Business Policy
Final Exam Questions
Course Introduction
Business Policy explores the formulation, implementation, and evaluation of strategic decisions within organizations. The course emphasizes the integration of knowledge from various business disciplines to analyze real-world cases and develop comprehensive strategies for sustainable competitive advantage. Students learn to assess external and internal environments, recognize the impact of ethical considerations, and understand the role of top management in guiding organizational direction. Through case studies, simulations, and group discussions, the course fosters critical thinking and problem-solving skills essential for effective strategic management and leadership in a dynamic business environment.
Recommended Textbook
Strategic Management A Competitive Advantage Approach Concepts and Cases 14th Edition by
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11 Chapters
1337 Verified Questions
1337 Flashcards
Source URL: https://quizplus.com/study-set/1395
Page 2
Chapter 1: The Nature of Strategic Management
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/27795
Sample Questions
Q1) In the last five years, the position of chief strategy officer (CS O) has diminished in comparison to other top management ranks of many organizations.
A)True
B)False
Answer: False
Q2) Anything that a firm does especially well compared to rival firms is referred to as A) competitive advantage.
B) comparative disadvantage.
C) opportunity cost.
D) unsustainable advantage.
E) an external opportunity.
Answer: A
Q3) Crises and firefighting in an organization allow managers the training and time for effective strategic planning.
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) If an organization chooses to have both a mission and a vision, the mission statement should be established first.
A)True
B)False
Answer: False
Q2) According to Campbell and Yeung, an organization's vision is associated with behavior and with the present.
A)True
B)False Answer: False
Q3) Carefully prepared statements of vision and mission are widely recognized as the first step in strategic management.
A)True
B)False Answer: True
Q4) A mission statement is a declaration of an organization's financial status.
A)True
B)False Answer: False
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Chapter 3: The External Assessment
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127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/27799
Sample Questions
Q1) What is NOT one of Michael Porter's five competitive forces?
A) New entrants
B) Rivalry among existing firms
C) Bargaining power of unions
D) Bargaining power of suppliers
E) Bargaining power of buyers
Answer: C
Q2) Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms tends to
A) stay the same.
B) increase.
C) decrease.
D) neutralize.
E) fluctuate.
Answer: B
Q3) Freund argues that key external factors must not be hierarchical.
A)True
B)False
Answer: False
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Page 5
Chapter 4: The Internal Assessment
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132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/27800
Sample Questions
Q1) Which of the following is the process of influencing people to accomplish specific objectives?
A) Staffing
B) Motivating
C) Planning
D) Controlling
E) Organizing
Q2) Distribution includes
A) customer analysis.
B) pricing.
C) warehousing.
D) advertising.
E) test marketing.
Q3) Metaphors are handed-down narratives of some wonderful event that are based on history but have been embellished with fictional detail.
A)True
B)False
Q4) Define cultural products, and give six examples of them.
Q5) Discuss the limitations of financial ratio analysis.
Q6) Explain the resource-based view and its relation to strategic management.
Page 6
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Chapter 5: Strategies in Action
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/27801
Sample Questions
Q1) Divestiture has become a popular strategy for firms to focus on their core business and become more diversified.
A)True
B)False
Q2) Chapter 7 bankruptcy is a liquidation procedure used only when a firm sees no hope of being able to operate successfully or to obtain necessary creditor agreement.
A)True
B)False
Q3) According to Porter, which strategy offers products or services to a niche group of customers at the lowest price available on the market?
A) Cost Leadership - Low Cost
B) Cost Leadership - Best Value
C) Focus - Low Cost
D) Focus - Best Value
E) Differentiation
Q4) List some guidelines for when related diversification would be a particularly good strategy to pursue.
Q5) Define and give an example, where available, of three integrative strategies.
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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) Stage 2 in the strategy-formulation framework involves the Quantitative Strategic Planning Matrix.
A)True
B)False
Q2) Using a Grand Strategy Matrix approach, what strategies are recommended for a firm that is a weak competitor in a slow-growing market? Elaborate on what these strategies could mean for a college or university.
