Business Policy
Exam Questions
Course Introduction
Business Policy is a strategic management course that explores the formulation, implementation, and evaluation of policies that guide an organizations direction and objectives. Students learn how to assess internal and external environments, analyze competitive forces, and develop comprehensive strategies for sustainable growth. Through case studies and real-world scenarios, this course emphasizes decision-making at the executive level, addressing issues such as corporate governance, ethics, and global competition. By the end of the course, students gain practical skills to craft and execute effective business policies that align with organizational goals.
Recommended Textbook
Strategic Management A Competitive Advantage Approach 15th Edition by Fred
R. David
11 Chapters
1342 Verified Questions
1342 Flashcards
Source URL: https://quizplus.com/study-set/749
Page 2
Chapter 1: The Nature of Strategic Management
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/14622
Sample Questions
Q1) In the last five years, the position of chief strategy officer (CSO)has diminished so drastically that today it is almost unheard of for companies to have such a position on staff.
A)True
B)False Answer: False
Q2) Anything the firm does especially well compared to rival firms could be considered a competitive advantage.
A)True
B)False Answer: True
Q3) Objectives should be measurable, challenging, reasonable, consistent, and clear.
A)True
B)False Answer: True
Q4) Annual objectives are especially important in strategy formulation.
A)True
B)False Answer: False
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Chapter 2: The Business Vision and Mission
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113 Verified Questions
113 Flashcards
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Sample Questions
Q1) Whereas the mission statement answers the question, "What do we want to become?" the vision statement answers the question, "What is our business?"
A)True
B)False
Answer: False
Q2) It is unusual for the claims and concerns of a company's stakeholders to vary or conflict.
A)True
B)False
Answer: False
Q3) When developing a mission statement, what is needed before people can focus on specific strategy formulation activities?
A) Negotiation
B) Compromise
C) Eventual agreement
D) A and B only
E) All of the above
Answer: E
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4
Chapter 3: The External Assessment
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128 Verified Questions
128 Flashcards
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Sample Questions
Q1) An increase in interest rates is directly related to an increase in discretionary income and an increase in the demand for discretionary goods.
A)True
B)False
Answer: False
Q2) The weights and total weighted scores in both a Competitive Profile Matrix and an EFE Matrix have the same meaning.
A)True
B)False
Answer: True
Q3) Which of the following has largely refrained from protectionist measures?
A) the EU
B) the U.S.A.
C) India
D) Russia
E) All of the above
Answer: B
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Page 5
Chapter 4: The Internal Assessment
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130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/14627
Sample Questions
Q1) The purpose of organizing is to achieve coordinated effort by defining task and authority relationships.
A)True
B)False
Q2) What four basic steps comprise the controlling function of management?
Q3) Which of the following are NOT mentioned as an example of cultural products?
A) Rites
B) Emotions
C) Rituals
D) Sagas
E) Symbols
Q4) Which of the following is NOT a key question that can reveal internal strengths and weaknesses of the marketing department?
A) Does the firm have an effective sales organization?
B) Is our product quality good?
C) Are markets segmented effectively?
D) Are the firm's products and services priced appropriately?
E) Does the firm have good liquidity?
Q5) Discuss how technology has affected the role of the chief marketing officer (CMO).
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Chapter 5: Strategies in Action
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132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/14628
Sample Questions
Q1) Today McDonald's owns about ________ percent of its restaurants.
A) 9
B) 20
C) 50
D) 67
E) 89
Q2) Differentiation guarantees competitive advantage.
A)True
B)False
Q3) Chapter 9 bankruptcy applies to municipalities.
A)True
B)False
Q4) Most companies favor related diversification strategies in order to exploit common use of a well-known brand name.
A)True
B)False
Q5) Gaining ownership or increased control over distributors or retailers is called forward integration strategy.
A)True
B)False
Page 7
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Chapter 6: Strategy Analysis and Choice
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113 Verified Questions
113 Flashcards
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Sample Questions
Q1) The SP and CP dimension variables in a SPACE Matrix are assigned a numerical value ranging from -1 (best)to -7 (worst).
A)True
B)False
Q2) Which of the following is NOT one of the steps involved in constructing a SWOT Matrix?
A) List the firm's key external threats.
B) Match internal strengths with external opportunities, and record the resultant SO strategies in the appropriate cell.
