COURSE: STRATEGIC MANAGEMENT

QUESTIONS FOR REVIEW

Write T (True) or F (False) for each of the following questions

1. Different industries are characterized by essentially the same competitive conditions F
2. Horizontal integration is an appropriate strategy when the competitors of an organization
are doing poorly. F
3. Learning effects are cost savings that come from learning by doing. T
4. The Chief Executive Officer (CEO) is the principal general manager of the organization.
T
5. Internal stakeholders are customers, suppliers, creditors, governments, unions, local
communities, and the general public. F (stockholders, employees, managers, board members)
6. Michael Porter has argued that low cost and differentiation are two basic strategies for
creating value and attaining a competitive advantage in an industry. T
7. Business-level strategy is a strategy to use competitor resources and distinctive
competencies to gain a competitive advantage. F
8. The principle concern of corporate-level strategy is to identify the industry or industries a
company should participate in to maximize its long-run profitability. T
9. Organizational design is the process through which managers select the combination of
organizational structure and control systems that they believe will enable the company to
create and sustain a competitive advantage. T
10. A diversified company is one that operates in only one single industry to “stick to its
knitting”. F
11. Personal control is a control through the establishment of a comprehensive system of
rules and procedures to direct the actions or behavior of divisions, functions, and
individuals. T
12. A company has a competitive disadvantage when its profitability is higher than the
average for its industry. F
13. SWOT is an acronym used to describe Strengths, Weaknesses, Opportunities and
Technologies. F
14. Horizontal integration is seeking ownership or increased control over competitors. T
15. The purpose of organizing is to achieve coordinated effort by defining task and authority
relations. T
16. A strategy is a set of related actions that managers take to increase their company’s
performance. T
17. Strategy implementation is the way in which a company creates organizational
arrangements that allow it to pursue its strategy most effectively. F
18. An industry is the same thing as a market segment. F
19. A tangible resource is something physical. T
20. Wake Up Coffee Company has decided to enter the coffee machine manufacturing
business for a six-month trial run. They are likely to have the same unit costs of
 manufacturing as the other established competitors in this industry. F
21. A product can meet customers’ needs by addressing their wants, needs and cravings.
TTT
22. Companies usually set up manufacturing facilities in a foreign country before they start
selling products there. FF
23. Most manufacturing companies begin entry into a new national market by exporting.
TT
24. A commonality is an attribute shared by two or more business units that allows them to
create more value when they operate together. TT
25. Transfer pricing may lead to battles over establishing the fair price of a resource
developed in one division that is to be sold to other divisions that require it. TT
26. The principle concern of corporate-level strategy is to identify the industry or industries
a company should participate in to maximize its long-run profitability. T
27. A good manager can be flexible when it comes to sticking to the original plan; to get good
results the intended strategy does not have to become the realized strategy. TT
28. For a cost leader, competitive parity on the basis of differentiation is unnecessary and
will result in lower profits. TT
29. In outsourcing, a company purchases resources from outside through long-term
contracts instead of being made in-house. T
30. Output controls focus on resources such as knowledge, skills, abilities, values and motives
of employees. F

