Corporate Strategy
Exam Practice Tests
Course Introduction
Corporate Strategy is a comprehensive course designed to equip students with the frameworks and tools necessary to analyze and formulate strategies at the highest levels of management. This course explores how corporations create value across multiple lines of business, examining topics such as diversification, mergers and acquisitions, strategic alliances, global strategy, and the allocation of resources. Students will engage with real-world case studies to understand the complexities of strategic decision-making, the role of corporate governance, and the impact of external industry forces. By the end of the course, students will have developed the ability to critically assess corporate strategies and contribute meaningfully to the long-term success of multidivisional organizations.
Recommended Textbook
Strategic Management Concepts and Cases Competitiveness 12th Edition by
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13 Chapters
1670 Verified Questions
1670 Flashcards
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Page 2
Michael 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) Examples of incremental innovations include iPods, PDAs, Wi-Fi, and web browser software.
A)True
B)False
Answer: False
Q2) The rate of technology diffusion has been steadily increasing over the last two decades.
A)True
B)False
Answer: True
Q3) ______ provides the firm with new and up-to-date skill sets, which allow it to adapt to its environment as it encounters changes.
A) Strategic flexibility
B) Continuous learning
C) Knowledge
D) The Internet
Answer: B
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Page 3
Chapter 2: The External Environment: Opportunities,
Threats, Industry Competition, and Competitor Analysis
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) For a restaurant business dependent on drive-thru customers, the major cost disadvantage independent of scale would be if:
A) favorable locations are not available.
B) other competitors have proprietary product technology.
C) access to food and ingredients is difficult.
D) other competitors have government subsidies.
Answer: A
Q2) Monitoring involves the development of a forecast of what might happen at a future point in time.
A)True
B)False
Answer: False
Q3) Global warming and energy consumption are aspects of the technological environment segment that firms should monitor.
A)True
B)False
Answer: False
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Page 4
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/3852
Sample Questions
Q1) ______ can be viewed as the capacity to take action.
A) Strategic assets
B) Human capital
C) Core competencies
D) Functional capabilities
Answer: C
Q2) A firm's core competencies, integrated with an understanding of the results of studying the conditions in the external environment, should:
A) guarantee profits.
B) lead to a first-mover advantage.
C) drive the selection of strategies.
D) increase the firm's market share.
Answer: C
Q3) Technology has made it more difficult for companies to find ways to develop competitive advantages.
A)True
B)False
Answer: True
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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) The Monteleone Company pays large fees to a highly recognizable, prestigious individual to be the spokesperson for the company's products, luxury private jets. Monteleone is probably following the:
A) focused cost leadership strategy.
B) focused differentiation strategy.
C) integrated cost leadership/differentiation strategy.
D) total quality strategy.
Q2) When selecting a business-level strategy, the firm determines who will be served, what customer needs will be satisfied, and how those needs will be satisfied.
A)True
B)False
Q3) Every firm uses all levels of strategy: corporate, acquisition and restructuring, international and cooperative.
A)True
B)False
Q4) When a firm chooses a business-level strategy, it must answer the questions "Who? What? and How?" What are these questions and why are they important?
Q5) Describe the risks of a differentiation 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) Which of the following is an example of a tactical action?
A) Walmart's launch of Sam's Club stores
B) Continental Airlines exit from a hub airport in Denver
C) Netflix beginning to offer music in addition to movies
D) Dell's launch of a new line of high performance, custom-made PCs
Q2) A firm can predict that a competitor whose products suffer from poor quality is likely to be less aggressive in its competitive actions until those quality problems are corrected.
A)True
B)False
Q3) Which of the following statements is FALSE?
A) First movers tend to take higher risks than second and later movers.
B) First movers tend to have significantly higher revenues than second movers.
C) First movers have lower survival rates than second and late movers.
D) First movers tend to have more organizational slack than later movers.
Q4) Coca Cola and PepsiCo compete across a number of products (e.g., soft drinks, bottled water) and geographic markets (U.S. and foreign markets) indicating that both companies have market commonality.
A)True
B)False
Page 7
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Chapter 6: Corporate-Level Strategy
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140 Verified Questions
140 Flashcards
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Sample Questions
Q1) A major advantage of diversification is that overall monitoring costs are reduced because each separate business comes under the control of corporate headquarters.
A)True
B)False
Q2) Firms with both operational and corporate relatedness are favorites of investment analysts because the transparency and clarity of their financial statements clearly show the value-creation resulting from the combination of multiple businesses.
A)True
B)False
Q3) The ultimate test of the value of a corporate-level strategy is whether the:
A) corporation earns a great deal of money.
B) top management team is satisfied with the corporation's performance.
C) businesses in the portfolio are worth more under the management of the company in question than they would be under any other ownership.
D) businesses in the portfolio increase the firm's financial returns.
Q4) What is the effect of a firm's low performance on the pursuit of diversification?
Q5) What are the managerial motives to diversify?
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Page 8
Chapter 7: Merger and Acquisition Strategies
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) Describe how an acquisition program can result in managerial time and energy absorption.
