Strategic Management Test
Questions
Course Introduction
Strategic Management is a comprehensive course that explores the formulation, implementation, and evaluation of strategies used by organizations to achieve long-term objectives in a competitive environment. Through case studies and analytical frameworks, students learn to assess internal and external business environments, identify strategic opportunities and threats, and make informed decisions that align with organizational goals. The course emphasizes critical thinking, problem-solving skills, and ethical considerations in strategic planning, preparing students to navigate complex business situations and drive sustainable organizational success.
Recommended Textbook
Organization Theory and Design 2nd canadian Edition by Richard L. Daft
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13 Chapters
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Page 2
Chapter 1: Organizations and Organizational Theory
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Sample Questions
Q1) A closed system would be autonomous, enclosed, and sealed off from the outside world, whereas an open system consumes resources and exports resources to the environment.
A)True
B)False
Answer: True
Q2) Which statement best describes organizational behaviour?
A) It is the same as the study of organizational theory.
B) It is a macro analysis of the whole organization.
C) It is focused on people, structure, and environment.
D) It is a micro approach focusing on the individual.
Answer: D
Q3) What is the role of administrative principles in the era of learning organizations?
Answer: Administrative principles are needed to provide some measure of stability as the organizations pursue change and learning in turbulent environments.
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Chapter 2: Strategy, Organizational Design, and Effectiveness
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Sample Questions
Q1) Some organizations do not formally set goals. How should their effectiveness be measured?
Answer: A resource-based approach could be used. The organization's bargaining position, its ability to perceive accurately the external environment, its use of resources, and its adaptability to changes in the environment might be assessed.
Q2) A market goal would typically be stated in terms of net income, earnings per share, or return on investment.
A)True
B)False
Answer: False
Q3) A differentiation strategy calls for a learning approach, whereas a low-cost strategy should be paired with an efficiency approach.
A)True
B)False
Answer: True
Q4) Describe the internal-process effectiveness measure of economic efficiency.
Answer: The measure looks at the extent to which an organization's internal processes run well, particularly employee-oriented processes.
Page 4
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Chapter 3: Fundamentals of Organizational Structure
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Sample Questions
Q1) Refer to Organizational Chart 3.1.Which of the following can we accurately conclude from Organizational Chart 3.1?
A) There should be no assistant manager.
B) The company has a functional structure.
C) The company has a divisional structure.
D) The general manager has a span of control of five.
Answer: B
Q2) What are the similarities and differences between a functional structure with horizontal linkages and a divisional structure?
Answer: In a functional structure with horizontal linkages, people from different functions are brought together in a group to work on a core process. In a divisional structure, employees work in their functions even though they are grouped by what the organization produces. The former is a grouping around core processes while the latter is by product.
Q3) What are the strengths and weaknesses of the horizontal structure?
Answer: There are five strengths and weaknesses.
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Page 5
Chapter 4: The External Environment
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Sample Questions
Q1) Differentiation refers to differences in cognitive and emotional orientations among managers in different functional departments.
A)True
B)False
Q2) One outcome of high differentiation is that coordination between departments becomes more difficult until integrative devices are put in place.
A)True
B)False
Q3) Rather than establish buffer departments, a newer approach in many organizations is to drop the buffers and expose the technical core to its uncertain environment.
A)True
B)False
Q4) Which sector in an organization's environment relates to understanding consumer preferences?
A) industry sector
B) international sector
C) sociocultural sector
D) market sector
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Page 6
Chapter 5: Interorganizational Relationships
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Sample Questions
Q1) What is the reason for organizational structural adaptation due to coercive forces?
A) dependence
B) duty
C) uncertainty
D) professionalism
Q2) We studied the notion of institutional similarity and the reasons for it. Develop your own theory about the effects of the tendency for institutional similarity on business success.
Q3) What does the institutional view argue?
A) Organizations do not have legitimacy from their stakeholders.
B) A market-based economy was not constructed in Russia because its institutions were corrupt.
C) When an organizational field is new, diversity is the norm, but later there is a pressure for them to be more similar.
D) Organizations have two essential dimensions: institutional and public.
Q4) List the characteristics of the traditional theory of organizational relationships.
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Chapter 6: Designing Organizations for the International Environment
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Sample Questions
Q1) Why are global companies sometimes described as stateless corporations?
Q2) Which type of strategy would encourage production design, assembly, and marketing tailored to the needs of each country?
A) focused
B) multidomestic
C) globalization
D) joint venture
Q3) The product-based structure works best when a division handles products that are technologically similar and can be standardized for marketing around the world.
A)True
B)False
Q4) Describe the stages of international evolution in terms of their strategic orientation.
Q5) Which of the following is a characteristic of the global geographical organizational structure?
A) It is most useful for new product lines.
B) It works well for products with rapidly changing technologies.
C) It works best if there are similar needs for the product across countries.
D) It may make product planning on a global scale challenging.
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Chapter 7: Manufacturing and Service Technologies
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Sample Questions
Q1) What is the goal of the sociotechnical systems approach?
