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Total questions: 154

Worksheet time: 1hrs 17mins

Name
Class
Date
1.

The rate at which others can duplicate a firm's underlying resources, capabilities, or

core competencies is called

a)

Transferability

b)

Durability

c)

Transparency.

d)

Imitability.

2.

The emphais of strategic managemeưnt is on?

a)

An examination of the organization's internal environment

b)

Long-term performance

c)

The short-run performance of the corporation

d)

First line managers

3.

A company's strategy is most accurately defined as?

a)

The business model that a company's board of directors has approved foroutcompeting

rivals and making the company profitable.

b)

Management's concept of "where we are headed

c)

Management's game plan for growing the business, attracting and pleasing customers,

conducting operations, and achieving financial and market performance objectives.

d)

Management's approaches to building revenues, controlling costs, and generating an

attractive profit.

4.

Strategic planning within a small organization

a)

May be informal and irregular.

b)

Must be elaborate to allow for future growth.

c)

Should be done by the president only

d)

Should always be formalized and explicitly stated.

5.

The most important aspect(s) of a company's business strategy?

a)

Deals with how management plans to maximize profits while, at the same time, operating

in a socially responsible manner.

b)

Are the actions and moves in the marketplace that managers taketo gain a sustainable

competitive advantage.

c)

Concerns how to improve the efficiency of its business model

d)

Is figuring out how to maximize profits and shareholder value

6.

A difference between basic financial planning and forecast-based planning is?

Select one:

a)

Forecast-based planning incorporates environmental data and extrapolates current trends.

b)

The time horizon is shorter in forecast-based planning

c)

Basic financial planning utilizes scenarios and contingency strategies.

d)

Basic financial planning utilizes consultants with sophisticated techniques

7.

The competitive moves and business approaches a company's managementis using to

grow the business, compete successfully, attract and please customers, conduct

operations, respond to changing economic and market conditions, and achieve

organizational objectives is referred to as its?

a)

Business model

b)

Vision

c)

Mission

d)

Strategy

8.

A sugar company that is worried that consumers may buy artificial sweetener instead

of sugar is concerned about the?

a)

Bargaining power of suppliers

b)

Rivalry among existing firms.

c)

Threat of new entrants.

d)

Threat of substitute products.

9.

According to Porter's model, a strong or high force is likely to reduceprofits and can be

regarded as a(n)?

a)

Threat.

b)

Risk.

c)

Opportunity.

d)

Advantage.

10.

Which of the following statements is not true concerning a corporate reputation?

a)

A good corporate reputation can be a strategic resource.

b)

Reputation tends to be long lasting and hard for others to duplicate.

c)

Research shows no positive relationship between corporate reputation and financial

performance.

d)

There is a positive relationship between corporate reputation and financial performance.

11.

In which type of international industry do corporations tailor products to the specific

needs of consumers in a particular country?

a)

Multi-domestic industry

b)

Indigenous industry

c)

Global industry

d)

Consortium industry

12.

A formal program of gathering information on a company's competitors is referred to

as?

a)

Competitive intelligence

b)

Quantitative forecasting.

c)

Competitive strategy.

d)

Statistical modeling.

13.

Which of the following is not a major force in the societal environment?

a)

Labor forces

b)

Economic forces

c)

Technological forces

d)

Political-legal forces

14.

A company or an industry whose product works well with a firm's product and

without which the product would lose much of its value is considered to be a(n)?

a)

Industry leader.

b)

Complementor.

c)

Oligopoly.

d)

Oligopoly group.

15.

Which of the following is not a major question to ask in thinking strategically about

industry and competitive conditions in a given industry?

a)

How many companies in the industry have good track records for revenue growth and

profitability?

b)

What are the key factors for future competitive success?

c)

What strategic moves are rivals likely to make next?

d)

Does the outlook for the industry offer good prospects for profitability?

16.

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)

Evaluation and control

b)

Statistical process control

c)

Strategy formulation

d)

Strategy implementation

17.

16. What is a set of business units or firms that "pursue similar strategies with similar

resources"?

a)

Strategic group

b)

Collective collaboration

c)

Integral association

d)

Integral association

18.