31. A declaration of an organization’s “reason for being” is the mission statement. T

32. A technology company is likely to have a flat organizational structure, giving
employees wide discretion to meet customers’ demands. TT
33. The marketing and sales function of a company is a support activity on the value
chain. F (primary actives)
34. A cost leader would likely be the first to offer theatre-quality sound in a DVD player.
FF
35. A firm's distinctive competence arises out of the competitive advantages it holds over
its rivals. TT
36. Product bundling ( gói sản phẩm) involves offering customers the opportunity to buy a
complete range of products they need at a single combined price. T(?) TT ( kiểu như
deal sốc trên shopee ấy)
37. The four components for a successful acquisition are target identification and
screening, bidding strategy, integration, and learning from the experience. TT
38. Customer needs are desires, wants, or cravings satisfied by means of the characteristics
of a product. T
39. Horizontal integration is the process of acquiring or merging with industry
competitors in an effort to achieve the competitive advantages that come with large size or
scale. T
40. Organizational design is the process through which managers select the combination of
organizational structure and control systems that they believe will enable the company to
create and sustain a competitive advantage. T
41. Companies that pursue an international strategy focus on increasing profitability by
reaping the cost reductions that come from economies of scale and location economies
(global strategy). F
42. Typically, firms have a substantial ability to control trends in its general environment if
it is able to correctly predict them. F
43. Highlands Coffee Company has decided to enter the coffee machine manufacturing
business for a six-month trial run. They are likely to have higher unit costs of
manufacturing than the other established competitors in this industry. T
44. Integrating mechanisms help coordination take place among people, functions, and
divisions throughout the hierarchy of authority. TT
45. Mass customization is an example of a combination strategy because it provides
unique products to customers and lower costs to the firm. F
46. The corporate level of management occupies the apex of decision-making within the
organization. TT
47. Flattening a structure speeds organizational communication and decision-making. T
48. A SWOT analysis examines the external strengths and weaknesses in an industry
environment and the internal opportunities and threats in the firm. F
49. Market power is the degree to which a company utilizes effective marketing. FF
50. Internal stakeholders are stockholders and employees, including executive officers,
managers, and board members. T
51. A business unit is a self-contained division (with its own functions - for example,
finance) that provides a product or service for a particular market. T
52. Differentiation strategy is a strategy of trying to achieve a competitive advantage by
creating a product that is perceived by customers to be unique in some important way.
53. A virtual corporation outsources all of its functional activities. T
54. The span of control is defined as the number of subordinates a manager directly
manages. T
55. Companies that pursue a localization strategy focus on increasing profitability by reaping
the cost reductions that come from economies of scale and location economies. F (global)
56. Functional managers are responsible for supervising a particular function, that is, a
task, activity, or operation, like accounting, marketing, R&D, information technology, or
logistics. T
57. A hierarchy of authority is a chain of command based on the relative authority that each
manager has. T (?)
58. The traditional differentiation strategies of building a strong brand identity and use of
prestige pricing are easier to accomplish today due to the increased use of the Internet
and digital technologies. F
59. A goal is a precise and measurable future state that a company attempts to realize. T
60. Industry structure accounts for the majority of variance in firm profit rates.
61. General managers are responsible for supervising a particular function, that is, a task,
activity, or operation, like accounting, marketing, R&D, information technology, or
logistics. F (functional)
62. Strategy formulation requires coordination among a few individuals, but strategy
implementation requires coordination among many. T
63. Tasks and activities are grouped together by business function in a divisional
organizational structure. F
64. A company's stakeholders are individuals or groups with an interest, claim, or stake in
the company, in what it does, and in how well is performs. T
65. The mission of a company lays out some desired future state - it articulates, often in bold
terms, what the company would like to achieve. T
66. A company has a competitive advantage when its profitability is higher than the
average for its industry. T
67. Marketing strategy refers to the position that a company takes with regard to pricing,
promotion, advertising, product design, and distribution. T
68. The greater the pressures for cost reductions are, the more likely it is that a company
will want to pursue some combination of exporting and wholly owned subsidiaries. T
69. Companies that pursue a global standardization strategy tend to centralize product
development functions such as R&D at home. F
70. Output control is control through the establishment of a comprehensive system of rules
and procedures to direct the actions or behaviour of divisions, functions, and individuals.
71. Strategic choice is the evaluation of alternative strategies and the selection of the best
alternative. T
72. At the maturity stage of the industry life cycle, products tend to become more like
commodities, and this is now a fragmented industry. (T)
73. Developing strategies for competing in the individual business areas is the specific
responsibility of the business-level managers. T
74. The greater the number of hierarchical levels, the less scope subordinates have to distort
facts, so that the costs of managing the hierarchy decreases.
75. Barriers to entry are legal prohibitions to expansion of the number of competitors in an
industry. F
76. External stakeholders are stockholders and employees, including executive officers,
managers, and board members. F (internal)
77. In franchising, the franchisee grants the franchisor the right to use the parent's name,
reputation, and business skills in a particular location or area. T
78. Vertical integration is a corporate-level strategy that involves a company entering new
industries to increase its short-run profitability. F
79. A company's level of integration is the extent to which it seeks to coordinate its value-
creation activities and make them interdependent. T
80. Personal control is the desire to shape and influence the behavior of a person in a face-to
face interaction in the pursuit of the company’s goals.
81. Emergent strategies are the unplanned responses to unforeseen circumstances. T
82. The differentiator is protected from industry competitors by its cost advantage.
83. The vast majority of acquisitions result in value destruction rather than value creation. T
 84. The critical strengths and weaknesses that are likely to determine if the firm will be able
to take advantage of opportunities while avoiding threats are called internal strategic
factors. T
85. Functional strategy is the approach a functional area takes to achieve corporate and
business unit objectives and strategies by maximizing resource productivity. T
86. Strategic management is difficult to apply when the organization’s output is difficult to
measure objectively.
87. Senior management is usually the group in a firm that is most responsible for the
company’s strategic management.
88. Horizontal integration is an appropriate strategy when the competitors of an
organization are doing poorly. F
89. Learning effects are cost savings that come from learning by doing. T
90. The Chief Executive Officer (CEO) is the principle general manager of the organization.
T
91. Internal stakeholders are customers, suppliers, creditors, governments, unions, local
communities, and the general public. F
92. Michael Porter has argued that low cost and differentiation are two basic strategies for
creating value and attaining a competitive advantage in an industry. T
93. Business-level strategy is a strategy to use competitor resources and distinctive
competencies to gain a competitive advantage. T
94. The principle concern of corporate-level strategy is to identify the industry or industries a
company should participate in to maximize its long-run profitability. T
95. Organizational design is the process through which managers select the combination of
organizational structure and control systems that they believe will enable the company to
create and sustain a competitive advantage. T
96. A diversified company is one that operates in only one single industry to “stick to its
knitting”. F
97. Personal control is control through the establishment of a comprehensive system of rules
and procedures to direct the actions or behaviour of divisions, functions, and individuals.
98. A company has a competitive disadvantage when its profitability is higher than the
average for its industry. T
99. SWOT is an acronym used to describe Strengths, Weaknesses, Opportunities and
Technologies. F
100. Horizontal integration is seeking ownership or increased control over competitors. T
101. The purpose of organizing is to achieve coordinated effort by defining task and
authority relations. T
102. A strategy is a set of related actions that managers take to increase their company’s
performance. T
Circle the best alternative for each of the following questions

