Corporate Strategy
Question Bank
Course Introduction
Corporate Strategy explores the frameworks, tools, and concepts essential for formulating and implementing strategies at the highest level of a corporation. The course examines how multi-business organizations create value through strategic decisions regarding diversification, vertical integration, acquisitions, alliances, and global expansion. Students learn to evaluate dynamic industry environments, analyze competitive advantage, and determine how organizational structure and governance influence corporate success. Emphasis is placed on real-world case studies and practical approaches to strategic planning, enabling students to develop sound strategies for sustainable growth and long-term profitability.
Recommended Textbook
Strategic Management and Business Policy 13th Edition by Thomas L. Wheelen
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12 Chapters
1260 Verified Questions
1260 Flashcards
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Page 2
Chapter 1: Basic Concepts in Strategic Management
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) All of the following reflect categories of organizational risk as a result of climate change EXCEPT
A)regulatory risk.
B)supply chain risk.
C)sustainability risk.
D)reputational risk.
E)litigation risk.
Answer: C
Q2) A program is
A)a detailed cost statement in terms of dollars.
B)A system of sequential steps.
C)A statement of the activities needed to accomplish a single-use plan.
D)The process by which strategies and policies are put into action.
E)none of the above
Answer: C
Q3) A strategic decision is rare, consequential, and directive.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Corporate Governance
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Sample Questions
Q1) The theory which states that problems arise in corporations because top management no longer is willing to bear the brunt of their decisions unless they own a substantial amount of stock in the corporation is called
A)codetermination.
B)agency theory.
C)interlocking management theory.
D)strategic leadership theory.
E)ownership theory.
Answer: B
Q2) From the perspective of the public, the primary job of the board of directors is
A)to lend credence to the decisions of the executive committee.
B)dictated solely by legal requirements.
C)to act as representatives for public identification.
D)to closely monitor the actions of management.
E)insulated from legal judgments because management actually makes the decisions.
Answer: D
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4
Chapter 3: Ethics and Social Responsibility in Strategic Management
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97 Flashcards
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Sample Questions
Q1) Explain the difference between Milton Friedman's and Archie Carroll's approaches to the responsibilities of business.
Answer: Both Milton Friedman and Archie Carroll argue their positions based on the impact of socially responsible actions on a firm's profits.Friedman says that socially responsible actions hurt a firm's efficiency.Carroll proposes that a lack of social responsibility results in increased government regulations, which reduce a firm's efficiency.Friedman argues that profit maximization is the firm's primary responsibility.Carroll argues that firms have economic, legal, ethical, and discretionary responsibilities.
Q2) The justice approach to ethics proposes that actions and plans should be judged by their consequences.
A)True
B)False
Answer: False
Q3) Relationship-based countries tend to be more transparent and have a lower degree of corruption than do rule-based countries.
A)True
B)False
Answer: False
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Chapter 4: Environmental Scanning and Industry Analysis
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116 Flashcards
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Sample Questions
Q1) According to Michael Porter, a high force can be regarded as threat because it is likely to reduce profits.
A)True
B)False
Q2) The combination of the degree of complexity and the degree of change existing in an organization's external environment is/are called
A)strategic factors.
B)strategic issues.
C)environmental uncertainty.
D)strategic fit.
E)scenarios.
Q3) A forecasting technique using quantitative measures that attempt to discover causal or at least explanatory factors that link two or more time series together is called A)the delphi technique.
B)statistical modeling.
C)trend extrapolation.
D)trend-impact analysis.
E)morphological analysis.
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6
Chapter 5: Internal Scanning and Organizational Analysis
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Sample Questions
Q1) A good rule of thumb for R & D spending is that a corporation should spend at a "normal" rate for that particular industry unless its strategic plan calls for unusual expenditures.
A)True
B)False
Q2) The proposition that silicon chips double in complexity every 18 months is referred to as
A)Ohm's Law.
B)Porter's Five Forces Model.
C)Moore's Law.
D)Mintzberg's Rule.
E)Keynesian's Theory.
Q3) The marketing mix refers to the particular combination of key variables under the corporation's control that can be used to affect demand and to gain competitive advantage.
A)True
B)False
Q4) What is R & D intensity?
Q5) Describe Barney's VRIO framework.
Q6) Discuss the three basic organizational structures.
Page 7
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Chapter 6: Strategy Formulation: Situation Analysis and Business Strategy
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104 Verified Questions
104 Flashcards
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Sample Questions
Q1) A corporation's specific competitive role which is so well-suited to the firm's internal and external environment that other corporations are NOT likely to challenge or dislodge it.
