Business Policy
Pre-Test Questions
Course Introduction
Business Policy is a capstone course designed to integrate knowledge from various functional areas of business such as marketing, finance, operations, and human resources to develop strategic decision-making skills. This course explores the formulation, implementation, and evaluation of business strategies within complex and dynamic environments. Emphasizing both analytical frameworks and real-world case studies, students learn to identify organizational strengths and weaknesses, analyze competitive environments, and develop strategic plans that align with organizational goals. Through teamwork, presentations, and critical discussions, the course prepares students to address multifaceted business challenges and effectively guide organizations toward sustained competitive advantage.
Recommended Textbook
Strategic Management Concepts and Cases Competitiveness 12th Edition by Michael
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13 Chapters
1670 Verified Questions
1670 Flashcards
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Page 2
A. Hitt
Chapter 1: Strategic Management and Strategic Competitiveness
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133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/3850
Sample Questions
Q1) Six years ago, Colette Smith founded a successful catering company that specializes in providing a wide assortment of miniature cheesecakes for corporate and social events. Although Ms. Smith is no longer active in the actual production of the cheesecakes, she continues as president of the catering company. Ms. Smith could be considered a strategic leader of this firm.
A)True
B)False
Answer: True
Q2) Essentially, _______ has become one of the world's largest markets with 700 million potential consumers.
A) the European Union
B) the United States
C) China
D) Japan
Answer: A
Q3) The goal of strategy implementation is to develop a permanent competitive advantage.
A)True
B)False
Answer: False
Page 3
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Chapter 2: The External Environment: Opportunities,
Threats, Industry Competition, and Competitor Analysis
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138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/3851
Sample Questions
Q1) The highest amount a firm can charge for its products is most directly affected by:
A) expected retaliation from competitors.
B) the cost of substitute products.
C) variable costs of production.
D) customers' high switching costs.
Answer: B
Q2) Once a firm has determined its competitors' future objectives, current strategy, assumptions, and strengths and weaknesses, its next step is to develop:
A) an environmental assessment.
B) a marketing plan.
C) a response profile.
D) a task force to implement the plan.
Answer: C
Q3) When Google studies the internet user privacy policies of various nations, it is engaged in the forecasting component of the environmental analysis process.
A)True
B)False
Answer: False
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Chapter 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive
Advantages
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133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/3852
Sample Questions
Q1) Capabilities typically come from:
A) individual resources.
B) one unique resource.
C) several outstanding resources used independently.
D) combining resources.
Answer: D
Q2) Firms that have strong positive relationships with suppliers and customers are said to have ______, an essential ingredient to creating value.
A) customer value
B) social capital
C) effective marketing
D) an attractive industry
Answer: B
Q3) When firms lay off employees, they are:
A) treating employees as an intangible resource.
B) recognizing the reduced value of labor in the value chain.
C) eroding the organization's knowledge resources.
D) temporarily sacrificing a tangible asset that is easily replaced.
Answer: C
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Chapter 4: Business-Level Strategy
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/3853
Sample Questions
Q1) Effective use of the generic business strategies allows a firm to favorably position itself relative to the five forces.
A)True
B)False
Q2) The integrated cost leadership/differentiation strategy is superior to the other business-level strategies.
A)True
B)False
Q3) The integration of a cost leadership and a differentiation strategy:
A) is challenging because it increases the number of value-chain activities and support functions in which the firm must become competent.
B) forces a firm to adapt more slowly to changes in its environment.
C) allows the firm to avoid being "stuck in the middle."
D) requires such a large customer base that it is most practical for firms in the global marketplace.
Q4) Define strategy and business-level strategy. What is the difference between these two concepts?
Q5) Describe the additional risks undertaken by firms pursuing a focus strategy.
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Chapter 5: Competitive Rivalry and Competitive Dynamics
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) What are the advantages and disadvantages of being a first mover, second mover, and late mover?
Q2) Goods or services in standard-cycle markets reflect:
A) organizations that serve a mass market.
B) numerous first mover advantages.
C) an inability to sustain a competitive advantage except for brief periods of time.
D) competitive advantages that are shielded from imitation.
Q3) Extensive market commonality guarantees intense competition in an industry.
A)True
B)False
Q4) Both ____ and ____ affect the awareness and motivation of a firm to undertake actions and responses.
A) first-mover advantages; corporate size
B) market commonality; resource similarity
C) management capabilities; competitive analysis
D) speed of management decisions; management actions
Q5) Define competitive actions and responses and explain the two types of competitive actions and responses.
Q6) Define awareness, motivation, and ability in reference to competitive behavior.
Page 7
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Chapter 6: Corporate-Level Strategy
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140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/3855
Sample Questions
Q1) Dragonfly, publishers of children's books, has purchased White Rabbit, another publisher of children's books. Both companies' books are sold to the same retail stores and schools. Their content is different because Dragonfly produces children's literature, whereas White Rabbit focuses on child-level nonfiction scientific and nature topics. Which of the following statements is probably TRUE about this acquisition?
A) This is a horizontal acquisition.
B) This is an example of virtual integration.
C) Dragonfly is beginning to build a conglomerate.
D) Economies of scope are unlikely to result from this acquisition.
Q2) Which of the following is TRUE?
A) Conglomerates no longer exist in the U.S. business scene, but are common in emerging markets.
B) Unrelated diversified firms seek to create value through economies of scope.
C) The sharing of intangible resources, such as know-how, between firms is a type of operational sharing in related diversifications.