13. An international strategy consists of_______.

A. Action plans pursued by American companies to compete against foreign companies operating
in the United States.
B. A strategy whereby a firm sells products in markets outside its domestic market. (chap 8: 4
strategies)
C. The political and economic action plan developed by businesses and governments to cope with
global competition.
D. The strategy American firms use to dominate international markets.
14. For companies realizing economies of scale, as the quantity of a product produced
increases, the cost of manufacturing each unit______.
A. Increases.
B. Remains constant.
C. Fluctuates.
D. Declines. (chap 4: economies of scale)
15. The worldwide product divisional structure supports use of the________.
A. Differentiation strategy
B. Global strategy (chap 8: 4 strategies)
C. Localization strategy
D. Transnational strategy
16. Because ________ often make it possible for young firms to provide services that are
equivalent or superior to an incumbent, a new entrant may be able to serve a market
more effectively, with more personalized services and greater attention to product
details.
A. Backward and forward integration
B. Digital technologies
C. Entry barriers
D. Strategic groups
17. As a stakeholder the local communities associated with an organization have distinct
views of the responsibility an organization has to them. The views of local
communities would include likely all but which one of the following?
A. Participation of company officials in community affairs
B. Providing a place of productive and healthful employment
C. Interest in and support of local government
D. Adherence to the letter and intent of public policy dealing with the requirements of fair and
free competition
18. There are several qualities the long-term objectives developed by a firm should posses
that will improve their chances of being attained. All of the following except
_________ would be considered one of these necessary qualities.
A. Understandable
B. Flexible
C. Measurable over time
D. Encompass a one-year time span
19. All of the following would be considered organizational skills and resources that foster
a differentiation strategy except which one?
A. Strong marketing abilities
B. Products of services designed for ease of manufacture or delivery
C. Corporate reputation for quality or technical leadership
D. Creative talent and flair
20. Which type of organizational structure is best identified as having a set of relatively
autonomous units or divisions that are governed by a central corporate office yet each
unit or division has its own functional specialists who provide services or products
that are different from the other units.
A. Divisional structure
B. Matrix
C. Simple
D. Formal
21. Economies of scale refers to_________.
A. Economies that are large
B. When unit costs of a good decrease with increase in the amount of the good
produced
C. When firms lower the price of their goods in response to competitive pressure
D. When employees are paid more for processing technological know-how
E. None of the above
22. Which of the following is true about a multidivisional structure?
A. Each division is in charge of a major function (e.g., engineering, R&D, sales) of the firm
B. Each division may have a different structure
C. All of the divisions have the same structure
D. Each division reports to a different corporate headquarters
E. None of the above
23. Which of the following characteristics those objectives of a company should not have? -
(SMART objectives and Goals)
A. Measurable
B. Realistic (Relevant)
C. Qualitative
D. Understandable (Specific)
14. Advanced Medical Optics using acquisitions to obtain all medical aspects of eye care,
from laser surgery to contacts to implants for all ages is an example of which type of
strategy?
a. Forward integration (Company expands into an industry that uses, distributes, or sells the company’s
products - là chiến lược nhằm sở hữu hoặc gia tăng khả năng kiểm soát đối với nhà phân phối hoặc
người bán lẻ, đặc biệt phù hợp trong trường hợp nhà phân phối hiện tại có chi phí cao, không đáng tin cậy
hoặc không đáp ứng được nhu cầu của doanh nghiệp trong việc phân phối hàng hóa, dịch vụ)
b. Backward integration - hội nhập về phía sau (company expands its operations into an industry
that produces inputs to the company’s products - là chiến lược nhằm sở hữu hoặc gia tăng khả năng
kiểm soát đối với nhà cung cấp, đặc biệt thích hợp trong trường hợp nhà cung cấp hiện tại của doanh
nghiệp ở mức giá cao, không đáng tin cậy hoặc không đáp ứng được các yêu cầu nhất định.)
c. Horizontal integration ( is the process of acquiring or merging with industry competitors in an
effort to achieve the competitive advantages that come with large scale and scope)
