1) When rapid technological developments are the main elements of an industry then which strategy is appropriate?
A) product development
B) backward integration
C) liquidation
D) retrenchment
E) market penetration

2) Which of the following is not a reason for globalization of industries to occurr:
A) the emergence of global buyers.
B) a worldwide trend toward similar consumption patterns.
C) the emergence of global sellers.
D) e-commerce and the instant transmission of money and information across continents.
E) a worldwide trend toward different consumption patterns.

3) Competitive advantage normally is the result of superiority in resources, skills and
A) position.
B) employees.
C) consistency.
D) feasibility.
E) governance.

4) What refers to a strategy of seeking ownership of or increased control over a firm's competitors?
A) conglomerate diversification
B) concentric diversification
C) horizontal integration
D) backward integration
E) forward integration

5) A concern in matching managers with strategy is that jobs have relatively responsibilities, while people are in their development.
A) quick; slow
B) dynamic; static
C) static; dynamic
D) dull; exciting
E) exciting; dull

6) In the presence of costly and unreliable suppliers, which of these strategies may be appropriate?
A) market penetration
B) concentric diversification
C) backward integration
D) forward integration
E) horizontal integration

7) When firms produce standard and/or undifferentiated products consumersâ€™ bargaining power is?
A) low
B) marginal
C) high
D) negative
E) not necessary

8) Which of these strategies best collectively refer as Integration strategies?
A) stuck-in-the-middle
B) horizontal integration
C) hierarchical integration
D) diversification
E) vertical integration

9) What is a weakness associated with a SWOT Matrix?
A) The matrix has no temporal qualities.
B) Other variables besides relative market share position and industry growth rate in sales need to be considered.
C) Many businesses fall right in the middle of the matrix.
D) Viewing every business as a Star, Cash Cow, Dog, or Question Mark is an oversimplification.
E) The matrix does not reflect whether or not various divisions or their industry are growing over time.

10) When the distinctive competencies of two or more firms complement each other especially well which strategy would be most appropriate?
A) conglomerate diversification
B) divestiture
C) retrenchment
D) integration
E) joint venture

11) Large research and development expenditures are normally associate with which strategy?
A) retrenchment
B) product development
C) market penetration
D) divestiture
E) forward integration

12) Technological advancements can create new advantages that are more powerful than existing advantages.
A) competitive
B) economic
C) comparative
D) social
E) environmental

13) Strategic management is
A) based on analysis rather than research.
B) based on creativity rather than intuition.
C) more of an art than a science.
D) more of a science than an art.
E) based on intuition rather than analysis.

14) Intensity of competition in lower-return industries.
A) is not important
B) is non-existent
C) fluctuates
D) is lowest
E) is highest

15) When a firm does something especially well compared to rival firms is referred to as:
A) sustainable advantage.
B) an external opportunity.
C) comparative advantage.
D) opportunity cost.
E) competitive advantage.

16) Horizontal integration would be an especially effective strategy?
A) when an organization has neither the capital nor human talent needed to successfully manage an expanded organization
B) when an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition
C) when competitors are succeeding due to managerial expertise or having particular resources an organization possesses
D) when an organization competes in a slowing industry
E) when decreased economies of scale provide major competitive advantages

17) In the seminal work by Porter in 1979 and later in 2008, what is usually the most powerful of the five competitive forces?
A) bargaining power of suppliers
B) rivalry among competing firms
C) potential entry of new competitors
D) potential development of substitute products
E) bargaining power of consumers

18) Which of the following can limit the potential for creative growth for the organization
A) an overemphasis on stakeholders.
B) a mission statement that is too general.
C) not enough emphasis on stakeholders.
D) a mission statement that is too dynamic.
E) a mission statement that is too specific.

19) In the SPACE analysis, what does a (+6, +3) strategy profile portray?
A) an unstable environment
B) a stable environment
C) a weak financial position
D) a weak industry
E) a strong industry

20) If the number of suppliers is small and the number of competitors is large which of these strategies is effective?
A) backward integration
B) horizontal diversification
C) forward integration
D) conglomerate diversification
E) concentric diversification

21) According to the Grand Strategy Matrix, which strategy is recommended for a firm with rapid market growth and a strong competitive position?
A) market penetration
B) retrenchment
C) joint venture
D) conglomerate diversification
E) liquidation

22) and are external forces transforming business and society today.
A) E-commerce; globalization
B) Strategy; globalization
C) Stakeholders; strategy
D) Corporate culture; stakeholders
E) E-commerce; strategy

23) Which of the following situations is not conducive to market development
A) when an organization competes in a high-growth industry.
B) when an organization's basic industry is becoming rapidly global in scope.
C) when new untapped or unsaturated markets exist.
D) when an organization has excess production capacity.
E) when an organization is very successful at what it does.

24) Which of the following dimensions are not recommended aspects of a mission statement?
A) concern for employees
B) markets
C) customers
D) strategies
E) self-concept

25) All of the following are Michael Porter's five competitive forces except?
A) bargaining power of unions
B) bargaining power of buyers
C) rivalry among existing firms
D) new entrants
E) bargaining power of suppliers

26) PNC Bank opening banking services in K-Mart stores is an example of which type of strategy?
A) forward integration
B) horizontal integration
C) unrelated diversification
D) backward integration
E) related diversification

27) Which strategy best describes the situation when a firm offers products or services to a wide range of customers at the lowest price available on the market?
A) low-cost focus
B) differentiation
C) best-value
D) low-cost
E) best-value focus

28) What is important when organizations face dynamic environments in which key external and internal factors often change quickly and dramatically?
A) strategy implementation
B) strategy formulation
C) strategy simplification
D) strategy modification
E) strategy evaluation

29) The BCG Matrix limitations include all of these except:
A) requiring at least three years' worth of data.
B) not reflecting divisional or industry growth over time.
C) other variables such as size of market and competitive advantages are not considered.
D) not allowing a company to be classified as somewhere in between two categories.
E) viewing every business as a star, cash cow, dog or question mark can be an oversimplification.

