. Marlin has many rivals based in China and other emerging markets. The company cannot compete on labor costs so it used a ________ strategy to automate its production and now specializes in high-end products.
A) differentiation
B) overall cost leadership
C) focus strategy
D) low cost leadership
Q3) What are the pitfalls of the overall cost leadership strategy? Provide an example for each pitfall and explain why it is a pitfall.
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Page 7
Chapter 6: Corporate-Level Strategy Creating Value through Diversification
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Research shows that a key competence of high-performance diversified firms is the ability to
A) hide excess capital.
B) efficiently dispose of excess capital.
C) effectively allocate financial capital.
D) invest internationally.
Q2) Sharing core competencies is one of the primary potential advantages of diversification. For diversification to be most successful, it is important that the A) products use similar distribution channels.
B) value chains of the firm be similar enough in at least one way to allow for the leveraging of the core competencies of the firm.
C) target market is the same, even if the products are very different.
D) methods of production are the same.
Q3) Discuss the three basic means by which a firm can go about achieving synergy and create value for its shareholders.
Q4) Why do some diversification efforts pay off and others produce poor results? Why should companies even bother with diversification initiatives?
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Chapter 7: International Strategy Creating Value in Global Markets
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) In considering the decision to offshore, which of the following generally is not one of the hidden costs?
A) total wage costs and indirect costs
B) wage deflation
C) reduction in intellectual property rights
D) increased inventory and coordination costs
Q2) Firms following a global strategy strive to offer ________ products and services as well as locate manufacturing, research and development, and marketing activities in a limited numberoflocations.
A) widely differentiated
B) more expensive local
C) internationally differentiated
D) standardized
Q3) When differentiating products and services to local markets, strategies and tactics are likely to ________ company costs.
A) decrease
B) increase
C) obliterate
D) decentralize
Page 9
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Chapter 8: Entrepreneurial Strategy and Competitive Dynamics
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94 Verified Questions
94 Flashcards
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Sample Questions
Q1) The majority of entrepreneurial start-ups are financed through monies from A) bank financing.
B) SBA loans.
C) personal savings and the contributions of family and friends.
D) venture-capital financing.
Q2) Casper Sleep makes mattresses, according to Strategy Spotlight 8.3 in the textbook. Which generic strategy most closely represents theirs?
A) differentiation
B) low-cost leadership
C) focus
D) combination
Q3) ________ provide(s) a key avenue for growth for many young and small firms through partnering to obtain resources and to expand into new markets.
A) Strategic alliances
B) Funding
C) Banking
D) Research and development
Q4) Explain what a pioneering new entry means and when it is appropriate to use it.
Page 10
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Chapter 9: Strategic Control and Corporate Governance
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91 Verified Questions
91 Flashcards
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Sample Questions
Q1) Informational control is primarily concerned with whether the organization is doing the right things.
A)True
B)False
Q2) The Lending Club removed CEO Renaud Laplanche in 2016. Hans Morris, the company executive chairman, lauded him, saying his entrepreneurial spirit was critical to the success of the firm. But he also signaled the board was removing Mr. Laplanche because he had failed to build a strong control system and culture, stating that as a public company that provides a financial service, Lending Club must meet the industry high standards of transparency and disclosure. This kind of dismissal signals what message to the public?
A) Mr. Laplanche was not a creative entrepreneur.
B) The board of directors is active and engaged.
C) The board of directors needed a scapegoat to cover up their ineffectiveness.
D) Mr. Laplanche was dishonest.
Q3) When would single-loop control systems be most appropriate?
Q4) Discuss the differences between informational control and behavioural control and when each is appropriate.
Q5) Explain why control systems are necessary for strategy implementation.
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Chapter 10: Creating Effective Organizational Designs
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86 Verified Questions
86 Flashcards
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Sample Questions
Q1) In large organizations, a strategy of diversification requires a need to reorganize around ________ or ________.
A) product lines; geographic markets
B) product lines; competition
C) competitor lines; geographic markets
D) distribution lines; competitor markets
Q2) As firms grow, owner managers often need to hire functional specialists to handle the increased information-processing burden.
A)True
B)False
Q3) Organizations generally tend to become internally focused when faced with ________ and ________.
A) resource scarcity; declining performance
B) internal pressures; improving performance
C) resource abundance; declining performance
D) external pressures; resource abundance
Q4) What is organizational structure and why is it important?
Q5) Discuss the advantages and disadvantages of a simple organizational structure.
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Chapter 11: Strategic Leadership Creating a Learning
Organization and an Ethical Organization
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104 Verified Questions
104 Flashcards
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Sample Questions
Q1) An ethically sound organization, drawing on the concepts of stakeholder management, can also strengthen its bonds among its ________, ________, and ________.
A) policies; procedures; values
B) values; organizational design; employees
C) suppliers; customers; governmental agencies
D) current employees; potential employees; future employees
Q2) The ethical compass of an organization, in the integrity-based ethics approach to management, consists of the expected ________ and ________.
A) obligations; rules
B) behaviors; penalties
C) responsibilities; aspirations
D) legalities; penalties
Q3) A drawback of EI is that a leader can find it easy to over-identify with others and confuse ________ with ________.
A) intelligence; empathy
B) motivation; empathy
C) empathy; sympathy
D) motivation; intelligence
Page 13
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Chapter 12: Managing Innovation and Fostering Corporate
Entrepreneurship
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93 Verified Questions
93 Flashcards
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Sample Questions
Q1) What are new venture groups? What purpose do they serve? Are they more than a typical R&D department? Explain.
Q2) First movers in an industry often capture above-average profits but usually find it difficult to maintain early market share gains.
A)True
B)False
Q3) After 15 teams created 128 different phones, Chris Galvin, former CEO of Motorola, eliminated the autonomous teams being used to develop new wireless phones. This was necessary becausesuch teams
A) often lack coordination.
B) typically waste the CEOs attention.
C) create efficiencies through duplication of effort.
D) never duplicate efforts of the rest of the firm.
Q4) Which of the following is not characteristic of a disruptive innovation?
A) It is usually more sophisticated technologically.
B) It appeals to less demanding customers.
C) It is typically a less expensive solution for meeting a need.
D) It usually takes root in a new market or the low-end of an existing market.
Q5) Explain why the seeds versus weeds dilemma is important.
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