Business Policy
Mock Exam
Course Introduction
Business Policy is a capstone course that integrates concepts from various business disciplines to analyze and formulate effective organizational strategies. It emphasizes the development, implementation, and evaluation of policies that guide business operations in complex and dynamic environments. The course explores strategic management processes, competitive analysis, corporate governance, and decision-making frameworks. Through case studies and simulations, students learn to diagnose business challenges, propose actionable solutions, and understand ethical and global considerations in policy development, preparing them for leadership roles in diverse organizational settings.
Recommended Textbook
Strategic Management and Business Policy 15th Global Edition by J. David Hunger
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Chapter 1: Basic Concepts in Strategic Management
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) A program or tactic is
A) a detailed cost statement in terms of dollars.
B) a system of sequential steps.
C) a statement of the activities needed to support a strategy.
D) the process by which strategies and policies are put into action.
E) none of the above
Answer: C
Q2) Hierarchy of strategy is a nesting of one strategy within another so that they complement and support one another.
A)True
B)False
Answer: True
Q3) What are the benefits of strategic management?
Answer: The three most highly rated benefits of strategic management are:
1.Clearer sense of strategic vision for the organization
2.Sharper focus on what is strategically important
3.Improved understanding of a rapidly changing environment
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Chapter 2: Corporate Governance
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99 Verified Questions
99 Flashcards
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Sample Questions
Q1) The vast majority of inside directors are from all of the following EXCEPT
A) lower-level operating employee.
B) president of the corporation.
C) vice-president of operational units.
D) chief executive officer.
E) vice-president of functional units.
Answer: A
Q2) What are the responsibilities of top management?
Answer: Top management responsibilities involve getting things accomplished through and with others to meet the corporate objectives.Top management's job is multidimensional and oriented toward the welfare of the total organization.Specific top management tasks vary from firm-to-firm and developed from an analysis of the mission,objectives,strategies,and key activities of the corporation.Tasks are typically divided among the members of the top management team. The CEO,with the support of the rest of the top management team,must successfully handle two primary responsibilities crucial to the effective strategic management of the corporation: (1)provide executive leadership and a strategic vision,and (2)manage the strategic planning process.
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Page 4
Chapter 3: Social Responsibility and Ethics in Strategic Management
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103 Verified Questions
103 Flashcards
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Sample Questions
Q1) Target's efforts to offer brands from companies with ethical track records and community involvement help the retailer attract socially concerned younger consumers.This is an example of
A) social capital.
B) sustainability.
C) a legal responsibility.
D) environmental scanning.
E) industry analysis.
Answer: A
Q2) Law refers to formal codes that permit or forbid certain behaviors and may or may not enforce ethics or morality.
A)True
B)False
Answer: True
Q3) The concept of social responsibility proposes that a corporation has responsibilities to society that extend beyond making a profit.
A)True
B)False
Answer: True
Page 5
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Chapter 4: Environmental Scanning and Industry Analysis
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) When the pressure for local responsiveness is strong and the pressure for coordination is weak for multi-national corporations in an industry,the industry will tend to become
A) global.
B) consolidated.
C) multi-domestic.
D) risky.
E) indigenous.
Q2) ________ rests on the assumption that the world is reasonably consistent and changes slowly in the short run.
A) Statistical modeling
B) Scenario-writing
C) The Delphi technique
D) Brainstorming
E) Extrapolation
Q3) What are the two factors that tend to determine whether an industry will be primarily multi-domestic or primarily global?
Q4) List eight current sociocultural trends in the United States that are transforming North America and the world.
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Chapter 5: Organizational Analysis and Competitive Advantage
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110 Verified Questions
110 Flashcards
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Sample Questions
Q1) Competencies are the organization's assets and are the basic building blocks of the organization.
A)True
B)False
Q2) Describe Barney's VRIO framework.
Q3) The mix in the workplace of people from different races,cultures,and backgrounds is referred to as
A) demographics.
B) diversity.
C) quality of work life.
D) globalization.
E) internationalization.
Q4) The business model used by IBM to make money not selling IBM products,but by selling its expertise to improve their customers operations is the
A) profit pyramid model.
B) advertising model.
C) customer solutions model.
D) efficiency model.
E) entrepreneurial model.
Page 7
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Chapter 6: Strategy Formulation: Business Strategy
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113 Verified Questions
113 Flashcards
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Sample Questions
Q1) The active cooperation of firms within an industry to reduce output and raise prices to get around the normal law of supply and demand is referred to as
A) a strategic alliance.
B) collusion.
C) a strategic roll up.
D) a merger.
E) licensing.
Q2) One desired outcome of analyzing strategic factors is identifying niches where an organization can use its ________ to take advantage of a particular market opportunity.
A) differentiating capabilities.
B) distinctive competencies.
