Strategic Management Midterm Mock Exam

Mock Midterm Exam 1. 2. 3. 4. 5. 6. 7. 8. 9. According to the text, the strategic management process entails three ongoing processes. They are: a. Analyses, actions, and synthesis b. Analyses, decisions, and actions c. Analyses, evaluation, and critique d. Analyses, synthesis, and decisions The four key attributes of strategic management include the idea that strategy must: a. Be directed toward overall organizational goals and objectives. b. Be focused only on long-term objectives. c. Be focused on only one specific area of an organization. d. Focus only on competitor strengths. The four key attributes of strategic management include all of the following except: a. Including multiple stakeholder interests in decision making. b. Incorporating both short-term and long-term perspectives. c. Recognizing the trade-offs between effectiveness and efficiency. d. Emphasis on the attainment of short-term objectives. Effectiveness is often defined as: a. Doing things right b. Stakeholder satisfaction c. Doing the right thing d. Productivity enhancement In choosing to focus on stakeholders, which of the following will not lead to success for a manager? a. Shareholders and employees b. Employees and suppliers c. Customers and the community at large d. Customers only In strategic management, both the short-term and long-term perspectives need to be considered because a. Shareholder value is only measured by short-term returns. b. Shareholders only care about long-term returns. c. Long-term vision precludes the analysis of present operating needs. d. The creative tension between the two forces managers to develop more successful strategy. Strategic management involves the recognition of trade-offs between effectiveness and a. Cost b. Value c. Return on investment d. Efficiency All of the following are ambidextrous behaviors except a. Taking initiative and being alert to opportunities beyond the job description. b. Being cooperative and seeking opportunities to combine personal efforts with that of others. c. Intensely focusing on the responsibilities of one individual and maximizing the output of the department in the organization in which that individual works. d. Being brokers, always looking to build internal linkages. Ambidextrous behaviors in individuals illustrate how a dual capacity for _________ can be woven into the fabric of an organization at the individual level. a. Alignment and adaptability b. Alignment and transparency c. Alignment and internal linkages d. Alignment and efficiency 10. According to Henry Mintzberg, the final realized strategy of a firm is a. A combination of deliberate and emergent strategies. b. A combination of deliberate and differentiation strategies. c. Not deliberate. d. A result of unrealized intended strategy. 11. ___________ may be considered the advance work that must be done in order to effectively formulate and implement strategies. a. Goal setting b. Corporate entrepreneurship c. Strategy analysis d. Organizational design 12. Strategy analysis is the starting point of the strategic management process and consists of the a. Analysis only of the vision, mission, and objectives of the firm. b. Analysis of the relevant internal and external environmental factors only. c. Analysis of the relevant competitors only. d. Matching of vision, mission, and objectives with the relevant internal and external environmental factors. 13. Strategy formulation at the business level addresses best how to compete in a given business: a. To attain competitive advantage b. To reduce costs c. To decrease buyer power d. To thwart entry of new rivals 14. Entering foreign markets requires firms to ascertain foremost how they will attain a. Market share. b. Low costs. c. Competitive advantage. d. Low returns on investment. 15. Effective leaders set a direction and develop an organization so that it is committed to excellence and ________ behavior. a. Performant b. Strategic c. Ethical d. Positive 16. Stakeholders are: a. A new way to describe stockholders b. Individuals, groups, and organizations who have a stake in the success of the organization. c. Creditors who hold a lien on the assets of the organization. d. Attorneys and their clients who sue the organization. 17. Procter and Gamble has perfected a technique for compacting cleaning powder into a liquid concentration. Consumers, retailers, shipping and wholesalers, and environmentalists all have benefited from the resulting change in consumer shopping habits and the revolution in industry supply-chain economics. According to the text, this is an example of: a. Zero-sum relationship among stakeholders b. Stakeholder symbiosis c. Rewarding stakeholders d. Emphasizing financial returns. 18. There are several perspectives of competition. One perspective is zero-sum thinking. Zero-sum thinking means that a. All parts of the organization gain at no loss. b. In order for someone to gain others must experience no gain or benefit. c. One can only gain at the expense of someone else. d. Everyone in the organization shares gains and losses equally. 19. Managers should do more than focus on short-term financial performance. One concept that helps managers do this is stakeholder symbiosis. This means that a. Stakeholders are dependent ono each other for their success. b. Stakeholders look out for their individual interests. c. One can only gain at the expense of someone else. d. All stakeholders want to maximize shareholder returns. 20. Employee stakeholders are concerned with a. Taxes, warranties, and regulations. b. Wages, benefits, and job security. c. Good citizenship behavior. d. Dividends. 