30) It is best not to use backward integration:
A) when an organization competes in an industry that is growing rapidly.
B) when present suppliers have high profit margins.
C) when the advantage of stable prices are not important.
D) when an organization has both capital and human resources to manage the new business of supplying its own raw materials.
E) when an organization needs to acquire a needed resource quickly.

31) Which of the following is not considered to be a function of marketing.
A) Distribution
B) Marketing research
C) Opportunity analysis
D) Market segmentation
E) Customer analysis

32) Which of the following is not a pitfall to be avoided by organizations when conducting strategic planning:
A) using strategic planning to gain control over decisions and resources.
B) failing to involve key employees in all phases of planning.
C) using plans as a standard for measuring performance.
D) too hastily moving from mission development to strategy formulation.
E) being so formal in planning that flexibility and creativity are stifled.

33) A joint venture will not fail when?
A) Managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture.
B) The venture may begin to compete more with one of the partners than the other.
C) Stakeholders from both partners are equally satisfied.
D) The venture may not be supported equally by both partners.
E) The venture may benefit the partnering companies but may not benefit the customers who then complain about poorer service or criticize the companies in other ways.

34) All of the following are reasons to be completely open with the strategy process except:
A) participation and openness enhances understanding, commitment and communication within the firm.
B) openness limits rival firms from imitating or duplicating the firm's strategies.
C) managers, employees and other stakeholders can readily contribute to the process.
D) investors, creditors and other stakeholders have greater basis for supporting a firm that is open.
E) visibility promotes democracy whereas secrecy promotes autocracy.

35) The strategic move known as Bankruptcy
A) should be used only when one is legally forced to do so.
B) should never be used as a strategy.
C) can be an effective type of retrenchment strategy.
D) should only be used for small, private firms.
E) should only be used for large firms.

36) The I/O approach to competitive advantage advocates that external factors are internal factors in a firm achieving competitive advantage.
A) more common than
B) less important than
C) less common than
D) as important as
E) more important than

37) If the division is positioned in the Cash Cow segment of the BCG matrix which of these is an attractive strategy?
A) horizontal integration
B) forward integration
C) concentric diversification
D) conglomerate diversification
E) backward integration

38) When empowered employees are held accountable for and pressured to achieve specific goals and are given wide latitude in their actions to achieve them, there can be
A) increased number of litigations.
B) dysfunctional behavior.
C) decreased number of complaints.
D) decreased turnover.
E) increased productivity.

39) Which term is best defined as a central management activity that allows for strategy execution?
A) conflict
B) policy-making
C) resource allocation
D) establishing annual objectives
E) goal-setting

40) The general public is especially interested in , whereas stockholders are more interested in .
A) environmental concerns; social responsibility
B) profitability; social responsibility
C) social responsibility; the treatment of employees
D) social responsibility; profitability
E) the treatment of employees; environmental concerns

41) No-growth or a slow-growth industry bests call for what type of strategy?
A) retrenchment
B) backward integration
C) related diversification
D) unrelated diversification
E) divestiture

42) When a firm possess resource, skills or abilities that cannot be easily matched or imitated by competitors, these are called
A) internal audits.
B) internal properties.
C) special properties.
D) distinctive competencies.
E) external audits.

43) As firms use several measure to assess performance, which of the following is not included in measuring organizational performance?
A) comparing expected results to actual results
B) investigating deviations from plans
C) evaluating individual performance
D) examining progress being made toward meeting stated objectives
E) comparing results to competitors' expectations

44) A cost leadership strategy would be especially effective when?
A) few rival firms are following a similar approach
B) technological change is fast paced and competition revolves around rapidly evolving product features
C) the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers
D) buyer needs and uses are diverse
E) there are many ways to differentiate the product or service and many buyers perceive these differences as having value

45) All of these are Richard Rumelt's criteria to evaluate a strategy except:
A) distinctiveness.
B) advantage.
C) consistency.
D) feasibility.
E) consonance.

46) The match an organization makes between its internal resources and skills and the opportunities and risks created by its external factors can be defined as:
A) input.
B) SWOT.
C) strategy.
D) an opportunity.
E) concept formulation.

47) A strong dollar impacts American goods overseas by making them?
A) cheaper
B) less expensive
C) desirable
D) more attractive
E) more expensive

48) Which of the following is not a financial objective?
A) larger market share.
B) a rising stock price.
C) greater return on investment.
D) higher dividends.
E) growth in revenues.

49) How often should Strategy-evaluation activities be performed
A) every two years.
B) at the onset of a problem.
C) on a continuous basis.
D) upon completion of major projects.
E) on a periodic basis.

50) According to Porter, which strategy offers products or services to a small range of customers at the lowest price available on the market?
A) best-value focus
B) differentiation
C) low-cost
D) low-cost focus
E) best-value

51) Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms
A) stays the same.
B) increases.
C) neutralizes.
D) fluctuates.
E) decreases.

52) When companies take over functional operations of other firms, such as human resources, information systems, payroll, accounting, or customer service, this is called
A) outsourcing.
B) licensing.
C) franchising.
D) divestiture.
E) marketing.

1) When rapid technological developments are the main elements of a...