Quản-trị-chiiến-lược-ôn-tập

1.
When a company deals with obtaining raw materials, parts, and supplies needed to
perform the operations function, the company is developing its ________ strategy.
A. operations
B. purchasing
C. R&D
D. financial
2. Which of the following is NOT one of the limitations of portfolio analysis?
A. It contains value-laden terminology that can lead to self-fulfilling prophecies.
B. It is not difficult: Easy to define product/market segments.
C. It relies too heavily on objective judgements.
D. It suggests the use of standard strategies which may be impractical or may miss potential
opportunities.
3. Porter describes the threat of new entrants. Which of the following is not descriptive of
the "threat of new entrants"?
A. depends on the presence of entry barriers
B. has a desire to gain market share
C. depends on the reaction of existing competitors
D. does not impact industry attractiveness
4. The displacement of one technology by another, as shown by two S-shaped curves on a
graph, is referred to as
A. economies of scope versus operating leverage.
B. technology transfer.
C. the R&D mix.
D. technological discontinuity.
5. ………………is/are the source of a firm’s ………………., which is/are the source of the
firm’s……………….
A. Resources, capabilities, core competencies
B. Capabilities, resources, core competencies
C. Capabilities, resources, above average returns
D. Core competencies, resources, competitive advantage
6. The focus strategies will likely predominate when many small- and medium-sized local
companies compete for relatively small shares of the total market in a(n)
A. united industry.
B. fragmented industry.
C. consolidated industry.
D. isolated industry.
7. The type of marketing strategy in which a company captures a larger share of an
existing market for current products through market saturation or market penetration or
develops new markets for current products is called
A. market development.
B. push strategy.
C. product development.
D. pull strategy.
8. When General Motors considers making its own automotive parts, Delphi Automotive
Supply Company would be concerned with the
A. bargaining power of suppliers.
B. bargaining power of buyers.
C. rivalry among existing competitors.
D. threat of substitutes.
9. Which of the following is NOT a goal of financial strategies?
A. Examine the financial implication of corporate and business-level strategic options and
identify the best financial course of action.
B. Provide the corporation with the appropriate financial structure and funds to achieve its
overall objectives.
C. Institute a new product development plan to generate profit gain market share.
D. Provide competitive advantage through a lower cost of funds and a flexible ability to
raise capital to support a business strategy.
10. Which of the following is NOT one of the advantages of portfolio analysis?
A. The graphic depiction facilitates communication.
B. It provides the basis for impartial objectivity from which to make decisions.
C. It encourages top management to evaluate each of the corporation's businesses
individually.
D. It raises the issue of cash flow availability for use in expansion and growth.
11. Amazon.com, founded by Jeff Bezos and reflecting his vision, is an example of which
mode of strategic decision-making?
A. adaptive.
B. entrepreneurial.
C. logical incrementalism.
D. planning.
12. What is meant by the term “stakeholders”?
A. a person who is not related with a business.
B. a person who is related with a business.
C. a person who owns a business.
D. a person who purchases the shares of a business.
13. Which one of the following is not a primary task of strategic managers?
A. establishing strategic objectives
B. developing the steps to follow in implementing operational-level plans
C. defining the business and developing a mission
D. developing a strategy
14. An international study by Bain & Company concluded that the likelihood of a
successful acquisition is increased with
A. previous experience between an acquirer and a target firm.
B. narrowing the number of candidates for acquisition.
C. foregoing the time for due diligence.
D. limited geographical expansion.
15. With conglomerate diversification, the focus is on
A. product-market synergy.
B. sound investment and value-oriented management.
C. employee satisfaction.
D. similar product offerings.
16. According to a recent survey by Deloitte Consulting, the most popular outsourced
activity was
A. marketing.
B. sales.
C. finance.
D. information technology.
17. Intel was able to gain a significant cost advantage over its competitors in the
production and sale of microprocessors because of
A. capital requirements.
B. product differentiation.
C. switching costs.
D. economies of scale.
18. The process by which strategies and policies are put into action through the
development of programs, budgets, and procedures is
A. strategy formulation.
B. strategy control.
C. strategy implementation.
D. strategy development.
19. Differentiation strategy often:
A. Lowers customers sensitivity to price
B. Increases buyer loyalty
C. Can generate higher profits
D. All are correct
20. The purchasing strategy used by an automobile manufacturer when it orders seats for
a specific car model from several vendors is
A. sole sourcing.
B. multiple sourcing.
C. just-in-time sourcing.
D. backup sourcing.
21. When a company deals with obtaining raw materials, parts, and supplies needed to
perform the operations function, the company is developing its ________ strategy.
A. operations
B. purchasing
C. R&D
D. financial
22. The emphasis of strategic management is on
A. long-term performance.
B. first-line managers.
C. the short-run performance of the corporation.
D. an examination of the organization's internal environment.
23. A simple way to portray a corporation's portfolio of investments is by using the
A. SWOT Matrix.
B. transaction cost economics.
C. BCG Growth-Share Matrix.
D. SFAS Matrix.
24. Which of the following is true of an organization's mission statement?
A. should be crafted very late in the strategic implementation stage
B. explains how the organization will take advantage of opportunities by overcoming all
weaknesses
C. does not have to be unique to the organization
D. should be short so every employee can remember it
25. When Smith & Wesson puts its name on others' products, like men's cologne, it is
using which marketing strategy?
A. demand pricing
B. brand pricing
C. brand extension
D. penetration extension
26. Which one is not an element in the primary activities of a value chain?
A. Procurement
B. Inbound logistics
C. Outbound logistics
D. Service
27. As a part of the strategic management process, evaluation and control is concerned
with all of the following, EXCEPT
A. determining top management benefits packages.
B. monitoring corporate activities and performance.
C. stimulating a review of the corporation's strategic management.
D. pinpointing problem areas.
28. Which barrier to entry do corporations such as P&G use to force new entrants to
spend heavily to overcome existing customer loyalty?
A. rivalry among existing firms
B. switching costs
C. capital requirements
D. product differentiation
29. I-scream-4 Ice Cream recently faced competition against their flagship brand of
"Orange peel ice cream." A competitor made significant in-roads into the market by
offering three varieties of "Orange peel ice cream." I-scream-4 Ice Cream decided to
counter this threat by introducing five new varieties of ice creams. Which competitive
strategy is I-scream-4 Ice Cream implementing?
A. cost leadership
B. differentiation
C. service focus
D. innovation focus
30. Which of the following statements about Starbucks is NOT true?
A. Starbucks strives to offer customers high-quality coffee, friendly servers, and customer
friendly stores.
B. Starbucks is planning to sell coffee, branded mugs, and espresso machines online.
C. Starbucks plans to use IT innovations to enhance the customer experience.
D. Starbucks is trying to create a unique customer experiences in stores.
31. Which of the following describes a typical functional structure?
A. Employees tend to be specialists in the business functions important to that industry such
as manufacturing, marketing, finance, and human resources.
B. This is most appropriate for large corporations with many product lines in several related
industries, with employees acting as specialists attempting to gain synergy among
divisional activities.
C. This is most appropriate for small, entrepreneur-dominated companies with one or two
product lines that operate in a small niche market, with employees acting as jack-of-all
trades.
D. Employees have two or more superiors, a project manager and a functional manager.
32. A well-crafted mission statement should have common elements:
A. The design must be simple, short, provide direction
B. It should enable employees knowing exactly what the company does and what it does not
do
C. It should be measurable
D. All are correct
33. When Intel opened four small-scale research facilities adjacent to universities to
promote the cross-pollination of ideas, they were using which approach to R&D?
A. open innovation
B. differentiation
C. technology scouting
D. continuous improvement
34. Which strategy is an attempt to artificially support profits when a company's sales are
declining by reducing investment and short-term discretionary expenditures?
A. profit strategy
B. no-change strategy
C. diversification strategy
D. concentration strategy
35. What characterizes the planning mode of strategy formulation?
A. Top management believes that the environment is a force to be used and controlled.
B. It assumes the environment is too complex to be completely comprehended.
C. It involves the systematic gathering of appropriate information for situation analysis, the
generation of feasible alternative strategies, and the rational selection of the most
appropriate strategy.
D. Rather than utilizing a proactive search for new opportunities, it only has the opportunity
for reactive behavior.
