Management Theory Exam
Review
Course Introduction
Management Theory provides an overview of the fundamental principles and frameworks that guide organizations and managers in achieving efficiency and effectiveness. The course examines classical, behavioral, and contemporary perspectives of management, exploring the evolution of management thought and the contributions of key theorists such as Frederick Taylor, Henri Fayol, and Mary Parker Follett. Students analyze core functions of management including planning, organizing, leading, and controlling, and evaluate how different theories inform decision-making, organizational structure, and leadership styles. The course also emphasizes the application of management theories to real-world business problems, preparing students to critically assess and implement effective management practices in diverse organizational settings.
Recommended Textbook
Crafting and Executing Strategy 19th Edition by Arthur A. Thompson
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12 Chapters
1405 Verified Questions
1405 Flashcards
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Chapter 1: What Is Strategy and Why Is It Important
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70 Verified Questions
70 Flashcards
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Sample Questions
Q1) A winning strategy must pass which three tests?
A) The Dominant Market Test,the Sustainable Advantage Test,and the Profit Test.
B) The Fit Test,the Competitive Advantage Test,and the Performance Test.
C) The Sustainable Advantage Test,the Fit Test,and the Profit Test.
D) The Performance Test,the Dominant Market Test,and the Fit Test.
E) The Fit Test,the Sustainable Advantage Test,and the Dominant Market Test.
Answer: B
Q2) The objectives of a well-crafted strategy require management to strive to:
A) match rival businesses products and quality dimensions in the marketplace.
B) build profits for short-term success.
C) realign the market to provoke change in rival companies.
D) develop lasting success that can support growth and secure the company's future over the long term.
E) re-create their business models regularly.
Answer: D
Q3) Powerful execution of a powerful strategy is a proven recipe for winning in the marketplace.True or false? Explain your answer.
Answer: No Answer
Q4) Explain in detail what a company's business model entails?
Answer: No Answer
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Chapter
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110 Verified Questions
110 Flashcards
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Sample Questions
Q1) What is the meaning of the term "balanced scorecard"? What are the merits of using a balanced scorecard in judging a company's performance?
Answer: No Answer
Q2) The task of stitching together a strategy:
A) entails addressing a series of how's: how to grow the business,how to please customers,how to outcompete rivals,how to respond to changing market conditions,and how to achieve strategic and financial objectives.
B) is primarily an exercise in deciding which of several freshly emerging market opportunities to pursue.
C) is mainly an exercise that should be dictated by what is comfortable to management from a risk perspective and what is acceptable in terms of capital requirements. D) requires trying to copy the strategies of industry leaders as closely as possible.
E) is mainly an exercise in good planning.
Answer: A
Q3) Identify the key characteristics of a well-stated organizational objective.
Answer: No Answer
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Chapter 3: Evaluating a Companys External Environment
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143 Verified Questions
143 Flashcards
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Sample Questions
Q1) Which one of the following is NOT a common type of driving force?
A) Reductions in uncertainty and business risk
B) Changing societal concerns,attitudes,and lifestyles
C) Diffusion of technical know-how across companies and countries
D) Increasing efforts to collaborate closely with suppliers
E) Advances in technology and manufacturing process innovation
Answer: D
Q2) The most powerful and widely used tool for diagnosing the principle competitive pressures in a market is the:
A) Five Forces Model.
B) SWOT.
C) Competition Intensity Model.
D) Dynamic Simulation Model.
E) Competitor Profiling.
Answer: A
Q3) Can an industry be attractive to one company and unattractive to another company? Why or why not?
Answer: No Answer
Q4) Identify and briefly describe five common barriers to entering an industry.
Answer: No Answer
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Chapter 4: Evaluating a Companys Resources, Capabilities, and Competitiveness
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171 Verified Questions
171 Flashcards
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Sample Questions
Q1) Which of the following is not an analytical tool for revealing a company's competitiveness and for helping to match the strategy to the company's own particular circumstances?
