Management Policy and Strategy Exam Review
Course Introduction
Management Policy and Strategy explores the formulation, implementation, and evaluation of organizational policies and long-term strategies that drive sustainable competitive advantage. The course examines the interrelationships between external environments, internal capabilities, and managerial decision-making processes. Students learn to analyze complex business scenarios, integrate functional knowledge from areas such as marketing, finance, and operations, and develop strategic plans for diverse types of organizations. Emphasis is placed on ethical considerations, global perspectives, and the roles of leadership and organizational culture in successful strategy execution.
Recommended Textbook
Strategic Management and Business Policy Globalization Innovation and Sustainablility 14th Edition
12 Chapters 1254 Verified Questions
1254 Flashcards
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Page 2
Chapter 1: Basic Concepts in Strategic Management
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106 Verified Questions
106 Flashcards
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Sample Questions
Q1) Which of the following is NOT one of the four triggering events listed in the text that are the stimulus for a strategic change?
A) intervention by the organization's bank
B) annual strategic planning conference
C) threat of a takeover
D) new CEO
E) awareness by management of decreased profitability
Answer: B
Q2) One of the benefits of globalization is
A) economies of scale.
B) decreased outsourcing.
C) increased union negotiations.
D) increased taxes.
E) additional human resource training.
Answer: A
Q3) The goal of NAFTA is complete economic integration.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Corporate Governance
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Sample Questions
Q1) Stewardship theory proposes insiders tend to identify with the corporation and its success.
A)True
B)False
Answer: True
Q2) Jeff Bezos, CEO of Amazon.com, uses the S team to engage in continuous strategic planning.
A)True
B)False
Answer: True
Q3) Which of the following is NOT descriptive of interlocking directorates?
A) Interlocking directorates occur because large firms have a large impact on other corporations.
B) Interlocking directorates are more common in small, family-owned companies.
C) Interlocking directorates are a useful method for gaining inside information about an uncertain environment.
D) Interlocking directorates occur in about 20% of the 1000 largest US firms.
E) Interlocking directorates provide objective expertise about a firm's strategy.
Answer: B
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Page 4
Chapter 3: Ethics and Social Responsibility in Strategic Management
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97 Flashcards
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Sample Questions
Q1) Which of the following is NOT one of the examples provided as an organizational benefit received from being socially responsible?
A) They can attract outstanding employees who prefer working for a socially responsible firm.
B) They are more likely to be welcomed into a foreign country.
C) They are more likely to attract capital infusions from investors who view reputable companies as desirable long-term investments.
D) They are guaranteed to maximize resource productivity and reduce the average payback period of investment.
E) Their environmental concerns may enable them to charge premium prices and gain brand loyalty.
Answer: D
Q2) According to Kohlberg's levels of moral development, the conventional level is characterized by considerations of society's laws and norms.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Environmental Scanning and Industry Analysis
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Sample Questions
Q1) The origin of competitive advantage lies in the ability to
A) gain major stockholders.
B) identify and respond to environmental change well in advance of competition.
C) launch products quickly.
D) serve customers faster.
E) create surprise for others.
Q2) Statistical modeling is a quantitative forecasting technique that attempts to discover causal or at least explanatory factors that link two or more time series together.
A)True
B)False
Q3) Which barrier to entry uses cost advantages associated with large size?
A) rivalry among existing firms
B) switching costs
C) cost disadvantages independent of size
D) capital requirements
E) economies of scale
Q4) Discuss the most commonly practiced form of forecasting.
Q5) Describe the four general forces in the societal environment.
Q6) Describe Porter's approach to industry analysis.
Page 6
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Chapter 5: Internal Scanning and Organizational Analysis
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109 Flashcards
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Sample Questions
Q1) A current trend in corporate information systems is the increasing use of the Internet for marketing, intranets for internal communication, and extranets for logistics and distribution.
A)True
B)False
Q2) The breadth of an organization's culture is also known as
A) cultural intensity.
B) cultural diversification.
C) cultural integration.
D) cultural strategy.
E) cultural prerogative.
Q3) The marketing mix refers to product, place, packaging, and price.
A)True
B)False
Q4) Knowledge that can be easily articulated and communicated is known as A) tacit knowledge.
B) explicit knowledge.
C) imitable knowledge.
D) transferable knowledge.
E) durable knowledge.
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Chapter 6: Strategy Formulation: Situation Analysis and Business Strategy
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Sample Questions
Q1) One company that has successfully found a propitious niche is
A) Coca-Cola.
B) PepsiCo.
