Corporate Strategy
Final Test Solutions
Course Introduction
Corporate Strategy explores the formulation and implementation of strategies that determine the scope and direction of organizations at the highest level. The course examines how firms build and sustain competitive advantage, manage portfolios of businesses, engage in mergers and acquisitions, diversify, and respond to changes in the global marketplace. Through case studies and analytical frameworks, students learn how senior management makes strategic decisions to achieve long-term objectives, allocate resources, and create value across different business units. Emphasis is placed on strategic analysis, industry dynamics, and the challenges of coordinating complex organizations in dynamic environments.
Recommended Textbook
Strategic Management Concepts and Cases Competitiveness 10th Edition by Michael A. Hitt
Available Study Resources on Quizplus
13 Chapters
2022 Verified Questions
2022 Flashcards
Source URL: https://quizplus.com/study-set/704 Page 2
Chapter 1: Strategic Management and Strategic Competitiveness
Available Study Resources on Quizplus for this Chatper
135 Verified Questions
135 Flashcards
Source URL: https://quizplus.com/quiz/13749
Sample Questions
Q1) The Chapter 1 Opening Case shows that Borders was unsuccessful in competing in Internet book sales, but not against brick-and-mortar stores.
A)True
B)False
Answer: False
Q2) The Chapter 1 Strategic Focus shows that while Guanxi is an important element of doing business in China, it is unimportant in doing business in the United States as Huawei discovered when it entered US markets.
A)True
B)False
Answer: False
Q3) New markets created by iPods, PDAs, and WiFi are a result of A) disruptive technologies.
B) global competition.
C) knowledge intensity.
D) hypercompetition.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: The External Environment: Opportunities,
Threats, Industry Competition, and Competitor Analysis
Available Study Resources on Quizplus for this Chatper
164 Verified Questions
164 Flashcards
Source URL: https://quizplus.com/quiz/13750
Sample Questions
Q1) Competitor intelligence is
A) legally or illegally-gained data about competitors' internal strategic processes and competitive decisions.
B) strategic information gained from industrial espionage targeting international competitors.
C) the data that the firm gathers to understand competitors' objectives, strategies, assumptions, and capabilities.
D) illegal to gather under the Sarbanes-Oxley Act.
Answer: C
Q2) (Refer to the above Case Scenario) How intense is competitive rivalry likely to be among incumbents of the home furnishings manufacturing industry?
Answer: The best answers will be able to walk through the determinants of rivalry spelled out in pages 57 through 58. The fact that this industry is fairly characterized as having nearly perfect competition suggests that rivalry is high. Larger players are likely to have significant exit barriers, particularly given the slow growth, high fixed costs, lack of differentiation, and low profitability of the market overall. Thus, new larger entrants to this industry may further escalate the degree of competition.
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Available Study Resources on Quizplus for this Chatper
153 Verified Questions
153 Flashcards
Source URL: https://quizplus.com/quiz/13751
Sample Questions
Q1) Examples of support activities include all of the following EXCEPT
A) Finance.
B) Human Resources.
C) Follow-up Service.
D) Management Information Systems.
Answer: C
Q2) Because the firm combines tangible and intangible resources to create capabilities, A) these capabilities are fragile and subject to sudden loss of value.
B) they are often based on developing, carrying, and exchanging information and knowledge through the firm's human capital.
C) they are easily transferred from one firm to another as employees change jobs.
D) these types of capabilities are considered primary activities in the value chain. Answer: B
Q3) Every core competence is a capability and every capability is a core competence. A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Business-Level Strategy
Available Study Resources on Quizplus for this Chatper
147 Verified Questions
147 Flashcards
Source URL: https://quizplus.com/quiz/13752
Sample Questions
Q1) Almost any identifiable human or organizational characteristic can be used to subdivide a market into segments that differ from one another on a given characteristic.
A)True
B)False
Q2) Describe the risks of a differentiation strategy.
Q3) Ikea offers young customers a selection of home furnishings featuring good design, function, and acceptable quality at low prices. Ikea is using which business level strategy?
A) Cost leadership
B) Focused cost leadership
C) Differentiation
D) Focused differentiation
Q4) A new generation of lunch trucks in cities such as New York, San francisco, and Los Angeles serving high-end fare such as hamburgers made from grass-fed cattle, escargot and crème brulee illustrate the focus cost leadership strategy.
