Quiz
strategic management multiple choice
Questions in this quiz (97)
1 A key characteristic of strategic decisions is that:
- Athey are likely to be concerned with, or affect, the long-term direction of an organisation.
- Bthey identify specific areas of strategic interest for the management of an organisation.
- Cthey result in better organisational performance.
- Dthey are normally definite decisions about the future of the organisation.
2Identification of what 'helps managers to focus on the environmental factors that are most important and which must be addressed most urgently'?
- APESTEL
- BKey drivers for change
- CScenarios
- DFive Forces
3What is meant by the term 'SBU'?
- AStrategic board undertaking
- BSingle business unit
- CStrategic business unit
- DService bureau unit
4 The term ’corporate strategy' concerns strategy and strategic decisions:
- AAt all levels in an organisation.
- BIn certain types of organisations.
- CDeveloped by the senior management in an organisation.
- DIn the private sector only.
5Which type of lens encourages a detached approach to planning and analysis, valuing hard facts and objectivity?
- AVariety
- BDesign
- CExperience
- DDiscourse
6Which of the following is NOT a way of overcoming bases of competitive advantage?
- AIncreasing selling power
- BImitation
- CBlocking first-mover advantage
- DOvercoming barriers to entry
- EStrategic repositioning
7Which of the following is not one of the alternative directions shown on the Ansoff product/market growth matrix?
- ADiversification
- BDeveloping new products
- CCorporate parenting
- DBringing existing products into new markets
8It is possible to identify different levels of strategy in an organisation; these are:
- ACorporate and business unit.
- BCorporate; strategic business unit; and operational.
- CStrategic and tactical.
- DCorporate and functional
9What term is used for the 'long-term direction of an organisation'?
- AStrategy
- BGoals
- CVision
- DMission
10Which of the following statements accurately relates to the stakeholder model of governance?
- AFirms generally have a single-tier structure.
- BShareholders have a legitimate primacy in relation to the wealth generated by organisations.
- CAll board members are insiders (typically managers of the company).
- DBoards attempt to consider the wishes of all stakeholders.
11What term is used for a situation where early events and decisions establish policy paths that have lasting effects on subsequent events and decisions?
- AStrategic drift
- BPath dependency
- CCyclical strategy
- DHistoricisation
12What term is used for M&A integration in which it is implied that both the acquired firm and the acquiring firm learn the best qualities from the other?
- AAbsorption
- BHolding
- CSymbiosis
- DPreservation
13 In the context of strategic alliances, what is meant by the term 'collaborative advantage'?
- AThe benefit of creating a new entity that is owned separately by the partners involved
- BThe result of managing alliances better than competitors
- CThe benefits of being part of a network of alliances of which an organisation is a member
- DThe aim of two or more organisations in sharing resources and activities to pursue a strategy
14When using PESTEL it is easy to get overwhelmed by a multitude of details. Instead, it is important to step back and identify the:
- Arelevant Five Forces that exist
- Bmarket segments
- Ccomplex links between each of the factors
- Dkey drivers for change
15Which of the following is likely to be a cost of corporate parenting?
- ACoaching and facilitating
- BEnvisioning
- CIntervening
- DAdding management costs
16Strategic choices require an understanding of:
- AThe organisational strengths and weaknesses.
- BThe underlying bases for future strategy at business-unit and corporate levels; and the options for developing strategy in terms of directions and methods of development.
- CThe business environment, the competition and the strategic capability of the organisation
- DThe key drivers of change
17A film company and a music recording company may choose to combine, believing that the result will be more effective than the sum of the two component parts. What term is used for the benefits?
- AConsolidation
- BSynergy
- CIntegeration
- DDiversification
18 Best-in-class benchmarking seeks to assess organisational performance against:
- AThe nearest geographical competitor
- Bthe competitor who is ’best inclass’ wherever that may be.
- CThe nearest principal competitor.
- DThe competitor who is the best in the industry
19Which of the following definitions explains what is meant by the corporate parent?
- AThe founder of the business
- BThe levels of management above that of business units
- CThe central head office of the organisation
- DThe owner or major shareholder of the corporation
20Core competences are the skills and abilities by which resources are deployed through anorganisation’s activities and processes such as to:
- ASurvive using approaches and techniques that others cannot imitate or obtain.
- BAchieve competitive advantage in ways that others cannot imitate or obtain.
- CSurvive.
