Management Consulting Test Bank
Course
Introduction
Management Consulting explores the principles, methodologies, and practical skills necessary for successful consulting in both internal and external environments. The course covers the consulting process from initial client engagement to diagnosis, solution development, implementation, and follow-up. Students examine contemporary challenges facing consultants, such as data-driven strategy, change management, and organizational transformation. Through case studies, simulations, and team projects, participants develop critical analytical, communication, and problem-solving abilities, preparing them for effective advisory roles in diverse industries.
Recommended Textbook
Strategic Management Concepts and Cases Competitiveness 12th Edition by
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13 Chapters
1670 Verified Questions
1670 Flashcards
Source URL: https://quizplus.com/study-set/245
Page 2
Michael A. Hitt
Chapter 1: Strategic Management and Strategic Competitiveness
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133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/3850
Sample Questions
Q1) An effective vision statement must specify the industry in which a company will operate.
A)True
B)False
Answer: False
Q2) Economies of scale and huge advertising budgets are just as effective in the new competitive landscape as they were in the past.
A)True
B)False
Answer: False
Q3) ?To implement a firm's strategies, the firm takes actions to with the goal of achieving strategic competitiveness and above average returns.
A)True
B)False
Answer: True
Q4) Resources are considered rare when they have no structural equivalent.
A)True
B)False
Answer: False
Page 3
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Chapter 2: The External Environment: Opportunities,
Threats, Industry Competition, and Competitor Analysis
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138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/3851
Sample Questions
Q1) A certain marble quarry provides a unique type of marble that is richly colored and strikingly veined. It has been used for churches and public buildings throughout the world. The architect of a new headquarters for a prestigious Fortune 500 firm has specified the use of this marble, and this marble only, for the project. Which of the following statements is most likely to be true?
A) The cost of the marble will be expensive because of the bargaining power of the supplier.
B) The cost of the marble will be moderate because of the bargaining power of the buyer.
C) The cost of the marble will be moderate because of economies of scale.
D) The cost of the marble will be expensive because of the high strategic stakes involved.
Answer: A
Q2) The bankruptcy filings by General Motors and Chrysler Corporation during the Great Recession illustrate that firms cannot directly control the general environment's segments.
A)True
B)False
Answer: True
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Chapter 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages
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133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/3852
Sample Questions
Q1) Describe the importance of internal analysis to the strategic success of the firm. Should not-for-profit organizations perform internal analysis? Why or Why not?
Answer: By analyzing its internal environment, a firm determines what actions it can take based on its unique resources, capabilities, and core competencies. The firm's core competencies are the source of the firm's competitive advantage. Internal analysis allows the firm to compare what it is capable of doing (what it "can do") with what it "might do" (which is a function of opportunities and threats in the external environment). Matching what a firm can do with what it might do allows the firm to develop its vision, pursue its strategic mission, and select and implement its strategies. This allows the firm to leverage its unique bundle of resources and capabilities to gain competitive advantage.
Not-for-profit organizations absolutely need to conduct internal analysis. Competition for donations and grants is intense and a well-run, strategically focused organization is more likely to attract positive press and satisfy customer needs. Students should recognize that above-average return is not the only measure of success for organizations. When people gather to try and accomplish something, there will be managers, formal or informal. If those managers can think strategically, the group will have more success.
Page 5
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Chapter 4: Business-Level Strategy
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/3853
Sample Questions
Q1) In general, firms can be most effective if they develop business-level strategies that will serve the needs of the "typical customer" in the industry.
A)True
B)False
Q2) Viewing the world through the customer's eyes and constantly seeking ways to create more value for the company enhances:
A) the reach of the company toward the customer.
B) the ability to identify the customer.
C) the richness of the relationship with the customer.
D) affiliation with the customer.
Q3) By linking companies with their suppliers, distributors, and customers, ____ provide a company with flexibility.
A) flexible manufacturing systems
B) information networks
C) Total Quality Management systems
D) capabilities
Q4) Describe the additional risks undertaken by firms pursuing a focus strategy.
Q5) Describe how a differentiation strategy can help a firm earn above-average returns.
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Chapter 5: Competitive Rivalry and Competitive Dynamics
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107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/3854
Sample Questions
Q1) Intensified rivalry within an industry results in:
A) increased hiring across the industry.
B) increased total revenues across the industry.
C) decreased average profitability across the industry.
D) increased entries into the industry.
Q2) A firm that is LEAST likely to launch competitive actions is one that has:
A) organizational slack.
B) advanced research and development.
C) recently improved the quality of its products.
D) large size.
Q3) Without quality, the firm's products:
A) can compete effectively on the basis of low price.
B) lack credibility among customers.
C) must be exported to developing countries, because they are not competitive in the United States or developed countries.
D) are associated with predatory competition.
Q4) In general, strategic actions elicit fewer competitive responses than do tactical actions.
A)True
B)False
Page 7
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Chapter 6: Corporate-Level Strategy
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140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/3855
Sample Questions
Q1) Research has shown that horizontal acquisitions
A) tend to have disappointing financial results in the long run.
B) are being replaced by virtual acquisitions.
C) result in lower levels of performance than unrelated acquisitions.
D) are able to use activity sharing to successfully create economies of scope.
Q2) Which acquisition would be considered the LEAST related?
A) A candy manufacturer purchases a chemical laboratory specializing in food flavorings.
B) A chain of garden centers acquires a landscape architecture firm.
C) A hospital acquires a long-term care nursing home.
D) An upscale "white-tablecloth" restaurant chain acquires a travel agency.
Q3) Firms using a related diversification strategy may gain market power when successfully using their related constrained or related linked strategy.
