Management Capstone Exam Practice Tests
Course Introduction
The Management Capstone course serves as the culminating experience for students pursuing studies in management. It integrates knowledge and skills acquired from previous coursework to address complex, real-world business challenges. Through case studies, simulations, and team projects, students analyze contemporary management issues, develop strategic solutions, and refine decision-making abilities. Emphasizing critical thinking, leadership, ethical considerations, and communication, this course prepares students to transition confidently from academia to managerial roles in various organizational settings.
Recommended Textbook
Strategic Management 2nd Edition by
Frank T. Rothaermel
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12 Chapters
1522 Verified Questions
1522 Flashcards
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Page 2
Chapter 1: What Is Strategy
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134 Verified Questions
134 Flashcards
Source URL: https://quizplus.com/quiz/57108
Sample Questions
Q1) A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n)_____.
A) competitive advantage
B) balanced scorecard
C) power position
D) equity leverage
Answer: A
Q2) Exis Inc.and Stelma Inc.are two companies that have been manufacturing typewriters for almost 30 years.Due to the reduced demand for typewriters today, both companies' average return on invested capital is approximately -5 percent.The current industry average is 2 percent.In this scenario, Exis Inc.and Stelma Inc.most likely have:
A) competitive advantage over other firms in their industry.
B) competitive parity with each other.
C) strategic alliance with each other.
D) economies of scope instead of economies of scale.
Answer: B
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3
Chapter 2: Strategic Leadership: Managing the Strategy Process
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) Unplanned strategic initiatives taken by the _____ within an organization will be referred to as an emergent strategy.
A) suppliers and vendors of the organization
B) shareholders of the organization
C) team leads of project teams in the organization
D) corporate executives in the organization's headquarters
Answer: C
Q2) According to the Level-5 leadership pyramid, a manager turns into an executive who is capable of building lasting greatness into the organization through a combination of will power and humility when he or she reaches _____.
A) Level 5
B) Level 3
C) Level 2
D) Level 1
Answer: A
Q3) What does strategic formulation in strategic management process concern?
Answer: Strategy formulation concerns the choice of strategy in terms of where and how to compete.It is helpful to break down strategy formulation into three distinct areas: corporate, business, and functional.
Page 4
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Chapter 3: External Analysis: Industry Structure,
Competitive Forces, and Strategic Groups
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) Eon Inc., Electravia Inc., and FC Inc., the three largest firms in the consumer electronics industry, hold close to 85 percent of the industry's market share.These companies mainly compete against each other by providing unique features in their products rather than pricing them low.These firms are interdependent, and each firm must consider the strategic actions of its competitors.Which of the following industry competitive structures does this scenario best illustrate?
A) Monopolistic competition
B) Oligopoly
C) Monopoly
D) Perfect competition
Answer: B
Q2) Which of the following is most likely an implication of new firms entering an industry?
A) The bargaining power of buyers will reduce.
B) The industry's overall profit potential and sales will increase.
C) The rivalry among existing competitors will reduce.
D) The incumbent firms will spend more to satisfy their existing customers.
Answer: D
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5
Chapter 4: Internal Analysis: Resources, Capabilities, and Core Competencies
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127 Verified Questions
127 Flashcards
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Sample Questions
Q1) How can a firm fully exploit the competitive potential of its resources, capabilities, and competencies?
Q2) Sarah has recently started a restaurant in a commercial area where there are many other established restaurants and popular fast food chains.Sarah owns the plot on which her restaurant is located and this makes her cost of operations lower than the competitors.This factor allows her to offer her products at a competitive price.Sarah has also invested a huge amount on the interiors of the restaurant and in equipping the kitchen with the latest appliances used by her competitors.In this scenario, which of the following is the most valuable resource for Sarah's business?
A) The investments made by Sarah on the restaurant's interiors
B) The latest kitchen equipment that is at par with the restaurant's competitors
C) The restaurant's late entry into the market
D) The land owned by Sarah, which reduces cost of operations
Q3) _____ describes a situation in which the cause and effect of a phenomenon are not readily apparent.
A) Resource immobility
B) Causal ambiguity
C) Resource heterogeneity
D) Social complexity
Page 6
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Chapter 5: Competitive Advantage, Firm Performance, and Business Models
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) _____ is best described as the difference between a buyer's willingness to pay for a product or service and a firm's total cost to produce it.
A) Economic value created
B) Break-even point
C) Consumer surplus
D) Cost of capital
Q2) _____ indicates how much a firm benefits from interest-free loans extended by its suppliers and creditors.
A) Payables turnover
B) Receivables turnover
C) Assets turnover
D) Inventory turnover
Q3) _____ is best described as a process in which a group of people voluntarily performs tasks that were traditionally completed by a firm's employees.
A) Bootstrapping
B) Outsourcing
C) Amalgamating
D) Crowdsourcing
Q4) What are the disadvantages of the balanced scorecard?
Page 7
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Chapter 6: Business Strategy: Differentiation, Cost
Leadership, and Blue Oceans
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) Which of the following is more of a value driver than a cost driver?
A) Superior customer service
B) Economies of scale
C) Learning-curve effects
D) Experience-curve effects
Q2) Combining economies of learning with the existing production technology allows a firm to:
A) move up a given experience curve.
B) move down a given learning curve.
C) jump to a less steeper learning curve.
D) jump to a flatter experience curve.
Q3) Value drivers contribute to a firm's competitive advantage only if:
A) the increase in value creation exceeds the increase in costs.
B) they can shrink the firm's value gap.
C) they can restrict the firm from claiming a premium price for its products.
D) the decrease in perceived value leads to an increase in costs.
Q4) What does a firm that pursues a cost-leadership strategy primarily focus on?
Q5) Briefly explain the difficulties in pursuing an integration strategy.