36. The ability of competitors to use duplicated resources and capabilities to imitate the
other firm's success is called
A. imitability.
B. durability.
C. transparency.
D. replicability.
37. Long-term objectives should be all of the following except:
A. measurable
B. continually changing
C. reasonable
D. consistent
38. BP and Royal Dutch Shell are examples of _________ firms because they internally
make 100% of their key supplies and completely control their distributors.
A. fully integrated
B. divisional
C. partially integrated
D. managerial
39. According to the BCG Growth-Share Matrix (BCG), products that typically bring in
far more money than is needed for maintenance of their market share are called
A. cash cows.
B. lost leaders.
C. dogs.
D. question marks.
40. The free trade area composed of Argentina, Brazil, Uruguay, Venezuela, and
Paraguay is called
A. EU
B. ASEAN
C. NAFTA
D. Mercosur
41. Research of the planning practices of companies in the oil industry concludes that the
real value of modern strategic planning is more in the ________ that is part of a future-
oriented planning process than in any resulting written strategic plan.
A. planning
B. strategic thinking and organizational learning
C. resulting written strategic plan
D. formality of the process
42. When strategic managers have a willingness to reject unfamiliar as well as negative
information it is referred to as
A. strategic paralysis.
B. corporate inertia.
C. management indifference.
D. strategic myopia.
43. Companies such as Georgia-Pacific, Marriott, and Union Carbide view the ________
as an important way to differentiate themselves from the competition, to add value, and to
reduce costs.
A. R&D function
B. logistics function
C. finance function
D. engineering function
44. The type of strategy used to influence a corporation's key stakeholders in order to
increase their support of corporate activities is
A. cooperative strategy.
B. political strategy.
C. competitive strategy.
D. marketing strategy.
45. A program or tactic is
A. a detailed cost statement in terms of dollars.
B. a system of sequential steps.
C. a statement of the activities needed to support a strategy.
D. the process by which strategies and policies are put into action.
46. When General Motors considers making its own automotive parts, Delphi Automotive
Supply Company would be concerned with the
47. Which of the following is not one of the four question areas Barney proposes in his
VRIO framework used to evaluate a firm's key resources?
A. organization
B. durability
C. rareness
D. valuable
48. Which of the following is an example of an “SMART” objective?
A. to diversify product line to appeal to more people
B. to increase sales by ten percent over last year
C. to pay highest salaries to keep high quality employees
D. to develop and sell quality appliances worldwide
49. One ground rule necessary for effective brainstorming is
A. scrutinize each idea generated.
B. propose ideas without mentally screening them.
C. calculating future earnings of each idea.
D. critique each idea for rationality.
50. If a company wishes to be a technological leader and also maintain a cost advantage,
the appropriate R&D strategy would be to
A. increase the cost of the product.
B. lower the cost of the product or value activities by learning from the leader's experience.
C. avoid R&D costs through imitation.
D. create low-cost ways of performing value activities.
51. Members of the European Union (EU) include all of the following EXCEPT
A. Ireland.
B. Great Britain.
C. Belgium.
D. France.
52. The existence of a performance gap
A. should cause management to question their objectives, strategies, and policies.
B. is not an indicator of problems if it only happens once.
C. is only the concern of top management because they set the original strategies.
D. should cause management to look only within the organization to determine the problem.
53. Strategic managers who adopt a conglomerate diversification strategy are primarily
concerned with ________ considerations of cash flow or risk reduction.
A. marketing
B. human capital
C. financial
D. environmental
54. Studies reveal that over one-half to two-thirds of acquisitions are failures primarily
because
A. the premiums paid were too high for the firm to earn their cost of capital.
B. due diligence was not conducted carefully.
C. there were unresolved management conflicts.
D. All are correct
55. The environmental segments that comprise the general environment typically will
NOT include:
A. demographic factors.
B. sociocultural factors.
C. substitute products or services.
D. technological factors.
56. A company that pioneers an innovation is called a
A. technological follower.
B. technological opportunist.
C. technological leader.
D. technological manufacturer.
57. The organization's corporate mission statement
A. should have a different mission statement for each subsidiary division.
B. should be less formally stated to allow for growth.
C. should contain explicit descriptions of their competitive advantages.
D. should state what the organization would like to become.
58. According to Porter's model, a strong or high force is likely to reduce profits and can
be regarded as a(n)
A. benefit.
B. opportunity.
C. advantage.
D. threat.
59. Through market research, corporations are able to practice ________ with various
products or services so that managers can discover what niches to seek, which new types of
products to develop, and how to ensure that a company's many products do not directly
compete with one another.
A. marketing position.
B. product life cycle.
C. market segmentation.
D. marketing mix.
60. When a company has no competitive advantage and is doomed to below-average
performance is called:
A. Stuck in the middle
B. Fragmented industry
C. Consolidated industry
D. Service focus
61. Which barrier to entry uses cost advantages associated with large size?
A. economies of scale
B. switching costs
C. cost disadvantages independent of size
D. capital requirements
62. When scientists concentrate on quality control and the development of design
specifications and improved production equipment, it is referred to as
A. basic R&D.
B. product R&D.
C. engineering R&D.
D. life cycle R&D.
63. Which of the following is an example of an industry in which companies manufacture
and sell the same products, with only minor adjustments made for individual countries
around the world?
A. retailing
B. banking
C. tires
D. insurance
64. Which of the following is an example of a mission statement?
A. diversify product line to appeal to more people
B. increase sales by ten percent over last year
C. pay highest salaries to keep high quality employees
D. develop and sell quality appliances worldwide
65. Which of the following is NOT one of the limitations of the BCG Growth-Share
Matrix (BCG)?
A. It is too simplistic.
B. The link between market share and profitability is questionable.
C. Growth rate is only one aspect of industry attractiveness.
D. The market leader is ignored in the analysis.
66. What are the three generic competitive strategies that Porter promotes as the means
for outperforming other corporations in a particular industry?
A. cost leadership, differentiation, and focus
B. diversification, concentration, and competitive scope
C. cost, competitive scope, and focus
D. concentration, cost leadership, and differentiation
67. What is the attribute of corporate culture that is the degree to which members of a
unit accept the norms, values, or other culture content associated with the unit?
A. integration
B. strength
C. intensity
D. coordination
68. Which of the following is not one of the major outsourcing errors that should be
avoided?
A. failure to keep core activities in-house
B. selecting the wrong vendor
C. writing a poor contract
D. micromanaging the outsourced activity to maintain control
69. The term used to describe new products, services, methods, and organizational
approaches that allow businesses to achieve extraordinary returns is
A. ROI.
B. innovation.
C. competitive advantage.
D. sustainability.
70. Apple is an example of a company following which of Porter's generic competitive
strategies?
A. cost leadership
B. differentiation
C. cost focus
D. competitive scope
71. When a company is concerned that the higher price it charges for its higher quality is
too far above the price of the competition, the company is likely addressing a risk of
following which competitive strategy?
A. cost leadership
B. focus
C. stuck-in-the-middle
D. differentiation
72. Which strategy has been used successfully by Yum! Brands to establish KFC and
Pizza Hut restaurants across the globe?
A. joint venture
B. franchising/licensing arrangement
C. strategic alliance
D. marketing strategy
73. Avon is an example of a company that demonstrated having a diverse workforce
A. can be a competitive advantage.
B. can lower productivity.
C. can be an effective logistics strategy.
D. can hinder quality.
74. Which of the following industries has the lowest barrier to entry?
A. Automotive/ Car makers
B. Computer chip
C. Airline
D. Small retailer
75. Which of the following is not descriptive of a high level of bargaining power of
suppliers?
A. Substitutes are readily available.
B. The product or service is unique.
C. The supplier industry is dominated by a few companies, but sells too many.
D. The purchasing industry buys only a small portion of the supplier group's goods and
services.
B. switching costs
77. Corporate culture fulfills several important functions in an organization which are:
A. Conveys a sense of identity for employees.
B. Helps generate employee commitment to something greater than themselves.
C. Adds to the stability of the organization as a social system.
D. All is correct
78. The corporate mission is best described by which one of the following?
A. a description of the activities carried out by the organization
B. the purpose or reason for the corporation's existence
C. a description of top management's responsibilities
D. a statement of corporate objectives
79. The S in SWOT stands for
A. sociocultural
B. scanning
C. strengths
D. societal
80. Continuous improvement is an operations concept developed by Deming and perfected
by firms in
A. the United States.
B. Sweden.
C. Japan.
D. Germany.
81. What is a set of business units or firms that "pursue similar strategies with similar
resources"?
