Competitive Strategy
Test Questions
Course Introduction
Competitive Strategy examines the frameworks, tools, and analytical approaches that businesses use to gain and sustain advantage in dynamic markets. The course explores key concepts such as industry analysis, positioning, resource-based views, and strategic innovation. Through the study of real-world cases and contemporary industry examples, students learn how organizations formulate and implement strategies to outperform rivals, anticipate changes in the competitive landscape, and respond effectively to global competition. The course emphasizes both qualitative and quantitative methods, fostering critical thinking and strategic decision-making skills essential for organizational success.
Recommended Textbook
Strategic Management Concepts and Cases 16th Edition by Fred R. David
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11 Chapters
1321 Verified Questions
1321 Flashcards
Source URL: https://quizplus.com/study-set/1473
Page 2
Chapter 1: The Nature of Strategic Management
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123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/29313
Sample Questions
Q1) Which of the following is NOT a pitfall an organization should avoid in strategic planning?
A) Failing to communicate the plan to employees
B) Involving all managers rather than delegating planning to a "planner"
C) Top managers not actively supporting the strategic-planning process
D) Doing strategic planning only to satisfy accreditation or regulatory requirements
E) Failing to create a collaborative climate supportive of change
Answer: B
Q2) In which phase of strategic management are annual objectives are especially important?
A) Reduction
B) Formulation
C) Implementation
D) Evaluation
E) Policy
Answer: C
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3
Chapter 2: The Business Vision and Mission
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) According to Drucker, which question is synonymous with asking "What is our mission?"?
A) What is our business?
B) How can we improve ourselves?
C) What do we want to become?
D) Who are our stakeholders?
E) How can we increase profitability?
Answer: A
Q2) In developing a mission statement, arousing emotion
A) is not a benefit.
B) is futile.
C) is important.
D) should be avoided if possible.
E) is counterproductive.
Answer: C
Q3) A mission statement is a declaration of an organization's reason for being.
A)True
B)False
Answer: True
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Page 4
Chapter 3: The External Assessment
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115 Verified Questions
115 Flashcards
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Sample Questions
Q1) In recent times, which of the following has largely refrained from protectionist measures?
A) The European Union
B) The United States
C) India
D) Russia
E) India and Russia
Answer: B
Q2) Discuss the following statement: "Planning would be impossible without assumptions."
Answer: By identifying future occurrences that could have a major effect on the firm and by making reasonable assumptions about those factors, strategists can carry the strategic-management process forward. Assumptions are needed only for future trends and events that are most likely to have a significant effect on the company's business. Assumptions can serve as checkpoints on the validity of strategies. If future occurrences deviate significantly from assumptions, strategists know that corrective actions may be needed. Without reasonable assumptions, the strategy-formulation process could not proceed effectively. Firms that have the best information generally make the most accurate assumptions, which can lead to major competitive advantages.
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Chapter 4: The Internal Assessment
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123 Verified Questions
123 Flashcards
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Sample Questions
Q1) Describe the controlling function of management. Include the four basic steps that comprise this function in your description.
Q2) An effective information management system ________ information in such a way that it answers important operating and strategic questions.
A) collects
B) codes
C) stores
D) synthesizes
E) all of the above
Q3) Metaphors are handed-down narratives of some wonderful event that are based on history but which have been embellished with fictional detail.
A)True
B)False
Q4) Linkages between a firm's culture and strategies often determine success.
A)True
B)False
Q5) Define cultural products and give six examples of them.
Q6) What are the seven basic functions of marketing?
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Chapter 5: Strategies in Action
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123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/29319
Sample Questions
Q1) Websites that sell products directly to consumers are examples of which type of strategy?
A) Backward integration
B) Product development
C) Forward integration
D) Horizontal integration
E) Conglomerate diversification
Q2) When a domestic company first begins to export to India, it is an example of
A) horizontal integration.
B) backward integration.
C) forward integration.
D) concentric diversification.
E) market development.
Q3) Objectives provide direction and allow for organizational synergy.
A)True
B)False
Q4) Differentiation guarantees competitive advantage as long as standard products sufficiently meet customer needs.
A)True
B)False
Page 7
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Chapter 6: Strategy Analysis and Choice
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) The two positive-rated dimensions on the SPACE Matrix are
A) FP and CP.