d. Market development (là phương thức tăng trưởng của doanh nghiệp bằng con đường đưa những sản
phẩm hoặc dịch vụ hiện có vào thị trường mới)
e. Product development
15. Which question(s) are answered in an effective mission statement?
a. What is the purpose of our organization?
b. What is our company philosophy or self-concept?
c. What technology will we employ to achieve our objectives?
d. Who are the firm’s customers?
e. All of the above
16. Quickness of imitation is reduced and becomes more expensive for competitors when a
firm develops_______.
A. Economies of scale
B. New products on a consist basis
C. Efficient R and D processes
D. A market leadership position
17. Management, the board of directors, and ______ are the primary participants in
corporate governance.
A. Shareholders
B. Customers
C. Government officials
D. Some lower level employees
18. Which level of the decision making hierarchy is best identified as being composed
principally of business and corporate managers who must translate the statements of
direction and intent into concrete objectives and strategies for the individual business
units?
A. Corporate level
B. Strategic level
C. Business level
D. Functional level
19. The social factors that affect a firm involve all of the following except_______.
A. The propensity of people to spend
B. Lifestyles of people
C. Attitudes of people in the external environment.
D. Values and beliefs of persons outside the firm
E. None of the above
20. The XYZ Company wants to know the major favorable situations that exist in its
environment. Essentially, the company wants to gain understanding of its _________.
A. Strengths
B. Weaknesses
C. Threats
D. Opportunities
21. The strategy embraced by the Kun-Pow Fortune Cookie Company of Memphis strives
to address the needs of a very select and specialized market segment. Kun-Pow is most
likely to engage in which one of the following types of strategy?
A. Differentiation (Chiến lược khác biệt hóa sản phẩm (differentiation strategy) là chiến lược tạo
lợi thế cạnh tranh bằng cách tạo ra sản phẩm hàng hóa dịch vụ có sự khác biệt rõ so với đối thủ
cạnh tranh)
B. Generic (chiến lược cạnh tranh tổng quát)
C. Focus (chiến lược tập trung trọng điểm chuyên tâm vào việc phục vụ một ngách thị trường đặc
biệt được phân định theo địa lý, theo hạng khách hàng hoặc theo phân khúc nhỏ trên một tuyến
sản phẩm đặc thù)
D. Concentrated growth (Chiến lược tăng trưởng tập trung là chiến lược tăng trưởng bằng cách
phát huy các nguồn lực nội bộ của doanh nghiệp để tăng doanh số và lợi nhuận)
22. Measurable outcomes that are designed to be achievable in one year or less of the
company's life are called_______.
A. Corporate missions
B. Downsizing
C. Short-term objectives
D. Reengineering
23. Problems leaders may face when they are attempting to build their organizations
include all but which except one of the following?
A. Clarifying responsibilities
B. Surrendering organizational control to lower-level subordinates
C. Gaining personal commitment to a shared vision
D. Keeping abreast of what is happening in the surrounding environment
24. According to Porter’s Five -Forces Model, which of the following can be the most
important force impacting competitive advantage of a company?
A. The bargaining power of suppliers
B. The bargaining power of distributors
C. The bargaining power of consumers
D. All of the mentioned options
25. Which of the following is not a determinant of the extent of rivalry among established
companies?
A. The number and size distribution of a companies in the industry
B. Demand conditions
C. Exit barriers
D. All of these determine rivalry (chap 2: 5 forces)
E. None of these determine rivalry
26. If Coors opened up its own brewpubs where they served sandwiches and Coors beer,
this would be an example of________.
A. Forward vertical integration (Điều này xảy ra khi một công ty hợp nhất với một công ty khác ở
giai đoạn sản xuất tiếp theo. Ví dụ, một công ty sản xuất hạt cà phê có thể mua một chuỗi cửa
hàng cà phê. ví dụ: nếu Nescafe sản xuất hạt cà phê, họ có thể mua thêm nhiều cửa hàng cà phê
để bán hạt cà phê của chính họ)
B. Backward vertical integration (là khi một công ty mua một công ty trước đây đã cung cấp
nguyên liệu thô cho công ty - Một hãng ô tô mua lại công ty đã từng bán lốp xe cho ô tô của
mình)
C. Horizontal integration (Một công ty thực hiện loại chiến lược này thường sáp nhập hoặc mua
lại một công ty khác đang trong cùng giai đoạn sản xuất)
D. Product bundling (đóng gói)
E. Cross-selling (bán chéo - là việc bán các sản phẩm, dịch vụ liên quan hoặc bổ sung cho khách
hàng dựa trên sự quan tâm và những gì họ đã mua của công ty)
29. Which of the following is a primary activity in a firm’s value chain?

