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Multiple Choice QuestionsChapter 1 - Introduction StrategyWhich of the following are typically seen as being associated with strategic decisions? A. The organisation's long-term direction B. The detailed planning of a department's work over the next month C. The values and expectations of powerful a...

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Multiple Choice Questions Chapter 1 - Introduction Strategy Which of the following are typically seen as being associated with strategic decisions? A. The organisation's long-term direction B. The detailed planning of a department's work over the next month C. The values and expectations of powerful actors in the organisation D. The scope of the organisation's activities Which strategy is about how to compete successfully in particular markets? A. Business-level strategy B. Corporate-level strategy C. Alliance-based strategy D. Operational-level strategy

A group of managers is considering pricing strategy and differentiation. At which level of strategy are the managers most likely to be working? A. Corporate level B. Operational level C. Business level D. Mission and vision

An organisation's general expression of its overall purpose is known as its: A. objective B. vision C. goal D. mission Which of the following terms correctly complete the definition: Operational strategies are about how the component parts of an organisation deliver strategies in terms of _____ _____ and _____. A. people B. alliances C. mission D.

resources E. Processes

Strategy involves: A. senior managers and board members B. managers at all levels C. senior and middle managers D. senior management What are the three main branches of strategy research that make up the study of strategy? A. Strategy content B. Strategic context C. Strategy lenses D. Strategy processes

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

A design view of strategy refers to: A. the pulling together of ideas that develop from different parts of the organisation. B. the pulling together of the different decisions made throughout an organisation, so as to develop a coherent overall strategy. C. the systematic, rational way in which strategy is always developed in an organisation. D. the deliberate positioning of the organisation through a rational, analytic, structured and directive process. The experience lens suggests that strategies develop: A. through the shared assumptions in the organisation, often thought of as the organisational culture. B. through the shared assumptions across similar types of organisations within an industry (or organisational field). C. through the individual experience of a few top managers or strategic planners.

D. All of the above. The variety lens suggests that new strategies take shape in organisations: A. because new ideas are tried out in the market and either succeed or do not. B. because the new ideas that develop from within it are selected by formal evaluation through strategic planning systems. C. because there are sufficient people who find them attractive. D. All of the above

Chapter 2 – The Environment What is the key outcome from PESTEL analysis? A. Five Forces B. Identification of the drivers for change C. Critical success factors D. Possible scenarios When using PESTEL it is easy to get overwhelmed by a multitude of details. Instead, it is important to step back and identify the: A. key drivers for change B. relevant Five Forces that exist C. complex links between each of the factors D. market segments Which three of the following are the most useful ways in which a group of managers could use scenario planning? A. To consider plausible alternative futures B. To ensure that the managers always select the only scenario that will work in practice C. To develop contingency plans for each scenario D. To increase the managers' understanding and perception of forces in the business environment It is always useful to ensure that the three scenarios are 'optimistic', 'middling' and 'pessimistic'. A. False B. True

The five forces that affect the level of competition in an industry are: A. the threat of entry; the power of buyers; the power of suppliers; the threat of substitutes; and government action. B. the threat of buyers; the power of entry; the power of substitutes; the threat of suppliers; and the threat of recession. C. the threat of recession; the power of buyers; the power of suppliers; the threat of management failure; and competitive rivalry. D. the threat of entrants; the power of buyers; the power of suppliers; the threat of substitutes; and competitive rivalry. In which of the following situations is buyer power likely to be high? A. Where switching costs are low B. Where ultimate consumer power is weak C. Where the buyer can threaten to compete D. Where a few large customers account for the majority of sales

Forward vertical integration occurs when suppliers are able to cut out buyers who act as intermediaries. A. True B. False

When identifying strategic groups, which two headings can the relevant characteristics most usefully be grouped under? A. Resource commitment B. Competitiveness C. Scope of activities D. PESTEL factors

A strategy canvas is a simple but useful way of comparing competitors' positions in a market and potential in different segments. What are the two key benefits of a strategy canvas? A. It emphasises the importance of technical quality. B. It demonstrates that focusing on market segments means losing the overall picture. C. It emphasises the importance of seeing value through the customers' eyes. D. It emphasises the need to be clear about relative strengths.

Chapter 3 – Strategic Capabilities Which of the following accurately categorises the machines an organisation uses? A. Tangible, financial resources B. Intangible, financial resources C. Tangible, intellectual capital D. Tangible, physical resources

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. Competent substitution B. Core competence C. Renewability D. Dynamic capabilities

Core competences are the skills and abilities by which resources are deployed through an organisation's activities and processes such as to: A. survive using approaches and techniques that others cannot imitate or obtain. B. survive. C. achieve competitive advantage in ways that others cannot imitate or obtain. D. achieve competitive advantage.