A) Resource and capability analysis
B) SWOT analysis
C) Value chain analysis
D) Bench-pressing analysis
E) Competitive strength analysis
Q2) Which of the following is a clear representation of a company's capability?
A) A company's brand
B) A productive input that is owned or controlled by the firm
C) The capacity of a firm to perform some activity
D) An alliance or collaboration with another firm
E) All of these.
Q3) A company lacking stand-alone resource strength should focus on bundling several resource strengths into a core competence.True or false? Explain and support your answer.
Q4) Why do a company's core competencies matter in crafting strategy?
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Q5) A distinctive competence represents competitively superior resource strength.True or false? Explain your answer.
Chapter 5: The Five Generic Competitive Strategies: Which
One to Employ
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) A company's biggest vulnerability in employing a best-cost provider strategy is:
A) relying too heavily on outsourcing.
B) getting squeezed between the strategies of firms employing low-cost provider strategies and high-end differentiation strategies.
C) getting trapped in a price war with low-cost leaders.
D) being timid in cutting its prices far enough below high-end differentiators to win away many of their customers.
E) not having a sustainable distinctive competence in cost reduction.
Q2) Which one of the five generic competitive strategies is most likely to be best suited for an industry whose product is a commodity? Explain.
Q3) In what market and competitive circumstances are focused low-cost and focused differentiation strategies attractive?
Q4) What market conditions and circumstances make a low-cost provider strategy attractive? What are the pitfalls in pursuing a low-cost provider strategy? What can go wrong?
Q5) How does a focused differentiation strategy differ from a broad differentiation strategy?
Page 7
Q6) What are the keys to sustaining a focused low-cost strategy?
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Chapter 6: Strengthening a Companys Competitive
Position: Strategic Moves, Timing, and Scope of Operations
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Backward vertical integration can produce:
A) a full integration when activities remain the domain of key suppliers.
B) a tapered integration if the firm consolidates all activities in-house.
C) a differentiation-based competitive advantage when activities enhance the performance of the final product.
D) a focused differentiation strategy when the market is broad and the product is a commodity.
E) All of these.
Q2) Strategic alliances:
A) are the cheapest means of developing new technologies and getting new products to market quickly.
B) are collaborative formal arrangements where two or more companies join forces and agree to work cooperatively toward some strategically relevant objective.
C) are a proven means of reducing the costs of performing value chain activities.
D) are best used to insulate a company from the impact of the five competitive forces.
E) help insulate a firm from the adverse impacts of industry driving forces.
Q3) What are the general strategic objectives of merger and acquisition strategies?
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Page 8
Chapter 7: Strategies for Competing in International Markets
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139 Verified Questions
139 Flashcards
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Sample Questions
Q1) The primary strategic options for entering foreign markets,depends on the firm's wherewithal to:
A) rely on strategic alliances or joint ventures with foreign companies.
B) maintain a national (one-country)production base and exporting goods to foreign markets.
C) adopt a licensing approach with foreign firms to produce and distribute one's products or to use the company's technology.
D) employ a franchising strategy.
E) All of these.
Q2) The reasons why a company opts to expand outside its home market include all of the following EXCEPT:
A) gaining access to new customers for the company's products/services.
B) spreading its business risk across a wider market base.
C) achieving lower costs through economies of scale,experience,and increased purchasing power.
D) exploiting its core competencies and capabilities.
E) identifying resources and capabilities in the company's home market.
Q3) Discuss in some detail the difference between a multidomestic strategy and a global strategy.Give the pros and cons of each.
Page 9
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Chapter 8: Corporate Strategy: Diversification and the Multibusiness Company
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174 Verified Questions
174 Flashcards
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Sample Questions
Q1) Besides financial cash flow considerations,there are two other factors to consider in assessing whether a diversified company's businesses exhibit good financial fit,namely:
A) does each of the businesses adequately contribute to achieving company-wide performance targets and does the corporation have adequate financial strength to fund its different businesses.
B) does each of the businesses operate in sound financial manner and can they provide a continuing earnings stream.
C) does each of the businesses generate sufficient free cash flow to operate and can they successfully manage their business model independently.
