Business Policy Exam Review
Course Introduction
Business Policy explores the formulation, implementation, and evaluation of strategic decisions that guide organizations toward achieving their long-term objectives. This course examines the frameworks and tools used by top management to analyze internal and external environments, set policies, allocate resources, and respond to competitive challenges. Through case studies and practical applications, students develop skills in critical thinking, problem-solving, and integrating knowledge from various business disciplines to make effective policy choices and drive organizational success.
Recommended Textbook
Foundations of Strategy 1st Canadian Edition by Robert M. Grant
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10 Chapters
579 Verified Questions
579 Flashcards
Source URL: https://quizplus.com/study-set/2392
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Chapter 1: The Concept of Stategy
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59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/47517
Sample Questions
Q1) Strategy today is essentially a detailed plan which every member of the organization must follow to ensure success.
A)True
B)False
Answer: False
Q2) Corporate strategy is also called business strategy, or competitive strategy.
A)True
B)False
Answer: False
Q3) The shift from Corporate Planning to Strategy Making implies
A)from the sources of profit outside the firm to the sources of profit within the firm.
B)to the resource-based view of the firm.
C)both a and b.
D)from the structure-based approach to the value-added perspective.
Answer: C
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3
Chapter 2: Industry Analysis
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58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/47518
Sample Questions
Q1) One can view the connection between the general environment and the industry environment as
A)the general environment is diffuse, whereas the industry environment consists of a small number of close competitors.
B)the industry environment consists of customers, suppliers, rivals, and new entrants, whereas the general environment comprises everything else.
C)the industry environment includes customers, competitors and suppliers, whereas the general environment matters to the extent that it affects the industry environment.
D)the critical influence of the industry environment on the wider social environment.
Answer: C
Q2) When competition in an industry has become more intense, the companies that are suppliers to this industry will NOT be pressured to lower prices.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Resources and Capabilities
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64 Verified Questions
64 Flashcards
Source URL: https://quizplus.com/quiz/47519
Sample Questions
Q1) Dynamic capabilities
A)are the capacity to learn new capabilities.
B)can be acquired through 'reverse takeovers'.
C)develop rapidly in some industries, then die.
D)b and c.
Answer: A
Q2) Porter's firm value chain can be used to
A)estimate the value added at each stage of a good's production and distribution.
B)show the after-tax profit generated by each part of the firm.
C)show the pre-tax profit generated by each part of the firm.
D)map out a firm's main activities into threshold and distinctive capabilities.
Answer: D
Q3) To stop rivals acquiring a core resource or capability,
A)firms cannot stop its rivals from doing things they want to.
B)firms need to make that resource or capability immobile.
C)firms must use patents and the full array of legal protections.
D)everyone involved in this activity must be paid higher than the rivals could pay.
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: The Nature and Sources of Competitive
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50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/47520
Sample Questions
Q1) A firm can create competitive advantage by responding better than rivals to changes in its environment or by maintaining strategic differences from its rivals that customers accept.
A)True
B)False
Q2) Rivals can be pre-empted from entering a firm's markets using the above methods only if
A)there are significant economies of scale in this industry.
B)there is significant first-mover advantage in this industry.
C)brand names matter to consumers in this industry.
D)a and b.
Q3) To "pre-empt" an entrant, a firm can occupy existing and potential strategic niches to reduce the range of opportunities open to potential entrants.
A)True
B)False
Q4) Walmart has a competitive advantage in discount retailing in the United States.
A)True
B)False
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6
Chapter 5: Industry Evolution and Strategic Change
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53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/47521
Sample Questions
Q1) Barriers to change include
A)organizational routines.
B)social and political structures.
C)conformity.
D)a, b, and c.
Q2) The key success factor for firms surviving in the Maturity phase is
A)buying as many competitors as you can.
B)maintaining cost efficiency as good as competitors.
C)"two for one" deals and other special offers.
D)all of the above.
Q3) An industry life cycle
A)always follows the theoretical pattern.
B)may never enter the decline phase, in some industries supplying basic essential products or services.
C)must be the same everywhere, due to globalisation.
D)can never really experience a resurgence.