- DAchieve competitive advantage.
21Which of the following terms is used for'an organisation that is loosely coordinatedinternationally, but involves dispersion overseas of variousactivities, with goods and services produced locally in each national market’?
- AMultidomestic
- BGlobal
- CExporter
- DTransnational
22Who shapes and communicates strategy?
- ASenior managers
- BManagers at all levels and specialist strategists
- CSpecialist strategists
- DMiddle and senior managers
23What is defined as 'a group of customers who have similar needs that are different from customer needs in other parts of the market'?
- AStrategic group
- BCustomer grouping
- CMarket segment
- DMarketisation
24Which of the following are the correct axes for stakeholder mapping?
- AControl/interest
- BInfluence/interest
- CPower/interest
- DProcess/interest
25Which of the following is not a method of strategy development?
- AForeign direct investment
- BStrategic alliances
- CMergers and acquisitions
- DOrganic development
26What term is used for two or more organisations sharing resources and activities to pursue a strategy?
- AAcquisition
- BAlliance
- CMerger
- DOrganizational get-together
27 What term is used for something that 'creates substantial growth by offering a new performance trajectory that, even if initially inferior to the performance of existing technologies, has the potential to become markedly superior'?
- ASustaining innovation
- BDisruptive innovation
- CPlatform launch
- DPositioning option
28Which of the following is least likely to be a contextual factor that might swing the balance between moving first to moving second?
- ABuyer switching costs
- BCapacity for profit capture
- CFast-moving arenas
- DComplementary assets
29 The four major players in a particular industry have all recently spent large sums reducing the environmental impact of their factories. What is the probable result of this on the competitive attractiveness of the industry for the players within it?
- AThe industry would be less attractive because costs of entry have increased.
- BThe industry would be more attractive because the bargaining power of suppliers has been reduced.
- CThe industry would be more attractive because costs of entry have increased.
- DThe industry would be less attractive because the threat of substitutes will have increased.
30 The primary aim of Porter's Five Forces framework is to answer which of the following questions?
- AWhat do we know about the various forces?
- BWhat influence can be exerted?
- CIs the industry a good one to compete in or not?
- DHow are competitors differently affected?
31 In recent decades, technologies in the aerospace industry have become more difficult to master and the products have become more complex. Which of the following best describes how a competitive force has changed as a result in this industry?
- ASupplier power has decreased.
- BThe threat of entry has reduced.
- CBuyer power has increased.
- DTangible, intellectual capital
- EIntangible, financial resources
32 What term is used for an organisation's abilities to renew and recreate its strategic capabilities to meet the needs of a changing environment?
- ACore competence
- BCompetent substitution
- CRenewability
- DDynamic capabilities
33What name is given to the purchase of components and services from the most appropriate suppliers around the world regardless of location?
- AMultidomestic marketing
- BInternational compartmentalisation
- CThe global–local dilemma
- DGlobal sourcing
34 A competitor finds it difficult to identify the basis for an organisation's competitive advantage. What term is used for this situation?
- ACausal ambiguity
- BCausal dependency
- CInterdependent causality
- DAmbiguous intercausality
35 The Royal Bank of Scotland's consortium competed with Barclays Bank to acquire the Dutch bank ABN AMRO: the Royal Bank of Scotland won, but the excessive price of '70bn (~$98bn) soon drove the victor into financial collapse and government ownership. What term is used for this situation?
- AWinner's curse
- BExcessibility
- CHubris
- DAcquisition
36Which of the following best describes a 'deliberate' strategy?
- AA strategic direction that emerges from a stream of decisions
- BA strategy that is the product of competitive pressure
- CAn expression of desired strategic direction, intentionally formulated or planned by managers
- DAn expression of desired strategic direction deliberately formulated or planned by managers that is realised in the fullness of time
37 Which of the following is not a category in the BCG matrix?
- AStar
- BCash cow
- CQuestion mark
- DBallast
- EDog
38 The QWERTY typewriter layout is an example of which of the following?
- ARecency bias
- BTransformational change
- CPath dependency
- DStrategic drift
39What name is given to the process of divulging information to outside bodies when a person believes that their organisation is failing in its corporate social responsibility
- AShowing enlightened self-interest
- BSocial auditing
- CWhistle-blowing
- DLegitimising
40 What term is used for the process by which innovations spread among users?
- AMarket pull
- BDisruptive innovation
- CEntrepreneurism
- DDiffusion
41 In the Exploring Strategy Model, what heading is used to cover environment, capability, goals and culture?
- AStrategic position
- BStrategy in action
- CStrategic applicability
- DStrategic choices
42 The experience lens suggests that strategies develop:
- Athrough the shared assumptions across similar types of organisations within an industry (or organisational field).
