Business Strategy and Policy Exam Preparation Guide
Course Introduction
Business Strategy and Policy explores the formulation, implementation, and evaluation of strategies that drive organizational success in complex and competitive environments. The course integrates concepts from management, economics, marketing, and finance to analyze how firms gain and sustain competitive advantage. Students learn to assess internal and external environments, define organizational vision and goals, and make strategic decisions using real-world case studies and analytical frameworks. Emphasis is also placed on the role of corporate governance, ethics, and public policy in shaping strategic choices, helping students develop critical thinking skills and practical tools for effective strategic management.
Recommended Textbook
Strategic Management Text and Cases 9th Edition by Gregory Dess
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12 Chapters
1223 Verified Questions
1223 Flashcards
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Chapter 1: Strategic Management: Creating Competitive Advantages
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106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/29766
Sample Questions
Q1) Supplier stakeholders are concerned with
A)assurance of a continued relationship with the firm.
B)employee benefits.
C)safe working conditions.
D)capital appreciation.
Answer: A
Q2) Vision statements are used to create a better understanding of the overall purpose and direction of the organization.Vision statements
A)are very specific.
B)provide specific objectives.
C)set organizational structure.
D)are massively inspiring.
Answer: D
Q3) Corporate-level strategy looks at how to manage the ________ of its businesses to create synergies.
A)portfolio
B)stock prices
C)competitors
D)market pricing
Answer: A
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Chapter 2: Analyzing the External Environment of the Firm:
Creating Competitive Advantages
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) Scenario analysis is a superficial approach to forecasting that seeks to explore possible developments that many only be connected to the past.
A)True
B)False
Answer: False
Q2) It is important to question the reliability of forecasts because A)if predictions are too low,a company like Motel 6 might build too many units and thus have a surplus of capacity.
B)uncertainty is black and white,and therefore the gray areas are unimportant.
C)underestimating uncertainty can lead to good competitive strategies.
D)the growth new industries,such as that of telecommunications,cannot be predicted. Answer: A
Q3) Technological innovations can create entirely new industries and alter the boundaries of industries.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Assessing the Internal Environment of the Firm
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) A wide variety of firm resources that are costly to imitate due to the social engineering that is required being beyond the capability of competitors include interpersonal relations among managers in the firm,its culture,and its reputation with its suppliers and customers.Such competitive advantages are based upon
A)path dependency.
B)social complexity.
C)physical uniqueness.
D)tangible resources.
Answer: B
Q2) Employees will be able to obtain a proportionately high level of profits they generate (relative to the firm)if
A)suppliers are loyal to the firm.
B)their expertise is firm-specific.
C)the cost to the firm of replacing them is high.
D)the firm's resources are path dependent.
Answer: C
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Chapter 4: Recognizing a Firms Intellectual Assets: Moving
Beyond a Firms Tangible Resources
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) If employees are working effectively in teams and sharing their knowledge and learning from each other,they will be ________ to add value to the firm and they also will be ________ to leave the organization because of the loyalties and social ties that they develop over time.
A)more likely;more likely
B)less likely;more likely
C)less likely;less likely
D)more likely;less likely
Q2) New knowledge involves the continual interaction between ________ and ________ knowledge.
A)intellectual;pragmatic
B)theoretical;practical
C)tacit;explicit
D)detailed;tacit
Q3) An advantage of effective social networks that might help in career success is
A)public information from personal contacts.
B)private information from personal contacts.
C)trustworthy public information.
D)untrustworthy private information.
Page 6
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Chapter 5: Business-Level Strategy: Creating and Sustaining Competitive Advantages
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) In a given market,key technology no longer has patent protection,experience is not an advantage,and there is a growing need to compete on price.What stage of its life cycle is the market in?
A)introduction
B)growth
C)maturity
D)decline
Q2) What is a focus strategy? Provide an example where this has been implemented successfully.
Q3) Piecemeal productivity improvements can be used by a mature business in need of a turnaround.
A)True
B)False
Q4) Once established,competitive advantages last forever whether the firm is in a high technology environment or not.
A)True
B)False
Q5) What are the pitfalls of the overall cost leadership strategy? Provide an example for each pitfall and explain why it is a pitfall.
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Chapter 6: Corporate-Level Strategy: Creating Value Through Diversification
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Explain the purpose of antitakeover tactics and provide a specific example of an actual antitakeover tactic.
Q2) Shaw Industries,a giant carpet manufacturer,increases its control over raw materials by producing much of its own polypropylene fiber,a key input to its manufacturing process.This is an example of creating value by using
A)related diversification to acquire market power by pooling negotiating power.
B)related diversification to acquire economies of scope by leveraging core competencies.
C)related diversification to acquire market power by integrating vertically.
D)related diversification to acquire economies of scope by integrating vertically to acquire market power.
Q3) Portfolio models such as the BCG Portfolio matrix are limited in value because they only compare the SBU on four dimensions.
A)True
B)False
Q4) Discuss the three basic means by which a firm can go about achieving synergy and create value for its shareholders.
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Chapter 7: International Strategy: Creating Value in Global Markets
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) A domestic corporation considering international expansion for the first time typically will follow which of these paths?
