Strategic Management
Exam Practice Tests
Course Introduction
Strategic Management explores the formulation and implementation of organizational strategies to achieve long-term objectives and sustain competitive advantage. The course examines core concepts such as industry analysis, vision and mission development, strategic planning, and execution. Students learn how to assess internal and external environments, analyze resources and capabilities, and make informed decisions in complex and dynamic markets. Case studies and real-world scenarios provide practical insight into the strategic challenges faced by organizations, fostering skills in critical thinking, problem-solving, and leadership.
Recommended Textbook
Strategic Management Text and Cases 6th Edition by Gregory Dess
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12 Chapters
1213 Verified Questions
1213 Flashcards
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Page 2
Chapter 1: Strategic Management Creating Competitive Advantages
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101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/3021
Sample Questions
Q1) Strategy formulation at the business level addresses best how to compete in a given business
A) to attain competitive advantage.
B) to reduce costs.
C) to decrease buyer power.
D) to thwart entry of new rivals.
Answer: A
Q2) The three participants in corporate governance are the shareholders,
A) board of directors, and employees.
B) labor unions, and employees.
C) board of directors, and management.
D) banks and lending institutions, and management.
Answer: C
Q3) Fortune Brands states they will cut corporate overhead costs by $30 million a year. This is an example of a A) nonfinancial strategic objective.
B) financial strategic objective.
C) vision statement.
D) mission statement.
Answer: B
Page 3
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Chapter 2: Analyzing the External Environment of the Firm
Creating Competitive Advantages
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109 Verified Questions
109 Flashcards
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Sample Questions
Q1) Scenario analysis is a superficial approach to forecasting that seeks to explore possible developments that many only be connected to the past.
A)True
B)False
Answer: False
Q2) End users are not
A) the final consumers in a distribution channel.
B) the first customers in a distribution channel.
C) likely to have greater bargaining power because of the Internet.
D) usually the C in B2C.
Answer: B
Q3) Nintendo built a security chip into its game console hardware and then licensed the right to develop games to outside firms. These firms paid a royalty to Nintendo for each copy of thegame sold. This is an example of Nintendo using ________ products.
A) substitute
B) complement
C) unrelated
D) differentiated
Answer: B
Page 4
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Chapter 3: Assessing the Internal Environment of the Firm
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/3023
Sample Questions
Q1) Which of the following examples demonstrates how successful organizations manage their primary activities?
A) Motorola has revised its compensation system to reward employees who learn a variety of skills.
B) Wal-Mart implemented a sophisticated information system that resulted in reduced inventory carrying costs and shortened customer response times.
C) National Steel improved its efficiency by reducing the number of job classifications.
D) JIT inventory systems are vital to Toyota committing to fulfill new car orders within five days.
Answer: D
Q2) Which of the following would be most difficult to assess?
A) the liquidity position of a firm
B) market share growth
C) the legitimacy and reputation of a firm
D) the efficiency with which a firm utilizes its assets
Answer: C
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Chapter 4: Recognizing a Firm's Intellectual Assets Moving
beyond a Firm's Tangible Resources
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) Professionals frequently leave Microsoft en masse to form venture capital and technology start-ups, called Baby Bills, built around teams of software developers. This is an example of________ causing human capital mobility.
A) formal relationships
B) social relationships
C) tacit knowledge
D) intellectual capital
Q2) The difference between the market value and book value of a firm is its social capital.
A)True
B)False
Q3) Sharing knowledge and information throughout the organization is important for conserving resources, developing products and services, and thwarting new opportunity creation.
A)True
B)False
Q4) Intellectual property rights are the tangible property owned by a firm.
A)True
B)False
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Chapter 5: Business-Level Strategy Creating and Sustaining Competitive Advantages
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105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/3025
Sample Questions
Q1) Primark, an Irish clothing retailer, uses an overall cost leadership strategy. This could fail if it
A) maintains parity with competitors on low cost.
B) cannot maintain parity on differentiation dimensions requested by customers.
C) exceeds customer expectations.
D) increases its sales prices while maintaining competitor parity.
Q2) Mass customization permits companies to manufacture unique products in relatively ________ quantities at ________ costs.
A) large; higher
B) large; lower
C) small; higher
D) small; lower
Q3) The text discusses three approaches to combining overall cost leadership and differentiation competitive advantages. Which of the following is not one of these three approaches?
A) automated and flexible manufacturing systems
B) deriving benefits from highly-focused and high-technology markets
C) exploiting the profit pool concept for competitive advantage
D) coordinating the extended value chain by way of information technology
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Chapter 6: Corporate-Level Strategy Creating Value through Diversification
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102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/3026
Sample Questions
Q1) Casio, a giant electronic products producer, synthesizes it abilities in miniaturization, microprocessor design, material science, and ultrathin precision castings to produce digital watches. It uses the same skills to produce card calculators, digital cameras, and other small electronics. These collective skills are
A) strategic resources.
B) core competencies.
C) shared activities.
D) economies of scope.
Q2) In managing the corporate portfolio, the BCG matrix would suggest that A) dogs should be invested in to increase market share and become cash cows. B) stars are in low growth markets and can provide excess cash to fund other opportunities.