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

Which of the following statements correctly relate to explicit and tacit knowledge? A. A systems manual is an example of explicit knowledge. B. Tacit knowledge is easier to imitate. C. Explicit knowledge is easier to communicate. D. Tacit knowledge is personal, context-specific and therefore hard to communicate.

The sharing of knowledge and experience in organisations is an essentially social and cultural process. A. False B. True

Which of the following statements correctly relate to value chains? A. Technology development is a primary activity. B. Marketing and sales is a support activity. C. Procurement is a support activity that occurs in many parts of the organisation. D. Operations are primary activities that transform inputs into the final product or service. The purpose of a SWOT analysis is to analyse: A. the strategic capability of an organisation. B. external and internal environments. C. the business environment and the strategic capability of an organisation relative to its competitors. D. the business environment in which an organisation operates.

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

Chapter 4 - Strategic Purpose Which of the following answers the question: 'Where does the organisation aspire to be in the future?' A. Mission statement B. Core values C. Vision statement D. Objectives

Which two statements accurately describe relationships that exist in a large company? A. The board is an agent for investment managers. B.

Investment managers are ultimately agents for the ultimate beneficiaries. C. Investment managers are agents for the board. D. The board is an agent for managers.

Which are the two most common types of governance structure? A. The non-executive board model B. The manager–agent model C. The shareholder model D. The stakeholder model

Which of the following statements accurately relates to the stakeholder model of governance? A. Shareholders have a legitimate primacy in relation to the wealth generated by organisations. B. Boards attempt to consider the wishes of all stakeholders. C. All board members are insiders (typically managers of the company). D. Firms generally have a single-tier structure. Which of the following are claimed to be advantages of the shareholder model of governance? A. Investors get higher returns than they would under the stakeholder model. B. There is a reduced risk for shareholders. C. Major investors are more likely to view their investments as being long term. D. There is a greater chance of entrepreneurship.

Which of the following is not a corporate social responsibility stance? A. Enlightened self-interest B. Free enterprise C. Laissez-faire D. Shaper of society E. Forum for stakeholder interaction Which stance on corporate social responsibility would focus on social and market change, and give individuals in the organisation responsibility for social responsibility issues? A. Enlightened self-interest B. Forum for stakeholder interaction

C. Laissez-faire D. Shaper of society 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 socialresponsibility? A. Showing enlightened self-interest B. Social auditing C. Legitimising D. Whistle-blowing An indicator of the power held by external stakeholders is: A. the organisational perception of the status of an external party. B. the personal relationship with a key decision maker. C. mutual resource dependency. D. their negotiating skills.

Power is: A. the ability of individuals or groups to persuade, induce or coerce others into following certain courses of action. B. the ability of individuals or groups to persuade others into following certain courses of action. C. the ability of groups to persuade, induce or coerce others into following certain courses of action. D. the ability of individuals to persuade, induce or coerce others into following certain courses of action.

Which of the following is not one of the four broad categories of external stakeholders? A. Environmental B. Technological C. Economic D. Socio-political

Chapter 5 – Culture and Strategy In many businesses there are periods of relative continuity during which strategy changes incrementally. What are the three main reasons for this? A. By maintaining continuity during a period of environmental change, managers can ensure growth. B. Managers are experimenting around a theme. C. Managers are unwilling to change a strategy that has been successful. D. The environment is changing gradually. Identify two reasons for the development of core rigidities that make it difficult for organisations to change. A. Relationships are crucial to the change process. B. Organisational practices are developed over time. These practices may become embedded in organisational routines that are difficult to change. C. The methods that have delivered past success can become taken for granted. D. Performance effects lag the development of core techniques.

Which of the following accurately relate to transformational change? A. It is usually the result of a downturn in performance. B. It often occurs too early to result in an improvement in market position or jobs. C. It does not take place frequently. D. It generally occurs in response to changes suggested by existing middle management. Which of the following are reasons why the history of the organisation is important for strategists? A. It helps detect and avoid strategic drift. B. It avoids misattributing the reasons for success. C. It focuses the manager purely on the relevant organisation. D. It avoids the recency bias.

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. Historicisation B. Strategic drift C. Cyclical strategy D.

Path dependency Which of the following is not a way of carrying out an historical strategic analysis? A. Rigidity analysis B. Historical narratives C. Cyclical influences D. Chronological analysis E. Key event and decision analysis ('anchor points') Which approach to historical analysis would be most suitable for a manager wanting to assess an organisation's attitudes to markets, customers and change? A. Cyclical influences B. Anchor points C. Key events and decisions ('anchor points') D. Historical narratives Which of the following is not one of the four layers of organisational culture? A. Values B. Beliefs C. Paradigm D. History

Which of the following best describes the cultural web? A. A representation of the politics in an organisation B. A representation of the power in an organisation C. A representation of the taken-for-granted assumptions, or paradigm, of an organisation and its competitors D. A representation of the taken-for-granted assumptions, or paradigm, of an organisation and the physical manifestations of the organisation culture Which three of the following questions are most likely to be useful when analysing the cultural web of an organisation? A. Who are the heroes and villains? B. How is power distributed? C. How has the organisation been affected by strategic drift? D. Is emphasis on reward or punishment?

