Corporate Strategy
Exam Questions
Course Introduction
Corporate Strategy explores the principles and frameworks organizations use to achieve long-term success and sustain competitive advantage at the highest levels of decision-making. The course examines how firms define their scope, allocate resources, and coordinate activities across business units to enhance performance and respond to dynamic market environments. Key topics include diversification, mergers and acquisitions, global expansion, strategic alliances, portfolio management, and the roles of leadership and corporate governance. Through case studies, real-world examples, and analytical tools, students gain practical skills for formulating and implementing effective corporate strategies in complex and evolving contexts.
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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Sample Questions
Q1) Henry Mintzberg discovered that strategic formulation is a regular,continuous process.
A)True
B)False
Answer: False
Q2) A budget is a statement of a corporation's programs in dollar terms.Which is not true of the budgetary function?
A) It is used in planning and control.
B) It serves as a detailed plan of strategy in action.
C) Only one budget is necessary to capture all programs.
D) It details the impact on the firm's future financial situation.
E) It is used as a means of measuring success based on certain criteria.
Answer: C
Q3) A program or tactic is
A) a detailed cost statement in terms of dollars.
B) a system of sequential steps.
C) a statement of the activities needed to support a strategy.
D) the process by which strategies and policies are put into action.
E) none of the above
Answer: C
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Chapter 2: Corporate Governance
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Sample Questions
Q1) A lead director
A) has not been a popular approach in the United Kingdom.
B) creates a balance of power when the CEO is also Chair of the Board.
C) has lost popularity in the United States since 2003.
D) has no involvement in the CEO's evaluation.
E) totally replaces the CEO position.
Answer: B
Q2) What percentage of public corporations have periodic board meetings devoted primarily to the review of overall strategy?
A) 24%
B) 34%
C) 44%
D) 64%
E) 74%
Answer: E
Q3) Transformational leaders transform organizations from market leaders in one industry to market leadership in another.
A)True
B)False
Answer: False
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Chapter 3: Social Responsibility and Ethics in Strategic Management
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Sample Questions
Q1) Blindly following orders reflects which type of moral relativism?
A) naive relativism
B) role relativism
C) principled relativism
D) cultural relativism
E) social group relativism
Answer: B
Q2) Discuss some reasons for unethical behavior by business people.
Answer: There are a number of reasons proposed for the unethical behavior by business people.It may be that the involved people are not even aware that they are doing something questionable.There is no worldwide standard of conduct for business people.Cultural norms and values vary between countries and even between different geographic regions and ethnic groups within a country.
Another possible reason for what is often perceived to be unethical behavior lies in differences in values between business people and key stakeholders.Some business people may believe profit maximization is the key goal of their firm,whereas concerned interest groups may have other priorities.This difference in values can make it difficult for one group of people to understand another's actions.
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Chapter 4: Environmental Scanning and Industry Analysis
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Sample Questions
Q1) An industry scenario is a forecasted description of a particular industry's likely future.It is developed by analyzing the probable impact of future societal forces on key groups in a particular industry.
A)True
B)False
Q2) Industry analysis was popularized by Michael Porter.
A)True
B)False
Q3) The corporation's task environment
A) encompasses the physical working areas of the organization.
B) includes those elements or groups within an organization's industry.
C) is an advisory committee to top management.
D) is an accounting of the many jobs within an organization.
E) is the job requirement specification listing necessary skills and abilities.
Q4) Which of the following is not descriptive of intense rivalry among firms?
A) slow industry growth
B) high fixed costs
C) high exit barriers
D) few competitors or competitors that are roughly equal in size and power
E) product offerings that are highly differentiated
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Chapter 5: Organizational Analysis and Competitive Advantage
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Sample Questions
Q1) Continuous manufacturing systems reap benefits from economies of scale.
A)True
B)False
Q2) The corporate culture generally reflects the values of the founder(s) and the mission of the firm.
A)True
B)False
Q3) FedEx's application of information technology to all its operations is an example of A) resources.
B) distinctive competencies.
C) core competencies.
D) critical success factors.
E) key performance factors.
Q4) The business model used by HP in selling printers and printer cartridges is the A) profit pyramid model.
B) advertising model.
C) customer solutions model.
D) efficiency model.
E) multi-component system/installed base model.
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Chapter 6: Strategy Formulation: Business Strategy
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Sample Questions
Q1) The SFAS Matrix summarizes an organization's strategic factors by combining the external factors from the IFAS Table with the internal factors from the EFAS Table.
A)True
B)False
Q2) Competitive scope is
A) the breadth of the company's target market.
