Corporate Strategy
Final Test Solutions
Course Introduction
Corporate Strategy explores the frameworks and analytical tools that organizations use to achieve long-term success and sustain competitive advantage across industries and markets. The course emphasizes strategic decision-making at the corporate level, including diversification, vertical integration, mergers and acquisitions, global expansion, and managing multi-business portfolios. Students will examine real-world case studies to understand how companies allocate resources, build capabilities, and respond to changing environments, while considering the roles of leadership, culture, and governance in strategy formulation and execution.
Recommended Textbook
Strategic Management Text and Cases 8th Edition by Gregory Dess
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12 Chapters
1724 Verified Questions
1724 Flashcards
Source URL: https://quizplus.com/study-set/3051
Page 2
Chapter 1: Strategic Management: Creating Competitive Advantages
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174 Verified Questions
174 Flashcards
Source URL: https://quizplus.com/quiz/60609
Sample Questions
Q1) Firms must be aware of goals other than short-term profit maximization.One area of concern should be social responsibility,which is the
A) expectation that business will strive to improve the overall welfare of society.
B) idea that organizations are solely responsible to local citizens.
C) fact that court costs could impact the financial bottom line.
D) idea that businesses are responsible for maintaining a healthy social climate for their employees.
Answer: A
Q2) Strategic management consists of the analyses,decisions,and actions an organization undertakes in order to create and sustain competitive advantages.
A)True
B)False
Answer: True
Q3) An idealistic vision can arouse employee enthusiasm and therefore is a good vision.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Analyzing the External Environment of the Firm:
Creating Competitive Advantages
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173 Verified Questions
173 Flashcards
Source URL: https://quizplus.com/quiz/60608
Sample Questions
Q1) Complement products typically have no impact on the value of products and services of the firm.
A)True
B)False
Answer: False
Q2) Even with all of the advances in recent years,forecasting is typically considered more of an art than a science and it is of little use in generating accurate predictions.
A)True
B)False
Answer: False
Q3) A major sociocultural trend in the United States is the increased educational attainment by women.
A)True
B)False
Answer: True
Q4) Environmental monitoring is not an input to forecasting.
A)True
B)False
Answer: False
Page 4
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Chapter 3: Assessing the Internal Environment of the Firm
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174 Verified Questions
174 Flashcards
Source URL: https://quizplus.com/quiz/60607
Sample Questions
Q1) The customer 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: A
Q2) Top managers have learned not to rely on SWOT to stimulate self-reflection and group discussions about how to improve their firm and position for success.
A)True
B)False
Answer: False
Q3) The internal business 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: B
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Page 5
Chapter 4: Recognizing a Firms Intellectual Assets: Moving
Beyond a Firms Tangible Resources
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174 Verified Questions
174 Flashcards
Source URL: https://quizplus.com/quiz/60606
Sample Questions
Q1) London-based International Power increased firm efficiency by using all but which of the following?
A) forwarding email messages only when strictly necessary
B) limiting the email message recipient list
C) using the telephone
D) eliminating email communication
Q2) The gap between company market value and book value is far greater for knowledge-intensive corporations than for firms with strategies based primarily on intangible assets.
A)True
B)False
Q3) The difference between the market value and book value of a firm is its social capital.
A)True
B)False
Q4) In order to take advantage of investment in human capital,a firm should
A) rotate workers through functions in the company as quickly as possible.
B) keep employees in the same position forever.
C) refrain from training individual employees.
D) establish practices that will enhance employee retention.
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Chapter 5: Business-Level Strategy: Creating and Sustaining Competitive Advantages
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163 Verified Questions
163 Flashcards
Source URL: https://quizplus.com/quiz/60605
Sample Questions
Q1) An important issue in evaluating the sustainability of a unique strategy is whether or not rivals will be able to imitate its strategy or create a viable substitute.
A)True
B)False
Q2) Too much focus on one or a few value-chain activities can be a pitfall of the overall cost leadership strategy.
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) If a firm has a successful differentiation strategy,it is necessary to attain parity on cost.
A)True B)False
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Chapter 6: Corporate-Level Strategy: Creating Value Through Diversification
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114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/60604
Sample Questions
Q1) In the BCG Growth Share Matrix,the suggested strategy for Stars is to A) milk them to finance other businesses.
B) invest large sums to gain a good market share.
C) maintain position and after the market growth slows use the business to provide cash flow.
D) not invest in them and to shift cash flow to other businesses.
Q2) Creating value within business units can happen when a firm tries to find and acquire either poorly performing firms with unrealized potential or firms in industries on the threshold of significant,positive change.This action is known as A) restructuring.
B) leveraging core competencies.
C) parenting.
D) sharing activities.
Q3) At times,the only other people who may have benefited from a merger-acquisition were the shareholders of the acquired firms or the investment bankers advising the acquiring firm.