A)True
B)False
Q5) Describe the additional risks undertaken by firms pursuing a focus strategy.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Competitive Rivalry and Competitive Dynamics
Available Study Resources on Quizplus for this Chatper
150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/13753
Sample Questions
Q1) A firm with a reputation as a price predator (an actor that frequently reduces prices to gain or maintain market share) generates few responses to its pricing tactical actions.
A)True
B)False
Q2) Mighty Mike's, a manufacturer of power tools for the home hobbyist, has seen its main competitor, MyTools, bring out a line of power tools that are smaller sized, lighter weight, and suitable for women and older hobbyists who have weaker hands than the typical male workshop hobbyist. Mighty Mike is waiting to see whether MyTool's new line is a success. Mighty Mike could be classified as a second mover.
A)True
B)False
Q3) Define slow-cycle, fast-cycle and standard cycle markets.
Q4) Extensive market commonality guarantees intense competition in an industry.
A)True
B)False
Q5) Firms that are typically late movers usually have little organizational slack.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Corporate-Level Strategy
Available Study Resources on Quizplus for this Chatper
162 Verified Questions
162 Flashcards
Source URL: https://quizplus.com/quiz/13754
Sample Questions
Q1) GE (Chapter 6 Opening Case) was diversified and manages businesses that have only a few links between them. This corporate-level strategy is best described as ________diversification.
A) related constrained
B) related linked
C) unrelated
D) conglomerate
Q2) Multipoint competition occurs when
A) firms have multiple retail outlets.
B) firms have multiple products in their primary industry.
C) diversified firms compete against each other in several markets.
D) firms have diversified portfolios of companies.
Q3) Revenues for United Parcel Service (UPS) come from the following business segments: 60 percent from U.S. package delivery operations, 22 percent from international package delivery, and 18 percent from non-packaging operations. Which best describes the corporate level strategy of UPS?
A) Single business
B) Dominant business
C) Related constrained
D) Related linked
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Merger and Acquisition Strategies
Available Study Resources on Quizplus for this Chatper
174 Verified Questions
174 Flashcards
Source URL: https://quizplus.com/quiz/13755
Sample Questions
Q1) Traditionally, leveraged buyouts were used as a restructuring strategy to correct managerial mistakes or because the firm's managers were making decisions that primarily served their own interests rtaher than those of the shareholders.
A)True
B)False
Q2) The strategy of Citigroup under CEO Sanford Weill was to create a "financial supermarket" where customers shop for a variety of financial services within the same company. This strategy was executed via a series of acquisitions but ultimately failed. This situation was the result of
A) Citigroup's managers focusing too much on acquisitions at the expense of managing their existing businesses.
B) key managers leaving from the acquired firms which left the firms with inferior management talent.
C) the firm becoming too vertically integrated.
D) the firm becoming too focused on its core businesses.
Q3) Typical returns on acquisitions for acquiring firms are close to zero.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: International Strategy
Available Study Resources on Quizplus for this Chatper
167 Verified Questions
167 Flashcards
Source URL: https://quizplus.com/quiz/13756
Sample Questions
Q1) The Chapter 8 Opening Case indicates that main basic benefit that Starbucks derives from its international strategies is
A) economies of scale and learning
B) location advantages
C) increased market size
D) extending the product life cycle
Q2) Which pair of industries would NOT be considered as "related and supporting" under Porter's diamond model?
A) Japanese cameras and copiers
B) Italian leather-processing and shoes
C) U.S. computers and software
D) Highway systems and the supply of debt capital
Q3) Most firms enter international markets sequentially, introducing their ____ first.
A) most innovative products
B) largest and strongest lines of business
C) most generic products, which will be more likely to generate universal product demand,
D) products customized to the region
Q4) (Refer to the above Case Scenario) Which option would you recommend?
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Cooperative Strategy
Available Study Resources on Quizplus for this Chatper
148 Verified Questions
148 Flashcards
Source URL: https://quizplus.com/quiz/13757
Sample Questions
Q1) Firms consider entering international alliances because multinational firms outperform firms operating only in their home markets.
A)True
B)False
Q2) Collusion is a form of cooperative strategy.
