Corporate Strategy
Pre-Test Questions
Course Introduction
Corporate Strategy explores the frameworks and tools used by organizations to define their overall direction, allocate resources, and achieve long-term objectives in a competitive environment. The course examines key concepts such as diversification, vertical integration, mergers and acquisitions, strategic alliances, and global expansion. Emphasis is placed on analyzing how firms create value across multiple businesses, respond to industry changes, and leverage core competencies. Students will engage with real-world case studies, enabling them to critically assess corporate-level decisions and develop strategic recommendations for complex business challenges.
Recommended Textbook
Strategic Management Creating Competitive Advantages 7th Edition by Gregory Dess
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12 Chapters
1171 Verified Questions
1171 Flashcards
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Chapter 1: Strategic Management: Creating Competitiveadvantages
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/57145
Sample Questions
Q1) According to the text,the strategic management process entails three ongoing processes:
A) analyses, actions, and synthesis
B) analyses, decisions, and actions
C) analyses, evaluation, and critique
D) analyses, synthesis, and antithesis
Answer: B
Q2) The three interrelated and principal activities of strategic management are: strategy analysis,strategy formulation,and strategy implementation.
A)True
B)False
Answer: True
Q3) According to Henry Mintzberg,decisions following from the strategic analysis of the firm are its:
A) emergent strategy
B) deliberate strategy
C) intended strategy
D) realized strategy
Answer: C
Page 3
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Chapter 2: Analyzing the External Environment Ofthe Firm:
Creating Competitive Advantages
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99 Verified Questions
99 Flashcards
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Sample Questions
Q1) In the Five-Forces model,conditions under which a supplier group can be powerful include all the following EXCEPT:
A) lack of importance of the buyer to the supplier group
B) high differentiation by the supplier
C) dominance by a few suppliers
D) readily available substitute products
Answer: D
Q2) Taking advantage of the increasing penetration of personal computers in American homes,the Mayo Clinic transformed itself as a provider of health-related knowledge and expertise.It took advantage of the ______ trends of the _______ in the prices of PCs and the ____________ presence of PCs in virtually every home in the U.S.
A) soft; increase; increasing
B) soft; decrease; decreasing
C) hard; decrease; decreasing
D) hard; decrease; increasing
Answer: D
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Chapter 3: Assessing the Internal Environmentof the Firm
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97 Verified Questions
97 Flashcards
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Sample Questions
Q1) Employee exit cost is a factor that can increase employee bargaining power and help him or her appropriate profits of the firm.
A)True
B)False
Answer: False
Q2) Employees will be able to obtain a proportionately high level of profits they generate (relative to the firm)if ___________.
A) suppliers are loyal to the firm
B) their expertise is firm-specific
C) the cost to the firm of replacing them is high
D) the firm's resources are path dependent
Answer: C
Q3) Establishing a customer service hotline to handle customer complaints would be considered a primary activity in value-chain analysis.
A)True
B)False
Answer: True
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Chapter 4: Recognizing a Firms Intellectual Assets: Moving
Beyond a Firms Tangibleresources
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90 Verified Questions
90 Flashcards
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Sample Questions
Q1) In most effective evaluation and reward systems employees only receive evaluation and feedback from their immediate supervisor.
A)True
B)False
Q2) In social network analysis,groups can become too insular and fail to share what they have learned with people outside the group.This is a result of __________.
A) bridging relationships
B) intellect
C) closure
D) diverse knowledge
Q3) According to the text,intellectual capital is the difference between the market value and the book value of a firm.Intellectual capital can be increased by ________________.
A) increasing retention of below average workers
B) decreasing labor costs
C) attracting and retaining knowledgeable workers
D) increasing the turnover of employees
Q4) Address some of the potential limitations (or downsides)of social capital.
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Q5) Address some of the challenges associated with protecting intellectual property.
Chapter 5: Business-Level Strategy: Creating
Andsustaining Competitive Advantages
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) The growth stage of the industry life cycle is characterized by A) in-kind competition (from the same type of product)
B) premium pricing
C) a growing trend to compete on the basis of price
D) retaliation by competitors whose customers are stolen
Q2) In a given market,key technology no longer has patent protection,experience is not an advantage,and there is a growing need to compete on price.What stage of its life cycle is the market in?
A) introduction
B) growth
C) maturity
D) decline
Q3) The size of pricing and differentiation advantages between competitors decreases in which stage of the market life cycle?
A) introduction
B) growth
C) maturity
D) decline
Q4) Discuss some of the effective turnaround strategies.
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Chapter 6: Corporate-Level Strategy: Creatingvalue Through Diversification
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102 Verified Questions
102 Flashcards
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Sample Questions
Q1) Economies of scope are cost savings from leveraging core competencies or sharing unrelated activities among businesses in a corporation.
A)True
B)False
Q2) Summarize the advantages and disadvantages of mergers and acquisitions as a means of diversification.
