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MCQ Flashcards

1
Q
  1. The term ’corporate strategy’ concerns strategy and strategic decisions:
    A. At all levels in an organisation.
    B. In certain types of organisations.
    C. Developed by the senior management in an organisation.
    D In the private sector only.
A

A. At all levels in an organisation.

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2
Q
  1. A key characteristic of strategic decisions is that:
    A. they are likely to be concerned with, or affect, the long-term direction of an
    organisation.
    B. they identify specific areas of strategic interest for the management of an
    organisation.
    C. they result in better organisational performance.
    D. they are normally definite decisions about the future of the organisation.
A

A. they are likely to be concerned with, or affect, the long-term direction of an
organisation.

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3
Q
  1. Identification of what ‘helps managers to focus on the environmental factors
    that are most important and which must be addressed most urgently’?
    A. PESTEL
    B. Key drivers for change
    C. Scenarios
    D. Five Forces
A

B. Key drivers for change

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4
Q 
4. What is meant by the term 'SBU'?
A. Strategic board undertaking
B. Single business unit
C. Strategic business unit
D. Service bureau unit
A

C. Strategic business unit

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5
Q 
5. Which type of lens encourages a detached approach to planning and analysis,
valuing hard facts and objectivity?
A. Variety
B. Design
C. Experience
D. Discourse
A

B. Design

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6
Q 
6. Which of the following is NOT a way of overcoming bases of competitive
advantage?
A. Increasing selling power
B. Imitation
C. Blocking first-mover advantage
D. Overcoming barriers to entry
E. Strategic repositioning
A

A. Increasing selling power

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7
Q
  1. Which of the following is not one of the alternative directions shown on the
    Ansoff product/market growth matrix?
    2
    A. Diversification
    B. Developing new products
    C. Corporate parenting
    D. Bringing existing products into new markets
A

C. Corporate parenting

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8
Q
  1. It is possible to identify different levels of strategy in an organisation; these
    are:
    A. Corporate and business unit.
    B. Corporate; strategic business unit; and operational.
    C. Strategic and tactical.
    D. Corporate and functional
A

B. Corporate; strategic business unit; and operational.

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9
Q 
9. What term is used for the 'long-term direction of an organisation'?
A. Strategy
B.Goals
C.Vision
D. Mission
A

A. Strategy

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10
Q
  1. Which of the following statements accurately relates to the stakeholder
    model of governance?
    A. Firms generally have a single-tier structure.
    B. Shareholders have a legitimate primacy in relation to the wealth generated by
    organisations.
    C. All board members are insiders (typically managers of the company).
    D. Boards attempt to consider the wishes of all stakeholders.
A

D. Boards attempt to consider the wishes of all stakeholders.

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11
Q
  1. What term is used for a situation where early events and decisions establish
    policy paths that have lasting effects on subsequent events and decisions?
    A. Strategic drift
    B. Path dependency
    C. Cyclical strategy
    D. Historicisation
A

B. Path dependency

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12
Q
  1. What term is used for M&A integration in which it is implied that both the
    acquired firm and the acquiring firm learn the best qualities from the other?
    A. Absorption
    B. Holding
    C. Symbiosis
    D. Preservation
A

C. Symbiosis

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13
Q
  1. In the context of strategic alliances, what is meant by the term ‘collaborative
    advantage’?
    A. The benefit of creating a new entity that is owned separately by the partners
    involved
    B. The result of managing alliances better than competitors
    C. The benefits of being part of a network of alliances of which an organisation is
    a member
    D. The aim of two or more organisations in sharing resources and activities to
    pursue a strategy
A

B. The result of managing alliances better than competitors

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14
Q
  1. When using PESTEL it is easy to get overwhelmed by a multitude of details.
    Instead, it is important to step back and identify the:
    3
    A. relevant Five Forces that exist
    B. market segments
    C. complex links between each of the factors
    D. key drivers for change
A

