GB 370 STUDY GUIDE 2025/2026 QUESTIONS AND
ANSWERS GRADED A+
✔✔the more difficult it is for other firms to enter a market, the more likely it is that
existing firms can make relatively high profit:
a) true
b) false - ✔✔a) true
✔✔the degree to which a stakeholder is affected by a firm's decisions is sometimes
correlated with their power and influence over the decision:
a) true
b) false - ✔✔a) true
✔✔within the strategic plans that are decided, divisional and business unit managers do
not have considerable freedom to adjust, adapt, and experiment:
a) true
b) false - ✔✔b) false
✔✔the best strategies, corporate, and business, are based on a thorough SWOT
analysis:
a) true
b) false - ✔✔a) true
✔✔compared with the industry environment, the general environment has a more direct
effect on the firm's strategic competitiveness and above average returns
a) true
b) false - ✔✔b) false
✔✔shareholders of a company frequently want different things such as Cap Gains,
dividends, and legitimate hiring practices:
a) true
b) false - ✔✔a) true
✔✔which of the following is not a condition or stakeholder force within the internal
environment of an organization?
a) board of directors
b) customers
c) employees
d) owners - ✔✔b) customers
✔✔the culture of an organization is very difficult to change:
a) true
b) false - ✔✔a) true
, ✔✔a stakeholder group, composed of the CEO and members of the top management,
is considered an important stakeholder group for all of the following reasons except:
a) its responsibility for formulation a strategy that realizes the mission and vision
b) its key role in strategy implementation
c) its power and influence in the organization
d) its influence as either originator or steward of the organization's mission and vision -
✔✔c) its power and influence in the organization
✔✔stakeholders are individuals, not groups:
a) true
b) false - ✔✔b) false
✔✔one of the main driving forces that influence organizational decisions is uncertainty:
a) true
b) false - ✔✔a) true
✔✔not all organizations need strategies to survive and thrive:
a) true
b) false - ✔✔b) false
✔✔the strong a supplier's power to an industry, the more likely it is that firms in the
industry will be able to force down prices and reduce the supplier's profits:
a) true
b) false - ✔✔b) false
✔✔owning resources which do not meet the VRIO test of value puts the firm at a
competitive advantage
a) true
b) false - ✔✔b) false
✔✔mission and vision both relate to an organization's purpose and typically
communicate orally:
a) true
b) false - ✔✔b) false
✔✔executive leaders do not play a large role in defining organizational culture
a) true
b) false - ✔✔b) false
✔✔where does strategy formulation fit within the POLC framework?
a) controlling
b) planning
c) organizing
d) leading - ✔✔b) planning
ANSWERS GRADED A+
✔✔the more difficult it is for other firms to enter a market, the more likely it is that
existing firms can make relatively high profit:
a) true
b) false - ✔✔a) true
✔✔the degree to which a stakeholder is affected by a firm's decisions is sometimes
correlated with their power and influence over the decision:
a) true
b) false - ✔✔a) true
✔✔within the strategic plans that are decided, divisional and business unit managers do
not have considerable freedom to adjust, adapt, and experiment:
a) true
b) false - ✔✔b) false
✔✔the best strategies, corporate, and business, are based on a thorough SWOT
analysis:
a) true
b) false - ✔✔a) true
✔✔compared with the industry environment, the general environment has a more direct
effect on the firm's strategic competitiveness and above average returns
a) true
b) false - ✔✔b) false
✔✔shareholders of a company frequently want different things such as Cap Gains,
dividends, and legitimate hiring practices:
a) true
b) false - ✔✔a) true
✔✔which of the following is not a condition or stakeholder force within the internal
environment of an organization?
a) board of directors
b) customers
c) employees
d) owners - ✔✔b) customers
✔✔the culture of an organization is very difficult to change:
a) true
b) false - ✔✔a) true
, ✔✔a stakeholder group, composed of the CEO and members of the top management,
is considered an important stakeholder group for all of the following reasons except:
a) its responsibility for formulation a strategy that realizes the mission and vision
b) its key role in strategy implementation
c) its power and influence in the organization
d) its influence as either originator or steward of the organization's mission and vision -
✔✔c) its power and influence in the organization
✔✔stakeholders are individuals, not groups:
a) true
b) false - ✔✔b) false
✔✔one of the main driving forces that influence organizational decisions is uncertainty:
a) true
b) false - ✔✔a) true
✔✔not all organizations need strategies to survive and thrive:
a) true
b) false - ✔✔b) false
✔✔the strong a supplier's power to an industry, the more likely it is that firms in the
industry will be able to force down prices and reduce the supplier's profits:
a) true
b) false - ✔✔b) false
✔✔owning resources which do not meet the VRIO test of value puts the firm at a
competitive advantage
a) true
b) false - ✔✔b) false
✔✔mission and vision both relate to an organization's purpose and typically
communicate orally:
a) true
b) false - ✔✔b) false
✔✔executive leaders do not play a large role in defining organizational culture
a) true
b) false - ✔✔b) false
✔✔where does strategy formulation fit within the POLC framework?
a) controlling
b) planning
c) organizing
d) leading - ✔✔b) planning
