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SM (1-30)

Total questions: 30

Worksheet time: 6mins

Name
Class
Date
1.

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

a)

It is a costly and time-consuming process.

b)

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

c)

It forces the strategic manager to be more stable.

d)

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

2.

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

a)

Strategic planning

b)

Human resources management

c)

Technology development

d)

Marketing & Sales

3.

What is a set of business units or firms that "pursue similar strategies with similar resources"?

a)

Integral association

b)

Strategic group

c)

Collective collaboration

d)

Cooperative

4.

Which barrier to entry do corporations such as P&G use to force new entrants to spend heavily to overcome existing customer loyalty?

a)

Switching costs

b)

Capital requirements

c)

Product differentiation

d)

Access to distribution channels

5.

Which of the following is a function of corporate culture?

a)

It conveys a sense of identity for employees.

b)

It generates creative approaches to new situations.

c)

It encourages flexibility and thus constant change.

d)

It encourages a laissez faire set of attitudes.

6.

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)

Growth of the seniors market

d)

Decline of the mass market

7.

Which societal force includes demographic trends?

a)

Technology forces

b)

Sociocultural forces

c)

Labors forces

d)

Economic forces

8.

The technique recommended by the text to organize an analysis of external strategic factors is called?

a)

SWOT

b)

IFAS

c)

SFAS

d)

EFAS

9.

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)

Industry matrix

b)

Total weighted score

c)

IFAS score

d)

SWOT score

10.

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

a)

Actions to strengthen competitiveness via strategic alliances and collaborative partnerships

b)

Actions to respond to changing market conditions or other external factors

c)

Actions to strengthen internal capabilities and competitively valuable resources

d)

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

11.

A creative, distinctive strategy that delivers a sustainable competitive advantage is important because?

a)

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

b)

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

c)

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

d)

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

12.

The strategic management process is shaped by?

a)

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

b)

A company's customer value proposition and profit formula.

c)

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

d)

External factors such as the industry's economic and competitive conditions and internal factors such as the company's collection of resources and capabilities.

13.

One of the benefits of globalization is?

a)

Increased union negotiations.

b)

Decreased outsourcing.

c)

Economies of scale

d)

Increased taxes.

14.

A company may develop an emergent strategy due to?

a)

All of the above.

b)

Fast-changing technological developments.

c)

Strategic moves by rival firms.

d)

Unexpected shifts in customer preferences

15.

According to Porter's model, a strong or high force is likely to reduce profits and can be regarded as a(n)?

a)

Risk

b)

Advantage

c)

Opportunity

d)

Threat

16.

Industry analysis is primarily concerned with a corporation's?

a)

Sociocultural environment.

b)

Economic environment.

c)

Societal environment.

d)

Task environment.

17.

The Strategic Management Model presents the following process for strategy formulation?

a)

Mission – Policies – Strategies – Objectives.

b)

Policies – Strategies – Objectives – Mission.

c)

Mission – Objectives – Strategies – Policies

d)

Policies – Mission – Strategies – Objectives.

18.

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

a)

Switching costs

b)

Economic of scale

c)

Cost disadvantages independent of size

d)

Capital requirements

19.

A company's strategy is most accurately defined as?

a)

Management's game plan for growing the business, attracting and pleasing customers, conducting operations, and achieving financial and market performance objectives.

b)

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

c)

Management's concept of "where we are headed”

d)

The business model that a company's board of directors has approved for outcompeting rivals and making the company profitable

20.

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

a)

Critical success factors.

b)

Resources

c)

Core competencies

d)

Distinctive competencies

21.

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

a)

Services.

b)

Discounts

c)

Location

d)

Advertising

22.

In the final phase of strategic management, strategic information is available to?

a)

The top management responsible for decision-making

b)

Operational personnel

c)

People throughout the organization

d)

Middle management

23.

An industry dominated by a few large firms, all of which struggle with product differentiation, is known as?

a)

Indigenous

b)

Global

c)

Multi-domestic

d)

Consolidated

24.

Which environment was generally perceived by business people to be something to exploit, not conserve, until the twentieth century?

a)

The natural environment

b)

The internal environment

c)

The Societal environment

d)

The task environment

25.

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

a)

Transferable corporation.

b)

Duplicate corporation

c)

Repatriated corporation

d)

Multi-national corporation.

26.

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

a)

Concerns how to improve the efficiency of its business model

b)

Are the actions and moves in the marketplace that managers take to gain a sustainable competitive advantage.

c)

Deals with how management plans to maximize profits while, at the same time, operating in a socially responsible manner.

d)

Is figuring out how to maximize profits and shareholder value

27.

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 factors

c)

Environmental uncertainty

d)

Strategic issues

28.

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

a)

Critical success factors

b)

Core competencies

c)

Capabilities

d)

Business expertise

29.

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

a)

Higher levels of job satisfaction

b)

Improved productivity

c)

Clearer sense of strategic vision for the firm

d)

Higher levels of employee motivation

30.

The emphasis of strategic management is on?

a)

The short-run performance of the corporation

b)

An examination of the organization's internal environment

c)

Long term performance

d)

First line managers