Corporate Strategy
Exam Answer Key
Course Introduction
Corporate Strategy explores the frameworks and analytical tools that organizations use to achieve and sustain competitive advantage at the enterprise level. The course examines how firms create value through diversification, vertical integration, mergers and acquisitions, and strategic alliances, while considering global expansion and adaptation to dynamic market environments. Students will analyze real-world case studies to understand the formulation and implementation of strategies across multiple businesses and industries, and assess how corporate decisions impact long-term performance and stakeholder value.
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) Strategy analysis is the study of only the big picture external environments of the firm.
A)True
B)False
Answer: False
Q2) According to Henry Mintzberg,a management scholar,most firms do not realize their original intended strategy.
A)True
B)False
Answer: True
Q3) The vision of an organization is at the top level of its hierarchy of organizational goals.The vision statement should be massively inspiring,overarching,and long term.
A)True
B)False
Answer: True
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Page 3
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) The Dodd-Frank Wall Street Reform and Consumer Protection Act require companies to disclose whether any tin,tantalum,tungsten or gold in their supply chain is connected to violent militia groups in the Congo or nine surrounding countries,including Angola,Rwanda,and Sudan.This is an example of which segment of the general environment?
A)economic
B)sociocultural
C)political and legal
D)demographic
Answer: C
Q2) Product differentiation by incumbents act as an entry barrier because
A)new entrants cannot differentiate their products.
B)incumbents will take legal action if new entrants do not differentiate their products.
C)it helps a firm to derive greater economies of scale.
D)new entrants will have to spend heavily to overcome existing customer loyalties.
Answer: D
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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) Which of the following would be most difficult to assess?
A)the liquidity position of a firm
B)market share growth
C)the legitimacy and reputation of a firm
D)the efficiency with which a firm utilizes its assets
Answer: C
Q2) Which of the following is a support activity?
A)inbound logistics
B)customer service
C)technology development
D)operations
Answer: C
Q3) In a telephone operating company,negotiating and maintaining ongoing relations with regulatory bodies can be among the most important activities for competitive advantage.What type of value-chain support activity is this?
A)service
B)technology development
C)human resource management
D)general administration
Answer: D
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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) According to Exhibit 4.1 in the textbook (Ratio of Market Value to Book Value for Selected Companies),firms with high market value to book value ratios achieve this because of their ________ investment in ________ resources and technological expertise.
A)low;physical
B)low;tangible
C)high;knowledge
D)high;liquid asset
Q2) The environmental sustainability strategy of a firm might be used to retain high-performing employees because recent college graduates
A)seek to make a social or environmental difference in the world.
B)want a job in a company that is committed to corporate profit.
C)feel that profitability is not important.
D)are loyal to firms that are concerned with employee education.
Q3) The management of intellectual property involves all of the following except A)copyrights and trademark.
B)contracts with confidentiality and non-compete clauses.
C)converting explicit knowledge to tacit knowledge.
D)patents.
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) A low-cost position provides ________ flexibility to cope with demands from powerful suppliers for input cost increases.
A)less
B)decreasing
C)more
D)no
Q2) Which of the following is not a potential pitfall of a focus strategy?
A)Erosion of cost advantages can arise within the narrow segment.
B)Product/service offerings that are highly focused are subject to competition from new entrants.
C)Focusers can become too focused to satisfy buyer needs.
D)All rivals share a common input or raw material.
Q3) Combination strategies,such as integrating overall low cost and differentiation,makes it easier for rivals to duplicate or imitate because it is harder for the primary firm to provide value.
A)True
B)False
Q4) What are the pitfalls of the overall cost leadership strategy? Provide an example for each pitfall and explain why it is a pitfall.
Page 7
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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) The antitakeover tactic,________,is when a firm offers to buy shares of their stock from a company (or individual)planning to acquire their firm at a higher price than the unfriendly company paid for it.
A)golden parachute
B)poison pill
C)greenmail
D)scorched earth
Q2) It is necessary for a core competence to be difficult to imitate and to be non-substitutable.
A)True
B)False
Q3) When a firm diversifies into ________ businesses,the primary potential benefits to be derived come from ________ relationships where value creation is derived from the corporate office.
