Corporate Strategy
Exam Solutions
Course Introduction
Corporate Strategy examines the principles, models, and analytical frameworks organizations use to achieve long-term goals and maintain competitive advantage. The course covers topics such as industry analysis, diversification, vertical integration, mergers and acquisitions, strategic alliances, and global strategy. Students learn how corporations make strategic decisions about resource allocation, growth, and market positioning, and how they respond to changing competitive environments. Through case studies and real-world examples, participants develop the critical thinking and problem-solving skills essential for making effective corporate-level strategic choices.
Recommended Textbook Strategic Management Creating Competitive Advantages 4th Edition by Gregory Dess
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12 Chapters
745 Verified Questions
745 Flashcards
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Page 2
Chapter 1: Strategic Management: Creating Competitive Advantages
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56 Verified Questions
56 Flashcards
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Sample Questions
Q1) Strategic objectives should be measurable,specific,appropriate,and realistic,but not constrained by time deadlines.
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) Social responsibility for Suncor Energy of Calgary means accountability to customers but NOT to employees.
A)True
B)False
Answer: False
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Chapter 2: Analyzing the External Environment of the Firm
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Sample Questions
Q1) An independent group of suppliers,such as farmers,gather to form a cooperative to sell their products to buyers directly,replacing their former distributor.This is an example of
A) threat of entry.
B) backward integration.
C) forward integration.
D) threat of substitute products.
Answer: C
Q2) Explain why managers must recognize opportunities and threats in their firm's external environment.
Answer: It is important that managers look outside of their company so they do not get out of touch with the evolving realities of the marketplace.
Q3) Which of the following firms would likely pose the least competitive threat?
A) A firm in the same industry and in the same strategic group
B) A firm that produces substitute goods to your product line
C) A competitor to your product where a high switching cost exists
D) A firm in the same industry and in the nearest strategic group looking to join your group
Answer: C
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Chapter 3: Assessing the Internal Environment of the Firm
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Sample Questions
Q1) The following are examples of socially complex organizational phenomena except A) a firm's culture
B) interpersonal relations among a firm's managers
C) complex physical technology
D) reputation with suppliers and customers
Answer: C
Q2) Human resource management consists of activities involved in the recruiting,hiring,training,development,and compensation of all types of personnel.It
A) supports only individual primary activities.
B) supports only individual support activities.
C) supports both individual primary and support activities and the entire value chain.
D) supports mostly support activities but does have some impact on primary activities.
Answer: C
Q3) Technology development is a much broader concept than research and development.
A)True
B)False
Answer: True
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5
Chapter 4: Recognizing a Firms Intellectual Assets: Moving
Beyond a Firms Tangible Resources
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Sample Questions
Q1) The use of information technology (e.g.,email)has increased in recent years in many organizations.This has helped to
A) increase social capital.
B) make more effective use of time in every situation.
C) restrict social network growth.
D) create smaller social networks.
Q2) Discuss how technology has impacted the attraction,training,and retention of professionals.How has technology helped firms to enhance their human capital and social capital?
Q3) Social capital is based on the network of relationships within a firm,not in the skills and abilities of an individual employee.
A)True
B)False
Q4) The benefits of high social capital include
A) engagement and loyalty.
B) skill and ability.
C) values that are not a part of the company's culture.
D) low levels of persistence.
Q5) Describe the process of "hiring via personal networks".
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Chapter 5: Business-Level Strategy: Creating and Sustaining Competitive Advantages
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Sample Questions
Q1) A successful differentiation strategy increases rivalry since buyers become more price-sensitive.
A)True
B)False
Q2) An important pitfall of an integrated overall cost leadership and differentiation strategy is that firms may fail to implement either one and become "stuck-in-the-middle."
A)True
B)False
Q3) A firm can achieve differentiation through all of the following means except
A) improving brand image.
B) better customer service.
C) offering lower prices to frequent customers.
D) adding additional product features.
Q4) Generic strategies include all except
A) differentiation.
B) resources exploitation.
C) cost leadership.
D) focus.
Page 7
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Chapter 6: Corporate-Level Strategy: Creating Value Through Diversification
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Sample Questions
Q1) The term "golden parachute" refers to
A) a clause requiring that huge dividend payments be made upon takeover.
B) financial inducements offered by a threatened firm to stop a hostile suitor from acquiring it.
C) managers of a firm involved in a hostile takeover approaching a third party about making the acquisition.
D) pay given to executives fired because of a takeover.
Q2) Greenmail is an offer by a company,threatened by takeover,to offer its stock at a reduced price to a third party.
A)True
B)False
Q3) A firm should consider vertical integration when
A) the competitive situation is highly volatile.
B) customer needs are evolving.
C) the firm's suppliers willingly cooperate with the firm.
D) the firm's suppliers of raw materials are often unable to maintain quality standards.
