Strategic Management Study Guide Questions
Course Introduction
Strategic Management is a comprehensive course that examines the formulation, implementation, and evaluation of organizational strategies to achieve long-term objectives and maintain a competitive advantage. Students will explore frameworks and analytical tools for assessing internal and external environments, understanding industry dynamics, and making informed strategic decisions. Through case studies and real-world applications, the course emphasizes critical thinking, leadership, and ethical considerations in navigating complex business challenges. By the end of the course, students will be equipped to analyze strategic issues and develop actionable strategies in diverse organizational contexts.
Recommended Textbook
Strategic Management 6th Edition by Graham Hubbard
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14 Chapters
557 Verified Questions
557 Flashcards
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Page 2
Chapter 1: What Is Strategy
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Sample Questions
Q1) One view to explain why strategy might be different in countries with smaller economies is that separate sets of values and rules for different countries or geographic regions are simply due to each being at a different stage of transition to Western capitalism.
A)True
B)False
Answer: True
Q2) Differences between traditional economics and strategy do NOT include an assumption that:
A)market equilibrium will be reached through the pricing mechanism
B)all companies have unique information
C)transaction costs are zero
D)there are many competitors in most markets
Answer: B
Q3) Sustainability is defined as development that meets the needs of current shareholders without compromising the ability to meet their needs in the future.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Analysing Business Strategy: Creating Value
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Sample Questions
Q1) The value proposition rests on the requirement that:
A)the company can charge what it likes for its products
B)the customer is 'price insensitive' to the company's offering
C)the company's employees have their own prestige invested in its processes
D)the company can supply what the customers want at a price they will pay
Answer: D
Q2) Strategic analysis is not concerned with the current or existing business strategy.
A)True
B)False
Answer: False
Q3) The function(s)of key stakeholders is/are to:
A)constitute the effective corporate governance of the company
B)influence the major decisions the company will make
C)determine the current and future strategy of the company
D)all of the above
Answer: D
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Chapter 3: Analysing the External Environment
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Sample Questions
Q1) Industry analysis aims to answer the question:
A)What are the forces within an industry that determine its size?
B)Based on these forces,what is the current and likely future number of firms in the industry?
C)How are the forces changing and expected to change,over time?
D)How will those changes affect the future size of the industry?
Answer: C
Q2) In an industry analysis in the public sector it is NOT relevant to ask:
A)How does this influence group affect our organisation?
B)Why does this influence group affect our organisation?
C)When will we feel the affect of this influence group on our organisation?
D)What gives this influence group power to affect our organisation?
Answer: C
Q3) Porter's 'five forces' do NOT include:
A)threat of new entrants
B)threat of substitutes
C)buyer power
D)threat of complementary products
Answer: D
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Chapter 4: Analysing the External Environment
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Sample Questions
Q1) Hauschild et al.found that successful knowledge management practice included:
A)rewarding employees for creating a store of private knowledge
B)setting easily achievable goals to encourage incremental improvement
C)tying incentives to goals that could only be achieved through intense personal effort
D)updating databases regularly
Q2) One of the limitations of functional analysis is that it follows conventional thinking and is likely to uncover only strategic capabilities.
A)True
B)False
Q3) Leonard suggested that one of the reasons why core rigidities are allowed to develop is:
A)attacking core rigidities attacks the future economic viability of the organisation
B)organisational routines easily become outmoded
C)attacking current strategic capabilities attacks the current power structure
D)habits arise from the cultural responsiveness of the workforce
Q4) How does the emergence of sustainability as a macro-environment issue affect the analysis of organisational capabilities?
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Chapter 5: Measuring Strategic Organisation Performance
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37 Flashcards
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Sample Questions
Q1) Total shareholder return is calculated as the ___ in the share price plus the ___ divided by the ___:
A) change in share price,dividends paid,closing share price
B) increase in total equity,retained earnings,opening share price
C) increase in dividends,taxation paid,return on equity
D)increase in share price,dividends paid,initial share price
Q2) Accounting-based information is historical and may not be a good guide to future performance.
