Corporate Strategy
Final Test Solutions
Course Introduction
Corporate Strategy explores the frameworks, concepts, and tools used by organizations to achieve long-term competitive advantage and organizational objectives across multiple businesses or markets. The course examines strategic decision-making at the highest levels of a company, including diversification, mergers and acquisitions, international expansion, resource allocation, and portfolio management. Through case studies and real-world examples, students learn how to analyze competitive environments, evaluate corporate capabilities, and formulate strategies that drive sustainable growth and value creation for stakeholders.
Recommended Textbook
Concepts in Strategic Management and Business Policy 15th Edition by Thomas
Available Study Resources on Quizplus
13 Chapters
1413 Verified Questions
1413 Flashcards
Source URL: https://quizplus.com/study-set/2027
Page 2
L. Wheelen
Chapter 1: Basic Concepts in Strategic Management
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/40299
Sample Questions
Q1) FedEx stipulates specific employee behaviors including how a driver dresses to how keys are held when approaching a customer's door.This is an example of a A) program.
B) budget.
C) procedure.
D) policy.
E) control.
Answer: C
Q2) The existence of a performance gap
A) should cause management to question their objectives, strategies, and policies.
B) is not an indicator of problems if it only happens once.
C) is only the concern of top management because they set the original strategies.
D) should cause management to look only within the organization to determine the problem.
E) should signal the immediate need for a layoff.
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Corporate Governance
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/40300
Sample Questions
Q1) According to the research,in turbulent environments,the best type of planning is
A) top-down strategic planning.
B) bottom-up strategic planning.
C) horizontal strategic planning.
D) concurrent strategic planning.
E) composite strategic planning.
Answer: A
Q2) A direct interlocking directorate occurs when two corporations have directors who also serve on the board of a third firm.
A)True
B)False
Answer: False
Q3) Stewardship theory proposes insiders (senior leadership) tend to identify with the corporation and its success.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Social Responsibility and Ethics in Strategic Management
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/40301
Sample Questions
Q1) A study concerning social responsibility indicates that socially responsible firms are more likely to be welcomed into another country.
A)True
B)False
Answer: True
Q2) Archie Carroll's four responsibilities listed in order of priority are
A) legal, economic, ethical, and discretionary.
B) legal, ethical, discretionary, and economic.
C) economic, legal, ethical, and discretionary.
D) economic, ethical, discretionary, and legal.
E) ethical, economic, legal, and discretionary.
Answer: C
Q3) Managers who want to improve ethical behavior should take actions such as
A) communicate the code of ethics in training programs.
B) emphasize the code of ethics in performance appraisal systems.
C) follow a code of ethical behavior themselves.
D) communicate the code of ethics in policies and procedures.
E) all of the above
Answer: E
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Environmental Scanning and Industry Analysis
Available Study Resources on Quizplus for this Chatper
119 Verified Questions
119 Flashcards
Source URL: https://quizplus.com/quiz/40302
Sample Questions
Q1) Which is the largest age group of the current generations in all developed countries?
A) Baby Boomers
B) Woofies
C) Silent Generation
D) Gen X
E) Gen Y
Q2) Those variables that can affect significantly the overall competitive positions of companies within any particular industry are known as
A) external strategic factors.
B) internal strategic factors.
C) matrix factors.
D) key success factors.
E) industry scenario.
Q3) What are the two factors that tend to determine whether an industry will be primarily multi-domestic or primarily global?
Q4) Key success factors seldom vary from industry to industry.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 6
Chapter 5: Organizational Analysis and Competitive Advantage
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/40303
Sample Questions
Q1) Which of the following statements is true concerning clusters?
A) The desire to build or upgrade a core competency is one reason why entrepreneurial and other fast-growing firms often tend to locate close to their competitors.
B) Clusters are geographically dispersed companies operating within the same industry.
C) The United States does not have any clusters; they are all located in Europe.
D) According to Porter, clusters provide barriers to the access of employees, suppliers, and specialized information.
E) Employees from competitive firms in a cluster are not permitted to socialize with one another.
Q2) When a company takes apart a competitor's product in order to find out how it works,this process is known as
A) durability.
B) replicability.
C) reverse engineering.
D) transparency.
E) transferability.
Q3) What is R&D intensity?
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Strategy Formulation: Business Strategy
Available Study Resources on Quizplus for this Chatper
113 Verified Questions
113 Flashcards
Source URL: https://quizplus.com/quiz/40304
Sample Questions
Q1) Populating a SWOT chart,by itself,is just the start of a strategic analysis.
A)True
B)False
Q2) The two general types of cooperative strategies are collusion and strategic alliances.
A)True
B)False
Q3) Walmart,as a discount retailer,is an example of a company following which of Porter's competitive strategies?
A) differentiation
B) cost leadership
C) differentiation focus
D) competitive advantage
E) cost focus
Q4) The first firm through a strategic window can occupy an extremely favorable niche and discourage competition (if the firm has the required internal strengths).
