Corporate Strategy
Test
Preparation
Course Introduction
Corporate Strategy delves into the fundamental concepts and analytical frameworks necessary for understanding how organizations create and sustain competitive advantage at the corporate level. The course explores strategic decision-making processes involving diversification, mergers and acquisitions, vertical integration, and international expansion. Emphasis is placed on aligning business portfolios, managing resources across multiple business units, and addressing the complexities of global competition. Through case studies and real-world examples, students learn how senior management develops and implements strategies that shape the long-term direction and success of complex organizations.
Recommended Textbook
Strategic Management Concepts and Cases 1st Edition by Frank Rothaermel
Available Study Resources on Quizplus
12 Chapters
1235 Verified Questions
1235 Flashcards
Source URL: https://quizplus.com/study-set/2540
Page 2
Chapter 1: What Is Strategy and Why Is It Important
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/50499
Sample Questions
Q1) What is strategic positioning?
Answer: Staking out a unique position in an industry that allows the firm to provide value to customers while at the same time controlling costs.
Explanation: This is the definition of strategic positioning.
Q2) Web 2.0 relies on the idea that the value of a product or service increases as more people use it.This concept is called what?
A) Network consolidation
B) Network effects
C) Internet strategy
D) Accelerated technological change
Answer: B
Q3) Co-opetition seems to be on the increase.Which of the following would be a good definition of co-opetition?
A) Competitors cooperating with one another to achieve strategic objectives
B) Suppliers working with their customers to improve product quality
C) Firms from different industries forming strategic alliances for a common goal
D) Customers offering their services voluntarily on the Internet
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: The Strategic Management Process
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/50498
Sample Questions
Q1) Real options is a business decision and is seen as _______________.
A) a right and an obligation
B) a right and not an obligation
C) risky and mandatory
D) a requirement for doing business
Answer: B
Q2) Any unplanned strategic initiative undertaken by mid-level employees of their own volition is a(n)________________.
A) dominant strategic plan
B) developing strategy
C) emergent strategy
D) strategic initiative
Answer: C
Q3) When managers envision different what-if scenarios to anticipate possible futures,the approach that is used is called:
A) Strategic planning
B) Strategy as planned emergence
C) Strategy implantation
D) Scenario planning
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: External Analysis: Industry Structure,
Competitive Forces, and Strategic Groups
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/50497
Sample Questions
Q1) A process whereby formerly unrelated industries begin to satisfy the same customer need is often brought on by technological advances.What is this process called?
A) Strategic grouping
B) Competitive advantage
C) Industry convergence
D) Complementor analysis
Answer: C
Q2) Which of the following would NOT explain why managers track interest rates?
A) High interest rates make the cost of capital cheaper for a firm.
B) High interest rates could delay a firm's expansion.
C) Low interest rates make it easier for a firm to borrow money.
D) Low interest rates increase market demand and economic growth.
Answer: A
Q3) What is BYD using to avoid entry barriers upon entering the automotive industry?
A) They purchased a major automotive company.
B) They reduced the switching costs of moving to electric vehicles.
C) They used proprietary battery technology for use in electric vehicles.
D) They have an established brand in China.
Answer: C
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Internal Analysis: Resources, Capabilities, and Activities
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/50496
Sample Questions
Q1) Google's fixed assets,including its headquarters ("The Googleplex")and server farms are valued at $5 billion while the Google brand is valued at over $100 billion.Apple's physical attributes are valued at $2 billion while its brand is valued at over $63 billion.What can be derived from this?
A) Physical attributes are not effective resources in the quest for competitive advantage.
B) Intangible assets, while invisible, contribute more to competitive advantage than do tangible assets.
C) There is a high degree of resource mobility in this strategic group.
D) Google will have a sustained competitive advantage over Apple.
Q2) Which of the following activities would be considered a primary activity in a firm's value chain?
A) Research and development
B) Human resources
C) Finance
D) Production
Q3) What is the purpose of using the VRIO framework?
Q4) Define core competency.
Q5) What is the difference between a tangible resource and an intangible resource?
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Competitive Advantage and Firm Performance
Available Study Resources on Quizplus for this Chatper
107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/50495
Sample Questions
Q1) "Stakeholders" under the stakeholder theory are:
A) Only concerned with return on risk.
B) Governmental bodies who oversee industry regulations.
C) Interested in maximizing profit.
D) Anyone who makes contributions to a firm and expects inducement in return.
Q2) Suppose that a firm wanted to find profitability information about its rivals.The most likely source of this information would be:
A) Publicly available information including 10-K reports.
B) Employees who work for the competition.
C) Customers who are loyal to the competition.
D) Stakeholders of the competition.
Q3) From an accounting profitability perspective,competitive advantage is achieved by the firm that does which of the following?
A) Projects the highest book value for the upcoming year.
B) Delivers the most positive profitability metrics.
C) Has the highest value of intangible assets.
D) Has the highest value of off-balance sheet items.
Q4) When measuring competitive advantage and firm strategy,it is important to use both qualitative and quantitative frameworks.Briefly explain why.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Business Strategy: Differentiation, Cost
Leadership, and Integration
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/50494
Sample Questions
Q1) Cost drivers that are out of managerial control include the cost of input factors,economies of scale,and experience-curve effects.
A)True
B)False
Q2) A firm's structure,culture,and routines are very important when pursuing an integration strategy because organizations have to control costs and allow for creativity that can lead to differentiation.Therefore,managers should try to build an organization that is _________.