D) Related constrained firms share more tangible resources and activities between businesses than do related linked firms.
Q3) What are the managerial motives to diversify?
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Chapter 7: Merger and Acquisition Strategies
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131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/3856
Sample Questions
Q1) The announcement that P&G was acquiring premium dog and cat food manufacturer Iams was a _________ acquisition and is intended to ________.
A) vertical; increase diversification
B) horizontal; increase market power
C) vertical; overcome entry barriers
D) related; increase speed to market
Q2) Compared to internal product development, acquisitions allow:
A) immediate access to innovations in mature product markets.
B) more accurate prediction of return on investment.
C) slower market entry.
D) more effective use of company core competencies.
Q3) Currently, the rationale for making an acquisition includes each of the following EXCEPT:
A) to increase market power.
B) to decrease taxes paid by shareholders.
C) to overcome entry barriers.
D) to increase diversification.
Q4) A related acquisition involves two firms in the same industry.
A)True
B)False
Page 9
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Chapter 8: International Strategy
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129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/3857
Sample Questions
Q1) Exporting and licensing are the most appropriate ways for smaller firms to first enter international markets.
A)True
B)False
Q2) Identify and describe the major risks of international diversification.
Q3) International strategy refers to a(n):
A) action plan pursued by American companies to compete against foreign companies operating in the United States.
B) strategy through which the firm sells products in markets outside the firm's domestic market.
C) political and economic action plan developed by businesses and governments to cope with global competition.
D) strategy American firms use to dominate international markets.
Q4) In addition to the four basic dimensions of Porter's "diamond" model, ____ may also contribute to the success or failure of firms.
A) national work ethic
B) educational requirements
C) government policy
D) national pride
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Chapter 9: Cooperative Strategy
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123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/3858
Sample Questions
Q1) Tacit collusion is not explicitly illegal in the United States even though it results in higher prices for consumers.
A)True
B)False
Q2) Legitimately, a firm may pursue an international strategic alliance for all of the following reasons EXCEPT:
A) to enhance the compensation packages of top managers.
B) to leverage core competencies in new markets.
C) to operate within government restrictions in the local country.
D) to escape limited domestic growth opportunities.
Q3) Strategic alliances have become the cornerstone of many firms' competitive strategy, particularly large global competitors.
A)True
B)False
Q4) Network cooperative strategies among Silicon Valley firms have been successful, in part, because they are geographically close together.
A)True
B)False
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11
Chapter 10: Corporate Governance
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142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/3859
Sample Questions
Q1) In Japan, the principal source of the active monitoring of large companies comes from:
A) Boards of Directors.
B) stock brokerage companies.
C) the government.
D) banks.
Q2) Agricultural Chemicals, Inc., was the target of a hostile takeover 6 months ago. The CEO and the top executives successfully fended off the takeover and are concentrating on strategies to improve the performance of the firm. Which of the following is most likely to be TRUE?
A) Hostile takeover attempts are so common that they do not reflect negatively on the firm's performance. They are more a function of general market conditions.
B) The fact that a hostile takeover has occurred is proof that the firm was under-performing.
C) Research shows that once a hostile takeover has been defeated, the firm is safe from other hostile takeover attempts for many years.
D) The CEO and top executives should not consider their jobs secure.
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12
Chapter 11: Organizational Structure and Controls
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136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/3860
Sample Questions
Q1) In the hybrid form of the combination structure, some divisions are oriented toward products while others are oriented toward market areas.
A)True
B)False
Q2) Which of the following is NOT a variation of the multidivisional structure?
A) Competitive form
B) Regional form
C) Cooperative form
D) Strategic business unit form
Q3) Strategic controls allow corporate-level managers to:
A) evaluate business-level performance on objective criteria.
B) concentrate on day-to-day corporate operations.
C) assess performance of employees and managers in each business unit.
D) examine the fit between what the firm might do and what it can do.
Q4) Over time, large and complex organizations must customize their structure to fit their unique strategic needs.
A)True
B)False
Q5) Discuss the difference between strategic controls and financial controls.
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Chapter 12: Strategic Leadership
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118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/3861
Sample Questions
Q1) Normally, the more involved a Board of Directors is in shaping the firm's strategic direction, the:
A) more balanced the organization is.
B) higher the corporation's performance is.
C) more rapidly executive decisions can be made.
D) more difficult it becomes to make effective executive decisions.
Q2) Firm size, firm age, the executive's tolerance for ambiguity, and his or her commitment to strategic outcomes are all factors that may affect managerial discretion.
A)True
B)False
Q3) ____ provide information about the results of past actions, but do not communicate the drivers of the firm's future performance.
A) Financial controls
B) Accounting information systems
C) Policies and procedures
D) Strategic feedback systems
Q4) Transformational leadership is the most effective strategic leadership style. A)True
B)False
Page 14
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Chapter 13: Strategic Entrepreneurship
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/3862
Sample Questions
Q1) A society's cultural characteristics influence a nation's rate of entrepreneurship and its related practices.
A)True
B)False
Q2) When used effectively, cross-functional teams will often bring about:
A) faster product development processes.
B) an increased need for additional information.
C) conflicting information about the business environment.
D) future cooperative alliances.
Q3) Research has shown that internationally diversified firms are generally more innovative.
A)True
B)False
Q4) While smaller firms must use cooperative strategies as a means of producing innovations, larger firms with large R&D units such as P&G and 3M can produce most if not all innovations internally.
A)True
B)False
Q5) What is the importance of international entrepreneurship?
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