D. key drivers for change

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15
Q 
15. Which of the following is likely to be a cost of corporate parenting?
A. Coaching and facilitating
B. Envisioning
C. Intervening
D. Adding management costs
A

D. Adding management costs

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16
Q
  1. Strategic choices require an understanding of:
    A. The organisational strengths and weaknesses.
    B. The underlying bases for future strategy at business-unit and corporate
    levels; and the options for developing strategy in terms of directions and
    methods of development.
    C. The business environment, the competition and the strategic capability of the
    organisation.
    D. The key drivers of change
A

B. The underlying bases for future strategy at business-unit and corporate
levels; and the options for developing strategy in terms of directions and
methods of development.

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17
Q
  1. A film company and a music recording company may choose to combine,
    believing that the result will be more effective than the sum of the two
    component parts. What term is used for the benefits?
    A. Consolidation
    B. Synergy
    C. Integeration
    D. Diversification
A

B. Synergy

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18
Q
  1. Best-in-class benchmarking seeks to assess organisational performance
    against:
    A. The nearest geographical competitor.
    B. the competitor who is ’best inclass’ wherever that may be.
    C. The nearest principal competitor.
    D. The competitor who is the best in the industry
A

B. the competitor who is ’best inclass’ wherever that may be.

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19
Q
  1. Which of the following definitions explains what is meant by the corporate
    parent?
    A. The founder of the business
    B. The levels of management above that of business units
    C. The central head office of the organisation
    D. The owner or major shareholder of the corporation
A

B. The levels of management above that of business units

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20
Q
  1. Core competences are the skills and abilities by which resources are
    deployed through anorganisation’s activities and processes such as to:
    A. Survive using approaches and techniques that others cannot imitate or
    obtain.
    B. Achieve competitive advantage in ways that others cannot imitate or obtain.
    C. Survive.
    D. Achieve competitive advantage.
A

B. Achieve competitive advantage in ways that others cannot imitate or obtain.

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21
Q
  1. Which of the following terms is used for’an organisation that is loosely
    coordinatedinternationally, but involves dispersion overseas of variousactivities,
    with goods and services produced locally in each national market’?
    A. Multidomestic
    B. Global
    C. Exporter
    D. Transnational
A

A. Multidomestic

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22
Q
  1. Who shapes and communicates strategy?
    A. Senior managers
    B. Managers at all levels and specialist strategists
    C. Specialist strategists
    D. Middle and senior managers
A

B. Managers at all levels and specialist strategists

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23
Q
  1. What is defined as ‘a group of customers who have similar needs that are
    different from customer needs in other parts of the market’?
    A. Strategic group
    B. Customer grouping
    C. Market segment
    D. Marketisation
A

C. Market segment

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24
Q 
24. Which of the following are the correct axes for stakeholder mapping?
A. Control/interest
B. Influence/interest
C. Power/interest
D. Process/interest
A

C. Power/interest

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25
Q 
25. Which of the following is not a method of strategy development?
A. Foreign direct investment
B. Strategic alliances
C. Mergers and acquisitions
D. Organic development
A

A. Foreign direct investment

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26
Q 
26. What term is used for two or more organisations sharing resources and
activities to pursue a strategy?
A. Acquisition
B. Alliance
C. Merger
D. Organizational get-together
A

B. Alliance

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27
Q
  1. What term is used for something that ‘creates substantial growth by offering
    a new performance trajectory that, even if initially inferior to the performance of
    existing technologies, has the potential to become markedly superior’?
    A. Sustaining innovation
    B. Disruptive innovation
    C. Platform launch
    D. Positioning option
A

B. Disruptive innovation

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28
Q
  1. Which of the following is least likely to be a contextual factor that might
    swing the balance between moving first to moving second?
    A. Buyer switching costs
    B. Capacity for profit capture
    5
    C. Fast-moving arenas
    D. Complementary assets
A

