Management Consulting
Question Bank
Course Introduction
Management Consulting provides students with a comprehensive understanding of the consulting industry, exploring the methods and frameworks consultants use to analyze organizations, develop recommendations, and drive change. The course covers essential topics such as problem-solving techniques, client engagement, project management, and communication strategies. Through case studies, group projects, and real-world scenarios, students learn how to diagnose business challenges, design effective solutions, and present actionable recommendations to clients. By the end of the course, students are equipped with both the analytical and interpersonal skills necessary to succeed in the dynamic field of management consulting.
Recommended Textbook
Strategic Management and Competitive Advantage Concepts and Cases 5th Edition by Jay B.
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11 Chapters
1088 Verified Questions
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Chapter 1: What Is Strategy and the Strategic Management Process
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100 Flashcards
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Sample Questions
Q1) Which ratio signals a greater risk of bankruptcy as it increases?
A) debt to equity
B) quick ratio
C) debt to assets
D) cash flow per share
Answer: C
Q2) A firm's ________ is a measure of its competitive advantage calculated using information from a firm's published profit and loss and balance sheet statements.
A) economic performance
B) accounting performance
C) strategic performance
D) sustainable performance
Answer: B
Q3) What is the residual claimants view of equity holders?
Answer: The residual claimants view is that equity holders only receive payment on their investment in a firm after all legitimate claims by a firm's other stakeholders are satisfied. This view posits that by maximizing returns to its equity holders, a firm is ensuring that its other stakeholders are fully compensated for investing in a firm.
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Chapter 2: Evaluating a Firms External Environment
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Sample Questions
Q1) ________ is/are the distribution of individuals in a society in terms of age, sex, marital status, income, ethnicity, and other personal attributes that may determine buying patterns.
A) Demographics
B) Economics
C) Technological trends
D) Culture
Answer: A
Q2) All divestments are caused by industry decline.
A)True
B)False
Answer: False
Q3) Mature industries are characterized by
A) an increase in total industry demand.
B) faster increases in production capacity.
C) a slowdown in the introduction of new products or services.
D) a decrease in the amount of international competition.
Answer: C
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Chapter 3: Evaluating a Firms Internal Capabilities
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Sample Questions
Q1) A firm's formal reporting structure, its formal and informal planning and its controlling and coordinating systems are examples of which type of resources?
A) financial resources
B) physical resources
C) human resources
D) organizational resources
Answer: D
Q2) LaserTech's new technology is an example of
A) financial resources.
B) physical resources.
C) human resources.
D) organizational resources.
Answer: B
Q3) When firms without a resource or capability face a cost disadvantage in obtaining or developing it compared to firms that already possess it, this resource or capability is described as perfectly imitable.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Cost Leadership
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Sample Questions
Q1) If Temper Company, a manufacturer of mattresses, was considering moving its production facilities to China but decided against it because the additional costs of shipping the mattresses back to the U.S. would offset the cost savings associated with moving the production facilities, the increased costs associated with shipping would be an example of
A) learning-curve economies.
B) diseconomies of scale.
C) economies of scale.
D) competitive advantages.
Q2) Large transportation costs can offset cost reductions attributable to the exploitation of economies of scale in manufacturing.
A)True
B)False
Q3) When a firm has high levels of production, it is often able to purchase and use specialized manufacturing tools that cannot be kept in operation in small firms.
A)True
B)False
Q4) Discuss the difference between the learning curve and economies of scale.
Q5) Identify six reasons firms can differ in their costs.
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Chapter 5: Product Differentiation
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Sample Questions
Q1) While product features, by themselves, are usually not a source of sustained competitive advantage, they can be a source of a temporary competitive advantage.
A)True
B)False
Q2) Which of the following bases of product differentiation is almost always easy to duplicate?
A) product features
B) product mix
C) product customization
D) consumer marketing
Q3) Timing-based product differentiation relies solely on being a first mover.
A)True
B)False
Q4) Wal-Mart exemplifies a firm pursuing a product-differentiation strategy while Victoria's Secret exemplifies a firm pursuing a cost-leadership strategy.
A)True
B)False
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Chapter 6: Vertical Integration
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Sample Questions
Q1) The downside risks associated with investing in a strategic alliance are unknown but fixed.