In a fragmented industry?

a)

Prices increase as new competitors enter the market.

b)

Economies of scale are rarely used to reduce costs.

c)

No firm has large market share.

d)

Companies avoid integration to further reduce costs

19.

Which societal force includes demographic trends

a)

Sociocultural forces

b)

Technological forces

c)

Economic force

d)

Labol force

20.

When an organization is evaluating its strategic position, which is not one of the

strategic questions that an organization generally may ask itself?

a)

Are we on target to hit our financial objectives next year

b)

Where is the organization now

c)

If the evaluation is negative, what specific actions should management take.

d)

d. If no changes are made, where will the organization be in one year

21.

Which environment was generally perceived by business people to be something to

exploit, not conserve, until the twentieth century?

a)

The societal environment

b)

The natural environment

c)

The internal environment

d)

The task environment

22.

The ability of a corporation to shift from one dominant strategy to another is called?

a)

Logical incrementalism.

b)

Strategic flexibility.

c)

Chaos formulation.

d)

Contingency management.

23.

According to Barney's VRIO framework, the firm's exploitation of a competency

pertains to?

a)

Organization.

b)

Imitability.

c)

Value.

d)

d. Rareness.

24.

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 leverage

b)

Marketing mix.

c)

Marketing leverage

d)

Market segmentation

25.

Which of the following is not descriptive of the threat of substitute products or

services?

a)

If the cost of switching is low, substitutes may have a strong effect on an industry.

b)

Substitute products appear to be different but satisfy the sameneed as another product.

c)

Identifying substitutes is relatively easy since they look similar.

d)

Possible substitute products or services may not appear to be easily substitutable.

26.

Porter describes the threat of new entrants. Which of the following is not descriptive

of the "threat of new entrants"

a)

Depends on the reaction of existing competitors

b)

Has a desire to gain market share

c)

Does not impact industry attractiveness

d)

Brings new capacity and substantial resources

27.

According to Porter, the corporation is most concerned with?

a)

The amount of pressure from the societal environment.

b)

A market's position on its life cycle.

c)

The intensity of competition within its industry.

28.

An example of the promotion variable of the marketing mix is?

a)

An example of the promotion variable of the marketing mix is?

b)

Advertising.

c)

Discounts.

d)

Location.

29.

Which of the following is not one of the eight current sociocultural trends mentioned

in the text?

a)

Wage/price controls

b)

Increasing environmental awareness

c)

Decline of the mass market

d)

of the seniors market

30.

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.

31.

A company's strategy is a "work in progress" and evolves over time because of?

a)

The need to make regular adjustments in the company's strategic vision.

b)

The ongoing need to imitate the new strategic moves of the industry leader

c)

The ongoing need of company managers to react and respond to changing industry and

competitive conditions.

32.

Which of the following is an issue likely to be addressed by a company'sbusiness

strategy?

a)

All of the above

b)

. Actions to respond to changing economic and market conditions

c)

Actions to supplement the company's resources and capabilities through alliances and joint

ventures

d. Actions and approaches used in managing the functional areas of the business

33.

When the value chains of two separate products or services share activities, such as

the same marketing channels, in order to reduce costs, this is an example of?

a)

Economies of scope.

b)

Economies of integration.

c)

Economies of scale.

34.

Which of the following is not descriptive of intense rivalry among firms?

a)

Few competitors or competitors that are roughly equal in size and power

b)

Product offerings that are highly differentiated

c)

High exit barriers

d)

High fixed costs

35.

Which of the following is not a support activity of the value chain?

a)

Strategic planning

b)

Human resource managemen

c)

Technology development

d)

Marketing and sales

36.

________ is more valuable because it can provide companies with a sustainable

competitive advantage that is harder for competitors to imitate?

a)

a. Tacit knowledge

b)

b. Transferable knowledge

c)

c. Explicit knowledge

d)

d. Imitable knowledge

37.

Which of the following is not one of the four question areas in VRIO framework used

to evaluate a firm's key resources?

a)

Valuable

b)

Organization

c)

Durability

d)

Rareness

38.

One of the benefits of globalization is?

a)

Economies of scale.

b)

Increased union negotiations

c)

Increased taxes.

d)

Decreased outsourcing.

39.

