Business Strategy
Test Bank
Course Introduction
Business Strategy is a comprehensive course designed to equip students with the analytical tools and frameworks necessary to assess competitive environments, identify organizational strengths and weaknesses, and formulate effective strategies for sustainable growth. Through the integration of case studies, industry analysis, and strategic planning exercises, students will learn to make informed decisions that align with both short-term objectives and long-term goals. By examining real-world business scenarios, participants will develop the skills to anticipate market shifts, respond to competition, and create value in complex and dynamic environments.
Recommended Textbook
Concepts in Strategic Management and Business Policy 15th Edition by Thomas L. Wheelen
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Chapter 1: Basic Concepts in Strategic Management
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The goal of NAFTA is complete economic integration among Canada,the United States,and Mexico.
A)True
B)False
Answer: False
Q2) In the externally oriented planning phase,plans are developed by heavily involving the input of managers from lower levels.
A)True
B)False
Answer: False
Q3) Which of the following is an example of a policy?
A) Diversify product line to appeal to more people.
B) Increase sales by ten percent over last year.
C) Only acquire companies of 75 employees or more; 75 percent must be engineers.
D) Develop and sell quality appliances worldwide.
E) Diversify from retailing into delivery.
Answer: C
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Chapter 2: Corporate Governance
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99 Flashcards
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Sample Questions
Q1) Transformational leaders transform organizations from market leaders in one industry to market leadership in another.
A)True
B)False
Answer: False
Q2) Society increasingly expects corporate boards to balance the economic goal of profitability with the social needs of society.
A)True
B)False
Answer: True
Q3) Succession planning for the board and top management team is one of the five responsibilities of the board of directors.
A)True
B)False
Answer: True
Q4) By 2012,56% of the S&P 500 boards had split the role of chairperson and CEO.
A)True
B)False
Answer: True
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Chapter 3: Social Responsibility and Ethics in Strategic Management
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103 Verified Questions
103 Flashcards
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Sample Questions
Q1) According to the utilitarian approach,CEOs give priority to the stakeholders who have the most
A) money and largest holdings.
B) legitimacy and the best PR.
C) power, legitimacy, and urgency.
D) stability and legitimacy.
E) utility and power.
Answer: C
Q2) Treating people in the same way who are similar on relevant dimensions such as job seniority,is an example of
A) compensatory justice.
B) retributive justice.
C) relevant justice.
D) distributive justice.
E) punitive justice.
Answer: D
Q3) A code of ethics is a useful way to promote ethical behavior.
A)True
B)False
Answer: True
Page 5
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Chapter 4: Environmental Scanning and Industry Analysis
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119 Flashcards
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Sample Questions
Q1) Which of the following is not descriptive of a high level of bargaining power of suppliers?
A) Substitutes are readily available.
B) The product or service is unique.
C) The supplier industry is dominated by a few companies, but sells too many.
D) The purchasing industry buys only a small portion of the supplier group's goods and services.
E) Suppliers are able to integrate forward and compete directly with their present customers.
Q2) The strength of each of the six driving forces of industry competition varies according to the
A) effectiveness of the strategic planning.
B) stage of industry evolution.
C) capital requirements.
D) changes in the political environment.
E) amount of government regulation.
Q3) Business intelligence is one of the fastest growing fields within strategic management.
A)True
B)False
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Chapter 5: Organizational Analysis and Competitive Advantage
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110 Flashcards
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Sample Questions
Q1) Which of the following is not a support activity of the value chain?
A) procurement
B) technology development
C) human resource management
D) marketing and sales
E) strategic planning
Q2) A core competency can be easily imitated to the extent that it is transparent,transferable,and replicable.
A)True
B)False
Q3) Cultural integration is the degree to which members of a unit accept the norms,values,or other cultural content associated with the unit-showing the culture's depth.
A)True
B)False
Q4) General Electric is well known for its distinctive competency in management development.
A)True
B)False
Q5) Discuss primary and support activities in a value chain.
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Chapter 6: Strategy Formulation: Business Strategy
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Sample Questions
Q1) Collusion is the active cooperation of firms within an industry to reduce output and raise prices in order to get around the normal economic law of supply and demand.
A)True B)False
Q2) One risk of a cost leadership strategy is that the technology for production or of products may change.
A)True B)False
Q3) SO strategies attempt to take advantage of opportunities by overcoming weaknesses.
A)True B)False
Q4) The T in SWOT represents A) threat.
B) tactic.
C) technique. D) task.
E) time.
Q5) What are the common elements of a well-crafted mission statement?
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Chapter 7: Strategy Formulation: Corporate Strategy
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Sample Questions
Q1) When Sony's CEO,Howard Stringer,eliminated 10,000 jobs and closed 11 plants,he was addressing the contraction phase of the turnaround strategy.
A)True
B)False
Q2) The stability strategies are really a lack of any strategy.
