Strategic Management Test Preparation
Course Introduction
Strategic Management explores the formulation, implementation, and evaluation of cross-functional decisions that enable organizations to achieve their long-term objectives. The course covers key frameworks and tools used in analyzing the external environment, assessing internal capabilities, and developing strategies to create a sustainable competitive advantage. Students will learn to apply strategic analysis to real-world business cases, understand the role of leadership in strategic decision-making, and examine issues such as corporate governance, global strategies, and innovation in dynamic markets.
Recommended Textbook
Economics of Strategy 6th Edition by David Besanko
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14 Chapters
419 Verified Questions
419 Flashcards
Source URL: https://quizplus.com/study-set/1331 Page 2
Chapter 1: The Power of Principles: an Historical Perspective
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/26572
Sample Questions
Q1) Relaxing of government regulation of economic activities occurred during the second half of the 20 century for all of the following except:
A) Airline industry
B) Workplace safety
C) Banking industry
D) Trucking
E) Healthcare industry
Answer: B
Q2) Matchmakers between manufacturers and sellers are called:
A) Agents
B) Factors
C) Brokers
D) Merchants
E) None of the Above
Answer: C
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3
Chapter 2: Economies of Scale and Scope
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/26573
Sample Questions
Q1) What kind of economies come from reductions in average costs due to increases in capacity utilization?
A) Short-run economies of scale
B) Short-run economies of scope
C) Long-run economies of scale
D) Long-run economies of scope
E) Fully automated economies
Answer: A
Q2) By satisfying which of the following conditions can shareholders prevent management driven acquisitions?
A) If shareholders could determine which acquisitions will lead to increased profits and which will not
B) If shareholders could direct management to undertake only those acquisitions that will increase shareholder value
C) If shareholders could provide management with the appropriate steps to conduct when performing acquisitions
D) a & b
E) None of the above
Answer: D
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Chapter 3: The Vertical Boundaries of the Firm
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Suppose you manufacture 10 million hard drives per year specifically for Dell laptop computers.Suppose your average variable cost C=$20/unit,annualized cost of investment to build a hard drive factory I=$30 million,and the market price (bailout market price in the event Dell does not buy)Pm=$22/unit.If Dell agrees to purchase the 10 million hard drives at a price P*=$25/unit and the deal subsequently falls apart,what is your company's "quasi-rent"?
Answer: $30 million
Q2) What are agency costs?
A) Costs of the sales force
B) Costs associated with slack effort and with the administrative controls to deter it
C) Costs related to general and administrative expenses
D) Costs associated with outsourcing of firm functions
E) Costs attributed to the use of professional service firms
Answer: B
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Chapter 4: Integration and Its Alternatives
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30 Flashcards
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Sample Questions
Q1) The process by which governance develops is known as:
A) Vertical decision making (VDM)
B) Path Dependence
C) Internal design
D) Management evolution
E) Institutional learning
Q2) Why are the current health care systems on the rise being built around the integration of clinical information technology and disease management systems?
A) They both have high costs
B) They both are new trends in health care
C) They are easy to integrate
D) They do not require a significant investment to integrate
E) They both require asset specificity and coordination
Q3) What term describes when a firm is using the least-cost production process?
A) Agency efficiency
B) Technical efficiency
C) Lean compliant
D) Economizing
E) Six sigma compliant
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Page 6
Chapter 5: Competitors and Competition
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30 Flashcards
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Sample Questions
Q1) The causal connection between firms is known as the:
A) Market structure formula
B) Structure, Conduct, Performance paradigm
C) Competition index
D) Herfindahl Iindex
E) Concentration, Profit connection
Q2) What term describes a firm that faces little or no competition in one of its input markets?
A) Monopolist
B) Monopsonist
C) Oligopolist
D) Oligopsonist
E) Cartelist
Q3) What term describes the differentiation of a product when only some consumers prefer it to competing products (holding price equal)?
A) Horizontal differentiation
B) Vertical differentiation
C) Idiosyncratic differentiation
D) Spatial differentiation
E) Non-price differentiation
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Chapter 6: Entry and Exit
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30 Flashcards
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Sample Questions
Q1) Which of the following terms refers to the practice whereby an incumbent firm discourages entry by charging a low price before entry occurs?
A) Limit pricing
B) Price leading
C) Predatory pricing
D) Quality pricing
E) Capacity expansion
Q2) What situation occurs if an incumbent firm with increasing marginal costs or limited capacity sets a price just below the entrants' marginal costs even though the incumbent may be unable to meet all market demand (or possibly may have to sacrifice its profits to do so)?
A) Contestable limit pricing
B) Strategic limit pricing
C) Predatory pricing
D) Quality pricing
E) Capacity expansion
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8
Chapter 7: The Dynamics Competing Across Time
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Sample Questions
Q1) Which set of advice below should a manager disregard when seeking pricing stability that is least likely to suffer from antitrust legislation?
