Corporate Strategy Exam Review
Course Introduction
Corporate Strategy explores the overarching principles and practices that guide organizations in creating, capturing, and sustaining competitive advantage across multiple business units and markets. This course examines the tools and frameworks used to analyze the external environment, assess internal capabilities, and make strategic decisions regarding diversification, mergers and acquisitions, global expansion, and corporate restructuring. Students will develop an understanding of how corporations define their scope, allocate resources, and create value through growth strategies while considering the challenges of execution and the roles of governance and leadership. Through case studies and strategic analysis, participants will gain practical insights into formulating and implementing effective corporate strategies in a rapidly changing business landscape.
Recommended Textbook
Strategic Management Concepts and Cases 1st Edition by Frank Rothaermel
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12 Chapters
1235 Verified Questions
1235 Flashcards
Source URL: https://quizplus.com/study-set/2540 Page 2
Chapter 1: What Is Strategy and Why Is It Important
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101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/50499
Sample Questions
Q1) The ups and downs within industries and corporations suggest that competitive advantage __________.
A) Will remain constant
B) Will fail rapidly
C) Will likely be transitory
D) Will not be affected by industry cycles
Answer: C
Q2) Assumptions have no major role in the development of strategies for an organization.
A)True
B)False
Answer: False
Q3) Strategy is primarily about ____________.
A) Maximizing firm profits
B) Deriving operation effectiveness
C) Creating superior value
D) Competitive benchmarking
Answer: C
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Chapter 2: The Strategic Management Process
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95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/50498
Sample Questions
Q1) Many of the early U.S.railroad companies defined themselves as being in the railroad business instead of being in the transportation needs business.These companies used
A) resource-based missions
B) customer-oriented missions
C) product-oriented missions
D) responsive missions
Answer: C
Q2) The process that describes the method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage is called what?
A) Strategic process
B) Strategic technology
C) Strategic management
D) Strategic planning
Answer: C
Q3) Intended strategy is the combination of emergent and realized strategies.
A)True
B)False
Answer: False
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Chapter 3: External Analysis: Industry Structure,
Competitive Forces, and Strategic Groups
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102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/50497
Sample Questions
Q1) ________ reveals which companies are in the strongest or weakest position relative to your company.
A) Scenario group mapping
B) Strategic group mapping
C) Situational group mapping
D) Statistical group mapping
Answer: B
Q2) When the buyers have high switching costs how does this relate to the expected power of the buyers? (Higher or lower and briefly why?)
Answer: Switching costs are the difficulties for a buyer to change from one producer to another for some product or service.When switching costs are high (changing producers is hard)buyers have much less power.The buyer now must account for additional switching costs when evaluating a current producer and negotiating terms of price,delivery and quality.
Explanation: Switching costs are incurred only by the buyer and will vary markedly across industries or even products within an industry.
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5
Chapter 4: Internal Analysis: Resources, Capabilities, and Activities
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102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/50496
Sample Questions
Q1) Which of the following is NOT a criterion for a strategically important resource?
A) Difficult to imitate
B) Not everyone has it
C) Valuable
D) Tangible
Q2) Which SWOT factors below are generated from internal resources,capabilities and competencies?
A) Opportunities and weaknesses
B) Strength and threats
C) Opportunities and threats
D) Strengths and weaknesses
Q3) Which of the following activities would be considered a primary activity in a firm's value chain?
A) Research and development
B) Human resources
C) Finance
D) Production
Q4) Define core competency.
Page 6
Q5) What is the difference between a tangible resource and an intangible resource?
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Chapter 5: Competitive Advantage and Firm Performance
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107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/50495
Sample Questions
Q1) An important question to ask when looking at differences in firm performance and competitive advantage is how to best measure these differences.
A)True
B)False
Q2) When measuring competitive advantage and firm strategy,it is important to use both qualitative and quantitative frameworks.Briefly explain why.
Q3) Non-economic factors such as _________ and ________ are often the rewards of adopting the triple-bottom-line framework.
A) Access to raw materials; supplier relationships
B) Firm reputation; goodwill
C) Product imitation; substitution
D) Diversification; localization
Q4) Name two important limitations of using shareholder value data to measure competitive advantage.
Q5) The accounting profitability approach to measuring competitive advantage relies on data that is backward-looking.
A)True
B)False
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Page 7
Chapter 6: Business Strategy: Differentiation, Cost
Leadership, and Integration
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105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/50494
Sample Questions
Q1) When a firm has been able to perform best practices combined with a positive value-cost relationship,it has reached the:
A) Value-cost frontier.
B) Productivity frontier.
C) Economies of scope.
D) Strategic intent.
Q2) When the focus of competition is on differentiation,a firm tends to use all of these levers EXCEPT:
A) New product launches.
B) Cost input factors.
C) Marketing and promotion.
D) Unique product features.
Q3) The two primary competitive levers that managers can use in order to answer the question of how to compete are:
A) Cost and core competencies.
B) Value and cost.
C) Value and core competencies.
D) Cost and revenues.
Q4) Name and give an example for TWO of the four value drivers noted in the text.