The corporate mission is best described by which one of the following?

a)

A description of top management's responsibilities

b)

The purpose or reason for the corporation's existence

c)

A description of the activities carried out by the organization

40.

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)

Inbound and outbound logistic

b)

Auditing and accounting

c)

Marketing and sales

d)

Operations

41.

According to Porter's model, a low force can enable the company to earn greater

profits and can be regarded as a(n)?

a)

Threat

b)

Threat

c)

Risk

d)

Opportunity.

42.

Those variables that can affect significantly the overall competitive positions of

companies within any particular industry are known as?

a)

Industry scenario

b)

Key success factors.

c)

Matrix factors.

d)

Internal strategic factors.

43.

Which of the following is not something a company's strategy is concerned with?

a)

Management's choices about how to grow the business

b)

Management's action plan for conducting operations and improving the company's

strategic and financial performance

c)

Management's choices about how quickly and closely to copy the strategiesbeing used by

successful rival companies

d)

Management's choices about how to outcompete rivals

44.

The ability of competitors to use duplicated resources and capabilities to imitate the

other firm's success is called?

a)

Transferability.

b)

Durability.

c)

Transparency.

d)

Replicability

45.

An organization skilled at creating, acquiring, and transferring knowledge, and at

modifying its behavior to reflect new knowledge and insights is a(n)?

a)

Innovative organization.

b)

Strategically managed corporation.

c)

Hypercompetitive competitor.

d)

Learning organization.

46.

A company's strategy consists of?

a)

Plans involving alignment of organizational activities and strategic objectives

b)

Competitive moves and approaches that managers have developed to grow the business,

attract and please customers, conduct operations, and achieve targeted objectives.

c)

Its strategic vision, its strategic objectives, and its strategic intent

d)

Actions to develop a more appealing business model than rivals

47.

Match the "market trend" with its example?

a)

Changes in social behavior such as online networking

b)

Such as interest rate changes

c)

Such as the increased use of social media by certain customer

d)

Changes in the world economy

48.

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)

Internal strategic factors.

b)

SWOT.

c)

Competitive forces.

d)

Quality accounting.

49.

In addition to Porter's Five Forces, another force added in the text is?

a)

Threat of shareholders.

b)

Other stakeholders.

c)

Threat of prospects.

d)

Bargaining power of unions.

50.

Which of the following was normally one of the top benefits of strategic

management?

a)

Improved productivity.

b)

Higher levels of employee motivation

c)

Clearer sense of strategic vision for the firm

51.

The corporation's task environment?

a)

Is an advisory committee to top management.

b)

Is an accounting of the many jobs within an organization.

c)

Includes those elements or groups within an organization's industry.

d)

Encompasses the physical working areas of the organization.

52.

A corporation's ability to exploit its resources is referred to as its?

a)

Capabilities.

b)

Business expertise.

c)

Core competencies.

d)

Critical success factors.

53.

Which type of international industry manufactures and sells the same products with

only minor adjustments made for individual countries around the world?

a)

Global industry

b)

Multi-domestic industry

c)

Indigenous industry

54.

Which one of the following is not one of the five stages of an ongoing,continuous

strategic management process?

a)

Developing a profitable business model

b)

Forming a strategic vision of the company's future direction and focus

c)

Setting objectives to measure progress toward achieving the strategic vision

55.

Which is the largest age group of the current generations in all developed countries?

a)

Baby Boomers

b)

Silent Generation

c)

Woofies

d)

Gen X

56.

According to the text, one reason environmental uncertainty is a threat to strategic

managers is because?

a)

It hampers their ability to develop long-range plans and make strategic decisions.

b)

It creates a new playing field in which creativity and innovation can play a major part in

strategic decisions.

c)

It forces the strategic manager to be more stable.

d)

It is a costly and time-consuming process

57.

Which of the following is a function of corporate culture?

a)

It encourages flexibility and thus constant change.

b)

It generates creative approaches to new situations.

c)

It conveys a sense of identity for employees.

d)

It encourages a laissez faire set of attitudes

58.

A creative, distinctive strategy that delivers a sustainablecompetitive advantage is

important because?

a)

Without a competitive advantage a company cannot have a profitable business model

b)

Without a proven strategy a company is likely to fall into bankruptcy

c)

A strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance

d)

A competitive advantage is what enables a company to achieve its strategic objectives

59.