Q4) It's a good idea to reduce product innovation as soon as possible so as to precipitate a shift to the growth phase.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Technology-Based Industries and the Management of Innovation
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67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/47522
Sample Questions
Q1) Firms innovate because
A)the human race is naturally inventive.
B)competitive advantages tend to erode over time - so new ones need to be found.
C)consumers are always looking for the next new gadget.
D)it gets boring doing the same old things.
Q2) Having a patent is NOT much use if a rival is expert enough to quickly come up with an alternative way to achieve the same thing.
A)True
B)False
Q3) The only way to cope with true uncertainty is
A)to be flexible enough to quickly react to the unexpected.
B)prepare multiple scenario plans.
C)to construct a computer model simulation.
D)to calculate all the risks and analyse the chances of success in a spreadsheet model.
Q4) If a firm or a person secures a patent, then commercial success is assured.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Corporate Stategy
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74 Verified Questions
74 Flashcards
Source URL: https://quizplus.com/quiz/47523
Sample Questions
Q1) Over the past 30 years, the tendency in the USA and Europe has been
A)a trend for highly diversified groups to dominate industries.
B)a trend for diversified firms to refocus and reduce their diversification.
C)reduced opportunity for firms to further diversify.
D)a deliberate move to avoid copying the strategy of firms in emerging economies.
Q2) In the past 25 years, there has been a huge trend away from vertical integration towards de-integration, outsourcing, and focusing on core competences.
A)True
B)False
Q3) Michael Porter suggested that the main indicator that diversification would create value is if the chosen industry is attractive.
A)True
B)False
Q4) Corporate strategy is concerned with
A)the scope of a firm's products.
B)the scope of a firm's activities.
C)the scope of a firm's structure and corporate governance system.
D)the firm's geographical scope.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Realizing Stategy
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53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/47524
Sample Questions
Q1) Hierarchies allow units to work independently of each other.
A)True
B)False
Q2) The 200-year-old quote from Adam Smith's early industrial pin factory illustrates
A)the gains to be had from task specialization.
B)the usefulness of 200-year-old economics textbooks.
C)how technology has progressed in 200 years.
D)a and b.
Q3) Well-designed share options can be a way of aligning the
A)interests of managers with those of shareholders.
B)customers' interests with those of suppliers'.
C)employees' interests with those of government.
D)customers' interests with those of employees.
Q4) At BP, before Deepwater Horizon, drilling risks were evaluated
A)differently by managers and engineers, who belonged to different sub-cultures.
B)by big game hunters who 'shot from the hip'.
C)by managers who were too frightened.
D)by people on the wrong side of the Atlantic Ocean.
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Page 10
Chapter 9: Global Strategies and the Multinational Corporation
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66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/47525
Sample Questions
Q1) If a rival uses cash flows from one country to finance aggressive pricing in another, A)this is illegal under world trade organization rules.
B)now is the time to attack his high-price markets and grow your market share there.
C)you must retaliate in the price war - or drop all your strategic goals in this country.
D)stay out of this price war.
Q2) National cultural differences matter when the industry or product is close to the consumer - such as in retailing.
A)True
B)False
Q3) Internationalization opens
A)borders for foreign workers.
B)doors for commercial spies.
C)domestic markets to foreign competitors.
D)a and c.
Q4) The internet has stopped companies going global from inception.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Corporate Responsibility
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35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/47526
Sample Questions
Q1) Select the best strategic reasons for firms to ensure proper occupational health and safety practices.
A)Improve industry reputation.
B)Improve the bottom line.
C)The potential to win awards which could increase brand value.
D)Direct financial impact and diminished brand value if they don't follow these practices.
Q2) In the 1990s and 2000s regulation and restrictions on all kinds of banks were loosened in part because politicians wanted the wealth and jobs created by the financial sector itself.
A)True
B)False
Q3) The strategic worry about short-termism is that
A)managers focus on short-term sales targets and are not concerned about profits.
B)managers focus too much on short-term economic conditions and not on profits.
C)managers focus too much on immediate operations, and not on strategic issues.
D)managers focus too much on headline profitability and not enough on the underlying causes of it.
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