Course : Strategic - Management - Quản trị học | Trường Đại học Kinh tế, Đại học Quốc gia Hà Nội

lOMoARcPSD|45316467 lOMoARcPSD|45316467 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 FALSE
2. Horizontal integration is an appropriate strategy when the competitors of
an organization are doing poorly. TRUE
3. Learning effects are cost savings that come from learning by doing. TRUE
4. The Chief Executive Officer (CEO) is the principal general manager of the organization. TRUE
5. Internal stakeholders are customers, suppliers, creditors, governments,
unions, local communities, and the general public. FALSE
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. TRUE
7. Business-level strategy is a strategy to use competitor resources and
distinctive competencies to gain a competitive advantage. TRUE
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. TRUE
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. TRUE
10.A diversified company is one that operates in only one single industry to
“stick to its knitting”. FALSE
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. TRUE lOMoARcPSD|45316467
12.A company has a competitive disadvantage when its profitability is higher
than the average for its industry. FALSE
13.SWOT is an acronym used to describe Strengths, Weaknesses,
Opportunities and Technologies. FALSE
14. Horizontal integration is seeking ownership or increased control over competitors. TRUE
15. The purpose of organizing is to achieve coordinated effort by defining task and
authority relations. TRUE
16.A strategy is a set of related actions that managers take to increase their
company’s performance. TRUE
17. Strategy implementation is the way in which a company creates
organizational arrangements that allow it to pursue its strategy most effectively. FALSE
18. An industry is the same thing as a market segment. FALSE
19. A tangible resource is something physical. TRUE
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. FALSE
21. A product can meet customers’ needs by addressing their wants, needs, and cravings. TRUE
22. Companies usually set up manufacturing facilities in a foreign country
before they start selling products there. - FALSE
23. Most manufacturing companies begin entry into a new national market by exporting. - TRUE
24. A commonality is an attribute shared by two or more business units that
allow them to create more value when they operate together. - TRUE
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. - TRUE lOMoARcPSD|45316467
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. - TRUE
(Business-level strategy is concerned with positioning a single company
or business unit that focuses on a single product or product line)
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. False
28. For a cost leader, competitive parity on the basis of differentiation
is unnecessary and will result in lower profits. - TRUE
29. In outsourcing, a company purchases resources from outside through long-
term contracts instead of being made in-house. - TRUE
(Outsourcing is a business practice in which a company hires a
third-party to perform tasks, handle operations or provide
services for the company.)
30. Output controls focus on resources such as knowledge, skills, abilities,
values and motives of employees. - FALSE
(While output control focuses on results, behavioural control focuses
on controlling the actions that ultimately lead to results.)
31. A declaration of an organization’s “reason for being” is the mission statement. TRUE
32. A technology company is likely to have a flat organizational structure,
giving employees wide discretion to meet customers’ demands. TRUE
33. The marketing and sales function of a company is a support activity on the value chain. TRUE
34. A cost leader would likely be the first to offer theater-quality sound in a DVD player. FALSE
35. A firm's distinctive competence arises out of the competitive advantages
it holds over its rivals. TRUE
36.Product bundling involves offering customers the opportunity to buy a
complete range of products they need at a single combined price. TRUE lOMoARcPSD|45316467
37.The four components for a successful acquisition are target identification
and screening, bidding strategy, integration, and learning from the experience. TRUE
38. Customer needs are desires, wants, or cravings satisfied by means of the
characteristics of a product. TRUE
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. TRUE
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. TRUE
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. TRUE
42. Typically firms have a substantial ability to control trends in its general
environment if it is able to correctly predict them. FALSE
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. FALSE
44. Integrating mechanisms help coordination take place among people,
functions, and divisions throughout the hierarchy of authority. TRUE
45. Mass customization is an example of a combination strategy because it
provides unique products to customers and lower costs to the firm. TRUE
46. The corporate level of management occupies the apex of decision making
within the organization. TRUE
47. Flattening a structure speeds organizational communication and decision making. TRUE
48. A SWOT analysis examines the external strengths and weaknesses in an
industry environment and the internal opportunities and threats in the firm. FALSE lOMoARcPSD|45316467
49. Market power is the degree to which a company utilizes effective marketing. FALSE
50. Internal stakeholders are stockholders and employees, including
executive officers, managers, and board members. TRUE
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. TRUE
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. (TRUE)
53. A virtual corporation outsources all of its functional activities. FALSE
54. The span of control is defined as the number of subordinates a
manager directly manages. TRUE
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. FALSE
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. TRUE
57. A hierarchy of authority is a chain of command based on the relative
authority that each manager has. TRUE
58. The traditional differentiation strategies of building strong brand identity
and use of prestige pricing are easier to accomplish today due to increased
use of the Internet and digital technologies. TRUE
59. A goal is a precise and measurable future state that a company attempts to realize. TRUE
60. Industry structure accounts for the majority of variance in firm profit rates. (cơ
cấu ngành chiếm phần lớn phương sai trong tỷ suất lợi nhuận doanh nghiệp) TRUE lOMoARcPSD|45316467
61. General managers are responsible for supervising a particular function
(chức năng cụ thể), that is, a task, activity, or operation, like accounting,
marketing, R&D, information technology, or logistics. - FALSE
(The general manager is responsible for all aspects of a business, including
daily operations, administrative functions, and finances.)