Q2) Research suggests that government ownership of emerging economy firms leads to overpayment in cross-border acquisitions and that overpayment reduces value for minority shareholders (nongovernment shareholders).
A)True
B)False
Q3) Cross-border acquisitions are primarily made to:
A) reshape the firm's competitive scope.
B) reduce the cost of new product development.
C) take advantage of higher education levels of labor in developed countries.
D) overcome barriers to entry in another country.
Q4) An acquisition occurs when one firm buys a controlling or 100 percent interest in another firm and the acquired firm becomes a subsidiary business.
A)True
B)False
Q5) What are the attributes of a successful acquisition program?
Q6) Describe the seven problems in achieving a successful acquisition.
Q7) What is restructuring and what are its common forms?
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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) Research suggests that the performance of the global strategy is enhanced if it deploys in areas where regional integration across countries is occurring.
A)True
B)False
Q2) In France, fine dressmaking and tailoring have been a tradition predating Queen Marie Antoinette. Cloth manufacturers, design schools, craft apprenticeship programs, modeling agencies, and so forth, all exist to supply the clothing industry. This is an example of the ____ in Porter's model.
A) strategy, structure, and rivalry among firms
B) related and supporting industries
C) demand conditions
D) factors of production
Q3) The high cost of transportation, expense of tariffs, and loss of control are three disadvantages of exporting.
A)True
B)False
Q4) What are the incentives for firms to use international strategies? What are the three basic benefits firms can derive by moving into international markets?
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Chapter 9: Cooperative Strategy
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123 Verified Questions
123 Flashcards
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Sample Questions
Q1) Stable alliance networks will most often:
A) be used to enhance a firm's internal operations.
B) appear in mature industries where demand is relatively constant and predictable.
C) emerge in industries with short product life cycles.
D) emerge in declining industries as a way to increase process innovations.
Q2) Only about 50 percent of cooperative strategies succeed.
A)True
B)False
Q3) A firm creates a competitive advantage when it develops and manages corporate-level cooperative strategies in a way that is valuable, rare, imperfectly imitable, and nonsubstitutable.
A)True
B)False
Q4) According to the Chapter 9 Mini Case, in addition to their corporate-level alliance, Renault and Nissan have each formed vertical complementary strategic alliances with other companies.
A)True
B)False
Q5) Identify and define the two different types of network strategies.
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Chapter 10: Corporate Governance
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142 Verified Questions
142 Flashcards
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Sample Questions
Q1) Corporate governance revolves around the relationship between which two parties?
A) Shareholders and the Board of Directors
B) Shareholders and managers
C) The Board of Directors and managers
D) None of the the above
Q2) Recent emphasis on corporate governance stems mainly from the failure of corporate governance mechanisms to adequately monitor and control top-level managers' decisions.
A)True
B)False
Q3) A hostile takeover defense wherein the target firm makes its stock less attractive to a potential acquirer is called:
A) greenmail.
B) a standstill agreement.
C) crossing the palm with silver.
D) a poison pill.
Q4) Briefly compare and contrast corporate governance in the United States, Germany, and Japan, and China.
Q5) Describe the market for corporate control and its implications for organizations.
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Chapter 11: Organizational Structure and Controls
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136 Verified Questions
136 Flashcards
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Sample Questions
Q1) TheLG Company has units operating in significantly different industries and uses financial controls to manage its portfolio. LG is most likely using the ______ structure.
A) combination-matrix
B) cooperative form of the multidivisional
C) competitive form of the multidivisional
D) strategic business unit multidivisional
Q2) The divisions within each SBU are related in terms of shared products or markets, but the divisions of one SBU have little in common with the divisions of the other SBUs.
A)True
B)False
Q3) ____ is the degree to which decision-making authority is retained at higher managerial levels.
A) Formalization
B) Centralization
C) Specialization
D) Unification
Q4) 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
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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) Managerial actions that support development of an ethical organizational culture include all of the following EXCEPT:
A) establishing a code of conduct.
B) disseminating the code of conduct to all stakeholders to inform them of the firm's ethical standards and practices.
C) creating a work environment in which people are treated with dignity.
D) disciplining whistle-blowers.
Q3) What is strategic leadership, who has primary responsibility for strategic leadership, and what are the five key strategic leadership actions?
Q4) Define human capital and its importance to the firm's success.
Q5) The balanced scorecard focuses on both financial and non-financial controls. A)True B)False
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Chapter 13: Strategic Entrepreneurship
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) The firm's culture promotes unity of purpose for cross-functional work teams through:
A) a collectivist structure.
B) an entrepreneurial mind-set.
C) shared values.
D) resource allocation.
Q2) Products developed through ______ are often offered at lower prices without as many features as products developed through ______.
A) innovation; imitation
B) imitation; invention
C) imitation; innovation
D) innovation; invention
Q3) Acquisitions are a low-risk approach to producing and managing innovation. A)True
B)False
Q4) According to Peter Drucker,the primary goal of innovation is to:
A) promote social well-being.
B) increase the number of jobs.
C) create wealth.
D) support national economies.
Page 15
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