Strategic Management Final Test Solutions - 1670 Verified Questions
Strategic Management
Final Test Solutions
Course Introduction
Strategic Management explores the processes by which organizations formulate, implement, and evaluate cross-functional decisions that enable them to achieve long-term objectives and maintain competitive advantage. The course examines key frameworks and concepts such as SWOT analysis, Porters Five Forces, resource-based view, and balanced scorecard, and applies these tools to real-world business cases. Students will learn to analyze internal and external business environments, assess strategic alternatives, and understand the roles of leadership, innovation, and stakeholder management in executing strategic plans. Emphasis is placed on critical thinking, problem-solving, and effective communication in the strategic decision-making process.
Recommended Textbook
Strategic Management Concepts and Cases Competitiveness 12th Edition by
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13 Chapters
1670 Verified Questions
1670 Flashcards
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Page 2
Michael A. Hitt
Chapter 1: Strategic Management and Strategic Competitiveness
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133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/3850
Sample Questions
Q1) According to Hitt, the primary drivers of hypercompetition are:
A) rising global socio-economic instability and increased inflation.
B) the emergence of a global economy and rapid technological change.
C) increased global competition and decreased tariffs.
D) increased availability of capital and increased competition.
Answer: B
Q2) A competitive advantage:
A) can be permanent if the firm has successfully implemented the strategic management process.
B) entails reducing investors' risk to near zero.
C) can be identified when competitors are unable to duplicate or find it too costly to try to imitate.
D) exists when competing firms are unable to find investors.
Answer: C
Q3) If a firm is dependent on a specific stakeholder group, that group has less influence on the firm's strategic decision making.
A)True
B)False
Answer: False
Page 3
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Chapter 2: The External Environment: Opportunities,
Threats, Industry Competition, and Competitor Analysis
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138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/3851
Sample Questions
Q1) The Department of Defense buys aircraft from U.S. companies for national security reasons. This is an example of a ______ barrier to entry.
A) cost disadvantage independent of scale
B) government policy
C) capital requirements
D) product differentiation
Answer: B
Q2) Age structure, geographic distribution, income distribution, interest rates, and process innovations are all elements of concern when studying the demographic segment of the general environment.
A)True
B)False
Answer: False
Q3) All of the following are ethical sources of data for external analysis EXCEPT:
A) trade shows.
B) a competitor's annual reports.
C) a competitor's help-wanted advertisements.
D) a competitor's confidential memos.
Answer: D
Page 4
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Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/3852
Sample Questions
Q1) Charmed by Claire is a successful retail boutique that sells women's accessories. Claire, the owner/manager, knows that women have many options when buying jewelry. When customers enter her store they are greeted by name and given prompt, friendly attention. Customers return to the store because the service is excellent. Claire says the most important decision she makes is hiring the best staff because customer service is vital to her business. Customer service is:
A) a human resource.
B) an organizational resource.
C) a rare resource.
D) a core competency.
Answer: D
Q2) Costly-to-imitate capabilities can emerge for all of the following reasons EXCEPT: A) lack of scientific transference.
B) social complexity.
C) unique historical conditions.
D) causal ambiguity.
Answer: A
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Chapter 4: Business-Level Strategy
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/3853
Sample Questions
Q1) A flexible manufacturing system is a computer-controlled process used to produce a variety of products in moderate, flexible quantities with minimal manual intervention.
A)True
B)False
Q2) The Monteleone Company pays large fees to a highly recognizable, prestigious individual to be the spokesperson for the company's products, luxury private jets. Monteleone is probably following the:
A) focused cost leadership strategy.
B) focused differentiation strategy.
C) integrated cost leadership/differentiation strategy.
D) total quality strategy.
Q3) Describe the advantages of integrating cost leadership and differentiation strategies.
Q4) The best of the generic business strategies is the integrated cost leadership/differentiation strategy.
A)True
B)False
Q5) Describe how a differentiation strategy can help a firm earn above-average returns.
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Chapter 5: Competitive Rivalry and Competitive Dynamics
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) Walt Disney's focus on ____ is typical of a slow-cycle market.
A) innovation
B) total quality
C) proprietary rights
D) economies of scale
Q2) Which of the following is an example of a tactical action?
A) Walmart's launch of Sam's Club stores
B) Continental Airlines exit from a hub airport in Denver
C) Netflix beginning to offer music in addition to movies
D) Dell's launch of a new line of high performance, custom-made PCs
Q3) Lawsuits over patent and copyright infringements are more common and intense in:
A) fast-cycle markets because the market is innovation-driven.
B) standard-cycle markets because the firm's brand name is such an important competitive advantage.
C) slow-cycle markets, because of the ability to shelter the company from imitation of its competitive advantage.
D) standard-cycle markets because innovation is rare, and so gives the innovating firm a significant competitive advantage.
Q4) Define awareness, motivation, and ability in reference to competitive behavior.
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Chapter 6: Corporate-Level Strategy
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140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/3855
Sample Questions
Q1) The value of the assets of a firm using a diversification strategy to create both operational and corporate relatedness tend to be:
A) discounted by investors.
B) inflated by investors.
C) completely ignored by investors.
D) highly valued by investors.
Q2) Companies creating financial economies through restructuring typically focus on high-technology businesses primarily because these firms are dependent on human-resources.
A)True
B)False
Q3) Procter & Gamble (P&G) has a paper towel and baby diaper business that both use paper products. This is an example of value created through the sharing of activities. A)True
B)False
Q4) Describe the primary reasons a firm pursues increased diversification.