A. Information systems (Support active)

B. Human resources (Support active)
C. Materials Management (Support active)
D. Research and Development (chap 2: the value chain)
E. Company Infrastructure (Support active)
30. When a firm seeks the benefits of global integration and local adaptation, it is best
described as which type of strategy?
A. Transnational
B. Global standardization (When businesses define one global brand, making little to zero
changes for other markets. Apple’s sleek iPhone, Macbook, and iPad are examples of this. While
the software and keyboards may be localized, the brand is the same everywhere you go)
C. Localization
D. International (When businesses focus on imports and exports, keeping most of their operations
in their home country. Luxury products, especially food and wine, often use this strategy because
the country of origin matters to customers)
31. Which of the following outcomes is not an advantage of a completely vertically
integrated business?
A. Potentially greater control is achieved
B. Potentially greater quality is achieved
C. Lowering of risk is achieved
D. Lower price of supplies is achieved
32. The shape or format of reporting and decision making relationships can be defined as
the organizational:
A. Span of control
B. Architecture
C. Hierarchy
D. Chain of command
33. A microchip producer might be advised to follow which of the following international
strategies?
A. A global standardization strategy
B. A transnational strategy
C. A localization strategy
D. None of these
34. In Michael Porter's Five Forces, the 'threat of new entrants' relates to:
A. Barriers to entry
B. Substitutes
C. Switching costs
D. Buyer power
35. The resources of an organization can be defined as:
A. Inputs to enable the organization to carry out its activities
B. The activities of the organization
C. Tangible assets
D. Capabilities of the organization

13. An analysis of the economic segment of the external environment would not
include_________.
A. Interest rates.
B. International trade
C. The strength of the U.S. dollar.
D. The power of banks to increase service charges on checking accounts
14. All of the following are agency costs except costs for________.
A. Monitoring.
B. Enforcement.
C. Lost opportunity (ko chắc lắm)
D. Incentive compensation
15. Quality is possible only when it is part of organizational culture and when________.
A. Customers demand it.
B. Promoted by the firm.
C. Top-level managers support it.
D. Mid-level managers sustain it.
16. Competitive advantages that are unique, valuable, and difficult for rivals to copy are
likely to make these advantages________.
A. Targeted
B. Focused
C. Popular
D. Sustainable (VRIO)
17. The XYZ Organization has an established "game plan" for its business operations. This
 game plan reflects the company's awareness of how and where it should compete and
against whom the competition should take place. It can be stated this organization has
an established _________.
A. Level of strategy
B. Formality
C. Planning mode
D. Strategy
18. ________ factors concern the nature and direction of the economy in which a firm
operates.
A. Technological
B. Ecological
C. Social
D. Economic

19. Simon Ize is the owner of a company that specializes in a variety of floor waxing and
polishing products. His company managers are in the process of finding answers to
such questions as: How well is our current strategy working? and What is our
current situation? In order to obtain the answers to these types of questions Simon's
company is most likely to conduct which one of the following?
A. Analysis of strengths and weaknesses
B. SWOT analysis
C. Analysis of weaknesses and threats
D. Strategic brainstorming session
20. Strategies dependent on ______ are designed to appeal to customers with a special
sensitivity for a particular product attribute.
A. Differentiation
B. Focus
C. Vertical integration
D. Conglomerate diversification
21. Jerome's company desires to become a multi-business company. Which one of the
following would be least likely to be considered another valid rationale for why the
company would desire to take this action?
A. The company wants to be able to monopolize a portion of the market segment.
B. The company wants to diversify risks.
C. It wishes to increase vertical integration.
D. It desires to have an instant market presence without waiting on the process of slow internal
growth.
22. Of the following, which one is least likely to be considered a strategic advantage derived
from a matrix organizational structure?
A. It gives middle management broader exposure to strategic issues
B. It fosters creativity and multiple sources of diversity
C. It can trigger turf battles
D. It provides excellent training ground for strategic managers
23. The degree to which a new product is perceived as being difficult to understand and use
is referred to as_______________.
A. Relative advantage
B. Complexity
C. Compatibility
D. Trialability
E. Observability
24. A statement about what a company does is known as_______________.
A. Its vision
B. Its value
C. Its major goals
D. Its mission
E. Its value chain
25. With respect to corporate-level strategy, horizontal integration refers to_______.
A. When a firm acquires or merges with its suppliers
B. When a firm expands its business into its customers’ business using internal development
C. When a firm acquires or merges with a key customer
D. When a firm acquires or merges with competitors in its industry
E. When a firm outsources key business functions
29. Included in the macro-environment are________.

