Management Capstone Midterm Exam
Course Introduction
Management Capstone is a culminating course designed to integrate and apply knowledge acquired throughout a management program. Students engage in comprehensive case studies, group projects, and strategic analyses that challenge them to solve real-world business problems. The course emphasizes critical thinking, ethical decision-making, and effective leadership as students develop and present actionable recommendations to simulated or actual organizations. Through this experiential learning process, students refine their analytical, communication, and teamwork skills, preparing them for leadership roles in a dynamic business environment.
Recommended Textbook
The Management of Strategy Concepts and Cases International 10th Edition by Hitt
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13 Chapters
2022 Verified Questions
2022 Flashcards
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Page 2
Chapter 1: Strategic Management and Strategic Competitiveness
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135 Verified Questions
135 Flashcards
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Sample Questions
Q1) The ability to effectively and efficiently access and use information is
A) vitally important at the point where a domestic firm enters the global market.
B) an important source of competitive advantage in virtually all industries.
C) the minimum required for survival in virtually any industry.
D) critically important mainly in high technology industries.
Answer: B
Q2) The profit pool is the
A) pool of assets that is distributed to investors.
B) total profits earned in an industry along all points of the value chain.
C) profits that are accrued when a firm earns above-average returns.
D) total profits that can be divided up among the competitors within an industry.
Answer: B
Q3) An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values.
A)True
B)False
Answer: True
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Page 3
Chapter 2: The External Environment: Opportunities,
Threats, Industry Competition, and Competitor Analysis
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164 Verified Questions
164 Flashcards
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Sample Questions
Q1) The competitor analysis is the final part of the external environment analysis and focuses on each company against which a firm directly competes (e.g., Coca-Cola and PepsiCo, Home Depot and Lowe's, and Airbus and Boeing).
A)True
B)False
Answer: True
Q2) An industry is defined as
A) a group of firms producing the same products or services.
B) firms producing items that sell through the same distribution channels.
C) firms that sell the same products or services to the same customer base.
D) a group of firms producing products that are close substitutes.
Answer: D
Q3) Competitor analysis is focused on the factors and conditions influencing an industry's profitability potential.
A)True
B)False
Answer: False
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Page 4
Chapter 3: The Internal Organization: Resources,
Core Competencies, and Competitive Advantages
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153 Verified Questions
153 Flashcards
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Sample Questions
Q1) As discussed in the Chapter 3 Strategic Focus, CEOs of companies such as Viacom, the Oprah Winfrey Network, the Gap, and Cisco frequently had to make decisions about __________________ and the success of those decisions affected the tenure of those CEOs.
A) how to please customers
B) how to best rivals
C) use of the firm's resources
D) their method of compensation
Answer: C
Q2) The most numerous of the following organizational characteristics are A) resources.
B) capacities.
C) capabilities.
D) core competencies.
Answer: A
Q3) Any core competency has the potential to lose its value creating ability. A)True
B)False
Answer: True
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Chapter 4: Business Level Strategy
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147 Verified Questions
147 Flashcards
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Sample Questions
Q1) Recently, the only type of car available for Anthony to rent on a business trip was a compact, fuel-efficient Japanese import. Anthony was surprised at the comfort and performance of the car. He is in the market for a new car and had previously considered only buying another luxury SUV. Now, he is thinking about the significant cost savings he would have if he bought the compact vehicle rather than a new SUV. This is an example of the competitive risk that
A) a competitor's products can convey a product's differentiated features to a customer at a significantly reduced price.
B) a product imitation can cause customers to perceive that competitors offer essentially the same good.
C) experience can narrow a customer's perceptions of the value of a product's differentiated features.
D) brand loyalty insulates a company from rivalry with competitors.
Q2) (Refer to Case Scenario 3) What generic business strategy best describes Abrahamson's? Why?
Q3) What are the risks of an integrated cost leadership/differentiation strategy?
Q4) (Refer to Case Scenario 1) What risks is ICP accepting by adopting its focused low-cost strategy?
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Page 6
Chapter 5: Competitive Rivalry and Competitive Dynamics
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150 Verified Questions
150 Flashcards
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Sample Questions
Q1) To be a first mover, the firm must have readily available resources to invest in R&D as well as to rapidly and successfully produce and market a stream of innovative products.
A)True
B)False
Q2) ____ relates to the gains or losses a firm will experience if it attacks a rival or responds to an attack by a rival.
A) Motivation
B) Awareness
C) Responsiveness
D) Ability
Q3) A company in a ____ industry is LEAST likely to make heavy use of patents and copyrights.
A) slow-cycle
B) medium-cycle
C) standard-cycle
D) fast-cycle
Q4) The benefits of being a first mover are most substantial in fast cycle markets.
A)True
B)False
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Chapter 6: Corporate-Level Strategy
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162 Verified Questions
162 Flashcards
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Sample Questions
Q1) Corporate-level strategies are strategies a firm uses to diversify its operations from a single business competing in a single market into several product markets and, most commonly, into several businesses.
A)True
B)False
Q2) What are the managerial motives to diversify?
Q3) During the 1990s top executives of Titanic, Inc., followed a pattern of aggressive acquisitions and diversification. Now, Titanic is performing poorly and earning below average returns. Lusitania, a large conglomerate firm, is in the final stages of purchasing Titanic. Lusitania has announced that it will fire Titanic's current top executives. The Titanic executives may not be worried about their impending job loss if they
A) plan to take poison pills.
B) have golden parachutes.
C) have silver handcuffs.
D) have ironclad contracts.
Q4) Describe the primary reasons a firm pursues increased diversification.
Q5) (Refer to Case Scenario 2) What difficulties might you expect JC to encounter related to its acquisition of Plastico?