A) to design the organization for joint optimization
B) to design the organization for re-engineering
C) to design the organization for self-regulation of advanced technology
D) to design the organization for strong organization culture
Q2) Extend the framework of Woodward's research findings to today, adding in whatever important technology did not exist at the time she did her research.
Q3) What is the purpose of the sociotechnical systems approach?
A) to apply the theory of job enlargement
B) to provide qualified management to an organization in a turbulent environment
C) to offer the most advanced information technology possible to maximize organizational competitiveness
D) to combine human needs with technical efficiency in job design
Q4) Intensive technologies refers to "the combination in one organization of successive stages of production; each stage of production uses as its inputs the production of the preceding stage and produces inputs for the following stage."
A)True
B)False
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Page 9
Chapter 8: Information Technology and Control
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Sample Questions
Q1) The four systems of a management control system form an overall management control system that provides top management with control information about resource inputs, process efficiency, and output. This information allows managers to create new strategies.
A)True
B)False
Q2) Managers use quality control systems to train employees in quality control methods, set targets for employee participation, establish benchmarking guidelines, and assign and measure Six Sigma goals.
A)True
B)False
Q3) Which of the following is the term for the efforts to systematically find, organize, and make available a company's intellectual capital and to foster a culture of continuous learning and knowledge sharing so that organizational activities build on what is already known?
A) enterprise resource planning
B) Six Sigma
C) knowledge management
D) benchmarking
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Page 10
Chapter 9: Organization Size, Life Cycle, and Decline
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Sample Questions
Q1) The elaboration stage involves the installation and use of rules, procedures, and control systems.
A)True
B)False
Q2) When downsizing, which of the following helps eases the downsizing process and reduces tension of both employees who leave and those who remain?
A) helping the remaining employees focus on their daily tasks by providing more guidance or assistance
B) communicating less, not more
C) providing assistance to workers who were let go
D) letting workers deal with the situation on their own and in their own way
Q3) Identify an organization in which you have worked. Analyze its management as related to the size of the organization.
Q4) Discuss how an organization can help smooth the downsizing process and ease tensions for employees who leave and employees who remain.
Q5) As organizations become larger, greater centralization is necessary.
A)True
B)False
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Chapter 10: Organizational Culture and Ethical Values
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Sample Questions
Q1) Every day, business people make choices about whether to be honest or deceitful with suppliers, treat employees with respect or disdain, and be a good or a harmful corporate citizen. Which of the following guides these decisions?
A) managerial ethics
B) whistle-blowing policies
C) codes of ethics
D) cultural norms
Q2) The personal liberty framework argues that decisions should be made to ensure the greatest possible freedom of choice and liberty for individuals.
A)True
B)False
Q3) Which of the following best describes the culture at 3M, a company whose values promote individual initiative and entrepreneurship?
A) an adaptability culture
B) a mission culture
C) a clan culture
D) a bureaucratic culture
Q4) Discuss culture strength and organizational subcultures.
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Page 12
Chapter 11: Innovation and Change
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Sample Questions
Q1) Some management experts argue that to survive the upheaval of the early 21st century, managers must turn their organizations into change leaders by using the present to actually create the future.
A)True
B)False
Q2) Changing technology means to change the organization's production process rather than the product itself.
A)True
B)False
Q3) Give an example of an administrative change, and explain how it should be implemented using principles of organizational theory.
Q4) Structure and system changes are usually bottom-up, mandated by lower management, whereas product and technology changes may often come from the top down.
A)True
B)False
Q5) Discuss the stages of change-commitment process.
Q6) Compare and contrast the dual-core approach and the ambidextrous approach.
Q7) What is a venture team?
Page 13
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Chapter 12: Decision-Making Processes
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Sample Questions
Q1) When the management team of an organization accepts a satisfactory rather than a maximum level of performance when making decisions, what are they engaging in?
A) satisficing
B) problemistic search
C) problem consensus
D) escalating commitment
Q2) Which of the following research results forms the basis of the incremental model?
A) A manager with a proposal can get her idea implemented by breaking it down into small steps and installing one step before going on to another.
B) Many major organizational decisions occur through a series of smaller decisions made over a fairly long period of time.
C) Programmed decisions involve several mathematical formulas that build on each other.
D) Algorithms are useful for prediction.
Q3) What is a decision interrupt? Give at least two examples from your own experience.
Q4) What is a problemistic search? What is its role in decision making?
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Page 14
Chapter 13: Conflict, Power, and Politics
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Sample Questions
Q1) Harold Ballard used his coercive power to control the Toronto Maple Leafs.
A)True
B)False
Q2) Which of the following is a mechanism for arriving at consensus when uncertainty is high and there is disagreement over goals or problem priorities?
A) power
B) authority
C) politics
D) decision premise
Q3) Which statement best describes what is known about horizontal power?
A) It is reflected on the organizational flow chart.
B) The sales department invariably carries a higher power rating than other departments.
C) Its relationships change as strategic contingencies change.
D) The concept of vertical linkages explains relative power.
Q4) One of the three primary domains of political activity is structural change.
A)True
B)False
Q5) Describe the steps of a win-win strategy and a win-lose strategy.
Q6) What political tactics are recommended for using power?
Page 15
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