Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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What
is the most appropriate method of categorizing stakeholders? a. | Relative power
only | b. | Relative level
of interest only | c. | Relative power and interest | d. | Relative power,
interest, and amount of stock held | e. | Relative level of stock held only | | |
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2.
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What
is monopoly power? a. | When an organization has absolute power in its chosen
marketplace | b. | When an organization has power over its immediate rivals in its
chosen marketplace | c. | When an organization has limited power in its chosen
marketplace | d. | When an organization buys out another organization and assumes
power of its share of the marketplace | | |
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3.
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Which
of the following statements best describes scenario planning? a. | Exploring future
possibilities by looking at potential outcomes from particular causes and seeking to explain why
things might occur | b. | Considering three likely scenarios for future developments, and
devising a strategy according to the likeliest outcome | c. | Helping managers
come to terms with the threats and opportunities within the company by devising a possible scenario
to eliminate the threats and capitalize on the opportunities | d. | Planning the
best way to secure the scenario outcome that would benefit the company most | | |
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4.
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How
is an organization most likely to secure and sustain a position of strength in its associated
environment? a. | By seeking to
influence and manage their external environment | b. | By seeking to
influence their competitors' environment | c. | By seeking to influence and manage their internal
environment | d. | By seeking to restrict changes within their
environment | | |
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5.
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Which
of the following would not be considered a barrier to entry? a. | High
innovation | b. | Concentration of distribution
channels | c. | Steep experience curves | d. | Concentration of
suppliers | | |
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6.
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Which
of the following factors does not increase the bargaining power of a supplier? a. | Substitutability | b. | Concentration of suppliers | c. | A buyer is
important to the supplier | d. | High switching costs | e. | Little
opportunities for vertical integration | | |
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7.
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What
is the danger of excessive monopoly power? a. | The organization will charge high
prices | b. | The organization will not attempt to cut
costs | c. | The organization will change strategy to seek to fully exploit
its power | d. | The organization will stifle
innovation | | |
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8.
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Why
should governments seek to regulate? a. | To control competition and stop monopoly
power | b. | To minimize resource wastage and monopoly
power | c. | To control competition and minimize resource
wastage | d. | To control competition and inhibit the exploitation of weak
buyers and suppliers | e. | To control competition, minimize resource wastage, and inhibit
the exploitation of weak buyers and suppliers | | |
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9.
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Which
of the following is not suggested by Markides (1999) as a factor for competitive and strategic
success? a. | Synergy | b. | Careful evaluation of strategic
options | c. | Ensure consistency between desired strategic position and the
chosen strategy. | d. | Active opportunity searching | e. | Strategic
flexibility | | |
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10.
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To
succeed, Ansoff (1987) demands that organizations become: a. | more aggressive
in terms of competitive strategies and entrepreneurialism or change
orientation | b. | more aggressive in terms of competitive
strategies | c. | more aggressive in terms of competitive strategies and in their
pursuit of opportunities | d. | more aggressive in terms of competitive strategies and
innovation | | |
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