Business Policy
Midterm Exam
Course Introduction
Business Policy explores the strategic management processes that organizations use to define their direction, make decisions, and achieve long-term objectives. This course examines the formulation, implementation, and evaluation of business strategies, with an emphasis on the integration of knowledge from various business disciplines such as marketing, finance, human resources, and operations. Students will analyze real-world case studies to understand how organizations respond to environmental challenges, manage resources, and maintain competitive advantage, while considering ethical, societal, and global perspectives.
Recommended Textbook
Foundations of Strategy 1st Canadian Edition by Robert M. Grant
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10 Chapters
579 Verified Questions
579 Flashcards
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Page 2
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) Modern strategy applied to the business world shares with military strategy
A)only linguistic roots.
B)some authors such as sun tzu and his "art of war".
C)the existence of resources, conflict, and battle between players.
D)decisions of significance to overall success, and major resource commitment.
Answer: D
Q2) The success of an organization, in general, depends on the following:
A)being consistently focused on an achievable goal.
B)having a strong and in-depth knowledge of the competitive environmen.
C)realistic appraisal of its own strengths and weaknesses.
D)all of the above plus the ability to implement strategy with commitment, consistency and determination.
Answer: D
Q3) If a firm's strategy ensures it is consistent with both its internal and external environment, it achieves
A)strategic fit.
B)strategic adjustment.
C)environment consistency.
D)political and social fit.
Answer: A
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Chapter 2: Industry Analysis
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58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/47518
Sample Questions
Q1) A 6 force-complements-should arguably be added to Porter's 5 Forces Model because
A)Porter's original analysis was inadequate.
B)it's clear that since Porter devised his model, Complementers have evidently become more important.
C)Porter's model was developed over 30 years ago, so is old-fashioned. D)b and c.
Answer: B
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
Q3) Barriers to exit are
A)the non-recoverable costs of quitting or scaling down capacity in an industry.
B)legal restrictions which prevent a firm from leaving an industry.
C)the opposite of barriers to entry.
D)of no consequence if you don't plan to leave the industry.
Answer: A
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Page 4
Chapter 3: Resources and Capabilities
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64 Verified Questions
64 Flashcards
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Sample Questions
Q1) 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
Q2) Spending money raising market perceptions of Hyundai's brand was
A)a worthwhile investment in intangible resources.
B)a worthwhile investment in human resources.
C)eventually recognized in the balance sheet.
D)a waste of money.
Answer: A
Q3) The difference between a capability and a competence is
A)a competence is core to a firm's operations.
B)a capability is necessary to survive, but a competence is essential to thrive.
C)a competence is necessary to survive, but a capability is essential to thrive.
D)no difference in this textbook where they are taken as interchangeable.
Answer: D
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Chapter 4: The Nature and Sources of Competitive
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50 Verified Questions
50 Flashcards
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Sample Questions
Q1) Starting a price war immediately a firm enters your industry is an entry-deterrent tactic that may dissuade other potential entrants for years to come.
A)True
B)False
Q2) A "Blue ocean strategy" refers to the creation of entirely new markets.
A)True
B)False
Q3) The fundamental choice for capability acquisitions is the decision to either
A)buy them or sell them.
B)develop them or maintain them.
C)buy them or build them.
D)buy them or copy them.
Q4) The success of Japanese Total Quality Management
A)shows that it is possible to pursue cost leadership and differentiation strategies simultaneously.
B)refutes the perceived trade-off between low cost products and high quality products.
C)has made porter's analysis outdated.
D)b and c.
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Chapter 5: Industry Evolution and Strategic Change
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53 Verified Questions
53 Flashcards
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Sample Questions
Q1) Firms entering a new industry who were already established in a related industry are sometimes known as
A)dallaglio entrants.
B)de aglio entrants.
C)de alio entrants.
D)de olio entrants.
Q2) Emphasis often shifts from product innovation to process innovation, once a dominant design emerges.
A)True
B)False
Q3) A technical standard
A)only occurs in computing when there is a network effect.
B)emerges when there are interconnectivity and interface compatibility issues.
C)can emerge for safety and other reasons from standards bodies eg ISO.
D)b and c.
Q4) Barriers to change include
A)organizational routines.
