Business Strategy
Exam Bank
Course Introduction
Business Strategy explores the fundamental concepts, frameworks, and tools used by organizations to achieve long-term competitive advantage in dynamic markets. The course covers the analysis of industry structure, internal resources and capabilities, and the formulation and implementation of effective strategies at both the business and corporate levels. Through case studies, simulations, and real-world applications, students learn to evaluate external opportunities and threats, assess organizational strengths and weaknesses, and make strategic decisions that align with organizational goals. Emphasis is placed on critical thinking, problem-solving, and the ethical considerations involved in strategy development and execution.
Recommended Textbook
Strategic Management and Business Policy 13th Edition by Thomas L. Wheelen
Available Study Resources on Quizplus
12 Chapters
1260 Verified Questions
1260 Flashcards
Source URL: https://quizplus.com/study-set/1452 Page 2
Chapter 1: Basic Concepts in Strategic Management
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/28808
Sample Questions
Q1) Top-down planning that emphasizes formal strategy formulation and leaves the implementation issues to lower management levels is known as
A)forecast-based planning.
B)externally-oriented planning.
C)strategic management.
D)basic financial planning.
E)none of the above
Answer: B
Q2) Knowing a company is mindful of its impact on the environment seldom changes consumer buying habits.
A)True
B)False
Answer: False
Q3) A hierarchy of strategy emphasizes the need for the three levels of strategy to complement and support one another.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Corporate Governance
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/28812
Sample Questions
Q1) The average board member of a U.S.Fortune 500 firm serves on ________ boards.
A)3
B)6
C)9
D)12
E)only 1
Answer: A
Q2) Which of the following is NOT a task of the board of directors in strategic management?
A)to monitor
B)to implement
C)to influence
D)to initiate and determine
E)to evaluate
Answer: B
Q3) The more active professional boards are being replaced by the board as a rubber stamp of the CEO.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Ethics and Social Responsibility in Strategic Management
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/28813
Sample Questions
Q1) Who said that the social responsibility of business is a "fundamentally subversive doctrine" and that the one social responsibility of business is "to use its resources and engage in activities designed to increase its profits so long as it stays with the rules of the game..."?
A)Adam Smith
B)Edward Freeman
C)Archie Carroll
D)William C. Norris
E)Milton Friedman
Answer: E
Q2) Society generally expects firms to work with employees and the company to plan for layoffs.This is an example of which of Carroll's responsibilities?
A)economic
B)legal
C)justice
D)ethical
E)discretionary
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Environmental Scanning and Industry Analysis
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/28814
Sample Questions
Q1) According to Michael Porter, a high force can be regarded as threat because it is likely to reduce profits.
A)True
B)False
Q2) According to Porter's model, a strong or high force is likely to reduce profits and can be regarded as a(n)
A)benefit.
B)opportunity.
C)advantage.
D)threat.
E)risk.
Q3) What are the key environmental trends that are judged to have a medium to high probability of occurrence and a medium to high probability of impact on the corporation?
A)external strategic factors
B)scenarios
C)industry forces
D)strategic issues
E)historical concerns
Q4) Describe Porter's approach to industry analysis.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Internal Scanning and Organizational Analysis
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/28815
Sample Questions
Q1) An example of the promotion variable of the marketing mix is A)advertising.
B)discounts
C)location.
D)services.
E)quality.
Q2) The rate at which a firm's underlying resources, capabilities, or core competencies can be duplicated by others is called
A)replicability.
B)transparency.
C)imitability.
D)durability.
E)transferability.
Q3) Knowledge that can be easily articulated and communicated is known as A)tacit knowledge.
B)explicit knowledge.
C)imitable knowledge.
D)transferable knowledge.
E)durable knowledge.
Q4) What is R & D intensity?
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Strategy Formulation: Situation Analysis and Business Strategy
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/28816
Sample Questions
Q1) One company that has successfully found a propitious niche is
A)Coca-Cola.
B)PepsiCo.
C)Wal-Mart.
D)Frank J. Zamboni & Company.
E)Disney.
Q2) When AMD went after Intel's microprocessor business by developing low priced chips to go after the customers Intel didn't mind losing, it was using a frontal attack.
A)True
B)False
Q3) Which strategy has been used successfully by Yum! Brands to establish KFC and Pizza Hut restaurants across the globe?
A)joint venture
B)licensing arrangement
C)strategic alliance
D)marketing strategy
E)value-chain partnership
Q4) Discuss offensive tactics and defensive tactics.
