Course Introduction
Business Policy
Exam Practice Tests
Business Policy is a capstone course that explores the formulation, implementation, and evaluation of strategies at the highest levels of an organization. It examines how enterprises analyze their internal and external environments, establish goals, and develop policies to achieve long-term objectives. Students will learn how to integrate knowledge from diverse business disciplines including management, marketing, finance, and operations to make informed strategic decisions. Real-world case studies and simulations are often employed to cultivate analytical thinking, problem-solving skills, and an appreciation for the complexities and ethical considerations involved in strategic management.
Recommended Textbook
Strategic Management Text and Cases 6th Edition by Gregory Dess
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12 Chapters
1213 Verified Questions
1213 Flashcards
Source URL: https://quizplus.com/study-set/207
Page 2
Chapter 1: Strategic Management Creating Competitive Advantages
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101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/3021
Sample Questions
Q1) Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility, which is the
A) expectation that business will strive to improve the overall welfare of society.
B) idea that organizations are solely responsible to local citizens.
C) fact that court costs could impact the financial bottom line.
D) idea that businesses are responsible for maintaining a healthy social climate for their employees.
Answer: A
Q2) According to Henry Mintzberg, a management scholar, most firms do not realize their original intended strategy.
A)True
B)False
Answer: True
Q3) Social responsibility is the idea that organizations are only accountable to stockholders.
A)True
B)False
Answer: False
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Chapter 2: Analyzing the External Environment of the Firm
Creating Competitive Advantages
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/3022
Sample Questions
Q1) Two non-competing global firms meet quarterly to discuss multiple perspectives on world trends. This is an example of how to improve
A) stakeholder management.
B) perceptual acuity.
C) internal scanning.
D) financial returns.
Answer: B
Q2) The bargaining power of suppliers increases as
A) threat of forward integration by suppliers increases.
B) importance of buyers to supplier group increases.
C) switching costs for buyers decrease.
D) more suppliers enter the market.
Answer: A
Q3) Which of the following would be considered part of the general environment of a firm?
A) decreased entry barriers
B) higher unemployment rates
C) increased bargaining power of the firm's suppliers
D) increased competitive intensity
Answer: B
Page 4
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Chapter 3: Assessing the Internal Environment of the Firm
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/3023
Sample Questions
Q1) A competitive advantage based on inimitability can be sustained for at least some time, if it has the following characteristics:
A) psychographic uniqueness, path dependency, causal ambiguity, and substitutability.
B) physical uniqueness, path dependency, causal ambiguity, and social complexity.
C) rarity, path dependency, causal ambiguity, and social substitutability.
D) geographic uniqueness, cause dependency, social ambiguity, and path complexity.
Answer: B
Q2) Human resources and reputation resources are examples of intangible resources. A)True
B)False
Answer: True
Q3) The value-chain concept assumes that both primary and support activities can produce value for customers.
A)True
B)False
Answer: True
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Chapter 4: Recognizing a Firm's Intellectual Assets Moving
beyond a Firm's Tangible Resources
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112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/3024
Sample Questions
Q1) Social networks can assist with career success. One of the advantages of having a large social network is
A) it can help provide more complete and unbiased perspectives on issues.
B) it creates ways to guard secrets.
C) it can create ways to solve problems alone.
D) it organizes ways to isolate problems from solutions.
Q2) The creation of knowledge assets is typically characterized by
A) high upfront costs and subsequent high variable costs.
B) high fixed costs and high variable costs.
C) high upfront costs and low variable costs.
D) low upfront costs and high variable costs.
Q3) Knowledge-based resources tend to be more ________ in nature and therefore they are ________ difficult to protect against loss (i.e., the individual quitting the organization) than other types of capital, such as equipment, machinery, and land.
A) explicit; less
B) explicitly; more
C) tacit; more
D) tacit; less
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Chapter 5: Business-Level Strategy Creating and Sustaining Competitive Advantages
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) Which of the following is not a potential pitfall of a focus strategy?
A) Erosion of cost advantages can arise within the narrow segment.
B) Product/service offerings that are highly focused are subject to competition from new entrants.
C) Focusers can become too focused to satisfy buyer needs.
D) All rivals share a common input or raw material.
Q2) Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform
A) at about the same level as firms that achieve either cost or differentiation advantages.
B) about the same as firms that are stuck-in-the-middle.
C) higher than firms that achieve either a cost or a differentiation advantage.
D) lower than firms that achieve differentiation advantages but higher than firms that achieve cost advantages.
Q3) What are the pitfalls of the overall cost leadership strategy? Provide an example for each pitfall and explain why it is a pitfall.
Q4) What is a focus strategy? Provide an example where this has been implemented successfully.
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Chapter 6: Corporate-Level Strategy Creating Value through Diversification
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102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/3026
Sample Questions
Q1) Antitakeover tactics include all the following except
A) greenmail.
B) poison pills.
C) golden parachutes.
D)golden handcuffs.
Q2) ________ is when a firm tries to find and acquire either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change, therebycreating value within business units.
A) Parenting
B) Leveraging core competencies
C) Restructuring
D) Sharing activities
Q3) Why do some diversification efforts pay off and others produce poor results? Why should companies even bother with diversification initiatives?