B) a business strategy.
C) the common thread found in the firm's mission statement.
D) the foundation of the choice between cost leadership and differentiation strategies.
E) an element of the marketing mix.
Q3) A licensing arrangement is an agreement in which the licensing firm grants rights to another firm in another country or market to produce and/or sell a product.
A)True
B)False
Q4) What is the impact of hypercompetition on competitive advantage?
Q5) What are the common elements of a well-crafted mission statement?
Q6) What are Porter's three generic competitive strategies?
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Chapter 7: Strategy Formulation: Corporate Strategy
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Sample Questions
Q1) According to the BCG Growth-Share Matrix,products that typically bring in far more money than is needed for maintenance of their market share are called A) cash cows.
B) lost leaders.
C) dogs.
D) question marks.
E) stars.
Q2) The Growth-Share Matrix of the Boston Consulting Group suggests that the excess cash being generated by cash cows should be used to fund A) dogs.
B) question marks.
C) stars.
D) white knights.
E) fish.
Q3) A limitation of the BCG Growth-Share Matrix is the questionable link between market share and profitability.
A)True
B)False
Q4) Discuss the two basic growth strategies.
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Chapter 8: Strategy Formulation: Functional Strategy and Strategic Choice
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Sample Questions
Q1) 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
Q2) A company that pioneers an innovation is called a
A) technological follower.
B) technological opportunist.
C) technological leader.
D) technological manufacturer.
E) technological entrepreneur.
Q3) The use of 3-D printing demonstrates which manufacturing strategy?
A) continuous improvement
B) mass production
C) job shop
D) mass customization
E) just-in-time
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Chapter 9: Strategy Implementation: Global Strategy
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Sample Questions
Q1) One benefit of a U.S.company entering a joint venture with an international firm is that it
A) reduces the risks of expropriation by host country officials.
B) enhances the policy of the host country's takeover of the firm.
C) promotes skepticism among other countries not involved in the merger.
D) encourages competitors to work with the company.
E) increases revenues by 20%.
Q2) Nationalistic governments tend to be placated by organizations that choose to hire
A) general managers with local experience.
B) home country managers.
C) managers with general international experience, but not from the host country.
D) fewer local managers.
E) parent company managers.
Q3) Discuss the five stages of international development.
Q4) In one study,95% of the corporate officers interviewed stated that they use different evaluation techniques for foreign and domestic operations.
A)True
B)False
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Chapter 10: Strategy Implementation: Organizing and Structure
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Sample Questions
Q1) Which market location tactic did Texas Instruments use when they avoided direct competition with Intel by developing cell phones,medical devices,and consumer electronics rather than computers?
A) flanking maneuver
B) bypass attack
C) encirclement
D) guerrilla warfare
E) frontal assault
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) An offensive tactic usually takes place in the firm's own current market position.
A)True
B)False
Q4) 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) 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
Q2) When Admiral was acquired by Maytag Corporation,the Admiral employees were willing to accept the dominance of Maytag's strong quality-oriented culture because they respected it.This demonstrates which approach to managing culture?
A) integration
B) separation
C) deculturation
D) assimilation
E) segmentation
Q3) TQM links organizational objectives and the behavior of individuals.
A)True
B)False
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Chapter 12: Evaluation and Control
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Sample Questions
Q1) An electronic tagging technology used in a number of companies to improve supply-chain efficiency with contactless communication between devices is
A) RFID.
B) ERP.
C) MBO.
D) TQM.
E) ROE.
Q2) Operating cash flow is also known as free cash flow.
A)True
B)False
Q3) What method is particularly appropriate for measuring and rewarding the performance of top SBU managers and group-level executives when performance factors and their importance vary from one SBU to another?
A) return on investment
B) year-end bonuses
C) zero base budgeting
D) weighted-factor method
E) return on assets
Q4) Distinguish between behavior and output controls.Provide examples of each.
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Chapter 13: Suggestions for Case Analysis
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Sample Questions
Q1) Inventory turnover and asset turnover are both examples of which type of financial ratio?
A) liquidity ratio
B) profitability ratio
C) activity ratio
D) leverage ratio
E) revenue ratio
Q2) A Z-value above 3.0 indicates significant credit problems for a firm.
A)True
B)False
Q3) The public interest rate is the rate of interest banks charge on their lowest risk loans. A)True
B)False
Q4) In performing a basic financial analysis,what five steps should be taken?
Q5) Key liquidity ratios include the current ratio,quick ratio,and cash ratio. A)True
B)False
Q6) What are common-size statements?
Q7) What is the Z-value?
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