Q3) At Cooper Industries,there are few similarities in the products it makes or the industries in which it completes.The corporate office adds value through such activities as superb human resource practices and budgeting systems.This is an example of
A) using related diversification to achieve value by leveraging core competencies to attain economies of scope
B) using related diversification to achieve value by leveraging core competencies to acquire market power
C) using unrelated diversification to achieve value through portfolio management in order to acquire financial synergies
D) using unrelated diversification to achieve value through restructuring and parenting
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Page 8
Chapter 7: International Strategy: Creating Valuein Global Markets
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101 Verified Questions
101 Flashcards
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Sample Questions
Q1) PepsiCo leads Coca-Cola in the Indian market.Why?
A) PepsiCo entered the market before Coca-Cola.
B) PepsiCo formed a joint venture with two Indian companies to introduce its products under their label.
C) Coca-Cola promoted too many products.
D) Coca-Cola created too much direct employment in the beginning of its operation.
Q2) When U.S.currency appreciates against other currencies,U.S.goods can be less expensive to consumers in foreign countries.
A)True
B)False
Q3) High levels of environmental awareness in Denmark have led to a decline in Danish industrial competitiveness in the international marketplace.
A)True
B)False
Q4) Expanding the global presence of a firm does not automatically increase its scale of operations.
A)True
B)False
Page 9
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Chapter 8: Entrepreneurial Strategy and Competitive Dynamics
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) What is the role of opportunity recognition in the new venture development process?
Q2) Pandora entered the radio business in 2000 using the Music Genome Project system that analyzes music for its underlying traits as a means to distinguish itself.It was using ______________ entry strategy.
A) a pioneering
B) an imitative
C) an adaptive
D) a creative
Q3) Discuss the four characteristics of an entrepreneurial opportunity.Explain why each is important for the opportunity to be viable.
Q4) One of the ways entrepreneurs achieve success is by using resources more efficiently.This is an example of how entrepreneurs use ______________ strategy. A) an imitative
B) a low-cost leader
C) a differentiation
D) a combination
Q5) Compare and contrast market commonality and resource similarity.
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Chapter 9: Strategic Control and Corporategovernance
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Conditions that must be met for principal-principal (PP)conflicts to occur include all of the following except _____________.
A) a dominant owner or group of owners who have interests that are distinct from minority shareholders
B) legislation that protects the interests of minority shareholders
C) a motivation for the controlling shareholders to exercise their dominant position to their advantage
D) few formal (such as legislation or regulatory bodies) or informal constraints that discourage or prevent the controlling shareholders from exploiting their advantageous positions
Q2) According to the Business Roundtable,representing the largest U.S.corporations,the most important quality of a good board of directors is that they do not get involved in critiquing company strategies.
A)True
B)False
Q3) Why is it important to have a balance among the three behavioral controls (culture,rewards,and boundaries)? Is there a danger associated with emphasizing one behavioral approach more than another?
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Chapter 10: Creating Effective Organizational Designs
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100 Flashcards
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Sample Questions
Q1) Effective ambidextrous organizations maintain adaptability,which means that
A) managers are focused on growth opportunities
B) there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated
C) divisional-goals are consistent with overall corporate goals
D) managers must remain proactive in expanding and/or modifying their product-market scope to anticipate and satisfy market conditions
Q2) If an international firm has a multidomestic strategy and a relatively high level of product diversity,the best choice for its organizational structure is ______________ structure.
A) a worldwide functional
B) a worldwide product division
C) a worldwide matrix
D) an international division
Q3) According to the text,the factor that most distinguishes a superior team from a good team is talent.
A)True
B)False
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Page 12
Chapter 11: Strategic Leadership: Creating a Learning
Organization and an Ethical Organization
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) How does the ethical orientation of a leader affect the ability to promote ethical behavior in the organization?
Q2) An effective way to instill ethical behavior in an organization is to distribute rewards strictly on the basis of outcomes.
A)True
B)False
Q3) Setting a direction is the leadership activity that involves developing a strategic vision of what the organization could become.
A)True
B)False
Q4) Leaders play an important role in sustaining organization culture,but they are powerless to change it.
A)True
B)False
Q5) Organizational learning works best when an organization leader gathers information and teaches it to employees who are like their students.
A)True
B)False
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Chapter 12: Managing Innovation and Fosteringcorporate Entrepreneurship
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Incremental innovations _____________.
A) are usually highly disruptive
B) usually represent technological breakthroughs
C) are usually small improvements in products and processes
D) nearly always can be patented
Q2) In the 1990s,DuPont used its knowledge of plastics to develop biodegradable plastic products.This is an example of _____________.
A) focusing on process rather than product innovation
B) defining its innovation efforts within the context of its strategic envelope
C) radical innovation
D) public relations, since plastics are not biodegradable
Q3) Real options analysis is most appropriate when _____________.
A) the total investment required is small, but the environment is uncertain
B) the investment required can be justified by Discounted Cash Flow (DCF) techniques
C) a small investment up front can be followed by a series of subsequent investments
D) there is no prospect of obtaining additional knowledge before making subsequent investments
Q4) What are some of the pitfalls of real options analysis (ROA)?
Page 14
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