A. strategic group
B. collective collaboration
C. cooperative
D. integral association
82. The T in SWOT represents
A. threat.
B. tactic.
C. technique.
D. task.
83. One company that has successfully found a narrow market niche is
A. Coca-Cola.
B. PepsiCo.
C. Frank J. Zamboni & Company.
D. Walmart.
84. Which one of the following best describes a conglomerate structure?
A. Work is divided into subunits on the basis of such functions as manufacturing, marketing,
finance, and human resources.
B. This is most appropriate for small, entrepreneur-dominated companies with one or two
trades.
C. Employees have two or more superiors, a project manager and a functional manager.
D. This is appropriate for a large corporation with many product lines in several unrelated
industries.
85. According to the BCG Growth-Share Matrix (BCG), market leaders that typically are
at the peak of their product life cycle and are usually able to generate enough cash to
maintain their high share of the market are called
A. cash cows.
B. stars.
C. dogs.
D. question marks.
86. Which strategy might be the most likely when management realizes that the current
industry is unattractive and that the firm lacks outstanding skills that it could easily
transfer to related products or services in other industries?
A. concentration
B. conglomerate diversification
C. concentric diversification
D. vertical growth
87. Walmart, as a discount retailer, is an example of a company following which of
Porter's competitive strategies?
A. differentiation
B. cost leadership
C. differentiation focus
D. competitive advantage
B. switching costs
89. The use of 3-D printing demonstrates which manufacturing strategy?
A. continuous improvement
B. mass production
C. job shop
D. mass customization
90. ________ suggests that unit production costs decline by some fixed percent each time
the total accumulated volume of production in units doubles.
A. The experience curve
B. The R&D mix
C. Technological competence
D. Economy of scale
91. Which strategy involves giving up management of the firm to the courts in return for
some settlement of the corporation's obligations?
A. concentration
B. bankruptcy
C. diversification
D. divestment
92. What are the two distinct attributes of corporate culture?
A. differentiation and integration
B. durability and imitability
C. concern for people and concern for task
D. intensity and integration
93. Which of the following is not a part of strategy implementation?
A. performance evaluation
B. budgets
C. programs and tactics
D. procedures
94. ……………….is not part of an external audit.
A. Analyzing competitors
B. Analyzing financial ratios
C. Analyzing available technologies
D. Studying the political environment
95. Intense supervision of labor, sustained capital investment and access to capital are
commonly required skills and resources for which of Porter's generic competitive
strategies?
A. cost leadership
B. differentiation
C. cost leadership focus
D. differentiation focus
96. Which of the following is not a responsibility of a research and development
manager?
A. choosing among alternative new technologies to use within the corporation
B. developing methods of embodying the new technology in new products and processes
C. deploying resources so that the new technology can be successfully implemented
D. taking the design and operationalizing the plan into mass production
97. Which environment was generally perceived by business people to be something to
exploit, not conserve, until the twentieth century?
A. the task environment
B. the natural environment
C. the internal environment
D. the societal environment
98. Reduction in production cost results in ________.
A. better customer service
B. lower shareholder value
C. increased profitability
D. increased competition
99. The task environment
A. includes those elements or groups within an organization's industry.
B. encompasses the physical working areas of the organization.
C. is an accounting of the many jobs within an organization.
D. is an advisory committee to top-management.
100. Research suggests that strategic management evolves through four sequential phases
in corporations. The first phase is
A. externally oriented planning.
B. basic financial planning.
C. internally oriented planning.
D. forecast-based planning.
101. The origin of competitive advantage lies in the ability to
A. gain major stockholders.
B. identify and respond to environmental change well in advance of competition.
C. launch products quickly.
D. serve customers faster.
102. Which of the following is NOT one of the limitations of the BCG Growth-Share
Matrix (BCG)?
A. It is too simplistic.
B. The link between market share and profitability is questionable.
C. Growth rate is only one aspect of industry attractiveness.
D. The market leader is ignored in the analysis.
103. Which of the following is an example of a policy?
A. Diversify product line to appeal to more people.
B. Increase sales by ten percent over last year.
C. Only acquire companies of 75 employees or more; 75 percent must be engineers.
D. Develop and sell quality appliances worldwide.
104. The top factors in a successful ________ seemed to be a spirit of partnership, a well-
designed agreement, joint governance, and consistent communication.
A. IT relationship
B. customer relationship management
C. outsourcing relationship
D. logistics relationship
105. The most logical growth strategy for a corporation with current product lines with
real growth potential in a growing industry is
A. concentration.
B. conglomerate integration.
C. concentric diversification.
D. stability.
106. When P&G sold off half of its brands and consolidated others, it was following which
retrenchment strategy?
A. divestment
B. sell-out
C. contraction
D. captive company
107. Research done by Henry Mintzberg suggests that strategy formulation
A. is typically an irregular and a discontinuous process.
B. should be followed unswervingly to ensure success of the plan.
C. is a process to which organizations find they must make significant yearly changes.
D. should be reviewed after a specific interval of time to make sure it is still applicable.
108. An important consideration in the selection of a strategy is the ability of each
alternative to satisfy agreed-upon objectives with the least resources and the fewest
negatives. The competitive advantages developed earlier using ________ is an excellent
place to start.
A. factors to ensure profitable return on investment
B. the VRIO (valuable, rare, imitable, organized) framework
C. the analysis of the competitive environment
D. industry research
109. If a company wishes to be a technological follower and also pursue a differentiation
strategy, the appropriate R&D strategy would be to
A. adapt the product or delivery system more closely to buyer needs by learning from the
leader's experience.
B. value activities by learning from the leader's experience.
110. The T in SWOT stands for
A. trust
B. technical
C. threats
D. task
111. The type of strategy, which emphasizes the improvement of the competitive position
of a corporation's products or services in a particular industry or market segment served
by a business unit is
A. functional.
B. operational.
C. business.
D. environmental.
112. According to Alfred Chandler,
A. high-tech industries cannot be defined by "paths of learning" if they want to evolve.
B. companies spring from an individual entrepreneur's knowledge, which is composed
exclusively of technical skills.
C. once a corporation has built its learning base to the point where it has become a core
company in its industry, entrepreneurial start-ups are rarely able to successfully enter.
D. learned capabilities derive from organizational strengths.
113. Those critical strengths and weaknesses that are likely to determine if a firm will be
able to take advantage of opportunities while avoiding threats are called
A. SWOT.
B. competitive forces.
C. internal strategic factors.
D. quality accounting.
114. The corporation's task environment
A. encompasses the physical working areas of the organization.
B. includes those elements or groups within an organization's industry.
C. is an advisory committee to top management.
D. is an accounting of the many jobs within an organization.
115. Ford Motor Company's use of company resources to build its River Rouge Plant
outside of Detroit so that iron ore could enter into one end of the plant and a finished
automobile could exit out of the other end is called
A. vertical growth.
B. tapered integration.
C. horizontal integration.
D. external vertical integration.
116. When examining the corporate value chain of a particular product or service, which
one of the following is not one of the primary activities that usually occur?
A. operations
B. inbound and outbound logistics
C. auditing and accounting
D. marketing and sales
117. Industry analysis is primarily concerned with a corporation's
A. societal environment.
B. task environment.
C. sociocultural environment.
D. economic environment.
118. When General Motors considers making its own automotive parts, Delphi
Automotive Supply Company would be concerned with the
120. The Growth-Share Matrix of the Boston Consulting Group (BCG) suggests that the
excess cash being generated by cash cows should be used to fund
A. dogs.
B. question marks.
C. stars.
D. white knights.
121. The buyer power is likely to be high in these situations, except:
A. where switching costs are low
B. where the buyer can threaten to compete
C. where a few large customers account for the majority of sales
D. where ultimate consumer power is weak
122. When defining strategic management, the most important thing to remember is that
it is:
A. mainly the province of senior managers
B. a living evolving process
C. more conceptual than practical
D. a way of determining responsibilities
123. The rate at which others can duplicate a firm's underlying resources, capabilities, or
core competencies is called
A. replicability.
B. transparency.
C. imitability.
D. durability.
124. Which of the following is not descriptive of external environmental scanning?
A. used as a tool to ensure a corporation's long-term health
B. used to monitor, evaluate, and disseminate information relevant to the organizational
development of strategy
C. used to identify major stockholders
D. used as a tool for corporations to avoid strategic surprise
125. Which kind of corporate strategy deals with the firm's overall orientation toward
growth?
