Strategic Planning Review Questions
Course Introduction
Strategic Planning explores the foundational concepts, tools, and processes used to develop and implement effective long-term strategies within organizations. Through the analysis of real-world cases and theoretical models, students will learn how to conduct environmental scans, formulate strategic objectives, assess competitive advantages, and align organizational resources with overarching goals. Emphasis is placed on critical thinking, scenario planning, and adaptive decision-making to address complex business challenges and opportunities in dynamic markets. The course prepares students to contribute to or lead the strategic planning process in various organizational contexts.
Recommended Textbook
Strategic Management and Competitive Advantage 4th Edition by Jay B. Barney
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11 Chapters
1100 Verified Questions
1100 Flashcards
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Page 2
Chapter 1: What Is Strategy and the Strategic Management
Process?
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/12060
Sample Questions
Q1) Why is it important to understand a firm's strategy,even if you are not a senior manager in a firm?
Answer: First,studying strategy and the strategic management process can give individuals the tools they need to evaluate the strategies of the firms that may hire them.Second,once an individual is working for a firm,understanding that firm's strategy,and their place in it,can be very important to their personal success since the expectations of how they perform their function will be impacted by the firm's strategy.Finally,while strategic choices are generally limited to very experienced managers in large organizations,in smaller and entrepreneurial firms,many employees end up being involved in the strategic management process.
Q2) The view that equity holders only receive payment on their investment in a firm after all legitimate claims by a firm's other stakeholders are satisfied is known as the ________ view of equity holders.
A) stakeholder
B) residual claimants
C) legitimate claimants
D) extraordinary claims
Answer: B
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Page 3
Chapter 2: Evaluating a Firm's External Environment
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) According to the S-C-P model,attributes of the industry structure within which a firm operates define the range of options and constraints facing a firm.
A)True
B)False
Answer: True
Q2) To a firm seeking competitive advantage,an environmental threat is any individual,group,or organization outside a firm that seeks to reduce the level of that firm's performance.
A)True
B)False
Answer: True
Q3) BidBuy has a ________ advantage.
A) visionary
B) global
C) first-mover
D) comparative
Answer: C
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Chapter 3: Evaluating a Firm's Internal Capabilities
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) The interpersonal relations among managers in a firm,a firm's culture,and a firm's reputation among suppliers and customers can all act to make a firm's resources and capabilities socially complex.
A)True
B)False
Answer: True
Q2) In general,as long as the number of firms that possess a particular valuable resource or capability is less than the number of firms needed to generate perfect competition dynamics in an industry,that resource or capability can be considered ________ and a potential source of competitive advantage.
A) valuable
B) rare
C) inimitable
D) un-substitutable
Answer: B
Q3) A firm's patents may decrease,rather than increase,the costs of imitation.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Cost Leadership
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) ________ focus(es)on the relationship between the volume of production and a given point in time and average unit costs,the ________ focus(es)on the relationship between cumulative production and average costs.
A) Economies of scale; learning curve
B) Competitive advantage; economies of scale
C) Learning curve; economies of scale
D) Economies of scale; competitive advantage
Q2) Identify how cost leadership helps neutralize each of the major threats in an industry.
Q3) Economies of scale are said to exist when the increase in firm size (measured in terms of volume of production)are associated with lower costs (measured in terms of average costs per unit of production).
A)True
B)False
Q4) Physical technology-based cost advantages apply only in manufacturing firms. A)True
B)False
Q5) Discuss the difference between the learning curve and economies of scale.
Q6) What are the responsibilities of the CEO in a functional organization?.
Page 6
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Chapter 5: Product Differentiation
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) In fragmented industries firms can use product differentiation to help consolidate a market.
A)True
B)False
Q2) When a firm sells a highly differentiated product,it enjoys a quasi-monopoly in that segment of the market.
A)True
B)False
Q3) Firms selling differentiated products face a horizontal demand curve.
A)True
B)False
Q4) What is the impact of product differentiation on each of the environmental threats identified in the five forces framework?
Q5) Timing,location,distribution channels,and service and support are all very similar bases of product differentiation and can act as substitutes for each other.
A)True
B)False
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Page 7
Chapter 6: Vertical Integration
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/12065
Sample Questions
Q1) Identify three reasons why a firm may be able to create value through vertical integration when most of its competitors are not able to create value through vertical integration.
