Corporate Strategy
Exam Review
Course Introduction
Corporate Strategy explores the foundational concepts and analytical tools essential for understanding how organizations create long-term value and achieve a sustainable competitive advantage. The course examines the formulation and implementation of strategies at the corporate level, including diversification, mergers and acquisitions, vertical integration, and strategic alliances. Students will analyze real-world case studies to evaluate how firms position themselves within industries, respond to changing market dynamics, and leverage their resources and capabilities to achieve organizational goals. Emphasis is placed on strategic decision-making processes, the role of leadership, and the impact of global trends on corporate strategy.
Recommended Textbook
Strategic Management Creating Competitive Advantages 9th Edition by Gregory G Dess Dr
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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/7454
Sample Questions
Q1) Social responsibility is the idea that organizations are only accountable to stockholders.
A)True
B)False
Answer: False
Q2) Peter Senge,of MIT,recognized three types of leaders.________ are individuals that,although having little positional power and formal authority,generate their power through the conviction and clarity of their ideas.
A) Local line leaders
B) Executive leaders
C) Internal networkers
D) Shop floor leaders
Answer: C
Q3) In contrast to the vision of an organization,its mission should
A) be shorter in length.
B) encompass both the purpose of the company as well as the basis of competition.
C) encompass all the major rules and regulations of the corporate work force.
D) be less detailed.
Answer: B
Page 3
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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) In the five-forces model,conditions under which a supplier group can be powerful include all of the following except
A) lack of importance of the buyer to the supplier group.
B) high differentiation by the supplier.
C) readily available substitute products.
D) dominance by a few suppliers.
Answer: C
Q2) Competitive Intelligence (CI)is a tool that can provide management with early warnings about both threats and opportunities.
A)True
B)False
Answer: True
Q3) Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups,which strategic group is the largest in terms of breadth of product line?
A) Ferrari, Lamborghini, Porsche
B) Toyota, Ford, General Motors, Chrysler, Honda, Nissan
C) Chery, Geely, Tata Motors
D) Mercedes, BMW, Audi
Answer: B
4
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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) The innovation and learning perspective of the balanced scorecard answers which of the following questions?
A) How do customers see us?
B) What must we excel at?
C) How do we look to shareholders?
D) Can we continue to improve and create value?
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) Capabilities that exhibit causal ambiguity are difficult to imitate.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Recognizing a Firm's Intellectual Assets: Moving
Beyond a Firm's Tangible Resources
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The difference between the market value and book value of a firm is its social capital.
A)True
B)False
Q2) Using an idea does not prevent others from simultaneously using it for their own benefit.Typically,this is impossible with ________ assets.
A) intangible
B) strong
C) physical
D) flimsy
Q3) In an effort to capture key employees from competitors,firms may attract the symbolic leader of a group within a competing firm and hope others will follow.This has been termed
A) the Columbus effect.
B) the Pied Piper effect.
C) knowledge integration.
D) strategically competitive hiring.
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6
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) Outright sales or sale and leaseback free up considerable cash and improve returns.This is an example of which turnaround strategy used by successful companies?
A) asset and cost surgery
B) selective product and market pruning
C) piecemeal productivity improvements
D) global expansion
Q2) Which of the following reasons is not a reason that Atlas Door could lose competitive advantage?
A) Its technologies are non-proprietary.
B) A rival easily could hire away its talented employees.
C) A new rival with a strong resource base could undercut its prices.
D) It has strong power over its distributors.
Q3) In the ________ stage of the industry life cycle,there are many segments,competition is very intense,and the emphasis on process design is high.
A) growth
B) introduction
C) decline
D) maturity
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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) It is necessary for a core competence to be difficult to imitate and to be non-substitutable.
A)True
B)False
Q2) Capital restructuring involves changing the ________ mix.
A) cash
B) human resource
C) debt-equity
D) management
Q3) In managing the corporate portfolio,the BCG matrix would suggest that A) dogs should be invested in to increase market share and become cash cows. B) stars are in low growth markets and can provide excess cash to fund other opportunities.
C) cash cows require substantial cash outlays to maintain market share. D) question marks can represent future stars if their market share is increased.
