Question 1 Marks: 1 When a company following a differentiation strategy ensures that the higher price it charges for its

higher quality is not priced too far above the price of the competition, the company is using the process of Choose one answer. a. cost leadership. b. price fixing. c. low-cost differentiation. d. basic differentiation. e. cost proximity. Question 2 Marks: 1 1) Which one of the following is NOT one of the arguments against social responsibility as used by economist Milton Friedman? Choose one answer. a. Spending money for social responsibility is spending the stockholder's money for a general social interest. b. Through taking on the burden of social costs, the organization becomes less efficient, causing price increases or postponement of growth. c. Businesses can actually do very little in terms of social responsibility. d. There is one and only one social responsibility of business -- to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game. e. Spending money on social responsibility is acting from motives other than economic and may, in the long-run, cause harm to the very society the firm is trying to help. Question 3 Marks: 1 1) Which one of the following is NOT descriptive of the experience curve? Choose one answer. a. The concept was first applied in the airframe industry. b. It is used to estimate the production costs of a product never before made with the present techniques and process. c. It is used to estimate the production cost of a product produced by newly introduced techniques or processes. d. It is very useful because it is consistent within the industry for all involved organizations over time.

e. It shows that production costs decline by some fixed percentage as production in units doubles. Question 4 Marks: 1 Which approach to decision-making is most useful when the environment is changing rapidly and when it is important to build consensus and develop needed resources before committing the entire corporation to a specific strategy? Choose one answer. a. strategic flexibility mode b. logical incrementalism c. planning mode d. entrepreneurial mode e. adaptive mode Question 5 Marks: 1 Which of the following is an example of a mission statement? Choose one answer. a. Pay highest salaries to keep high quality employees. b. Divide a sales region into a group of sales districts. c. Develop and sell quality appliances worldwide. d. Increase sales by 10% over last year. e. Diversify product line to appeal to more people. Question 6 Marks: 1 Business strategy focuses on Choose one answer. a. improving the competitive position of a corporation's products or services within the industry or market segment served. b. preventing the competition from gaining a competitive edge by undermining their marketing plan. c. recovering the competitive lead by using all available resources that the company can provide d. ensuring that the company maintains the existing market share that it has historically enjoyed. e. providing adequate shareholders' return on investment.

Question 7 Marks: 1 1) Which of the following is NOT one of the examples provided as an organizational benefit received from being socially responsible? Choose one answer. a. They can attract outstanding employees who prefer working for a responsible firm. b. Their environmental concerns may enable them to charge premium prices and gain brand loyalty. c. They are more likely to attract capital infusions from investors who view reputable companies as desirable long-term investment. . d. They are more likely to be welcomed into a foreign country. e. They are guaranteed to maximize resource productivity and reduce the average payback period of investment. Question 8 Marks: 1 1) As compared to a firm with low financial leverage, a firm with a high amount of financial leverage in an expanding market should have Choose one answer. a. higher profits b. higher earnings per share. c. higher sales revenue. d. lower profits. e. lower earnings per share. Question 9 Marks: 1 Orphagenix, a small biotech firm, avoids head-to-head competition with large pharmaceutical companies by developing orphan drugs to target diseases that affect fewer than 200,000 people. This is an example of which of Porter's generic strategies? Choose one answer. a. competitive advantage b. differentiation c. cost leadership d. cost focus e. differentiation focus Question 10

Marks: 1 1) The U.S. major home appliance industry, including the companies of Maytag, Whirlpool, General Electric, and Electrolux, is an example of an industry Choose one answer. a. in which each company maintained a distinct product line. b. texperiencing a successful strategy of product specialization because of product differentiation. c. that was once fragmented, but now is consolidated. d. that has experienced consistent, increasing sales. e. that has evolved from an oligopoly to a monopoly. Question 11 Marks: 1 1) As societal values evolve, it is likely that the _________ responsibilities of today may become the _________ responsibilities to tomorrow. Choose one answer. a. legal; discretionary. b. discretionary; economic. c. discretionary; ethical. d. legal; ethical. e. economic; ethical. Question 12 Marks: 1 The integrated internationalization of markets and corporations is called Choose one answer. a. normalization. b. nationalization. c. regionalization. d. globalization. e. economic integration. Question 13 Marks: 1 As an industry becomes hypercompetitive, firms initially respond by Choose one answer. a. moving into untapped markets. b. competing on cost and quality.

