Business Policy
Solved Exam Questions
Course Introduction
Business Policy is a capstone course that integrates concepts and analytical approaches from various business disciplines such as management, marketing, finance, and operations. The course focuses on the formulation, implementation, and evaluation of organizational strategies, equipping students with the tools to analyze internal and external environments, identify key issues, and make informed decisions that drive long-term organizational success. Through case studies and real-world scenarios, students develop critical thinking and problem-solving skills while understanding the ethical and global considerations of strategic management.
Recommended Textbook
Strategic Management Concepts and Cases 13th Edition by Fred R. David
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11 Chapters
1340 Verified Questions
1340 Flashcards
Source URL: https://quizplus.com/study-set/797
Page 2
Chapter 1: The Nature of Strategic Management
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132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/15809
Sample Questions
Q1) Usually,external opportunities and threats are
A) uncontrollable by a single organization.
B) controlled by governments.
C) not as important as internal strengths and weaknesses.
D) key functions in strategy implementation.
E) key functions in strategy exploitation.
Answer: A
Q2) Which phase of strategic management is called the action phase?
A) Strategy formulation
B) Strategy implementation
C) Strategy evaluation
D) Allocating resources
E) Measuring performance
Answer: B
Q3) Strategy formulation,implementation and evaluation activities occur at three hierarchical levels in a large diversified organization: corporate,divisional and functional.
A)True
B)False
Answer: True
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Page 3
Chapter 2: The Business Vision and Mission
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113 Verified Questions
113 Flashcards
Source URL: https://quizplus.com/quiz/15812
Sample Questions
Q1) Small,nonprofit organizations never develop mission statements.
A)True
B)False
Answer: False
Q2) According to recent studies,what percent of companies have used a mission statement sometime in the past five years?
A) 15%
B) 30%
C) 60%
D) 75%
E) 90%
Answer: E
Q3) An effective mission statement should do all of the following except:
A) include monetary amounts, numbers, percentages and ratios.
B) be inspiring.
C) reveal that the firm is environmentally responsible.
D) identify the utility of a firm's products.
E) be reconciliatory.
Answer: A
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Page 4
Chapter 3: The External Assessment
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128 Verified Questions
128 Flashcards
Source URL: https://quizplus.com/quiz/15813
Sample Questions
Q1) In 2008,which company had the dominant market share in the beverages industry?
A) Schweppes
B) Coca-Cola
C) Anheuser-Busch
D) Pepsi Bottling
E) Molson Coors Brewing
Answer: B
Q2) Who are the world's longest-living people?
A) Americans
B) Mexicans
C) Indians
D) Filipinos
E) Japanese
Answer: E
Q3) Major competitors' strengths may represent key threats.
A)True
B)False
Answer: True
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Page 5
Chapter 4: The Internal Assessment
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) Spending on research and development is steadily decreasing in the United States.
A)True
B)False
Q2) Which of the following were not mentioned as an example of cultural products?
A) Rites
B) Emotions
C) Rituals
D) Sagas
E) Symbols
Q3) All of the following are key questions that can reveal internal strengths and weaknesses in the management department except:
A) Is the organization's structure appropriate?
B) Are reward and control mechanisms effective?
C) Are the organization's products positioned well among competing products?
D) Does the firm use strategic management concepts?
E) Do managers delegate authority well?
Q4) Financial ratios are not applicable to nonprofit organizations.
A)True
B)False
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Chapter 5: Strategies in Action
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/15815
Sample Questions
Q1) Define and give examples of the two diversification strategies.
Q2) For all of 2008,global merger and acquisition volume increased 12 percent,putting it on par with the volume in 2005.
A)True
B)False
Q3) Integration strategies are sometimes collectively referred to as which of the following categories of strategies?
A) Horizontal integration
B) Diversification
C) Vertical integration
D) Stuck-in-the-middle
E) Hierarchical integration
Q4) Divestiture is the selling of all of a company's assets.
A)True
B)False
Q5) Market development includes introducing present products into new geographic areas.
A)True
B)False
Q6) Name at least six reasons for performing mergers or acquisitions.
Page 7
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Chapter 6: Strategy Analysis and Choice
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113 Verified Questions
113 Flashcards
Source URL: https://quizplus.com/quiz/15816
Sample Questions
Q1) What analytical tool has four quadrants based on two dimensions: competitive position and market growth?