A. portfolio strategy
B. directional strategy
C. parenting strategy
D. cooperative strategy
126. The organization's corporate mission statement
A. should have a different mission statement for each subsidiary division.
B. should be less formally stated to allow for growth.
C. should contain explicit descriptions of their competitive advantages.
D. should state what the organization would like to become.
127. A corporation's ability to exploit its resources is referred to as its
A. business expertise.
B. capabilities.
C. core competencies.
D. critical success factors.
128. When an organization is evaluating its strategic position, which is not one of the
strategic questions that an organization generally may ask itself?
A. Where is the organization now?
B. Are we on target to hit our financial objectives next year?
C. If no changes are made, where will the organization be in one year?
D. If the evaluation is negative, what specific actions should management take?
129. Which of the following is not a reason that companies or business units may form a
strategic alliance?
A. to obtain access to specific markets
B. to reduce financial risk
C. to reduce political risk
D. to set prices in the industry
130. In the EFAS Table, the indicator of how well a particular company is responding to
current and expected factors in its external environment is characterized by the
A. IFAS score.
B. industry matrix.
C. total weighted score.
D. SWOT score.
131. Which one of the following is not descriptive of a corporation's culture?
A. A corporation's culture is a collection of beliefs, expectations, and values learned and
shared by the corporation's members and transmitted from one generation of employees
to another.
B. Corporate cultures are only temporary and can be easily changed.
C. Culture gives a company a sense of identity.
D. The culture reflects the company's values.
132. In many cases, ________ integration is more profitable than ________ integration.
A. forward; backward
B. vertical; backward
C. backward; vertical
D. backward; forward
133. The reconfiguring of people, processes, units, and technology to give customers
exactly what they want and when they want it is known as
A. mass customization.
B. modular manufacturing.
C. a connected line batch flow.
D. open innovation.
134. Porter describes the threat of new entrants. Which of the following is not descriptive
of the "threat of new entrants"?
135. The particular combination of product, place, promotion, and price is called
D. marketing mix.
136. According to Alfred Chandler,
A. high-tech industries cannot be defined by "paths of learning" if they want to evolve.
B. companies spring from an individual entrepreneur's knowledge, which is composed
exclusively of technical skills.
C. once a corporation has built its learning base to the point where it has become a core
company in its industry, entrepreneurial start-ups are rarely able to successfully enter.
D. learned capabilities derive from organizational strengths.
137. When P&G sold off half of its brands and consolidated others, it was following which
retrenchment strategy?
A. divestment
B. sell-out
C. contraction
D. captive company
139. When Intel opened four small-scale research facilities adjacent to universities to
promote the cross-pollination of ideas, they were using which approach to R&D?
A. open innovation
B. differentiation
C. technology scouting
D. continuous improvement
140. The time horizon involved with regard to basic financial planning is usually
A. one year.
B. one quarter.
C. three to five years.
D. less than one month.
141. Which of the following is an issue considered in developing corporate strategies?
A. what business(es) are we in?
B. what direction are we going?
C. what resources do we have to implement our strategies?
D. what businesses are we in and what to do with those businesses?
142. Which one of the following best describes a divisional structure?
industries, with employees acting as functional specialists attempting to gain synergy
among divisional activities.
trades.
144. Knowledge that can be easily articulated and communicated is known as
A. tacit knowledge.
B. explicit knowledge.
C. imitable knowledge.
D. transferable knowledge.
145. Amazon.com, founded by Jeff Bezos and reflecting his vision, is an example of which
mode of strategic decision-making?
A. adaptive.
B. entrepreneurial.
C. logical incrementalism.
D. planning.
146. The technique used to help strategic managers choose among alternative choices by
defining the task environment, developing a set of various forecasts, and using pro forma
financial statements is called
A. decision trees.
B. SWOT analysis.
C. industry scenarios.
D. corporate scenarios.
147. The Strategic Management Model presents the following process for strategy
formulation:
A. Objectives – Policies – Strategies – Mission.
B. Mission – Policies – Strategies – Objectives.
C. Policies – Mission – Strategies – Objectives.
D. Mission – Objectives – Strategies – Policies.
148. The most logical growth strategy for a corporation with current product lines with
real growth potential in a growing industry is
A. concentration.
B. conglomerate integration.
D. stability.
149. Which of the following statements is TRUE of business process designs?
A. Most process designs require people to work in new ways.
B. They do not involve the need to follow different procedures.
C. They should be accompanied by a change in management.
D. Process designs very rarely attract employee resistance.
150. The Growth-Share Matrix of the Boston Consulting Group (BCG) suggests that the
excess cash being generated by cash cows should be used to fund
A. dogs.
B. question marks.
C. stars.
D. white knights.
151. Which of the following is not a support activity of the value chain?
A. procurement
B. technology development
C. human resource management
D. marketing and sales
152. In many cases, ________ integration is more profitable than ________ integration.
A. forward; backward
B. vertical; backward
C. backward; vertical
D. backward; forward
153. The variables structure, culture, and resources pertain to the
A. external environment.
B. internal environment.
C. sociocultural forces.
D. task environment.
154. Top-down planning that emphasizes formal strategy formulation and leaves the
implementation issues to lower management levels is known as
A. forecast-based planning.
B. externally oriented planning.
C. strategic management.
D. none of the above
155. The last stage of a hypercompetitive industry is reached when the remaining large
global competitors
A. raise entry barriers.
B. move into untapped markets.
C. attack the strongholds of other firms.
D. work their way to a situation of perfect competition in which no one has any advantage
and profits are minimal.
156. One of the benefits of globalization is
B. decreased outsourcing
C. increased union negotiations
D. increased taxes
157. Which of the following is an example of a mission statement?
A. diversify product line to appeal to more people
B. increase sales by ten percent over last year
C. pay highest salaries to keep high quality employees
D. develop and sell quality appliances worldwide
158. Which external growth strategy was demonstrated when Procter & Gamble
completely absorbed Gillette?
A. merger
B. strategic alliance
C. diversification
D. acquisition
159. Locking in customers by making it difficult or expensive for customers to move to
another product is called establishing high ________.
A. entry barriers
B. switching costs
C. product standards
D. brand value
160. Research suggests that a differentiation strategy is more likely to generate higher
profits than a lower cost strategy because differentiation creates
A. a better entry barrier.
B. a better exit barrier.
C. a better niche market.
D. no clear long-term strategy.
161. The breadth of an organization's culture or the extent to which units throughout an
organization share a common culture is also known as
A. cultural intensity.
B. cultural diversification.
C. cultural integration.
D. cultural strategy.
162. Growth through diversification out of an industry into an unrelated industry is
called
A. concentration.
B. horizontal growth.
D. conglomerate diversification.
163. Which one of the following is not one of the questions that management should raise
in their attempt to assess the importance to the corporation of stakeholders' concerns?
A. Which stakeholder group should be represented on the board of directors?
B. How will this decision affect each stakeholder?
C. How much of what the stakeholders want are they likely to get under a certain
alternative?
D. What are the stakeholders likely to do if they don't get what they want?
164. The ability for Nike to manufacture its own shoes and then build stores for
distribution is an example of
A. forward integration.
B. horizontal integration.
C. backward integration.
D. transferred integration.
165. Which of the following is NOT a reason why the growth strategy is so desirable?
A. There are more opportunities for advancement and promotion.
B. A corporation that experiences successful growth is thought of positively by the
marketplace and potential investors.
C. A large and growth-oriented corporation has more clout and influence.
D. A large and growing firm attracts more acquisition offers.
166. A company with significant assets and activities in multiple countries is known as
a(n)
A. multi-national corporation.
B. repatriated corporation.
C. transferable corporation.
D. duplicate corporation.
167. The process of taking a new technology from the laboratory to the marketplace is
called
A. economies of scope versus operating leverage.
B. the R&D mix.
C. technological competence.
D. technology transfer.
168. As an industry matures while overcoming fragmentation and becomes dominated by
a small number of large companies, it tends to become a(n)
A. united industry.
B. fragmented industry.
C. consolidated industry.
D. isolated industry.
169. Which of the following is NOT one of the risks of a cost leadership strategy?
A. The technology that the organization has been using changes.
B. Pricing for higher quality that is too high above the price of the competition.
C. Competitors can achieve viable imitations.
D. Proximity in differentiation is lost.
B. switching costs
171. The characteristics of strategic decisions include
A. rare
B. consequential
C. directive
D. all is correct
172. When a company's core competencies are superior to those of competitors, these are
known as
A. resources.
B. distinctive competencies.
173. Strict targets and KPIs to improve efficiency and cost reduction are likely to be found
in organizations following which of Porter's generic competitive strategies?
