Corporate Strategy Review Questions
Course Introduction
Corporate Strategy is a comprehensive course exploring the development, implementation, and evaluation of strategies at the highest levels of the organization. Students will examine frameworks and tools used to analyze competitive environments, assess corporate resources, and determine opportunities for growth through diversification, mergers, acquisitions, and international expansion. Emphasizing real-world case studies and contemporary challenges, the course equips students with the analytical skills and strategic mindset necessary to guide organizations in an increasingly complex and dynamic marketplace.
Recommended Textbook
Strategic Management and Competitive Advantage Concepts and Cases 5th Edition by Jay B.
Available Study Resources on Quizplus
11 Chapters
1088 Verified Questions
1088 Flashcards
Source URL: https://quizplus.com/study-set/1408
Page 2
Chapter 1: What Is Strategy and the Strategic Management Process
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/27981
Sample Questions
Q1) Objectives are the specific measurable targets a firm can use to evaluate the extent to which it is realizing its mission.
A)True
B)False
Answer: True
Q2) ________ are specific measurable targets a firm can use to evaluate the extent to which it is realizing its mission.
A) Strategies
B) Missions
C) Competitive advantages
D) Objectives
Answer: D
Q3) High quality objectives are those that are
A) tightly connected to elements of a firm's mission and are relatively easy to measure and track over time.
B) difficult to measure and track over time.
C) non-existent.
D) not quantitative.
Answer: A
Page 3
To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: Evaluating a Firms External Environment
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/27982
Sample Questions
Q1) Industries in which a large number of small or medium-sized firms operate and no small set of firms has dominant market share or creates dominant technologies are called ________ industries.
A) fragmented
B) mature
C) emerging
D) declining
Answer: A
Q2) In the structure-conduct-performance model, the term "structure" refers to industry structure, which can be measured by such factors as the number of competitors in an industry.
A)True
B)False
Answer: True
Q3) In this example, composite wood furniture would be an example of a(n)
A) substitute.
B) rival.
C) new entrant.
D) complementor.
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Evaluating a Firms Internal Capabilities
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/27983
Sample Questions
Q1) The interpersonal relations among managers in a firm, a firm's culture, and a firm's reputation among suppliers and customers can all act to make a firm's resources and capabilities socially complex.
A)True
B)False Answer: True
Q2) Within the VRIO framework, resources and capabilities that are not valuable are also known as weaknesses.
A)True
B)False Answer: True
Q3) If in the process of maximizing its performance, a firm engages in activities that pollute the environment, the impact of that pollution is a(n)
A) capability.
B) externality.
C) competitive advantage.
D) weakness.
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Cost Leadership
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/27984
Sample Questions
Q1) A cost-leadership competitive strategy can reduce both the threat of substitutes and the threat of suppliers that a firm may face.
A)True
B)False
Q2) Firms that are successful in pursuing a cost-leadership strategy focus solely on keeping costs low and abandoning other business or corporate strategies.
A)True
B)False
Q3) ________ focus(es) on the relationship between the volume of production at a given point in time and average unit costs, the ________ focus(es) on the relationship between the cumulative volume of production and average unit costs.
A) Economies of scale; learning curve
B) Competitive advantage; economies of scale
C) Learning curve; economies of scale
D) Economies of scale; competitive advantage
Q4) Cost advantages based on diseconomies of scale are likely to be rare.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Product Differentiation
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/27985
Sample Questions
Q1) The most obvious way that firms can try to differentiate their products is by
A) making the product more complex.
B) introducing the product at the right time.
C) customizing the product for a particular segment.
D) altering the features of the products they sell.
Q2) Through which bases of competitive advantage do firms attempt to alter the perceptions of current and potential customers, whether or not specific attributes of a firm's products or services are altered?
A) reputation
B) location
C) product customization
D) consumer marketing
Q3) If products or services are perceived as being different in a way that is valued by customers, even if there is no physical differentiation, then product differentiation exists.
