Course Introduction
Business Policy Exam Preparation Guide
Business Policy is a capstone course that explores the formulation, implementation, and evaluation of strategies within organizations to achieve long-term objectives and sustain competitive advantage. Through the analysis of real-world cases and theoretical frameworks, students will examine how environmental factors, organizational resources, and leadership styles influence strategic decisions. Emphasis is placed on integrating knowledge from various business disciplines, such as marketing, finance, operations, and human resources, to solve complex business problems and develop effective corporate policies that align with organizational goals.
Recommended Textbook
Essentials of Strategic Management 3rd Edition by Charles W. L. Hill
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9 Chapters
712 Verified Questions
712 Flashcards
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Page 2
Chapter 1: The Strategy-Making Process
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/26630
Sample Questions
Q1) A global strategy addresses how to expand operations outside the home country to grow and prosper in a world where competitive advantage is determined at a global level.
A)True
B)False
Answer: True
Q2) Action taken by lower-level managers who, on their own initiative, formulate new strategies and work to persuade top-level managers to alter the strategic priorities of a company is considered a business-level strategy.
A)True
B)False
Answer: False
Q3) Scenario-based planning is a technique for coping with the problem of A) strategic fit
B) planning equilibrium.
C) bottom-up planning.
D) uncertainty.
E) cognitive bias.
Answer: D
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Page 3
Chapter 2: The Mission, Governance, and Business Ethics
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83 Verified Questions
83 Flashcards
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Sample Questions
Q1) Which of the following statements about the Sarbanes-Oxley bill is false?
A) It represents the biggest overhaul of accounting rules.
B) It represents the biggest overhaul of corporate governance since the 1930s
C) It set-up a new oversight board for accounting firms.
D) It requires CEOs and CFOs to endorse their company's financial statements.
E) It outlines acceptable principles of right and wrong.
Answer: E
Q2) When are the interests of stockholders and senior managers likely to be most closely aligned?
A) When the board of directors is dominated by insiders
B) When managers receive most of their compensation in the form of a regular salary
C) When managers receive most of their compensation in the form of stock options
D) When stockholders are weak
E) When corporate raiders are unable to mount a takeover bid
Answer: C
Q3) The goals of all stakeholder groups are generally aligned.
A)True
B)False
Answer: False
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Page 4
Chapter 3: External Analysis: the Identification of Opportunities and Threats
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) A group of companies offering products or services that are close substitutes for each other is referred to as a(n)
A) strategic group.
B) market segment.
C) sector.
D) supplier.
E) industry.
Answer: E
Q2) Julian is asked to examine the demographic environment facing his employer, a clothing manufacturer. Which of the following should Julian examine?
A) Government regulations
B) Inflation
C) Manufacturing technology
D) Aging of the population
E) Society's growing interest in exercise
Answer: D
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Chapter 4: Building Competitive Advantage
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) The simplest measure of efficiency is the quantity of inputs that it takes to produce a given output.
A)True
B)False
Q2) Customer response time is the time it takes for a good to be delivered or a service to be performed.
A)True
B)False
Q3) Process innovation is the development of a new process for producing products and delivering them to customers.
A)True
B)False
Q4) The reasons that explain why so many new products fail to generate an economic return include all of the following except
A) the demand for innovations is inherently uncertain.
B) the technology is poorly commercialized.
C) many fail because of poor positioning strategy.
D) development costs are not kept in check.
E) the products are slow to get to the market.
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Chapter 5: Business-Level Strategy and Competitive Positioning
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78 Verified Questions
78 Flashcards
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Sample Questions
Q1) The cost leader is able to withstand competition better than the other companies because of its lower costs.
A)True B)False
Q2) Companies with a differentiation advantage can charge a higher price for their products.
A)True
B)False
Q3) Through chaining, companies increase their buying power, which allows them to negotiate large price reductions with their suppliers, which promotes their competitive advantage.
A)True
B)False
Q4) A fragmented industry is composed of a large number of small and medium-sized companies.
A)True B)False
Q5) For each of the generic strategies-cost leadership, differentiation, and focus-describe one advantage and one disadvantage.
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Chapter 6: Strategy in the Global Environment
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74 Flashcards
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Sample Questions
Q1) Rivalry for any company is understood by examining what happens only within the boundaries of its home country.
A)True
B)False
Q2) When toy maker Mattel sells Barbie dolls in the Middle East, it changes the doll's shape to one that is a more accurate portrayal of a female body. Mattel does this in order to
A) create a commodity-type product.
B) transfer technological know-how.
C) respond to differences in local tastes.
D) realize experience curve effects.
E) increase product standardization
Q3) Companies following an international strategy avoid any attempt at local customization of product offering.
A)True
B)False
Q4) Walmart opened its first stores in Mexico in 1993.
A)True
B)False
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Chapter 7: Corporate-Level Strategy and Long-Run Profitability
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80 Verified Questions
80 Flashcards
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Sample Questions
Q1) Product bundling occurs when a firm offers a range of products that are sold together at a single price.
A)True
B)False
Q2) What is meant by the terms "related diversification" and "unrelated diversification" and how should a company choose between them.
Q3) Vertical integration can raise costs if, over time, a company continues to purchase inputs from company-owned suppliers when low-cost independent suppliers that can supply the same inputs exist.
A)True
B)False
Q4) The strategy of ___________ involves choosing the value-added stages of the raw-material-to-consumer chain in which to compete.
A) diversification based on economies of scope
B) diversification based on acquisition and restructuring
C) cost leadership
D) differentiation
E) vertical integration
Page 9
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Chapter 8: Strategic Change: Implementing Strategies to
Build and Develop a Company
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76 Verified Questions
76 Flashcards
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Sample Questions
Q1) Which of the following is not one of the organizational levels where obstacles to change may be found?
A) Enterprise
B) Divisional
C) Corporate
D) Functional
E) Individual
Q2) Which of the following is not a guideline for a successful acquisition?
A) Good bidding strategy
B) A clear strategic rationale for making the acquisition
C) Completing the acquisition quickly
D) Thorough preacquisition screening
E) A good plan to integrate the acquired company into the acquired one
Q3) A company should foster close links between R&D and marketing personnel to ensure that the company has the capability to manufacture any proposed new products.
A)True
B)False
Q4) Describe what is meant by the terms "restructuring" and "reengineering," and discuss when and why they would be used.
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Chapter 9: Implementing Strategy Through Organizational Design
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81 Flashcards
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Sample Questions
Q1) In a firm with a multi-divisional structure, corporate managers oversee the actions of divisional managers.
A)True
B)False
Q2) A complex form of integrating mechanisms is needed when a company's structure is complex.
A)True
B)False
Q3) Centralization promotes organizational flexibility.
A)True
B)False
Q4) When decision-making responsibilities are decentralized, benefits include all of the following except
A) increased motivation and accountability.
B) lower managerial costs from flattened hierarchy.
C) reduced information overload.
D) easier coordination of the organizational activities needed to pursue a company's strategies.
E) All of these are benefits of decentralization.
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