Corporate Strategy
Solved Exam Questions
Course Introduction
Corporate Strategy explores the foundational principles and advanced concepts involved in formulating and implementing overarching strategies that drive long-term growth, competitiveness, and value creation within diversified organizations. The course examines key decisions related to industry and market analysis, mergers and acquisitions, diversification, global expansion, strategic alliances, and corporate governance. Through case studies and real-world examples, students learn how top management aligns resources, structures, and capabilities to achieve synergies across business units, respond to external challenges, and sustain superior performance in dynamic environments.
Recommended Textbook
Strategic Management 4th Edition by
Frank Rothaermel
Available Study Resources on Quizplus
12 Chapters
1217 Verified Questions
1217 Flashcards
Source URL: https://quizplus.com/study-set/192
Page 2
Chapter 1: What Is Strategy
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2745
Sample Questions
Q1) Rapida Inc. and Click Inc. are two companies that have been manufacturing typewriters for almost 30 years. Due to the reduced demand for typewriters today, both companies' average return on invested capital is approximately -5 percent. The current industry average is 2 percent. In this scenario, Rapida Inc. and Click Inc. most likely have A) competitive advantage over other firms in their industry.
B) competitive parity with each other.
C) strategic alliance with each other.
D) economies of scope instead of economies of scale.
Answer: B
Q2) ________ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.
A) Behavior modification
B) Strategy
C) Credo
D) Competency management
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Strategic Leadership: Managing the Strategy Process
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/2746
Sample Questions
Q1) Organic Food Inc., a multinational company, relies on its media partner Radio Plus to regularly advertise its offers, sales, and new products. Radio Plus is invested in this relationship because it generates most of its revenue from advertising Organic Food's products. In this scenario, Radio Plus is Organic Food Inc.'s A) stockholder.
B) workforce.
C) internal stakeholder.
D) external stakeholder.
Answer: D
Q2) Discuss the pyramid of corporate social responsibility (CSR).
Answer: The pyramid summarizes the four components of corporate social responsibility. Economic responsibilities are the foundational building block, followed by legal, ethical, and philanthropic responsibilities. Society and shareholders require economic and legal responsibilities. Ethical and philanthropic responsibilities result from a society's expectations toward business. The pyramid of CSR symbolizes the need for firms to carefully balance their social responsibilities. Doing so ensures not only effective strategy implementation, but also long-term viability.
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: External Analysis: Industry Structure,
Competitive Forces, and Strategic Groups
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/2747
Sample Questions
Q1) The government of Filvia has mandated that the standard minimum wage in the country be increased to $8,000 per year. Which of the following factors in a firm's general environment does this mandate best indicate?
A) ecological factors
B) sociocultural factors
C) technological factors
D) legal factors
Answer: D
Q2) Managers at Sandburg Real Estate are surprised to hear that interest rates are likely to remain low for the next six months. Which of the following is an implication of low interest rates?
A) Cost of capital for firms will be high.
B) Firms will invest less in future growth.
C) Economic growth rate will fall.
D) Consumer demand will increase.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Internal Analysis: Resources, Capabilities, and Core Competencies
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/2748
Sample Questions
Q1) Which of the following statements accurately brings out the difference between tangible and intangible resources?
A) Tangible resources contribute to a company's competitive advantage, whereas intangible resources have little effect on competitive advantage.
B) Tangible assets can be bought on the open market by anyone with the necessary cash, whereas intangible assets cannot be easily purchased.
C) Tangible resources take a longer time to build, whereas intangible assets can be built comparatively easily.
D) Tangible assets are difficult for competitors to imitate, whereas intangible assets can be easily replicated.
Q2) Intellectual property (IP) protections such as trademarks or patents are proven methods of establishing permanent barriers to imitation.
A)True
B)False
Q3) Explain how the activities of a firm help in achieving a competitive advantage.
Q4) Elaborate on time compression diseconomies.
Q5) In the context of the VRIO Framework, what does a valuable resource mean?
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Competitive Advantage, Firm Performance, and Business Models
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2749
Sample Questions
Q1) Discuss the four key questions managers need to answer when using the balanced scorecard to develop strategic objectives.
Q2) Competitive advantage goes to the firm that maximizes the difference between the cost of producing a good and the retail price that consumers pay.
A)True
B)False
Q3) Which of the following scenarios best illustrates bundling?
A) Clean Brush Inc. sells its electric toothbrushes for a low cost, but charges a high price for replacement brushes.
B) Cumulus Media Inc. sells its cloud computing network by having customers pay for the service as they use it.
C) Sharp Cable Inc. sells its basic TV channels for free but charges high prices for any channels that customers add on later.
D) Fresh Seeds Inc. sells seed packages, in which a person can buy a package of three types of seeds at a discounted price compared to buying the seeds individually.
Q4) What is the relationship between producer surplus and consumer surplus?
Q5) Explain how business models put strategy into action.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Business Strategy: Differentiation, Cost
Leadership, and Blue Oceans
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/2750
Sample Questions
Q1) Why is keeping its costs the lowest in the industry not the only focus of a firm pursuing cost-leadership strategy?
Q2) Which of the following drivers simultaneously increases value while lowering cost?
A) economies of scale
B) superior customer service
C) availability of complements
D) innovation
Q3) When a firm combines experience based learning and process innovation, the firm
A) jumps to a steeper learning curve.
B) experiences an increase in per-unit cost.
C) loses its competitive advantage.