A)unrelated;hierarchical
B)related;hierarchical
C)related;horizontal
D)unrelated;horizontal
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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) Statistics indicate that over half of the world output now comes from emerging markets.This is leading to a(n)________ of living standards across the globe and is changing the face of business.
A)divergence
B)convergence
C)expansion
D)contraction
Q2) When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to lower costs,companies should choose a(n)________ strategy or ________ strategy in order to compete in the global marketplace.
A)global;transnational
B)global;multidomestic
C)international;multidomestic
D)international;transnational
Q3) The difference between a franchise contract and a licensing contract is that a
A)franchise contract is more specific and usually longer in duration.
B)franchise contract must include a foreign government.
C)licensing contract covers more aspects of operations.
Page 9
D)franchise contract involves less control and less risk.
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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) According to the textbook,which of the following is not a common new entry strategy?
A)imitative new entry
B)adaptive new entry
C)pioneering new entry
D)proactive new entry
Q2) Mint entered the market in 2005 with comprehensive online money management systems that tells users what they are spending by aggregating financial information from online bank and credit card accounts.Today it has over 20 million users and is helping them manage over 3 billion USD in assets.It used which new entry strategy in 2005?
A)imitative
B)adaptive
C)pioneering
D)differentiated
Q3) Entrepreneurial firms are often in a strong position to use combination strategies,because they have the flexibility to approach situations uniquely.
A)True
B)False
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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) The traditional approach to strategic control is sequential.Which of the following is not one of the steps in the sequence?
A)Action plans are submitted by lower level managers.
B)Performance is measured against the predetermined goal.
C)Strategies are implemented.
D)Strategies are formulated and top management sets goals.
Q2) Brent Beshore,CEO of adventur.es,a private investment firm,walks around the office every day thanking people for their contributions.What purpose does this serve in terms of attaining behavioral control?
A)It reminds employees of adventur.es rules and regulations.
B)It helps reinforce and sustain the adventur.es culture.
C)It demonstrates to employees the importance of articulating explicit goals and objectives.
D)It makes the adventur.es reward system very explicit.
Q3) Sales quotas,operating budgets,and production schedules are examples of traditional controls.
A)True
B)False
Q4) When would single-loop control systems be most appropriate?
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Chapter 10: Creating Effective Organizational Designs
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86 Verified Questions
86 Flashcards
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Sample Questions
Q1) When an organization with a simple structure increases its sales revenue and volume of outputs,it is most likely to develop a ________ structure.
A)divisional
B)functional
C)product-market
D)geographic
Q2) In large organizations,a strategy of diversification requires a need to reorganize around ________ or ________.
A)product lines;geographic markets
B)product lines;competition
C)competitor lines;geographic markets
D)distribution lines;competitor markets
Q3) Discuss the three major contingencies that influence the chosen organizational structure as a firm expands into foreign markets.
Q4) 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
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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) Effective learning organizations must redistribute ________,________,and ________ in order to assure that there is a common body of knowledge.
A)rewards;training;handbooks
B)training;knowledge;pay raises
C)knowledge;financial rewards;intangible rewards
D)information;knowledge;rewards
Q2) The senior executive team at AES,a 14 billion USD energy company,agreed to take pay cuts because several employees of the firm lied to the EPA about water quality at an AES owned water treatment plant in Oklahoma.This is an example of A)employees passing the responsibility to management.
B)leadership shirking responsibility.
C)leadership as role models.
D)a regulatory solution.
Q3) A compliance-based approach to ethics management combines a concern for law with an emphasis on managerial responsibility for ethical behavior.
A)True
B)False
Q4) What is the difference between individual ethics and organizational ethics?
Page 13
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Chapter 12: Managing Innovation and Fostering Corporate
Entrepreneurship
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93 Verified Questions
93 Flashcards
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Sample Questions
Q1) Founders Larry Page and Sergey Brin provide time and resources for Google employees to experiment.Some,such as the Android cell phone platform,have been big winners.Others,such as the Orkut and Buzz social networking systems,have failed.But Google will continue to experiment with new products and services.This is an example of which innovator DNA trait?
A)experimenting
B)associating
C)observing
D)networking
Q2) 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.
Q3) Exit champions are often reluctant to gather hard data about a venture because it might kill the project.
A)True
B)False
Q4) Define the five dimensions of an entrepreneurial orientation and why are they important?
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