A. Buyer switching costs

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29
Q
  1. The four major players in a particular industry have all recently spent large
    sums reducing the environmental impact of their factories. What is the probable
    result of this on the competitive attractiveness of the industry for the players
    within it?
    A. The industry would be less attractive because costs of entry have increased.
    B. The industry would be more attractive because the bargaining power of
    suppliers has been reduced.
    C. The industry would be more attractive because costs of entry have increased.
    D. The industry would be less attractive because the threat of substitutes will
    have increased.
A

C. The industry would be more attractive because costs of entry have increased.

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30
Q
  1. The primary aim of Porter’s Five Forces framework is to answer which of the
    following questions?
    A. What do we know about the various forces?
    B. What influence can be exerted?
    C. Is the industry a good one to compete in or not?
    D. How are competitors differently affected?
A

C. Is the industry a good one to compete in or not?

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31
Q
  1. In recent decades, technologies in the aerospace industry have become
    more difficult to master and the products have become more complex. Which of
    the following best describes how a competitive force has changed as a result in
    this industry?
    A. Supplier power has decreased.
    B. The threat of entry has reduced.
    C. Buyer power has increased.
    D. The threat of substitutes has increased
    C. Tangible, intellectual capital
    D. Intangible, financial resources
A

B. The threat of entry has reduced.

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32
Q
  1. What term is used for an organisation’s abilities to renew and recreate its
    strategic capabilities to meet the needs of a changing environment?
    A. Core competence
    B. Competent substitution
    C. Renewability
    D. Dynamic capabilities
A

D. Dynamic capabilities

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33
Q
  1. What name is given to the purchase of components and services from the
    most appropriate suppliers around the world regardless of location?
    A. Multidomestic marketing
    B. International compartmentalisation
    C. The global–local dilemma
    D. Global sourcing
A

D. Global sourcing

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34
Q
  1. A competitor finds it difficult to identify the basis for an organisation’s
    competitive advantage. What term is used for this situation?
    A. Causal ambiguity
    B. Causal dependency
    C. Interdependent causality
    D. Ambiguous intercausality
A

A. Causal ambiguity

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35
Q
  1. The Royal Bank of Scotland’s consortium competed with Barclays Bank to
    acquire the Dutch bank ABN AMRO: the Royal Bank of Scotland won, but the
    excessive price of ‘70bn (~$98bn) soon drove the victor into financial collapse
    and government ownership. What term is used for this situation?
    A. Winner’s curse
    B. Excessibility
    C. Hubris
    D. Acquisition
A

A. Winner’s curse

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36
Q
  1. Which of the following best describes a ‘deliberate’ strategy?
    A. A strategic direction that emerges from a stream of decisions
    B. A strategy that is the product of competitive pressure
    C. An expression of desired strategic direction, intentionally formulated or
    planned by managers
    D. An expression of desired strategic direction deliberately formulated or
    planned by managers that is realised in the fullness of time
A

C. An expression of desired strategic direction, intentionally formulated or
planned by managers

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37
Q 
37. Which of the following is not a category in the BCG matrix?
A. Star
B. Cash cow
C. Question mark
D. Ballast
E. Dog
A

D. Ballast

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38
Q 
38. The QWERTY typewriter layout is an example of which of the following?
A. Recency bias
B. Transformational change
C. Path dependency
D. Strategic drift
A

C. Path dependency

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39
Q
  1. What name is given to the process of divulging information to outside bodies
    when a person believes that their organisation is failing in its corporate social
    responsibility?
    A. Showing enlightened self-interest
    B. Social auditing
    C. Whistle-blowing
    D. Legitimising
A

C. Whistle-blowing

40
Q 
40. What term is used for the process by which innovations spread among
users?
A. Market pull
B. Disruptive innovation
C. Entrepreneurism
D. Diffusion
A

D. Diffusion

41
Q 
41. In the Exploring Strategy Model, what heading is used to cover environment,
capability, goals and culture?
7
A. Strategic position
B. Strategy in action
C. Strategic applicability
D. Strategic choices
A