D) moves down the existing learning curve.
Q4) Which of the following sources of differential appeal is least effective in helping a firm sustain its advantage?
A) reputation for innovation
B) reputation for quality
C) superior customer experience
D) observable product features
Q5) What is higher value associated with?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Business Strategy: Innovation, Entrepreneurship, and Platforms
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2751
Sample Questions
Q1) When does a firm fall into the large competitive chasm between early adopters and early majority?
A) when it cannot attract technological enthusiasts to try the beta versions of its products
B) when it creates strong network effects during the growth stage
C) when it fails to successfully launch a mass-market version of its product
D) when the early majority create herding effects for its products
Q2) Which of the following accurately describes how Netflix used innovation to gain a competitive advantage?
A) Netflix moved from content development to upgrading its data analytics to provide faster online streaming.
B) Netflix applied big data analytics to its user preferences to provide highly personalized viewing recommendations.
C) Netflix moved from online streaming to online DVD rentals via the Internet.
D) Netflix applied first mover advantages to lock up talent needed to produce original content for DVD rentals and online streaming.
Q3) In the introductory stage, the level of product innovation is at a maximum. Elaborate.
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 8: Corporate Strategy: Vertical Integration and Diversification
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2752
Sample Questions
Q1) Explain the two types of related diversification strategy with the help of examples.
Q2) Anita has been named CEO of a popular sports apparel company. As CEO, she is tasked with setting the firm's corporate strategy. Which of the following decisions is Anita most likely to make?
A) whether to pursue a differentiation or cost leadership strategy
B) which customer segments to target
C) how to achieve the highest levels of customer satisfaction
D) what range of products the firm should offer
Q3) A drawback of short-term contracting as an alternative to making a component in-house is that
A) it is the most-integrated alternative to performing an activity so the principal company has no control over the agent.
B) the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality.
C) it fails to allow a long planning period that individual market transactions provide.
D) the buying firm cannot demand lower prices due to the lack of a competitive bidding process.
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2753
Sample Questions
Q1) Judging from the Disney-Pixar merger, which of these is an effective way to create shareholder value from a merger?
A) Integrate the acquired company as fully as possible, merging staffs and locations, so that all employees have as similar an on-the-job experience as possible.
B) If the acquired company creates high-quality products or services, don't force it to mirror the management style of the acquiring company.
C) Cut prices at the acquired company but not the acquiring company so that the acquisition covers all consumer price points.
D) Raise consumer prices at the acquiring company and the acquired company to reflect the fact that the market is now less competitive.
Q2) Disney became the world's leading media company to a large extent by pursuing a corporate strategy of
A) related-linked diversification.
B) cost-leadership.
C) unrelated diversification.
D) hostile takeovers.
Q3) What does the relational view of competitive advantage propose?
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 10: Global Strategy: Competing Around the World
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2754
Sample Questions
Q1) Which of the following statements best explains why Walmart is finding it difficult to replicate its existing business model in India?
A) because of the political differences between India and the United States
B) because NAFTA prohibits Walmart from investing in countries outside North America
C) because of the large economic distance between the United States and India
D) because Indian consumers have not accepted Walmart's low-cost strategy
Q2) Calabash Inc. is located in the nation of West Fenwick near the nation of East Fenwick. Calabash is considering expanding into East Fenwick. Both countries have similar consumer incomes and knowledge bases and share a common language. Also, the transportation networks between the countries are strong. Even so, the two nations have a long-standing dispute concerning the control of an area of land along their common border. Currently, West Fenwick rules this land. Which of the following would most likely prevent Calabash from expanding into East Fenwick?
A) geographic distance
B) economic distance
C) political distance
D) cultural distance
Q3) What products and industries does geographic distance affect the most?
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Organizational Design: Structure, Culture, and Control
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/2755
Sample Questions
Q1) Which of the following accurately describes an organic organization?
A) an inflexible organization that fosters slow decision making and high employee motivation
B) an inflexible organization that fosters fast decision making and high employee motivation
C) a flexible organization that fosters slow decision making and high employee motivation
D) a flexible organization that fosters fast decision making and high employee motivation
Q2) Fine Lines Inc. is a notebook manufacturing company based in Ohio. Fine Lines' main market is Ohio. It aims at providing its products at better prices than its competitors. Which of the following structures is Fine Lines Inc. likely to use if it has functional setup?
A) organic
B) simple
C) matrix
D) mechanistic
Q3) What are the key elements of organizational structure? Define each element.
Q4) What is organizational culture? What are the key elements of organizational culture?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Corporate Governance and Business Ethics
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/2756
Sample Questions
Q1) How does GE exemplify the creation of a shared value creation framework?
Q2) Which of the following could most likely have prevented the accounting scandals of the early 2000s and the global financial crisis?
A) adopting a narrow shareholder perspective
B) separating economic interests and social needs
C) practicing effective corporate governance
D) adopting the principles of shareholder capitalism
Q3) How can a manager decide whether a decision is ethical?
Q4) Describe moral hazard in the context of the principal-agent relationship. Use an example.
Q5) How does a leveraged buyout affect a public company?
Q6) What do we call the board members who are part of a company's senior management team appointed by shareholders to provide the board with necessary information pertaining to the company's internal workings and performance?
A) investors
B) outside directors
C) inside directors
D) auditors
Q7) Describe the role of inside directors as part of a company's board of directors.
Page 14
To view all questions and flashcards with answers, click on the resource link above.