Which one of the following four statements is correct?
Strategy formulation is an intellectual exercise in information gathering and a political exercise involving values and power.
Rational approaches to strategy, such as SWOT analysis, are inevitably the most successful.
Scenario planning is an excellent technique for eliminating uncertainty.
The best kind of strategies are management hunches.
Which one of the following four statements is correct?
Strategy is the most important form of management control.
Strategies are more important for profit making than they are for non-profit making organizations.
It is difficult to establish clear and measurable links between strategy and performance.
Some kind of formalized strategic process can be observed in all organizations.
Which one of the following four statements is correct?
In dynamic environments, a rational approach to strategy is usually the best form of analysis.
In the modern business world, few markets are simple and static.
The environment is so complex that managers can never get too much information.
In strategic analysis, the general environment is a given and cannot be changed.
Which one of the following four statements is correct?
Equipment and capital costs, if properly budgeted, are not a particular barrier to entry into the market.
The threat of substitution refers to another firm launching an identical product in the market.
Most firms will specialize and will rarely act as both suppliers and buyers.
It is relatively easy for customers to switch supplier if there are a large number of firms offering the same or similar products.
Which one of the following four statements is correct?
Gap analysis refers to the difference between your market share and that of your main competitor.
Most theorists believe that structure should follow strategy. However, strategy can also be influenced by structure.
In firms with strong corporate cultures, strategy is a less important consideration than the maintenance of the culture.
Resource analysis is essentially an auditing exercise.
Which one of the following four statements is correct?
Core competences are those management skills that give the firm its competitive edge.
Core competencies derive mainly from the firm’s ability to innovate.
A strong set of core competences enables the firm to ignore what is happening in the market.
A strong set of core competences enables the firm to focus on its resources and what it can do rather on what is happening in the market place.
Which one of the following four statements is correct?
Portfolio analysis is a guide to future investment.
Portfolio analysis analyses individual products and compares them to rival products of competitor firms.
According to the Boston Consulting Group, ‘dogs’ are worthless products.
Portfolio analysis is a scientific method designed to measure the strengths and weaknesses of a product portfolio.
Which one of the following four statements is correct?
Strategic options are solely the product of the methods employed in environmental and organizational analysis.
Growth strategies are essential to the survival of a business in any market.
Cost leadership means being the lowest cost producer, yet still competing in terms of function and quality.
According to Miles and Snow, an ‘analyser’ organization assesses carefully its opportunities for new product development and the behaviour of competitors to be first to the market with its products.
Which one of the following four statements is correct?
Vertical integration involves the purchase of a firm’s suppliers and their integration into its business.
Forward integration is the process of involving customers in the product design and development process.
Economies of scope are achieved when the cost of a unit of production reduces with volume produced.
Unrelated diversification is a strategy that can be successful in spreading risk.
Which one of the following four statements is correct?
A good strategic fit between two companies considering merger is when they have identical products.
Joint ventures in emerging markets are often political and involve transfer of technology in exchange for market entry.
Unrelated diversification offers the best opportunity for high profits by spreading risk across a number of different markets.
Mergers and acquisitions are rare amongst German companies because of their highly regulated stock market system.