A) Hierarchical
B) Bureaucratic
C) Ambidextrous
D) Dynamic
Q3) When pursuing a differentiation strategy,a firm must remember that:
A) Buyers will be willing to pay for value that is not perceived.
B) Buyers will be reluctant to pay for value that is not perceived.
C) Perceived value is not as important as the price of the product.
D) Perceived value is more important in a broad market than in a narrow one.
Q4) How does an experience curve help a business gain competitive advantage?
Q5) Name and give an example for TWO of the four value drivers noted in the text.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Business Strategy: Innovation and Strategic
Entrepreneurship
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/50493
Sample Questions
Q1) When the Japanese company Canon was able to redesign the copier and take market share away from Xerox,it was using which type of innovation?
A) Architectural
B) Groundbreaking
C) Radical
D) Intentional
Q2) When management modifies strategic objectives based on which stage an industry is in they are responding to a(n):
A) Industry life cycle.
B) Growth life cycle.
C) Economic life cycle.
D) Entrepreneurial life cycle.
Q3) The disruptive force of the Internet provides opportunities due to the ____________ phenomenon,which allows for customer and product niches to come together online.
A) Proportion tail
B) Long tail
C) Incremental market
D) Bottom-up
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Corporate Strategy: Vertical Integration and Diversification
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/50492
Sample Questions
Q1) Under the Transaction Cost Economics framework,when it would cost the firm more to pursue an activity in-house than obtaining that activity in the external market,the firm should:
A) Consider horizontally integrating instead.
B) Perform the activity in-house anyway in order to gain core competencies.
C) Consider options such as short-term contracts or strategic alliances.
D) Divest that particular business.
Q2) Managers wishing to diversify the firm must remember that:
A) A single-business diversification strategy generally works best.
B) Forward integration is more successful than is backward integration.
C) Successful diversification must be aligned with and strengthen a firm's business strategy.
D) It is competitively advantageous to shrink the size and scope of most firms.
Q3) Franchising such as McDonald's and H&R Block is a form of which type of strategic alliance? Where is it on the continuum of less integrated or more integrated?
Q4) What is the difference between taper integration and strategic outsourcing?
Q5) There are three dimensions for corporate-level strategy.List one of the three and give an example of a corporate strategy change using this dimension.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Corporate Strategy: Acquisitions, Alliances, and Networks
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/50491
Sample Questions
Q1) The most common type of alliance is a(n)______,which is based on contracts between firms.
A) Non-equity alliance
B) Equity alliance
C) Joint venture
D) Merger
Q2) Partner commitment concerns the willingness to make available necessary resources and to accept _____ sacrifices to ensure _____ rewards.
A) Short-term; short-term
B) Short-term; long-term
C) Long-term; long-term
D) Long-term; short-term
Q3) Joint venture alliances are where ___________ knowledge is exchanged.
A) Explicit
B) Tacit
C) Implicit
D) Tacit and explicit
Q4) How does horizontal integration decrease competition? Please provide an example.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Q5) Define strategic alliance and give at least two reasons why firms enter alliances.
Chapter 10: Global Strategy: Competing Around the World
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/50490
Sample Questions
Q1) According to Strategy Highlight 10.1,when all important business functions are located in the home country and only sales and distribution take place overseas,what stage of globalization is this?
A) Globalization 1.0
B) Globalization 2.0
C) Globalization 3.0
D) Globalization 4.0
Q2) The movie Slumdog Millionaire's budget was $14 million dollars,which is low compared to other Hollywood blockbusters.What was the movie's international focus?
A) Local responsiveness
B) Low cost factors
C) Reduced proximity
D) Crowdsourcing
Q3) Globalization 1.0 in Strategy Highlight 10.1 is similar to which one of the following strategies?
A) International strategy
B) Global standardization strategy
C) Transnational strategy
D) Localization strategy
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Organizational Design: Structure, Culture, and Control
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/50489
Sample Questions
Q1) Specialization increases productivity without any side effects.
A)True
B)False
Q2) Which of the following statements is TRUE?
A) Organizational culture cannot change because it represents the company's core values.
B) Organizational culture can become a liability if it is not comprehended thoroughly by employees.
C) Organizational culture is a set of codified rules that guide employees' behavior.
D) Organizational culture usually comes from other organizations.
Q3) Which of the following is TRUE?
A) Organizations tend to change their structure too frequently, which erodes their competitive advantage.
B) Large organizations can retain a simple structure as long as they have a differentiation strategy.
C) Flexibility in structure is more important than stability.
D) Strategy has a more important influence on structure than structure has on strategy.
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Corporate Governance, Business Ethics, and Strategic Leadership
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/50488
Sample Questions
Q1) Two common features of the recent financial crisis are that management actions (1)affect the economic well-being of the globe and (2)_____________.
A) Failure to implement strategy is unwise
B) Organizational design is necessary
C) Green technology is the future
D) Must consider a variety of stakeholders
Q2) What is agency theory?
Q3) Regarding the empirical evidence connecting corporate social responsibility and firm performance,the text notes there have been a variety of studies performed to look at this question.Which ONE of the following most accurately describes what has been found?
A) CSR has been shown to strongly cause improved firm performance.
B) There is a positive relationship but the causality is murky.
C) Strong firm performance has been shown to strongly cause improved CSR by the firm.
D) Prior research has not shown a connection between CSR and firm performance.
Q4) In what ways is corporate governance related to strategy formulation and implementation?
Q5) What are the possible disadvantages of having outside directors?
Page 14
To view all questions and flashcards with answers, click on the resource link above.