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)

Total weighted score.

b)

Industry matrix.

c)

IFAS score.

d)

SWOT score

60.

The monitoring, evaluating, and disseminating of information from theexternal and

internal environments to key people within the corporation is referred to as?

a)

Internal scanning.

b)

Strategy formulation.

c)

Environmental scanning.

d)

External scanning.

61.

An industry dominated by a few large firms, all of which struggle with product

differentiation, is known as?

a)

Multi-domestic.

b)

Indigenous.

c)

Global.

d)

Consolidated.

62.

When a company's core competencies are superior to those of competitors, these are

known as?

a)

Distinctive competencies.

b)

Critical success factors.

c)

Core competencies.

d)

Resources.

63.

Which of the following is not an element of the organization's task environment?

a)

Trade associations

b)

Governments

c)

Technological developments

d)

Special interest groups

64.

A company with significant assets and activities in multiple countries is known as a?

a)

Repatriated corporation.

b)

Duplicate corporation.

c)

Multi-national corporation.

d)

Transferable corporation.

65.

It is normal for a company's strategy to end up being?

a)

Left unchanged from management's original planned set of actions and business

approaches since making on-the-spot changes is too risky.

b)

Like the strategies of other industry members since all companies are confronting much

the same market conditions and competitive pressures.

c)

A blend of deliberate planned actions to improve the company's competitiveness and

financial performance and as-needed unplanned reactions to unanticipated developments

and fresh market conditions.

d)

A combination of defensive moves to protect the company's market share and offensive

initiatives to set the company's product offering apart from rivals

66.

Which of the following is not one of the five typical sources of competitive

pressures?

a)

The threat of new entrants into the market

b)

The attempts of companies in other industries to win customersover to their own

substitute products

c)

The bargaining power of suppliers and seller-supplier collaboration

d)

The power and influence of industry driving forces

67.

All of the following are technological breakthroughs already having a significant

impact on many industries EXCEPT?

a)

Genetically altered organisms

b)

Growing health consciousness.

c)

Alternative energy sources.

d)

Smart, mobile robots.

68.

Knowledge that is not easily communicated because it is deeply rooted in employee

experience or in a corporation's culture is called?

a)

Imitable knowledge.

b)

Tacit knowledge.

c)

Transferable knowledge.

d)

Explicit knowledge.

69.

Knowledge that can be easily articulated and communicated is known as?

a)

Explicit knowledge.

b)

Imitable knowledge.

c)

Transferable knowledge.

d)

Tacit knowledge.

70.

The theory that proposes organizations can and do adapt to changing conditionsby

imitating other successful organizations is known as?

a)

Citizenship theory.

b)

Institution theory.

c)

Population ecology.

d)

Strategic theory.

71.

70. The ability of an organization to reshape its environment is described by?

a)

Population ecology theory.

b)

Institution theory.

c)

Organizational learning theory.

d)

The strategic choice perspective.

72.

The Strategic Management Model presents the following process forstrategy

formulation?

a)

Policies – Mission – Strategies – Objectives.

b)

Mission – Policies – Strategies – Objectives.

c)

Mission – Objectives – Strategies – Policies.

d)

Policies – Strategies – Objectives – Mission.

73.

The primary activity of a competitive intelligence unit is to?

a)

Monitor competitors.

b)

Engage in corporate espionage.

c)

Determine industry R&D statistics.

d)

Survey stakeholders.

74.

Which barrier to entry do corporations such as P&G use to force new entrants to

spend heavily to overcome existing customer loyalty?

a)

Access to distribution channels

b)

Product differentiation

c)

Switching costs

d)

Capital requirements

75.

74. The term used to describe new products, services, methods, and organizational

approaches that allow businesses to achieve extraordinary returns is?

a)

Profit maximization.

b)

Innovation.

c)

Competitive advantage.

d)

Sustainability.

76.

75. The triple bottom line refers to which of the following?

a)

Physical environment, traditional profit/loss, and air

b)

Water, air, and oil

c)

Traditional profit/loss, social responsibility, and environmental responsibility

d)

Footprints, finance, and environment

77.