Q3) Explain the benefits and limitations of developing a Boston Consulting Group Matrix.
Q4) 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
Q5) The most important determinants of an organization's overall strategic position are considered to be the two internal dimensions, financial position (FP) and competitive position (CP), and the two external dimensions, industry position (IP) and stability position (SP).
A)True
B)False
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Chapter 7: Implementing Strategies: Management and Operations Issues
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) Exchanging members of conflicting parties so each can gain an appreciation of the other's point of view exemplifies a confrontation approach.
A)True
B)False
Q2) What is NOT one of the basic ways a divisional structure can be organized?
A) By geographic area
B) By product
C) By customer
D) By process
E) By cost
Q3) Compare and contrast restructuring and reengineering.
Q4) Discuss how work life/home life balance is being addressed by organizations.
Q5) What is the best divisional structure when a few major customers are of paramount importance and many different services are provided to these customers?
A) By geographic area
B) By customer
C) By product
D) By process
E) By cost
Page 9
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Chapter 8: Implementing Strategies: Marketing, Financeaccounting,
RD, and MIS
Issues
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) How should financial budgets be thought of?
A) as a tool for limiting expenditures
B) as a method for obtaining the most productive and profitable use of an organization's resources
C) as a method for rationing the profits from the past year
D) as a method for determining who should receive the largest pay raise
E) as a tool for forecasting future profits
Q2) Name five examples of marketing decisions that may require policies.
Q3) What are the marketing mix component variables? Give some examples of each.
Q4) What entails developing schematic representations that reflect how your products or services compare to competitors' on dimensions most important to success in the industry?
A) Positioning
B) Segmentation
C) Penetration
D) Diversification
E) Budgeting
Q5) One R&D strategy is to be an innovative imitator of successful products.
A)True
B)False
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Chapter 9: Strategy Review, Evaluation, and Control
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114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/27805
Sample Questions
Q1) A revised ________ should indicate how effective a firm's strategies have been in response to key opportunities and threats.
A) IFE matrix
B) mission
C) EFE matrix
D) vision
E) CPM matrix
Q2) The form of a Balanced Scorecard does not vary for different organizations or industries.
A)True
B)False
Q3) Proponents of the top-down approach contend that ________ are the only persons in the firm with the collective experience, acumen, and fiduciary responsibility to make key strategy decisions.
A) top executives
B) divisional managers
C) middle-level managers
D) lower-level managers
E) non-management employees
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Page 11
Chapter 10: Business Ethicssocial
Responsibilityenvironmental Sustainability
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) In an effort to manage ecological challenges, many companies are
A) moving environmental affairs from the staff side of the organization to the line side.
B) moving environmental affairs from the line side of the organization to the staff side.
C) making the chief operating officer report directly to the corporate environmental group.
D) omitting an environmental representative from their board of directors.
E) purging environmental values from their mission statements.
Q2) The percentage of persons age 65 or older exceeds 20 percent in Japan, Italy, and Germany.
A)True
B)False
Q3) Environmental advocacy groups now have ________ Americans as members.
A) approximately 100,000
B) just under a million
C) close to 5 million
D) over 20 million
E) almost a billion
Q4) Within an organization, who is responsible for providing ethics leadership?
Page 12
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Chapter 11: Globalinternational Issues
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) Before entering international markets, firms should do research to try and diminish the risk of doing business in new markets.
A)True
B)False
Q2) High corporate tax rates ________.
A) encourage investment in new factories
B) provide strong incentives to avoid and evade taxes
C) attract foreign investors
D) makes a nation a desirable location for investment
E) have been a growing trend since the 1980s
Q3) A global strategy means considering individual countries distinctly, one at a time, when designing, producing, and marketing products.
A)True
B)False
Q4) In China, one should eat heartily to demonstrate enjoyment of the food.
A)True
B)False
Q5) List some of the diverse and unique risks that face multinational corporations.
Q6) Explain some of the forces leading companies to pursue international operations.
Page 13
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