Corporate Strategy
Test Bank
Course Introduction
Corporate Strategy explores the frameworks, tools, and decisions that guide organizations in achieving long-term success and competitive advantage at the highest level. The course examines strategic analysis, industry and competitor assessment, diversification, mergers and acquisitions, corporate governance, resource allocation, and the complexities of managing a multi-business firm. Students learn to evaluate and formulate effective corporate strategies in response to dynamic business environments, ensuring value creation and sustainable growth. Through case studies and real-world examples, the course emphasizes the practical application of theory to strategic challenges faced by modern corporations.
Recommended Textbook
Strategic Management Concepts and Cases 13th Edition by Fred R. David
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11 Chapters
1340 Verified Questions
1340 Flashcards
Source URL: https://quizplus.com/study-set/797
Page 2
Chapter 1: The Nature of Strategic Management
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132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/15809
Sample Questions
Q1) Give at least seven reasons why some firms do no strategic planning.
Answer: Some reasons for poor or no strategic planning are as follows: lack of knowledge or experience in strategic planning,poor reward structures,firefighting,waste of time,too expensive,laziness,content with success,fear of failure,overconfidence,prior bad experience,self-interest,fear of the unknown,honest difference of opinion,and suspicion.
Q2) Which of the following is not included in the strategic management model?
A) Measure and evaluate performance
B) Perform internal research to identify customers
C) Establish long-term objectives
D) Implement strategies
E) Develop mission and vision statements
Answer: B
Q3) The strategic-management process is becoming more widely used by
A) small firms.
B) nonprofit institutions.
C) governmental organizations.
D) multinational conglomerates.
E) all of the above
Answer: E
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Page 3
Chapter 2: The Business Vision and Mission
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113 Verified Questions
113 Flashcards
Source URL: https://quizplus.com/quiz/15812
Sample Questions
Q1) The process of developing a vision and mission statement often includes which of these as the first activity?
A) Requesting that managers modify the current document
B) Asking managers to read selected articles about mission statements
C) Asking managers to prepare a mission statement for the organization
D) Having a brainstorming session on whether the organization should have a mission statement
E) Merging several mission statements into one document
Answer: B
Q2) List and define the major components of an effective mission statement. Answer: Students should list and define the following components of an effective mission statement:
1)customers
2)products or services
3)markets
4)technology
5)concern for survival,growth and profitability
6)philosophy
7)self-concept
8)concern for public image and 9)concern for employees.
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Chapter 3: The External Assessment
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128 Verified Questions
128 Flashcards
Source URL: https://quizplus.com/quiz/15813
Sample Questions
Q1) If suppliers are unreliable or too costly,which of these strategies may be appropriate?
A) Horizontal integration
B) Backward integration
C) Market penetration
D) Forward integration
E) Concentric diversification
Answer: B
Q2) Freund emphasizes that key external factors should be all of these except:
A) important to achieving long-term and annual objectives.
B) measurable.
C) relatively few in number.
D) applicable to all competing firms.
E) hierarchical in the sense that some will pertain to the overall company while others will be more narrowly focused.
Answer: C
Q3) Major competitors' strengths may represent key threats.
A)True
B)False
Answer: True
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Page 5
Chapter 4: The Internal Assessment
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130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/15814
Sample Questions
Q1) ________ is a commonly used approach to determine R&D budget allocations.
A) Financing as many project proposals as possible
B) Using the percentage of sales method
C) Budgeting for R&D about what competitors spend
D) Deciding how many successful new products are needed
E) All of the above
Q2) All of the following are key questions that can reveal internal strengths and weaknesses in the management department except:
A) Is the organization's structure appropriate?
B) Are reward and control mechanisms effective?
C) Are the organization's products positioned well among competing products?
D) Does the firm use strategic management concepts?
E) Do managers delegate authority well?
Q3) ________ can reveal the demographic characteristics of an organization's customers.
A) Customer profiling
B) Test marketing
C) Market development
D) The vision statement
E) Telemarketing
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Chapter 5: Strategies in Action
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/15815
Sample Questions
Q1) Product development is an appropriate strategy when an organization has successful products that are in the maturity stage of the product life cycle.
A)True B)False
Q2) Discuss four common problems that cause joint ventures to fail.
Q3) Market development includes introducing present products into new geographic areas.
A)True
B)False
Q4) Forward integration strategy is especially effective when the availability of quality distributors is so limited as to offer a competitive advantage to those firms that integrate forward.
A)True
B)False
Q5) Product development is a strategy that seeks increased sales by improving or modifying present products or services.
A)True B)False
Q6) Name at least six reasons for performing mergers or acquisitions.
