Corporate Strategy
Final Test Solutions
Course Introduction
Corporate Strategy explores the key decisions and frameworks that guide organizations in achieving long-term competitive advantage and growth. The course examines topics such as industry analysis, diversification, mergers and acquisitions, international expansion, and strategic alliances. Students will analyze real-world case studies to understand how firms formulate and implement strategies at the corporate level, align their resources with evolving market opportunities, and navigate challenges in complex, multi-business environments. Through critical discussion and applied learning, participants will develop the skills necessary to assess, design, and execute corporate strategies in dynamic and competitive global markets.
Recommended Textbook
Strategic Management Concepts and Cases Competitiveness and Globalization 9th Edition by
Available Study Resources on Quizplus
13 Chapters
1950 Verified Questions
1950 Flashcards
Source URL: https://quizplus.com/study-set/705 Page 2
Chapter 1: Strategic Management and Strategic Competitiveness
Available Study Resources on Quizplus for this Chatper
130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/13762
Sample Questions
Q1) What are a firm's vision and mission? What is the value to the firm of having a specified vision and mission?
Answer: The firm's vision is a picture of what it wants to be and what it wants to ultimately achieve. The firm's mission is based on its vision. It specifies the business(es) in which the firm intends to compete and the customers it intends to serve. The value of having a vision and mission is that they inform stakeholders what the firm is, what it seeks to accomplish, and who it seeks to serve. A successful vision is inspirational. The mission is more concrete and guides employees' behavior as they achieve the firm's vision. Research shows that an effectively formed vision and mission positively impact firm performance in terms of growth in sales, profits, employment, and net worth.
Q2) The assumptions of the industrial organizational model and the resource-based model are contradictory. Therefore, organizational strategists must choose one or the other model as the basis for developing a strategic plan.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: The External Environment: Opportunities,
Threats, Industry Competition, and Competitor Analysis
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/13763
Sample Questions
Q1) (Refer to the above Case Scenario) Using the five-forces framework, summarize the opportunities and threats facing Barracuda as it considers entry into the home furnishings manufacturing industry. Which threats are greatest to current incumbents?
Answer: The best answers will be based on an application of the five forces model to the scenario. From this model students should be able to point out that the most significant threats are the power of consumers, lack of economic power with suppliers, and increasing presence of imports. These characteristics plus the highly fragmented nature of the industry itself are likely to translate into near-perfect competition leaving no single player with a clear advantage. Opportunities may exist in particular niches, depending on the internal strengths of new entrants. In terms of the larger market, there appears to be an opportunity for a large firm to consolidate the industry and add brand power, thereby potentially gaining power over suppliers and customers.
Q2) A high threat of new entrants keeps pricing pressures on existing firms, keeping consumers happy and making the industry attractive and profitable.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages
Available Study Resources on Quizplus for this Chatper
153 Verified Questions
153 Flashcards
Source URL: https://quizplus.com/quiz/13764
Sample Questions
Q1) Of Southwest Airline's competitors, Ryanair has been the most successful at imitating Southwest's low-cost strategy.
A)True
B)False
Answer: True
Q2) How many core competencies should a firm seek to develop?
A) 1 or 2
B) 3 or 4
C) 5 or 6
D) As many as possible.
Answer: B
Q3) Examples of support activities include all of the following EXCEPT
A) technology development.
B) human resource management.
C) service after the sale.
D) procurement.
Answer: C
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Business Level Strategy
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/13765
Sample Questions
Q1) Describe the additional risks undertaken by firms pursuing a focus strategy.
Q2) Business-level strategy can be thought of as the firm's core strategy.
A)True
B)False
Q3) Subway is targeting a more narrow market segment among college students than the segment on which McDonald's focuses. Subway is focusing on students interested in healthy fast food. To select this business strategy, Subway would have used information from all the following categories EXCEPT
A) demographic factors.
B) psychological factors.
C) consumption-pattern factors.
D) end-use segments.
