Strategic Decision Making Exam
Review
Course Introduction
Strategic Decision Making explores the processes, models, and analytical tools used by managers to make high-stakes, long-term choices that shape the direction of organizations. The course covers concepts such as decision analysis, risk assessment, scenario planning, game theory, and behavioral aspects that influence strategic choices in complex and uncertain environments. Through case studies and simulations, students develop skills to critically evaluate alternatives, anticipate consequences, and align decisions with organizational goals in a competitive and dynamic global landscape.
Recommended Textbook
Crafting and Executing Strategy Concepts and Readings 20th Edition by Arthur Thompson
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1272 Verified Questions
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Page 2
Chapter 1: What Is Strategy and Why Is It Important
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101 Flashcards
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Sample Questions
Q1) A fashion magazine plans to cuts down on its fashion-related content and provides the space for high-priced advertisements,but fails to convince giant fashion brands to advertise in the magazine.What do we understand from this failure?
Answer: Utilizing space for advertisements was a great strategy to earn profits but poor planning and execution of this strategy led to its failure.Good strategy and good strategy execution are the most telling signs of good management.The rationale for using the twin standards of good strategy-making and good strategy-execution to determine whether a company is well managed is therefore compelling: The better conceived a company's strategy and the more competently it is executed,the more likely the company will be a standout performer in the marketplace.
Q2) Adapting to new conditions like new innovations by competitors,fast-changing technological developments,and constantly evaluating what is working result in:
A) an assured profitability strategy.
B) a broad market entry strategy.
C) an emergent strategy.
D) unlimited revenue generation.
E) a proactive strategy.
Answer: C
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Page 3
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106 Flashcards
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Sample Questions
Q1) The task of crafting a company's strategy is typically a job for the company's whole management team,not just a small group of senior executives.True or false? Explain and support your answer.
A)True
B)False
Answer: True
Q2) Which of the following is NOT a common shortcoming when wording a company's vision statement? When the statement is somewhat:
A) vague or incomplete-short on specifics.
B) flexible-is adjusted according to changing circumstances.
C) bland or uninspiring-short on inspiration.
D) generic-could apply to almost any company (or at least several others in the same industry).
E) reliant on superlatives (best, most successful, recognized leader, global or worldwide leader, first choice of customers).
Answer: B
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4
Chapter 3: Evaluating a Companys External Environment
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) Which of the following does NOT qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?
A) Changes in who buys the product and how they use it, and changes in the long-term industry growth rate
B) Changes brought about by the entry or exit of major firms, product innovation, and marketing innovation and cost efficiency
C) Changes in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration
D) Changes in buyer preferences for differentiated products instead of mostly standardized or identical products
E) Changes in economies of scale and experience curve effects brought on by changes in manufacturing technology and new Internet capabilities
Answer: C
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5
Chapter 4: Evaluating a Companys Resources,
Capabilities,and Competitiveness
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111 Verified Questions
111 Flashcards
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Sample Questions
Q1) While listening or categorizing company resources,what matters is that:
A) all tangible resources are categorized correctly.
B) important resources are reported against strategically subjective activities.
C) resources are prioritized in terms of value propositions.
D) strategically placed resources are manageable.
E) all the different types of resources are included in the inventory.
Q2) Calculating competitive strength ratings for a company and comparing them against strength ratings for its key competitors helps indicate:
A) which weaknesses and vulnerabilities of competitors the company might be able to attack successfully.
B) which competitors are in profitable strategic groups and which competitors are in unprofitable strategic groups.
C) which competitors are employing offensive strategies and which competitors are employing defensive strategies.
D) which competitors are likely to make money and which are likely to lose money in the years ahead.
E) what the industry's key success factors are.
Q3) Why do a company's core competencies matter in crafting strategy?
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Chapter 5: The Five Generic Competitive Strategies
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Sample Questions
Q1) A broad differentiation strategy improves profitability when:
A) it is focused on product innovation.
B) differentiating enhances product performance and quality.
C) the differentiating features appeal to sophisticated and prestigious buyers.
D) the higher price the product commands exceeds the added costs of achieving the differentiation.
E) the differentiator charges a price that is only fractionally higher than the industry's low-cost provider.
Q2) The marketing emphasis of a company pursuing a broad differentiation strategy usually is to:
A) under-price rival brands with comparable features.
B) tout differentiating features and charge a premium price that more than covers the extra costs of differentiating features.
C) out-advertise rivals and make frequent use of discount coupons.
D) emphasize selling directly to end-users and promoting personalized customer service.
E) communicate the product's ability to serve the customer's every need.
Q3) Explain how the strategic target of a low-cost provider differs from the strategic target of a best-cost provider.
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Page 7
Chapter 6: Strengthening a Companys Competitive Position
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100 Flashcards
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Sample Questions
Q1) Which of the following is NOT a purpose of a defensive strategy?
A) To increase the risk of having to defend an attack
B) To weaken the impact of any attack that occurs
C) To pressure challengers to aim their efforts at other rivals
D) To help protect a competitive advantage
E) To decrease the risk of being attacked
Q2) Identify and briefly discuss three factors a company must consider in order to capture the benefits of engaging in strategic alliances.
Q3) The formation of a new corporation,jointly owned by two or more companies agreeing to share in the revenues,expenses,and control,is known as:
A) a joint venture.
B) a limited liability company.
C) a partnership.
D) sole proprietorship.
E) an S corporation.
Q4) What are the advantages of strategic alliances and collaborative partnerships with key suppliers?