C) Frank J. Zamboni & Company.
D) Walmart.
E) Disney.
Q2) One risk of a cost leadership strategy is that the technology for production or of products may change.
A)True
B)False
Q3) An acronym for the assessment of the external and internal environments of the business corporation in the process of strategy formulation/strategic planning is
A) PET.
B) MBO.
C) SWOT.
D) SBU.
E) ROI.
Q4) What are cooperative strategies?
Q5) What are Porter's four generic strategies?
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Chapter 7: Strategy Formulation: Corporate Strategy
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103 Flashcards
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Sample Questions
Q1) The Growth Share Matrix of the Boston Consulting Group suggests that the excess cash being generated by cash cows should be used to fund
A) dogs.
B) question marks.
C) stars.
D) white knights.
E) fish.
Q2) Discuss the three general orientations comprising directional strategy?
Q3) According to the BCG Growth Share Matrix, products that typically bring in far more money than is needed for maintenance of their market share are called A) cash cows.
B) lost leaders.
C) dogs.
D) question marks.
E) stars.
Q4) Concentric diversification is growth into unrelated businesses.
A)True
B)False
Q5) Discuss the more popular stability strategies.
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Chapter 8: Strategy Formulation: Functional Strategy and Strategic Choice
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Sample Questions
Q1) When Colgate-Palmolive and Unilever take a successful product that they marketed in one part of the world and market it elsewhere, they are following a market development strategy.
A)True
B)False
Q2) A company which has invested so heavily in a particular strategy that it will not consider a change in this strategy even if it is not successful, would be an example of which strategy to avoid?
A) follow the leader
B) hit another home run
C) arms race
D) do everything
E) losing hand
Q3) Each business unit has its own set of departments, each with its own functional strategy.
A)True
B)False
Q4) The real-options approach is used by Chevron for bidding on petroleum reserves.
A)True
B)False
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Chapter 9: Strategy Implementation: Organizing for Action
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Sample Questions
Q1) What is synergy? According to Goold and Campbell, what are the six forms it can take?
Q2) Research generally supports Chandler's proposition that structure follows strategy as well as the reverse proposition that structure influences strategy.
A)True
B)False
Q3) Which type of structure enables a corporation to decentralize decision making to the local subsidiaries?
A) geographic-area structure
B) product-group structure
C) network structure
D) matrix structure
E) functional structure
Q4) Which of the following is NOT an offensive tactic?
A) frontal assault
B) flanking maneuver
C) guerilla warfare
D) raising structural barriers
E) encirclement
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Chapter 10: Strategy Implementation: Staffing and Directing
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Sample Questions
Q1) What information should an action plan include?
Q2) Successful defender firms tend to be headed by CEOs with backgrounds in the areas of
A) research/engineering and general management.
B) accounting/finance, manufacturing/production, and general management.
C) marketing/sales.
D) human resources and strategy.
E) purchasing and logistics.
Q3) Research indicates that a multinational corporation performs at a higher level when its CEO has international experience.
A)True
B)False
Q4) Approximately what percent of manufacturing companies have implemented some form of quality management practices?
A) 92
B) 76
C) 50
D) 22
E) 10
Q5) What is TQM and what are its essential ingredients?
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Chapter 11: Evaluation and Control
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Sample Questions
Q1) The multi-domestic MNC and the global MNC should use loose controls on its foreign units.
A)True
B)False
Q2) The comparison of the expected cost of production against the actual cost of production typically occurs in the
A) investment center.
B) revenue center.
C) standard cost center.
D) profit center.
E) expense center.
Q3) ROI stands for return on incentives.
A)True
B)False
Q4) The German company SAP AG originated the concept of ERP with its A) activity-based costing.
B) transfer pricing.
C) spreadsheet software.
D) R/3 software system.
E) transnational software integrator.
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Chapter 12: Suggestions for Case Analysis
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Sample Questions
Q1) Which financial indicator is calculated by the ratio of annual dividends per share to current market price per share?
A) return on equity
B) dividend payout ratio
C) dividend yield on common stock
D) price/earnings ratio
E) debt to equity ratio
Q2) Which of the following financial ratios is NOT a profitability ratio?
A) net profit margin
B) gross profit margin
C) asset turnover
D) ROE
E) ROI
Q3) If a firm's trends in common-size statements are generally in line with those of the rest of the industry, problems are less likely than if the firm's trends are worse than the industry average.
A)True
B)False
Q4) In performing a basic financial analysis, what five steps should be taken?
Q5) List Schilit's short checklist of items to examine for red flags.
Page 14
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