B)social and political structures.
C)conformity.
D)a, b, and c.
Page 7
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Chapter 6: Technology-Based Industries and the Management of Innovation
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67 Verified Questions
67 Flashcards
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Sample Questions
Q1) The chief examples of property rights concerning innovations are
A)copyrights, patents, and trademarks.
B)patents, goodwill, and trademarks.
C)know-how, skills, and trade secrets.
D)trademarks, copyrights, and tangible assets.
Q2) If a firm or a person secures a patent, then commercial success is assured.
A)True
B)False
Q3) The main advantage of licensing as a strategy to exploit innovation is
A)it requires little involvement in complementary resources by the innovator.
B)it's a way to operate as a virtual company.
C)it saves on costs, so is vastly more profitable for the innovator.
D)it's always successful and highly profitable.
Q4) The value created by an innovation is A)shared equally among the players.
B)determined by customer loyalty.
C)captured by the player possessing the largest market share of the industry.
D)distributed amongst the various players involved in no certain way.
Page 8
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Chapter 7: Corporate Stategy
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74 Verified Questions
74 Flashcards
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Sample Questions
Q1) Where there is volatile, uncertain demand for a resource, it is more likely that this resource will be outsourced, but NOT in all cases.
A)True
B)False
Q2) A franchise agreement is an example of an arm's length contract.
A)True
B)False
Q3) If the transaction costs associated with buying in a product or service from the market costs more than the firm providing this internally, then the firm will outsource.
A)True
B)False
Q4) Cash-rich companies in low-growth, declining industries have to diversify to avoid having to pay huge costly dividends to shareholders.
A)True
B)False
Q5) "How profitable do we want to be?" is the starting-point of corporate strategy.
A)True
B)False
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Chapter 8: Realizing Stategy
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53 Verified Questions
53 Flashcards
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Sample Questions
Q1) The main components of financial plans are
A)the Income Statement and the Balance Sheet.
B)the Balance Sheet and the Cash Flow forecast.
C)the capital budget and the operating budget.
D)all of the above.
Q2) A good strategic plan is less important than A)a good month's financial results.
B)the process of strategic planning.
C)a good Chief Finance Officer.
D)a good Chief Human Resources Officer.
Q3) In a multidivisional structure each division is responsible for A)a major market or country.
B)a major function or task of the firm.
C)all functions necessary to produce one range of products.
D)either a or b.
Q4) Departments within a firm rarely have their own departmental goals conflicting with other departments' goals; they are exclusively driven by the firm's overall goals.
A)True
B)False
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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) Internationalization has
A)increased global efficiency but reduced consumer choice.
B)increased global efficiency and growth options for large and small firms.
C)increased global efficiency and growth options, and widened consumer choice.
D)increased global efficiency and growth options but reduced consumer choice.
Q2) Underlying both direct investment and trade are the quests to
A)exploit foreign resources, capabilities, and competitive advantage.
B)exploit foreign resources, capabilities and markets.
C)limit foreign competitive advantages.
D)limit foreign companies' ambitions.
Q3) Porter's national diamond identifies some factors that
A)determine a country's competitive advantage for a sector.
B)determine a country's national income.
C)determine the growth rate of a country's national income.
D)determine the growth rate of its exports.
Q4) Firms try to locate production of each stage of the value chain in those countries where transport costs to the next stage are the lowest.
A)True
B)False
Page 11
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Chapter 10: Corporate Responsibility
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35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/47526
Sample Questions
Q1) Most companies in the past decade have taken a status quo approach to corporate responsibility.
A)True
B)False
Q2) Select the best answer. Some of the benefits to firms from employing sustainable strategies include
A)improved reputation and profit.
B)improved brand reputation, premium pricing and margins, attracting and retaining employees.
C)protecting the environment and earning industry respect.
D)none of the above.
Q3) Hamel argues that modern business leaders need to be
A)all-wise decision makers and iron-fisted disciplinarians.
B)constitution writers, social architects, and entrepreneurs of meaning.
C)information system architects and social entrepreneurs.
D)IT architects, constitutional experts, and successful entrepreneurs.
Q4) Researchers found that higher sales and market share can be attained by employing sustainable strategies.
A)True
B)False
Page 12
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