D) does each of the businesses when combined provide synergistic benefits and can they maintain the synergy savings over time.
E) All of these.
Q2) What are the advantages and benefits of using an industry attractive-business strength matrix to evaluate a diversified company's lineup of businesses?
Q3) What does the industry attractiveness test involve in evaluating a diversified company's business lineup? Why is it relevant?
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Page 10
Chapter 9: Ethics, corporate Social Responsibility, Environmental Sustainability, and Strategy
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90 Verified Questions
90 Flashcards
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Sample Questions
Q1) CSR strategies and environmental sustainability strategies that both provide valuable benefits and fulfill customer needs in a superior fashion can lead to competitive advantage:
A) while corporate social agendas that address only social issues may boost the company's reputation for corporate citizenship are unlikely to improve its competitive strength in the marketplace.
B) when they are linked to a company's competitively important resources and capabilities of value chain activities.
C) when such initiatives become ingrained in the way it operates its business every day.
D) especially when the workforce diversity strategy encourages individuality,inclusiveness and for respecting differences it can lead to empowerment and creative ways to serve customers.
E) All of these.
Q2) What is the essence of the business case for why a company should engage in socially responsible actions and environmentally sustainable business practices?
Q3) What are the differences between the school of ethical universalism and the school of ethical relativism?
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Page 11
Chapter 10: Building an Organization Capable of Good
Strategy Execution: People, Capabilities, and Structure
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) Organizing a company's work effort to promote successful strategy execution involves:
A) deciding how much to spend on training managers and employees.
B) deciding which value chain activities to perform in-house and which to outsource,and making internally performed strategy-critical value chain activities the main building blocks in the organization structure.
C) choosing an organization structure that is a tight fit with the corporate culture.
D) hiring a capable management team.
E) instituting a compensation structure that reduces employee turnover and thus stabilizes the makeup of work teams.
Q2) Identify and briefly discuss the four types of organizational structures that can be aligned with strategy execution.
Q3) Identify and briefly discuss the three common approaches to building core competencies and competitive capabilities.
Q4) Who has strategy execution responsibility and who is ultimately responsible for making sure that the task of implementing and executing the strategy goes well?
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Chapter 11: Managing Internal Operations: Actions That Promote
Good Strategy Execution
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88 Flashcards
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Sample Questions
Q1) Which of the following is NOT a sound guideline for designing a reward and incentive system that helps promote good strategy execution?
A) The reward system must be administered with scrupulous objectivity and fairness.
B) The payoff for meeting or beating performance targets must be a major,not minor,piece of the total compensation package.
C) The incentive plan should extend to all managers and all employees,not just top management.
D) The reward system must reward non-performers who,despite expending tremendous effort,have not fared well in achieving the benchmarks under the incentive system.
E) Make sure that the performance targets each individual or team is expected to achieve involve outcomes that the individual or team can personally affect.
Q2) Give at least three non-monetary examples of motivation and rewards practices that have the capability to foster good strategy execution and explain how they act to produce such a result.
Q3) What three principles underlie the statistical thinking of Six Sigma quality control programs?
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Page 13
Chapter 12: Corporate Culture and Leadership: Keys to Good Strategy Execution
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106 Flashcards
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Sample Questions
Q1) Which one of the following is a typical characteristic of a weak company culture?
A) Very little cultural support for the company's strategic vision and strategy.
B) No code of ethics and deep hostility to change and to people who champion new ways of doing things.
C) A complicated value chain that acts to create multiple subcultures.
D) A lack of values and principles that are consistently preached or widely shared.
E) No strong sense of teamwork.
Q2) What makes a politicized internal environment so unhealthy?
A) The fact that political infighting consumes a great deal of organizational energy.
B) The continuous empire-building is common practice as managers pursue their own agendas.
C) The building of autonomous fiefdoms pervades the work climate.
D) The overabundance of political maneuvering takes away from efforts to execute strategy.
E) All of these.
Q3) Briefly identify 3 types of unhealthy corporate cultures.
Q4) What are the five traits of unhealthy cultures?
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