Business Strategy Exam Preparation
Guide
Course Introduction
Business Strategy is a comprehensive course that introduces students to the fundamental concepts, tools, and frameworks used in the formulation and implementation of organizational strategies. Through case studies, theoretical models, and practical applications, students learn how organizations analyze competitive environments, set long-term objectives, allocate resources, and adapt to changing markets. The course covers key areas such as industry analysis, corporate and competitive strategy, strategic planning, and execution, enabling students to understand how businesses achieve and sustain a competitive advantage in dynamic and global markets.
Recommended Textbook
Strategic Management Text and Cases 6th Edition by Gregory Dess
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12 Chapters
1213 Verified Questions
1213 Flashcards
Source URL: https://quizplus.com/study-set/207
Page 2
Chapter 1: Strategic Management Creating Competitive Advantages
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101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/3021
Sample Questions
Q1) Strategy formulation and implementation is a challenging ongoing process. To be effective, it should not involve
A) the CEO and the board of directors.
B) the board of directors, CEO, and CFO.
C) rivals.
D) line and staff managers.
Answer: C
Q2) The ROI on sustainability efforts can be difficult to quantify because
A) an excess of necessary data for accurate calculation is readily available.
B) benefits from such projects are tangible.
C) the payback period is on a different time frame.
D) the payback period is on the same time frame.
Answer: C
Q3) The final realized strategy of a firm is a combination of deliberate and time-tested strategies only.
A)True
B)False
Answer: False
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Chapter 2: Analyzing the External Environment of the Firm
Creating Competitive Advantages
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/3022
Sample Questions
Q1) Larger numbers of women entering the work force since the early 1970s is an example of
A) demographic changes.
B) political and legal environmental changes.
C) sociocultural changes.
D) technological developments.
Answer: C
Q2) The bargaining power of suppliers increases as A) threat of forward integration by suppliers increases.
B) importance of buyers to supplier group increases.
C) switching costs for buyers decrease.
D) more suppliers enter the market.
Answer: A
Q3) Scanning the general environment would identify information on A) substitute goods.
B) customer and firm bargaining power.
C) the aging population and ethnic shifts.
D) competitive rivalry.
Answer: C
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Chapter 3: Assessing the Internal Environment of the Firm
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/3023
Sample Questions
Q1) The best measure of company ability to meet imminent financial obligations is known as the
A) debt ratio.
B) profit margin.
C) total asset turnover.
D) current ratio.
Answer: D
Q2) In using crowdsourcing as a means to integrate the customer into the value chain, there are some perils to consider. Which of the following is not related to crowdsourcing perils?
A) giving customers the opportunity to tarnish the company brand
B) asking for consumer input when demand is highly uncertain
C) eroding a low-cost competitive advantage of the firm
D) repeatedly getting feedback from the same customer
Answer: C
Q3) Some firms find great value by not incorporating their customers into the value creation process.
A)True
B)False
Answer: False
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Chapter 4: Recognizing a Firm's Intellectual Assets Moving
beyond a Firm's Tangible Resources
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112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/3024
Sample Questions
Q1) The importance of human capital has decreased in recent years. For this reason, many firms have placed greater attention on attracting talent but not on developing or retaining it.
A)True
B)False
Q2) Attracting and retaining human capital is a challenge for many firms today. Firms experiencing high turnover should
A) focus on increased recruiting.
B) decrease money spent on human capital.
C) adopt effective retention strategies.
D) make their work environment less stimulating.
Q3) New knowledge involves the continual interaction between ________ and ________ knowledge.
A) intellectual; pragmatic
B) theoretical; practical
C) tacit; explicit
D) detailed; tacit
Q4) Knowledge workers are more loyal to their companies than traditional workers.
A)True
B)False
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Chapter 5: Business-Level Strategy Creating and Sustaining Competitive Advantages
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105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/3025
Sample Questions
Q1) What is a focus strategy? Provide an example where this has been implemented successfully.
Q2) Which type of competitive strategy is characterized by convincing rivals not to enter a price war, protection from customer pressure to lower prices, and the ability to better withstand cost increases from suppliers?
A) differentiation
B) overall low-cost leadership
C) differentiation focus
D) cost leadership focus
Q3) High product differentiation is generally accompanied by A) higher market share.
B) higher profit margins and lower costs.
C) significant economies of scale.
D) decreased emphasis on competition based on price.
Q4) A pitfall of integrated overall cost leadership and differentiation is underestimating the expenses associated with coordinating value-creating activities in the extended value chain.
A)True
B)False
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Chapter 6: Corporate-Level Strategy Creating Value through Diversification
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102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/3026
Sample Questions
Q1) Diversification initiatives must be justified by the creation of value for shareholders. A)True
B)False
Q2) The Coca-Cola acquisition of its bottlers failed because A) Coca-Cola had valuable competencies.
B) the bottling business required too much capital investment and time.
C) consumers consumed less because the distribution channel changed.
D) Coca-Cola spent less money on the distribution of concentrates and syrups.
Q3) Academic research indicates that on average acquisitions do not create shareholder value for acquiring firms. Using examples to support your response, give some explanations for this observation.