A)True
B)False
Q3) The use of strategic alliances
A) is unlikely to yield success if partnering firms are headquartered in the same country.
B) may be too restrictive to facilitate entry into new markets.
C) usually increases the investment necessary to introduce new products.
D) is more frequent than other types of cooperative strategies.
Q4) (Refer to the above Case Scenario) What should Bunnywac's strategy be with regard to the lapsing technology contract?
Q5) Strategic alliances are cooperative strategies between firms that combine their resources and capabilities to create a competitive advantage.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Corporate Governance
Available Study Resources on Quizplus for this Chatper
170 Verified Questions
170 Flashcards
Source URL: https://quizplus.com/quiz/13758
Sample Questions
Q1) Long-term incentives facilitates the firm's efforts through the board of directors' pay-related decisions to avoid potential agency problems by linking managerial compensation to the wealth of common shareholders.
A)True
B)False
Q2) What is the main lesson learned from investor Carl Icahn's bid to purchase Clorox Co.?
A) Boards will only defend against takeover attempts if their companies are performing poorly.
B) The situation demonstrates two possibilities. First, Clorox was underperforming and the market for corporate control disciplined managers to improve performance. The second possibility was that investors sometimes take over companies that are performing well.
C) Boards commonly make mistakes in rejecting takeover bids as shown in the case of Icahn's bid for Clorox Co.
D) Clorox was clearly underperforming and Icahn's bid was a good example of the efficiency of the market for corporate control.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Organizational Structure and Controls
Available Study Resources on Quizplus for this Chatper
157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/13759
Sample Questions
Q1) Implementing the multidomestic strategy requires decentralization
A) to facilitate the tailoring of products to the demand in local markets.
B) to develop economies of scale.
C) in order to achieve economies of scope.
D) to reduce bureaucracy and speed up decision-making.
Q2) In an SBU structure, ____ is/are evaluated using strategic controls, whereas ____ is/are evaluated using financial controls.
A) each SBU, divisions within the SBUs
B) divisions within the SBUs, each SBU
C) managers of the SBUs, headquarters staff
D) headquarters staff, managers of the SBUs
Q3) The fewest integrative devices are used in the ____ structure.
A) simple
B) competitive multidivisional
C) SBU
D) network
Q4) Alliances of organizations in the same position on the value chain are known as vertical alliances.
A)True
B)False
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Strategic Leadership
Available Study Resources on Quizplus for this Chatper
148 Verified Questions
148 Flashcards
Source URL: https://quizplus.com/quiz/13760
Sample Questions
Q1) GE performed exceptionally well under Jack Welch, the former CEO of GE. Jeffery Immelt, the current CEO, has made changes to the firm's corporate-level strategy and structure. These changes were necessary because the competitive landscape had shifted significantly. Immelt's actions resulted in
A) a smooth transition to the new organizational strategy because of the organizational slack generated by Jack Welch.
B) replacement of the entire top management team because once individuals commit to a core ideology and an envisioned future, they are unlikely to change.
C) some resistance by organizational stakeholders who are accustomed to Jack Welch and the high performance which he brought to GE.
D) acceptance by GE's stakeholders as Immelt inherited the "iconic aura" surrounding Jack Welch.
Q2) (Refer to the above Case Scenario) To what extent had the Walt Disney Company become a reflection of Walt up to the time that he died in 1966?
Q3) Discuss how the managerial succession process and the composition of the top management team interact to affect strategy.
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Strategic Entrepreneurship
Available Study Resources on Quizplus for this Chatper
147 Verified Questions
147 Flashcards
Source URL: https://quizplus.com/quiz/13761
Sample Questions
Q1) An organization engaging in strategic entrepreneurship focuses on identifying opportunities that it can exploit through innovations.
A)True
B)False
Q2) While both incremental and radical innovations can create value, incremental innovations have the potential to contribute more significantly to a firm's efforts to earn above-average returns.
A)True
B)False
Q3) A successful ____ innovation will be less risky but less profitable than a successful ____ innovation.
A) incremental, radical
B) radical, incremental
C) alliance-generated, acquisition-generated
D) acquisition-generated, alliance-generated
Q4) Given the rapid rate of technological change, patents are not a useful gauge of a firm's entrepreneurial prowess.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15