Page 7
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Chapter 6: Strategy Analysis and Choice
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113 Verified Questions
113 Flashcards
Source URL: https://quizplus.com/quiz/15816
Sample Questions
Q1) The first stage of the strategy-formulation framework is the input stage,and it is directly followed by the decision stage.
A)True
B)False
Q2) What term is defined as the product of multiplying the weights by the Attractiveness Scores in each row of the QSPM?
A) Total Attractiveness Scores
B) Sum Total Attractiveness Scores
C) Weighted Scores
D) Total Weighted Scores
E) Factors
Q3) Total attractiveness scores are defined as the sum of the attractiveness scores in a given column of the QSPM and are computed in the second step of the QSPM.
A)True
B)False
Q4) The midpoint on the x-axis of a BCG Matrix is typically set at 0.05.
A)True
B)False
Q5) Compare and contrast the IE Matrix with the BCG Matrix.
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Chapter 7: Implementing Strategies: Management and Operations Issues
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122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/15817
Sample Questions
Q1) Approximately how many people in the United States are now part of two-career families?
A) 2 million
B) 8 million
C) 21 million
D) 60 million
E) 85 million
Q2) Annual objectives are key components in the strategic-management process because they dictate how resources will be allocated.
A)True
B)False
Q3) Because activities are organized according to the way work is actually performed,a divisional structure by process is similar to the matrix structure.
A)True
B)False
Q4) What are the advantages and disadvantages of a divisional organizational structure?
Q5) Discuss how work life/home life balance is being addressed by organizations.
Q6) Compare and contrast restructuring and reengineering.
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Chapter 8: Implementing Strategies: Marketing, Finance/Accounting,
R&D, and MIS
Issues
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114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/15818
Sample Questions
Q1) Return on assets is the most widely used technique for determining whether debt,stock,or a combination of debt and stock is the best alternative for raising capital to implement strategies.
A)True
B)False
Q2) Which item is not included in net worth?
A) Fixed assets
B) Common stock
C) Additional paid-in-capital
D) Retained earnings
E) All of these are included in net worth.
Q3) The cash account is used as the plug figure in projected balance sheets.
A)True
B)False
Q4) In the context of a balance sheet,goodwill represents
A) a premium paid over the book value of an acquisition.
B) the value attached to a firm's reputation.
C) the excess of assets over liabilities.
D) the value associated with benefits from environmental programs.
E) the excess of current assets over liabilities.
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Chapter 9: Strategy Review, Evaluation, and Control
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117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/15819
Sample Questions
Q1) Corrective actions are almost always _______ except when external and internal factors have not significantly changed and the firm is progressing satisfactorily toward achieving stated objectives.
A) unnecessary
B) needed
C) undesirable
D) prohibitively expensive
E) futile
Q2) Competitive advantage normally is the result of superiority in resources,skills and A) employees.
B) position.
C) consistency.
D) feasibility.
E) governance.
Q3) The accounting switch from GAAP to IFRS in the U.S.is going to cost businesses millions of dollars in fees and upgraded software systems and training.
A)True
B)False
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Chapter 10: Business Ethics/Social Responsibility/Environmental Sustainability
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120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/15810
Sample Questions
Q1) Some strategists agree with Ralph Nader,who asserts that organizations have no obligation to do any more for society than is legally required.
A)True
B)False
Q2) General Electric plans to achieve $20 billion in sales by 2011 in eco-friendly technologies including all of the following except:
A) agricultural silicon that cuts the amount of water used in spraying fields.
B) software that provides centralized control over power consumption.
C) cleaner coal-fired power plants.
D) a diesel-and-electric hybrid locomotive.
E) agricultural silicon that cuts the amount of pesticide used in spraying fields.
Q3) Adhering to the highest ethical standards has caused the Walt Disney company to struggle during the recent weak economy.
A)True
B)False
Q4) California is the nation's second-largest producer of solar energy.
A)True
B)False
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Chapter 11: Global/International Issues
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120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/15811
Sample Questions
Q1) One of the dangers of remaining a local competitor is that more aggressive companies will use their global growth to capture economies of scale and learning.
A)True
B)False
Q2) Foreign banks currently operate and compete in most parts of the United States.
A)True
B)False
Q3) While multinational corporations face almost limitless social,cultural,demographic,environmental,political,governmental,legal,technological,an d competitive opportunities and threats,the number and complexity of these factors do not dramatically increase with the number of products produced and the number of geographic areas served.
A)True
B)False
Q4) In socialist countries such as France,Belgium,and the United Kingdom,the only grounds for immediate dismissal from work is a criminal offense.
A)True
B)False
Q5) List some of the diverse and unique risks that face multinational corporations.
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