Strategic Management Review
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Course Introduction
Strategic Management is a comprehensive course that examines the formulation, implementation, and evaluation of organizational strategies designed to achieve long-term competitive advantage. Students will explore key concepts such as environmental scanning, strategy analysis, decision-making, and the alignment of resources with organizational goals. Emphasis is placed on understanding industry dynamics, internal and external factors influencing strategy, and the role of leadership in navigating change and innovation. Through case studies, analytical frameworks, and interactive discussions, students will develop the critical thinking and problem-solving skills necessary to craft and execute successful strategies in complex business environments.
Recommended Textbook
Strategic Management Theory and Cases An Integrated Approach 12th Edition by Charles
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Page 2
W. L.
Chapter 1: Strategic Leadership: Managing the
Strategy-Making Process for Competitive Advantage
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Sample Questions
Q1) General managers bear responsibility for the overall performance of the company or for one of its major self-contained subunits or divisions.
A)True
B)False
Answer: True
Q2) The mission of a company lays out some desired future state and articulates what the company would like to achieve.
A)True
B)False Answer: False
Q3) The profit growth of a company can be measured by the increase in net profit over time.
A)True
B)False Answer: True
Q4) The concepts vision and mission can be used interchangeably.
A)True
B)False
Answer: False
Page 3
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Chapter 2: External Analysis: The Identification of Opportunities and Threats
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Sample Questions
Q1) Starbucks and an independent local café are different in terms of their business techniques. They both sell coffee, and therefore belong to the same strategic group.
A)True
B)False
Answer: False
Q2) Strong brand loyalty and high customer switching costs are low barriers to entering an industry.
A)True
B)False
Answer: False
Q3) The threat from potential competitors is greatest in the _____ stage of the industry life cycle.
A) embryonic
B) growth
C) shakeout
D) maturity
E) decline
Answer: B
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Chapter 3: Internal Analysis: Resources and Competitive Advantage
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Sample Questions
Q1) Resources can be considered valuable if they enable a company to create a strong demand for its products or if it reduces the costs of producing its products.
A)True
B)False
Answer: True
Q2) Distinctive competencies are firm-specific strengths that allow a company to differentiate its products and achieve substantially lower costs than its rivals.
A)True
B)False
Answer: True
Q3) IBM's investment in mainframe computers, that proved disadvantageous when the market shifted to smaller personal computers, is an example of a prior strategic commitment.
A)True
B)False
Answer: True
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Chapter 4: Building Competitive Advantage Through Functional-Level Strategies
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Sample Questions
Q1) Which of the following is NOT a role played by infrastructure leadership in implementing reliability improvement methodologies?
A) Providing leadership and commitment quality
B) Finding ways to manage quality
C) Setting goals and creating incentives
D) Soliciting input from employees
E) Lengthening production runs
Q2) Managers should not become complacent about efficiency-based cost advantages because:
A) both learning effects and economics of scale go on forever.
B) the experience curve is likely to bottom out at some point.
C) cost advantages gained from experience effects are not affected by the development of new technologies.
D) unit costs keep reducing as output increases.
E) the experience curve steadily rises after a certain threshold is reached indicating an increase in unit costs.
Q3) Customer focus in a function of only the lower levels of an organization.
A)True
B)False
6
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Chapter 5: Business-Level Strategy
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Sample Questions
Q1) A segmentation strategy requires that a company:
A) standardize its products.
B) offer its products at low costs.
C) customize its products.
D) produce one basic offering.
E) attain high economies of scale by achieving a high volume of sales.
Q2) Which of the following is NOT a generic business-level strategy?
A) Broad differentiation strategy
B) Broad low-cost strategy
C) Focused low-cost strategy
D) Focused differentiation strategy
E) Focused innovation strategy
Q3) When a company recognizes that the needs of one market segment is not the same as another and accordingly customizes its product offerings, it is said to be pursuing:
A) stuck-in-the-middle strategy.
B) rapid-growth strategy.
C) differentiation strategy.
D) focus strategy.
E) low-cost strategy.
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Page 7
Chapter 6: Business-Level Strategy and the Industry Environment
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Sample Questions
Q1) Which of the following statements is true of declining industries?
A) Typically, not all segments of an industry decline at the same rate.
B) A declining industry should ideally use the leadership strategy when it does not have any strengths and the competition is low.
C) Divestment strategy is when a company in a declining industry tries to improve sales by improving product quality.
D) The greater the exit barriers of a declining industry, the lower the intensity of competition.
E) The intensity of competition lower in declining industries that sell commodity-like products.
Q2) By their choices of competitive actions and decisions about product attributes, managers can speed up or slow down the rate of progress of an industry through the stages of the industry life cycle.