Q4) When firms diversify into unrelated businesses,the primary potential benefits are horizontal relationships,i.e.,businesses sharing tangible and intangible resources.
A)True
B)False
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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) Reverse innovation occurs when a company develops a product that meets the needs of a developed country and then adapts it to the needs of the developing country.
A)True
B)False
Q2) Green tea Oreos in China,chocolate and peanut butter Oreos in Indonesia,and banana dulce de leche Oreos in Argentina are examples of Kraft using ________ strategy.
A) an international
B) a multidomestic
C) a single country
D) a transnational
Q3) Panasonic entered the market in China and found that it needed to balance global integration with local adaptation.It set up a Lifestyle Research Center in China to interpret data on customer wants and needs.This is an example of a company using ________ strategy.
A) an international
B) a multidomestic
C) a single country
D) a transnational
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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) How can new ventures successfully deploy cost-leadership strategies given that they are not likely to be in a position to take advantage of economies of scale,or have the capital to increase scale economies,or have the knowledge gained from experience to make cost-saving improvements?
Q2) The evaluation phase of opportunity recognition occurs when an entrepreneur has an insight about a new business venture,often based on prior knowledge.
A)True
B)False
Q3) Amazon is an example of a company that used the differentiation strategy to enter the market.The differentiation features included
A) minimal customer service.
B) traditional back office logistics.
C) exceptional customer service.
D) traditional delivery logistics.
Q4) Adaptive new entry involves offering a radical new product or highly innovative service.
A)True B)False
Page 10
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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) Expropriation of minority shareholders means that minority shareholders
A) must sell their shares upon demand.
B) cannot own shares in foreign firms.
C) do not receive dividends.
D) are adversely affected by the actions of controlling shareholders.
Q2) Behavioral controls are aspects of strategic change that involve finding the appropriate ________ and ________ among the culture,rewards,and boundaries of the firm.
A) balance; alignment
B) measure; balance
C) alignment; balance
D) measure; outcome
Q3) Effective boundaries and constraints
A) tend to inhibit efficiency and effectiveness.
B) distract employees who are trying to focus on organizational priorities.
C) minimize improper and unethical conduct.
D) tend to limit organizational growth.
Q4) Discuss several actions that can have a positive influence on board of director dynamics as the board works to both oversee and advise management.
Q5) When would single-loop control systems be most appropriate?
Page 11
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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) As firms expand into foreign markets,they generally follow a pattern of change in structure that parallels the changes in their strategies.Which one of the following is not a major contingency that influences the structure they choose?
A) the type of strategy that is driving the company foreign operations
B) the research and development budget commitment
C) product diversity
D) the extent of the company dependence on foreign sales
Q2) When an organization with a functional structure diversifies into related product-markets,it generally
A) maintains its functional structure.
B) develops a divisional structure.
C) develops a matrix structure.
D) develops a worldwide product-division structure.
Q3) 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
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Page 12
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) ________ is rarely self-sustaining in an organization.
A) High-integrity
B) Integrity
C) Individual integrity
D) Leader integrity
Q2) Functional benchmarking
A) is not very useful for organizations with a divisional organizational structure.
B) is used to determine best practices regardless of industry.
C) restricts the search for best practices to competitors.
D) is useful when researching industry-specific standards.
Q3) In order to create an environment where employees can achieve their potential as they move the organization towards its goals,the manager role needs to be that of
A) resource allocator.
B) resource controller.
C) a flexible resource.
D) an advocator of the status quo.
Q4) Explain how the five barriers to change that leaders often encounter can prevent a leader from transforming an organization.
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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) Innovations that extend sales in an existing market,usually by enabling new products or services to be sold at higher margins,are known as ________ innovations.
A) radical
B) disruptive
C) technology
D) sustaining
Q2) One of the pitfalls of real options analysis is that managers may have an incentive and know-how to game the system and back-solve a formula to get a proposal approved.This can give rise to
A) managerial conceit.
B) the illusion of control.
C) escalation of commitment.
D) agency problems.
Q3) One of the important questions the corporation must address in assessing the effectiveness of its venturing initiatives is that of the sustainability of its basis of competitive advantage.
A)True
B)False
Q4) Explain why the seeds versus weeds dilemma is important.
Page 14
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