Corporate Strategy
Test Preparation
Course Introduction
Corporate Strategy explores the overarching plans and decisions made by top management to guide the long-term direction and scope of an organization. The course examines how companies create value and sustain competitive advantage across multiple businesses, industries, and markets. Topics include diversification, mergers and acquisitions, strategic alliances, corporate governance, resource allocation, and global strategy. Through case studies and analytical frameworks, students learn to assess corporate-level opportunities and challenges, and to formulate strategies that align resources and structures to dynamic external environments.
Recommended Textbook Essentials of Strategic Management 3rd Edition by Charles W. L. Hill
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9 Chapters
712 Verified Questions
712 Flashcards
Source URL: https://quizplus.com/study-set/1334
Page 2
Chapter 1: The Strategy-Making Process
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/26630
Sample Questions
Q1) Betsy Holden is the head of Kraft Foods, a division of the Philip Morris Company. Which of the following is not likely to be one of Ms. Holden's responsibilities?
A) Turning corporate-level strategy into action
B) Supervising functional-level managers
C) Deciding how to compete in the foods industry
D) Defining Philip Morris' mission
E) Developing a business-level strategy
Answer: B
Q2) The Internet has been around since the 1970s, but prior to the early 1990s, was a drab place, lacking the color, content, and richness of today's environment.
A)True
B)False
Answer: True
Q3) The more efficient a company is, the higher are its profitability and return on invested capital.
A)True
B)False
Answer: True
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3
Chapter 2: The Mission, Governance, and Business Ethics
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83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/26631
Sample Questions
Q1) A takeover constraint
A) uses the threat of a takeover to cause the CEO to fear the loss of his or her job.
B) prevents a company from being taken over.
C) limits the extent to which managers can pursue strategies that are inconsistent with shareholder interest.
D) is reduced by corporate raiders.
E) is greatest when a company's stock price is significantly higher than book value.
Answer: C
Q2) ___________________ are senior employees of the company, such as the CEO.
A) Stockholders
B) Outside directors
C) Inside directors
D) Business-level managers
E) None of the above
Answer: C
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Chapter 3: External Analysis: the Identification of Opportunities and Threats
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/26632
Sample Questions
Q1) Julian is asked to examine the demographic environment facing his employer, a clothing manufacturer. Which of the following should Julian examine?
A) Government regulations
B) Inflation
C) Manufacturing technology
D) Aging of the population
E) Society's growing interest in exercise
Answer: D
Q2) Many fragmented industries are characterized by low entry barriers and commodity-type products that are hard to differentiate.
A)True
B)False
Answer: True
Q3) A consolidated industry is dominated by a large number of small or medium sized companies which are in a position to determine industry prices.
A)True
B)False
Answer: False
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Chapter 4: Building Competitive Advantage
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/26633
Sample Questions
Q1) To add value, R&D can increase a product's functionality to make it more attractive to customers.
A)True
B)False
Q2) Which of the following is not an advantage of flexible manufacturing?
A) Customize product offering
B) Reduction in equipment setup times
C) Increased efficiency
D) Improved quality control
E) Easier project management
Q3) Which of the following is not one of the attributes that seem to be important in order for a product development team to function effectively?
A) A heavyweight project manager
B) A team leader that is able to act as an advocate of the team to senior management
C) The team should be composed of at least one member from each key function.
D) Team members should be co-located.
E) The organization should develop set policies and procedures that all development teams should follow.
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6
Chapter 5: Business-Level Strategy and Competitive Positioning
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78 Verified Questions
78 Flashcards
Source URL: https://quizplus.com/quiz/26634
Sample Questions
Q1) The process of defining a business should address the questions: "What is to be satisfied?," "Who is to be satisfied?," and "How will they be satisfied?"
A)True
B)False
Q2) When the size of the total market is shrinking, competition tends to intensify in a declining industry and profit rates tend to fall.
A)True
B)False
Q3) A fragmented industry is composed of a large number of small and medium-sized companies.
A)True
B)False
Q4) Which of the following types of businesses would not be considered a focused differentiator?
A) A store specializing in fly-fishing
B) A plus-size clothing store
C) A Belgian chocolate shop
D) A Mexican fast food restaurant chain
E) An aquarium store selling only salt water fish and equipment
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Chapter 6: Strategy in the Global Environment
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74 Verified Questions
74 Flashcards
Source URL: https://quizplus.com/quiz/26635
Sample Questions
Q1) A localization strategy is most appropriate when there are substantial differences across nations with regard to consumer tastes and preferences, and where cost pressures are not too intense.
A)True
B)False
Q2) Many of the issues that arise in the case of technological know-how do not arise in the case of management know-how.
A)True
B)False
Q3) Rivalry for any company is understood by examining what happens only within the boundaries of its home country.
A)True
B)False
Q4) Walmart opened its first stores in Mexico in 1993.
A)True
B)False
Q5) Identify and discuss the general ways in which companies can increase their profitability and profit growth through global expansion.
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Chapter 7: Corporate-Level Strategy and Long-Run Profitability
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80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/26636
Sample Questions
Q1) A diversified company is one that operates in two or more industries to find ways to increase it long-run profitability.
A)True
B)False
Q2) Vertical integration can be disadvantageous when A) industry technology is changing rapidly.
B) demand is stable.
C) competitors are vertically integrated.
D) technology is changing slowly.
E) competitors are vertically integrated and industry technology changes rapidly.
Q3) The performance of an acquired company can be improved by replacing the top management team of the acquired company with a more aggressive top management team.
A)True B)False
Q4) Economies of scope arise when two or more of a diversified company's business units are able to share resources.
A)True B)False
Page 9
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Chapter 8: Strategic Change: Implementing Strategies to
Build and Develop a Company
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76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/26637
Sample Questions
Q1) A hospital examines its processes closely and then changes them to become more patient-centered. Among the changes are new ways of doing tasks and new groupings of workers. This is an example of
A) restructuring.
B) reengineering.
C) TQM.
D) benchmarking.
E) downsizing.
Q2) Which of the following best illustrates a credible commitment from an alliance partner?
A) CEO agreement to work together
B) Developing mutually agreeable output controls
C) Exchanging lower-level employees
D) Taking a significant equity stake in the alliance partner
E) All of these equally illustrate credible commitments.
Q3) An advantage of project teams is that they can significantly reduce the time it takes to develop a new product.
A)True
B)False
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Chapter 9: Implementing Strategy Through Organizational Design
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81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/26638
Sample Questions
Q1) The virtue of shared values is that it
A) replaces the need for formal organizational cultures.
B) creates strong functional cultures.
C) increases integration and improves coordination among organizational members.
D) replaces strategic leadership.
E) controls the way employees think and behave.
Q2) When companies become too tall and the chain of command too long, strategic managers tend to lose control over the hierarchy and, subsequently, their strategies.
A)True
B)False
Q3) An organization that divides manufacturing and operations be regions uses geographic structure.
A)True
B)False
Q4) The value creation activities of organizational members are meaningless unless some type of structure is used to assign people to tasks and link the activities of different people and functions.
A)True
B)False
Page 11
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