TEST BANK Contemporary Strategy Analysis
90 questions and answers from all chapters
Robert M. Grant
9781394251599
12th edition 2024
Reading time: 40 min.
Pages: 13
Iv also added a few questions at the end which were on the actual exam
,Contents
Part 1: Introduction......................................................................................2
Part 2: Goals, Values, and Performance.......................................................3
Part 3: Industry Analysis..............................................................................4
Part 4: Further Topics in Industry Analysis...................................................4
Part 5: Resources and Capabilities..............................................................4
Part 6: Organization Structure and Management Systems..........................5
Part 7: Competitive Advantage....................................................................5
Part 8: Industry Evolution and Strategic Change.........................................6
Part 9: Technology-Based Industries and Innovation...................................6
Part 10: Vertical Integration and the Scope of the Firm...............................7
Part 11: Global Strategies and Multinational Corporations..........................8
Part 12: Diversification Strategies...............................................................8
Part 13: Managing Strategic Alliances.........................................................9
Part 14: Technology and Innovation Strategies...........................................9
Part 15: The Role of Corporate Governance..............................................10
Part 16: Strategic Leadership and Change................................................10
General Application Questions..................................................................11
Critical Thinking Questions........................................................................12
Additional Application Questions...............................................................12
Actual test questions that were on exam..................................................13
Part 1: Introduction
1. What are the four key elements of a successful strategy?
, o Clear, long-term goals, profound understanding of the external
environment, objective appraisal of resources, and effective
implementation.
2. What is 'strategic fit' in strategy analysis?
o The consistency of a firm's strategy with its internal and
external environment.
3. What is the contingency theory in strategy?
o It suggests that there is no single best way to organize or
manage; it depends on the circumstances.
4. Distinguish between corporate strategy and business
strategy.
o Corporate strategy focuses on where to compete (industries
and markets), while business strategy focuses on how to
compete within a specific market.
5. What is the difference between intended, realized, and
emergent strategies according to Mintzberg?
o Intended: Formulated by top management.
Realized: Implemented strategy (partially intended).
Emergent: Arises from decisions adapting to changing
circumstances.
Part 2: Goals, Values, and Performance
6. How can firms create value according to this Part?
o By production (transforming inputs into more valuable
outputs) or commerce (repositioning goods in space and
time).
7. What is the formula for value-added?
o Value Added = Sales revenue - Cost of material inputs.
8. What is economic profit?
o It is the surplus available after all inputs (including capital)
have been paid for, calculated as EVA = NOPAT - Cost of
capital.
9. What are the two main advantages of using economic profit
over accounting profit?
, o It enforces a higher performance discipline and improves
resource allocation between business units.
Part 3: Industry Analysis
10. What are the three key factors determining profits in
an industry?
o Value of the product to customers, intensity of competition,
and bargaining power of industry members.
11. List the five forces in Porter's Five Forces framework.
o Threat of new entrants, bargaining power of buyers,
bargaining power of suppliers, rivalry among existing
competitors, and threat of substitute products.
12. What are the key barriers to entry in an industry?
o Capital requirements, economies of scale, cost advantages,
product differentiation, distribution channel access, and legal
barriers.
Part 4: Further Topics in Industry Analysis
13. What is a complement in industry analysis?
o A product or service that increases the value of another
product (e.g., cars and gasoline).
14. What is hypercompetition?
o Intense and rapid competitive moves where firms quickly build
and erode competitive advantages.
15. What are Porter's four-part framework for predicting
competitor behavior?
o Competitor's strategy, objectives, assumptions about the
industry, and resources/capabilities.
Part 5: Resources and Capabilities
16. What are the three main types of resources?
o Tangible, intangible, and human resources.
17. What distinguishes core competencies?
90 questions and answers from all chapters
Robert M. Grant
9781394251599
12th edition 2024
Reading time: 40 min.
Pages: 13
Iv also added a few questions at the end which were on the actual exam
,Contents
Part 1: Introduction......................................................................................2
Part 2: Goals, Values, and Performance.......................................................3
Part 3: Industry Analysis..............................................................................4
Part 4: Further Topics in Industry Analysis...................................................4
Part 5: Resources and Capabilities..............................................................4
Part 6: Organization Structure and Management Systems..........................5
Part 7: Competitive Advantage....................................................................5
Part 8: Industry Evolution and Strategic Change.........................................6
Part 9: Technology-Based Industries and Innovation...................................6
Part 10: Vertical Integration and the Scope of the Firm...............................7
Part 11: Global Strategies and Multinational Corporations..........................8
Part 12: Diversification Strategies...............................................................8
Part 13: Managing Strategic Alliances.........................................................9
Part 14: Technology and Innovation Strategies...........................................9
Part 15: The Role of Corporate Governance..............................................10
Part 16: Strategic Leadership and Change................................................10
General Application Questions..................................................................11
Critical Thinking Questions........................................................................12
Additional Application Questions...............................................................12
Actual test questions that were on exam..................................................13
Part 1: Introduction
1. What are the four key elements of a successful strategy?
, o Clear, long-term goals, profound understanding of the external
environment, objective appraisal of resources, and effective
implementation.
2. What is 'strategic fit' in strategy analysis?
o The consistency of a firm's strategy with its internal and
external environment.
3. What is the contingency theory in strategy?
o It suggests that there is no single best way to organize or
manage; it depends on the circumstances.
4. Distinguish between corporate strategy and business
strategy.
o Corporate strategy focuses on where to compete (industries
and markets), while business strategy focuses on how to
compete within a specific market.
5. What is the difference between intended, realized, and
emergent strategies according to Mintzberg?
o Intended: Formulated by top management.
Realized: Implemented strategy (partially intended).
Emergent: Arises from decisions adapting to changing
circumstances.
Part 2: Goals, Values, and Performance
6. How can firms create value according to this Part?
o By production (transforming inputs into more valuable
outputs) or commerce (repositioning goods in space and
time).
7. What is the formula for value-added?
o Value Added = Sales revenue - Cost of material inputs.
8. What is economic profit?
o It is the surplus available after all inputs (including capital)
have been paid for, calculated as EVA = NOPAT - Cost of
capital.
9. What are the two main advantages of using economic profit
over accounting profit?
, o It enforces a higher performance discipline and improves
resource allocation between business units.
Part 3: Industry Analysis
10. What are the three key factors determining profits in
an industry?
o Value of the product to customers, intensity of competition,
and bargaining power of industry members.
11. List the five forces in Porter's Five Forces framework.
o Threat of new entrants, bargaining power of buyers,
bargaining power of suppliers, rivalry among existing
competitors, and threat of substitute products.
12. What are the key barriers to entry in an industry?
o Capital requirements, economies of scale, cost advantages,
product differentiation, distribution channel access, and legal
barriers.
Part 4: Further Topics in Industry Analysis
13. What is a complement in industry analysis?
o A product or service that increases the value of another
product (e.g., cars and gasoline).
14. What is hypercompetition?
o Intense and rapid competitive moves where firms quickly build
and erode competitive advantages.
15. What are Porter's four-part framework for predicting
competitor behavior?
o Competitor's strategy, objectives, assumptions about the
industry, and resources/capabilities.
Part 5: Resources and Capabilities
16. What are the three main types of resources?
o Tangible, intangible, and human resources.
17. What distinguishes core competencies?