C) cash cows require substantial cash outlays to maintain market share.
D) question marks can represent future stars if their market share is increased.
Q3) Discuss the three basic means by which a firm can go about achieving synergy and create value for its shareholders.
Q4) Explain the purpose of antitakeover tactics and provide a specific example of an actual antitakeover tactic.
Page 8
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Chapter 7: International Strategy Creating Value in Global Markets
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107 Verified Questions
107 Flashcards
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Sample Questions
Q1) Which of the following is a source of economic risk in many countries?
A) good intellectual property law
B) counterfeiting
C) good enforcement of property rights
D) political unrest
Q2) High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?
A) global strategy
B) multidomestic strategy
C) transnational strategy
D) overall cost leadership strategy
Q3) Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?
A) Consumers are willing to pay more for specific product features.
B) Customer needs and interests are becoming more dissimilar.
C) MNCs can successfully compete globally by aggressively pricing products at the sacrifice of product features.
D) If the world markets are treated as heterogeneous, substantial economies of scale are easily achieved.
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Chapter 8: Entrepreneurial Strategy and Competitive Dynamics
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94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/3028
Sample Questions
Q1) Mint entered the market in 2005 with comprehensive online money management systems that tells users what they are spending by aggregating financial information from online bank and creditcard accounts. Today it has over 20 million users and is helping them manage over 3 billion USD in assets. It used which new entry strategy in 2005?
A) imitative
B) adaptive
C) pioneering
D) differentiated
Q2) Which of the following is not one of the three characteristics of entrepreneurial leadership mentioned by the text?
A) clarifying job responsibilities
B) dedication and drive
C) commitment to excellence
D) vision
Q3) The likelihood that a competitor will launch an attack depends upon many factors. Discuss threat analysis and how it is used.
Q4) Explain what a pioneering new entry means and when it is appropriate to use it.
Page 10
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Chapter 9: Strategic Control and Corporate Governance
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91 Verified Questions
91 Flashcards
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Sample Questions
Q1) External governance control mechanisms include all the following except A) auditors.
B) analysts.
C) competitors.
D) media.
Q2) Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the U.K. food business had booked income early and delayed the bookingofcosts in order to improve appearances of financial performance. This scandal results from ________ and ________.
A) poor environment; management systems
B) poor governance; control
C) external environmental factors; internal environmental factors
D) leadership; financial systems
Q3) Effective boundaries and constraints
A) tend to inhibit efficiency and effectiveness.
B) distract employees who are trying to focus on organizational priorities.
C) minimize improper and unethical conduct.
D) tend to limit organizational growth.
Q4) What is agency theory and what problems is it concerned with resolving?
Q5) Explain why control systems are necessary for strategy implementation.
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Chapter 10: Creating Effective Organizational Designs
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86 Verified Questions
86 Flashcards
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Sample Questions
Q1) In a barrier-free organization, differences in skills, authority, and talent disappear.
A)True
B)False
Q2) The relationship between strategy and structure can be best described as A) strategy determines structure but structure does not determine strategy.
B) structure determines strategy but strategy does not determine structure.
C) strategy and structure influence each other.
D) a third force determines both strategy and structure.
Q3) One of the disadvantages of divisional structure design is that they divide ________, ________, and knowledge. They insulate divisional managers from other divisional managers thus inhibiting their ability to coordinate activities, share resources, and learn from each other.
A) land, buildings
B) assets, structures
C) people, resources
D) people, buildings
Q4) Discuss the three major contingencies that influence the chosen organizational structure as a firm expands into foreign markets.
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Page 12
Chapter 11: Strategic Leadership Creating a Learning
Organization and an Ethical Organization
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104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/3031
Sample Questions
Q1) A highly ethical organization must have all the following elements except A) codes of conduct.
B) corporatecredos.
C) payment plans.
D) role models.
Q2) An ethically sound organization, drawing on the concepts of stakeholder management, can also strengthen its bonds among its ________, ________, and ________.
A) policies; procedures; values
B) values; organizational design; employees
C) suppliers; customers; governmental agencies
D) current employees; potential employees; future employees
Q3) In the integrity-based approach to management, ethics is the responsibility of the A) shareholders.
B) outside stakeholders.
C) management.
D) employees.
Q4) Explain how the five barriers to change that leaders often encounter can prevent a leader from transforming an organization.
Page 13
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Chapter 12: Managing Innovation and Fostering Corporate
Entrepreneurship
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93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/3032
Sample Questions
Q1) Intel uses option contracts for the right to purchase key pieces of equipment at a specific future date. They simulate the likelihood that they will need to purchase a specific piece of equipment and then create the options contracts to reduce risk and potentially save money.
A)True
B)False
Q2) Which of the following is not an advantage of collaborating with strategic partners in order to innovate?
A) obtaining skills and new knowledge from outside sources
B) making firms identify their own strengths and weaknesses
C) managers clarifying what an innovation project requires to be successful and who will accomplish it
D) decreasing economies of scale
Q3) The term strategic envelope refers to the scope of innovation efforts of a firm.
A)True
B)False
Q4) What is real options analysis (ROA) as it applies to entrepreneurship and when is it appropriate to be used in this context?
Q5) Explain why the seeds versus weeds dilemma is important.
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