A)True
B)False
Q4) Many manufacturing firms are reducing vertical integration and moving to independent supplier networks.
A)True
B)False
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Chapter 7: Merger and Acquisition Strategies
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/3856
Sample Questions
Q1) What is restructuring and what are its common forms?
Q2) An advantage of using horizontal, vertical, or related acquisitions is that they are not subject to regulatory review.
A)True
B)False
Q3) Cross-border acquisitions are primarily made to:
A) reshape the firm's competitive scope.
B) reduce the cost of new product development.
C) take advantage of higher education levels of labor in developed countries.
D) overcome barriers to entry in another country.
Q4) When the target firm does not solicit the acquiring firm's bid, it is referred to as a(n):
A) stealth raid.
B) adversarial acquisition.
C) takeover or unfriendly acquisition.
D) leveraged buyout.
Q5) A related acquisition involves two firms in the same industry.
A)True
B)False
Q6) What are the results of the three forms of restructuring?
Page 9
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Chapter 8: International Strategy
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129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/3857
Sample Questions
Q1) When the country risk is high, firms prefer to enter with a greenfield investment rather than a joint venture.
A)True
B)False
Q2) Identify and describe the major risks of international diversification.
Q3) A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company, but it is looking for growth opportunities. This company should primarily consider the option of:
A) licensing.
B) exporting.
C) a strategic alliance.
D) a greenfield venture.
Q4) Which of the following is NOT a disadvantage associated with exporting?
A) Potential loss of proprietary technologies
B) High transportation costs
C) Loss of control over distribution activities
D) Tariffs imposed by local governments
Q5) Discuss the three international corporate-level strategies. On what factors are these strategies based?
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Chapter 9: Cooperative Strategy
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123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/3858
Sample Questions
Q1) Firms in a standard-cycle market may form alliances in order to:
A) take advantage of opportunities in emerging market countries.
B) more quickly distribute new products.
C) capture economies of scale.
D) share risky R&D investments.
Q2) The cost minimization approach of managing alliances is more expensive to put into place and to use than is the opportunity maximization management approach.
A)True
B)False
Q3) Strategic alliances have become the cornerstone of many firms' competitive strategy, particularly large global competitors.
A)True
B)False
Q4) According to the Chapter 9 Mini Case, in addition to their corporate-level alliance, Renault and Nissan have each formed vertical complementary strategic alliances with other companies.
A)True
B)False
Q5) Identify and define the two different types of network strategies.
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Chapter 10: Corporate Governance
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142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/3859
Sample Questions
Q1) Corporate governance is all of the following EXCEPT:
A) mechanisms used to determine and control the strategic direction and performance of organizations.
B) a means to establish and maintain harmony between owners and top managers whose interests may conflict.
C) ensuring that top managers' interests are aligned with the interests of stockholders.
D) resolve conflicts among corporate employees.
Q2) Given the demands for greater accountability and improved performance, which of the following is NOT a voluntary change many Boards of Directors have initiated?
A) Moving toward having directors from different backgrounds
B) Strengthening the internal management and accounting control systems
C) Compensating directors with stock options rather than with fixed remuneration
D) Establishing and using formal processes to evaluate the Board's performance
Q3) ____ is an important influence in Japanese corporate governance structures.
A) Innovation
B) Consensus
C) Competition
D) Individualism
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12
Chapter 11: Organizational Structure and Controls
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136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/3860
Sample Questions
Q1) Internal competition for corporate resources is effective for companies with an unrelated diversification strategy, but dysfunctional for companies with a related constrained strategy.
A)True
B)False
Q2) Organizational structure:
A) specifies the firm's formal reporting relationships, procedures, controls, and authority and decision-making processes.
B) specifies the firm's informal reporting relationships, procedures, controls, and authority and decision-making processes.
C) specifies the firm's formal value proposition, the markets it will serve, and how the firm will provide value in those markets.
D) specifies the firm's control mechanisms, grievance procedures, reporting relationships, procedures, and authority over decision-making processes.
Q3) To implement a related linked strategy, a firm usually needs an SBU structure.
A)True
B)False
Q4) Discuss the difference between strategic controls and financial controls.
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Chapter 12: Strategic Leadership
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118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/3861
Sample Questions
Q1) All of the following are external environmental sources that affect managerial discretion EXCEPT:
A) industry structure.
B) corporate culture.
C) market growth rate.
D) potential for product differentiation.
Q2) Which of the following is NOT a factor that determines the amount of a manager's decision discretion?
A) Characteristics of the manager
B) Characteristics of the organization
C) Cohesiveness of the Board of Directors
D) The external environmental
Q3) Which key strategic leadership action plays a key role in influencing how the firm conducts its business and regulates and controls employees' behavior?
A) Effectively Managing the Firm's Resource Portfolio.
B) Determining Strategic Direction.
C) Regulating and Controlling Employees.
D) Sustaining an Effective Organizational Culture.
Q4) Define human capital and its importance to the firm's success.
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Chapter 13: Strategic Entrepreneurship
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/3862
Sample Questions
Q1) If the company's workers have scant existing knowledge, their "absorptive capacity" to learn new knowledge will be limited.
A)True
B)False
Q2) Entrepreneurship is the economic engine driving national economic growth in many nations.
A)True
B)False
Q3) ____ is(are) critical in order for a firm to gain access to resources from partners in a cooperative alliance.
A) Complementary strategic goals
B) Shared values
C) An entrepreneurial mind-set
D) Compatible organizational cultures
Q4) Internal corporate venturing does NOT involve:
A) autonomous strategic behavior.
B) induced strategic behavior.
C) strategic alliances.
D) product champions.
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