C) situational proficiency.
D) core competencies.
E) distinctive characteristics.
Q3) SWOT is an acronym that stands for Strategy,Weaknesses,Opportunities,and Threats.
A)True
B)False
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Chapter 7: Strategy Formulation: Corporate Strategy
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) The strategy which takes place in three basic phases of contraction,consolidation,and rebirth is
A) merger.
B) liquidation.
C) integration.
D) divestment.
E) turnaround.
Q2) Discuss the two basic growth strategies.
Q3) The stability strategy is appropriate for all of the following circumstances EXCEPT
A) useful in the short-run but can be dangerous if followed too long.
B) most appropriate for reasonably successful corporations in a reasonably predictable environment.
C) when a firm is continuing its current activities without a significant change in direction.
D) appropriate when the industry is in decline.
E) popular with small business owners who have found a niche and are happy with their success.
Q4) Define corporate parenting.
Q5) What is portfolio analysis?
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Chapter 8: Strategy Formulation: Functional Strategy and Strategic Choice
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) What does a financial strategy examine?
Q2) If a company wishes to be a technological leader and also maintain a cost advantage,the appropriate R&D strategy would be to
A) increase the cost of the product.
B) lower the cost of the product or value activities by learning from the leader's experience.
C) avoid R&D costs through imitation.
D) create low-cost ways of performing value activities.
E) innovate in other activities to increase buyer value.
Q3) Once the best strategic alternative is selected,the broad guidelines for its implementation are then defined by A) trade-offs.
B) policies.
C) procedures.
D) resource allocation.
E) strategic options.
Q4) The continuous improvement system was developed by Deming. A)True
B)False
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Chapter 9: Strategy Implementation: Global Strategy
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Research indicates that corporations using cross-national teams,whose members have international experience and communicate frequently with overseas managers,have greater product development capabilities.
A)True
B)False
Q2) Forming a joint venture between a foreign corporation and a domestic company is the most popular strategy used to enter a new country.
A)True
B)False
Q3) The vast majority of companies select employees for an international assignment based on their
A) language skills.
B) ability to adapt.
C) cultural sensitivity.
D) technical expertise.
E) position in the organization.
Q4) The BOT concept stands for Build,Operate,Transfer.
A)True
B)False
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Chapter 10: Strategy Implementation: Organizing and Structure
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) How can a corporation's life cycle be extended?
Q2) Successful late movers tend to be large firms with considerable resources and related experience.
A)True
B)False
Q3) An offensive tactic usually takes place in the firm's own current market position.
A)True
B)False
Q4) Which market location tactic is being used when a company goes head to head with its competitor matching in every category from price to promotion to distribution channel?
A) flanking maneuver
B) bypass attack
C) encirclement
D) guerrilla warfare
E) frontal assault
Q5) What are the four stages of corporate development?
Q6) Discuss Chandler's conclusion concerning strategy.
Q7) Discuss the network structure.
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Chapter 11: Strategy Implementation: Staffing and Directing
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110 Flashcards
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Sample Questions
Q1) One of the real benefits of MBO is the reduction in the amount of
A) internal politics.
B) culture clash.
C) overhead expenses.
D) defects.
E) compensation paid.
Q2) Executive succession is the process of replacing a key top manager.
A)True
B)False
Q3) While an organization's culture can exert a powerful influence on the behavior of all employees,it can seldom affect a company's ability to shift its strategic direction.
A)True
B)False
Q4) A key to the effective management of change is communication.
A)True
B)False
Q5) When downsizing,it is important to eliminate all R&D and maintenance expenses.
A)True
B)False
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Chapter 12: Evaluation and Control
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) The revenue center is measured in terms of efficiency.
A)True
B)False
Q2) One of the key reasons for the success of Walmart has been management's use of the company's sophisticated information system to control purchasing decisions.
A)True
B)False
Q3) Unlike ROI,managers cannot manipulate the numbers of EVA.
A)True
B)False
Q4) The evaluation and control process ensures that the company is achieving what it set out to accomplish.
A)True
B)False
Q5) Stickiness and eyeballs are two non-financial performance measures used by Internet business ventures.
A)True
B)False
Q6) Discuss the guidelines for proper control.
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Chapter 13: Suggestions for Case Analysis
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Sample Questions
Q1) Among the most useful and important documents that can be used to understand why actions were taken are
A) news releases.
B) product specification reports.
C) its corporate history.
D) annual reports.
E) 10-K forms.
Q2) Which financial ratio measures the number of times that average inventory of finished goods was turned over or sold during a period of time?
A) days of inventory
B) asset turnover
C) average collection period
D) fixed asset turnover
E) inventory turnover
Q3) What are constant dollars and why are they important?
Q4) A typical financial analysis of a firm would include a study of the operating statements for five or so years.
A)True
B)False
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