Business & Management Test: Business Strategy Part- II

60 Questions | Total Attempts: 184

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Strategy Quizzes & Trivia

Questions and Answers
  • 1. 
    ___________ diversification is when a firm enters a different business that has little horizontal interaction with other businesses of a firm.
    • A. 

      Synergistic

    • B. 

      Related

    • C. 

      Horizontal

    • D. 

      Unrelated

  • 2. 
    Which of the following is not an input process to develop forecasts?
    • A. 

      Environmental monitoring

    • B. 

      Environmental scanning

    • C. 

      Competitor intelligence

    • D. 

      Stakeholder management

  • 3. 
    There are multiple challenges associated with making effective e-teams. Which of the following is not a challenge?
    • A. 

      The physically dispersed team is susceptible to the risk factors that can create process loss.

    • B. 

      E-teams can be effective in generating social capital.

    • C. 

      Process losses result from identification and combination activities.

    • D. 

      Some collective energy, time, and effort must be devoted to dealing with team inefficiencies.

  • 4. 
    The Dodd-Frank Wall Street Reform and Consumer Protection Act require companies to disclose whether any tin, tantalum, tungsten or gold in their supply chain is connected to violent militia groups in the Congo or nine surrounding countries, including Angola, Rwanda, and Sudan. This is an example of which segment of the general environment?
    • A. 

      Demographic

    • B. 

      Political and legal

    • C. 

      Sociocultural

    • D. 

      Economic

  • 5. 
    Creativity and problem-solving ability are considered to be part of _________ capital.
    • A. 

      Physical

    • B. 

      Social

    • C. 

      Emotional

    • D. 

      Human

  • 6. 
    New knowledge involves the continual interaction between __________ and __________ knowledge.
    • A. 

      Theoretical; practical

    • B. 

      Detailed; tacit

    • C. 

      Intellectual; pragmatic

    • D. 

      Tacit; explicit

  • 7. 
    It is anticipated that the worldwide shortage of highly skilled, college-educated workers will increase significantly by 2020, according to research by McKinsey Global Institute. Some companies are going as far as to redefine the jobs of their experts and are transferring some of their tasks to lower-skilled people inside and outside of their companies. By redefining these _________ knowledge jobs, they address _____________ shortages and _____________ costs while enhancing job satisfaction.
    • A. 

      High-value; skill; lower

    • B. 

      High-value; personnel; increase

    • C. 

      Low-value; monetary; decrease

    • D. 

      High-value; skill; increase

  • 8. 
    Internal development may be time consuming and, therefore, firms may forfeit the benefits of speed that growth through __________ and __________ can provide.
    • A. 

      Mergers; joint ventures

    • B. 

      Strategic alliances; joint ventures

    • C. 

      Strategic alliances; mergers

    • D. 

      Mergers; acquisitions

  • 9. 
    The hierarchy of organizational goals is in the following order (least specific to most specific):
    • A. 

      Vision statements, mission statements, strategic objectives.

    • B. 

      Mission statements, strategic objectives, vision statements.

    • C. 

      Vision statements, strategic objectives, mission statements.

    • D. 

      Mission statements, vision statements, strategic objectives.

  • 10. 
    All of the following are examples of socially complex organizational phenomena except
    • A. 

      Complex physical technology

    • B. 

      The culture of a firm.

    • C. 

      Leadership and trust

    • D. 

      Interpersonal relations among managers of a firm.

  • 11. 
    In contrast to the vision of an organization, its mission should
    • A. 

      Encompass both the purpose of the company as well as the basis of competition.

    • B. 

      Be shorter in length.

    • C. 

      Be less detailed.

    • D. 

      Encompass all the major rules and regulations of the corporate work force.

  • 12. 
    Which one of the following statements is an example of how to improve perceptual acuity?
    • A. 

      A CEO meets with the company management team regularly to analyze current world events and their potential impact on the company.

    • B. 

      Outsiders are brought in to the board meeting to critique the company strategy, which considers the new information in its potential revamping of the strategy.

    • C. 

      A CEO meets with direct competitors to analyze current industry trends. The CEOs share their conclusions with their respective companies.