76. Research suggests that strategic management evolves through foursequential phases

in corporations. The first phase is?

a)

Externally oriented planning

b)

Forecast-based planning.

c)

Internally oriented planning

d)

Basic financial planning

78.

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 identify major stockholders

c)

Used to monitor, evaluate, and disseminate information relevant to the organizational

development of strategy

79.

Managers in all types of businesses must address the central strategic question?

a)

Where do we want to go from here?

b)

When will we know we are there?

c)

How are we going to get there?

d)

Where are we now?

80.

Which of the following is not an element of a company's business strategy?

a)

Actions to respond to changing market conditions or other external factors

b)

Management actions to revise the company's financial and strategic performance targets

c)

Actions to strengthen internal capabilities and competitively valuable resources

d)

\Actions to strengthen competitiveness via strategic alliancesand collaborative partnerships

81.

The technique recommended by the text to organize an analysis of external strategic

factors is called?

a)

EFAS.

b)

IFAS

c)

SFAS

d)

SWOT

82.

The strategic management process is shaped by?

a)

The decisions made by the compensation and audit committees of the board of directors.

b)

External factors such as the industry's economic and competitive conditions and internal

factors such as the company's collection of resources and capabilities.

c)

A company's customer value proposition and profit formula.

d)

Management's strategic vision, strategic and financial objectives, and strategy.

83.

Industry analysis is primarily concerned with a corporation's?

a)

Economic environment.

b)

Sociocultural environment.

c)

Societal environment.

d)

Task environment.

84.

Which of the following is not descriptive of the threat of substitute products or

services?

a)

If the cost of switching is low, substitutes may have a strong effect on an industry.

b)

Possible substitute products or services may not appear to be easily substitutable.

c)

Identifying substitutes is relatively easy since they look similar.

d)

Substitute products appear to be different, but satisfy the same need as another product.

85.

A company may develop an emergent strategy due to?

a)

Strategic moves by rival firms.

b)

Fast-changing technological developments.

c)

All of the above.

86.

Which barrier to entry uses cost advantages associated with large size?

a)

Capital requirements

b)

Economies of scale

c)

Switching costs

d)

Cost disadvantages independent of size

87.

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)

Operational personnel.

88.

The combination of the degree of complexity and the degree of change existing in an

organization's external environment is/are called?

a)

Strategic fit.

b)

Strategic issues.

c)

Environmental uncertainty.

d)

Strategic factors.

89.

89. According to Porter, the collective strength of the interactionof potential entrants,

buyers, substitutes, suppliers, firm rivalry, and other stakeholders determine?

a)

The probable industry attractiveness and business strength position.

b)

The level of government action in an industry.

c)

The ultimate profit potential in the industry measured in terms of long-run return on

invested capital.

d)

The aggregate level of demand for a product line.

90.

Which of the following is not descriptive of a high level of bargaining powers of

buyers?

a)

Alternative suppliers are plentiful because of standardization of the product.

b)

The buyer buys a large proportion of the seller's product or service.

c)

The purchased product represents a high percentage of buyer's costs.

d)

A buyer earns high profits and is very insensitive to costs and service differences.

91.

When strategic managers have a willingness to reject unfamiliar as well as negative

information it is referred to as

a)

A) strategic paralysis

b)

B) corporate inertia.

c)

C) management indifference.

d)

D) strategic myopia.

92.

According to Porter, seeing clothing firms such as Under Armour enter the athletic

shoe industry would reflect a

a)

A) medium bargaining power of suppliers.

b)

B) low threat of substitutes.

c)

C) medium bargaining power of buyers.

d)

D) high threat of potential entrants.

93.

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

c)

cost disadvantages independent of size

d)

capital requirements

94.

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.

95.

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.

96.

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.

97.

Other software companies would not compete with Microsoft based on the perceived

hesitation of consumers to try new software. Which of Porter's forces does this reflect?

a)

exit barriers

b)

bargaining power of buyers

c)

threat of substitutes

d)

bargaining power of suppliers

98.

A relationship that illustrates the term "complementor" is

a)

Microsoft and Intel

b)

General Motors and Ford.

c)

Hewlett Packard and Compaq.

d)

Gateway and Dell.

