Strategic Management Test
Bank
Course Introduction
Strategic Management is a comprehensive course designed to equip students with the analytical tools and conceptual frameworks necessary for formulating, implementing, and evaluating effective business strategies. Emphasizing real-world application, the course explores topics such as industry and competitive analysis, internal firm resources, corporate governance, and strategic leadership. Students will engage in case studies and simulations, developing skills to identify opportunities, assess risks, and create sustainable value in dynamic organizational environments.
Recommended Textbook
Crafting and Executing Strategy Concepts and Cases 21st Edition by Thompson
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12 Chapters
1434 Verified Questions
1434 Flashcards
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2
Chapter 1: What Is Strategy and Why Is It Important
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) Which of the following questions ought to be used to distinguish a winning strategy from a so-so or flawed strategy?
A) Does the strategy contain a sufficient number of emergent and/or reactive elements?
B) Is the company putting too little emphasis on growth and profitability and too much emphasis on behaving in an ethical and socially responsible manner?
C) Is the strategy built on a company's weakness or does it require resources that are deficient in the company?
D) Is the strategy well matched to the company's situation, helping the company achieve a sustainable competitive advantage, and resulting in better company performance?
E) Does the strategy strike a good balance between maximizing shareholder wealth and maximizing customer satisfaction?
Answer: D
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3
Chapter 2: Leading the Process of Crafting and Executing Strategy
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116 Verified Questions
116 Flashcards
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Sample Questions
Q1) Perhaps the most reliable way for a company to improve its financial performance over time is to
A) put 100 percent emphasis on the achievement of its short-term and long-term financial objectives.
B) recognize that the achievement of strategic objectives signals that the company is well positioned to sustain or improve its performance.
C) substitute financial intent for strategic intent and judiciously concentrate on the mission of making a profit.
D) not allocate any resources to the achievement of strategic objectives until it is very clear that the company can meet or beat its stretch financial performance targets.
E) avoid use of the balanced-scorecard philosophy since achievement of financial performance targets is obviously more important than the achievement of strategic performance targets.
Answer: B
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4
Chapter 3: Evaluating a Companys External Environment
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137 Verified Questions
137 Flashcards
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Sample Questions
Q1) A competitive environment where there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers
A) is competitively unattractive from the standpoint of earning good profits.
B) offers little ability to build a sustainable competitive advantage.
C) is highly conducive to achieving strong product differentiation and high customer loyalty to the company's brand.
D) offers moderate to good prospects for making a reasonable profit and building a sustainable competitive advantage.
E) requires that industry members have a strongly differentiated product offering in order to be profitable.
Answer: A
Q2) The extent to which firms are meeting objectives suggests they
A) are likely to prosper in the future.
B) are likely to continue their present strategy with only minor fine-tuning.
C) are virtually certain to make fresh strategic moves.
D) recognize "status quo" as the best course of action to adopt.
E) realize refocusing will ensure competitive gains.
Answer: B
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Page 5
Chapter 4: Evaluating a Companys Resources and Competitive Position
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127 Verified Questions
127 Flashcards
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Sample Questions
Q1) Identifying the primary and secondary activities that comprise a company's value chain
A) indicates whether a company's resource strengths will ultimately translate into greater value for shareholders.
B) reveals whether a company's resource strengths are well-matched to the industry's key success factors.
C) is the first step in understanding a company's cost structure (since each activity in the value chain gives rise to costs).
D) is called benchmarking.
E) is called resource value analysis.
Q2) Draw a typical company value chain and briefly explain why the proficiency with which a firm performs the activities comprising its value chain matters.
Q3) What are the four tests that should be used to measure the competitive power of a company's resource strengths?
Q4) What is meant by the term "best practices"? Why does it matter whether a company utilizes "best practices" in performing the activities comprising its value chain?
Q5) Why do a company's core competencies matter in crafting strategy?
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Chapter 5: The Five Generic Competitive Strategies: Which
One to Employ
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) What market conditions and circumstances make a low-cost provider strategy attractive? What are the pitfalls in pursuing a low-cost provider strategy? What can go wrong?
Q2) What are the pitfalls to be avoided in pursuing a broad differentiation strategy?
Q3) Which of the following is NOT an action that a company should take to perform value chain activities more cost-effectively?
A) striving to capture all available economies of scale and taking advantage of experience and learning-curve effects
B) trying to operate facilities at full capacity
C) adopting labor-saving operating methods
D) improving supply chain efficiency
E) over-differentiating so that product features exceed the needs of most buyers
Q4) A mobile manufacturer decides to reduce the price of its latest line of smart phones, which are not the cheapest but have features that are popular among most users. Which strategy is the manufacturer using?
Q5) Explain how the keys to sustaining a broad differentiation strategy differ from the keys to sustaining a best-cost producer strategy.
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Chapter 6: Supplementing the Chosen Competitive
Strategy: Other Important Business Strategy Choices
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) Mergers and acquisitions are often driven by such strategic objectives as
A) expanding a company's geographic coverage or extending its business into new product categories.
B) reducing the number of industry key success factors.
C) reducing the number of strategic groups in the industry.
D) facilitating a company's shift from a low-cost leadership strategy to a focused low-cost strategy.
E) lengthening a company's value chain and thereby putting it in a better position to deliver superior value to buyers.
Q2) Vertical integration strategies do not aim at
A) full integration (participating in all stages of the industry vertical chain).
B) control integration (creating control factors across the value chain).
C) partial integration (building positions in selected stages of the value chain).
