Strategic Management
Exam Questions
Course Introduction
Strategic Management is a comprehensive course designed to provide students with an understanding of how organizations formulate, implement, and evaluate strategies to achieve long-term objectives and maintain a competitive advantage. The course explores key concepts such as environmental analysis, strategic decision-making, competitive positioning, corporate governance, and resource allocation. Through case studies and real-world examples, students learn to analyze both internal and external environments, identify strategic challenges and opportunities, and develop effective action plans. The curriculum emphasizes critical thinking, leadership, and the integration of functional business areas to prepare students for strategic roles in various organizational settings.
Recommended Textbook
Strategic Management Concepts and Cases Competitiveness and Globalization 11th Edition by
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Chapter 1: Strategic Management and Strategic Competitivenes
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Sample Questions
Q1) Although the fast food (or quick-service)industry is unattractive,McDonald's has earned above-average returns through product innovations,enhancing existing facilities,and buying properties outside the United States.
A)True
B)False
Answer: False
Q2) It is important to emphasize that,primarily because they are related to how a firm interacts with its stakeholders,almost all strategic management process decisions have A)ethical dimensions.
B)local dimensions.
C)political dimensions.
D)global dimensions.
Answer: A
Q3) Risk in terms of financial returns reflects an investor's uncertainty about economic gains or losses that will result from a particular investment.
A)True
B)False
Answer: True
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Chapter 2: The External Environment: Opportunities,
Threats, Industry Competition, and Competitor Analysis
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Sample Questions
Q1) The three parts of the external environment which affect a firm's strategic actions are
A)economic, political, and legal.
B)general, industry, and competitor.
C)industry, business, and product.
D)local, national, and global.
Answer: B
Q2) Which of the following is NOT an activity used in the external environmental analysis process?
A)scanning
B)decrypting
C)monitoring
D)assessing
Answer: B
Q3) An industry is defined as
A)a group of firms producing the same products or services.
B)firms producing items that sell through the same distribution channels.
C)firms that sell the same products or services to the same customer base.
D)a group of firms producing products that are close substitutes.
Answer: D
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Advantages
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Q1) Although an organization's good reputation is a valuable resource that takes years of superior marketplace competence to achieve,it is not a good basis for building a competitive advantage because it can be destroyed almost instantly by bad publicity.
A)True
B)False
Answer: False
Q2) "Motivating,empowering,and retaining employees" is an example of a capability that resides within the human resources functional area.
A)True
B)False
Answer: True
Q3) Costly-to-imitate capabilities are those which other firms cannot easily develop as they have no strategic equivalent.
A)True
B)False
Answer: False
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Chapter 4: Business-Level Strategy
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Sample Questions
Q1) In order to meet and exceed customer's expectations,firms must A)constantly manipulate customers' perceptions of their needs.
B)answer the questions: who, what, when, where, how, and why as they apply to customers.
C)continuously improve, innovate, and upgrade their core competencies. D)successfully defend their established core competencies from imitation by competitors.
Q2) (Refer to Case Scenario 1). What risks is ICP accepting by adopting its focused low-cost strategy?
Q3) A low-cost position in the industry is not a valuable defense against rivals when competing on the basis of price.
A)True
B)False
Q4) Global competition has increased the options for consumers and has made it more imperative for firms to identify the needs of customers in order to earn above-average returns.
A)True
B)False
Q5) Describe the additional risks undertaken by firms pursuing a focus strategy.
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Chapter 5: Competitive Rivalry and Competitive Dynamics
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Sample Questions
Q1) markets are often described as volatile and innovative.
A)Slow-cycle
B)Fast-cycle
C)Standard-cycle
D)Sheltered
Q2) (Refer to Case Scenario 2). How can a small player like Zig be such a successful competitor against a large,established firm like Plasco?
Q3) Walmart's aggressive pricing strategy is a strategic action that plays a major role in how it competes.
A)True
B)False
Q4) Reverse engineering is characteristic of
A)first movers.
B)fast-cycle markets.
C)market leaders.
D)price predators.
Q5) What are the advantages and disadvantages of being a first mover,second mover,and late mover?
Q6) (Refer to Case Scenario 2). Is Walmart a competitor or a customer of Plasco?
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Chapter 6: Corporate-Level Strategy
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Sample Questions
Q1) Successful unrelated diversification through restructuring is typically accomplished by
A)focusing on mature, low-technology businesses.
B)a "random walk" of good luck in picking firms to buy.
C)seeking out high technology firms in high-growth industries.
D)a top management team that is not constrained by pre-established ideas of how the firm's portfolio should be developed.
Q2) A company pursuing vertical integration can gain market power over its competitors through all of the following EXCEPT
A)improved adjustment to technological changes.
B)savings on operations costs.
C)improved product quality.
D)avoidance of market costs.
Q3) Related linked firms share more resources and assets between their businesses than do related constrained firms.
A)True
B)False
Q4) What are the five categories of businesses based on level of diversification?
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Chapter 7: Merger and Acquisition Strategies
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Sample Questions
Q1) ----------------may be necessary because acquisitions create a situation in which the newly formed form has duplicate organizational functions such as sales,manufacturing,distribution,and human resource management.