A. Risk of entry
B. The bargaining power of buyers
C. Rivalry among established firms
D. The global environment
E. Product life-cycle
30. In the case where an organization acquires its supplier, this is an example
of: A. Horizontal integration
B. Forwards vertical integration
C. Backwards vertical integration
D. Downstream vertical integration
31. Economies of scale are derived from:
A. Achieving cheaper unit costs through making larger quantities
B. Using cheaper raw materials
C. Increasing the breadth of the portfolio
D. Increasing the number of markets served
32. If a resource is 'inimitable' a competitor finds it_____.
A. Easy to copy
B. Easy to acquire
C. Easy to copy and easy to acquire
D. Difficult to copy
33. In terms of Porter's Diamond model (chap 8) , a demand condition as applied to the
chocolate industry in Belgium would be:
A. Belgium has a network of firms that support each other in becoming stronger as a whole in
the chocolate industry
B. Belgian consumers are particularly discerning about chocolate
C. Belgium has a number of very strong competing firms in the chocolate industry
D. Belgium possesses a number of secret recipes in chocolate making
34. Budget Rent-a-Car opening car rental shops in Wal-Mart stores is an example of
which type of strategy?
A. Forward integration
B. Backward integration
C. Horizontal integration
D. Related diversification
35. An organization's reputation is an example of:
A. A threshold resource
B. An intangible resource
C. A tangible resource
D. A knowledge-based resource
13. Wal-Mart is the nation's largest employer and second-largest company by revenue.
What does this suggest about the industry's structure?
A. Wal-Mart can exert considerable pressure as a buyer (không hiểu lắm)
B. Wal-Mart's presence in a market reduces rivalry
C. Wal-Mart faces significant substitutes.
D. Wal-Mart increases the threat of new entrants
14. Goodyear Tire & Rubber Co. selling its North American farm-tire business to Titan
International is an example of which type of strategy?
a. Related diversification
b. Unrelated diversification
c. Retrenchment (cắt giảm)
d. Divesting (thoái vốn)
e. Liquidation (thanh toán)
15. In analyzing customers, firms should ask the following questions, except_______.
A. How will core competencies meet the customer's needs?
B. Who is the customer?
C. What are the customers' needs?
D. How will our top management team interact with the customer?
16. ________ innovations usually provide significant technological breakthroughs and
create new knowledge.
A. Sustainable
B. Leading-edge
C. Incremental
D. Radical
17. Of the following, which one is least likely to be considered a critical task associated with
an organization's strategic management process?
A. Evaluation of the process for use in future decision making
B. Evaluation of options relative to the company's mission
C. Decreasing the levels of hierarchy present within the company's management structure
D. Developing a set of short-term objectives that are compatible with the company's grand
strategies
18. A/An ______ is one in which competition crosses national borders on a worldwide basis.
A. Global industry
B. Domestic industry
C. International industry
D. Multi-domestic industry
19. The Grinder Up Corporation is a waste disposal business based in Santa Fe. This
corporation possesses unique capabilities that assist it in being able to sustain its
current market position. These capabilities include having secured suppliers of scarce
raw materials, continuing dominance in its market, excellence at efficiencies, and a
high degree of capitalization. It is most likely that Grinder Up engages in which one
of the following strategies?
A. Differentiation
B. Focus
C. Low-cost leadership
D. Related diversification
20. The extent to which a business concentrates on a narrowly defined market is best
referred to as ___________.
A. Market focus
B. Low-cost leadership
C. Strategic alliance
D. Retrenchment
21. All of the following except which one would be classed as true statements regarding the
matrix organizational structure?
A. It is fairly simple to implement within an organization.
B. The functional and staff personnel are assigned to both a basic functional area and to a project
or product manager.
C. It combines the advantages of functional specialization and product-project specialization.
D. It is rather easy to design.
22. When a firm grants another firm the right to use its name, reputation, and business
model in a particular location in return for a fee and a percentage of the profits, this
is referred to as______________.
A. Franchising
B. Licensing
C. Chaining
D. Vertical integration
E. None of the above
23. _________are economic, strategic, and emotional factors that prevent companies from
leaving an industry.
A. Industry demand
B. Cost conditions
C. Exit barriers
D. Bargaining powers of buyers
E. Substitute products

28. MTV had to adapt its programming to the demands of viewers in different nations in
order to avoid losing market share to local competitors. MTV thus
employed_______________.
A. A global standardization strategy
B. An international strategy
C. A transnational strategy
D. A localization strategy
E. None of the above
29. The capital that stockholders provide to a company is seen as ____________ because
there is no guarantee that stockholders will ever recoup their investment and or earn
a decent return.