Which two of the following explain why the 'taken-for-granted' nature is centrally important in relation to strategy and the management of strategy? A. Because this inevitably means that the culture gives an inaccurate picture of the organisation B. Because the culture does not apply directly to managers C. Because organisations can be 'captured' by their culture and find it difficult to change their strategy outside that culture D. Because it is difficult to observe, identify and control, culture is difficult to manage Organisational culture has largely been created by previous management actions and decisions, so can relatively easily be changed in the future. A. False B. True 'That approach was tried last year and failed.' Which two of the following apply to this statement? A. It is an example of a routine or ritual. B. It is an example of a rigid control system. C. It is an example of something that is taken for granted. D. This statement could only be made in a flat organisational structure.

When describing organisational culture some writers use phrases such as 'the way things are around here'. In relation to this comment, which of the following is the most useful task of strategists? A. To build a future based solely on the existing culture B. To investigate the taken-for-granted aspects of the culture C. To make changes in control systems so that the culture changes D. To make structural change so that the culture changes

Chapter 6 – Business Strategy What is the key benefit of identifying the organisation's SBUs? A. It helps the development of business-level strategies. B. It makes financial control easier. C. It prevents a focus solely on market-based criteria. D. It decreases the complexity of the organisation's structures.

Which of the following are generally used when identifying SBUs? A. Market-based criteria B. Structurally-based criteria C. Capabilities-based criteria D. Finance-based criteria What is meant by focused differentiation? A. Providing a high perceived value service or product to a selected market segment that justifies a substantial price premium B. Simultaneously seeking to achieve differentiation and a price lower than that of competitors C. Concentrating on a particular feature of a product or service to achieve differentiation D. Concentrating on differentiation as the primary means of achieving competitive advantage

A differentiation strategy is defined as: A. the provision of products or services that offer benefits different from those of competitors and that are widely valued by buyers. B. the innovation of products or services greater than the competition. C. higher quality products or services than those of competitors. D. the provision of different products or services that draw upon competences or resources which competitors do not have. How might an organisation sustain and win a price war? A. By cross-subsidising one business from another B. By having 'deeper pockets' to fund short- to medium-term losses C. By having a lower cost structure D. All of the above

Which of the following are key principles for successful competition in hypercompetitive conditions? A. Misleading the competition B. Maintaining constant strategies C. Developing new bases of success D. Making a series of small moves (rather than big moves) This is the correct answer. E. Being unpredictable

Which one of the following best explains the aim of collaboration? A. To achieve advantage B. To avoid competition C. Neither to achieve advantage nor to avoid competition D. To achieve advantage or avoid competition

Which of the following could be major benefits for a seller that collaborates with a major customer in a technological industry such as aerospace or carmanufacturing? A. It may enable joint research and development B. Increased seller power C. It increases the buyer's power D. It enables the customer to increase barriers to entry

Many governments have promoted, or required, collaboration between buyers of pharmaceuticals and centralised government drug-specifying agencies. What is the outcome of these moves? A. Greater sensitivity to end-user requirements B. Increased selling power C. Increased buyer power D. Greater barriers to entry

What are the two key assumptions in understanding competitive dynamics in terms of game theory? A. Competitors may opt to follow game rules of their own choosing. B. Competitors are in an interdependent relationship. C. Competitors approach business as though it was a game, so do not always behave rationally. D. Competitors will behave rationally in trying to win their own benefit. Based on the two basic assumptions of game theory, which two principles guide the development of successful competitive strategies? A. 'Think forwards and reason backwards' B. 'Analyse forwards and think backwards' C. 'Get in the mind of the competitors' D. 'Assume that your competitor cannot get in your mind'

Consider the example of a company that is always battling on the basis of price, but realises that with its cost structure it cannot hope to compete effectively. What, according to game theory, should it do? A. Change the rules B. Avoid all collaboration C. Continue with current strategies, knowing that the competition will act irrationally D. Continue with its current strategies

Chapter 7 – Corporate Strategy and Diversification What are the two constraints most likely to face organisations seeking greater market penetration? A. The risk of downsizing B. The need to consolidate market share C. Legal constraints D. Retaliation from competitors

In what three ways may market development take place? A. By focusing on new users This is the correct answer. B. By focusing on efficiency of production C. By focusing on new geographies D. By focusing on economies of scale What term is used for corporate development beyond current products and markets, but within the capabilities or the value network of the organisation? A. Backward...