A. cost leadership
B. differentiation
C. stuck in the middle
174. With conglomerate diversification, the focus is on
A. product-market synergy.
B. sound investment and value-oriented management.
C. employee satisfaction.
D. similar product offerings.
175. Adding a related or complementary product to a corporation's business units is
called
A. concentration.
B. horizontal growth.
D. vertical growth.
176. The type of strategy, which describes a company's overall direction in terms of its
general attitude toward growth and the management of its various businesses is
A. functional.
B. operational.
C. business.
D. corporate.
177. When Coca Cola contracted with Capgemini to provide accounting and financial
services, which strategy was Coca Cola using?
A. horizontal growth
B. backward integration
C. outsourcing
D. retrenchment
178. All of the following are technological breakthroughs already having a significant
impact on many industries EXCEPT
A. growing health consciousness.
B. alternative energy sources.
C. genetically altered organisms.
D. smart, mobile robots.
179. According to Porter, the generic competitive strategy that reflects the ability of the
corporation or its business unit to design, produce, and market a comparable product more
efficiently and cost-saving than its competitors is called
A. competitive scope.
B. differentiation.
C. cost leadership.
D. diversification.
A. IFAS score.
B. industry matrix.
D. SWOT score.
182. Which of the following is not an element of the organization's task environment?
A. local communities
B. trade associations
C. governments
D. technological developments
183. According to the text, which of the following is not one of the reasons why
innovations seem to occur more often in small firms rather than in large, established
corporations?
A. An entrepreneur in a small firm is more willing to accept greater risk than would a larger
firm.
B. Small firms are completely ignorant of risk management.
C. The greater the assets involved and the longer they are tied up, the more likely top
management in large firms are to demand a high probability of success.
D. Companies operating in global industries must deal with a greater amount of risk than
firms operating only in one country.
184. Which one of the following is not one of the questions that management should raise
in their attempt to assess the importance to the corporation of stakeholders' concerns?
A. Which stakeholder group should be represented on the board of directors?
B. How will this decision affect each stakeholder?
C. How much of what the stakeholders want are they likely to get under a certain
alternative?
D. What are the stakeholders likely to do if they don't get what they want?
185. All of the following reflect criticisms of the SWOT analysis EXCEPT
A. it is simply the opinions of those filling out the boxes.
B. virtually everything that is a strength is also a weakness.
C. it provides a rational link to strategy implementation.
D. virtually everything that is an opportunity is also a threat.
186. Which type of pricing attempts to hasten market development and offers the pioneer
the opportunity to utilize the experience curve to gain market share with a low price and
dominate the industry?
A. demand pricing
B. competitive pricing
C. skim pricing
D. penetration pricing
187. FedEx's application of information technology to all its operations is an example of
A. resources.
B. distinctive competencies.
188. The combination of the degree of complexity and the degree of change existing in an
organization's external environment is/are called
A. strategic factors.
B. strategic issues.
C. environmental uncertainty.
D. strategic fit.
189. Knowledge that is not easily communicated because it is deeply rooted in employee
experience or in a corporation's culture is called
A. tacit knowledge.
B. explicit knowledge.
C. imitable knowledge.
D. transferable knowledge.
191. Amenities to attract highly skilled labor, scientists, or creative people are a common
organizational requirement for which of Porter's generic competitive strategies?
A. cost leadership
B. differentiation
C. cost leadership focus
192. As defined in this course, a policy is
A. the purpose or reason for a corporation's existence.
B. a statement of activities or steps needed to accomplish a single-use plan.
C. a broad guideline for making decisions that links the formulation of strategy with its
implementation.
D. a comprehensive master plan stating how a corporation will achieve its mission and
objectives.
194. Which of the following is an example of a policy?
A. Diversify product line to appeal to more people.
B. Increase sales by ten percent over last year.
C. Only acquire companies of 75 employees or more; 75 percent must be engineers.
D. Develop and sell quality appliances worldwide.
195. A graph showing time plotted against the dollar sales of a product as it moves from
introduction through growth and maturity to decline is called the
D. marketing mix.
196. What characterizes the planning mode of strategy formulation?
A. Top management believes that the environment is a force to be used and controlled.
B. It assumes the environment is too complex to be completely comprehended.
C. It involves the systematic gathering of appropriate information for situation analysis, the
generation of feasible alternative strategies, and the rational selection of the most
appropriate strategy.
D. Rather than utilizing a proactive search for new opportunities, it only has the opportunity
for reactive behavior.
197. Underlying the BCG Growth-Share Matrix (BCG) is the concept of the
A. product life cycle.
B. industry life cycle.
C. market size.
D. experience curve.
198. According to Porter, the corporation is most concerned with
A. the intensity of competition within its industry.
B. the aggregate level of demand for a product line.
C. a market's position on its life cycle.
D. the amount of pressure from the societal environment.
199. The purpose of vertical growth is to
A. take over a function previously supplied by a former employer.
B. take over a function previously provided by a supplier or by a distributor.
C. acquire a company of similar objective.
D. sell a company encumbered with debt.
200. The development of long-range plans for the effective management of environmental
opportunities and threats in light of corporate strengths and weaknesses is known as
B. strategy implementation.
C. strategy control.
D. strategic analysis.
201. The technique used to help strategic managers choose among alternative choices by
defining the task environment, developing a set of various forecasts, and using pro forma
financial statements is called
A. decision trees.
B. SWOT analysis.
C. industry scenarios.
D. corporate scenarios.
202. Members of the European Union (EU) include all of the following EXCEPT
A. Ireland.
B. Great Britain.
C. Belgium.
D. France.
203. Which of the following best describes a simple structure?
industries, with employees acting as functional specialists attempting to gain synergy
among divisional activities.
trades.
204. Which of the following is NOT one of the advantages of portfolio analysis?
A. The graphic depiction facilitates communication.
B. It provides the basis for impartial objectivity from which to make decisions.
C. It encourages top management to evaluate each of the corporation's businesses
individually.
D. It raises the issue of cash flow availability for use in expansion and growth.
205. Firms use a ________ strategy to provide a specialized product or service for a
narrow target market better than competitors.
A. product differentiation
B. market niche
C. mass customization
D. process efficiency
206. The five forces that affect the level of competition in an industry are:
A. the threat of entry; the power of buyers; the power of suppliers; the threat of substitutes;
and government action.
B. the threat of buyers; the power of entry; the power of substitutes; the threat of suppliers;
and the threat of recession.
C. the threat of recession; the power of buyers; the power of suppliers; the threat of
management failure; and competitive rivalry.
D. the threat of entry; the power of buyers; the power of suppliers; the threat of substitutes;
and competitive rivalry.
207. ____________ identifies a firm’s major competitors and their particular strengths
and weaknesses in relation to a sample firm’s strategic position.
A. Competitive Profile Matrix
B. External Factor Evaluation matrix
C. Internal Factor Evaluation Matrix
D. Boston consulting group matrix
208. According to Porter's model, a low force can enable the company to earn greater
profits and can be regarded as a(n)
A. benefit.
B. opportunity.
C. advantage.
D. threat.
210. Strategic-management audit is known as:
A. Environmental scanning
B. Strategy formulation
C. Strategy control
D. Strategy evaluation
211. Research done by Henry Mintzberg suggests that strategy formulation
A. is typically an irregular and a discontinuous process.
B. should be followed unswervingly to ensure success of the plan.
C. is a process to which organizations find they must make significant yearly changes.
D. should be reviewed after a specific interval of time to make sure it is still applicable.
212. ________ is more valuable because it can provide companies with a sustainable
competitive advantage that is harder for competitors to imitate.
A. Tacit knowledge
B. Explicit knowledge
C. Imitable knowledge
D. Transferable knowledge
213. Strategic management is that set of managerial decisions and actions that determine
the long-run performance of a corporation. Which one of the following is not one of the
basic elements of the strategic management process?