21. Stockholders as a stakeholder group are interested primarily by a. Payment of interest and repayment of principal. b. Value and warranties. c. Dividends and capital appreciation. d. Taxes and compliance with regulations. 22. Wall Street executives have received excessive bonus pay in the past. This concerns which of the following stakeholder groups most directly? a. Government b. Suppliers c. Creditors d. Stockholders 23. Supplier stakeholders are concerned with a. Assurance of a continued relationship with the firm. b. Employee benefits. c. Safe working conditions. d. Capital appreciation. 24. Community stakeholders are concerned primarily with a. Product warranties. b. Corporate citizenship behavior. c. Capital appreciation. d. Repayment of principal. 25. Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility, which is the a. Expectation that businesses will strive to improve the overall welfare of society. b. Idea that organizations are solely responsible to local citizens. c. Fact that court costs could impact the financial bottom line. d. Idea that businesses are responsible for maintaining a healthy social climate for their employees. 26. According to the text, the triple bottom line approach to corporate accounting includes which three components? a. Financial, environmental, and customer b. Financial, organizational, and customer c. Financial, environmental, and social d. Financial, organizational, and psychological 27. Local line leaders have _________ responsibility. a. Local b. Executive c. Profit-and-loss d. No 28. Executive leaders champion and guide ideas by a. Reinforcing ideas that did not work. b. Creating a learning infrastructure. c. Validating their formal authority. d. Increasing their personal power. 29. The hierarchy of organizational goals in this order (least specific to most specific): a. Vision statements, strategic objectives, mission statements b. Mission statements, strategic objectives, vision statements c. Vision statements, mission statements, strategic objectives d. Mission statements, vision statements, strategic objectives 30. Vision statements are used to create a better understanding of the overall purpose and direction of the organization. Vision statements a. Are very specific. b. Provide specific objectives. c. Set organizational structure. d. Evoke powerful and compelling mental images. 31. Effective vision statements include a. All strategic directions of the organization. b. A brief statement of the company’s direction. c. Strategic posturing and future objectives. d. Financial objectives and projective figures. 32. In contrast to the vision of an organization, its mission should a. Be shorter in length. b. Encompass both the purpose of the company as well as the basis of competition. c. Encompass all the major rules and regulations of the corporate work force. d. Be less detailed. 33. The mission and mission statements of a company set the overall direction of the organization. Strategic objectives serve what role? a. Operationalize the mission statement b. Modify the mission statement c. Are a shorter version of the mission statement d. Are only clarified by the board of directors 34. Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis? a. Organizational strengths may not lead to competitive advantage. b. The SWOT focus on the external environment is too board and integrative. c. SWOT gives a one-shot view of a moving target. d. SWOT overemphasizes a single dimension of strategy. 35. Which of the following is a limitation of SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis? a. Organizational strengths may not lead to competitive advantage. b. The SWOT focus on the external environment is too board and integrative. c. SWOT gives a one-shot view of a moving target. d. SWOT overemphasizes a single dimension of strategy. 36. A key _________ of SWOT is that it is primarily a static assessment. a. Strength b. Threat c. Opportunity d. Weakness 37. Strategists who rely on traditional definitions of their industry and competitive environment often focus their sights too _________ on current customers, technologies, and competitors. a. Broadly b. Narrowly c. Aggressively d. Widely 38. Company ___________, no matter how unique or impressive, may not enable it to achieve a competitive advantage in the marketplace. a. Strengths and opportunities b. Strengths and threats c. Opportunities d. Strengths and capabilities 39. A SWOT analysis alone _________ helps a firm develop competitive advantages that it can sustain over time. a. Usually b. Often c. Rarely d. Regularly 40. Inbound logistics include a. Machining and packaging. b. Repair and parts supply. c. Promotion and packaging. d. Warehousing and inventory control. 41. In assessing its primary activities, an airline would examine a. Employee training programs. b. Baggage handling. c. Criteria for lease versus purchase decisions. d. The effectiveness of its lobbying activities. 