A) Competitive Profile Matrix
B) Internal-External Matrix
C) SPACE Matrix
D) Grand Strategy Matrix
E) QSPM
Q2) The top row of a QSPM consists of alternative strategies derived from all of the following except:
A) Grand Strategy Matrix.
B) BCG Matrix.
C) SPACE Matrix.
D) CPM Matrix
E) IE Matrix.
Q3) In a BCG Matrix,all divisions are classified as either Question Marks,Stars,Cash Cows or Dogs.Define each of these terms.
Q4) 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.
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Chapter 7: Implementing Strategies: Management and Operations Issues
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122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/15817
Sample Questions
Q1) What are the advantages and disadvantages of a divisional organizational structure?
Q2) With the matrix structure it is common for functional resources to be duplicated.
A)True
B)False
Q3) Which of the following is not true about objectives?
A) They should be communicated throughout the organization.
B) They should have an appropriate time dimension.
C) They should use terms like "maximize," "minimize," and "as soon as possible."
D) They should be measurable.
E) They should be consistent.
Q4) 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
Q5) Discuss the do's and don'ts in developing organizational charts.
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Chapter 8: Implementing Strategies: Marketing, Finance/Accounting,
R&D, and MIS Issues
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114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/15818
Sample Questions
Q1) What is the most common type of financial budget?
A) Cash
B) Sales
C) Profits
D) Factory
E) Flexible
Q2) A firm can usually serve two or more market segments with the same strategy.
A)True
B)False
Q3) An EPS/EBIT chart can be constructed to determine the break-even point,where one financing alternative becomes more attractive than another.
A)True
B)False
Q4) With information technology,in some cases it is possible to do away with the workplace by allowing employees to work at home or anywhere,anytime.
A)True
B)False
Q5) Name five examples of marketing decisions that may require policies.
Q6) Identify and describe three approaches for determining a business's worth.
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Chapter 9: Strategy Review, Evaluation, and Control
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117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/15819
Sample Questions
Q1) ________ organizations require more elaborate and detailed strategy-evaluation systems than ________ ones because it is more difficult to coordinate efforts among different divisions and functional areas.
A) Non-profit; for-profit
B) For-profit; non-profit
C) Large; small
D) Small; large
E) Foreign; domestic
Q2) Financial ratios are used to compare a firm's performance over different time periods,compare the firm's performance to industry averages,and compare a firm's performance with
A) overall business standards.
B) the performance of international firms.
C) the performance of suppliers.
D) non-financial ratios.
E) the performance of competitors.
Q3) The end of the fiscal year is the best time to do strategy evaluation.
A)True
B)False
Q4) Explain why strategy evaluation can be a complex and sensitive undertaking.
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Chapter 10: Business Ethics/Social Responsibility/Environmental Sustainability
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120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/15810
Sample Questions
Q1) Compare and contrast Ralph Nader's and Milton Friedman's positions on social responsibility.With whose view do you agree?
Q2) The percentage of persons age 65 or older will reach 20 percent in the United States in 2018.
A)True
B)False
Q3) Many people consider it unethical for a firm to be socially irresponsible.
A)True
B)False
Q4) History has proven that the lower the trust and confidence of people in the ethics of an institution or society,the greater its economic strength.
A)True
B)False
Q5) Some ways in which firm's are working to be more environmentally responsible include using solar power and selling organic and environmentally friendly products.
A)True
B)False
Q6) Define a code of business ethics and its role in an organization.
Page 12
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Chapter 11: Global/International Issues
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) A firm's power and prestige in domestic markets may be significantly enhanced if the firm competes globally,
A) which can translate into improved negotiating power among important groups.
B) though this rarely results in a practical advantage.
C) but this can hurt its bargaining power with suppliers and distributors.
D) yet this does nothing to improve its position with creditors.
E) which can alienate the firm from its domestic creditors, suppliers, and distributors.
Q2) In Europe it is generally true that the farther _______ on the continent,the more participatory the management style.
A) south
B) east
C) west
D) north
E) southeast
Q3) Describe some key features of the European work environment.
Q4) What is the essence of the global challenge facing American firms?
Q5) Discuss some things firms can do to diminish the risk of doing business internationally.
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