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Chapter 7: Merger and Acquisition Strategies
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174 Verified Questions
174 Flashcards
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Sample Questions
Q1) Evidence suggests that returns to shareholders of acquired firms are greater than those for acquiring firms.
A)True
B)False
Q2) Horizontal acquisitions and related acquisitions tend to contribute less to a firm's competitiveness than do unrelated acquisitions.
A)True
B)False
Q3) When a firm becomes highly diversified through acquisitions, managers often focus on financial controls rather than strategic controls.
A)True
B)False
Q4) A merger is a strategy through which two firms agree to integrate their operations on a relatively coequal basis.
A)True
B)False
Q5) What are the results of the three forms of restructuring?
Q6) What is an LBO and what have been the results of such activities?
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Chapter 8: International Strategy
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167 Flashcards
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Sample Questions
Q1) _______________________ is the set of costs associated with unfamiliar operating environments; economic, administrative and cultural differences; and the challenges of coordination over distances.
A) transnational risk
B) regionalization
C) liability of foreignness
D) international risk
Q2) Raymond Vernon states that the classic rationale for international diversification is to
A) pre-emptively dominate world markets before foreign companies can establish dominance.
B) avoid domestic governmental regulation.
C) extend the product's life cycle.
D) avoid international governmental regulation.
Q3) Four types of distances are associated with the liability of foreignness: cultural, administrative, geographic, and economic.
A)True
B)False
Q4) (Refer to Case Scenario 2) Which option would you recommend?
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Chapter 9: Cooperative Strategy
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148 Verified Questions
148 Flashcards
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Sample Questions
Q1) Nonequity strategic alliances exist when two or more firms join together to create an independent firm.
A)True
B)False
Q2) Which type of strategic alliance is best at passing tacit knowledge between firms?
A) primary cooperative strategic alliances
B) joint ventures
C) equity strategic alliances
D) nonequity strategic alliances
Q3) The global airline industry is one in which
A) national political interests prevent airlines from making international alliances.
B) the fast-cycle nature of the industry mandates heavy use of alliances.
C) most alliances tend to be vertical complementary.
D) alliance versus alliance competition dominates firm versus firm competition.
Q4) Firms in standard-cycle markets seek to gain economies of scale through cooperative alliances.
A)True
B)False
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11
Chapter 10: Corporate Governance
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170 Verified Questions
170 Flashcards
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Sample Questions
Q1) The governance mechanism most closely connected with deterring unethical behaviors by holding top management accountable for the corporate culture is
A) ownership concentration.
B) the market for corporate control.
C) executive compensation systems.
D) the board of directors.
Q2) An agency relationship exists when one party delegates
A) decision making responsibility to a second party.
B) financial responsibility to employees.
C) strategy implementation actions to functional managers.
D) ownership of a company to a second party.
Q3) (Refer to Case Scenario 2) Raptec would enhance the effectiveness of its board if it appointed a "lead director" who would be responsible for the board agenda and oversight of nonmanagement board activities.
A)True
B)False
Q4) (Refer to Case Scenario 1) What are the advantages and disadvantages of paying the new manager primarily on new store sales growth?
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Page 12
Chapter 11: Organizational Structure and Controls
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157 Verified Questions
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Sample Questions
Q1) Specialization refers to the extent to which authority for decision-making is retained at higher managerial levels.
A)True
B)False
Q2) The CEO of Transector, Inc., set a 6.5 percent rate-of-return target for all divisions for the past year. Now, at the end of the year, three of Transector's seven divisions have not met this rate-of-return goal. The division managers of these three under-performing divisions have all secretly contacted executive placement firms to investigate openings at other firms, because they know their future at Transector is in jeopardy as financial performance is all-important at Transector. Transector probably uses the ____ structure.
A) competitive form of the multidivisional
B) SBU form of the multidivisional
C) worldwide geographic area
D) distributed strategic network
Q3) The marketing and R&D functions are emphasized in the differentiation strategy's functional structure.
A)True
B)False
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Page 13
Chapter 12: Strategic Leadership
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148 Verified Questions
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Sample Questions
Q1) External social capital is increasingly critical to firm success as few if any companies have all the resources to successfully compete against their rivals.
A)True
B)False
Q2) The ____ is a framework firms can use to verify that they have established both strategic and financial controls to assess their performance.
A) managerial model
B) holistic control system
C) balanced scorecard
D) internal auditing system
Q3) As noted in the Chapter 12 Strategic Focus, IBM is an example of a company with a succession plan as there are at least three candidates for the CEO position soon to be vacated by Sam Palmisano.
A)True
B)False
Q4) What is organizational culture? What must strategic leaders do to develop and sustain an effective organizational culture?
Q5) Define human capital and its importance to the firm's success.
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Chapter 13: Strategic Entrepreneurship
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147 Verified Questions
147 Flashcards
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Sample Questions
Q1) The risks of international entrepreneurship include all the following EXCEPT
A) unstable foreign currencies.
B) problems with market efficiencies.
C) limitations on market size.
D) strong "buy-domestic" programs.
Q2) Discuss the differences between autonomous strategic behavior and induced strategic behavior.
Q3) Pet Care Companion Connection (PCCC) is an organization that trains persons with mild to moderate mental disabilities to care for pets in a pet boarding facility. This organization has been successful in providing a quality service for pet owners and a supportive training environment for their trainees. The tuition charged to trainees is only somewhat higher than the fee which day-care providers would charge for these individuals. Graduates of the program are qualified for employment by commercial kennels. PCCC is an example of
A) taking advantage of a need in the marketplace.
B) creative destruction of existing services for pet boarding.
C) institutionalized entrepreneurship.
D) internal corporate venturing.
Q4) (Refer to Case Scenario 1) What resources do Wim and Cathy bring to their venture?
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