Q5) Low firm performance is associated with increased diversification. A)True B)False
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Chapter 7: Merger and Acquisition Strategies
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/3856
Sample Questions
Q1) Research shows that about ____ percent of mergers and acquisitions are successful.
A) 20
B) 40
C) 60
D) 80
Q2) A friendly acquisition:
A) raises the price that has to be paid for a firm.
B) enhances the complementarity of the two firms' assets.
C) facilitates the integration of the acquired and acquiring firms.
D) allows joint ventures to be developed.
Q3) During the recent financial crisis, M&A activity ______, whereas in 2011, M&A activity ______.
A) declined; increased
B) declined; declined
C) increased; increased
D) increased; declined
Q4) Identify and explain the seven reasons firms engage in an acquisition strategy.
Q5) What are the attributes of a successful acquisition program?
Q6) What are the results of the three forms of restructuring?
Page 9
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Chapter 8: International Strategy
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129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/3857
Sample Questions
Q1) Raymond Vernon states that the classic rationale for international diversification is to:
A) pre-emptively dominate world markets before foreign companies can establish dominance.
B) avoid domestic governmental regulation.
C) extend the product's life cycle.
D) avoid international governmental regulation.
Q2) In Porter's model, if a country has both ________ and __________ production factors, it is likely to serve an industry well by spawning strong home-country competitors that can also be successful global competitors.
A) basic; advanced
B) advanced; generalized
C) basic; generalized
D) advanced; specialized
Q3) South Korea's success in international markets is primarily a result of its abundant natural resources.
A)True
B)False
Q4) Discuss the effect of international diversification on a firm's returns.
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Chapter 9: Cooperative Strategy
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123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/3858
Sample Questions
Q1) Japanese telecom NTT DoCoMo Inc. and Chinese Internet search operator Baidu Inc. established an alliance to distribute games and other mobile-phone content. Baidu will own 80 percent of this collaboration with DoCoMo holding the remaining 20 percent. This collaborative arrangement is an example of a(n):
A) joint venture.
B) network strategy.
C) equity strategic alliance.
D) nonequity strategic alliance.
Q2) When a firm is in the early stages of geographic diversification, cross-border alliances may be a good learning step before other forms of international expansion.
A)True
B)False
Q3) McDonald's, Hilton International, and Subway all heavily rely on the ____ strategy. A) transnational
B) network cooperative
C) cross-border alliances
D) franchising cooperative
Q4) Identify the three types of corporate-level cooperative strategies.
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Chapter 10: Corporate Governance
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142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/3859
Sample Questions
Q1) The Dodd-Frank Wall Street Reform and Consumer Protection Act contains provisions related to consumer protection, systemic risk oversight, capital requirements for banks, but not for executive compensation.
A)True
B)False
Q2) Compared to managers, shareholders prefer:
A) safer strategies with greater diversification for the firm.
B) riskier strategies with more focused diversification for the firm.
C) safer strategies with more focused diversification for the firm.
D) riskier strategies with greater diversification for the firm.
Q3) Research suggests that institutional activism may not have a strong direct effect on firm performance but may indirectly influence the targeted firm's strategic decisions, including those concerned with international diversification and innovation.
A)True
B)False
Q4) In general, when governance mechanisms are strong, managers have free rein in their decisions.
A)True
B)False
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Chapter 11: Organizational Structure and Controls
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136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/3860
Sample Questions
Q1) Which of the following is NOT associated with an organizational structure that supports a cost leadership strategy?
A) Centralization
B) Specialization
C) Formalization
D) Integration
Q2) ____ is the degree to which decision-making authority is retained at higher managerial levels.
A) Formalization
B) Centralization
C) Specialization
D) Unification
Q3) Agatha Adams founded Insurance Specialists to process medical claims for physicians' practices. She plans to compete on the basis of cost, offering the lowest processing cost per claim in her market area. Ms. Adams' company should:
A) be the strategic center firm in a network structure.
B) have a specialized multidivisional structure.
C) develop alliances with firms with complementary competencies.
D) have a highly centralized, functional structure.
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Page 13
Chapter 12: Strategic Leadership
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118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/3861
Sample Questions
Q1) Which of the following is NOT one of the five dimensions thought to characterize an employee's entrepreneurial mind-set?
A) Autonomy
B) Reactivity
C) Risk taking
D) Innovativeness
Q2) Determining the strategic direction of a firm involves:
A) implementation of a balanced scorecard.
B) developing an entrepreneurial mind set.
C) specifying the vision and the strategy to achieve that vision over time.
D) exploiting and maintaining core competencies.
Q3) The ability to attract and manage ____ may be the most important skill a strategic leader must have.
A) human capital
B) financial resources
C) responses to competitors' actions
D) investment strategies
Q4) The balanced scorecard focuses on both financial and non-financial controls.
A)True
B)False
Page 14
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Chapter 13: Strategic Entrepreneurship
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/3862
Sample Questions
Q1) The essence of entrepreneurship is to capture most of the existing markets from less aggressive and innovative competitors.
A)True
B)False
Q2) ____ exist(s) when there is a need in the market that can be satisfied by new goods or services.
A) Potentiality
B) Market readiness
C) Entrepreneurial opportunities
D) Critical core competencies
Q3) Invention is defined as the adoption of a similar innovation by different firms.
A)True
B)False
Q4) Entrepreneurial opportunities are conditions in which new goods or services can satisfy a need in the market.
A)True
B)False
Q5) Discuss the benefits and risks of acquiring another firm to gain access to innovations.
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