Corporate Strategy
Midterm Exam
Course Introduction
Corporate Strategy explores the frameworks and analytical tools used by organizations to achieve long-term competitive advantage and growth across multiple business units and industries. The course examines key concepts such as diversification, vertical integration, mergers and acquisitions, strategic alliances, and global strategy. Students will learn how to assess the external environment, internal resources, and corporate portfolio to make informed decisions that align with overall corporate objectives. Through case studies and practical applications, students will develop skills in strategic analysis, decision-making, and implementation to address the complex challenges faced by corporations in dynamic markets.
Recommended Textbook
Strategic Management Concepts and Cases Competitiveness 12th Edition by Michael A. Hitt
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13 Chapters
1670 Verified Questions
1670 Flashcards
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Chapter 1: Strategic Management and Strategic Competitiveness
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133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/3850
Sample Questions
Q1) Customers, suppliers, unions, and local governments are examples of capital market stakeholders.
A)True
B)False
Answer: False
Q2) The I/O (industrial organization) model assumes that the uniqueness of a firm's resources and capabilities is the main source of above-average returns.
A)True
B)False
Answer: False
Q3) Economies of scale and huge advertising budgets are just as effective in the new competitive landscape as they were in the past.
A)True
B)False
Answer: False
Q4) Resources are considered rare when they have no structural equivalent.
A)True
B)False
Answer: False
Page 3
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Chapter 2: The External Environment: Opportunities,
Threats, Industry Competition, and Competitor Analysis
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138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/3851
Sample Questions
Q1) The use of the Internet by Netflix to collect data on customer preferences is an example of:
A) assessing.
B) monitoring.
C) forecasting.
D) scanning.
Answer: D
Q2) An owner of a stable of racehorses has been earning below-average returns for more than 15 years. To a colleague, he expressed his determination to stay in horse racing until he died because "racing is in my blood." This individual is probably still racing horses because of:
A) high barriers to exit.
B) high switching costs.
C) high fixed costs.
D) low levels of competitive rivalry.
Answer: A
Q3) Any competitor intelligence practice that is legal is also ethical.
A)True
B)False
Answer: False
Page 4
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Chapter 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages
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133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/3852
Sample Questions
Q1) ______ can be viewed as the capacity to take action.
A) Strategic assets
B) Human capital
C) Core competencies
D) Functional capabilities
Answer: C
Q2) Capabilities are usually developed separately from specific functional areas such as manufacturing, R&D, and marketing.
A)True
B)False
Answer: False
Q3) Compared to tangible resources, intangible resources are:
A) of less strategic value to the firm.
B) less likely to be the focus of strategic analysis.
C) a superior source of capabilities.
D) more likely to be reflected on the firm's balance sheet.
Answer: C
Page 5
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Chapter 4: Business-Level Strategy
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/3853
Sample Questions
Q1) The generalized forms of value that goods and services provide are either low cost with acceptable features or highly differentiated features with acceptable cost.
A)True B)False
Q2) Human resources and other support functions are not value-creating activities in the value chain; only value chain activities create value.
A)True B)False
Q3) When a firm is able to produce nonstandardized (that is, distinctive) products for customers who value differentiated features more than they value low cost, the firm is successfully implementing:
A) a differentiation strategy.
B) a cost leadership strategy.
C) an integrated cost leadership/differentiation strategy.
D) a single-product strategy.
Q4) Describe the risks of a differentiation strategy.
Q5) Describe the additional risks undertaken by firms pursuing a focus strategy.
Q6) What are the risks of an integrated cost leadership/differentiation strategy?
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Chapter 5: Competitive Rivalry and Competitive Dynamics
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107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/3854
Sample Questions
Q1) The flat-panel television market where prices have come down and competition has become more stable is best characterized as:
A) standard-cycle.
B) fast-cycle.
C) slow-cycle.
D) competitive rivalry.
Q2) Late movers are those firms that:
A) respond to a competitive action a significant amount of time after the first mover's action and the second mover's response.
B) respond to a first mover's competitive action often through imitation or a move designed to counter the effects of the action.
C) take an initial competitive action (either strategic or tactical).
D) typically achieve higher-than-average returns because they can imitate the most efficient actor.
Q3) Two firms, such as Fed Ex and UPS that have similar resources and common markets would be direct and mutually acknowledged competitors.
A)True
B)False
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Chapter 6: Corporate-Level Strategy
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140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/3855
Sample Questions
Q1) The purchasing of firms in the same industry is called:
A) unrelated diversification.
B) vertical integration.
C) networking the organization.
D) horizontal acquisition.
Q2) A company pursuing vertical integration can gain market power over its competitors through all of the following EXCEPT:
A) improved adjustment to technological changes.
B) savings on operations costs.
C) improved product quality.
D) avoidance of market costs.
Q3) What is the similarity between high-technology firms and service-based firms that makes them risky as restructuring candidates?
A) They are dependent on human resources.
B) They have few tangible assets.
C) Both types of firm rely on financial economies.
D) The demand for their products is highly sensitive to economic downturns.
Q4) What are the five categories of businesses based on level of diversification?
Q5) What are the managerial motives to diversify?
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Chapter 7: Merger and Acquisition Strategies
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/3856
Sample Questions
Q1) Restructuring strategies are commonly used to correct or deal with the results of ineffective mergers and acquisitions.
A)True
B)False
Q2) Due diligence includes all of the following activities EXCEPT assessing:
A) differences in firm cultures.
B) tax consequences of the acquisition.
C) the level of private synergy between the two firms.