A. Strategic position

42
Q
  1. The experience lens suggests that strategies develop:
    A. through the shared assumptions across similar types of organisations within
    an industry (or organisational field).
    B. through the shared assumptions in the organisation, often thought of as the
    organisational culture.
    C. through the individual experience of a few top managers or strategic
    planners.
    D. All of the above.
A

D. All of the above.

43
Q
  1. Identification of what ‘helps managers to focus on the environmental factors
    that are most important and which must be addressed most urgently’?
    A. Five Forces
    B. Key drivers for change
    C. Scenarios
    D. PESTEL
A

B. Key drivers for change

44
Q
  1. What is defined as ’a group of customers who have similar needs that are
    different from customer needs in other parts of the market’?
    A. Customer grouping
    B. Market segment
    C. Marketisation
    D. Strategic group
A

B. Market segment

45
Q 
45. Which of the following is NOT part of Rumelt’s tests of Business Strategy?
A. Feasible
B. Consonant
C. Consistent
D. Evaluation
A

D. Evaluation

46
Q 
46. Which of the following is NOT an outcome of Hrebiniak & Joyce (1985)
environmental determinism framework?
A. Adaptation by design
B. Adaptation in situ
C. Adaptation within constraints
D. Adaptation by chance
A

B. Adaptation in situ

47
Q
  1. Which one of the following is not part of Bourgeois & Brodwin (1983)
    strategic implementation perspective on Leadership?
    A. Commander Approach
    8
    B. Change Approach
    D. Demand Approach
    C. Collaborative Approach
A

D. Demand Approach

48
Q
  1. One of the following is NOT a condition for achieving Cost Leadership AND
    Differentiation
    A. Innovation
    B. Competitors stuck in the middle
    C. Cost strongly affected by share / interrelationships
    D. Strategy optimization
A

D. Strategy optimization

49
Q 
49. Which of the following is NOT a cost driver?
A. Economies of scale
B. Value-added services
C. Economies of learning
D. Production techniques
A

B. Value-added services

50
Q 
50. Which of the following is NOT a differentiation driver?
A. Product features and performance
B. Value-added services
C. Intensity of marketing activity
D. Input cost
A

D. Input cost

51
Q
  1. Which of the following is NOT An outcome of Dunphy & Stace (1993)
    contingency based model change management?
    A. Evidential performance
    B. Dictatorial transformation
    C. Forced evolution
    D. Participative evolution
A

A. Evidential performance

52
Q 
52. Which of the following is NOT one of Bourgeois and Brodwin’s (1983)
approaches to strategy implementation?
A. Developmental approach
B. Commander Approach
C. Cultural approach
D. Crescive approach
A

A. Developmental approach

53
Q 
53. Managerial attempt to link emergent and deliberate is often referred to as:
A. Combinatorial approach
B. Logical incremantalism
C. Recombinant techchnology
D. Emergent-delibrate move
A

B. Logical incremantalism

54
Q 
54. Which of the following is NOT a critique of the linear model of strategy?
A. Fallacy of prediction
9
B. Fallacy of detachment
C. Fallacy of formalization
D. Fallacy of value creation
A

D. Fallacy of value creation

55
Q
  1. Which of the following is an outcome of the rationality, frictions and inertia
    associated with the linear model of strategy?
    A. Political support
    B. Creativity failure
    C. New product development
    D. Strategic foresight
A

B. Creativity failure

56
Q
  1. The linear model of strategy’s Emphasis on rationalization can lead to all the
    following except:
    A. Unqualified acceptance and misapplication of techniques for strategic analysis
    B. Professionalization of the planner’s job by making strategy a science
    C. Excessive emphasis on quantification for strategic decisions
    D. Logical incrementalism
A

D. Logical incrementalism

57
Q 
57. Which of the following school of strategy is NOT a prescriptive perspective on
strategy?
A. Configurational School
B. Design school
C. Planning school
D. Positioning school
A

A. Configurational School

58
Q 
58. Which of the following school of strategy is NOT classified as a descriptive
perspective on strategy?
A. Cognitive school
B. Planning school
C. Learning school
D. Entrepreneurial School
A