Q4) Unbalanced capacities that limit cost savings, difficulties in combining specializations, and reduced flexibility are disadvantages associated with A) strategic alliances.
B) vertical integration.
C) horizontal integration. D) divestiture.
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Chapter 7: International Strategy Creating Value in Global Markets
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107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/3027
Sample Questions
Q1) Which of the following is a source of economic risk in many countries?
A) good intellectual property law
B) counterfeiting
C) good enforcement of property rights
D) political unrest
Q2) In Euromoney magazine's 2017 semi-annual "Country Risk Rating" evaluating political, economic, and other risks that entrants to international markets potentially face, which of the following countries have the next to the highest country economic risk?
A) South Africa and Russia
B) Singapore and China
C) Argentina and Bahrain
D) Kazakhstan and Colombia
Q3) The need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy.
A)True
B)False
Q4) Explain the role of factor endowments in the rise of the software industry in India.
Page 9
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Chapter 8: Entrepreneurial Strategy and Competitive Dynamics
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94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/3028
Sample Questions
Q1) Competitors in a mature market typically find that a new entrant is threatening because
A) nearly all market need is already being met.
B) the new entrant might increase prices.
C) the new entrant offers the same product.
D) the new entrant is a pioneer.
Q2) When any two firms have both a high degree of market commonality and highly similar resources, a ________ threat is present.
A) weaker competitive
B) successful marketing
C) stronger competitive
D) stronger marketing
Q3) In competitive dynamics, new entrants may be forced to change their strategies or develop new ones to ________ competitive challenges by ________.
A) overcome; other new rivals
B) succumb; potential rivals
C) survive; incumbents
D) survive; former rivals
Q4) Explain what a pioneering new entry means and when it is appropriate to use it.
Page 10
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Chapter 9: Strategic Control and Corporate Governance
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91 Verified Questions
91 Flashcards
Source URL: https://quizplus.com/quiz/3029
Sample Questions
Q1) Which of the following is not a characteristic of effective reward and incentive systems?
A) Performance measures are clear and highly visible.
B) The structure is fixed to assure employees of consistency.
C) The compensation system is perceived as fair and equitable.
D) Objectives are well understood, and broadly accepted.
Q2) Shareholders rely on CEOs to adopt policies and strategies that maximize the value of their shares. To motivate CEOs to maximize the value of their companies, boards of directors can consider all the following options except one. Which one is it?
A) Boards can require that the CEOs become substantial owners of company stock.
B) Salaries, bonuses, and stock options can be structures to provide rewards for superior performance.
C) Salaries can be structured to provide penalties for poor performance.
D) Dismissal for poor performance is not an option.
Q3) In single-loop learning, the assumptions, premises, goals, and strategies of the organization are continuously monitored, tested, and reviewed.
A)True
B)False
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11
Chapter 10: Creating Effective Organizational Designs
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86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/3030
Sample Questions
Q1) Which of the following is not a strategic risk of outsourcing?
A) loss of critical skills
B) loss of cross-functional skills
C) loss of control over a supplier
D) loss of nonvital functions
Q2) To enhance integration and control of related product market activities, the functional structure minimizes centralization.
A)True
B)False
Q3) In a barrier-free organization, differences in skills, authority, and talent disappear.
A)True
B)False
Q4) One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the reward systems emphasized traditional unit goals.
A)True
B)False
Q5) Discuss the advantages and disadvantages of a simple organizational structure.
Q6) What is organizational structure and why is it important?
Page 12
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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
Source URL: https://quizplus.com/quiz/3031
Sample Questions
Q1) Former GVO marketing director, David Lieberman, tells a story about a new product idea proposed by a creative person. The idea was loved by everyone except a high-ranking manufacturingrepresentative who rejected the idea because the new proposal involved a color change which he implied would create a spare-parts problem. Because his experience in manufacturing involved cost cutting, lean inventories and focus, he could not conceive of how this new product proposal would be good for innovation. This is an example of what kind of organizational barrier?
A) vested interests in the status quo
B) personal time constraints
C) behavioral barrier
D) systemic barrier
Q2) In the compliance-based approach to ethics management, the objective is to
A) conform with externally imposed standards.
B) prevent criminal misconduct.
C) enable responsible conduct.
D) reduce discretion, training, controls, audits, and penalties.
Q3) There can be a high-integrity organization without high-integrity individuals.
A)True
B)False
Q4) What is the difference between individual ethics and organizational ethics?
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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/3032
Sample Questions
Q1) According to the text, ________, which support fledgling startups are often used to pursue specific entrepreneurial ventures developed by ________.
A) collaboration partners; strategic partners
B) business incubators; new venture groups
C) product champions; corporate venture capitalists
D) lower-level managers; upper-level managers
Q2) On average, approximately what percentage of corporate ventures reaches profitability within six years?
A) 80 percent
B) 65 percent
C) 50 percent
D) 35 percent
Q3) Radical innovations
A) often result in quick profits.
B) often occur because of technological change.
C) usually apply simultaneously to products and processes.
D) are a form of contentious innovation.
Q4) What is real options analysis (ROA) as it applies to entrepreneurship and when is it appropriate to be used in this context?
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