- Bthrough the shared assumptions in the organisation, often thought of as the organisational culture.
- Cthrough the individual experience of a few top managers or strategic planners.
- DAll of the above
43 Identification of what 'helps managers to focus on the environmental factors that are most important and which must be addressed most urgently'?
- AFive Forces
- BKey drivers for change
- CScenarios
- DPESTEL
44 What is defined as ’a group of customers who have similar needs that are different from customer needs in other parts of the market'?
- ACustomer grouping
- BMarket segment
- CMarketisation
- DStrategic group
45 Which of the following is NOT part of Rumelt’s tests of Business Strategy?
- AFeasible
- BConsonant
- CConsistent
- DEvaluation
46Which of the following is NOT an outcome of Hrebiniak & Joyce (1985) environmental determinism framework?
- AAdaptation by design
- BAdaptation in situ
- CAdaptation within constraints
- DAdaptation by chance
47Which one of the following is not part of Bourgeois & Brodwin (1983) strategic implementation perspective on Leadership?
- ACommander Approach
- BChange Approach
- CDemand Approach
- DCollaborative Approach
48One of the following is NOT a condition for achieving Cost Leadership AND Differentiation
- AInnovation
- BCompetitors stuck in the middle
- CCost strongly affected by share / interrelationships
- DStrategy optimization Strategy optimization
49 Which of the following is NOT a cost driver?
- AEconomies of scale
- BValue-added services
- CEconomies of learning
- DProduction techniques
50 Which of the following is NOT a differentiation driver?
- AProduct features and performance
- BValue-added services
- CIntensity of marketing activity
- DInput cost
51Which of the following is NOT An outcome of Dunphy & Stace (1993) contingency based model change management?
- AEvidential performance
- BDictatorial transformation
- CForced evolution
- DParticipative evolution
52 Which of the following is NOT one of Bourgeois and Brodwin’s (1983) approaches to strategy implementation?
- ADevelopmental approach
- BCommander Approach
- CCultural approach
- DCrescive approach
53 Managerial attempt to link emergent and deliberate is often referred to as:
- ACombinatorial approach
- BLogical incremantalism
- CRecombinant techchnology
- DEmergent-delibrate move
54Which of the following is NOT a critique of the linear model of strategy?
- AFallacy of prediction
- BFallacy of detachment
- CFallacy of formalization
- DFallacy of value creation
55Which of the following is an outcome of the rationality, frictions and inertia associated with the linear model of strategy?
- APolitical support
- BCreativity failure
- CNew product development
- DStrategic foresight
56The linear model of strategy’s Emphasis on rationalization can lead to all the following except:
- AUnqualified acceptance and misapplication of techniques for strategic analysis
- BProfessionalization of the planner’s job by making strategy a science
- CExcessive emphasis on quantification for strategic decisions
- DLogical incrementalism
57 Which of the following school of strategy is NOT a prescriptive perspective on strategy?
- AConfigurational School
- BDesign school
- CPlanning school
- DPositioning school
58 Which of the following school of strategy is NOT classified as a descriptive perspective on strategy?
- ACognitive school
- BPlanning school
- CLearning school
- DEntrepreneurial School
59Which of the following is NOT one of the 5Ps of strategy?
- AStrategy as plan
- BStrategy as pattern
- CStrategy as ploy
- DStrategy as panoptic
60 According to Barney (1991) resources are likely to provide a competitive advantage when they are Organized, valuable, inimitable and….
- ARare
- BReified
- CExpensive
- DDesirable
61 Machines, buildings, raw materials, databases, computer systems are examples of…
- AHuman resources
- BPhysical resources
- CIntellectual resources
- DFinancial resources
62 Which of the following is NOT a key criteria by which capabilities can be assessed in terms of providing a basis for achieving sustainable competitive advantage?
- AValuable
- BRare
- CInimitable
- DTransferable
63Which of the following might lead to the inimitability of a strategic capability?
