Course Introduction
Strategic Management Study Guide
Questions
Strategic Management explores the concepts, frameworks, and tools organizations use to achieve and sustain competitive advantage. The course covers key topics such as industry analysis, internal resource and capability assessment, strategy formulation and implementation, and the evaluation of strategic choices in dynamic and global environments. Through case studies and real-world applications, students develop the ability to critically analyze complex business situations and recommend effective strategies for long-term organizational success.
Recommended Textbook
Strategic Management Concepts and Cases Competitiveness and Globalization 9th Edition by
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13 Chapters
1950 Verified Questions
1950 Flashcards
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Chapter 1: Strategic Management and Strategic Competitiveness
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) A business-level strategy describes
A) the businesses in which the company intends to compete.
B) all policies and procedures used in functional departments.
C) the firm's actions to exploit its competitive advantage over rivals.
D) a firm's resources, intent, and mission.
Answer: C
Q2) An organization's willingness to tolerate or encourage unethical behavior is a reflection of its core values.
A)True
B)False
Answer: True
Q3) A firm's mission
A) is a statement of a firm's business in which it intends to compete and the customers it intends to serve.
B) is an internally-focused affirmation of the organization's financial, social, and ethical goals.
C) is mainly intended to emotionally inspire employees and other stakeholders.
D) is developed by a firm before the firm develops its vision.
Answer: A
Page 3
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Chapter 2: The External Environment: Opportunities,
Threats, Industry Competition, and Competitor Analysis
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Sample Questions
Q1) When analysts develop feasible projections of future events and how quickly they will occur based on observed changes and trends, they are engaged in A) scanning.
B) monitoring.
C) forecasting.
D) assessing.
Answer: C
Q2) The use of the Internet by Netflix to collect data on customer preferences is an example of A) assessing.
B) monitoring.
C) forecasting.
D) scanning.
Answer: D
Q3) The industry environment directly influences the firm and its competitive actions and responses.
A)True
B)False
Answer: True
Page 4
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153 Verified Questions
153 Flashcards
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Sample Questions
Q1) When firms lay off employees they are
A) treating employees as an intangible resource.
B) recognizing the reduced value of labor in the value chain.
C) eroding the organization's knowledge resources.
D) temporarily sacrificing a tangible asset that is easily replace.
Answer: C
Q2) Ultimately, the cause of all core capabilities becoming core rigidities is
A) changes in the external and internal environment.
B) inertia and employee resistance to change.
C) strategic myopia and managerial inflexibility.
D) failure to accurately analyze the value chain.
Answer: C
Q3) Competitive advantage typically comes from
A) individual resources.
B) one unique resource.
C) several outstanding resources used independently.
D) the unique bundling of several resources.
Answer: D
Page 5
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Chapter 4: Business Level Strategy
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140 Flashcards
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Sample Questions
Q1) A firm's core strategy is its ____ strategy.
A) corporate
B) business
C) pricing
D) international
Q2) According to the Chapter 4 Opening Case, Acer's strategy of running a business with lower costs is good when markets are not growing (as occurred during the global recession) but even better when markets are growing.
A)True
B)False
Q3) TQM is most helpful to firms following the ____ business strategy.
A) cost-leadership
B) integrated cost-leadership/differentiation
C) focused cost-leadership
D) focused differentiation
Q4) To position itself differently from competitors, a firm must decide to either perform activities differently or to perform different activities.
A)True
B)False
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Chapter 5: Competitive Rivalry and Competitive Dynamics
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Sample Questions
Q1) Market commonality is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each.
A)True
B)False
Q2) A competitive action can be one of two types, either ____ or ____.
A) aggressive, defensive
B) quality-based, cost-based
C) strategic, tactical
D) market-based, resource-based
Q3) The satellite dish at Faye's weekend home has malfunctioned. When she calls to have the dish repaired, the service representative tells her that the dish is obsolete and that parts for it are no longer made. Faye must replace the old dish with a new dish. This is an example of lack of firm loyalty to a product in a fast-cycle market.
A)True
B)False
Q4) A lack of awareness leads to a reduction in competition.
A)True
B)False
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Chapter 6: Corporate-Level Strategy
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Sample Questions
Q1) Synergy exists when the value created by business units working together exceeds the value that those same units create working independently.
A)True
B)False
Q2) Contract manufacturers who manage their customers' entire product line, and offer services ranging from inventory management to delivery and after-sales services are prime examples of vertical integration.
A)True
B)False
Q3) 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.
Q4) Differentiate between corporate-level and business-level strategies and give examples of each.
Q5) What are the managerial motives to diversify?
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Chapter 7: Merger and Acquisition Strategies
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162 Verified Questions
162 Flashcards
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Sample Questions
Q1) (Refer to the above Case Scenario ) Prior to the spin-off, how would you go about identifying the respective boundaries of the Raptec and Axio businesses?
Q2) The outcome of downsizing, downscoping, and leveraged buyouts is higher performance.
A)True
B)False
Q3) Due diligence is performed by investment banking firms because of laws protecting shareholders during acquisitions.
A)True
B)False
Q4) All of the following statements are correct EXCEPT
A) immediately after the announcement of a planned acquisition, the stock price of the majority of acquiring firms declines.
