Strategic Decision Making
Solved Exam Questions
Course Introduction
Strategic Decision Making explores the concepts, methodologies, and tools essential for making effective decisions in complex and dynamic organizational environments. The course examines the role of strategic thinking, the application of analytical frameworks, and the impact of cognitive biases on decision processes. Students will learn to assess risk, evaluate alternatives, and formulate strategies that align organizational objectives with changing external conditions. Real-world case studies and simulations provide practical experience in addressing challenges faced by managers and leaders, fostering critical thinking skills and enhancing the ability to make sound, ethical decisions in uncertain contexts.
Recommended Textbook
Strategic Management and Competitive Advantage 6th Edition by Jay B. Barney
Available Study Resources on Quizplus
12 Chapters
1185 Verified Questions
1185 Flashcards
Source URL: https://quizplus.com/study-set/2383 Page 2
Chapter 1: What Is Strategy and the Strategic Management Process
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/47307
Sample Questions
Q1) Mission statements that are very inwardly focused and are defined only with reference to the personal values and priorities of its founders and top managers can hurt a firm's performance.
A)True
B)False
Answer: True
Q2) A firm's accounting performance is a measure of its competitive advantage calculated using information from a firm's published profit and loss and balance sheet statements.
A)True
B)False
Answer: True
Q3) The two types of measures of competitive advantage include
A)accounting measures and strategic measures.
B)strategic measures and economic measures.
C)accounting measures and economic measures.
D)qualitative measures and quantitative measures.
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Evaluating a Firms External Environment
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/47308
Sample Questions
Q1) Within the five forces framework,when all five threats are very high,competition in the industry begins to approach a monopoly.
A)True
B)False
Answer: False
Q2) ________ are resources required to successfully compete in an industry.
A)Strategically valuable assets
B)Technological leader strategies
C)Process innovations
D)Product innovations
Answer: A
Q3) Understanding a firm's general environment can help the firm identify some of the threats and opportunities it faces.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Evaluating a Firms Internal Capabilities
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/47309
Sample Questions
Q1) Resources in the resource based view are defined as the tangible and intangible assets that a firm controls,which it can use to conceive and implement its strategies.
A)True
B)False
Answer: True
Q2) Most firms have a resource base that is composed primarily of valuable but common resources and capabilities,some of which are essential if a firm is to gain competitive parity.
A)True
B)False
Answer: True
Q3) Computer hardware and software technology,robots used in manufacturing and automated warehouses are examples of which type of resources?
A)financial resources
B)physical resources
C)human resources
D)organizational resources
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Cost Leadership
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/47310
Sample Questions
Q1) Given the relatively low margins of firms pursuing a cost-leadership strategy,firms pursuing this strategy are especially vulnerable to buyers having their revenues reduced to a point where they are unable to earn normal or above-normal performance.
A)True
B)False
Q2) Firms implementing cost-leadership strategies will generally adopt a
A)multidivisional structure.
B)product divisional structure.
C)functional organizational structure.
D)matrix structure.
Q3) If cost-leadership strategies can be implemented by numerous firms in an industry,or if no firms face a cost disadvantage in imitating a cost-leadership strategy,then being a cost leader does not generate a sustained competitive advantage for a firm.
A)True
B)False
Q4) Identify how cost leadership helps neutralize each of the major threats in an industry.
Q5) Identify six sources of cost advantages for firms.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Product Differentiation
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/47311
Sample Questions
Q1) A hedonic price is that part of a products' or services' actual price that is not attributable to a particular attribute of that product or service.
A)True
B)False
Q2) Firms able to successfully differentiate their products and services are likely to see a decrease in their volume of sales.
A)True
B)False
Q3) In general,firms selling differentiated products face a demand curve that is A)upward sloping.
B)horizontal.
C)vertical.
D)downward sloping.
Q4) One feature of Coach's compensation policies is likely to be
A)rewards for cost reduction.
B)rewards for efficiency.
C)rewards for creative flair.
D)rewards for manufacturing efficiency.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Flexibility and Real Options
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/47312
Sample Questions
Q1) Cash flow projections can be reliable under conditions of uncertainty.
A)True
B)False
Q2) The effect of uncertainty on the value of a real option is extremely important.
A)True
B)False
Q3) Toryn,Inc.,a major player in semiconductors,makes small investments of 5-10 percent of a firm's equity in many emerging technology companies.Toryn buys the company outright once that company's technological uncertainty resolves.The option that Toryn,Inc.uses is called a ________ option.
