Management Policy and Strategy Test Questions
Course Introduction
Management Policy and Strategy is a course designed to provide students with an integrated understanding of how organizations formulate, implement, and evaluate strategies in a competitive business environment. It explores the key concepts and analytical frameworks used by managers to assess internal capabilities, interpret external opportunities and threats, and make strategic decisions that drive organizational success. Emphasizing case studies and real-world scenarios, the course covers topics such as vision and mission setting, environmental scanning, competitive advantage, strategic planning, and organizational change. Students develop critical thinking and problem-solving skills as they learn how to align resources and policies with long-term objectives to achieve sustainable growth and navigate complex business challenges.
Recommended Textbook
Strategic Management Concepts and Cases 16th Edition by Fred R. David
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11 Chapters
1321 Verified Questions
1321 Flashcards
Source URL: https://quizplus.com/study-set/1473
Page 2
Chapter 1: The Nature of Strategic Management
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123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/29313
Sample Questions
Q1) Most traditional retailers have tried in vain to use their online sales to boost in-store sales.
A)True
B)False
Answer: False
Q2) U.S. firms are not being aggressively challenged in the computer industry.
A)True
B)False
Answer: False
Q3) According to Albert Einstein, "Knowledge is far more important than intuition."
A)True
B)False
Answer: False
Q4) Which statement best describes intuition?
A) It alone should be used in decision-making.
B) It represents a minor factor in decision-making integrated with analysis.
C) It should be coupled with analysis in decision-making.
D) It is better than analysis in decision-making.
E) It is management by ignorance.
Answer: C
Page 3
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Chapter 2: The Business Vision and Mission
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120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/29316
Sample Questions
Q1) According to King and Cleland, carefully developed written mission statements provide a basis for organizing work, departments, activities, and segments around a common purpose.
A)True
B)False
Answer: True
Q2) An effective mission statement should do all of the following EXCEPT A) include monetary amounts, numbers, percentages and ratios.
B) be inspiring.
C) reveal that the firm is environmentally responsible.
D) identify the utility of a firm's products.
E) be reconciliatory.
Answer: A
Q3) According to Vern McGinnis, a mission statement should define what the organization is and what the organization aspires to be.
A)True
B)False
Answer: True
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4
Chapter 3: The External Assessment
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115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/29317
Sample Questions
Q1) The five major categories of variables known as external forces are: 1) economic forces, 2) social, cultural, demographic, and natural environment forces, 3) political, governmental, and legal forces, 4) technological forces and 5) competitive forces.
A)True
B)False
Answer: True
Q2) The process of performing an external audit should involve
A) key representatives from each stakeholder group.
B) as many stakeholders as possible.
C) only strategists.
D) primarily strategists.
E) as many managers and employees as possible.
Answer: E
Q3) Protectionism is used by various countries around the world to safeguard their domestic industries.
A)True
B)False
Answer: True
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Chapter 4: The Internal Assessment
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123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/29318
Sample Questions
Q1) Any object, act, event, quality, or relation used to convey meaning is known as a A) myth.
B) rite.
C) value.
D) symbol.
E) metaphor.
Q2) Successful strategy formulation generally rests upon the ability of an organization to sell some product or service.
A)True
B)False
Q3) Define cultural products and give six examples of them.
Q4) In most industries, the major costs of producing a product or service are incurred within
A) marketing.
B) management.
C) research and development.
D) operations.
E) management information systems.
Q5) Explain the resource-based view and its relation to strategic management.
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Chapter 5: Strategies in Action
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123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/29319
Sample Questions
Q1) What principle is built on the idea that there is no general plan for which way to go and what to do?
A) Managing by crisis
B) Managing by extrapolation
C) Managing by objectives
D) Managing by hope
E) Managing by subjectives
Q2) Which term refers to selling a division or part of an organization?
A) Joint venture
B) Divestiture
C) Concentric diversification
D) Liquidation
E) Horizontal integration
Q3) Long-term objectives represent the results expected from pursuing certain strategies.
A)True
B)False
Q4) List three guidelines for when market development would be a particularly good strategy to pursue.
Q5) What are four common problems that cause joint ventures to fail?
Page 7
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Chapter 6: Strategy Analysis and Choice
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) On the x-axis of the IE Matrix, an IFE total weighted score of 2.5 represents a weak internal position.
A)True
B)False
Q2) Which of the following is the first step in developing a QSPM?