Q5) Identify and briefly discuss two "best targets" for offensive attacks by companies.
Page 8
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Chapter 7: Strategies for Competing in International Markets
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Sample Questions
Q1) Explain why the strategies of firms that expand internationally are usually grounded in home-country advantages or core competencies.
Q2) A strategy that incorporates elements of both multidomestic and global strategies is termed a "transnational" strategy,but sometimes it is referred to as a(n):
A) glocalization strategy.
B) international strategy.
C) think-local, act-global strategy.
D) cross-border integrated strategy.
E) standardized integrated strategy.
Q3) Discuss why a company desirous of competing in foreign country markets needs to pay close attention to the advantages of the cross-border transfer of competencies and capabilities.Are these transfers often a key to competitive advantage? Why or why not?
Q4) Under what circumstances is it advantageous for a company competing in foreign markets to concentrate its value chain activities in a select few locations?
Q5) How does a transnational strategy differ from a multidomestic or a global strategy?
Q6) Briefly identify the special features of competing in foreign markets.
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Chapter 8: Corporate Strategy
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Sample Questions
Q1) To test whether a particular diversification move has good prospects for creating added shareholder value,corporate strategists should use:
A) the profit test, the competitive strength test, the industry attractiveness test, and the capital gains test.
B) the better-off test, the competitive advantage test, the profit expectations test, and the shareholder value test.
C) the barrier-to-entry test, the competitive advantage test, the growth test, and the stock price effect test.
D) the strategic fit test, the industry attractiveness test, the growth test, the dividend effect test, and the capital gains test.
E) the attractiveness test, the cost-of-entry test, and the better-off test.
Q2) Briefly discuss when it makes good strategic sense for a company to consider diversification.
Q3) Under what circumstances might an already diversified company choose to enter additional businesses and broaden its diversification base?
Q4) Explain the difference between a cash cow business and a cash hog business.
Q5) Discuss the pros and cons of a strategy of unrelated diversification.
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Page 10
Chapter 9: Ethics, Corporate Social Responsibility,
Environmental-Sustainability, and Strategy
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Sample Questions
Q1) Which of the following is NOT true about why codes of conduct based on ethical relativism are ethically dangerous for multinational companies?
A) They create a maze of conflicting ethical standards.
B) They justify conflicting ethical standards for operating in different countries.
C) They establish little moral basis for establishing ethical standards for a company worldwide.
D) They restrict enforcement of ethical standards worldwide.
E) They create standards that mostly relate to ethical codes in a company's home market, which might trigger compliance issues in the local market.
Q2) Why are well-conceived CSR strategies and sustainable business practices considered in the best long-term interest of shareholders?
Q3) What are the differences between the school of ethical universalism and the school of ethical relativism?
Q4) What is the difference between ethics and business ethics?
Q5) What is meant by integrated social contracts theory? What is its contribution to the debate about ethical standards?
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Chapter 10: Building an Organization Capable of Good Strategy Execution
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Sample Questions
Q1) Outsourcing value chain activities has such strategy executing advantages as:
A) less internal bureaucracy, speedier decision making, and quicker responses to changing market conditions.
B) facilitating the empowerment of employees (because there are fewer things to do internally).
C) promoting a total quality management culture.
D) reducing the need to establish a strongly implanted corporate culture.
E) reducing the strategic importance of building valuable core competencies.
Q2) A dynamic capability is the:
A) ongoing capacity to modify existing resources and capabilities to create new ones.
B) improvement evaluation process for eliminating waste in the firm.
C) functional and operating resources management process.
D) ongoing capability to understand and establish a rival commitment to resource alignment.
E) most compelling product or service a firm .
Q3) A decentralized organizational structure is more likely to further the cause of good strategy execution than is a centralized organization structure.True or false? Justify your answer.
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Chapter 11: Managing Internal Operations
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Sample Questions
Q1) The broad areas that internal information business systems need to cover include all of the following EXCEPT:
A) financial performance data.
B) corporate culture data.
C) customer data.
D) operations data.
E) employee data.
Q2) Which of the following does NOT facilitate strategy execution?
A) Hyundai service centers follow same routines when receiving vehicles for servicing.
B) Ford encourages staff to skip practices out of sync with the company's mission.
C) General Motors showrooms have similar operating practices across regions.
D) Chevrolet Service center replicates the caliber of customer service across locations.
E) Renault is averse to standardization of the way activities are performed at its service centers.
Q3) Identify five guidelines for creating an incentive compensation system that will help drive successful strategy execution.
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Chapter 12: Corporate Culture and Leadership
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Sample Questions
Q1) The task of top executives in making corrective adjustments includes:
A) knowing when to continue with the present corporate culture and when to shift to a different and better corporate culture.
B) being good at figuring out whether to arrive at decisions quickly or slowly in choosing among the various alternative adjustments.
C) thoroughly analyzing the situation and exercising good business judgment in deciding what actions to take.
D) deciding whether to try to fix the problems of poor strategy execution or simply shift to a strategy that is easier to execute correctly.
E) deciding how to identify the problems that need fixing.
Q2) A company's corporate culture is grounded in and shaped by its core values and ethical standards and drives a shared commitment to achieve the firm's strategic and financial objectives.True or false? Justify your answer.
Q3) To ensure the proficient implementation of strategy in an organization,top-level executives can best achieve this by delegating authority to middle and lower-level managers and by creating a sense of empowerment among employees.True or false? Explain and justify your answer.
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