A. Long-run returns
B. Risk capital
C. Short-run returns
D. All of the above
E. None of the above
30. In the context of strategic management, stakeholders can be defined as:
A. An individual or group with a financial stake in the organization
B. An external individual or group that is able to impose constraints on the organization
C. Internal groups or individuals that are able to influence strategic direction of the organization
D. An individual or group with an interest in the organization's activities and who seeks to
influence them
31. At corporate level, diversification comes about when a firm is involved in two or more:
A. Businesses
B. Markets
C. Segments
D. Industries
32. A joint venture can be defined as:
A. Two firms collaborate together on a specific project
B. One firm licenses its intellectual property to another firm
C. Two firms merge together
D. None of the above
33. Which of the following is a typical characteristic of a hypercompetitive industry?
A. Firms are always cutting prices
B. The need to compete fiercely is embedded in the belief system of every firm in the industry
(ko chắc lắm)
C. Investment is cut to a minimum to keep costs down
D. Only the industry leader is profitable

14. One effect of globalization is_________.

A. Lower operational efficiency as firms must transport raw materials and finished goods farther.
B. Increasing loyalty of customers for products made domestically
C. Declining returns from investment in research and development.
D. Increased product quality.
E. None of the above
15. In a standard-cycle market, a primary rationale behind the formation of alliances
is_________.
A. Taking advantage of opportunities in emerging market countries.
B. Distributing new products more quickly.
C. Capturing economies of scale
D. Sharing risky R&D investments
16. The Five Forces of Competition Model expands the arena for competitive analysis by
looking at all of the following forces, except_____.
A. Defined markets
B. Rivalry among competing firms
C. Bargaining power of suppliers.
D. Bargaining power of buyers
17. Research has shown that firms having a CEO pay structure with a long-term focus
are________.
A. More profitable.
B. Experiencing more unethical behavior
C. More socially responsible
D. Less profitable
18. When the ABC Corporation makes decisions that assist it in formulating and
implementing plans that are designed to achieve its objectives, it is most likely
engaging in _________.
A. Strategic management
B. Strategy utilization
C. Strategic processing
D. Strategic formality
19. Outside stakeholders of an organization would include all of the following groups
except _________.
A. The general public
B. The board of directors
C. Local and federal governments.
D. Unions and their representatives
20. A set of measures directly linked to a company's strategy, financial performance,
customer knowledge, internal business processes, and learning and growth is best
known as that company's _________.
A. Vision statement
B. Balanced scorecard
C. Strategic plan
D. Corporate mission
21. Sustainable activities that provide all of the following opportunities relative to key
industry forces EXCEPT _________ should become the basis for differentiation
aspects within the business's competitive strategy.
A. Less price sensitivity of buyers
B. Rivalry is reduced
C. Technological changes increase learning and investments
D. Brand loyalty is difficulty for newcomers to overcome
22. Strategic disadvantages associated with a divisional organizational structure would
include all of the following except _________.
A. Creates a potential for policy inconsistencies among divisions
B. Increases cost through duplication functions
C. Retains functional specialization within each division
D. Creates difficulty maintaining overall corporate image
23. Sony produces over 200 variants of portable audio devices to target a wide array of
market segments. All of the devices offer relatively high performance and stylish
design. This strategy is most consistent with________.
A. Cost leadership
B. Focus cost leadership
C. Differentiation
D. Focus differentiation
E. The generic strategy
24. ___________is a strategy in which a company concentrates on expanding market share
in its existing product markets.
A. Product development
B. Market penetration (doanh nghiệp tập trung vào việc bán các sản phẩm hiện có vào các thị
trường hiện có.)
C. Product proliferation
D. Horizontal merger (là hình thức sáp nhập diễn ra giữa các công ty trong cùng một ngành kinh
doanh (hay có thể nói là giữa các đối thủ cạnh tranh)
E. Franchising (nhượng quyền thương mại)
29. According to Henry Mintzberg, emergent strategies____________ .