99.

The strength of each of the six driving forces of industry competition varies according to the

a)

effectiveness of the strategic planning

b)

stage of industry evolution.

c)

capital requirements.

d)

changes in the political environment

100.

The U.S. major home appliance industry is an example of an industry

a)

that has evolved from an oligopoly to a monopoly.

b)

in which each company maintained a distinct product line.

c)

that was once fragmented, but now is consolidated.

d)

that has experienced consistent, increasing sales.

101.

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

102.

Two factors tend to determine whether an industry will be primarily multi-domestic or

primarily global. One of the factors is pressure for coordination within the MNCs operating in

that industry. The other factor is

a)

A) the pressure for local responsiveness on the part of individual country markets.

b)

the power of the local country governments to restrict MNC actions.

c)

the need for brand management in the various MNCs operating within that industry.

d)

the importance of differentiating with integrating mechanisms in regional

cooperatives.

103.

When the pressure for coordination is strong and the pressure for local responsiveness is

weak for multi-national corporations within a particular industry, the industry will tend to

become

a)

consolidated.

b)

global

c)

risky

d)

multi-domestic.

104.

When the pressure for local responsiveness is strong and the pressure for coordination is

weak for multi-national corporations in an industry, the industry will tend to become

a)

global

b)

risky

c)

multi-domestic.

d)

consolidated

105.

Which of the following is not one of the general strategic types according to Miles and

Snow?

a)

initiators

b)

reactors

c)

analyzers

d)

prospectors

106.

According to Miles and Snow, which strategic orientation is demonstrated by companies that

have a limited product line and focuses on improving the efficiency of their existing operations?

a)

initiators

b)

reactors

c)

analyzers

d)

defenders

107.

According to Miles and Snow, a company that operates in at least two different productmarket areas in which one product is stable and the other one is variable, reflects which strategic

orientation?

a)

initiators

b)

reactors

c)

analyzers

d)

prospectors

108.

According to Miles and Snow, companies with fairly broad product lines that focus on

product innovations and market opportunities, such as Frito-Lay, reflect which strategic

orientation?

a)

initiators

b)

reactors

c)

analyzers

d)

prospectors

109.

A table which summarizes the key success factors within a particular industry is called a(n)

a)

EFAS Table.

b)

IFAS Table.

c)

IFAS Table.

d)

industry matrix.

110.

Which of the following is true in regards to competitive intelligence?

a)

The Economic Espionage Act makes it illegal to steal any material that a business

has taken "reasonable efforts" to keep secret.

b)

The Society of Competitive Intelligence Professionals urges strategists to stay

within the law and to act ethically when searching for information

c)

The competitive intelligence function is always housed in its own unit

within organizations.

d)

The Society of Competitive Intelligence Professionals states that illegal activities

are foolish because the vast majority of worthwhile competitive intelligence is

available publicly via annual reports, websites, and libraries.

111.

Over ___ of large companies use trend extrapolation for forecasting.

a)

20%

b)

30%

c)

40%

d)

70%

112.

A study of nearly 500 of the world's largest corporations indicated which of the following

to be the most widely practiced form of forecasting?

a)

statistical modeling

b)

scenario-writing

c)

Delphi technique

d)

trend extrapolation

113.

According to Miles and Snow, most major U.S. airlines have reflected whichstrategic

orientation?

a)

initiators

b)

reactors

c)

analyzers

d)

prospectors

114.

To succeed in a hypercompetitive industry, companies must be willingto

a)

cut prices below marginal costs

b)

pursue market share instead of profits.

c)

pursue market share instead of profits.

d)

cannibalize their successful product lines.

115.

____ rests on the assumption that the world is reasonably consistent and changes

slowly in the short run.

a)

Statistical modeling

b)

Scenario-writing

c)

Brainstorming

d)

Extrapolation

116.

Trend extrapolation is

a)

the process of converting intuition and hunches into reality.

b)

the extension of present trends into the future.

c)

the process of asking some authorities in the area to make an "informed guess" about

the future.

d)

given a large amount of historical data on certain interrelated factors, one attempts to conceptualize alternative futures.

117.