62.Strategy formulation requires coordination among a few individuals, but
strategy implementation requires coordination among many. -TRUE
63. Tasks and activities are grouped together by business function in a
divisional organizational structure. - FALSE
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. - TRUE
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. - FALSE (vision)
(Mission: a state - what company do, what customer group and needs and how to satisfied them)
66. A company has a competitive advantage when its profitability is higher
than the average for its industry. - FALSE
67.Marketing strategy refers to the position that a company takes with regard to
pricing, promotion, advertising, product design, and distribution. - TRUE
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. - TRUE (Pressure for cost reduction and entry mode)
69. Companies that pursue a global standardization strategy tend to
centralize product development functions such as R&D at home. TRUE
70. Output control is control through the establishment of a comprehensive
system of rules and procedures to direct the actions or behavior of divisions,
functions, and individuals. FALSE lOMoARcPSD|45316467
71. Strategic choice is the evaluation of alternative strategies and the selection
of the best alternative. TRUE
72. At the maturity stage of the industry life cycle, products tend to become
more like commodities, and this is now a fragmented industry. FALSE
73. Developing strategies for competing in the individual business areas is the
specific responsibility of the business-level managers. TRUE
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. - FALSE
(communication problems get progressively worse)
75. Barriers to entry are legal prohibitions to expansion of the number of
competitors in an industry. - TRUE
76. External stakeholders are stockholders and employees, including executive
officers, managers, and board members. - FALSE
(Suppliers, creditors, and public groups are all considered external stakeholders)
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. TRUE
78. Vertical integration is a corporate-level strategy that involves a company
entering new industries to increase its short-run profitability. TRUE
79. A company's level of integration is the extent to which it seeks to
coordinate its value creation activities and make them interdependent. TRUE
80. Personal cont. Personal control rol 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. TRUE
81. Emergent strategies are the unplanned responses to unforeseen circumstances. TRUE
82. The differentiator is protected from industry competitors by its cost advantage. FALSE lOMoARcPSD|45316467
83. The vast majority of acquisitions result in value destruction rather than value creation. TRUE
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. TRUE
85. Functional strategy is the approach a functional area takes to achieve corporate
and business unit objectives and strategies by maximizing resource productivity. TRUE
86. Strategic management is difficult to apply when the organization’s output
is difficult to measure objectively. FALSE
87. Senior management is usually the group in a firm that is most responsible
for the company’s strategic management. TRUE
88. Horizontal integration is an appropriate strategy when the competitors of an
organization are doing poorly. TRUE
89. Learning effects are cost savings that come from learning by doing. TRUE
90. The Chief Executive Officer (CEO) is the principle general manager of the organization. TRUE
91. Internal stakeholders are customers, suppliers, creditors, governments,
unions, local communities, and the general public. FALSE
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. TRUE
93. Business-level strategy is a strategy to use competitor resources and
distinctive competencies to gain a competitive advantage. FALSE
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. TRUE
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. TRUE lOMoARcPSD|45316467
96. A diversified company is one that operates in only one single industry to
“stick to its knitting”. FALSE
97. 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. FALSE
98. A company has a competitive disadvantage when its profitability is higher
than the average for its industry. FALSE
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. TRUE
101. The purpose of organizing is to achieve coordinated effort by defining
task and authority relations. TRUE
102. A strategy is a set of related actions that managers take to increase their
company’s performance. TRUE
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.
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. (dao động)
D. Declines. (Từ chối)
15. The worldwide product divisional structure supports use of the________. lOMoARcPSD|45316467 A. Differentiation strategy
B. Global strategy 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 possess 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 (Bao gồm khoảng thời gian 1 năm)
19. All of the following would be considered organizational skills and
resources that foster a differentiation strategy except which one? lOMoARcPSD|45316467 A. Strong marketing abilities
B. Products of services designed for ease of manufacture or delivery (dễ sx và vận chuyển)
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 (a set of autonomous units, division governed by the
central corporate office, each unit has functional specialist)
B. Matrix (functional and staff personnel are assigned to both a basic functional
area and to a project or product manager)
C. Simple (an owner - few employees, task, responsibilities, communication
is informal and accomplished through direct supervisor) D. Formal (không có)
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?
(one parent company that consists of a number of different divisions operating
separate businesses, each division is separate - cty nhiều phòng ban tách biệt)
A. Each division is in charge of a major function (e.g., engineering, R&D, sales) of firm
B. Each division may have a different structure
C. All of the divisions have the same structure lOMoARcPSD|45316467
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? A. Measurable B. Realistic C. Qualitative D. Understandable
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 b. Backward integration c. Horizontal integration d. Market development 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 lOMoARcPSD|45316467 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_______. (Per capita income)
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 B. Generic lOMoARcPSD|45316467 C. Focus D. Concentrated growth
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 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
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
B. Backward vertical integration lOMoARcPSD|45316467 C. Horizontal integration D. Product bundling E. Cross-selling
29. Which of the following is a primary activity in a firm’s value chain? A. Information systems B. Human resources. C. Materials Management D. Research and Development E. Company Infrastructure
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 C. Localization D. International
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? lOMoARcPSD|45316467
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 D. Incentive compensation
15. Quality is possible only when it is part of organizational culture and when________. A. Customers demand it. lOMoARcPSD|45316467 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
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 lOMoARcPSD|45316467
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_______________.