A. strategy formulation
B. strategy implementation
C. statistical process control
D. evaluation and control
215. The ability of a corporation to shift from one dominant strategy to another is called
A. strategy implementation.
B. chaos formulation.
C. contingency management.
D. strategic flexibility.
216. According to the BCG Growth-Share Matrix (BCG), the key to success with this
model is
A. effective management.
B. competitive positioning.
C. innovative initiative.
D. market share leadership.
217. Which of the following is not a primary activity of the value chain?
A. raw materials handling
B. installation
C. repair
D. purchasing
218. Which external growth strategy involves two or more corporations joining in a stock
exchange and from which only one corporation survives?
A. merger
B. strategic alliance
C. diversification
D. concentration
219. Which societal force includes demographic trends?
A. political-legal forces
B. labor forces
C. economic forces
D. sociocultural forces
220. Internal analysis enables a firm to determine what the firm
A. can do.
B. should do.
C. will do.
D. might do.
221. Political variables have a significant effect on:
A. strategy formulation and implementation
B. strategy formulation and evaluation
C. strategy implementation and evaluation
D. strategy formulation, implementation and evaluation
222. The flow of products into and out of the manufacturing process is a factor when
developing a(n) ________ strategy.
A. marketing
B. logistics
C. operations
D. financial
223. The top factors in a successful ________ seemed to be a spirit of partnership, a well-
designed agreement, joint governance, and consistent communication.
A. IT relationship
B. customer relationship management
C. outsourcing relationship
D. logistics relationship
224. Differentiation is a viable strategy for earning above-average returns in a specific
business because the resulting increased value to the customer
A. lowers costs.
B. lowers price sensitivity.
C. lowers customer loyalty.
D. lowers entry barriers.
225. Which strategy did Delta Airlines choose when it acquired Northwest Airlines to
obtain access to Northwest's Asian markets?
A. a retrenchment strategy using horizontal integration through internal means
B. a horizontal integration strategy
C. a stability strategy using concentric diversification
D. a growth strategy using vertical integration through external means
227. An acronym for the assessment of the external and internal environments (Strengths,
Weaknesses, Opportunities, and Threats) of the business corporation in the process of
strategy formulation/strategic planning is:
A. PET.
B. MBO.
C. SWOT.
D. SBU.
228. A linked set of value-creating activities beginning with basic materials provided by
suppliers and ending with distributors getting the final product into the hands of the
ultimate consumer is called a
A. value chain.
B. continuum of sustainability.
C. strategic capability.
D. fully integrated activity set.
229. A large business has three levels in its hierarchy of strategy:
A. Corporate – Business – Functional.
B. Environmental – Corporate – Functional.
C. Environmental – Enterprise – Corporate.
D. Business – Divisional – Functional.
230. An important consideration in the selection of a strategy is the ability of each
alternative to satisfy agreed-upon objectives with the least resources and the fewest
negatives. The competitive advantages developed earlier using ________ is an excellent
place to start.
A. factors to ensure profitable return on investment
B. the VRIO (valuable, rare, imitable, organized) framework
C. the analysis of the competitive environment
D. industry research
C. switching costs.
A. IFAS score.
B. industry matrix.
D. SWOT score.
233. Which of the following is not one of the four triggering events listed in the text that is
the stimulus for a strategic change?
A. intervention by the organization's bank
B. annual strategic planning conference
C. threat of a takeover
D. new CEO
234. Which of the following is NOT cited as one of the questions that development of a
competitive strategy should raise?
A. Should we compete on the basis of lower cost?
B. Should we compete head-to-head with major competitors?
C. Should we compete in a niche market that we can satisfy which is superior to that of the
competition?
D. Should we compete by garnering political support of influential leaders from other
countries?
235. When a company spends a large amount of money on trade promotion in order to
gain or hold shelf space in retail outlets, a company is using a ________ strategy.
A. pull
B. push
C. financial
D. dedicated line
236. The use of 3-D printing demonstrates which manufacturing strategy?
B. mass production
C. job shop
237. ………………is/are the source of a firm’s ………………., which is/are the source of
the firm’s……………….
238. Launch Cars, a car manufacturing company, has patented its breakthrough
technology that reduces pollutant emissions by half. The company is now an active
supporter of anti-pollution laws that are likely to diminish the profitability of many other
auto makers. Launch Cars is attempting to ________.
A. reduce costs
B. raise barriers to market entry
C. establish alliances
D. lock in customers
239. The PRIMARY task of the manager of information systems is to
A. prevent unlawful usage of the information from the system.
B. make sure the information contained in the system is up-to-date and accurate.
C. monitor the input of information into the information system.
D. design and manage the flow of information in a corporation to improve productivity and
decision-making.
240. The integrated internationalization of markets and corporations is called
A. normalization.
B. economic integration.
C. globalization.
D. nationalization.
241. According to the BCG Growth-Share Matrix (BCG), those products with low market
share in an unattractive industry that do not have the potential to bring in much cash are
called
A. cash cows.
B. lost leaders.
C. dogs.
D. question marks.
242. Which strategy is developed to pull together the various activities and competencies
of each department so that corporate and business unit performance improves and
resource productivity is maximized?
A. business strategy
B. competitive strategy
C. generic strategy
D. functional strategy
243. The concept of ________ was taken one step further in JIT II, in which vendor sales
representatives usually have desks next to the purchasing company's factory floor, attend
production status meetings, visit the R&D lab, and analyze the purchasing company's sales
forecasts.
A. multiple sourcing
B. outsourcing
C. sole sourcing
D. parallel sourcing
244. Underlying the BCG Growth-Share Matrix (BCG) is the concept of the
A. product life cycle.
B. industry life cycle.
C. market size.
D. experience curve.
245. Business strategy focuses on
A. ensuring that the company maintains the existing market share that it has historically
enjoyed.
B. improving the competitive position of a corporation's products or services within the
industry or market segment served.
C. providing adequate shareholders' return on investment.
D. preventing the competition from gaining a competitive edge by undermining their
marketing plan.
246. Research of the planning practices of companies in the oil industry concludes that the
real value of modern strategic planning is more in the ________ that is part of a future-
oriented planning process than in any resulting written strategic plan.
A. planning
B. strategic thinking and organizational learning
C. resulting written strategic plan
D. formality of the process
248. As a part of the strategic management process, evaluation and control is concerned
with all of the following, EXCEPT
A. determining top management benefits packages.
B. monitoring corporate activities and performance.
C. stimulating a review of the corporation's strategic management.
D. pinpointing problem areas.
250. The key to outsourcing is to purchase from the outside only those activities that
A. are not key to the company's distinctive competence.
B. are very expensive.
C. provide the company competitive advantage.
D. are provided by an important supplier.
251. Which of the following statements is NOT true when describing a successful
strategy?
A. it provides some property that is unique or distinctive.
B. it provides the means for renewing competitive advantage.
C. it addresses changes in the external environment.
D. it guarantees long term survival
252. In manufacturing toilet paper for grocery store chains (and avoiding competing
directly against company X), company Y has followed which of Porter's generic
competitive strategies?
A. differentiation
B. cost focus
D. competitive advantage
253. If a company wishes to be a technological follower and also pursue a differentiation
strategy, the appropriate R&D strategy would be to
A. adapt the product or delivery system more closely to buyer needs by learning from the
leader's experience.
B. value activities by learning from the leader's experience.
254. Which barrier to entry was demonstrated by Microsoft's development of the first
widely adopted operating system (MS-DOS) for the IBM-type personal computer that gave
it a significant competitive advantage over potential competitors?
A. government policy
B. access to distribution channels
255. As corporations become global competitors and expand into more markets through
strategic alliances, multipoint competition is likely
A. to remain unchanged.
B. to become even more prevalent.
C. to become less prevalent going forward.
D. to become non-existent.
256. When a firm internally makes 100% of its key supplies and completely controls its
distributors, this is known as
A. full integration.
B. taper integration.
C. mass integration.
D. economical integration.
257. A table which summarizes the key success factors within a particular industry is
called a(n)
A. EFAS Table.
B. IFAS Table.
C. SFAS Table.
D. Industry Matrix.
259. A large software manufacturer attempts to lock in customers by making it difficult
for them to substitute their software with one from another company. The strategy used by
the company is referred to as ________.