A non-quantitative approach to forecasting that requires simply the presence of people with

some knowledge of the situation to be predicted to propose ideas without first mentally screening

them is called

a)

simulations.

b)

the Delphi technique.

c)

brainstorming.

d)

signal monitoring.

118.

One ground rule necessary for effective brainstorming is

a)

critique each idea for rationality

b)

scrutinize each idea generated.

c)

propose ideas without mentally screening them.

d)

calculating future earnings of each idea.

119.

Regression analysis is an example of which quantitative forecasting technique?

a)

the Delphi technique

b)

statistical modeling

c)

brainstorming

d)

trend-impact analysis

120.

The most widely used forecasting technique used after trend extrapolation is

a)

statistical modeling.

b)

simulations.

c)

scenario-writing

d)

expert opinion.

121.

Which one of the following is not part of the process of developing industry scenarios

a)

Identify uncertainties in each of the six forces in the task environment.

b)

Examine possible shifts in societal variables.

c)

Generate at least 15 scenarios

d)

Analyze the industry situation that would prevail under each scenario.

122.

Strategy formulation or strategic planning begins with a(n) ________, which is

the process of finding a strategic fit between external oppor tunities and internal

strengths while working around external threats and internal weaknesses.

a)

Objective analysis.

b)

Position analysis.

c)

Situation analysis.

d)

Strategic evaluation.

123.

Strategic planning in a multidivisional corporation

a)

Should be a formalized and sophisticated system

b)

Should encourage a clear delineation between top management and lower-level

managers.

c)

Should be instigated only from the main corporate office.

d)

Should be accomplished quickly to decrease the likelihood of it becoming

outdated.

124.

Which of the following questions ought to be used to distinguish a winning

strategy from a so-so or flawed strategy?

a)

Is the company putting too little emphasis on growth and profitability and too

much emphasis on behaving in an ethical and socially responsible manner?

b)

Does the strategy contain a sufficient number of emergent/reactive elements?

c)

Is the strategy resulting in the development of additional competitive capabilities?

d)

Is the strategy well-matched to the company' s situation, helping the company

achieve a sustainable competitive advantage, and resulting in better company

performance?

125.

In evaluating proposed or existing strategies managers should

a)

Evaluate the firm' s business model at least every three years.

b)

Ensure core capabilities are incorporated for establishing a competitive

advantage.

c)

Examine the company' s existing strategies compatibility with desired outcomes

on a regular basis.

d)

Initiate new initiatives even though they don 't seem to match the company' s

internal and external situation

126.

An acronym for the assessment of the external and internal environments

of the business corporation in the process of strategy formulation/strategic

planning is

a)

SWOT

b)

MBO

c)

EFAS

d)

IFAS

127.

What are the three generic competitive strategies that Porter promotes as

the means for outperforming other corporations in a particular industry?

a)

Diversification, concentration, and competitive scope

b)

Concentration, cost leadership, and differentiation

c)

Cost, competitive scope, and focus

d)

Cost leadership, differentiation, and focus

128.

Walmart, as a discount retailer , is an example of a company following which

of Porter' s competitive strategies?

a)

Differentiation

b)

Differentiation focus

c)

Competitive advantage

d)

Cost leadership

129.

According to Porter , a business unit in a competitive marketplace with no

generic competitive strategy is

a)

Last in line

b)

Stuck in the middle.

c)

Practicing innovative leadership.

d)

Not goal directed

130.

The two general types of cooperative strategies are

a)

Strategic alliances and collusion.

b)

Strategic alliances and competitive.

c)

Competitive and functional.

d)

Collusion and competitive.

131.

Product engineering, creative flair , and strong cooperation from channels

are commonly required skills and resources for which of Porter' s generic

strategies?

a)

Differentiation

b)

Cost leadership focus

c)

Differentiation focus

d)

Cost leadership

132.

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)

Cost leadership focus

c)

Differentiation focus

d)

Differentiation

133.

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)

Divisional

b)

Organizational

c)

Functional

d)

Corporate

134.

The pricing, selling, and distributing of a product is referred to as a(n)

________ strategy .

a)

Operations

b)

Marketing

c)

Functional

d)

Financial

135.