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Chapter 7: Business Strategy: Innovation and Strategic
Entrepreneurship
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/50493
Sample Questions
Q1) Radical innovation can occur when an existing firm recombines its existing knowledge base with a new stream of knowledge for new markets.
A)True
B)False
Q2) When a new product,process,or idea is introduced into the market,it has been:
A) Extracted.
B) Commercialized.
C) Invented.
D) Executed.
Q3) The use of new materials with a new knowledge base to target new markets is a:
A) Groundbreaking innovation.
B) Trail innovation.
C) Radical innovation.
D) Modern innovation.
Q4) The likelihood of a discontinuity occurring in an industry:
A) Is very strong if the industry produces simplified products.
B) Is very strong if the existing technology is close to its physical limit.
C) Is very weak unless the new technology is cheaper.
D) Cannot be predicted.
Q5) What are the strategic implications of "the long-tail phenomenon"?
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Chapter 8: Corporate Strategy: Vertical Integration and Diversification
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110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/50492
Sample Questions
Q1) "Where to compete" is the key question senior management must answer for corporate strategy.Provide an example of a corporate strategy and briefly explain how it answers this question.
Q2) When a firm is fully vertically integrated:
A) All activities are conducted within the boundaries of the firm.
B) It is a single-business organization.
C) It is a conglomerate.
D) It is still reliant on certain suppliers along the industry value chain.
Q3) A tool that helps managers evaluate how the firm's core competencies can support certain diversification strategies is the:
A) Core competence-market matrix.
B) Diversification matrix.
C) Acquisition matrix.
D) Competency leverage matrix.
Q4) ___________ firms are often unable to achieve additional value creation.
A) Unrelated diversified
B) Related-constrained
C) Related-linked
D) All diversified
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Q5) Explain how reducing flexibility is a risk for vertical integration.
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Chapter 9: Corporate Strategy: Acquisitions, Alliances, and Networks
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103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/50491
Sample Questions
Q1) The combining of two firms of comparable size is often described as a(n)_____.
A) Acquisition
B) Joint venture
C) Equity alliance
D) Merger
Q2) Hulu,owned by NBC,Fox,and ABC is an example of a(n)_______.
A) Joint venture
B) Acquisition
C) Equity alliance
D) Non-equity alliance
Q3) A non-equity alliance has a major drawback which is that it has _____.
A) A slower pace of execution
B) A lack of trust and commitment
C) Strong ties between the firms
D) Only a long-term solution
Q4) What is a strategic network? Provide an example of it.
Q5) One of the reasons for a merger is to overcome competitive disadvantage.Elaborate on how a firm can overcome competitive disadvantage through a merger.
Q7) Define a joint venture and describe its typical pros and cons. Page 11
Q6) Give an example of an equity alliance and describe its typical pros and cons.
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Chapter 10: Global Strategy: Competing Around the World
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/50490
Sample Questions
Q1) In high-power distance cultures,people tend to:
A) Translate inequalities in power, status, and wealth.
B) Create equal distribution among people.
C) Adapt to new environments quicker.
D) Embrace change and seek new opportunities.
Q2) The risks of choosing an international strategy includes all of the following EXCEPT:
A) Limited local responsiveness.
B) It is highly affected by exchange rate fluctuations.
C) Leveraging core competence.
D) Legal barriers for expansion.
Q3) Globalization has led to significant increases in corporate earnings.
A)True
B)False
Q4) What is national culture?
Q5) Which one of the following is NOT a reason firms expand abroad?
A) To gain access to a larger market
B) To gain access to low-cost input factors
C) To develop new competencies
D) To dominate domestic markets
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Chapter 11: Organizational Design: Structure, Culture, and Control
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/50489
Sample Questions
Q1) What is organizational inertia? Please give an example to explain.
Q2) When following a global standardization strategy,a(n)_______ structure is preferred.
A) Functional
B) M-form
C) Simple
D) Matrix
Q3) Typically,an organization using a simple structure would be _________.
A) Small
B) Large
C) Of any size if the firm is privately held
D) Small if the firm is a public company
Q4) Usually,employees learn about an organization's culture through _____.
A) Values
B) Norms
C) Socialization
D) Founder imprinting
Q5) A high degree of formalization streamlines the decision-making process.
A)True
B)False
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Chapter 12: Corporate Governance, Business Ethics, and Strategic Leadership
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101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/50488
Sample Questions
Q1) Which one of the following statements is true?
A) Corporate social responsibility should focus only on making profits.
B) Corporate social responsibility helps firms gain competitive advantage.
C) Corporate social responsibility is universal across the world.
D) Corporate social responsibility should not include NGOs.
Q2) ________ is a theoretical framework that is concerned with how various stakeholders create and trade value.
A) Shareholder theory
B) Agency theory
C) The groupthink model
D) Stakeholder theory
Q3) Which of the following is NOT true concerning the relationship between corporate governance and strategy?
A) Corporate governance provides control mechanisms.
B) Boards ensure that a firm's mission is in its strategy.
C) Governance monitors the way the strategy is executed.
D) Boards make day-to-day decisions on strategy execution.
Q4) Discuss the three informational roles of a leader.
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Q5) What are the benefits of effective stakeholder management?
Q6) What is corporate governance?
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