A)True
B)False
Q3) The common factors that all the 'success' studies did NOT include were:
A)all exhibit financial success
B)internal process and strategy implementation are crucial
C)a focus on people,products and performance
D)a focus on a clear strategy that is consistent over time
Q4) The 'performance measurement cube' extends the balanced scorecard approach.
A)True
B)False
Q5) Explain the differences between the 'shareholder and stakeholder value approaches' to measuring strategic performance.
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Chapter 6: GAP Analysis and Business-Level Strategic Options
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Sample Questions
Q1) An important aspect of assessing the performance of the business strategy is to formally identify the expectations from the shareholders.
A)True
B)False
Q2) Porter's original three generic strategies were:
A)desegregation,focus,high quality
B)disaggregation,forecast,low quality
C)differentiation,focus,low cost
D)disaffection,focus,high cost
Q3) Porter and Kramer suggested four reasons why organisations should address CSR.Which of the following was NOT mentioned by them?
A)Moral obligation
B)The necessity to maintain a licence to operate
C)Organisation's reputation
D)Pressures from customers
Q4) Describe how to build a well-defined business model.
Q5) 'Gap analysis is useless because it only identifies yesterday's "gaps" and tells us nothing about where tomorrow's "gaps" will occur.' Is this a fair criticism? Provide reasons.
Page 8
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Chapter 7: Strategic Decision-Making
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Sample Questions
Q1) A wide variety of conceptual approaches for decision-making are being developed.Discuss what some of them are and what they have in common.
Q2) A dialectic enquiry is not suitable for decisions of high risk.
A)True
B)False
Q3) In making strategic choices,the most attractive options should always be pursued.
A)True
B)False
Q4) Hamel argues that the hierarchy of decision-making levels,from most to least powerful,is:
A)rational decision-making,mental models,political decision-making
B)political decision-making,rational decision-making,mental models
C)mental models,political decision-making,rational decision-making
D)political decision-making,mental models,rational decision-making
Q5) One of the positive aspects of political decision-making is that it:
A)encourages more outcomes to be explored
B)enables decision makers to resist pressure from key stakeholders
C)both of the above
D)none of the above
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Chapter 8: Dynamic Competitive Strategy
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Sample Questions
Q1) Innovative organisations accept,understand and preserve the rules of the game.
A)True
B)False
Q2) D'Aveni has argued that the situation of hypercompetition is best addressed through short-term and temporary advantage.
A)True
B)False
Q3) Define and explain D'Aveni's 'hypercompetition' concept.What are the major competitive arenas for it to occur?
Q4) In D'Aveni's model of stronghold competition,entry barriers can be built by:
A)customer restraint and local rules
B)customer loyalty and familiarity
C)customer protection and local rules
D)customer power and increased advertising
Q5) Game theory is a complete and integrated theory of competitive strategy.
A)True
B)False
Q6) Consider the relevance of game theory in understanding business strategy.
Q7) Describe the PARTS model set forth by Nalebuff and Brandenburger.
Page 10
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Chapter 9: Corporatemulti-Business Strategy
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Sample Questions
Q1) The GE business strength-industry attractiveness nine-cell matrix is a technique for classifying businesses into a three horizons portfolio of strategy of corporations.
A)True
B)False
Q2) According to Miller:
A)more related corporations perform better
B)more diversified corporations perform better
C)moderately related corporations perform better
D)more related corporations perform poorly
Q3) Collis and Montgomery's five implementation factors do NOT include:
A)nature of the capabilities to be reallocated
B)scope of the businesses
C)type of coordinating mechanisms
D)control systems and head office size
Q4) Explain why,if businesses are interlinked,the coordination costs are a concern.
Q5) What type of evidence indicates a capability-based strategy for success in diversification and which researchers have been key investigators in this area?
Q6) What are the possible reasons for a single business wanting to diversify?