B. Planning school

59
Q 
59. Which of the following is NOT one of the 5Ps of strategy?
A. Strategy as plan
B. Strategy as pattern
C. Strategy as ploy
D. Strategy as panoptic
A

D. Strategy as panoptic

60
Q
  1. According to Barney (1991) resources are likely to provide a competitive
    advantage when they are Organized, valuable, inimitable and….
    A. Rare
    B. Reified
    C. Expensive
    D. Desirable
A

A. Rare

61
Q 
61. Machines, buildings, raw materials, databases, computer systems are
examples of…
A. Human resources
B. Physical resources
C. Intellectual resources
D. Financial resources
A

B. Physical resources

62
Q
  1. Which of the following is NOT a key criteria by which capabilities can be
    assessed in terms of providing a basis for achieving sustainable competitive
    advantage?
    A. Valuable
    B. Rare
    C. Inimitable
    D. Transferable
A

D. Transferable

63
Q 
63. Which of the following might lead to the inimitability of a strategic capability?
A. Causal ambiguity
B. strategic organizing
C. Economies of scale
D. Creative forecasting
A

A. Causal ambiguity

64
Q
  1. Which of the following is NOT a characteristic of a core competence?
    A. Provide distinctive consumer benefit
    B. Can be leveraged and alters boundaries of firms
    C. A critique of the strategy linear model
    D. Hard for competitors to imitate
A

C. A critique of the strategy linear model

65
Q
  1. Which of the following as argued by Leonard-Barton(1992) inhibit a firm’s
    ability to access and develop new capabilities?
    A. Core rigidities
    B. Core reductionism
    C. Core competences
    D. Core activities
A

A. Core rigidities

66
Q 
67. The more highly developed an organizations capabilities,…..
A. The narrower the repertoire
B. The broader the repertoire
C. The more lasting the repertoire
D. The more active the repertoire
A

A. The narrower the repertoire

67
Q 
68. Which of the following is an approach to developing capabilities?
A. Strategic alignment
B. Product sequencing
C. Proactive marketing
D. Investing in patents
A

B. Product sequencing

68
Q
  1. Which of the following is NOT a step in the framework for analysing
    resources and capabilities?
    A. Appraise the firm’s resources and capabilities
    B. Identify the firm’s resources and capabilities
    C. Explore the linkages between resources and capabilities
    D. Optimize resources and capabilities
A

D. Optimize resources and capabilities

69
Q
  1. In 2016, it emerged that previous research into emissions from diesel
    engines was flawed and that they were much worse for the environment than
    other types of engines. For firms associated with the production of diesel
    engines, this revelation is best described as an ….
    A.Weak signal
    B. Inflection point
    C. Megatrend
    D.Wild card
A

B. Inflection point

70
Q 
71. Due to uncertainty relating to Brexit, the pound is currently quite weak
against many other currencies. Which element of PESTEL would this most relate
to?
A. Political
B. Economic
12
C. Social
D. Technological
A

B. Economic

71
Q
  1. The advent of comparison websites for products such as car insurance has
    had the biggest impact on which element of Porter’s Five Forces framework
    A. Threat of new entrants
    B. Substitutes
    C. Rivalry
    D. Power of buyers
A

D. Power of buyers

72
Q
  1. In the “Strategic Capabilities” element of strategic positioning, a good
    example of causal ambiguity might be ….
    A. Where a car manufacturer has quality problems and it is hard to identify the
    root cause of the issues
    B. Where an insurer has low customer satisfaction and it is unclear what the
    reasons are behind it
    C. Where a telecoms company knows it has issues related to the PESTLE model,
    but is unsure which element is to blame
    D. Where a fashion retailer is successful but it is hard for others to understand
    how it gains its competitive advantage
A

D. Where a fashion retailer is successful but it is hard for others to understand
how it gains its competitive advantage

73
Q

74 Resources differ from competences in that ….
A. Resources are what we have, competences are what we do well
B. Resources are what we know, competences are what we would like to do well
C. Resources are what we have, competences are what we would like to do well
D. Resources are what we know, competences are what our competitors know

