Business Policy
Practice Questions
Course Introduction
Business Policy is a capstone course that focuses on the formulation, implementation, and evaluation of organizational strategies to achieve long-term objectives. It integrates knowledge from various business disciplines, encouraging students to analyze real-world cases and consider both internal and external factors affecting firms. Through the study of strategic management processes, decision-making models, and ethical considerations, students learn how to navigate complex business environments, develop competitive advantage, and steer organizations toward sustained success in dynamic markets.
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 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) From the military arena, tactics are about actions and techniques for winning battles, whereas strategy is about winning the war.
A)True
B)False
Answer: True
Q2) Strategy today is essentially a detailed plan which every member of the organization must follow to ensure success.
A)True
B)False
Answer: False
Q3) In regard to strategy making, most firms are likely to exhibit
A)a combination of design and emergence.
B)a process labeled as "planned emergence".
C)an interaction between strategic design, through formal top-level processes, and strategic enactment through decisions made by all management levels of the organization.
D)all of the above.
Answer: D
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3
Chapter 2: Industry Analysis
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58 Verified Questions
58 Flashcards
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Sample Questions
Q1) Formally scanning and analyzing the whole range of external influences continuously is the best approach.
A)True
B)False
Answer: False
Q2) Understanding the external environment of a firm requires one ultimately to identify
A)the opportunities to make profit in the industry.
B)the five forces identified by porter's model.
C)the barriers to entry and to exit in that industry.
D)the expected level of profit in the mid-term for that industry.
Answer: A
Q3) 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
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Chapter 3: Resources and Capabilities
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64 Verified Questions
64 Flashcards
Source URL: https://quizplus.com/quiz/47519
Sample Questions
Q1) 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
Q2) Truly successful firms
A)are told their strengths and weaknesses by external experts.
B)are honest enough to recognize their own true strengths and weaknesses themselves.
C)obtain confirmation of their strengths and weaknesses from outside experts.
D)b and c.
Answer: B
Q3) Path-dependent means that a company's capabilities today are the result of its history.
A)True
B)False
Answer: True
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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) For a firm to imitate the strategy of another firm, it must do four things: identify the target firm, incentivize the rival, diagnose the sources of competitive advantage, and acquire the resources needed.
A)True
B)False
Q2) The development of "collateralized debt obligations", by Drexel Burnham Lambert, shows that
A)well-paid bankers always come up with good ideas.
B)the financial system can be very fragile.
C)financial products are easily copied so first movers must quickly establish a large track record of successful trades.
D)a financial crisis was inevitable.
Q3) A "Blue ocean strategy" refers to the creation of entirely new markets. A)True
B)False
Q4) Differentiation means offering many product features that distinguish your product from everyone else's.
A)True
B)False
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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) To respond to changes in its external environment, making incremental changes is the best approach.
A)True
B)False
Q2) A dominant design is one which is the most noticeable, or receives the most publicity.
A)True
B)False
Q3) As the industry life cycle progresses, overall strategies need to
A)stay steady and not waver; don't change anything.
B)change in every major aspect e.g., product evolution, the nature of competition.
C)primarily focus on cost-cutting.
D)none of the above.
Q4) The industry life cycle consists of four stages: 1)Introductory, 2)Growth, 3)Plateau, and 4)Rejuvenation.
A)True
B)False
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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) Regarding de facto standards, a "tipping point" is when
A)a certain threshold of market share is reached, beyond which it just keeps rising irreversibly.
B)the market losers basically have to "tip" their excess product away.
C)it's as though the market losers "tip" their market shares into the winners bag.
D)customers finally realise who has the best product.
Q2) Invention and innovation
A)are closely related, so the same ingredients to success are required for both.
B)are related - but invention requires creativity whereas innovation requires subsequent cross functional collaboration.
C)are best performed by a single, integrated team.
D)are a cultural phenomenon which must be inculcated into the entire workforce.
Q3) De facto standards suffer from the following weakness:
A)they are characterized by uncertainty.
B)they tend to emerge slowly and / or haphazardly.
C)they are characterized by high development costs.
D)rivals may not accept them and fight against their adoption by the industry.
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Page 8
Chapter 7: Corporate Stategy
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74 Verified Questions
74 Flashcards
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Sample Questions
Q1) Of Michael Porter's three tests of whether a proposed diversification will create value, the most important one is usually
A)none. They are all equally important.
B)the "attractiveness" test.
C)the "cost of entry" test.
D)The "better-off" test.
Q2) A major problem with vertical integration is that a downturn in the end market affects the entire integrated value chain, representing possible unacceptably high risk.
A)True
B)False
Q3) In the GE/McKinsey Matrix, the industry attractiveness axis combines A)market growth rate and market size.
B)market profitability, cyclicality, inflation recovery and international potential.
C)profit and vertical integration.
D)a and b.
Q4) A franchise agreement is an example of an arm's length contract.
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 Deepwater Horizon oil spill taught us that
A)giant firms are often too ambitious.
B)even the most professional risk plans can ignore some major risks.
C)confused responsibilities can emerge from trying to coordinate complex teams and systems.
D)b and c.
Q2) The practical importance of budgets is that
A)senior executives and divisional managers are held accountable against the figures in these budgets.
B)the CEO is accountable to shareholders and analysts against these detailed predictions.
C)the individual figures don't matter, it is the process by which the numbers were reached that matters.
D)a and b.
Q3) A firm's culture could be shown by
A)the way a customer complaint is handled.
B)the firm's profitability.
C)the growth rate of profits.
D)how rapidly its financial results are produced.
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Page 10
Chapter 9: Global Strategies and the Multinational Corporation
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66 Verified Questions
66 Flashcards
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Sample Questions
Q1) The "triad doctrine" no longer works because A)the triads were wiped out in the 1990s.
B)linking to organized crime doesn't work because it is actually not well organized.
C)the world now has more than three major economic centres.
D)in reality there is no such thing as an economic centre of activity.
Q2) Besides demand conditions, the other factors in Porter's national diamond are A)strategy, structure, and rivalry, such as intense domestic competition.
B)factor conditions, such as the scarcity or abundance of certain resources.
C)related and supporting industries, such as clusters of complementary or supporting industries.
D)all of the above.
Q3) Sheltered industries are protected by their A)perishability.
B)transport difficulties and high transport costs.
C)very small size of operation and lack of scale economies.
D)any of the above.
Q4) The growth of world trade has exceeded growth in the world's economies.
A)True
B)False
Page 11
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Chapter 10: Corporate Responsibility
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35 Verified Questions
35 Flashcards
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Sample
Questions
Q1) The Enron, Worldcom, and Madoff scandals featured serious ethical breaches including falsifying accounts resulting in substantial financial losses to investors.
A)True
B)False
Q2) A long-term underlying cause of the financial crisis was
A)'Light touch' regulation which encouraged financial innovation.
B)Lehman Brothers.
C)increased lending by Chinese savers.
D)governments selling CDOs.
Q3) Researchers found that higher sales and market share can be attained by employing sustainable strategies.
A)True
B)False
Q4) Principal concerns of corporate responsibility include
A)profit and shareholder wealth maximization.
B)social and ecological sustainability.
C)equity, occupational health and safety, ethics, social and ecological sustainability.
D)return on equity and protecting the environment.
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Page 12