42. Advertising is a _______ activity. Supply of replacement parts is a _______ activity. a. Support; primary b. Primary; primary c. Primary; support d. Support; primary 43. ____________ is/are associated with collecting, storing, and distributing the product or service to buyers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling. a. Services b. Inbound logistics c. Outbound logistics d. Operations 44. Which of the following is a support activity? a. Inbound logistics b. Customer service c. Technology development d. Operations 45. Which of the following lists consists of support activities? a. Human resource management, technology development, customer service, and procurement b. Human resource management, customer service, marketing and sales, and operations c. Customer service, information systems, technology development, and procurement d. Human resource management, technology development, procurement, and general administration 46. According to value-chain analysis, which of the following would be considered part of the general administration in a firm? a. Information systems b. Technology development c. Human resource management d. Procurement 47. In a retail service industry, which of the following is not a primary value-chain activity? a. Purchasing goods b. Human resource management c. Partnering with vendors d. Operating stores 48. Regarding the value-chain concept, the most important interrelationship is between the organization and its a. Board of directors. b. Employees. c. Management. d. Customers. 49. The resource-based view (RBV) of the firm combines the following two perspectives: a. The primary and support activities of the firm. b. The interrelationships among the primary activities of the firm and corporate management. c. The internal analysis of the firm and the external analysis of the industry and competitive environment. d. The industry and the competitive environment. 50. The three key types of resources that are central to the resource-based view of the firm are: a. Tangible resources, intangible resources, and organizational structure. b. Culture, tangible resources, intangible resources. c. Tangible resources, intangible resources, and organizational capabilities. d. Tangible resources, intangible resources, and top management. 51. In the resource-based view of the firm, examples of tangible resources include: a. Financial resources, human resources, and firm competencies. b. Financial resources, physical resources, and technological resources. c. Financial resources, physical resources, and the capacity to combine intangible resources. d. Outstanding customer service, innovativeness of products, and reputation. 52. ___________ are typically embedded in unique routines and practices that have evolved and accumulated over time such as effective work teams. a. Tangible resources b. Intangible resources c. Reputational resources d. Organizational capabilities 53. Apple combines and packages proven technology in new and innovative ways. This is an example of its use of a. Tangible resources b. Intangible resources c. Organizational capabilities d. Strong primary activities 54. __________ are the competencies or skills that a firm employs to transform inputs into outputs. a. Tangible resources b. Reputational resources c. Organizational capabilities d. Intangible resources 55. For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. Which of the following is not one of these attributes? a. Rare b. Valuable c. Easy for competitors to substitute d. Difficult for competitors to imitate 56. A competitive advantage based on inimitability can be sustained for at least some time, if it has the following characteristics: a. Psychographic uniqueness, path dependency, causal ambiguity, and substitutability. b. Physical uniqueness, path dependency, causal ambiguity, and social complexity. c. Rarity, path dependency, causal ambiguity, and social substitutability. d. Geographic uniqueness, cause dependency, social ambiguity, and path dependency. 57. Primary value chain activities that involve the effective layout of receiving dock operations (inbound logistics) and support value chain activities that include expertise in processing engineering (technology development) characterize which generic strategy? a. Differentiation b. Differentiation focus c. Stuck-in-the-middle d. Overall cost leadership 58. One aspect of using cost leadership strategy is that experience effects may lead to lower costs. Experience effects are achieved by a. Spreading out a given expense or investment over a greater volume. b. Hiring more experienced personnel. c. Repeating a process until a task becomes easier. d. Competing in an industry for a long time. 59. With experience, unit costs of production decline as ________ increases in most industries. a. Costs b. Volume c. Price d. Output 60. Support value chain activities that involve excellent applications engineering support (technology development) and facilities that promote a positive firm image (firm infrastructure) characterize which generic strategy? a. Overall cost leadership b. Differentiation focus c. Differentiation d. Stuck-in-the-middle 61. A differentiation strategy enables a business to address the five competitive forces by a. Having brand-loyal customers become more sensitive to prices. b. Increasing economies of scale. c. Providing protection against rivalry. d. Serving a broader segment. 62. The Pepsi algorithm that permits it to lower out of stock inventory is a result of using a. Purchasing patterns. b. Data analytics. c. Physical plant. d. Flooding the market with ads. 63. Corporations increasingly collect and analyze data on their customers. This is known as a. Profit analysis. b. Big data. c. Cost reduction. d. Automated analysis. 64. Company competitive advantages can be eroded by all of the following except a. Rapid changes in technology. b. Globalization. c. Actions by rivals within the industry. d. Actions by workers outside of the industry. 65. As markets mature, a. Costs continue to increase. b. Application for patents increase. c. Differentiation opportunities increase. d. There is increasing emphasis on efficiency.