A. switching costs strategy
B. low cost operation strategy
C. standardization strategy
D. marketing strategy
260. A formal program of gathering information on a company's competitors is referred
to as
A. statistical modeling.
B. competitive intelligence.
C. competitive strategy.
D. quantitative forecasting.
261. As corporations become global competitors and expand into more markets through
strategic alliances, multipoint competition is likely
A. to remain unchanged.
B. to become even more prevalent.
C. to become less prevalent going forward.
D. to become non-existent.
262. Which of the following are signs of weakness in a company’s competitive position?
A. A return-on-equity is below 25% and earning per share of less than Rs. 2.00
B. A price set by the firm higher than its rivals
C. A declining market share, poor product quality and few sales in the market
D. Lower revenues and profit margin and narrow product line than the market leader
263. If it is to be successful, Porter advises that a division possess strong marketing
abilities, product engineering, a creative flair, strong capability in basic research and a
corporate reputation for quality or technological leadership, for which one of the following
generic competitive strategies?
A. focus
B. differentiation
C. overall cost leadership
D. vertical growth
264. Which of the following is an example of competing on quick response?
A. a firm produces its product with less raw material waste than its competitors.
B. a firm offers more reliable products than its competitors.
C. a firm’s products are introduced into the market faster than its competitors’.
D. a firm’s research and development department generates many ideas for new products.
265. When General Motors considers making its own automotive parts, Delphi
Automotive Supply Company would be concerned with the
266. Which of the following is an example of an “SMART” objective?
A. to diversify product line to appeal to more people
B. to increase sales by ten percent over last year
C. to pay highest salaries to keep high quality employees
D. to develop and sell quality appliances worldwide
267. A winemaker in California finds it difficult to duplicate a French winery's key
resources of land and climate. This is an example of
A. transferability.
B. transparency.
C. replicability.
D. tacit knowledge.
268. The speed with which other firms can understand the relationship of resources and
capabilities supporting a successful firm's strategy is called
A. imitability.
B. reverse engineering.
C. transferability.
D. transparency.
269. Which of the following is NOT one of the limitations of portfolio analysis?
A. It contains value-laden terminology that can lead to self-fulfilling prophecies.
B. It is not difficult: Easy to define product/market segments.
C. It relies too heavily on objective judgements.
D. It suggests the use of standard strategies which may be impractical or may miss potential
opportunities.
270. What is the key outcome from PESTEL analysis?
A. Five forces
B. Identification of the drivers for change
C. Critical success factors
D. Possible scenarios
271. Business strategy is composed of
A. corporate and competitive strategy.
B. functional and divisional strategy.
C. competitive and cooperative strategy.
D. corporate and cooperative strategy.
272. A difference between basic financial planning and forecast-based planning is
A. the time horizon is shorter in forecast-based planning.
B. forecast-based planning incorporates environmental data and extrapolates current trends.
C. basic financial planning utilizes consultants with sophisticated techniques.
D. basic financial planning utilizes scenarios and contingency strategies.
273. According to Barney's VRIO framework, the firm's exploitation of a competency
pertains to
A. value.
B. rareness.
C. imitability.
D. organization.
274. Along with capital, ________ is the primary production input that the organization
uses to create products and services.
A. structure
B. politics
C. feedback
D. labor/employee
275. The action of developing new products before competitors do at improving product
quality or at improving manufacturing processes to reduce costs.
A. Marketing
B. Opportunity analysis
C. Research and development
D. Management
276. In order to move more quickly through a product's development stage and have
people from each discipline get involved in projects early on, companies are using
A. virtual work teams.
B. cross-functional work teams.
C. advisory committees.
D. task forces.
B. switching costs
A. IFAS score.
B. industry matrix.
D. SWOT score.
280. Which of the following is not true of risk?
A. It includes the length of time the asset will be unavailable for other uses.
B. It includes the probability that the strategy will be effective.
C. Managers who own a significant amount of stock in their firms are less likely to engage
in risk-taking actions.
D. It includes the amount of assets the corporation must allocate to that strategy.
281. The strategy that deals with product research, process innovation and improvement
is known as a(n) ________ strategy.
A. marketing
B. R&D (research & development)
C. operations
D. financial
283. In the final phase of strategic management, strategic information is available to
A. people throughout the organization.
B. the top management responsible for decision-making.
C. middle management.
D. only those responsible for implementing the strategy.
284. Which type of international industry manufactures and sells the same products with
only minor adjustments made for individual countries around the world?
A. consortium industry
B. global industry
C. indigenous industry
D. multi-domestic industry
285. Which of the following is not true of risk?
A. It includes the length of time the asset will be unavailable for other uses.
B. It includes the probability that the strategy will be effective.
C. Managers who own a significant amount of stock in their firms are less likely to engage
in risk-taking actions.
D. It includes the amount of assets the corporation must allocate to that strategy.
286. When a company takes apart a competitor's product in order to find out how it
works, this process is known as
A. durability.
B. replicability.
C. reverse engineering.
D. transparency.
287. Those variables that can affect significantly the overall competitive positions of
companies within any particular industry are known as
A. external strategic factors.
B. internal strategic factors.
C. matrix factors.
D. key success factors.
C. switching costs.
289. The monitoring, evaluating, and disseminating of information from the external and
internal environments to key people within the corporation is referred to as
A. Environmental scanning
B. external scanning
C. internal scanning
D. strategy formulation
290. The evaluation of alternative strategies and selection of the best alternative is
referred to as
A. alternative generation.
B. strategic implementation.
C. strategic choice.
D. strategic selection.
291. When a company determines how and where a product or service is to be
manufactured, the level of vertical integration in the production process, the deployment of
physical resources, and relationships with suppliers, the company is developing its
________ strategy.
A. marketing
B. operations
C. R&D
D. Financial
292. When a company following a differentiation strategy ensures that the higher price it
charges for its higher quality is not priced too far above the price of the competition, the
company is using the process of
A. low-cost differentiation.
B. cost leadership.
C. cost proximity.
D. basic differentiation.
293. If a company wishes to be a technological leader and also maintain a cost advantage,
the appropriate R&D strategy would be to
A. increase the cost of the product.
B. lower the cost of the product or value activities by learning from the leader's experience.
294. In the Boston Consulting Group's Growth-Share Matrix (BCG), the relative
competitive position of a product or division is defined as
A. its market share.
B. its gross sales divided by its market share.
C. its market share divided by that of the largest other competitor.
D. its market share divided by that of the smallest other competitor.
295. Strategy formulation or strategic planning begins with a(n) ________, which is the
process of finding a strategic fit between external opportunities and internal strengths
while working around external threats and internal weaknesses.
A. environmental analysis.
B. position analysis.
C. strategic evaluation.
D. SWOT analysis.
296. Which of the following is NOT considered a strategic alliance success factor?
A. Have a clear strategic purpose.
B. Operate with short-term time horizon.
C. Agree on an exit strategy for when the partners' objectives are achieved or the partnership
fails.
D. Minimize conflicts among the partners by clarifying the objectives.
297. The purchasing strategy used by an automobile manufacturer when it orders seats
for a specific car model from several vendors is
A. sole sourcing.
D. backup sourcing.
298. Ford Motor Company's use of company resources to build its River Rouge Plant
outside of Detroit so that iron ore could enter into one end of the plant and a finished
automobile could exit out of the other end is called
A. vertical growth.
B. tapered integration.
C. horizontal integration.
D. external vertical integration.
299. A disadvantage of vertical integration is that it
A. creates exit barriers.
B. improves coordination of activities.
C. decreases demand for the firm's products and services.
D. creates entry barriers.
300. In a survey of 50 corporations, which of the following was rated as one of the three
top benefits of strategic management?
A. clearer sense of strategic vision for the firm
B. higher levels of employee motivation
C. higher levels of job satisfaction
D. improved productivity
301. The primary task of the operations manager is to
A. make sure all the products or services are producing maximum revenue.
B. develop and operate a system that will produce the required number of products or
services with a certain quality, at a given cost, within an allotted time.
C. make sure the process has a high - quality control.
D. ensure that the process is manufactured or delivered as efficiently as possible.
302. Strategic planning within a small organization
A. may be informal and irregular.
B. must be elaborate to allow for future growth.
C. should always be formalized and explicitly stated.
D. should be done by the president only.
303. Which of the following is not a major force in the societal environment?
A. political-legal forces
B. labor forces
C. economic forces
D. technological forces
304. Which of the following statements is not true concerning a corporate reputation?
A. It is a widely held perception of a company by the general public.
B. A good corporate reputation can be a strategic resource.
C. There is a positive relationship between corporate reputation and financial performance.
D. Research shows no positive relationship between corporate reputation and financial
performance.