A)True
B)False
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Chapter 7: International Strategy: Creating Value in Global Markets
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140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/60603
Sample Questions
Q1) Regions represent the outcomes of centuries of political and cultural history that results in not only _________ but also mutual _____________.
A) differences; expectations
B) similarities; expectations
C) commonalities; losses
D) commonalities; affinities
Q2) Which one of the following is not a Western hemisphere trade bloc?
A) NAFTA
B) MERCOSUR
C) ASEAN
D) Latin American Integration Association
Q3) Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?
A) firms that compete in industries in which consumer preferences vary substantially in each country
B) firms in industries that are expanding very rapidly
C) firms in industries that have value added by sales and marketing departments
D) firms in industries that have much value added in research and design or manufacturing
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Chapter 8: Entrepreneurial Strategy and Competitive Dynamics
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115 Verified Questions
115 Flashcards
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Sample Questions
Q1) According to a study by the Kaufmann Foundation,which of the following is the largest source of funding for businesses that have been operating at least five years?
A) public financing
B) venture capital
C) loans
D) angel financing
Q2) Which of the below best describes the competitive tendencies of small firms?
A) Small firms tend to signal their competitive actions long before they launch those actions, because they lack legitimacy in the marketplace.
B) Small firms typically have more resources available as they undertake competitive attacks than do large firms.
C) Small firms are more nimble and can respond quickly to competitive attacks.
D) Small firms are more nimble and cannot respond quickly to competitive attacks.
Q3) Entrepreneurship refers to new value creation and can include activities in major corporations.
A)True
B)False
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Page 10
Chapter 9: Strategic Control and Corporate Governance
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116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/60601
Sample Questions
Q1) Regulations backed up with strong sanctions do not help an organization avoid conducting business in an unethical manner.
A)True
B)False
Q2) Research has shown that executives who have large holdings of stock in their firm are more likely to have diversification strategies more consistent with shareholder interests,like increasing long-term returns.
A)True
B)False
Q3) In choosing sides concerning CEO duality,two schools of thought exist.Which of the following would not be a consideration for the agency theory school of thought?
A) CEO duality complicates the issue of CEO succession.
B) CEO duality reinforces popular doubts about the legitimacy of the system as a whole.
C) CEO duality can create conflicts of interest that can negatively affect the interests of the shareholders.
D) Firm performance always is improved under CEO duality.
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Chapter 10: Creating Effective Organizational Designs
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121 Verified Questions
121 Flashcards
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Sample Questions
Q1) If an international firm has a global strategy and a relatively low level of product diversity,the best choice for its organizational structure is a(n)______________ structure.
A) worldwide functional
B) worldwide product division
C) worldwide matrix
D) international division
Q2) Which of the following is an advantage of a functional type of organizational structure?
A) Decentralized decision-making enhances an organization-wide perspective across functions.
B) It facilitates the development of general management talent.
C) Pooling of specialists enhances coordination and control.
D) It is easy to establish uniform performance standards.
Q3) One of the advantages of boundaryless structures is that they can be implemented without upgrading the skills of workers and managers.
A)True
B)False
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12
Chapter 11: Strategic Leadership: Creating a Learning
Organization and an Ethical Organization
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139 Verified Questions
139 Flashcards
Source URL: https://quizplus.com/quiz/60599
Sample Questions
Q1) Proactive measures to prevent organizational ethics problems do not include A) instituting a reward system which considers outcomes as its primary criterion.
B) using leaders as role models of ethical behavior.
C) issuing statements describing organization commitment to certain standards of behavior.
D) using organization information systems as a control system.
Q2) In the integrity-based approach to ethics management,social actors are guided by a combination of self-interest,ideals,values,and social expectations.
A)True
B)False
Q3) Emotional intelligence (EI)is one of the components of a high intelligence quotient (IQ).
A)True
B)False
Q4) Leaders may find it difficult to implement their vision and strategies because they have inadequate or inappropriate budgeting and control systems.
A)True
B)False
Page 13
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Chapter 12: Managing Innovation and Fostering Corporate
Entrepreneurship
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121 Verified Questions
121 Flashcards
Source URL: https://quizplus.com/quiz/60598
Sample Questions
Q1) New technology is an important source of new ideas because it
A) is seen by the customer as being important.
B) provides the manpower that firms need to make new products and services.
C) automatically reduces organizational waste.
D) provides the raw material that firms use to make innovative products and services.
Q2) Options exist when the owner of the option has _____________ to engage in a transaction.
A) the obligation but not the right
B) the right but not the obligation
C) the right and the obligation
D) the neither the right nor the obligation
Q3) Which of the following dimensions of entrepreneurial orientation is described as an independent action by an individual or team aimed at bringing forth a business concept or vision and carrying it through to completion?
A) autonomy
B) innovativeness
C) competitive aggressiveness
D) risk taking
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