New entrants to an industry bring:
A. New capacity
B. New customers
C. Few resources
D. Bigger margins
Suppliers can exert bargaining power on participants in an industry by:
A. Stabilizing their cost bas
B. Lowering prices
C. Raising prices
D. Increasing the quality of services
________ exist between different departments or functions in a firm.
A. Vertical boundaries
B. External interface boundaries
C. Horizontal boundaries
D. Geographic boundaries
Which of the following involves large capital investments in capacity to provide
products or services in a given market that are scale sensitive?
A. Path-dependence
B. Casual ambiguity
C. Physical uniqueness
D. Economic deterrence
To avoid the deficiencies that might arise from a permanent matrix structure, some
firms are accomplishing particular strategic tasks by means of a “temporary” or
“flexible”:
A. Overlay structure
B. Market structure
C. Operational structure
D. Advantage structure
Which of these refers to cutting back on products, markets, operations because the
firm’s overall competitive and financial situation cannot support commitments needed
to sustain or build its operations?
A. Conglomerate diversification
B. Concentrated growth
C. Retrenchment
D. Vertical integration
With regards to CSR business have all of these support options except:
A. Donation of cash or material
B. Creation of a functional operation within the company to assist explained charitable
efforts
C. Development of a collaborative approach
D. Outsource the function to a competitor
Consortia are:
A. Licensing agreements that exchange equity positions
B. Joint ventures
C. Decreasing costs but not risks
D. Large interlocking relationships between businesses of an industry
The functional level of decision making is characterized by:
A. The board of directors deriving corporate goals
B. Managers of product, geographic and functional areas
C. The CEO developing a company profile
D. Business managers interpreting the mission into operational objectives
In the value chain framework, there are ____ primary and ____ support activities.
A. 4, 5
B. 5, 4
C. 5, 3
D. 3, 5
One way operating managers ensure decision making is consistent with the mission,
strategy and tactics of the business while allowing considerable latitude to operating
personnel is through the use of:
A. Empowerment
B. Policies
C. Strategic evaluation
D. Facilitating strategic design
Which of the grand strategies is typically lowest in risk?
A. Horizontal integration
B. Concentrated growth
C. Market development
D. Divestiture
One outcome of downsizing is increased _______ at operating levels of the company.
This is allowing work groups or teams to supervise and administer their work without a
direct supervisor exercising the supervisory role.
A. Self-management
B. Empowerment
C. Reengineering
D. Restructuring
Which level of strategy is at the bottom of the decision-making hierarchy?
A. Corporate
B. Business
C. Functional
D. Operational
While ________ may underperform established products in mainstream markets, they
often offer features or capabilities appreciated by some fringe customer group.
A. Throughput technologies
B. Acquired innovations
C. Disruptive innovations
D. Lagging innovations
The Sarbanes-Oxley Act includes provisions restricting the corporate control of all of
these EXCEPT
A. Attorneys
B. Customers
C. Executives
D. Accounting firms
__________ are usually wealthy individuals, also called “angel” investors and they are
increasingly active and accessible as possible equity investors.
A. Informal venture investors
B. Formal venture investors
C. Professional venture capitalists
D. Friendly sources
Strategic decisions have ______ effects on firms.
A. Temporary
B. Short-lived
C. Enduring
D. Limited
_______ is often a single sentence, designed to be memorable. A. Mission statement
B. Agency theory
C. Adverse selection
D. Vision statement
Which of these conditions is also called ‘self-interest combined with a smile?”
A. Moral hazard problems
B. Adverse selection
C. Self-concept
D. Concern for quality
The assembly line workers had already received cutbacks in bonus compensation when
profits fell last quarter. Rogeco’s managers made it clear that unless productivity and
profits were brought back up to the industry benchmarks within two quarters, further
cuts would be made to base pay. This demonstrates:
A. Expert influence
B. Referent influence
C. Information power
D. Punitive power
Functional tactics translate _______ into action designed to accomplish specific
short-term objectives.
A. Corporate strategy
B. Grand strategy
C. Competitive will
D. Business strength
Which cell supports a turnaround-oriented strategy?
A. Cell 2
B. Cell 3
C. Cell 4
D. Cell 1
Quadrant II of the Grand Strategy Selection Matrix suggests which of these strategies
when the basic idea underlying the matrix is the choice of an internal or external
emphasis for growth or profitability?
A. Horizontal integration
B. Conglomerate diversification
C. Market development
D. Retrenchment
Quadrant II of the Grand Strategy Cluster suggests which of these strategies?
A. Horizontal acquisition
B. Concentrated growth
C. Concentric diversification
D. Joint ventures
A recent study by Boston Consulting Group found that the executives indicated their
three biggest problems with innovation. Which of the following is NOT one of those
biggest problems according to the study?
A. Leveraging suppliers for new ideas
B. Appropriately balancing risks, timeframes and returns
C. Generating potentially viable ideas
D. Moving quickly from idea generation to initial sales
___________ is the source of power many new managers expect to be able to rely on,
but often the least useful.
A. Referent power
B. Reward power
C. Punitive power
D. Position power
__________ with other firms that have an interest in a possible innovation share the
costs and risks associated with the effort.
A. Acquisitions
B. Joint strategy
C. Joint ventures
D. Mergers
At present, the public’s perception of the ethics of corporate executives in America is
A. Near its all-time low
B. At the highest level
C. Moderately high
D. Non-existent
The matrix structure:
A. Is easy to design and easy to implement
B. Is difficult to design and difficult to implement
C. Is difficult to design, but easy to implement
D. Is easy to design, but difficult to implement
For competitive advantage to be sustainable, any combination of competencies must be:
A. Expensive
B. Easily imitated
C. Unique
D. Sustainable themselves
__________ is a highly motivated sense of commitment to what you do and want to do.
A. Passion
B. Patience
C. Perseverance
D. Principle
The ________ has the potential disadvantage of increased costs of coordination with
another “pricy” level of management.
A. Matrix organizational structure
B. Product-team structure
C. Holding company
D. Strategic business unit
How do good leaders use leadership development to build an organization?
Describe the competitive strategy of niche market exporting.
How is SWOT analysis used in strategic analysis?
What are the problems created by using activity-based cost accounting?
How do “cost disadvantages independent of size” act as entry barriers?
What is the industry attractiveness-business strength matrix? How does this improve
upon the BCG matrix?
What conditions favor the use of a concentrated growth strategy?
How is innovation different from invention?
Briefly define organizational culture and explain the importance of assumptions.
What is implementation control? Identify the two basic types.
What is the product life cycle? What are its different stages?
Describes briefly the air, water and land pollution occurring in our environment.
Provide examples of federal legislations that address each of these areas.
What is the role of ideogoras in fostering innovation?
What are the strategy choices in global industries?
In what three fundamental ways do functional tactics differ from business or corporate
strategies? Briefly describe each.
What is meant by “concentrated growth” strategy? What are the risks and rewards of
this strategy?
Briefly describe the four types of social responsibilities that managers can consider?
What is a strategic business unit?
How can a firm compare itself with success factors in the industry?