D) financing for intended transaction.
Q3) All of the following statements are correct EXCEPT:
A) immediately after the announcement of a planned acquisition, the stock price of the majority of acquiring firms declines.
B) shareholders of acquired firms often earn above-average returns from an acquisition.
C) the majority of acquisitions increase long-term value for the acquiring firm.
D) shareholders of acquiring firms typically earn returns from the transaction that are close to zero.
Q4) What are the differences between downscoping and downsizing and why are each used?
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9
Chapter 8: International Strategy
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129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/3857
Sample Questions
Q1) U.S. companies moving into the international market need to be sensitive to the need for local country or regional responsiveness because of:
A) increasing rejection of American culture across much of the world.
B) the sophistication of the international consumer because of the Internet.
C) consumer needs, political and legal structures, and social norms vary by country.
D) the increasing loss of economies of scale.
Q2) The "regionalization" environmental trend means that firms can focus on a region (customization) but also have some standardization or sharing within the region.
A)True
B)False
Q3) A global strategy:
A) is easy to manage because of common operating decisions across borders.
B) achieves efficient operations without sharing resources across country boundaries.
C) increases risk because decision making is centralized at the home office.
D) lacks responsiveness to local markets.
Q4) What are the three basic benefits of international strategies?
Q5) Discuss the effect of international diversification on a firm's returns.
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Page 10
Chapter 9: Cooperative Strategy
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123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/3858
Sample Questions
Q1) Firms entering into synergistic strategic alliances expect to attain:
A) technological complexity.
B) economies of scope.
C) monopolistic market power.
D) learning curve efficiencies.
Q2) The Renault Nissan alliance discussed in the Mini Case is an example of a ________ in that the firms seek to create economies of scope by sharing their resources and capabilities to develop manufacturing platforms that can be used to produce cars that will be either a Renault or a Nissan.
A) joint venture
B) synergistic alliance
C) horizontal complementary alliance
D) dynamic alliance network
Q3) Legitimately, a firm may pursue an international strategic alliance for all of the following reasons EXCEPT:
A) to enhance the compensation packages of top managers.
B) to leverage core competencies in new markets.
C) to operate within government restrictions in the local country.
D) to escape limited domestic growth opportunities.
Q4) Identify the three types of corporate-level cooperative strategies.
Page 11
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Chapter 10: Corporate Governance
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142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/3859
Sample Questions
Q1) In Japan, the principal source of the active monitoring of large companies comes from:
A) Boards of Directors.
B) stock brokerage companies.
C) the government.
D) banks.
Q2) One of the changes to enhance the effectiveness of the Board of Directors is the creation of a "lead director" role that has strong powers with regard to the Board agenda and oversight of non-management Board member activities.
A)True
B)False
Q3) Amos Ball, Inc., is a printing company in Iowa that has been family owned and managed for three generations. Which of the following statements is most likely to be TRUE?
A) Agency costs at Amos Ball are high.
B) If research findings are valid, Amos Ball, Inc., will perform better if a family member is CEO than if an outsider is CEO.
C) At Amos Ball, the opportunity for managerial opportunism is high.
D) The functions of risk-bearing and decision making are separate at Amos Ball.
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Page 12
Chapter 11: Organizational Structure and Controls
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136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/3860
Sample Questions
Q1) Companies and business units of large diversified firms using the cost leadership strategy should use strategic controls.
A)True
B)False
Q2) Financial controls are most important in the ______ strategy.
A) single business
B) related constrained
C) unrelated diversified
D) vertical complementary
Q3) Describe the organizational structures used to implement the three international strategies.
Q4) A centralized structure does not provide information from local stores that would be useful in changing its technology quickly. This example illustrates the effect of structure on strategy.
A)True
B)False
Q5) Describe the organizational structure associated with a firm that pursues an unrelated diversification strategy.
Q6) Discuss the difference between strategic controls and financial controls.
Page 13
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Chapter 12: Strategic Leadership
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118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/3861
Sample Questions
Q1) A CEO's breadth of knowledge base is constrained by:
A) his or her relationship with the Board of Directors.
B) whether he or she is also the chairperson of the Board of Directors.
C) his or her long tenure with the firm.
D) the level of social capital in the firm.
Q2) A characteristic of the manager that may affect managerial discretion is his/her:
A) amount of industry experience.
B) level of education.
C) tolerance for ambiguity.
D) length of tenure.
Q3) Members with substantive expertise in the firm's core functions and businesses aid the effectiveness of the top management team.
A)True
B)False
Q4) Employees usually have a strong preference for firms to use the internal managerial labor market when selecting top management team members and the CEO.
A)True
B)False
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Page 14
Chapter 13: Strategic Entrepreneurship
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/3862
Sample Questions
Q1) The main risk in a strategic alliance is that:
A) the alliance will not result in a successful innovation.
B) critical employees will be hired away by the strategic partner.
C) one partner will use the other partner's knowledge and use it to enhance its own competitive abilities.
D) the partners will lose control over their internal processes.
Q2) To be successful, an autonomous process for developing new products relies on:
A) the diffusion of tacit knowledge.
B) the acquisition of innovative firms.
C) strategic alliances with other firms.
D) internal corporate venturing.
Q3) Acquisitions are a means of extending the company's product line and increasing revenues. The capital market values growth. Therefore, some firms make acquisitions to improve their standing in the capital markets.
A)True
B)False
Q4) Describe the three strategic approaches used to produce and manage innovation: internal corporate venturing, cooperative strategies, and acquisitions.
Q5) What is the importance of international entrepreneurship?
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