D) forward integration (value chain activities performed by distributors) or backward toward suppliers.
E) tapered integration (involves both outsourcing and performing the activity internally).
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Chapter 7: Strategies for Competing in Foreign Markets
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) The advantages of manufacturing goods in a particular country and exporting them to foreign markets
A) are largely unaffected by fluctuating exchange rates.
B) are greatest when local distributors and dealers in that country can be convinced not to carry products that are made outside the country's borders.
C) can be wiped out when that country's currency grows weaker relative to the currencies of the countries where the output is being sold.
D) are weakened when that country's currency grows stronger relative to the currencies of the countries where the output is being sold.
E) are multiplied by the potential for local government officials to raise tariffs on the imports of foreign-made goods into their country.
Q2) When is a global strategy "superior" to a multidomestic strategy?
Q3) Explain the importance of competing in emerging markets.
Q4) List and discuss three strategy options for competing in emerging markets.
Q5) What circumstances call for use of a multidomestic strategy for competing in international markets?
Q6) When should a company enter a new country via internal development?
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Page 9
Chapter 8: Diversification: Strategies for Managing a Group of Businesses
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) What is it called when a diversified company can add value by shifting capital from business units generating free cash flow to those needing additional capital to expand and realize their growth potential?
A) internal capital market
B) cash cow benefits
C) economic value added
D) shareholder value added
E) derived valuation
Q2) A company can best accomplish diversification into new industries by
A) outsourcing most of the value chain activities that have to be performed in the target business/industry.
B) acquiring a company already operating in the target industry, creating a new business from scratch, or forming a joint venture with one or more companies to enter the target industry.
C) integrating forward or backward into the target industry.
D) shifting from a strategic group comprised mostly of single-business companies to a strategic group comprised of diversified companies.
E) employing an offensive strategy with new product innovation as its centerpiece.
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Chapter 9: Ethical Business Strategies, Social Responsibility, and
Environmental Sustainabil
ITY
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115 Verified Questions
115 Flashcards
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Sample Questions
Q1) Ethical principles as they apply to the conduct of personnel and business decisions
A) deal chiefly with standards a company has about what is right and wrong insofar as the conduct of its business is concerned and about what behaviors are expected of company personnel.
B) deal chiefly with the behaviors that a company's board of directors expects of all company personnel in both their conduct on the job and off the job.
C) involve the rules a company's top management and board of directors make about "what is right" and "what is wrong."
D) deal primarily with the company's duty to comply with legal requirements and conform to ethical norms of society, in general.
E) are generally less stringent than the ethical principles for society at large because it is well understood that businesses should not be expected to operate any differently than what the law requires of them.
Q2) Identify and explain the three schools of thought about ethical standards for companies with international operations.
Q3) What is the case for why business strategies should be ethical?
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Chapter 10: Building an Organization Capable of Good Strategy Execution
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113 Verified Questions
113 Flashcards
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Sample Questions
Q1) The approach to identifying the items needed to be placed on management's action agenda of the strategy execution plan always involves
A) generalized activities that will underscore the particulars of the company's situation.
B) some definitive managerial recipe for successful strategy execution that works for all company situations and all types of strategies, or that works for all types of managers. C) a set of unimportant managerial tasks that must be covered no matter what the circumstances.
D) senior management's judgment about how to proceed in light of prevailing circumstances.
E) a high-end differentiation strategy for proficient implementation and execution.
Q2) Encouraging employees to challenge existing ways of doing things, and to be creative and innovative in proposing better ways of operating, requires the company to create a supporting environment. In many firms, this means empowering their employees. What is meant by empowerment of employees? How does it differ from delegation of authority? In what ways can empowerment of employees aid the cause of good strategy execution?
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Chapter 11: Managing Internal Operations: Actions That Promote
Good Strategy Execution
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115 Verified Questions
115 Flashcards
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Sample Questions
Q1) The broad areas that internal information business systems need to cover include all of the following EXCEPT
A) financial performance data.
B) supplier/strategic partner data.
C) customer data.
D) operations data.
E) competitor data.
Q2) Reengineering how a firm performs a business process
A) is a tool for pulling the pieces of strategy-critical processes out of different departments and unifying their performance in a single department or cross-functional work group.
B) is the most frequently used tool of total quality management (TQM).
C) requires that a company have many strategic partnerships and alliances with outsiders.
D) is typically cheaper and easier-to-do than using Six Sigma techniques to achieve the same cost savings.
E) is usually a company's most important "best practice" for achieving operating excellence.
Q3) What is the potential long-term payoff of total quality management (TQM)?
Page 13
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Chapter 12: Corporate Culture and Leadership: Keys to Good Strategy Execution
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The character of a company's corporate culture is a product of all of the following EXCEPT
A) the shared values and core business principles and beliefs that management preaches and practices.
B) its standards of what is ethically acceptable and what is not and the stories that get told over and over to illustrate and reinforce the company's shared values, business practices, and traditions.
C) the company's approach to people management and the "chemistry" and "personality" that permeates its work environment.
D) the work practices and behaviors that define "how we do things around here".
E) its lack of mechanisms for aligning, constraining, and regulating the actions, decisions, and behaviors of company personnel.
Q2) What is meant by the term corporate culture? Why is corporate culture an important factor in implementing and executing strategy?
Q3) What are the distinctive features of high-performance corporate cultures?
Q4) Identify and briefly discuss four steps that managers can take to change a culture that is out of step with the company's strategy.
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