A)propitious niche.
B)strategic fit
C)common thread
D)business screen
E)implicit strategy
Q2) According to the text, unique market opportunities that are available for only a particular time are called
A)situational occasions.
B)critical openings.
C)strategy implementation.
D)strategic windows.
E)trigger points.
Q3) The first company to manufacture and sell a new product or service is called the ground breaker.
A)True
B)False
Q4) What are cooperative strategies?
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Chapter 7: Strategy Formulation: Corporate Strategy
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103 Flashcards
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Sample Questions
Q1) Describe the four categories of the BCG Growth Share Matrix.
Q2) Products that typically bring in far more money than is needed for maintenance of their market share are called
A)cash cows.
B)lost leaders.
C)dogs.
D)question marks.
E)stars.
Q3) Management contracts are common when a host government expropriates part or all of a foreign-owned company's holdings in its country.
A)True
B)False
Q4) The GE Business Screen is based on long-term industry attractiveness and business strength/competitive position.
A)True B)False
Q5) Corporate parenting is the coordination of cash flow among units. A)True B)False
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Chapter 8: Strategy Formulation: Functional Strategy and Strategic Choice
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105 Flashcards
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Sample Questions
Q1) Equity financing is preferred for related diversification while debt financing is preferred for unrelated diversification.
A)True
B)False
Q2) Purchasing a product or service from an outside contractor that had been previously provided internally is called
A)vertical integration.
B)horizontal integration.
C)transaction costing.
D)outsourcing.
E)geographic integration.
Q3) Once the best strategic alternative is selected, the broad guidelines for its implementation are then defined by A)trade-offs.
B)policies.
C)procedures.
D)resource allocation.
E)strategic options.
Q4) What is a corporate scenario? What are the three steps in their construction?
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Chapter 9: Strategy Implementation: Organizing for Action
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Sample Questions
Q1) As industries move from being multidomestic to move globally integrated, multinational corporations are increasingly switching from the geographic-area to the product-group structure.
A)True
B)False
Q2) In a matrix structure, functional and product forms are combined simultaneously at the same level of the organization.
A)True
B)False
Q3) According to the job characteristics model, how might a manager redesign work to increase task variety and enable workers to identify with what they are doing?
A)combine tasks
B)form natural work units
C)establish client relationships
D)vertically load
E)open feedback channels
Q4) The second stage of the organizational life cycle is maturity.
A)True
B)False
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Chapter 10: Strategy Implementation: Staffing and Directing
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Sample Questions
Q1) According to the text, assessment centers have been able to accurately predict subsequent
A)job satisfaction.
B)job performance and career success.
C)organizational commitment.
D)organizational attachment.
E)job management skills.
Q2) Successful prospector firms tend to be headed by CEOs with backgrounds in the areas of
A)research/engineering and general management.
B)accounting/finance, manufacturing/production, and general management.
C)marketing/sales.
D)human resources and strategy.
E)purchasing and logistics.
Q3) IHOPs CEO, Julia Stewart, built a reputation as a turnaround specialist.
A)True
B)False
Q4) TQM links organizational objectives and the behavior of individuals.
A)True
B)False
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Chapter 11: Evaluation and Control
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Sample Questions
Q1) A multidivisional corporation like GE would tend to use what type of responsibility center?
A)investment center
B)expense center
C)profit center
D)standard cost center
E)revenue center
Q2) Which of the following is NOT one of the steps followed in the benchmarking process?
A)Develop tactical programs for closing performance gaps.
B)Implement tactical programs, measure the results, and compare the results with those of the best-in-class company.
C)Link parallel activities instead of integrating their results.
D)Identify the area or process to be examined.
E)Calculate the differences among the company's performance measurements and those of the best-in-class company.
Q3) Distinguish between behavior and output controls.Provide examples of each.
Q4) What is the balanced scorecard? What are the four areas to be addressed?
Q5) List the five step feedback model of the evaluation and control process.
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Chapter 12: Suggestions for Case Analysis
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Sample Questions
Q1) Which financial ratio shows the after-tax earnings generated for each share of common stock?
A)return on investment
B)return on equity
C)earnings per share
D)gross profit margin
E)net profit margin
Q2) Which financial indicator measures the number of one day's worth of inventory that a company has on hand at any given time?
A)days of cash
B)days of inventory
C)average collection period
D)fixed asset turnover
E)inventory turnover
Q3) One of the most important categories of financial ratios are the liquidity ratios.
A)True
B)False
Q4) List Schilit's short checklist of items to examine for red flags.
Q5) What are constant dollars and why are they important?
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