A)True
B)False
Q2) If Wal-Mart were to purchase a factory to make socks and it planned to sell these socks in its stores, this would be an example of forward vertical integration.
A)True
B)False
Q3) From a CEO's perspective, coordinating functional specialists to implement a vertical integration strategy almost always involves
A) conflict resolution.
B) competitive positioning.
C) product differentiation.
D) corporate expansion.
Q4) The major substitute for vertical integration is
A) vertical disintegration.
B) strategic alliances.
C) a product-differentiation strategy.
D) a low-cost strategy.
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Chapter 7: Corporate Diversification
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Sample Questions
Q1) When a firm operates in multiple geographic markets simultaneously it is said to be implementing a product diversification strategy.
A)True
B)False
Q2) Identify two potential substitutes for corporate diversification and discuss how each can provide benefits similar to corporate diversification.
Q3) Multipoint competition requires loose coordination between the different businesses in which a firm operates.
A)True
B)False
Q4) Shared activities can increase the expenses for a diversified firm's business.
A)True
B)False
Q5) Identify and distinguish between the five different levels of diversification discussed in Chapter 7.
Q6) Discuss shared activities as a potential source of economies of scope for diversified firms and identify the potential benefits and limits of activity sharing.
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Page 9
Chapter 8: Organizing to Implement Corporate Diversification
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Sample Questions
Q1) In an agency relationship, the party that delegates decision-making authority to another individual is known as the
A) stakeholder.
B) principal.
C) agent.
D) stockholder.
Q2) The most common organization structure for implementing a corporate diversification strategy is the U-form.
A)True
B)False
Q3) The senior executive (the president or CEO) in an M-form organization has two responsibilities:
A) budgeting and accounting.
B) budgeting and mission setting.
C) strategy formulation and strategy implementation.
D) strategy formulation and budgeting.
Q4) Identify the responsibilities of the senior executive in an M-form organization and discuss the three different roles in the office of the president and the responsibilities of each role.
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Chapter 9: Strategic Alliances
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Sample Questions
Q1) ________ exist(s) when firms directly communicate with each other to coordinate their levels of production and/or their prices.
A) Economies of scale
B) Explicit collusion
C) A learning race
D) Tacit collusion
Q2) In general, firms will prefer a strategic alliance over "going it alone" when the level of transaction-specific investment required to complete an exchange is moderate.
A)True
B)False
Q3) Alliances to facilitate entry into new industries are only valuable when the skills needed in these industries are complex and difficult to learn.
A)True
B)False
Q4) Describe five tools that firms can use to reduce the threat of cheating in strategic alliances.
Q5) Discuss when strategic alliances may be costly to directly duplicate.
Q6) What is the connection between strategic alliances and real options?
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Chapter 10: Mergers and Acquisitions
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Sample Questions
Q1) The number of firms that have used merger and acquisition strategies to become diversified over the past few years is minimal after the credit crunch crisis in 2008.
A)True
B)False
Q2) If P&G's acquisition of Wella had been delayed because it had to overcome a stipulation in Wella's corporate bylaws requiring that more than 50% of Wella's board of directors had to approve the takeover, this would be an example of A) the Pac Man defense.
B) a poison pill.
C) greenmail.
D) a shark repellent.
Q3) A firm engages in an acquisition when it purchases a second firm.
A)True B)False
Q4) The value that a bidding firm brings to a target firm through an acquisition should be discounted by the cost of strategizing to implement an acquisition.
A)True
B)False
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Chapter 11: International Strategies
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Sample Questions
Q1) A firm implements a(n) ________ strategy when it diversifies its business operations across country boundaries.
A) functional
B) operational
C) international
D) transnational
Q2) The role of corporate headquarters in a ________ is to constantly scan business operations across different countries for resources and capabilities that might be a source of competitive advantage for other divisions/country companies in the firm.
A) centralized hub
B) coordinated federation
C) decentralized federation
D) transnational structure
Q3) Discuss the four structural options for firms pursuing international strategies.
Q4) Financial risks can be daunting when a firm first begins international operations.
A)True
B)False
Q5) Is learning from international operations automatic for firms? Why or why not?
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