A)True
B)False
Q3) According to the text,75% of a company's market value is derived from its A) employees.
B) intangible assets.
C) plant assets.
D) joint ventures.
E) licensing agreements.
Q4) Discuss the three general orientations comprising directional strategy.
Q5) BP and Royal Dutch Shell are examples of fully integrated firms because they internally make 100% of their key supplies and completely control their distributors.
A)True
B)False
Q6) Discuss the more popular stability strategies.
Page 9
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Chapter 8: Strategy Formulation: Functional Strategy and Strategic Choice
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Sample Questions
Q1) When a company exchanges 200 shares of stock worth $20 each for 100 shares worth $40 each,they are using
A) tracking stock.
B) holding stock.
C) a leveraged buyout.
D) reverse stock split.
E) split stock.
Q2) A corporation might have invested so much in a particular strategy that top management is unwilling to accept its failure.This is an example of which strategy to avoid?
A) follow the leader
B) hit another home run
C) arms race
D) do everything
E) losing hand
Q3) The orientation of the functional strategy is dictated by its parent business unit's strategy.
A)True
B)False
Q4) What is a functional strategy?
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Chapter 9: Strategy Implementation: Global Strategy
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Sample Questions
Q1) The likelihood that an expat will return home early is increased by
A) the perceived lack of organizational support for international assignments.
B) the emphasis on cultural training.
C) an inability to speak the language.
D) interpersonal conflicts with host country employees.
E) a lack of fit with the technical skills of the job.
Q2) The term production sharing was coined by Alfred Chandler.
A)True
B)False
Q3) Research indicates that growing internationally is positively associated with firm profitability.
A)True
B)False
Q4) Global considerations dominate organizational design in which stage of international development?
A) Stage 1
B) Stage 2
C) Stage 3
D) Stage 4
E) Stage 5
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Chapter 10: Strategy Implementation: Organizing and Structure
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Sample Questions
Q1) What is synergy? According to Goold and Campbell,what are the six forms it can take?
Q2) Many of the people in the organization who are crucial to successful strategy implementation probably have little to do with the development of the corporate and business strategy.
A)True
B)False
Q3) The purpose of a program or tactic is to make the strategy action-oriented. A)True
B)False
Q4) The concept that structure follows strategy was developed by Alfred Chandler. A)True
B)False
Q5) Which of the following is not a principle of reengineering identified by Hammer?
A) puts the decision point where the work is performed
B) organizes around tasks, not outcomes
C) treats geographically dispersed resources as though they were centralized
D) links parallel activities
E) captures information once at the source
Page 12
Q6) How can a corporation's life cycle be extended?
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Chapter 11: Strategy Implementation: Staffing and Directing
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Sample Questions
Q1) Many TQM principles have been incorporated into the series of standards and certifications of
A) ISO 9000.
B) MBO.
C) AMT.
D) 501K
E) CDRH
Q2) Corporate culture has a strong tendency to resist change because its very reason for existence often rests on preserving stable relationships and patterns of behavior.
A)True
B)False
Q3) What percent of large U.S.companies have CEO succession plans in place?
A) 10
B) 25
C) 50
D) 75
E) 90
Q4) What is executive succession? Discuss the hiring of insiders versus outsiders.
Q5) What is TQM and what are its essential ingredients?
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Chapter 12: Evaluation and Control
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Sample Questions
Q1) Behavior substitution occurs when
A) a division or functional unit views itself as a separate entity and refuses to cooperate with other divisions or units in order to keep its performance measures at a high level.
B) there is a failure to produce at or near full capacity.
C) individuals are placed into positions not suited to their abilities.
D) individuals focus more of their attention on those aspects which are measurable than on those which are not.
E) managers concentrate too much on short-term performance objectives.
Q2) All of the following are examples of behavior controls EXCEPT
A) monitoring employees' phone calls.
B) monitoring employees' PCs.
C) monitoring employees' Internet usage.
D) using ISO 14000 Standards Series.
E) sales quotas.
Q3) ROI stands for return on incentives.
A)True
B)False
Q4) Distinguish between behavior and output controls.Provide examples of each.
Q5) What is ERP? What are the three reasons why ERP could fail?
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Chapter 13: Suggestions for Case Analysis
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Sample Questions
Q1) Which financial indicator is calculated by the ratio of market price per share to earnings per share?
A) return on investment
B) price/earnings ratio
C) return on equity
D) dividend yield on common stock
E) dividend payout ratio
Q2) Which financial indicator is calculated by the ratio of annual dividends per share to current market price per share?
A) return on equity
B) dividend payout ratio
C) dividend yield on common stock
D) price/earnings ratio
E) debt to equity ratio
Q3) Which financial indicator measures the ratio of sales to fixed assets?
A) days of inventory
B) asset turnover
C) average collection period
D) fixed asset turnover
E) inventory turnover
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