c. working their way to a situation of perfect competition. d. attacking the strongholds of other firms. e. raising entry barriers. Question 14 Marks: 1 The corporate mission is best described by which one of the following? Choose one answer. a. A statement of what the organization would like to become. b. The purpose or reason for the corporation's existence. c. A description of top management's responsibilities. d. A statement of corporate objectives. e. A description of the activities carried out by the organization. . Question 15 Marks: 1 1) In which type of international industry do corporations tailor their products to the specific needs of consumers in a particular country? Choose one answer. a. multidomestic industry b. worldwide industry c. indigenous industry d. global industry e. consortium industry Question 16 Marks: 1 1) On the continuum of resource sustainability, where would Sony's Walkman be placed? Choose one answer. a. down-cycle resources b. standard-cycle resources c. fast-cycle resources d. slow-cycle resources e. sustainable resources Question 17

Marks: 1 In a TOWS Matrix, SO Strategies Choose one answer. a. are basically defensive and primarily act to minimize weaknesses and avoid threats. b. attempt to take advantage of opportunities by overcoming weaknesses. c. are ways to get strategists to think "out of the box." d. are generated by thinking of ways in which a company or business unit could use its strengths to take advantage of opportunities. e. consider a company's or unit's strengths as a way to avoid threats. Question 18 Marks: 1 1) Which barrier to entry uses cost advantages associated with large size? Choose one answer. a. cost disadvantages independent of size b. switching costs c. capital requirements d. rivalry among existing firms e. economies of scale Question 19 Marks: 1 1) Which of the following is NOT descriptive of the "threat of new entrants?" Choose one answer. a. Have a desire to gain market share. b. Does not impact industry attractiveness. c. Brings new capacity and substantial resources. d. Depends on the reaction of existing competitors. e. Depends on the presence of entry barriers. Question 20 Marks: 1 An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights is a(an) Choose one answer. a. innovative organization.

b. learning organization. c. strategically managed corporation. d. entrepreneurial firm. e. hypercompetitive competitor. Question 21 Marks: 1 In the final phase of strategic management, strategic information is available to Choose one answer. a. only those responsible for implementing the strategy. b. people throughout the organization c. operational personnel d. the top management responsible for decision making. e. middle management. Question 22 Marks: 1 1) Which one of the following best describes a divisional structure? Choose one answer. a. This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades. . b. Employees have two or more superiors, a project manager and a functional manager. . c. This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions. d. This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities. e. Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources. Question 23 Marks: 1 1) Intel was able to gain a significant cost advantage over its competitors in the production and sale of microprocessors because of Choose one answer. a. product differentiation. b. economies of scale.

c. capital requirements. d. switching costs. e. access to distribution. Question 24 Marks: 1 1) An example of the promotion variable of the marketing mix is Choose one answer. a. location. b. advertising. c. services. d. quality. e. discounts. Question 25 Marks: 1 Research of the planning practices of companies in the oil industry concludes that the real value of modern strategic planning is more Choose one answer. a. in the strategic thinking and organizational learning. b. in the formality of the process. c. in the improved communication within the organization. d. in the planning. e. in the resulting written strategic plan. Question 26 Marks: 1 Wal-Mart, McDonald's and Alamo are all examples of companies following which of Porter's competitive strategies? Choose one answer. a. differentiation focus b. competitive advantage c. differentiation d. cost leadership e. cost focus Question 27 Marks: 1

A description of what the company is capable of becoming is referred to as Choose one answer. a. strategic concept. b. strategic vision. c. strategic familiarity. d. strategic flexibility. e. strategic vision. B) strategic concept. C) strategic mission. D) strategic flexibility. E) strategic familiarity. Question 28 Marks: 1 The variables structure, culture, and resources pertain to the Choose one answer. a. sociocultural forces. b. external environment. c. internal environment. d. societal environment. e. task environment. Question 29 Marks: 1 1) Society generally expects firms to work with employees and the company to plan for layoffs. This is an example of which of Carroll's responsibilities? Choose one answer. a. discretionary b. Ethical c. Justice d. Economic e. Legal Question 30 Marks: 1 1) Which of the following is NOT descriptive of "threat of substitute products or services?" Choose one answer. a. Substitute products appear to be different, but satisfy the same need as another product. b. Possible substitute products or services may not appear to be easily substitutable.