305. According to Porter, the generic competitive strategy that reflects the ability to
provide unique and superior value to the buyer in terms of product quality, special
features, or after-sale service is called
A. competitive scope.
B. differentiation.
C. focus.
D. cost leadership.
306. When a company determines that a competency provides a competitive advantage,
Barney refers to this issue as
A. value.
B. rareness.
C. imitability.
D. organization.
307. The concept of ________ was taken one step further in JIT II, in which vendor sales
representatives usually have desks next to the purchasing company's factory floor, attend
production status meetings, visit the R&D lab, and analyze the purchasing company's sales
forecasts.
A. multiple sourcing
B. outsourcing
C. sole sourcing
D. parallel sourcing
308. Which strategy raises the questions of whether to compete on the basis of lower cost
or differentiation and whether to compete for the biggest market or a niche market?
A. business
B. corporate
C. competitive
D. functional
309. The mix in the workplace of people from different races, cultures, and backgrounds
is referred to as
A. demographics.
B. diversity.
C. quality of work life.
D. globalization.
310. The currency used to integrate the monetary systems of the European Union (EU) is
called the
A. peso
B. dollar
C. euro
D. franc
311. A flexible manufacturing system is
A. one-of-a-kind production using skilled labor.
B. highly automated assembly lines making one mass-produced product using little human
labor.
C. a grouping of parts into manufacturing families to produce a wide variety of mass-
produced items.
D. a process utilizing the just-in-time (JIT) method of manufacturing.
312. A corporate strategy that cuts across divisional boundaries to build synergy across
business units and to improve the competitive position of one or more business units is
called
A. vertical strategy.
B. horizontal strategy.
C. hierarchical strategy.
D. portfolio strategy.
315. According to the text, which of the following is not one of the reasons why
innovations seem to occur more often in small firms rather than in large, established
corporations?
A. An entrepreneur in a small firm is more willing to accept greater risk than would a larger
firm.
B. Small firms are completely ignorant of risk management.
C. The greater the assets involved and the longer they are tied up, the more likely top
management in large firms are to demand a high probability of success.
D. Companies operating in global industries must deal with a greater amount of risk than
firms operating only in one country.
316. If there is little fit between a strategic alternative under consideration and the
corporate culture, which of the following is one of management's options to consider?
A. Take a chance on ignoring the culture by implementing the strategic alternative.
B. Manage around the culture and change the implementation plan.
C. Try to change the culture to fit the strategy.
D. Restrict the firm to consider only those strategies compatible with the culture.
317. A disadvantage of vertical integration is that it
A. creates exit barriers.
B. improves coordination of activities.
C. decreases demand for the firm's products and services.
D. creates entry barriers.
B. switching costs
319. The development of long-range plans for the effective management of environmental
opportunities and threats in light of corporate strengths and weaknesses is known as
B. strategy implementation.
C. strategy control.
D. strategic analysis.
320. Three trends are evident in logistics: outsourcing, the use of the Internet, and
A. centralization.
B. downsizing.
C. logistical partnerships.
D. computerization.
321. When Dell Computer's customers use the Internet to design their own computers,
this demonstrates which manufacturing strategy?
B. mass production
C. job shop
322. Which one of the following is included in the firm's societal environment?
A. competitors
B. economic forces
C. resources
D. governments
323. The purchasing strategy in which two suppliers are the sole suppliers of different
parts, but are also the backup suppliers for each other's parts is
A. sole sourcing.
D. parallel sourcing.
324. The purpose of a SWOT analysis is to analyze:
A. the business environment and the strategic capability of an organization relative to its
competitors.
B. the strategic capability of an organization.
C. external and internal environments.
D. the business environment in which an organization operates.
325. A sugar company that is worried that consumers may buy artificial sweetener instead
of sugar is concerned about the
A. threat of new entrants.
B. rivalry among existing firms.
C. threat of substitute products.
D. bargaining power of suppliers.
327. If a(n) ______ does not provide a common thread for a corporation's businesses,
managers might be unclear about where the company is heading to in the future.
A. mission
B. computer hardware
C. technology
D. employee
C. switching costs.
329. The purchasing strategy in which two suppliers are the sole suppliers of different
parts, but are also the backup suppliers for each other's parts is
A. sole sourcing.
D. parallel sourcing.
330. Strategic managers must be concerned with human resource management because
A. dealing with people is their primary job.
B. quality of work life is more important than strategic management.
C. the best strategies are meaningless if employees do not have the skills to carry them out
or if jobs cannot be designed to accommodate the available workers.
D. workers are more likely to go on strike if management attempts to cross them.
331. When Smith & Wesson puts its name on others' products, like men's cologne, it is
using which marketing strategy?
A. demand pricing
B. brand pricing
C. brand extension
D. penetration extension
332. Which of the following is an example of competing on quick response?
A. a firm produces its product with less raw material waste than its competitors.
B. a firm offers more reliable products than its competitors.
C. a firm’s products are introduced into the market faster than its competitors’.
D. a firm’s research and development department generates many ideas for new products.
333. Orphagenix, a small biotech firm, avoids head-to-head competition with large
pharmaceutical companies by developing orphan drugs to target diseases that affect fewer
than 200,000 people. This is an example of which of Porter's generic strategies?
A. competitive advantage
B. cost leadership
D. cost focus
335. Once the best strategic alternative is selected, the broad guidelines for its
implementation are then defined by
A. trade-offs.
B. policies.
C. procedures.
D. resource allocation.
336. Which strategy is an attempt to artificially support profits when a company's sales
are declining by reducing investment and short-term discretionary expenditures?
A. profit strategy
B. no-change strategy
C. diversification strategy
D. concentration strategy
337. Which of the following is not one of the four triggering events listed in the text that is
the stimulus for a strategic change?
A. intervention by the organization's bank
B. annual strategic planning conference
C. threat of a takeover
D. new CEO
338. Which strategy specifies the firm's overall direction in terms of its general orientation
toward growth, the industries or markets in which it competes, and the manner in which it
coordinates activities and transfers resources among business units?
A. corporate
B. functional
C. divisional
D. organizational
339. Purchasing a product or service from an outside contractor that had been previously
provided internally is called
A. vertical integration.
B. horizontal integration.
C. transaction costing.
D. outsourcing.
B. switching costs
341. Which is the largest age group of the current generations in all developed countries?
A. Baby Boomers
B. Woofies
C. Silent Generation
D. Gen X
342. The pricing, advertising, branding, selling, and distributing of a product is referred
to as a(n) ________ strategy.
A. human resource management
B. marketing
C. operations
D. financial
343. Walt Disney Company competes successfully in the entertainment industry using
which of Porter's competitive strategies?
A. differentiation
B. stuck in the middle
C. cost leadership
D. cost focus
344. An example of the promotion variable of the marketing mix is
A. advertising.
B. location.
C. services.
D. quality.
345. Morgan Motor Car Company manufactures classic British sports cars. Which of
Porter's strategies is this company following?
A. differentiation focus
B. cost leadership
C. stuck in the middle
D. cost focus
346. The type of strategy, which achieves corporate and business unit objectives and
strategies by maximizing resource productivity is
A. functional
B. operational
C. business
D. product
347. “Identifying and evaluating key social, political, economic, technological and
competitive trends and events”. Which of the followings best describes this statement?
A. Developing an effective mission statement
B. Conducting an internal audit
C. Performing an external audit
D. Formulating strategy
348. As an industry becomes hypercompetitive, firms initially respond by
A. raising entry barriers.
B. moving into untapped markets.
C. attacking the strongholds of other firms.
D. competing on cost and quality.
349. Strategic planning in a multidivisional corporation
A. should be informal to allow complete understanding by the many participants.
B. should be accomplished quickly to decrease the likelihood of it becoming outdated.
C. should encourage a clear delineation between top management and lower-level managers.
D. should be a formalized and sophisticated system.
351. The technique recommended by the text to organize an analysis of external strategic
factors is called
A. IFAS.
B. EFAS.
C. SFAS.
D. SWOT.

Quản-trị-chiiến-lược-ôn-tập

Uploaded by

Copyright:

Available Formats

Quản-trị-chiiến-lược-ôn-tập

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Quản-trị-chiiến-lược-ôn-tập

Uploaded by

Copyright:

Available Formats

1.

You might also like