Management Capstone Test Preparation
Course Introduction
Management Capstone is a culminating course that challenges students to integrate and apply the knowledge, skills, and analytical tools gained throughout their management studies. Through comprehensive case studies, real-world projects, and collaborative decision-making, students address complex organizational issues, develop strategic solutions, and refine their leadership abilities. Emphasizing critical thinking, ethical reasoning, and effective communication, this course prepares students for successful transition into professional management roles by fostering practical experience and advanced problem-solving competence.
Recommended Textbook
Strategic Management Theory and Cases An Integrated Approach 12th Edition by Charles
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12 Chapters
895 Verified Questions
895 Flashcards
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Page 2
W. L.
Chapter 1: Strategic Leadership: Managing the
Strategy-Making Process for Competitive Advantage
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81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/3987
Sample Questions
Q1) More people seem to fear a snake bite than a dog bite, and yet statistically one is more likely to be bitten by a dog than by a snake. This is because people tend to estimate the probability of an outcome based on how easy the outcome is to imagine. This represents which of the following cognitive biases?
A) Escalating commitment
B) Hypothesis bias
C) Availability error
D) Representativeness
E) Illusion of control
Answer: C
Q2) To increase shareholder value, managers must try to venture into new markets whether the results are profitable or not.
A)True
B)False
Answer: False
Q3) Emergent strategies arise from within the company as a result of prior planning. A)True
B)False
Answer: False
Page 3
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Chapter 2: External Analysis: The Identification of Opportunities and Threats
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81 Verified Questions
81 Flashcards
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Sample Questions
Q1) In Porter's competitive forces framework, the stronger the five forces, the ability of established companies to raise prices and earn greater profits becomes more limited.
A)True
B)False
Answer: True
Q2) Starbucks and an independent local café are different in terms of their business techniques. They both sell coffee, and therefore belong to the same strategic group.
A)True
B)False
Answer: False
Q3) The threat from potential competitors is greatest in the _____ stage of the industry life cycle.
A) embryonic
B) growth
C) shakeout
D) maturity
E) decline
Answer: B
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Chapter 3: Internal Analysis: Resources and Competitive Advantage
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79 Verified Questions
79 Flashcards
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Sample Questions
Q1) When Rollie's car wash began to lose business to rivals, Rollie read publications for car wash owners to learn the best practices in the industry. Then she implemented the best practices. Rollie is using ____ to improve her car wash.
A) specialized assets
B) benchmarking
C) strategic commitments
D) inertia
E) the Icarus paradox
Answer: B
Q2) Cost accountants are responsible for gathering and monitoring data used for controlling the organization's costs. In which value chain activity do cost accountants work?
A) Research and development
B) Human resources
C) Materials management
D) Marketing and sales
E) Company infrastructure
Answer: E
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Chapter 4: Building Competitive Advantage Through Functional-Level Strategies
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75 Verified Questions
75 Flashcards
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Sample Questions
Q1) Six Sigma is a quality and efficiency program derived from the concept of Total Quality Management, and was widely used in Japan before acceptance in the U.S.
A)True
B)False
Q2) ____ refers to unit cost increases associated with a large scale of output.
A) Economies of scale
B) Learning effects
C) Diseconomies of scale
D) Flexible manufacturing
E) Mass customization
Q3) The experience curve refers to the:
A) learning by doing technique.
B) company's overall experience in a particular industry.
C) systematic lowering of the cost structure and unit cost reductions.
D) diseconomies of scale caused by inexperienced workers.
E) increases in unit costs experienced over time.
Q4) Identify the two dimensions of quality and describe how companies can achieve them.
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Chapter 5: Business-Level Strategy
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74 Verified Questions
74 Flashcards
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Sample Questions
Q1) Standardization describes what happens when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible.
A)True
B)False
Q2) A firm's business model should contain three components: what is to be satisfied, who is to be satisfied, and how they will be satisfied.
A)True
B)False
Q3) A differentiated product is a product that:
A) has a greater resale value than rival products.
B) provides greater reliability than rival products.
C) is offered free of cost on purchase of a company's standard product.
D) always costs more than rival products.
E) always costs less than rival products.
Q4) All focus strategies entail serving a specific market segment using a differentiation approach.
A)True
B)False
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Chapter 6: Business-Level Strategy and the Industry Environment
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82 Verified Questions
82 Flashcards
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Sample Questions
Q1) To compete in the fragmented restaurant industry, Starbucks built, and now operates hundreds of restaurants across the United States and Canada. Which of the following strategies is Starbucks using ?
A) Acquisitions
B) Horizontal mergers
C) Franchising
D) Licensing
E) Chaining
Q2) The goal for companies in the growth stage of the industry life cycle is to maintain its relative competitive position in a rapidly expanding market.