c. Substitutes limit the potential returns of an industry. d. If the cost of switching is low, substitutes may have a strong effect on an industry. e. Identifying substitutes is relatively easy since they look similar. Question 31 Marks: 1 1) As opposed to rule-based countries, relationship-based countries tend to Choose one answer. a. be less transparent and have a lower degree of corruption. b. be more transparent and have a lower degree of corruption. c. be less transparent and have a higher degree of corruption. d. have the same transparency and same degree of corruption. e. be more transparent and have a higher degree of corruption. Question 32 Marks: 1 1) The collective strength of the interaction of potential entrants, buyers, substitutes, suppliers, firm rivalry, and other stakeholders determine Choose one answer. a. the probable industry attractiveness and business strength position. b. the amount of pressure from the societal environment. c. the aggregate level of demand for a product line. d. the level of government action in an industry. e. the ultimate profit potential in the industry measured in terms of long-run return on invested capital. Question 33 Marks: 1 1) When Yamaha entered the market with a broader range of pianos, keyboards, and other musical instruments, it was using which offensive tactic? Choose one answer. a. flanking maneuver b. guerilla warfare c. frontal assault d. encirclement

e. bypass attack Question 34 Marks: 1 1) According to a survey by the Ethics Resource Center, which was not cited as one of the most common questionable behaviors that employees engage in? Choose one answer. a. cutting corners on quality b. lying to or deceiving customers c. surfing the web on company time d. covering up incidents e. abusing or lying about sick days Question 35 Marks: 1 If it is to be successful, Porter advises that a division possess strong marketing abilities, product engineering, a creative flair, strong capability in basic research and a corporate reputation for quality or technological leadership, for which one of the following generic competitive strategies? Choose one answer. a. concentration b. overall cost leadership c. differentiation d. focus e. vertical growth Question 36 Marks: 1 1) The second step when analyzing the value-added chain is to Choose one answer. a. examine the potential synergies among the corporation's product or business units. b. confirm that all variables have been included and taken into consideration.. c. examine the linkages among the product's or service's value activities. . d. identify the legal ramifications and responsibilities of their product or service. . e. ensure that quality management is adequately addressed. Question 37 Marks: 1

1) Friedman's position on social responsibility Choose one answer. a. proposes that a lack of social responsibility results in increased government regulations. b. appears to be losing traction with business executives. c. mirrors Carroll's position. d. suggests that a lack of social responsibility reduces a firm's efficiency. e. explains why firms are using their socially responsibility actions for competitive advantage. Question 38 Marks: 1 Which of the following statements is true regarding the board of directors? Choose one answer. a. If a director or the board as a whole fails to act with due care and, as a result, the corporation is in some way harmed, the careless director or directors can be held personally liable for the harm done. b. all of the above c. Director liability insurance is often needed to attract people to become members of boards. d. Directors must be aware of the needs of various constituent groups to balance all their interests. e. The board is charged by law to act with due care. Question 39 Marks: 1 Which of the following is NOT a part of strategy implementation? Choose one answer. a. operational planning b. performance evaluation c. budgets d. programs e. procedures Question 40 Marks: 1 1) Which strategy has been used successfully by Yum! Brands to establish KFC and Pizza Hut restaurants across the globe? Choose one answer. a. licensing arrangement

b. strategic alliance c. joint venture d. marketing strategy e. value-chain partnership

41. A difference between basic financial planning and forecast-based planning is Choose one answer. a. basic financial planning utilizes scenarios and contingency strategies. b. the time horizon is shorter in forecast-based planning. c. forecast-based planning incorporates internal and external information. d. basic financial planning utilizes consultants with sophisticated techniques. e. basic financial planning relies heavily on input from lower levels in the organization. 42 Strategic managers must be concerned with human resource management because .Choose one answer. a. they must be aware of the ability and willingness of the workforce to implement new strategies. b. quality of work life is more important than strategic management. c. workers are more likely to go on strike if management attempts to cross them. d. dealing with people is their primary job. e. they must be aware of the possibility and potential of unionism. 43 Being socially responsibility Choose one answer. a. has opened doors in local communities. b. provides a company with a more positive overall reputation. c. has resulted in cost savings to firms. d. all of the above. e. has enhanced the company's reputation with consumers. 44.Which of the following is an example of an objective? Choose one answer. a. Pay highest salaries to keep high quality employees. b. Increase sales by 10% over last year.

