These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these 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.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
The terms corporate strategy and business strategy refer to the same process.
Corporate strategy gives overall direction to a multi-product organization.
Business strategy gives direction for a multi-product organization.
Business strategy links the various product and market strategies of strategic business units.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these 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.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these 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.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
SWOT analysis is a scientific technique to measure strengths, weaknesses, opportunities and threats.
SWOT analysis uses all available information to make the analysis of complex and dynamic environments easier.
SWOT analysis examines the political, economic, socio-cultural and technological environments of business.
SWOT analysis tends to focus on the nature of the environment rather than on the creation of distinctive competences or the needs of customers.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
The fair allocation of resources is an important consequence of a clear strategy.
A clearly worked out strategy enables managers to predict the performance of an organization.
The performance of an organization can influence the strategic direction taken by managers.
A clear strategy will limit the influence of organization politics on management decision-making.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
It is generally assumed that dynamic environments need more creative approaches to strategy.
Creative approaches to strategy are expensive, particularly since they are soon copied by competitors.
Organizations need to be ready with a response to the changing strategies of competitors.
The uncertainty created by a dynamic and complex environment cannot be reduced.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Equipment and capital costs, if properly budgeted, are not an entry barrier into a particular 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.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Increased competition can effectively neutralise the bargaining power of buyers.
The bargaining power of buyers is affected by the cost of switching from one supplier to another.
Switching costs are greater in the consumer goods market than in the industrial components market.
Cultural differences have an influence on the bargaining power of buyers, which tends to be greatest in countries such as Japan.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Competitive rivalry according to Porter is the sum of the impact of threat of new entrants, threat of substitution, and the bargaining power of buyers and suppliers.
Competitive rivalry according to Porter is reduced in saturated markets.
Competitive rivalry according to Porter is reduced by mergers and acquisitions.
Competitive rivalry according to Porter is high where barriers to exit are high.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Identifying threats and opportunities is more complex in multi-product firms.
Where threats and opportunities can be easily identified and assessed, management decision-making becomes a straightforward exercise.
Entering the market with lower prices than competitors is a useful strategy in the face of most opportunities and threats.
The availability of labour is always a major constraint to the launch of new products or the use of new processes.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these 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.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
The value chain is a technique to calculate the profit derived from each of the firm’s activities.
The value chain views procurement and technology as primary contributors in adding value to a firm’s activities.
The value chain identifies the value added through the interaction of different parts of the operating system.
Based on the analysis derived from the value chain managers can delete those operations that do add value.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these 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.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Portfolio analysis is a guide to future product and market 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.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
According to the Boston Consulting Group classification ‘question marks’ have a low market share and low growth potential.
According to the Boston Consulting Group classification if ‘cash cows’ can maintain their position for a number of years they will become ‘stars’.
According to the Boston Consulting Group classification ‘stars’ are products with a high market growth in an expanding market.
According to the Boston Consulting Group classification ‘stars’ will eventually become ‘cash cows’.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Strategic options are 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.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Mergers and acquisitions are generally favourable to shareholders in that they increase shareholder value.
Mergers and acquisitions are generally favourable to some shareholders, usually those selling their shares.
Mergers and acquisitions enable the new firm to access increased profits, especially in the banking and finance sectors.
All mergers and acquisitions result in the shedding of labour.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these 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.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these 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 the 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.