A)True
B)False
Q3) Fragmented industries typically have high barriers to entry.
A)True
B)False
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Chapter 7: Strategy and Technology
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Sample Questions
Q1) Consumers will bear the costs of switching technologies if:
A) the benefits of adopting the new technology outweigh the costs of switching.
B) switching costs are substantial.
C) the new products are packaged attractively.
D) there is a lack of complementary products.
E) the new technology is advertised subtly.
Q2) An advantage of being a first mover is that:
A) the pioneering costs are minimal.
B) there are well-defined distribution channels.
C) there is no risk of building the wrong resources.
D) the focus is always on the mass market.
E) there is an opportunity to increase sales volume ahead of rivals.
Q3) What are technical standards, why are they important, and how are they established?
Q4) Technical standards are often set by cooperation among businesses, without government help.
A)True
B)False
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Chapter 8: Strategy in the Global Environment
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Sample Questions
Q1) Which of the following is not a factor of production?
A) Land
B) Labor
C) Raw materials
D) Competitive forces
E) Managerial sophistication
Q2) Global expansion:
A) is feasible only for non-technology based companies.
B) can enable companies to increase their profitability and grow their profits more rapidly.
C) has significantly decreased in the recent years as the industry barriers are now higher.
D) does not involve selling existing products to new markets in different countries.
E) is not feasible for service-based firms.
Q3) List and briefly describe each of the four basic global strategies.
Q4) A transnational strategy makes the most sense when demand for local responsiveness is minimal.
A)True
B)False
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Chapter 9: Corporate-Level Strategy: Horizontal Integration,
Integration, and Strategic Outsourcing
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Sample Questions
Q1) Competitive bidding makes suppliers reluctant to make investments that tie them closely to their trading partners.
A)True
B)False
Q2) Strategic alliances are:
A) short-term agreements between two companies to jointly develop new products.
B) short-term agreements between two companies to jointly market new products that benefit all companies involved in creating the product.
C) short-term partnerships between two companies.
D) long-term commitments between two companies to share research and development activities.
E) long-term agreements between two or more companies to jointly develop products that benefit all companies involved in the alliance.
Q3) Which of the following is not a benefit of vertical integration?
A) Facilitated investments in specialized assets
B) Enhanced product quality
C) Improved scheduling
D) Lowered cost structure
E) Strengthened differentiation advantage
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Chapter 10: Corporate-Level Strategy: Related and Unrelated Diversification
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Sample Questions
Q1) An advantage of unrelated diversification is that competencies can be shared and leveraged throughout the value chain activities.
A)True
B)False
Q2) In which of the following cases are bureaucratic costs likely to be lowest?
A) A vertically integrated company with five divisions that pursues full integration
B) A company with five divisions that pursues related diversification based on economies of scope
C) A company with five divisions that pursues related diversification based on transferring competencies
D) A company with five divisions that pursues unrelated diversification based on acquisitions and restructuring
E) A company with twenty divisions that pursues taper integration
Q3) An advantage of a joint venture is that it allows a company to quickly gain entry into a new industry where barriers are high.
A)True
B)False
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Page 12
Chapter 11: Corporate Performance, Governance, and Business Ethics
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Sample Questions
Q1) Jacob is a senior manager at Aries LLC. He has been earning significant bonuses in addition to his salary. He often misrepresents the financial information about the operations he handles, and he acquires more financial resources than he actually needs to run operations. Which of the following concepts is illustrated in this scenario?
A) Glass-ceiling effect
B) Self-dealing
C) Agency strategy
D) Takeover constraints
E) Stock options
Q2) In corporations, agency theory is used to explain the relationship between stockholders and corporate managers, and between upper-level managers and the lower-level managers they supervise.
A)True
B)False
Q3) Financial statements can be a tool of effective governance only if they provide consistent, detailed, and accurate information.
A)True
B)False
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Chapter 12: Implementing Strategy Through Organization
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Sample Questions
Q1) Which of the following advantages does a functional organizational structure offer a company?
A) Diversification of activities leading to greater productivity
B) Lesser communication problems
C) Reduction in manufacturing costs and increase in operational flexibility
D) Ease in gauging the contribution of products to overall profitability
E) Faster servicing of customers
Q2) PeopleFinder, a start-up social media network, is a decentralized organization. This means that the organization promotes flexibility and reduces bureaucratic costs; lower-level managers are authorized to make on-the-spot decisions.
A)True
B)False
Q3) Research finds that centralization of authority is never advantageous, not even in times of crisis.
A)True
B)False
Q4) Identify and discuss the three building blocks of organizational structure.
Q5) Explain the benefits of the multidivisional structure for managing a firm that competes in several industries.
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