c. Divide a sales region into a group of sales districts. d. Diversify product line to appeal to more people. e. ) Develop and sell quality appliances worldwide. 45 The concept that advocates management's attempt to find a strategic fit between external opportunities and internal strengths while working around external threats and internal weaknesses is called Choose one answer. a. position analysis. b. environmental analysis. c. situational analysis. d. strategic evaluation. e. objective analysis. 46 Some people claim that morality is relative to some personal, social, or cultural standard and that there is no method for deciding whether one decision is better than another. This is called Choose one answer. a. ethical relativity. b. cultural imperialism. c. moral relativism. d. comparative ethics. e. moral philosophy. 47 Which theory proposes that once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions? Choose one answer. a. strategic choice b. institution c. citizenship d. organizational learning e. population ecology 48 What are the key environmental trends that are judged to have a medium to high probability of occurrence and a medium to high probability of impact on the corporation? a. strategic issues

b. external strategic factors c. scenarios d. industry forces e. historical concerns 49 The issues priority matrix used in environmental scanning is composed of two axis or dimensions which are labeled . Choose one answer. a. importance to the industry and likelihood of occurrence.. b. issue importance and relative power of stakeholder groups. c. industry growth rate and probable competitive position. d. probability of occurrence and probable impact on the corporation. e. probable industry attractiveness and business strength/competitive position. 50. Which of the following is NOT an advantage of being a first mover? Choose one answer. a. Being first provides a company profit advantages for about ten years in consumer goods and about twelve years in industrial goods. b. The company is able to establish a reputation as an industry leader. B) The company is able to move down the learning curve to assume the cost leader position. C) A first mover can set the standard for all subsequent products in the industry. D) Being first provides a company profit advantages for about ten years in consumer goods and about twelve years in industrial goods. E) First movers may be able to keep R & D costs low by imitating the technological advances of others. 51) The business model used by IBM to make money not selling IBM products, but by selling its expertise to improve their customers operations is the. Choose one answer. a. customer solutions model. b. profit pyramid model. c. efficiency model. d. entrepreneurial model. e. advertising model.

52. As defined in this course, a policy is .Choose one answer. a. a comprehensive master plan stating how a corporation will achieve its mission and objectives. b. a statement of a corporation's programs in dollar terms. c. a broad guideline for making decisions that links the formulation of strategy with its implementation. d. the purpose or reason for a corporation's existence. e. a statement of activities or steps needed to accomplish a single-use plan. . 53 The type of strategy which describes a company's overall direction in terms of its general attitude toward growth and the management of its various businesses and product lines is Choose one answer. a. operational. b. business. c. product. d. functional. e. corporate. 54 FedEx stipulates specific employee behavior including how a driver dresses to how keys are held when approaching a customer's door. This is an example of a Choose one answer. a. control. b. procedure c. policy. d. budget. e. program. 55 The role of the board of directors in the strategic management of the corporation is likely to Choose one answer. a. be more active in the future. . b. be less active in the future. . c. be nonexistent as planning departments take over. .

d. remain the same. e. shift more toward managing daily operations. 56. Which of the following statements is true concerning clusters? Choose one answer. a. all of the above b. An example of a cluster in the U.S. is California's Silicon Valley. c. According to Porter, clusters provide access to employees, suppliers, specialized information, and complementary products. d. The desire to build or upgrade a core competency is one reason why entrepreneurial and other fast-growing firms often tend to locate close to their competitors. e. Clusters are geographic concentrations of interconnected companies and industries. 57 Which of the following companies was cited by the text as an example of a company which does its best to consider its responsibilities to its primary and secondary stakeholders when making strategic decisions? Choose one answer. a. Johnson & Johnson b. Microsoft c. Enron d. McDonald's e. Maytag 58 The type of strategy which achieves corporate and business unit objectives and strategies by maximizing resource productivity is Choose one answer. a. corporate. b. product. c. operational. d. business. e. functional. 59 The business model used by HP in selling printers and printer cartridges is the Choose one answer.

a. advertising model. b. multi-component system/installed base model. c. efficiency model. d. customer solutions model. e. profit pyramid model. 60 The Strategic Management Model presents the following process of strategy formulation: Choose one answer. a. Mission -- Objectives -- Strategies -- Policies. b. Mission -- Policies -- Strategies -- Objectives. c. Policies -- Mission -- Strategies -- Objectives. d. Objectives -- Policies -- Strategies -- Mission. e. Policies -- Strategies -- Objectives -- Mission. .