A)positioning
B)scouting
C)strategic
D)stepping-stone
Q4) The riskiest cash flows receive the ________ discount rates.
A)largest
B)smallest
C)standard
D)bank
Q5) What are positioning options? How are they different from scouting options?
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Collusion
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/47313
Sample Questions
Q1) Tacit collusion requires firms to signal their willingness to cooperate to reduce competition directly.
A)True
B)False
Q2) According to Cournot cheating,assuming little or no product differentiation among a small number of firms,if one firm decides to cheat on a collusive agreement by reducing its prices,others will as well and,in the long run,firms in this industry will earn no economic profits.
A)True
B)False
Q3) According to the ________ cheating model,assuming little or no product differentiation among a small number of firms,if one firm decides to cheat on a collusive agreement by reducing its prices,others will as well and,in the long run,firms in this industry will earn no economic profits.
A)Cournot
B)Edgeworth
C)Stackelberg
D)Bertrand
Q4) What are the two types of collusion and how are they different?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Vertical Integration
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/47314
Sample Questions
Q1) Discuss the firm capabilities-based explanation of how vertical integration can create value.In your discussion identify the two broad implications of this approach and when,under this approach,firms should engage in vertical integration.
Q2) Research suggests that,in general,vertically integrating is ________ than not vertically integrating.
A)significantly more flexible
B)somewhat more flexible
C)comparatively flexible
D)less flexible
Q3) A decision-making setting is ________ when the future of an exchange cannot be known when investments in that exchange are being made.
A)uncertain
B)opportunistic
C)flexible
D)dynamic
Q4) What type of compensation approach goes best with the flexibility explanation of vertical integration?
To view all questions and flashcards with answers, click on the resource link above.
10
Chapter 9: Corporate Diversification
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/47315
Sample Questions
Q1) Most of the different types of economies of scope cannot be realized by equity holders on their own.
A)True
B)False
Q2) In general,as a source of capital a diversified firm has ________ information about a business that it owns compared to external sources of capital.
A)more and better B)the same C)less and inferior D)more but biased
Q3) If the different businesses that a single firm pursues are linked on only a couple of dimensions,or if different sets of businesses are linked along very different dimensions,that corporate diversification strategy is called related-linked diversification. A)True
B)False
Q4) Discuss shared activities as a potential source of economies of scope for diversified firms and identify the potential benefits and limits of activity sharing.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Organizing to Implement Corporate
Diversification
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/47316
Sample Questions
Q1) Transfer prices should equal opportunity cost.
A)True
B)False
Q2) Some scholars suggest that the search for optimal transfer pricing should be abandoned in favor of setting transfer pricing as a(n)________ process.
A)negotiation
B)arbitrary
C)conflict resolution
D)marketing
Q3) In principle,only the CEO and the president report to the board of directors while other senior managers report only to the CEO.
A)True
B)False
Q4) The senior executive (the president or CEO)in an M-form organization has two responsibilities:
A)budgeting and accounting.
B)budgeting and mission setting.
C)strategy formulation and strategy implementation.
D)strategy formulation and budgeting.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Strategic Alliances
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/47317
Sample Questions
Q1) Describe five tools that firms can use to reduce the threat of cheating in strategic alliances.
Q2) All of the following are tools and mechanisms firms can use to reduce the threat of cheating in strategic alliances except A)contracts.
B)equity investments.
C)joint ventures.
D)tacit collusion.
Q3) Discuss the concept of a learning race and identify three reasons why firms in an alliance may differ in the rate they learn from each other.
Q4) In a ________,cooperating firms create a legally independent firm in which they invest and from which they share any profits that are created.
A)licensing agreement
B)supply agreement
C)distribution agreement
D)joint venture
Q5) What is the connection between strategic alliances and real options?
Q6) Discuss when strategic alliances may be costly to directly duplicate.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Mergers and Acquisitions
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/47318
Sample Questions
Q1) If there is one target firm with a current market value of $20,000 as a stand-alone entity and five bidding firms,each of which has a current market value of $30,000 as a stand-alone entity,and the value of the target firms and any of the bidding firms combined is $60,000,estimate the price the bidding firms would be willing to pay for the target firm and the return to stockholders of bidding and target firms when there is strategic relatedness between firms.
Q2) When the assets of two similar-sized firms are combined,this is known as a merger.
A)True
B)False
Q3) The existence of strategic relatedness between bidding and target firms is sufficient for the equity holders of bidding firms to earn economic profits from their acquisition strategies.
A)True
B)False
Q4) The price of each of a firm's shares multiplied by the number of shares outstanding is known as the firm's current market value.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 14