A) All pricing decisions should be made unilaterally. Avoid direct contacts with competitors about price
B) Carefully handle public pricing communications
C) Always share analyses of probably competitive reactions
D) Monitor the content. Announce price changes; do not lecture competitors about the need to raise prices or consequences of reducing them
E) Clear your pricing tactics with an attorney well versed in antitrust law
Q2) What step of Ghemawat's framework for analyzing commitment intensive choices involves analyzing whether the firm's commitment is likely to result in a product market position in which the firm delivers superior benefits to consumers or operates with lower costs than competitors?
A) Positioning analysis
B) Sustainability analysis
C) Flexibility analysis
D) Judgment analysis
E) Final Commitment analysis
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9
Chapter 8: Industry Analysis
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30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/26579
Sample Questions
Q1) In which of the following ways can entry erode incumbents' profits?
A) Entrants divide market demand among fewer sellers
B) Entrants decrease market concentration
C) Entrants usually grow the market for all parties
D) Entrants increase market concentration
E) Entrants reduce internal rivalry
Q2) Which of the following is not a potential limitation of the five-forces framework?
A) It pays little attention to factors that might affect demand
B) It focuses on a whole industry rather than on individual firms that may occupy unique positions that insulate them from some competitive forces
C) The framework does not explicitly account for the role of government, except when government is a supplier or buyer
D) The framework provides a structured way to systematically work through wide-ranging and often complex issues
E) The framework is a qualitative analysis method
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Chapter 9: Strategic Positioning for Competitive Advantage
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30 Verified Questions
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Source URL: https://quizplus.com/quiz/26580
Sample Questions
Q1) Which of the following represents producer surplus in the value creation equation,(B-P)+ (P-C)?
A) B
B) P
C) C
D) B-P
E) P-C
Q2) Which of the following terms is a concept,developed by Michael Porter,which describes the activities within firms and across firms that add value along the way to the ultimate transacted good or service?
A) Five forces
B) Value creation
C) Value chain
D) Consumer surplus
E) Producer surplus
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Chapter 10: Information and Value Creation
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Source URL: https://quizplus.com/quiz/26581
Sample Questions
Q1) Which of the following is a statistical process in which raw outcome measures are adjusted for factors that are beyond the control of the seller?
A) Risk adjustment
B) Mean reversion
C) Score adjustment
D) Noise limiting
E) Outcome adjustment
Q2) Products for which consumers can easily obtain the information required to compare alternatives are called:
A) Experience goods
B) Search goods
C) Retail goods
D) Consumer goods
E) Credence Goods
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Chapter 11: Sustaining Competitive Advantage
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Sample Questions
Q1) Size,growth,and character of home demand for a firm's product are examples of what?
A) Factor conditions
B) Demand conditions
C) Supply conditions
D) Related supplier or support industries
E) Strategy, structure, and rivalry
Q2) What term best describes firm-specific assets such as patents and trademarks,brand-name reputation,installed base,and organizational culture?
A) Competitive advantage
B) Capabilities
C) Resources
D) Threats to sustainability
E) Strategic firm assets
Q3) Which of the following is not a Legal Restriction?
A) Patent
B) Copyright
C) Trademark
D) Intellectual property
E) Operating rights
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Chapter 12: Performance Measurement and Incentives
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29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/26583
Sample Questions
Q1) What type of performance measurement based process was used to determine Jack Welch's successor,Jeffrey Immelt,as CEO of GE?
A) Ratings compression
B) Merit ratings system
C) 360-degree peer review system
D) Promotion tournament
E) Management-by-objective system
Q2) Which of the terms best describes the effect that results from supervisors giving all their subordinates average (or above average)grading to avoid making sharp distinctions between those subordinates when evaluating them?
A) Forced ranking system
B) Subjective assessment
C) Ratings balancing
D) Ratings compression
E) Merit ratings system
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14
Chapter 13: Strategy and Structure
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Sample Questions
Q1) Which of the following terms involves the location of decision making rights and rule making authority within a hierarchy?
A) Complex hierarchy
B) Coordination
C) Control
D) Hierarchy of authority
E) Departmentalization
Q2) What type of organizational structure is one that is comprised of a set of autonomous divisions led by a corporate headquarters office,assisted by a corporate staff that provides information about the internal and external business environment?
A) Unitary functional structure
B) Multidivisional structure
C) Matrix structure
D) Network structure
E) Individual structure
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Chapter 14: Environment, power, and Culture
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Sample Questions
Q1) Which of the following terms best refers to the exercise or use of power in a given situation by an individual?
A) Control
B) Authority
C) Culture
D) Influence
E) Contracts
Q2) Which of the following refers to when a firm with a patent uses its market power to set a high price - cost margin?
A) Cost power
B) Pricing power
C) Legal power
D) Limiting power
E) Structural power
Q3) Which of the following is true about culture?
A) Culture increases agency costs
B) Culture reduces bargaining costs
C) Culture reduces transactions costs
D) Culture increases economic costs
E) culture has no effect on costs
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