    • D. 

      A CEO meets with other CEOs of non-competing companies to examine the world from multiple perspectives and then shares the results with his own management team.

  • 13. 
    _________ is the network of relationships that individuals have throughout the organization.
    • A. 

      Human capital

    • B. 

      Social capital

    • C. 

      Tacit knowledge

    • D. 

      Intellectual capital

  • 14. 
    In the general environment, many relationships exist among the various elements. General environmental trends can have positive and negative impacts on various industries. For example, the aging population might have a ______ impact on the health care industry and a ______ impact on the baby product industry. These are called _____________ impacts.
    • A. 

      Negative; positive; sociocultural

    • B. 

      Positive; negative; demographic

    • C. 

      Negative; positive; demographic

    • D. 

      Positive; negative; technological

  • 15. 
    A firm that takes on too much long-term debt to finance operations will see an immediate impact on its indicators of _______ financial leverage.
    • A. 

      Long-term

    • B. 

      Short-term

    • C. 

      Comparable

    • D. 

      Relative

  • 16. 
    In the __________ stage of the industry life cycle, there are many segments, competition is very intense, and the emphasis on process design is high.
    • A. 

      Decline

    • B. 

      Maturity

    • C. 

      Introduction

    • D. 

      Growth

  • 17. 
    Stakeholders are
    • A. 

      Creditors who hold a lien on the assets of the organization.

    • B. 

      Attorneys and their clients who sue the organization.

    • C. 

      Individuals, groups, and organizations who have a stake in the success of the organization.

    • D. 

      A new way to describe stockholders.

  • 18. 
    Managers should do more than focus on short-term financial performance. One concept that helps managers do this is stakeholder symbiosis. This means that
    • A. 

      All stakeholders want to maximize shareholder returns.

    • B. 

      One can only gain at the expense of someone else.

    • C. 

      Stakeholders are dependent on each other for their success.

    • D. 

      Stakeholders look out for their individual interests.

  • 19. 
    Portfolio management frameworks, such as the BCG matrix, share which of the following characteristics?
    • A. 

      Position in the matrix suggests a need for sharing synergies.

    • B. 

      They are most helpful in helping businesses develop types of competitive advantage.

    • C. 

      Businesses are plotted on a 3-dimensional grid.

    • D. 

      Grid dimensions are based on external environments and internal capabilities-market positions.

  • 20. 
    The text discusses three areas a firm must be concerned with to keep their best and brightest employees from leaving. These include all the following except
    • A. 

      Developing

    • B. 

      Hiring/selecting

    • C. 

      Retaining

    • D. 

      Sorting/absorping

  • 21. 
    Managers must commit to a _________ use of the balanced scorecard if they expect sustained performance.
    • A. 

      Rapid

    • B. 

      Interim

    • C. 

      Long-term

    • D. 

      Short-term

  • 22. 
    Primark, a fashion retailer, has found a way to keep its cost structure lower than its rivals by leveraging streamlined logistics, a low marketing budget, and negotiating bargain prices from its suppliers. They are using a(n) ______________ strategy.
    • A. 

      Focus

    • B. 

      Overall cost leadership

    • C. 

      Broad differentiation

    • D. 

      Differentiation

  • 23. 
    Which is considered a force in the five-forces model?
    • A. 

      Rivalry among competing firms

    • B. 

      Increased deregulation in an industry

    • C. 

      The threat of government intervention

    • D. 

      Recent technological innovation

  • 24. 
    Primary value chain activities that involve the effective layout of receiving dock operations (inbound logistics) and support value chain activities that include expertise in process engineering (technology development) characterize which generic strategy?
    • A. 

      Differentiation focus

    • B. 

      Stuck-in-the-middle

    • C. 

      Differentiation

    • D. 

      Overall cost leadership

  • 25. 
    An organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that
    • A. 

      Interests of the stockholders are not the only interests that matter.

    • B. 

      All stakeholders receive financial rewards.

    • C. 

      Stakeholders and managers inevitably work at cross-purposes.

    • D. 

      Stakeholders are second in importance to the stockholders.

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