A)True
B)False
Q5) Discuss the reasons a firm may form a strategic alliance.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Strategy Formulation: Corporate Strategy
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/40305
Sample Questions
Q1) The ability for Nike to manufacture its own shoes and then build stores for distribution is an example of
A) forward integration.
B) horizontal integration.
C) backward integration.
D) transferred integration.
E) mass integration.
Q2) Which strategy is most appropriate for a company in an industry in which the future is expected to continue as an extension of the present?
A) horizontal integration strategy
B) no change strategy
C) retrenchment strategy
D) pause/proceed with caution strategy
E) profit strategy
Q3) Define a retrenchment strategy.Discuss the more popular options.
Q4) A long-term contract is considered vertical integration.
A)True
B)False
Q5) Discuss the three general orientations comprising directional strategy.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Strategy Formulation: Functional Strategy and Strategic Choice
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/40306
Sample Questions
Q1) A popular financial strategy in which a company is acquired in a transaction financed largely by debt and eventually paid with money generated from the acquired company's operations or by sale of its assets is
A) illegal in most countries.
B) a good way to build a core competency.
C) an application of the capital asset pricing model.
D) the leveraged buyout.
E) an example of internal financing.
Q2) According to a recent survey by Deloitte Consulting,the most popular outsourced activity was
A) marketing.
B) sales.
C) finance.
D) R&D.
E) information technology.
Q3) The use of the Internet to market goods directly to the customer allows a company to use dynamic pricing.
A)True
B)False
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Strategy Implementation: Global Strategy
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/40307
Sample Questions
Q1) Global considerations dominate organizational design in which stage of international development?
A) Stage 1
B) Stage 2
C) Stage 3
D) Stage 4
E) Stage 5
Q2) Only ________ of human resource managers have ever worked abroad,so most have little understanding of a global assignment's unique personal and professional challenges and thus fail to develop the training necessary for such an assignment.
A) 11%
B) 21%
C) 51%
D) 41%
E) 31%
Q3) Licensing grants rights to another company to open a retail store using the franchiser's name and operating system.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 10: Strategy Implementation: Organizing and Structure
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/40308
Sample Questions
Q1) The job design technique that combines tasks to give a worker more of the same type of duties to perform is known as
A) job combination.
B) job rotation.
C) job enrichment.
D) job enlargement.
E) job motivation.
Q2) Alfred Chandler,known for his study of large American corporations,concluded that
A) organic structure is best for firms in a changing environment.
B) mechanistic structure is best for firms in a changing environment.
C) structure follows strategy.
D) strategy follows structure.
E) strategic business units are the key to effective decentralization.
Q3) Which structure is often called a virtual organization?
A) strategic business units
B) functional structure
C) divisional structure
D) network structure
E) matrix structure
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Strategy Implementation: Staffing and Directing
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/40309
Sample Questions
Q1) Which one of the following is not one of the four general methods of managing two different cultures?
A) separation
B) deculturation
C) integration
D) assimilation
E) segmentation
Q2) Research indicates that companies undertaking cost-cutting programs
A) are four times more likely than others to cut costs again.
B) seldom reduce staff further.
C) seldom undertake a strategic re-orientation.
D) overwhelmingly improve financial performance in the long run.
E) change strategy immediately.
Q3) Analyzers are corporations that operate in at least two different product-market areas,one stable and one variable.Analyzers corporations tend to have CEOs with a marketing/sales background.
A)True
B)False
Q4) What is TQM and what are its essential ingredients?
Q5) What is executive succession? Discuss the hiring of insiders versus outsiders.
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Evaluation and Control
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/40310
Sample Questions
Q1) Corporations will emphasize output controls when they are following a strategy of A) concentric diversification.
B) conglomerate diversification.
C) retrenchment.
D) divestment.
E) vertical integration.
Q2) Which of the following is not a guideline for proper control?
A) Control should involve only a minimum amount of information.
B) Long-term as well as short-term controls should be used.
C) Controls should be timely so that corrective actions can be taken before it is too late.
D) Controls should measure all activities in order to be comprehensive.
E) Controls should emphasize the reward of meeting or exceeding standards rather than punishment for failing to meet standards.
Q3) ABC accounting allows accountants to charge costs more accurately than the traditional method because it allocates overhead far more precisely.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Suggestions for Case Analysis
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/40311
Sample Questions
Q1) Which financial indicator is calculated by the ratio of annual dividends per share to annual earnings per share?
A) dividend payout ratio
B) dividend yield on common stock
C) price/earnings ratio
D) return on investment
E) return on equity
Q2) Which financial ratio indicates the number of days of cash on hand,at present sales levels?
A) days of inventory
B) fixed asset turnover
C) days of cash
D) average collection period
E) inventory turnover
Q3) The index of sustainable growth indicates how much of the growth rate of sales can be sustained by internally generated funds.
A)True
B)False
Q4) What is the Z-value?
To view all questions and flashcards with answers, click on the resource link above. Page 15