A

A. Resources are what we have, competences are what we do well

74
Q

75 One of the primary activities in Porter’s Value Chain is outbound logistics,
which involves ….
A. Anticipating, identifying, and satisfying customer requirements
B. Activities that enhance or maintain the value of a product or service
C. Warehousing and transport of products and services
D. Transforming inputs into final products and services

A

C. Warehousing and transport of products and services

75
Q
  1. KFC’s special mix of eleven herbs and spices may be thought of as being
    most closely associated with which element of Barney’s VRIO model?
    A. V
    B. R
    C. I
    D. O
A

C. I

76
Q
  1. 1Aldi is a German discount supermarket chains with over 10,000 stores in 20
    countries, & an estimated combined turnover of more than €50 billion. Which of
    Bowman’s routes best describes Aldi’s business approach?
    13
    A. Low price
    B. Hybrid
    C. Differentiation
    D. No frills
A

D. No frills

77
Q 
78. Which Generic Strategy best describes Sainsbury’s business approach?
A. Cost leadership
B. Differentiation
C. Cost focus
D. Differentiation focus
A

B. Differentiation

78
Q
  1. Using the case study, “The IKEA Approach”, which of the following best
    describes Ikea’s Generic Strategy ….
    A. Cost leadership & focus differentiation
    B. Differentiation & cost focus
    C. Cost leadership & differentiation
    D. Differentiation focus & cost focus
A

C. Cost leadership & differentiation

79
Q 
80. Which of the following is NOT likely to be a benefit of corporate parenting?
A. Coaching and Facilitating
B. Envisioning
C. Bureaucratic complexity
D. Providing central services
A

C. Bureaucratic complexity

80
Q
  1. Using the “Virgin – is the brand more than Richard Branson?” case study,
    which type of corporate parenting role best describes the Virgin Group?
    A. Portfolio manager
    B. Synergy manager
    C. Parental developer
    D. Appeaser
A

A. Portfolio manager

81
Q
  1. The concept of a “born global” firm is where ….
    A. A small firm internationalises rapidly at an early stage of its development
    B. A firm moves quickly through the various internationalisation modes by rolling out
    its unique capabilities worldwide
    C. A firm uses a sequential process to gradually increase its commitment to its newly
    entered overseas markets
    D. A firm relies on its trading partners worldwide rather than its own presence in
    overseas markets
A

A. A small firm internationalises rapidly at an early stage of its development

82
Q 
83. Which of the four international strategies is most likely to be difficult to
implement in practice?
A. An international strategy
B. A global strategy
C. A transnational strategy
D. A localisation strategy
A

C. A transnational strategy

83
Q
  1. The Japanese camera industry grew to be world-renowned due to the high
    expectations of consumers in the home market. Which element of Porter’s
    Diamond would this relate to?
    A. Firm strategy, structure and rivalry
    B. Factor Conditions
    C. Demand conditions
    D. Related and supporting industries
A

C. Demand conditions

84
Q
  1. What is the global/local dilemma?
    A. The extent to which local employees should be recruited or seconded from
    corporate HQ
    B. The extent to which products/services may be standardised across national
    boundaries or need to be adapted to suit local needs
    C. The extent to which marketing campaigns are budgeted for in the local or
    corporate parent’s currency
    D. The extent to which foreign exchange gains or losses arise from international
    transactions
A

B. The extent to which products/services may be standardised across national
boundaries or need to be adapted to suit local needs

85
Q
  1. Apple Inc. is an American technology company that designs & sells consumer
    electronics, software, & online services, employing 123,000 staff & earning $229
    billion in worldwide revenue in 2017. The approach taken by Apple to product
    development focuses primarily on ….
    A. Achieving first-mover advantage
    B. Achieving cost leadership
    C. Achieving maximum sales
    D. Achieving success through being a “follower”
A