C) Match internal weaknesses with external threats, and record the resultant WT strategies.
D) List the firm's external weaknesses.
E) List the firm's external opportunities.
Q3) Which stage of the strategy-formulation framework contains the IFE Matrix?
A) Input stage
B) Analysis stage
C) Matching stage
D) Decision stage
E) Output stage
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Page 8
Chapter 7: Implementing Strategies: Management and Operations Issues
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) What type of organizational structure promotes specialization of labor and allows rapid decision making?
A) Divisional structure by product
B) Functional structure
C) Divisional structure by customer
D) Strategic business unit
E) Matrix structure
Q2) A disagreement between two or more parties on one or more issues is called a(n)
A) integrated solution.
B) conflict.
C) compromise.
D) diffusion.
E) avoidance.
Q3) There are three major approaches for managing and resolving conflict in an organization. Define these three approaches and give an example of each.
Q4) Strategy formulation requires coordination among a few individuals, but strategy implementation requires coordination among many.
A)True
B)False
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Chapter 8: Implementing Strategies: Marketing, Finance/Accounting,
R&D, and MIS
Issues
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114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/14631
Sample Questions
Q1) Subdividing a market into distinct subsets of customers according to their needs and buying habits is known as
A) market penetration.
B) product diversification.
C) market segregation.
D) market segmentation.
E) positioning.
Q2) A benefit of using projected balance sheets and income statements is that
A) the impact of various implementation decisions can be forecasted.
B) money can be put aside to pay future income taxes.
C) insurance needs can be computed.
D) it is useful in analyzing past performance.
E) all of the above
Q3) A firm can usually serve two or more market segments with the same strategy.
A)True
B)False
Q4) Name five examples of finance and accounting decisions that may require policies.
Q5) What is business analytics and why is it so important in businesses today?
Page 10
Q6) Discuss some ways in which management information systems can benefit a company.
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Chapter 9: Strategy Review, Evaluation, and Control
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117 Verified Questions
117 Flashcards
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Sample Questions
Q1) Strategy-evaluation activities should ideally be performed
A) just on a periodic basis.
B) only at the onset of a problem.
C) on a continuous basis.
D) solely upon completion of major projects.
E) annually only.
Q2) Which of the following is true regarding the design of a firm's strategy-evaluation system?
A) There is a one-size-fits-all system that works for all companies.
B) It does not need to take into account the organization's size.
C) The management style of a firm has no bearing on the design.
D) It should be determined based on the unique characteristics of a company.
E) There is one ideal system.
Q3) According to research, participation in strategy-evaluation activities is one of the best ways to overcome individuals' resistance to change.
A)True
B)False
Q4) The test of an effective evaluation system is its complexity.
A)True
B)False
Page 12
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Chapter 10: Business Ethics, Social Responsibility, and Environmental Sustainability
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122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/14623
Sample Questions
Q1) Which is a rule from the Wall Street Journal article "The New Rules of Flirting"?
A) Do not flirt within a relationship that you want to strengthen.
B) Do flirt with someone you know is looking for a relationship if you are not interested in a new relationship.
C) Do flirt to make your partner jealous.
D) Flirting between power differences, such as boss and employee, is usually fine.
E) Do not make physical contact with the person you are flirting with, unless it is within a desired relationship.
Q2) The first social responsibility of any business must be to make enough profit to cover the costs of the future because if this is not achieved, no other social responsibility can be met.
A)True
B)False
Q3) Firms should strive to engage in social activities that have no economic benefits, to avoid their being viewed as public relations ploys.
A)True
B)False
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Page 13
Chapter 11: Global and International Issues
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) Shifts in the nature and location of production systems, especially to China and India, are reducing the response time to changing market conditions.
A)True
B)False
Q2) Although growth in revenues and profits is a common expectation of shareholders, it is not a measure of organizational success.
A)True
B)False
Q3) U.S. managers in Japan have to be careful about ________, whereby Japanese workers expect supervisors to alert them privately of changes rather than informing them in a meeting.
A) feng shui
B) nemaswashio
C) Wa
D) guanxi
E) inhwa
Q4) Explain the concept of protectionism.
Q5) Discuss the economic outlook for Africa.
Q6) Discuss union membership across Europe.
Page 14
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