A)True
B)False
Q4) Product differentiation can lead to high market share and low costs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Vertical Integration
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/27986
Sample Questions
Q1) If Iron Horse Helmets (IHH) were to contract with a Chinese manufacturing firm to provide IHH with superior quality helmets for sale in the United States but discovered that the shipments were actually of inferior quality when they were received, IHH would be said to be acting opportunistically.
A)True
B)False
Q2) Firms should not vertically integrate into business activities where they do not possess the resources necessary to gain competitive advantages.
A)True
B)False
Q3) When companies staffed and operated their own call centers in the United States, they were engaging in backward vertical integration, but when they started using independent companies in India to staff and operate these centers, they were more vertically integrated.
A)True
B)False
Q4) Strategic alliances are the major substitute for vertical integration.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Corporate Diversification
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/27987
Sample Questions
Q1) Which type of economies of scope is Peach Computers experiencing between its units?
A) shared activities
B) core competencies
C) multipoint competition
D) tax advantages
Q2) Core competencies are complex sets of resources and capabilities that link different businesses in a diversified firm through managerial and technical know-how, experience, and wisdom.
A)True
B)False
Q3) A dominant-business firm is pursuing a related diversification strategy and has between 70 and 95 percent of firm revenues from a single business.
A)True
B)False
Q4) Exploiting market power is an example of costly-to-duplicate economies of scope.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 8: Organizing to Implement Corporate
Diversification
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/27988
Sample Questions
Q1) Divisions in an M-form organization should be large enough to represent identifiable business entities but small enough so that a division general manager can manage each one effectively.
A)True
B)False
Q2) Institutional owners are usually pension funds, mutual funds, insurance companies, or other groups of investors that have joined together to manage their investments.
A)True
B)False
Q3) Traditionally, the compensation of corporate managers in a diversified firm has been only loosely connected to the firm's economic performance.
A)True
B)False
Q4) Discuss the importance of compensation policies in diversified firms and identify the CEO compensation package that most closely aligns the interests of the CEO with those of stockholders.
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Strategic Alliances
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/27989
Sample Questions
Q1) Alliances will be preferred to going it alone when
A) the level of transaction-specific investments required to complete an exchange is low.
B) there are no transaction-specific investments required to complete an exchange is low.
C) when there is low uncertainty about the future value of an exchange.
D) the level of transaction-specific investments required to complete an exchange is moderate.
Q2) The rarity of strategic alliances
A) depends solely on the number of competing firms that have already implemented an alliance.
B) depends solely on whether or not the benefits that firms obtain from their alliances are not common across firms in the industry.
C) depends not only on the number of competing firms that have already implemented an alliance but also on whether or not the benefits that firms obtain from their alliances are common across competing firms in the industry.
D) depends solely on the number of substitutes available for alliances.
Q3) Discuss when strategic alliances may be costly to directly duplicate.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Mergers and Acquisitions
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/27990
Sample Questions
Q1) The price of each of a firm's shares multiplied by the number of shares outstanding represents the firm's
A) total equity base.
B) current market value.
C) total market share.
D) current market share.
Q2) The most significant challenge in integrating bidding and target firms has to do with A) accounting differences.
B) cultural differences.
C) operational differences.
D) logistic differences.
Q3) When acquiring a publicly traded firm a bidder has to release all the information it has about the potential value of that target in combination with itself.
A)True
B)False
Q4) Identify and discuss six rules that firms bidding on a target firm in an acquisition should follow to increase the possibility that an acquisition strategy will earn superior performance.
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: International Strategies
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/27991
Sample Questions
Q1) Strategic alliances fall within the ________ governance option for firms pursuing international strategies.
A) corporate
B) market
C) intermediate market
D) hierarchical
Q2) International strategies are typically limited to just huge multinational companies.
A)True
B)False
Q3) A multinational strategy exploits all the advantages of both international integration and local responsiveness.
A)True
B)False
Q4) In 2012, more than 50 percent of General Motor's automobile sales came from outside the United States.
A)True
B)False
Q5) What is countertrade? How is it useful in international business?
To view all questions and flashcards with answers, click on the resource link above. Page 13