All of the following are benefits for a company to raising its debt levels

EXCEPT

a)

Improve strategic options available.

b)

Improve cash flows.

c)

Force management to focus on core businesses.

d)

Improve productivity.

136.

Leveraged buyouts are also sometimes referred to as

a)

Management bargains.

b)

Coordinated buyouts.

c)

Leveraged bargains.

d)

Management buyouts.

137.

The strategy that deals with product and process innovation and

improvement is known as a(n) ________ strategy

a)

Financial

b)

Marketing

c)

Operations

d)

R&D

138.

A company that pioneers an innovation is called a

a)

Technological manufacturer

b)

Technological opportunist

c)

Technological follower

d)

Technological leader

139.

A company that imitates the products of competitors is referred to as a

a)

Technological follower .

b)

Technological opportunist.

c)

Technological manufacturer .

d)

Technological leader .

140.

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 process utilizing the just-in-time (JIT) method of manufacturing.

d)

A grouping of parts into manufacturing families to produce a wide variety of

mass-produced items.

141.

Which of the following statements about a company's realized strategy is true? *

a)

Ensure core capabilities are incorporated for establishing a competitive advantage.

b)

Examine the company's existing strategies compatibility with desired outcomes on a regular basis.

c)

Initiate new initiatives even though they don't seem to match the company's internal and external situation.

d)

Evaluate the firm's business model at least every three years.

142.

When a company deals with obtaining raw materials, parts, and supplies

needed to perform the operations function, the company is developing its

________ strategy

a)

Financial

b)

Operations

c)

Purchasing

d)

R&D

143.

The purchasing strategy used by an automobile manufacturer when it

orders seats for a specific car model from several vendors is

a)

Backup sourcing.

b)

Multiple sourcing.

c)

Just-in-time sourcing.

d)

Sole sourcing.

144.

The flow of products into and out of the manufacturing process is a factor

when developing a(n) ________ strategy

a)

Logistics

b)

Financial

c)

Operations

d)

Marketing

145.

What is likely to be the effect of a logical corporate strategy , but poor

strategy implementation.

a)

Structural and stylistic flaws.

b)

Strategic weaknesses and underachievement.

c)

Fragmented performance, through strategic and structural flaws.

d)

Effectiveness, but little efficiency .

146.

Which of these is not a valid reason, in support of focused strategies?

a)

Cost reduction

b)

Competence consolidation.

c)

Reduction of weak business to develop a strong core.

d)

Greater control.

147.

Which of the following, is not a strategic criteria for deciding which firms to

retain in the organizational core?

a)

Financial performance over time.

b)

The company’ s mission.

c)

Relatedness of technologies.

d)

Longevity .

148.

Which of these is not an activity associated with restructuring?

a)

Value optimization.

b)

Intervening in business processes.

c)

Hoarding new businesses.

d)

Acquiring unrelated businesses.

149.

Corporate resource allocation may be different, depending on the speed of growth of the organization. Which of the following is inappropriate when facing rapid growth?

a)

Look to share activities.

b)

Past allocations and budgets.

c)

Opportunities for synergy .

d)

Assess desirability of outcomes to organizational strategy .

150.

Which of the following is not an aspect, of the definition, of the term budgets?

a)

Concerned with allocation of resources and investment.

b)

Information on cash-flow.

c)

Numerical or financial expression of money to be spent by departments and for what purpose.

d)

A strategic plan outlining means to utilize budget, make sales, and generate profits.

151.

How many steps are there in effective risk management?*

a)

Eight

b)

Two

c)

Three

d)

Four

152.

What are designed to guide managers in the pursuit, and achievement, of strategies and objectives?*

a)

Budgets

b)

Policies

c)

Procedures

d)

Plans

153.

Strategy effectiveness, and competitive success, are dependent on which of the following groups of competencies?*

a)

Change, planning, learning

b)

Content, change, learning

c)

Learning, planning, content

d)

Content, change, planning

154.

Which of the following competencies relates to functionality

a)

Developing and introducing new processes, for cost savings and speedier decision-making

b)

Providing excellent quality, which is recognized by customers

c)

Avoid business failures by becoming and staying crisis averse

d)

Manage 'green' issues to avoid crises or create competitive advantage