Q4) Which of the following is NOT a value-creating activity associated with the differentiation strategy?
A) intensive training programs to improve employee effectiveness and efficiency
B) strong capability in basic research
C) rapid and timely deliveries to customers
D) procurement systems focused on finding the highest quality raw materials
Q5) Describe the advantages of integrating cost leadership and differentiation strategies.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Competitive Rivalry and Competitive Dynamics
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/13766
Sample Questions
Q1) It is more likely that locally-owned, one-location cafes in a small town will respond more rapidly to tactical actions by each other than they will to strategic actions by the Burger King franchise that has recently moved to their town.
A)True
B)False
Q2) On the whole there are more competitive responses to A) strategic actions than to tactical actions.
B) tactical actions than to strategic actions.
C) buyer pressures than to supplier pressures.
D) the demands of the top management team than to industry structural pressures.
Q3) Firms with high market commonality and highly similar resources are direct and mutually acknowledged competitors.
A)True
B)False
Q4) In general, strategic actions elicit fewer competitive responses than do tactical actions.
A)True
B)False
Q5) Define awareness, motivation and ability in reference to competitive behavior.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Corporate-Level Strategy
Available Study Resources on Quizplus for this Chatper
166 Verified Questions
166 Flashcards
Source URL: https://quizplus.com/quiz/13767
Sample Questions
Q1) The use of e-commerce to allow firms to reduce the costs of processing transactions while improving their supply-chain management skills and tightening the control of their inventories is beginning to replace
A) outsourcing.
B) unrelated diversification.
C) de-integration.
D) vertical integration.
Q2) A major advantage of diversification is that overall monitoring costs are reduced, since each separate business comes under the control of corporate headquarters.
A)True
B)False
Q3) Vertical integration exists when a company produces its own inputs (forward integration) or owns its own source of output distribution (backward integration).
A)True
B)False
Q4) What is the effect of a firm's low performance on the pursuit of diversification?
Q5) What are the five categories of businesses based on level of diversification?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Merger and Acquisition Strategies
Available Study Resources on Quizplus for this Chatper
162 Verified Questions
162 Flashcards
Source URL: https://quizplus.com/quiz/13768
Sample Questions
Q1) Private synergies exist between a potential acquisition target and all firms seeking to acquire it.
A)True
B)False
Q2) With an interest of refocusing on technologies that can grow its businesses, Motorola is divesting assets that are not related to its core businesses. This is an example of a downscoping strategy.
A)True
B)False
Q3) Evidence suggests that returns to shareholders of acquired firms are greater than those for acquiring firms.
A)True
B)False
Q4) A friendly acquisition
A) raises the price that has to be paid for a firm.
B) enhances the complementarity of the two firms' assets.
C) facilitates the integration of the acquired and acquiring firms.
D) allows joint ventures to be developed.
Q5) Identify and explain the seven reasons firms engage in an acquisition strategy.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: International Strategy
Available Study Resources on Quizplus for this Chatper
162 Verified Questions
162 Flashcards
Source URL: https://quizplus.com/quiz/13769
Sample Questions
Q1) In Porter's model, a specialized factor of production would include A) abundant natural resources.
B) a large workforce.
C) an extensive highway transportation system.
D) workers with advanced engineering skills.
Q2) Italy has become the leader in the shoe industry because of related and supporting industries such as a well-established leather-processing industry which provides the leather needed to construct shoes and related products.
A)True
B)False
Q3) The primary reason for investing in international markets is to generate above-average returns on investments.
A)True
B)False
Q4) As a general rule of thumb, if a company cannot make a profit in its home market, it cannot make a profit in the international market.
A)True
B)False
Q5) Discuss the effect of international diversification on a firm's returns.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Cooperative Strategy
Available Study Resources on Quizplus for this Chatper
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/13770
Sample Questions
Q1) Firms entering into synergistic strategic alliances expect to attain
A) technological complexity.
B) economies of scope.