A. Are less likely to be successful than the intended strategies.

B. Arise from autonomous action by individual managers deep within the organization.
C. Are exactly the same as the intended strategies.
D. Are usually developed by the top management team.
E. Are less useful when the future is uncertain.
30. In the context of strategic management, resources can be defined as:
A. The knowledge and skills within the organization
B. Something that an organization owns or controls that cannot be copied
C. Something that an organization owns, controls or has access to on a semi-permanent basis
D. The physical assets of the organization
31. In Porter's Generic Strategies model, a focus strategy involves:
A. Selling a limited range of products
B. Selling to a narrow customer segment ( In Porter's generic strategies model, a focus strategy
involves selling to a narrow customer segment. Porter's generic strategies describe how a
company pursues competitive advantage across its chosen market scope. There are three/four
generic strategies, either lower cost, differentiated, or focus.)
C. Selling to one region only
D. Selling simple products that are cheap to produce
32. Which of the following outcomes is a potential benefit of outsourcing?
A. Higher flexibility
B. Higher control
C. Lower transaction costs
D. Better linkages between activities
33. At the introductory stage of an industry, products and services are likely to be
differentiated on:
A. Reliability
B. Quality
C. Dependability
D. Functionality . ( Attributes such as quality, reliability/dependability are more likely to be
differentiators in the mature phase of an industry once the novelty of the new industry has worn
off.)
34. The general environment is also referred to as the:
A. Micro-environment
B. Macro-environment
C. Competitive environment
D. External environment
35. The value chain is subdivided into two main headings. These are primary activities
and_________.
A. Peripheral activities
B. Support activities . (The value chain is subdivided into two main headings. These are primary
activities and support activities.)
C. Secondary activities
D. Outsourced activities
13. The tangible assets of a firm such as Gary's Two-Can Tan Company would include all
but which one of the following?
A. Its trademark.
B. Its raw materials.
C. Its financial resources.
D. Its computer systems.
14. A business strategy that seeks to build competitive advantage with its product or
service by having it be unique from other available competitive products would be
classed as __________ strategy.
A. Differentiation
B. Market focus
C. Low-cost leadership
D. None of the above
15. Strategic advantages of a functional organization structure would include all but which
one of the following?
A. Delegation of day-today operating decisions
B. Promotes functional rivalry
C. Tightly links structure to strategy
D. Retains centralized control of strategic decisions
16. The bargaining power of a manufacturing industry’s suppliers is greater when_______.
A. The supply industry is fragmented
B. The manufacturers face high switching costs to change suppliers
C. Suppliers sell a large quantity of their product to a few large manufacturers
D. Many substitutes are available
E. Manufacturers can threaten to produce their own supplies
17. A matrix structure____________.
A. Breaks a company’s growing product line into a number of smaller, more manageable
subunits
B. Groups people on the basis of their common expertise and experience (e.g.,engineers are
grouped together)
C. Breaks the company into groups that focus on particular types of customers
D. Groups employees in two ways-vertically by tasks such as engineering, sales, and R&D, and
horizontally by product or project
E. None of the above
18. When cost leaders begin to offer many different product variants to target more
market segments_______________.
A. They tend to attract many more customers
B. They push the value frontier outward
C. They are able to compete as both differentiators and cost leaders
D. They risk raising their costs and losing their distinctive position
E. All of the above
29. To find out what an organization's strategy is, you should:
A. Read the mission statement
B. Look at what the organization actually does
C. Read the strategic plan
D. Ask the CEO
30. Segmentation is a way of:
A. Subdividing markets .(Segmentation can be applied to customers and businesses. It is a way of
subdividing them into distinct groups with similar characteristics. Different variables can be used as a
means of segmenting customers and businesses.)
B. Subdividing industries
C. Differentiating products
D. Subdividing organizations into departments
31. In the value chain, primary activities are________.
A. Directly involved in the production, marketing and delivery of the product or service . (
The primary activities are conventionally known as product design and development, inbound
logistics, operations, outbound logistics, marketing and after-sales service.)
B. Those activities that are all undertaken in-house
C. Those activities that support the production, marketing and delivery of the product or service
D. None of the above
32. Which of the following would not normally be an advisable strategy in the introductory
stage of the industry life cycle?
A. Differentiating on superior product technology
B. Internationalization
C. Collaborating with competitors to build the industry's profile
D. Aiming to maximize efficiency and lower costs. ( At the introductory stage, it makes sense to
take actions to legitimize the industry. Firms are increasingly able to sell internationally at an early
stage in the life cycle, even if it is sometimes a better use of resources to focus on home markets.
Differentiation strategies are the norm at this stage - it makes little sense to seek cost advantage until
technologies have stabilized later in the life cycle.)
33. Decisions regarding which industries to compete in are the concern of________.
A. Business level strategy
B. Corporate level strategy
C. Mergers and acquisitions
D. Functional level strategy
34. Competitive rivalry will be high if________.
A. The industry is fragmented
B. There are a few strong players in the industry
C. There is a high degree of differentiation
D. The industry is in its infancy
35. A decision made at the business level of a firm would be________.
A. The degree of synergy between the businesses in the portfolio
B. Which industries to enter
C. How to compete in a given market
D. How to add value to the businesses in the portfolio