- ACausal ambiguity
- Bstrategic organizing
- CEconomies of scale
- DCreative forecasting
64 Which of the following is NOT a characteristic of a core competence?
- AProvide distinctive consumer benefit
- BCan be leveraged and alters boundaries of firms
- CA critique of the strategy linear model
- DHard for competitors to imitate
65 The section marked XXXXXXXXXX in the figure below represents: ( figure is shown cba to try and put it here)
- AScenario planning
- BDynamic capabilities
- CResource based view
- DOrganizational capabilities
66Which of the following as argued by Leonard-Barton(1992) inhibit a firm’s ability to access and develop new capabilities?
- ACore rigidities
- BCore reductionism
- CCore competences
- DCore activities
67The more highly developed an organizations capabilities,…..
- AThe narrower the repertoire
- BThe broader the repertoire
- CThe more lasting the repertoire
- DThe more active the repertoire
68 Which of the following is an approach to developing capabilities?
- AStrategic alignment
- BProduct sequencing
- CProactive marketing
- DInvesting in patents
69 Which of the following is NOT a step in the framework for analysing resources and capabilities?
- AAppraise the firm's resources and capabilities
- BIdentify the firm’s resources and capabilities
- CExplore the linkages between resources and capabilities
- DOptimize resources and capabilities
70In 2016, it emerged that previous research into emissions from diesel engines was flawed and that they were much worse for the environment than other types of engines. For firms associated with the production of diesel engines, this revelation is best described as an ….
- AWeak signal
- BInflection point
- CMegatrend
- DWild card
71 Due to uncertainty relating to Brexit, the pound is currently quite weak against many other currencies. Which element of PESTEL would this most relate to?
- APolitical
- BEconomic
- CSocial
- DTechnological
72The advent of comparison websites for products such as car insurance has had the biggest impact on which element of Porter’s Five Forces framework
- AThreat of new entrants
- BSubstitutes
- CRivalry
- DPower of buyers
73 In the “Strategic Capabilities” element of strategic positioning, a good example of causal ambiguity might be ….
- AWhere a car manufacturer has quality problems and it is hard to identify the root cause of the issues
- BWhere an insurer has low customer satisfaction and it is unclear what the reasons are behind it
- CWhere a telecoms company knows it has issues related to the PESTLE model, but is unsure which element is to blame
- DWhere a fashion retailer is successful but it is hard for others to understand how it gains its competitive advantage
74 Resources differ from competences in that ….
- AResources are what we have, competences are what we do well
- BResources are what we know, competences are what we would like to do well
- CResources are what we have, competences are what we would like to do well
- DResources are what we know, competences are what our competitors know
75One of the primary activities in Porter’s Value Chain is outbound logistics, which involves ….
- AAnticipating, identifying, and satisfying customer requirements
- BActivities that enhance or maintain the value of a product or service
- CWarehousing and transport of products and services
- DTransforming inputs into final products and services
76KFC’s special mix of eleven herbs and spices may be thought of as being most closely associated with which element of Barney’s VRIO model?
- AV
- BR
- CI
- DO
771Aldi is a German discount supermarket chains with over 10,000 stores in 20 countries, & an estimated combined turnover of more than €50 billion. Which of Bowman’s routes best describes Aldi’s business approach?
- ALow price
- BHybrid
- CDifferentiation
- DNo frills
78 Which Generic Strategy best describes Sainsbury’s business approach?
- ACost leadership
- BDifferentiation
- CCost focus
- DDifferentiation focus
79 Using the case study, “The IKEA Approach”, which of the following best describes Ikea’s Generic Strategy ….
- ACost leadership & focus differentiation
- BDifferentiation & cost focus
- CCost leadership & differentiation
- DDifferentiation focus & cost focus
80Which of the following is NOT likely to be a benefit of corporate parenting?
- ACoaching and Facilitating
- BEnvisioning
- CBureaucratic complexity
- DProviding central services
81Using the “Virgin – is the brand more than Richard Branson?” case study, which type of corporate parenting role best describes the Virgin Group?
- APortfolio manager
- BSynergy manager
- CParental developer
- DAppeaser
82 The concept of a “born global” firm is where ….
- AA small firm internationalises rapidly at an early stage of its development
- BA firm moves quickly through the various internationalisation modes by rolling out its unique capabilities worldwide
- CA firm uses a sequential process to gradually increase its commitment to its newly entered overseas markets
- DA firm relies on its trading partners worldwide rather than its own presence in overseas markets
83Which of the four international strategies is most likely to be difficult to implement in practice?