C) monopolistic market power.
D) learning curve efficiencies.
Q2) Nonequity strategic alliances exist when two or more firms join together to create an independent firm.
A)True
B)False
Q3) Mutual forbearance is a form of explicit collusion between firms in which competitors avoid attacking rivals they meet in multiple markets.
A)True
B)False
Q4) (Refer to the above Case Scenario ) What should Bunnywac's strategy be with regard to the lapsing technology contract?
Q5) A cooperative strategy is a means by which firms work together to achieve a shared objective.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Corporate Governance
Available Study Resources on Quizplus for this Chatper
166 Verified Questions
166 Flashcards
Source URL: https://quizplus.com/quiz/13771
Sample Questions
Q1) Large-block shareholders typically own at least 5% of a corporation's issued shares. .
A)True
B)False
Q2) If a stakeholder is dissatisfied with a firm, it will withdraw its support and give it to another firm.
A)True
B)False
Q3) Stock options attempt to align managers' and owners' interests by tying managerial compensation and firm performance together.
A)True
B)False
Q4) Given the demands for greater accountability and improved performance, which of the following is NOT a voluntary change many boards of directors have initiated?
A) moving toward having directors from different backgrounds
B) strengthening the internal management and accounting control systems
C) compensating directors with stock options rather than with fixed remuneration
D) establishing and using formal processes to evaluate the board's performance
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Organizational Structure and Controls
Available Study Resources on Quizplus for this Chatper
153 Verified Questions
153 Flashcards
Source URL: https://quizplus.com/quiz/13772
Sample Questions
Q1) The noted business historian Alfred Chandler viewed the multidivisional structure as an innovative response to
A) an emerging professional management philosophy.
B) the increasing demand by consumers for both quality and low-price.
C) coordination and control problems.
D) a shift toward the global economy.
Q2) Which of the following is NOT associated with an organizational structure that supports a cost leadership strategy?
A) centralization
B) specialization
C) formalization
D) integration
Q3) If firms band together in a large number of vertical complementary strategic alliances, there is a danger that the government will suspect them of illegal collusive activities.
A)True
B)False
Q4) Describe the organizational structure associated with a firm that pursues an unrelated diversification strategy.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Strategic Leadership
Available Study Resources on Quizplus for this Chatper
142 Verified Questions
142 Flashcards
Source URL: https://quizplus.com/quiz/13773
Sample Questions
Q1) Evidence suggests that women are a qualified source of talent as strategic leaders that have been fully utilized especially given the current competitive landscape.
A)True
B)False
Q2) An organization's ____ is composed of the key individuals who are responsible for selecting and implementing the firm's strategies.
A) top management team
B) board of directors
C) keiretsu
D) governance circle
Q3) The most effective leadership style is ____ leadership.
A) pragmatic
B) charismatic
C) inspirational
D) transformational
Q4) (Refer to the above Case Scenario ) What culture did Mogens and Jack nurture in YTF?
Q5) Define human capital and its importance to the firm's success.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Strategic Entrepreneurship
Available Study Resources on Quizplus for this Chatper
147 Verified Questions
147 Flashcards
Source URL: https://quizplus.com/quiz/13774
Sample Questions
Q1) ____ is(are) critical in order for a firm to gain access to complementary resources from partners in a cooperative alliance.
A) Social capital
B) Shared values
C) An entrepreneurial mind-set
D) Compatible organizational cultures
Q2) In the chapter Strategic Focus, which of the following best characterizes Exxon-Mobil's approach to innovation?
A) the use of autonomous strategic behavior
B) the use of product champions
C) development of radical innovations
D) development of incremental innovations
Q3) As a process, entrepreneurship results in the "creative destruction" of existing products (goods or services) or methods of producing them and replaces them with new products and production methods.
A)True
B)False
Q4) (Refer to the above Case Scenario ) What resources do Wim and Cathy bring to their venture?
To view all questions and flashcards with answers, click on the resource link above. Page 15