Q4) Explain how transaction cost analysis can provide insights into vertical integration decisions.
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Chapter 7: International Strategy: Creating Value in Global Markets
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Sample Questions
Q1) Many U.S.multinational companies set up maquiladora operations south of the US-Mexico border primarily
A) to sell products into the growing Mexican market.
B) to help diversify their product
C) to avoid paying taxes in the US
D) to take advantage of the low cost of labour.
Q2) Low pressure for local adaptation combined with low pressure for lower costs would suggest what type of strategy?
A) international
B) global
C) multidomestic
D) transnational
Q3) By the end of the 20<sup>th</sup> century,the world's population exceeded 6 billion,with Canada representing
A) less than 0.5 percent
B) slightly more than 5 percent
C) about 320 million
D) less than 3.2 million
Q4) Explain Michael Porter's "diamond of national advantage."
Page 9
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Chapter 8: Entrepreneurial Strategy and Competitive Dynamics
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Sample Questions
Q1) The deregulation of the airline industry completely upset the bases of competition and led to the dramatic realignment of the dominant companies and their competitive advantages.Which of the following is not an example of a low cost airline that emerged with a different business model?
A) Swissair.
B) Westjet.
C) Ryanair.
D) Easyjet.
Q2) Outline the key reasons why companies launch new competitive initiatives.
Q3) Explain the "action-response" processes that create competitive dynamics within an industry.
Q4) One of the most common reasons that a cycle of competitive actions and reactions get started is
A) electronic data interchange.
B) globalization.
C) economic recession.
D) the emergence of new entrants.
Q5) At what stage in the lifecycle is a turnaround strategy likely to be employed?
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Q6) How do industries change and move through the various stages of their life cycle?
Chapter 9: Strategic Control and Corporate Governance
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Sample Questions
Q1) Discuss how changes in today's workforce and the business environment have contributed to growth in the use of boundaryless organizational designs.
Q2) There is no link between a firm's strategy and its structure.
A)True
B)False
Q3) One disadvantage of a functional structure is that differences in functional orientation may impede organization coordination and communication.
A)True
B)False
Q4) Briefly describe the strategic business unit (SBU)organizational structure.What are the advantages of this form of organizing?
Q5) In a simple structure where the owner-manager makes most of the important decisions,extensive rules and regulations are used to maintain order.
A)True
B)False
Q6) Describe the attributes of a simple organizational structure.What are the advantages and disadvantages associated with using the simple organizational form?
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Chapter 10: Creating Effective Organizational Designs
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Sample Questions
Q1) Contemporary approaches to strategic control rely primarily on A) feedback controls.
B) single-loop learning.
C) double-loop learning.
D) comparative learning.
Q2) Discuss the benefits of using reward and incentive systems as a means of strategic control.
Q3) The failure of many auditing firms to raise red flags about accounting irregularities in companies such as Enron and WorldCom is generally attributed to all of the following factors except
A) the desire to get future auditing contracts from the company.
B) the desire to get consulting work from the company because most audit firms also do consulting work.
C) the fact that auditors are appointed by the firm.
D) the failure of U.S. audit firms to follow internationally accepted accounting standards.
Q4) Different functional areas within an organization often have different reward systems.
A)True
B)False
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Chapter 11: Strategic Leadership: Creating a Learning
Organization and an Ethical Organization
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Sample Questions
Q1) Expert power
A) is derived from organizationally conferred decision-making authority.
B) arises from a manager's access, control, and distribution of information that is not freely available to everyone in an organization.
C) is derived from referent power.
D) is derived from the leader's capability and knowledge in a particular field.
Q2) Behavioural barriers to change occur because of conflicts between departments,conflicts arising from power relationships,and refusal to share information. A)True
B)False
Q3) A useful technique that can be used for gathering external information is known as A) in-sourcing.
B) outsourcing.
C) benchmarking.
D) invoicing.
Q4) The two broad bases of a leader's power are organizational and hierarchical. A)True
B)False
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Chapter 12: Managing Innovation and Fostering Corporate
Entrepreneurship
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Sample Questions
Q1) What are the differences between product and process innovation? What are the strategic implications of each approach to innovation?
Q2) Venture capital is
A) a form of private equity
B) available only at the start-up stage
C) a form of human capital
D) a form of angel investing
Q3) Rogers may be known as a company involved in cell phones and cable TV but it was once the leading manufacturer of radios in Canada and the U.S.
A)True
B)False
Q4) The vast majority of new firms are low-budget start-ups financed through
A) an initial public offering (IPO)
B) bank financing
C) venture capital
D) personal savings and contributions of family and friends
Q5) Explain what is meant by the term "entrepreneurial orientation" or EO.
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Q6) Discuss the concept of venture capital as a means of funding entrepreneurial initiatives.