- AAn international strategy
- BA global strategy
- CA transnational strategy
- DA localisation strategy
84The Japanese camera industry grew to be world-renowned due to the high expectations of consumers in the home market. Which element of Porter’s Diamond would this relate to?
- AFirm strategy, structure and rivalry
- BFactor Conditions
- CDemand conditions
- DRelated and supporting industries
85 What is the global/local dilemma?
- AThe extent to which local employees should be recruited or seconded from corporate HQ
- BThe extent to which products/services may be standardised across national boundaries or need to be adapted to suit local needs
- CThe extent to which marketing campaigns are budgeted for in the local or corporate parent’s currency
- DThe extent to which foreign exchange gains or losses arise from international transactions
86 Apple Inc. is an American technology company that designs & sells consumer electronics, software, & online services, employing 123,000 staff & earning $229 billion in worldwide revenue in 2017. The approach taken by Apple to product development focuses primarily on ….
- AAchieving first-mover advantage
- BAchieving cost leadership
- CAchieving maximum sales
- DAchieving success through being a “follower”
87 Garmin & TomTom are well-known brands of stand-alone satellite navigation units for cars. However, the rapid development of equivalent smartphone apps has had a huge impact on their sales. The term given for this type of innovation is ….
- ADisplacement innovation
- BDysfunctional innovation
- CDisjointed innovation
- DDisruptive innovation
88Trial and error in strategy development is most associated with which of the following approaches ….
- APolitical processes
- BLogical incrementalism
- CStrategy as continuity
- DOrganisational systems
89 The common approaches to capability-building exclude
- AInternal development
- BAcquiring capabilities through mergers and acquisitions
- CAccessing capabilities via collaborative partnerships
- DBuying from the capital market
90 Accessing capabilities from an external source is to access them via collaborative partnership with suppliers, competitors or other companies having the cutting edge expertise. Which of the following is NOT one of the basic ways to pursue this course of action?
- AOutsource the function requiring the capabilities to a key supplier or another provider
- BCollaborate with a firm that has complementary resources and capabilities in a joint venture or strategic alliance
- CDevelop competitive intelligence system and engage in industrial espionage
- DEngage in a collaborative partnership for the purpose of learning how the partner does things, internalizing its methods and thereby acquiring its capabilities
91An organization becomes a prime candidate for diversifying under one of the following circumstances
- AWhen it spots opportunities for expanding into industries whose technologies and products complements its present business
- BWhen it cannot leverage its collection of resources and capabilities by expanding into businesses where these resources and capabilities are valuable assets
- CWhen it does not have a powerful and well-known brand name that can be transferred to products of other business and use as a lever for driving up the sales and profits of such businesses
- DWhen diversifying into other businesses does not open up avenues for reducing costs via cross business sharing or transfer of valuable assets.
92Which of the following is NOT one of Porter’s three tests for buying or selling off an SBU to improve shareholders value?
- AAttractiveness test
- BBetter-off text
- CCost-of entry
- DPortfolio entry test
93Which of the following is NOT a benefit of the M-Form
- AClearly removed executives responsible for the destiny of the organisation from the more routine operation
- BBenefits of specialisation
- CImproved organizational culture
- DCorporate management can measure the performance of business units Individualism and autonomy
94 All the following is a key indicator of industry attractiveness EXCEPT:
- ASocial, Political, regulatory and environmental factors
- BSeasonal and cyclical factors
- CIndustry profitability
- DBusiness strategy
95Which of the following is NOT a strategic option for internationalization, diversification or innovation?
- AStrategic alliance
- BMergers or acquisition
- CResource based view
- DOrganic development
96 Which of the following is NOT a true about a strategic alliance?
- AOnly two businesses can form a strategic alliance
- BIt is a formal and mutually agreed commercial collaboration between companies
- CThe partners pool, exchange or integrate specific business resources
- DBusinesses involved remain separate, making alliances distinct from mergers and acquisitions
97 Strategic alliances have become more popular in recent years because of
- AIncreasing development costs and shorter product life-cycle
- BIt is a formal and mutually agreed commercial collaboration between companies
- Ccompanies racing to the bottom
- DManagerial hubris
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- Business/Economics Quiz on strategic management multiple choice, created by Shia Doula on 14/04/2019.
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- Shia Doula
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