Q4) Research shows that most acquisitions of public corporations result in value creation rather than value destruction.
A)True
B)False
Page 8
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Chapter 7: International Strategy Creating Value in Global Markets
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107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/3027
Sample Questions
Q1) Which of the following is not a risk associated with a global strategy?
A) A firm with only one manufacturing location must export its product, sometimes at great distance from the operation.
B) The geographic concentration of any activity may also tend to isolate that activity from the targeted markets.
C) Concentrating an activity in a single location makes the rest of the firm dependent on that location.
D) The pressures for local adaptation may elevate the cost structure of the firm.
Q2) The Michael Porter Diamond of National Advantage is a framework that explains why countries foster successful multinational corporations based on factor endowments and demand conditionsonly.
A)True
B)False
Q3) Similarity of culture, laws, rules, and norms encourages
A) regionalization.
B) globalization.
C) trans-nationalization.
D) ethnocentric expansion.
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Chapter 8: Entrepreneurial Strategy and Competitive Dynamics
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94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/3028
Sample Questions
Q1) New entry is among the most common reasons why a cycle of competitive actions and reactions gets started among similar competitors.
A)True
B)False
Q2) ________ is a value required when an opportunity is attractive long enough for it to be successfully developed and deployed.
A) Value creating
B) Durable
C) Achievable
D) Affordable
Q3) Strategic competitive actions include all the following except
A) new product introductions.
B) mergers and alliances.
C) product and service enhancements.
D) changing production capacity.
Q4) Explain what a pioneering new entry means and when it is appropriate to use it.
Q5) What are competitive dynamics and how does this explain why strategies evolve in response to actions of close competitors?
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Chapter 9: Strategic Control and Corporate Governance
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91 Verified Questions
91 Flashcards
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Sample Questions
Q1) In contemporary control systems, data and information generated are best interpreted and discussed in online forums, in order to have traceability of the discussion.
A)True
B)False
Q2) In emerging economies and continental Europe, firms often can be characterized by all the following except
A) concentrated ownership.
B) low family ownership and control.
C) business group structures.
D) weak legal protection for minority shareholders.
Q3) Which of the following is not one of the characteristics of reward and incentive systems?
A) They represent a poor means of influencing the culture of an organization.
B) They focus efforts on high priority tasks.
C) They motivate high levels of individual and collective task performance.
D) They represent an effective control mechanism.
Q4) Discuss the differences between informational control and behavioural control and when each is appropriate.
Q5) Explain why control systems are necessary for strategy implementation.
Page 11
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Chapter 10: Creating Effective Organizational Designs
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86 Verified Questions
86 Flashcards
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Sample Questions
Q1) Which of the following is a disadvantage of a functional type of organizational structure?
A) Differences in functional orientation may impede communication and coordination.
B) Use of managerial and technical talent is inefficient due to pooling of expertise in functional areas.
C) Decision making is centralized at the top of the organization.
D) Managers tend to be overly concerned with long-term strategies that minimize the importance of functional area strengths.
Q2) Which of the following is not a disadvantage of a divisional type of organizational structure?
A) It can be very expensive compared to a functional organizational structure.
B) There is a strong tendency for divisions to focus on short-term performance.
C) There can be dysfunctional competition among divisions.
D) There is separation of strategic and operating control.
Q3) Managers trained in rigid hierarchies do not find it difficult to transition to participative style required for effective teamwork.
A)True
B)False
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12
Chapter 11: Strategic Leadership Creating a Learning
Organization and an Ethical Organization
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104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/3031
Sample Questions
Q1) Inappropriate reward systems may cause individuals to commit unethical acts.
A)True
B)False
Q2) When faced with barriers to change, leaders can create a good climate for advancing the aims of the organization and making progress towards its goals by building ________ and ________.
A) a learning organization; an ethical organization
B) a following organization; an ethical organization
C) a learning organization; an efficient organization
D) an efficient organization; a learning organization
Q3) Leaders risk creating a culture of fear and micromanagement if they
A) create personal connections with their people through frequent unannounced visits.
B) express their passion frequently.
C)keep their workforce motivated.
D) recognize the opinions of others so that they feel valued.
Q4) What are the five key elements of a learning organization and why are they important?
Q5) What is the difference between individual ethics and organizational ethics?
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Chapter 12: Managing Innovation and Fostering Corporate Entrepreneurship
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93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/3032
Sample Questions
Q1) Proctor and Gamble has centralized 20 to 30 percent of its research efforts in a new corporate-level business creation and innovation unit. They believe that this will assist them onlywithdeveloping incremental innovations that will help the overall bottom line.
A)True
B)False
Q2) Business incubators are designed to support fledgling entrepreneurial ventures until they can operate as stand-alone businesses.
A)True
B)False
Q3) Business risk taking refers to the risk associated with entering untested markets or committing to unproven technologies.
A)True
B)False
Q4) Dispersed approaches to corporate entrepreneurship are often found in organizations with a strong spirit of entrepreneurship.
A)True
B)False
Q5) Explain why the seeds versus weeds dilemma is important.
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