B) shareholders of acquired firms often earn above-average returns from an acquisition.
C) the majority of acquisitions increase long-term value for the acquiring firm.
D) shareholders of acquiring firms typically earn returns from the transaction that are close to zero.
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9
Chapter 8: International Strategy
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Sample Questions
Q1) Most R&D intensive industries are international because
A) of the need to make use of scientific talent in many nations.
B) large markets are necessary for earning above-average returns on investments.
C) of mandatory requirements by emerging economies that firms take part in joint ventures or direct investment in the country in order to sell their products in that country.
D) intellectual property is copied so rapidly that firms must move products into the international market immediately.
Q2) The increased pressures for global integration of operations have been driven mostly by
A) new low cost entrants.
B) universal product demand.
C) increased levels of joint ventures.
D) the rise of governmental regulation.
Q3) An important aspect of doing business internationally is that firms develop relationships with suppliers, customers, and partners and learn from these relationships as SAIC did in its partnerships with GM and Volkswagen.
A)True
B)False
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10
Chapter 9: Cooperative Strategy
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Sample Questions
Q1) Greentech, Inc., is a bioengineering firm specializing in food crops. It is considering a cooperative alliance with an Asian agribusiness firm, AsiaFoods, to jointly produce improved crops for the Asian market. The risks that Greentech should consider before entering this alliance include all of the following EXCEPT:
A) Has AsiaFoods accurately represented its competencies?
B) Will AsiaFoods make alliance-specific investments?
C) Can Greentech expect opportunistic behavior from AsiaFoods?
D) Will Greentech be able to use a cost-minimization management strategy in the AsiaFoods alliance?
Q2) Meredith Inc. is a manufacturer of art supplies. The company has announced plans to enter into an equity strategic alliance with JaZz Paper to develop a line of specialty papers for use with a line of specialty paints Meredith manufactures. Which of the following would be the accurate interpretation of this announcement?
A) Meredith will own a majority equity stake in the new venture.
B) JaZz will own a majority equity stake in the new venture.
C) Meredith or JaZz will own an equal equity stake in the new venture.
D) Either Meredith or JaZz will own a majority equity stake, but we do not know which one based on the announcement.
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Chapter 10: Corporate Governance
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Sample Questions
Q1) Large German firms must include employees, union members, and shareholders in the formal governance structure.
A)True
B)False
Q2) Generous severance packages make executives less resistant to the market for corporate control.
A)True
B)False
Q3) The market for corporate control serves as a means of governance when
A) the firm is overpriced in the market.
B) internal controls have failed.
C) the corporation has greatly exceeded performance expectations.
D) the top management team's interests and the owners' interests are aligned.
Q4) As ownership of the corporation is diffused, shareholders' ability to monitor managerial decisions
A) increases.
B) decreases.
C) remains constant.
D) is eliminated.
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Chapter 11: Organizational Structure and Controls
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Sample Questions
Q1) Financial controls are most important in the ____ strategy.
A) single business
B) related constrained
C) unrelated diversified
D) vertical complementary
Q2) Structural stability affects the organization's ability to:
A) resist organizational inertia.
B) cope with uncertainty about cause-and-effect relationships in the global economy.
C) develop new competitive advantages.
D) predictably manage its daily work routines.
Q3) An SBU structure consists of at least three levels: the top level, the corporate headquarters; the next level, the strategic business units (SBUs); and the final level, SBU divisions.
A)True
B)False
Q4) According to the chapter Opening Case, to manage its expansion, Cisco will likely change its structure to a corporate M-form.
A)True
B)False
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Chapter 12: Strategic Leadership
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Sample Questions
Q1) Transformational leadership is the most effective strategic leadership style.
A)True
B)False
Q2) The CEO of YorkMark, Inc., has an exceptional amount of power in the organization. It is likely the board of directors is composed of sympathetic outside members and insiders who report to the CEO.
A)True
B)False
Q3) The goal of investing in human capital is to
A) increase the number of employees in the firm.
B) reduce organizational slack.
C) maximize current productivity per employee.
D) develop a workforce capable of continuous learning.
Q4) The effective development and management of the firm's ____ may be its only sustainable competitive advantage.
A) capital base
B) human capital
C) technology
D) organizational culture
Q5) Define human capital and its importance to the firm's success.
Page 14
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Chapter 13: Strategic Entrepreneurship
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147 Verified Questions
147 Flashcards
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Sample Questions
Q1) Induced strategic behavior is a process that fosters product innovations that A) are likely to change a firm's strategic intent and mission.
B) will lead to greater financial returns.
C) are aligned closely with current strategy and structure.
D) will come to market in a short period of time.
Q2) Since it replaces existing products and methods of production, entrepreneurship is a process of
A) harnessing the human potential.
B) creative destruction.
C) creation of opportunity.
D) exploitation of innovation.
Q3) The joint venture between Intel and Nokia that integrates functions of the smartphones and personal computers demonstrates that the best innovations are developed through an internal process.
A)True
B)False
Q4) (Refer to the above Case Scenario ) What resources do Wim and Cathy bring to their venture?
Q5) Discuss the differences between autonomous strategic behavior and induced strategic behavior.
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