Q5) What are timing tactics?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Strategy Formulation: Corporate Strategy
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/28817
Sample Questions
Q1) Vertical integration is the degree to which a firm operates vertically in multiple locations on an industry's value chain from extracting raw materials to manufacturing to retailing.
A)True
B)False
Q2) The stability strategies are really a lack of any strategy.
A)True
B)False
Q3) With taper integration, a firm internally makes 100% of its key supplies and completely control its distributors.
A)True
B)False
Q4) Which strategy did Delta choose when it acquired Northwest Airlines to obtain access to Northwest's Asian markets?
A)A retrenchment strategy using horizontal integration through internal means.
B)A horizontal integration strategy.
C)A stability strategy using concentric diversification.
D)A growth strategy using vertical integration through external means.
E)A retrenchment strategy using a concentration method.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Strategy Formulation: Functional Strategy and Strategic Choice
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/28818
Sample Questions
Q1) The first step in constructing a corporate scenario is to
A)develop a common-sized financial statement.
B)construct detailed pro forma financial statements.
C)decide upon how much risk management is willing to accept.
D)analyze the societal environment.
E)use industry scenarios to develop a set of assumptions about the task environment.
Q2) Which one of the following is NOT one of the questions that management should raise in their attempt to assess the importance to the corporation of stakeholders' concerns?
A)Which stakeholder group should be represented on the board of directors?
B)How will this decision affect each stakeholder?
C)How much of what the stakeholders want are they likely to get under a certain alternative?
D)What are the stakeholders likely to do if they don't get what they want?
E)What is the probability that the stakeholders will follow through on their demand?
Q3) What is outsourcing? What are the seven major outsourcing errors that should be avoided?
Q4) What is a functional strategy?
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Strategy Implementation: Organizing for Action
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/28819
Sample Questions
Q1) Under Stage III, when various units of the company optimize its sales and profits without regard to the overall corporation, the organization may be experiencing a A)crisis of leadership.
B)crisis of control.
C)crisis of autonomy.
D)crisis of decentralization.
E)crisis of empowerment.
Q2) Which structure is described as a "non-structure" by its virtual elimination of in-house business functions?
A)strategic business units
B)functional structure
C)network structure
D)divisional structure
E)matrix structure
Q3) Discuss the five stages of international development.
Q4) The corporation's life cycle can be extended by managerial and product innovation.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Strategy Implementation: Staffing and Directing
Available Study Resources on Quizplus for this Chatper
107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/28809
Sample Questions
Q1) Action plans are important for several reasons.Which one of the following is NOT one of these reasons?
A)If the action plan is implemented properly, it ensures that the strategy will be a success.
B)It serves as a link between strategy formulation and evaluation and control.
C)The action plan specifies what needs to be done differently from the way operations are currently carried out.
D)During the evaluation and control process, an action plan helps in the appraisal of the performance and identifying remedial actions needed.
E)Motivation may be improved with the assignment of specific responsibility.
Q2) Which type of chief executive officer who is highly knowledgeable in other industries and can manage diverse product lines would be appropriate for a corporation following a diversification strategy?
A)professional liquidator
B)dynamic industry expert
C)turnaround specialist
D)analytical portfolio manager
E)cautious profit planner
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Evaluation and Control
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/28810
Sample Questions
Q1) Distinguish between behavior and output controls.Provide examples of each.
Q2) Which of the following is not considered an adequate measure by itself of corporate performance?
A)ROI
B)EPS
C)ROE
D)Operating cash flow
E)all of the above
Q3) What is ERP? What are the three reasons why ERP could fail?
Q4) According to the text, using a long-term performance evaluation system, a company executive might be promised incentives such as
A)company cars.
B)company stock.
C)health insurance.
D)retirement plans.
E)vacations.
Q5) ROI stands for return on incentives.
A)True
B)False
Q6) Discuss the benchmarking process.
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Suggestions for Case Analysis
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/28811
Sample Questions
Q1) Which financial ratio indicates the ability of the company to meet its annual interest costs?
A)debt to asset ratio
B)debt to equity ratio
C)times interest earned
D)long-term debt to capital structure
E)coverage of fixed charges.
Q2) According to Yankelovich Partners survey firm, eight out of 10 portfolio managers and 35 percent of security analysts use annual reports when making decisions.
A)True
B)False
Q3) A typical financial analysis of a firm would include a study of the operating statements for five or so years.
A)True
B)False
Q4) A Z-value below 10 indicates significant credit problems.
A)True
B)False
Q5) What are common-size statements?
To view all questions and flashcards with answers, click on the resource link above. Page 14