Q2) A decision-making setting is uncertain when the future value of an exchange cannot be known when investments in that exchange are being made.
A)True
B)False
Q3) According to the opportunism-based explanations of vertical integration,which of the following would be the most appropriate type of compensation to support strategy implementation?
A) Cash bonuses for corporate performance
B) Cash bonuses for group performance
C) Stock options for individual performance
D) Stock grants for individual performance
Q4) A firm may be able to gain an advantage from vertically integrating when it resolves some uncertainty it faces sooner than its competition.
A)True
B)False
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Chapter 7: Corporate Diversification
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Firms such as PepsiCo that operate a number of businesses around the world that share a number of inputs,production technologies,or distribution channels but none of whose businesses account for more than 70% of a firm's revenues are said to be implementing a
A) related-constrained diversification.
B) related-linked diversification.
C) dominant-business diversification.
D) single-business diversification.
Q2) Multipoint competition requires loose coordination between the different businesses in which a firm operates.
A)True
B)False
Q3) Overall,related diversification is less likely to be consistent with the interests of a firm's equity holders than is unrelated diversification.
A)True
B)False
Q4) Specify the two conditions that a corporate diversification strategy must meet in order to create economic value.
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9
Chapter 8: Organizing to Implement Corporate
Diversification
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Which of the following statements regarding CEO compensation is accurate?
A) Differences in CEO cash compensation are very responsive to differences in firm performance.
B) If a substantial percentage of a CEO's compensation comes in the form of stock and stock options in the firm,changes in compensation are closely linked with changes in firm performance.
C) If a substantial percentage of a CEO's compensation comes in the form of stock and stock options in the firm,changes in compensation are not closely linked with changes in firm performance.
D) If a substantial percentage of a CEO's compensation comes in the form of salary,changes in compensation can be expected to be closely linked with changes in firm performance.
Q2) When compared to the strategy implementation responsibilities of senior executives in U-form organizations,when implementing strategy,division general managers in M-form organizations
A) tend to have to deal with less conflict.
B) have to compete for external capital funding.
C) tend to have to deal with substantially more conflict.
D) must cooperate with other divisions to exploit corporate economies of scope.
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Chapter 9: Strategic Alliances
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) While it is often the case that there will be important information asymmetries between firms in an alliance,these asymmetries are likely to be ________ when alliances partners come from different countries.
A) much less
B) about the same as C) much greater
D) marginally greater
Q2) In a nonequity alliance,firms create a legally independent firm in which they invest and from which they share any profits that are created.
A)True
B)False
Q3) Alliances will be preferred to acquisitions when
A) alliances limit a firm's flexibility under conditions of high uncertainty.
B) there is minimal unwanted organizational "baggage" in an acquired firm.
C) there are legal constraints on acquisitions.
D) the value of a firm's resources and capabilities does not depend on its independence.
Q4) Define a strategic alliance and identify and differentiate between three broad categories of strategic alliances.
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Chapter 10: Mergers and Acquisitions
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Mergers and acquisitions used to create diversification strategies should be managed through the
A) M-form structure.
B) functional structure.
C) U-form structure.
D) matrix structure.
Q2) If there is any hope that mergers and acquisitions will be a source of superior performance for bidding firms,it must be because of some sort of strategic relatedness between bidding and target firms.
A)True
B)False
Q3) If Gillette's managers wanted to maximize the value that Gillette received from its acquisition by P&G,they should
A) seek information from P&G about the value that P&G will receive from its acquisition of Gillette.
B) not engage in negotiations with any bidder but P&G.
C) close the acquisition as quickly as possible.
D) stop the acquisition.
Q4) How are poison pills different from shark repellents?
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Chapter 11: International Strategies
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/12070
Sample Questions
Q1) International strategies are an example of ________ strategies.
A) corporate
B) business
C) functional
D) operational
Q2) Agrestal's organizational structure is most likely the ________ structure.
A) centralized hub
B) transnational
C) decentralized federation
D) coordinated federation
Q3) What is meant by political risk? What types of political risks do firms face?
Q4) Firms that seek to balance the need for local responsiveness and international integration will typically choose ________.
A) centralized federations
B) transnational structures
C) decentralized federations
D) matrix structures
Q5) Countervailing duties are an example of quotas.
A)True
B)False
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