A)True
B)False
Q3) A divestment strategy's success is often dependent upon good timing.
A)True
B)False
Q4) Innovators and early adopters have very different customer needs from the early majority.
A)True
B)False
Page 8
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Chapter 7: Strategy and Technology
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73 Verified Questions
73 Flashcards
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Sample Questions
Q1) Which of the following strategies should a company NOT adopt if it wants to win a format war?
A) Developing killer applications
B) Developing complementary products
C) Joining forces with other companies to develop new technologies
D) Aggressively marketing to jump-start demand
E) Charging extremely high license fee for the technology
Q2) The law of diminishing returns states that marginal costs fall as a company tries to expand output.
A)True
B)False
Q3) One strategy for success in high-tech industries is to keep prices low in order to increase sales volume.
A)True
B)False
Q4) Marginal costs in high-technology industries tend to stay very low as production rises.
A)True B)False
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Chapter 8: Strategy in the Global Environment
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67 Verified Questions
67 Flashcards
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Sample Questions
Q1) Which of the following statements is true about global standardization strategy?
A) It emphasizes product customization to specifically meet customer needs.
B) It involves the spreading of production, marketing, and research and development activities of companies to all the location it operates in.
C) It makes most sense when there are strong pressures for cost reductions.
D) It makes most sense when the pressures for local responsiveness are maximum.
E) It fails to focus on achieving location and scale economies.
Q2) The globalization of production has been decreasing as companies have been facing lower barriers to international trade and location economies.
A)True
B)False
Q3) An international strategy may not be viable in the long term, but companies that can pursue it need to shift toward a global standardization strategy to survive.
A)True
B)False
Q4) When a company licenses its technology it can quickly lose control over it.
A)True
B)False
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Chapter 9: Corporate-Level Strategy: Horizontal Integration,
Vertical Integration, and Strategic Outsourcing
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71 Verified Questions
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Sample Questions
Q1) Oracle Corp., based in Reno, Nevada, has purchased several other companies to become the world's largest maker of database software. This strategy is known as the strategy of acquisition.
A)True
B)False
Q2) Companies that outsource most or all of their value creation activities are often referred to as virtual corporations.
A)True
B)False
Q3) Horizontal integration can lead to low cost advantages but rarely to differentiation advantages.
A)True
B)False
Q4) When a company outsources its noncore activities to specialists, it loses its capabilities to differentiate its final products.
A)True
B)False
Q5) How can strategic outsourcing strengthen a company's business model and increase its profitability?
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Chapter 10: Corporate-Level Strategy: Related and Unrelated Diversification
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73 Verified Questions
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Sample Questions
Q1) A company's top managers do not need to have entrepreneurial capabilities for diversification to increase profitability.
A)True
B)False
Q2) The coordination required to realize value from a diversification strategy based on transferring, sharing, or leveraging competencies is a major source of bureaucratic costs.
A)True B)False
Q3) Company leaders that base their diversification strategy on transferring competencies tend to acquire new businesses that are ____ to their existing business activities.
A) unrelated
B) not comparable
C) opposed
D) related
E) identical
Q4) Free cash flow refers to additional funds from a government stimulus program.
A)True B)False
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Chapter 11: Corporate Performance, Governance, and Business Ethics
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68 Verified Questions
68 Flashcards
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Sample Questions
Q1) Which of the following statements is true about takeover constraint?
A) It encourages managers to put their own interests above those of stockholders.
B) It usually occurs when the management has maximized the wealth of the stockholders.
C) It often gives senior managers more independence when it comes to granting stock options.
D) It has ceased to exist in companies since the late 1990s.
E) It is the governance mechanism of last resort invoked only when the others have failed.
Q2) Agency theory offers a way of understanding why managers do not always act in the best interests of stakeholders.
A)True
B)False
Q3) Stockholders receive a return on their investment in a company's stock from dividend payments and capital appreciation.
A)True
B)False
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Page 13
Chapter 12: Implementing Strategy Through Organization
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71 Verified Questions
71 Flashcards
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Sample Questions
Q1) In a multidivisional structure, corporate managers can compare the performance of one division to another in terms of its cost structure or the profit it generates.
A)True
B)False
Q2) To reduce costs, companies pursuing a cost leadership strategy prefer to use _____ to closely monitor and evaluate functional performance.
A) output controls
B) personal controls
C) behavioral controls
D) cultural controls
E) input controls
Q3) Delayering always involves flattening the organizational hierarchy and downsizing the work force.
A)True
B)False
Q4) Organizational structure is at the core of an organizations architecture.
A)True
B)False
Q5) Identify and discuss the three building blocks of organizational structure.
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