A) Compute the Total Attractiveness Scores.
B) Examine the Stage 2 matrices and identify alternative strategies the organization should consider implementing.
C) Assign weights to each key external and internal factor.
D) Determine the Attractiveness Scores.
E) Make a list of the firm's key external opportunities and threats and internal strengths and weaknesses in the left column of the QSPM.
Q3) For companies located in Quadrant III of the Grand Strategy Matrix, the first strategy recommended is
A) extensive cost and asset reduction.
B) asset expansion.
C) employee expansion.
D) immediate liquidation of assets.
E) divestiture.
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Chapter 7: Implementing Strategies: Management, Operations, and Human Resource Issues
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116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/29321
Sample Questions
Q1) How does reengineering differ from restructuring?
Q2) The primary benefit sought from restructuring is
A) employee involvement.
B) cost reduction.
C) increased morale.
D) increased number of hierarchical levels in the organization.
E) increased innovation.
Q3) Considerable time and effort should be devoted to assuring objectives are well conceived because they represent the basis for
A) monitoring progress toward long-term objectives.
B) establishing divisional priorities.
C) allocating resources.
D) evaluating managers.
E) all of the above
Q4) Effective strategy formulation can usually guarantee successful strategy implementation.
A)True
B)False
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Q5) What are five differences between strategy formulation and strategy implementation?
Chapter 8: Implementing Strategies: Marketing, Financeaccounting,
Rd, and Mis
Issues
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117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/29322
Sample Questions
Q1) What is the most widely used technique for determining the best combination of debt and stock?
A) Debt-to-Stock Ratio
B) Earnings Per Share/Earnings Before Interest and Taxes Analysis
C) Gross Profit Analysis
D) Capital Asset Pricing Model
E) Present Value Analysis
Q2) Perceptual mapping entails developing schematic representations that reflect how your products or services compare to competitors' on dimensions most important to success in the industry.
A)True
B)False
Q3) Which variable would be considered part of the "place" element of the marketing mix?
A) Product line
B) Service level
C) Personal selling
D) Sales territory
E) Discounts and allowances
10
Q4) Discuss some ways in which management information systems can benefit a company.
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Chapter 9: Strategy Review, Evaluation, and Control
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) A frequently used tool in strategy evaluation is the audit.
A)True
B)False
Q2) Which of these is a potential problem associated with using only quantitative criteria for selecting strategies?
A) Most quantitative criteria are geared to long-term objectives rather than annual objectives.
B) Different accounting methods can provide different results on many quantitative criteria.
C) Intuitive judgments are almost never used in deriving quantitative criteria.
D) Quantitative criteria include human factors that may be underlying causes of declining performance.
E) Quantitative criteria are not useful for comparisons of the firm's performance over different periods of time.
Q3) IFRS standards comprise 25,000 pages, whereas GAAP standards comprise 5,000 pages.
A)True
B)False
Q4) List and describe each of the three strategy-evaluation activities.
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Chapter 10: Business Ethics, Social Responsibility, and Environmental Sustainability
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117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/29314
Sample Questions
Q1) Which state generates the greatest number of megawatts of wind power?
A) Texas
B) Iowa
C) California
D) Minnesota
E) New Jersey
Q2) Responsibility for encouraging ethical decision making and ensuring ethical behavior in a firm lies
A) only with a firm's strategists.
B) only with a firm's managers.
C) only with a firm's shareholders.
D) with both a firm's strategists and its managers.
E) with neither a firm's strategists nor its managers.
Q3) Dumping banned or flawed products in foreign markets is considered to be an unethical business practice.
A)True
B)False
Q4) Contrast Ralph Nader's and Milton Friedman's positions on social responsibility. With whose view do you agree?
Q5) Explain why it is important to encourage whistle-blowing in a firm.
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Chapter 11: Global and International Issues
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126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/29315
Sample Questions
Q1) The need to amortize massive R&D investments over many markets is a major reason why the aircraft manufacturing industry became global.
A)True
B)False
Q2) Geographic distance and cultural differences are two of the factors that can make communication between domestic headquarters and overseas operations difficult.
A)True
B)False
Q3) List at least five potential advantages to initiating, continuing, and/or expanding international operations.
Q4) Spoken Chinese has more in common with spoken English than with spoken Japanese or Korean.
A)True
B)False
Q5) Organizations that conduct business operations across national borders are called international firms or multinational corporations.
A)True
B)False
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