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Chapter 10: Acquisitions and Alliances
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Sample Questions
Q1) Explain some of the characteristics researchers found were associated with successful acquisitions.
Q2) Joint venture is NOT formed to:
A)gain benefits over other partners
B)allow a firm to achieve economies of scale
C)allow a firm to access to resources
D)provide a firm with joint research and development opportunities
Q3) Ownership of 51% of shares gives same level of control as 100% ownership.
A)True
B)False
Q4) Leveraged buyout is a(n)___ of an organisation using a large percentage of debt to fund the ___.
A)merger,acquisition
B)acquisition,acquisition
C)acquisition,merger
D)merger,merger
Q5) It is essential to acquire 50.1% of the shares to acquire another organisation.
A)True
B)False
Q6) Explain the differences between absorption and preservation acquisitions.
Page 12
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Chapter 11: International Strategy
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Sample
Questions
Q1) An excellent set of production and sourcing decisions that firms confront would include the following except:
A)from where should the firm supply the target market
B) should the firm produce in one plant or many,related or autonomous
C) where should research and development be located
D)what sort of marketing mix should be used
Q2) A global strategy:
A)assumes a high need for customer responsiveness and a low need for coordination
B)focuses on different means to achieve the best cost and quality positions
C)is assessed first at the market level and then at the local product level
D)operates as a series of local hierarchies that answer to a global partnership
Q3) Choose the term that best completes this sentence: The changing global political situation in relation to climate change and the implications for business make _____________ difficult.
A)marketing functions
B)daily production functions
C)human resource functions
D)long-term planning
Q4) Describe the four alternative approaches used to manage worldwide operation.
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Chapter 12: Capabilities, Systems and Structure
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Sample Questions
Q1) Is outsourcing an ethical practice? Discuss.
Q2) Hubbard et al.quote a famous saying to summarise the key issue of information systems as:
A)if it isn't measured,it doesn't count
B)if it doesn't count,it isn't measured
C)if it ain't broke,don't fix it
D)if it can't be measured,it isn't counted
Q3) Simons argued that organisations need four types of control systems:
A)input systems,boundary systems,diagnostic control systems,interactive command systems
B)interactive control systems,belief systems,boundary riders,diagnostic control systems
C)belief systems,diagnostic control systems,boundary layers,interactive control systems
D)boundary systems,diagnostic control systems,interactive control systems,belief systems
Q4) Information systems determine what the organisation is told about what is happening.
A)True
B)False
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Chapter 13: Leadership, People and Culture
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Sample Questions
Q1) Hubbard,Rice and Galvin suggest that there are various types of boards,including:
A)stakeholder control,managerial control,normative control,control by exception,strategic control,review and approve
B)stockholder control,positive control,tactical control,control by exception
C)analysis of variances,bottom-line driven,top-down approval,normally controlled,normative
D)advise and consent control,managerial control,objective control,culturally sensitive,financial control
Q2) The UK Cadbury report on the role of directors recommended that roles of the board chair and CEO should be merged.
A)True
B)False
Q3) Cognition theory assumes that cognition represents the world as the person sees it and that action is preceded by understanding.
A)True
B)False
Q4) Assess how 'top management teams' can function effectively.
Q5) 'Leaders are born,not made.' Discuss the validity of this statement.
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Chapter 14: Change Management
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Sample Questions
Q1) Quinn developed a model of ___ ___ to explain the practical steps involved in introducing change:
A)logical incrementalism
B)systematic progression
C)random assessment
D)logical progression
Q2) Explain punctuated equilibrium change and what the model suggests regarding change in industries.
Q3) A _________ change management style is appropriate where management has a draft plan that can provide a format for discussion to add value.
A)directive
B)collabrative
C)consultative
D)competitive
Q4) Schein's argument for transformational change is described as:
A)unfreeze/change/refreeze
B)thaw/melt/solidify
C)warm/expand/contract
D)imagine/depict/realise
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