Q6) What is an integration strategy?
Q7) What is a value gap? Page 8
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Page 9
Chapter 7: Business Strategy: Innovation, Entrepreneurship, and Platforms
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126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/57102
Sample Questions
Q1) In developed economies, the electric car industry is in the introduction stage, and the industry for MP3 players is in the shakeout phase.What does this imply?
A) The mode of competition in the electric car industry will be based on price, whereas in the MP3 player industry, the mode of competition will be non-price based.
B) The industry for electric cars will focus more on product innovation, whereas in the MP3 player industry, the focus will be on process innovation.
C) The electric car industry will move to the maturity stage, whereas the industry for MP3 players will enter the growth stage next.
D) The industry for electric cars will primarily pursue an integration strategy, whereas in the MP3 players industry, the focus will be on differentiation.
Q2) Define entrepreneurship.Who are entrepreneurs?
Q3) How is process innovation different from product innovation?
Q4) Does Procter & Gamble's "Connect + Develop" use an open innovation or closed innovation model? Provide reasons to support your answer.
Q5) Discuss the drawbacks of the industry life cycle.
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Page 10
Chapter 8: Corporate Strategy: Vertical Integration and Diversification
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126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/57101
Sample Questions
Q1) While KFC focuses on international markets, its competitor, Chick-fil-A, focuses on the domestic U.S.market.What is the reason behind this strategic difference?
A) KFC has more financial resources than Chick-fil-A since it is a publicly traded stock company.
B) Chick-fil-A has a larger customer base and number of outlets in the U.S. market than its competitor KFC.
C) KFC wants to follow a differentiation strategy, and Chick-fil-A wants to pursue a cost-leadership strategy.
D) Chick-fil-A is part of a large conglomerate, whereas KFC has more flexibility to pursue a geographic diversification strategy.
Q2) _____ are best described as voluntary arrangements between firms that involve the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services to lead to competitive advantage.
A) Embargos
B) Cartel agreements
C) Strategic alliances
D) Corporate acquisitions
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Page 11
Chapter 9: Corporate Strategy: Strategic Alliances, Mergers and Acquisitions
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126 Verified Questions
126 Flashcards
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Sample Questions
Q1) Which of the following reasons motivated Facebook to acquire Instagram, a photo and video-sharing social media site, for $1 billion in 2012?
A) The desire to gain a new capability
B) The need to enter a new geographical market
C) The need to reduce its level of horizontal integration
D) The desire to pursue an unrelated diversification strategy
Q2) When a standalone organization is created and owned by two or more parent companies together, the strategic alliance is referred to as a(n)_____.
A) non-equity alliance
B) equity alliance
C) proprietorship
D) joint venture
Q3) The _____ is a strategic management framework that proposes that critical resources and capabilities frequently are embedded in strategic alliances that span firm boundaries.
A) real-options perspective
B) stakeholder strategy
C) relational view of competitive advantage
D) non-differentiation strategy
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Chapter 10: Global Strategy: Competing Around the World
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) What is meant by local responsiveness?
Q2) The _____ states that geographic location alone should not lead to firm-level competitive advantage because firms are now, more than ever, able to source inputs globally.
A) death-of-distance hypothesis
B) local responsiveness hypothesis
C) real option framework
D) dynamic capabilities framework
Q3) Which of the following is a benefit of the transnational strategy?
A) It facilitates global learning and harnesses economies of location.
B) It completely eliminates a firm's risk of intellectual property expropriation.
C) It helps to create a matrix global structure, which is cost effective and easy to implement.
D) It helps a firm pursue a cost-leadership strategy by minimizing the need for local responsiveness.
Q4) Within the CAGE distance framework, what does geographic distance imply?
Q5) What is meant by globalization? How has it affected the economies around the world?
Q6) When should a multinational company pursue an international strategy?
Page 13
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Chapter 11: Organizational Design: Structure, Culture, and Control
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128 Verified Questions
128 Flashcards
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Sample Questions
Q1) Curve Inc.is a software development firm based in California.It strives to provide highly differentiated software at cheaper prices when compared to its competitors.Which of the following organizational designs should Curve Inc.implement to ensure the maximum success of its business strategies?
A) Organic
B) Simple
C) Ambidextrous
D) Mechanistic
Q2) Which of the following is a feature of an organic organization?
A) High degree of specialization
B) Rigid division of labor
C) Clear lines of authority
D) High span of control
Q3) Organizational design is:
A) the process of creating, implementing, and modifying the structure of an organization.
B) primarily focused on replacing a firm's competitive advantage with competitive parity.
C) a process that always functions independently of strategy formulation.
Page 14
D) primarily focused on formulating effective strategies, not implementing them.
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Chapter 12: Corporate Governance and Business Ethics
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126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/57097
Sample Questions
Q1) Neville and Andre are customer care employees at JPN Care.In between calls, Neville and Andre spend time on Facebook and YouTube.The relaxed guidelines at JPN allow them to do that.However, sometimes, they knowingly avoid answering calls or keep customers on hold, while they check their social networking accounts.Such behavior: A) is neither unlawful nor unethical; hence, Neville and Andre cannot be reprimanded. B) typically exemplifies the agency problem of adverse selection. C) goes against the principles of shareholder capitalism. D) can be stopped by implementing performance incentives and strict control mechanisms.
Q2) Why is board independence critical to effectively fulfilling a board's governance responsibilities?
Q3) How does Nobel laureate Milton Friedman's view of the firm's social obligations tie in with shareholder capitalism?
Q4) What is agency theory?
Q5) What is the connection between Rajat Gupta and insider trading?
Q6) How does the market for corporate control work?
Q7) Describe moral hazard with an example.
Q8) What is corporate governance?
Page 15
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