A)Management buyout
B)Leveraged buyout
C)Downsizing
D)Downscoping
Q2) Evidence suggests that acquisitions usually lead to favorable financial outcomes,especially for the acquiring firm.
A)True
B)False
Q3) How difficult is it for merger and acquisition strategies to create value and which firms benefit the most from M & A activity?
Q4) (Refer to Case Scenario 3). Barracuda's acquisitions have been driven by the need to increase market power and hence have been mostly horizontal and vertical acquisitions.
A)True
B)False
Q5) (Refer to Case Scenario 2). What risks does Raptec run in spinning off Axio?
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Chapter 8: International Strategy
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Sample Questions
Q1) A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company,but it is looking for growth opportunities. This company should primarily consider the option of A)licensing.
B)exporting.
C)a strategic alliance.
D)a greenfield venture.
Q2) ----------------is the set of costs associated with unfamiliar operating environments; economic,administrative and cultural differences; and the challenges of coordination over distances.
A)Transnational risk
B)Regionalization
C)Liability of foreignness
D)International risk
Q3) Because there are still several industrial and consumer markets in which only domestic firms compete,many firms do not have to be able to compete internationally.
A)True
B)False
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Chapter 9: Cooperative Strategy
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Sample Questions
Q1) For the purpose of diversification,a corporate-level cooperative strategy may be preferable to a merger or acquisition for all the following reasons EXCEPT
A)a host nation may forbid a merger or acquisition.
B)opportunistic behaviors are less likely.
C)cooperative strategies require fewer resources.
D)cooperative strategies allow greater flexibility in diversifying the firm's portfolio.
Q2) In a(n) ,two or more firms create a legally independent company to share some of their resources and
Capabilities to develop a competitive advantage.
A)equality-based strategic alliance
B)non-equity strategic alliance
C)joint venture
D)equity strategic alliance
Q3) Identify the three types of corporate-level cooperative strategies.
Q4) Identify the four types of business-level cooperative strategies and the advantages and disadvantages of each.
Q5) Describe the two strategic management approaches to managing alliances.
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Chapter 10: Corporate Governance
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Sample Questions
Q1) (Refer to Case Scenario 1). What are the advantages and disadvantages of paying the new manager primarily on new store sales growth?
Q2) In the United States,the primary goal of a firm is to maximize profits to provide a financial gain to shareholders.
A)True
B)False
Q3) What is corporate governance and how is it used to monitor and control managers' decisions?
Q4) Which of the following reasons would NOT explain the difficulty of determining appropriate executive compensation?
A)The decisions made by top-level managers are typically complex and nonroutine.
B)An executive's decisions often affect firm performance only over the long run.
C)A number of factors intervene between top-level management decisions and firm performance (e.g., unpredictable economic, social, or legal changes).
D)The compensation committee may not have comprehensive firm performance data.
Q5) (Refer to Case Scenario 2). What characteristics will you look for in appointing new board members?
Q6) (Refer to Case Scenario 1). What compensation structure would you recommend?
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Chapter 11: Organizational Structure and Controls
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Sample Questions
Q1) A private university is made up of various "schools," such as the School of Journalism,the School of Business,the School of Law,the School of Arts and Sciences,and so forth. The university is experiencing some financial problems,so the administration has decided to have each school of the university become a profit center. This scheme is somewhat parallel to the organizational structure.
A)network
B)strategic business unit multidivisional
C)functional
D)matrix
Q2) The______structure is best for implementing the related-constrained diversification strategy.
A)functional
B)competitive form of the multidivisional
C)SBU form of the multidivisional
D)cooperative form of the multidivisional
Q3) Companies and business units of large diversified firms using the cost leadership strategy should use strategic controls.
A)True
B)False
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Chapter 12: Strategic Leadership
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Sample Questions
Q1) What is a top management team,and how does it affect a firm's performance and its abilities to innovate and design and implement effective strategic changes?
Q2) Research shows that ________ is the most effective means of ensuring that employees comply with the firm's ethical requirements.
A) a written code of ethics
B) a statement in the firm's mission statement
C) a speech on ethics by the CEO of the company
D) a value-based culture
Q3) Organizational culture is a complex set of ideologies,symbols,and core values that are shared throughout the firm,but its development is so subtle and poorly understood that top managers cannot influence its content.
A)True
B)False
Q4) The firm's core ideology motivates the firm's employees through the company's heritage.
A)True
B)False
Q5) (Refer to Case Scenario 2). What culture did Mogens and Jack nurture in YTF?
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Chapter 13: Strategic Entrepreneurship
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Sample Questions
Q1) To be successful,an autonomous process for developing new products relies on
A)the diffusion of tacit knowledge.
B)the acquisition of innovative firms.
C)strategic alliances with other firms.
D)internal corporate venturing.
Q2) Innovation is the means by which the entrepreneur creates wealth.
A)True
B)False
Q3) In the implementation of internal innovations,formal and informal processes are best supported through organizational structures.
A)vertical
B)horizontal
C)functionally oriented
D)multidivisional
Q4) Joseph Schumpeter suggested that firms engage in three types of innovative activity when managing the innovation process: imitation,invention,and innovation.
A)True
B)False
Q5) (Refer to Case Scenario 1). What resources appear to be missing?
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