B) CP and SP.
C) FP and IP.
D) IP and SP.
E) FP and SP.
Q2) The act of oversight and direction for an organization is referred to as
A) corporate lawmaking.
B) centralized control.
C) organizational direction.
D) establishing norms.
E) governance.
Q3) According to the Grand Strategy Matrix, organizations in which quadrant have a strong competitive position but are in a slow-growth industry?
A) I
B) II
C) III
D) IV
E) V
Q4) Explain the concept of matching in the strategy formulation framework.
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Chapter 7: Implementing Strategies: Management, Operations, and Human Resource Issues
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116 Verified Questions
116 Flashcards
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Sample Questions
Q1) Policies refer to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals.
A)True
B)False
Q2) When developing an organizational chart, you should
A) recommend dual titles for executives.
B) use the title "president" for the top executive of the firm.
C) make sure that the chief financial officer is not at the same level as the chief operating officer (COO).
D) have division presidents report to a chief operating officer (COO)
E) have employees report to more than one person in the chain of command.
Q3) Which divisional structure stands out for effectiveness when a few major customers are of paramount importance and many different services are provided to these customers?
A) By geographic area
B) By customer
C) By product
D) By process
E) By cost
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Chapter 8: Implementing Strategies: Marketing,
Financeaccounting, Rd, and Mis
Issues
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117 Verified Questions
117 Flashcards
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Sample Questions
Q1) Which of these is NOT a rule for using product positioning as a strategy-implementation tool?
A) Look for the hole or vacant niche, a segment of the market currently not being served.
B) Do not serve two segments with the same strategy.
C) Position yourself in the middle of the map, if you are one of only two competitors.
D) Position yourself in the middle of the map, if there are more than two competitors.
E) All of these are rules for using product positioning as a strategy-implementation tool.
Q2) If a firm incurs a loss during a particular year, or if the firm paid out more in dividends than it had in net income, what happens to the retained earnings (RE) amount?
A) It increases.
B) It is unchanged.
C) It decreases.
D) It doubles.
E) It cannot be determined from the information given.
Q3) Discuss three major R&D approaches for implementing strategies.
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Page 10
Chapter 9: Strategy Review, Evaluation, and Control
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122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/29323
Sample Questions
Q1) With the passage of time strategy evaluation is becoming
A) increasingly difficult.
B) much simpler.
C) very convenient.
D) an unnecessary activity.
E) less important.
Q2) What corrective actions might a firm take during strategy evaluation?
A) Revise the business mission
B) Issue stock
C) Revise objectives
D) Sell a division
E) All of the above
Q3) The decreasing time span for which planning can be done with any degree of certainty is a reason strategy evaluation is more difficult today.
A)True
B)False
Q4) Contingency plans should be as simple as possible.
A)True
B)False
Q5) Explain why strategy evaluation can be a complex and sensitive undertaking.
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Chapter 10: Business Ethics, Social Responsibility, and Environmental Sustainability
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117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/29314
Sample Questions
Q1) What challenge facing all organizations requires managers to formulate strategies that preserve and conserve natural resources and control pollution?
A) Economic
B) Ecological
C) Compensational
D) Benchmarking
E) Sociological
Q2) Sustainability reports reveal how a firm's operations impact the natural environment.
A)True
B)False
Q3) More and more firms believe that ethics training and an ethics culture create strategic advantage.
A)True
B)False
Q4) Whistle-blowing refers to employees reporting unethical behavior that they discover or see in the firm.
A)True
B)False
Page 12
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Chapter 11: Global and International Issues
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126 Verified Questions
126 Flashcards
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Sample Questions
Q1) Time spent with the family and the quality of relationships are more important in some cultures than the personal achievement and accomplishments espoused by the traditional U.S. manager.
A)True
B)False
Q2) Which of the following is a European country in which union membership is growing?
A) Australia
B) Austria
C) France
D) Italy
E) Sweden
Q3) Punctuality is generally revered in all cultures of the world.
A)True
B)False
Q4) To avoid paying U.S. taxes on income made in other countries, many U.S. companies are cash-rich outside the United States but cash-poor inside the United States.
A)True
B)False
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Page 13