A. Achieving first-mover advantage

86
Q
  1. Garmin & TomTom are well-known brands of stand-alone satellite navigation
    units for cars. However, the rapid development of equivalent smartphone apps
    has had a huge impact on their sales. The term given for this type of innovation
    is ….
    A. Displacement innovation
    B. Dysfunctional innovation
    C. Disjointed innovation
    D. Disruptive innovation
A

D. Disruptive innovation

87
Q 
88. Trial and error in strategy development is most associated with which of the
following approaches ….
A. Political processes
B. Logical incrementalism
C. Strategy as continuity
D. Organisational systems
A

B. Logical incrementalism

88
Q
  1. The common approaches to capability-building exclude
    A. Internal development
    B. Acquiring capabilities through mergers and acquisitions
    15
    C. Accessing capabilities via collaborative partnerships
    D. Buying from the capital market
A

D. Buying from the capital market

89
Q
  1. Accessing capabilities from an external source is to access them via
    collaborative partnership with suppliers, competitors or other companies having
    the cutting edge expertise. Which of the following is NOT one of the basic ways
    to pursue this course of action?
    A. Outsource the function requiring the capabilities to a key supplier or another
    provider
    B. Collaborate with a firm that has complementary resources and capabilities in
    a joint venture or strategic alliance
    C. Develop competitive intelligence system and engage in industrial espionage
    D. Engage in a collaborative partnership for the purpose of learning how the
    partner does things, internalizing its methods and thereby acquiring its
    capabilities
A

C. Develop competitive intelligence system and engage in industrial espionage

90
Q
  1. An organization becomes a prime candidate for diversifying under one of the
    following circumstances
    A. When it spots opportunities for expanding into industries whose technologies
    and products complements its present business
    B. When it cannot leverage its collection of resources and capabilities by
    expanding into businesses where these resources and capabilities are valuable
    assets
    C. When it does not have a powerful and well-known brand name that can be
    transferred to products of other business and use as a lever for driving up the
    sales and profits of such businesses
    D. When diversifying into other businesses does not open up avenues for
    reducing costs via cross business sharing or transfer of valuable assets.
A

A. When it spots opportunities for expanding into industries whose technologies
and products complements its present business

91
Q
  1. Which of the following is NOT one of Porter’s three tests for buying or selling
    off an SBU to improve shareholders value?
    A. Attractiveness test
    B. Better-off text
    C. Cost-of entry
    D. Portfolio entry test
A

D. Portfolio entry test

92
Q
  1. Which of the following is NOT a benefit of the M-Form
    A. Clearly removed executives responsible for the destiny of the organisation
    from the more routine operation
    B. Benefits of specialisation
    C. Improved organizational culture
    D. Corporate management can measure the performance of business units
    Individualism and autonomy
A

C. Improved organizational culture

93
Q
  1. All the following is a key indicator of industry attractiveness EXCEPT:
    16
    A. Social, Political, regulatory and environmental factors
    B. Seasonal and cyclical factors
    C. Industry profitability
    D. Business strategy
A

D. Business strategy

94
Q 
98 Which of the following is NOT a strategic option for internationalization,
diversification or innovation?
A. Strategic alliance
B. Mergers or acquisition
C. Resource based view
D. Organic development
A

C. Resource based view

95
Q

99 Which of the following is NOT a true about a strategic alliance?
A. Only two businesses can form a strategic alliance
B. It is a formal and mutually agreed commercial collaboration between
companies
C. The partners pool, exchange or integrate specific business resources
D. Businesses involved remain separate, making alliances distinct from mergers
and acquisitions

A

A. Only two businesses can form a strategic alliance

96
Q
  1. Strategic alliances have become more popular in recent years because of
    A. Increasing development costs and shorter product life-cycle
    B. It is a formal and mutually agreed commercial collaboration between
    companies
    C. companies racing to the bottom
    D. Managerial hubris
A

A. Increasing development costs and shorter product life-cycle

Strategic Management (1 decks)

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