A)It will start by implementing a wholly owned foreign subsidiary.
B)It will implement a low-risk,low-control strategy such as exporting.
C)It will license or franchise its operations.
D)It will form a joint venture with a reputable foreign producer.
Q2) Industries in which proportionally more value is added in ________ activities are more likely to benefit from a global strategy.
A)downstream
B)upstream
C)marketing
D)sales
Q3) Which of the following describes the most typical order of entry into foreign markets?
A)franchising,licensing,exporting,joint venture,and wholly owned subsidiary
B)exporting,franchising,licensing,joint venture,and wholly owned subsidiary
C)licensing,exporting,franchising,joint venture,and wholly owned subsidiary
D)exporting,licensing,franchising,joint venture,and wholly owned subsidiary
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Chapter 8: Entrepreneurial Strategy and Competitive Dynamics
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94 Verified Questions
94 Flashcards
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Sample Questions
Q1) Running Press launched the Miniature Editions line of books in 1993.Today it has sold over 20 million copies.Which of the following most closely represents their strategy?
A)differentiation
B)overall cost leadership
C)focus
D)combination
Q2) The evaluation phase of opportunity recognition occurs when an entrepreneur has an insight about a new business venture,often based on prior knowledge.
A)True
B)False
Q3) If similar competitors vie for the same customers in a marketplace,they are likely to escalate their competitive strategy through a reactive series of actions and responses.
A)True
B)False
Q4) The likelihood that a competitor will launch an attack depends upon many factors.Discuss threat analysis and how it is used.
Q5) Explain what a pioneering new entry means and when it is appropriate to use it.
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Chapter 9: Strategic Control and Corporate Governance
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91 Verified Questions
91 Flashcards
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Sample Questions
Q1) Rules and regulations,rather than culture or rewards,would be used for strategic control at which type of company?
A)software developer
B)stock brokerage firm
C)manufacturer of mass produced products
D)high tech research facility
Q2) Single-loop learning,according to Chris Argyris,is most appropriate when the environment is ________,goals and objective can be measured with a ________ of certainty,and there is ________ need for complex measures of performance.
A)stable;high level;little
B)unstable;low level;great
C)stable;low level;great
D)unstable;high level;little
Q3) Top managers at ABC Company meet every Friday to review daily operational reports and year to date data.This is an example of
A)behavioral control.
B)informational control.
C)strategy formulation.
D)strategy implementation.
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11
Chapter 10: Creating Effective Organizational Designs
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86 Verified Questions
86 Flashcards
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Sample Questions
Q1) What is the name of the practice that many modular organization use to grow?
A)operational effectiveness
B)outsourcing
C)strategic leveraging
D)strategic enabling
Q2) Operational decision making in a large business places excessive demands on top management of the firm.
A)True
B)False
Q3) According to author,Jeffrey Pfeffer,which of the following is not an advantage of teams?
A)Teams interact so closely and therefore coordination and integration becomes unnecessary.
B)Teams substitute peer-based control for hierarchical control of work.
C)Teams often develop more creative solutions because they share.
D)Teams permit the absorption of administrative tasks previously performed by specialists.
Q4) Discuss the advantages and disadvantages of a simple organizational structure.
Q5) What is organizational structure and why is it important?
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Chapter 11: Strategic Leadership: Creating a Learning
Organization and an Ethical Organization
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104 Verified Questions
104 Flashcards
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Sample Questions
Q1) Compliance-based ethic programs typically are designed by A)management.
B)employees.
C)shareholders.
D)corporate counsel.
Q2) Refusal to share information,conflicts over resources,conflicts between departments and divisions,and petty interpersonal differences are symptoms of which type of barrier to change?
A)systemic barriers
B)political barriers
C)behavioral barriers
D)entry barriers
Q3) Fisk Johnson is the fifth generation CEO of the family firm,SC Johnson.The combination of the ________,its ________,and its story-driven culture reinforce the willingness of the firm to lead the market in environmental awareness.
A)ownership structure of the firm,strong leader
B)listing of fragrances,financial awareness
C)ownership structure of the firm,employee union
D)employee participation,weak leadership
Page 13
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Chapter 12: Managing Innovation and Fostering Corporate
Entrepreneurship
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93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/29777
Sample Questions
Q1) Walmart has an aggressive pricing structure that has forced smaller,local retailers out of business in many markets.Local cities responded with regulations that make it difficult for Walmart to move into or expand operations in these areas.This is an example of
A)competitive aggressiveness not always leading to competitive advantages.
B)community regulations not leading to competitive advantages.
C)competitive aggressiveness always leading to competitive advantages.
D)community regulations diminishing small business choices.
Q2) Financial risk taking involves the risk an executive assumes in taking a stand in favor of a strategic course of action.
A)True
B)False
Q3) The term strategic envelope refers to the scope of innovation efforts of a firm.
A)True
B)False
Q4) Which of the following is not characteristic of a disruptive innovation?
A)It is usually more sophisticated technologically.
B)It appeals to less demanding customers.
C)It is typically a less expensive solution for meeting a need.
D)It usually takes root in a new market or the low-end of an existing market.
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