Strategic MGMT Exam Questions With
Correct Detailed Answers |Guaranteed
Pass> BRAND NEW VERSION!!
Which of the following is an integral part of the managerial process of crafting and
executing strategy? - Answer- setting objectives and using them as yardsticks for
measuring the company's performance and progress
The three tests for judging whether a particular diversification move can create value for
shareholders are the - Answer- attractiveness test, the cost-of-entry test, and the better-
off test.
In evaluating proposed or existing strategies, managers should - Answer- scrutinize the
company's existing strategies on a regular basis to ensure they offer a good strategic fit,
create a competitive advantage, and result in above-average performance.
With an unrelated diversification strategy, the types of companies that make particularly
attractive acquisition targets are - Answer- financially distressed companies with good
turnaround potential, undervalued companies that can be acquired at a bargain price,
and companies that have bright growth prospects but are short on investment capital.
Which of the following is not a market opportunity most relevant to a particular
company? - Answer- likely entry of potent new competitors
The target market of a best-cost provider is - Answer- value-conscious buyers.
The two most compelling reasons for a company to pursue vertical integration (either
forward or backward) are to - Answer- strengthen the company's competitive position
and/or boost its profitability.
The common types of valuable resources and competitive capabilities that management
should consider when crafting a strategy include - Answer- All of these choices are
correct.
If management is to match a company's organization structure to its strategy in an
effective way, then it is essential - Answer- for strategy-critical value-chain activities to
be the main building blocks on the organization chart.
Why should long-run objectives take precedence over short-run objectives? - Answer-
Long-run objectives are necessary for achieving long-term performance and stand as a
barrier to undue focus on short-term results.
, A company's resource weaknesses can relate to - Answer- All of these choices are
correct.
Driving forces analysis - Answer- involves identifying the driving forces, assessing
whether their impact will make the industry more or less attractive, and determining
what strategy changes a company may need to make to prepare for the impact of the
driving forces.
When expanding outside its domestic market, a company can gain competitive
advantage by - Answer- using location to lower costs or help achieve greater product
differentiation or using cross-border coordination in ways a domestic-only competitor
cannot.
The drawbacks of a localized multidomestic strategy include - Answer- hindering
transfer of a company's competencies and resources across country boundaries, and
hindering the pursuit of a single, uniform competitive advantage in all country markets
where a company operates.
A company's business model - Answer- relates to the principle business components
that will allow the business to generate revenues ample enough to cover costs and
produce a profit.
Once a company has decided to employ one of the five basic competitive strategies,
then it must also consider such additional strategic choices as - Answer- All of these
choices are correct.
It is normal for a company's strategy to end up being - Answer- a blend of deliberate
planned actions to improve the company's competitiveness and financial performance
and as-needed unplanned reactions to unanticipated developments and fresh market
conditions.
Identify and briefly discuss at least three obligations of a company's board of directors in
corporate governance and the strategy formulation, strategy execution process. -
Answer- (1) oversight over the company's financial accounting and financial reporting
practices; (2) oversight over and critique of the company's direction, strategy, and
business approaches; (3) evaluation of the caliber of senior executives' strategy
formulation and strategy execution skills;
Which one of the following is not a factor that makes it appealing to diversify into a new
industry by forming an internal start-up subsidiary to enter and compete in the target
industry? - Answer- when the industry is growing rapidly and the target industry is
comprised of several relatively large and well-established firms
According to integrative social contracts theory, the ethical standards a company should
try to uphold - Answer- are governed both by (1) a limited number of universal ethical
principles that are widely recognized as putting legitimate ethical boundaries on actions
Correct Detailed Answers |Guaranteed
Pass> BRAND NEW VERSION!!
Which of the following is an integral part of the managerial process of crafting and
executing strategy? - Answer- setting objectives and using them as yardsticks for
measuring the company's performance and progress
The three tests for judging whether a particular diversification move can create value for
shareholders are the - Answer- attractiveness test, the cost-of-entry test, and the better-
off test.
In evaluating proposed or existing strategies, managers should - Answer- scrutinize the
company's existing strategies on a regular basis to ensure they offer a good strategic fit,
create a competitive advantage, and result in above-average performance.
With an unrelated diversification strategy, the types of companies that make particularly
attractive acquisition targets are - Answer- financially distressed companies with good
turnaround potential, undervalued companies that can be acquired at a bargain price,
and companies that have bright growth prospects but are short on investment capital.
Which of the following is not a market opportunity most relevant to a particular
company? - Answer- likely entry of potent new competitors
The target market of a best-cost provider is - Answer- value-conscious buyers.
The two most compelling reasons for a company to pursue vertical integration (either
forward or backward) are to - Answer- strengthen the company's competitive position
and/or boost its profitability.
The common types of valuable resources and competitive capabilities that management
should consider when crafting a strategy include - Answer- All of these choices are
correct.
If management is to match a company's organization structure to its strategy in an
effective way, then it is essential - Answer- for strategy-critical value-chain activities to
be the main building blocks on the organization chart.
Why should long-run objectives take precedence over short-run objectives? - Answer-
Long-run objectives are necessary for achieving long-term performance and stand as a
barrier to undue focus on short-term results.
, A company's resource weaknesses can relate to - Answer- All of these choices are
correct.
Driving forces analysis - Answer- involves identifying the driving forces, assessing
whether their impact will make the industry more or less attractive, and determining
what strategy changes a company may need to make to prepare for the impact of the
driving forces.
When expanding outside its domestic market, a company can gain competitive
advantage by - Answer- using location to lower costs or help achieve greater product
differentiation or using cross-border coordination in ways a domestic-only competitor
cannot.
The drawbacks of a localized multidomestic strategy include - Answer- hindering
transfer of a company's competencies and resources across country boundaries, and
hindering the pursuit of a single, uniform competitive advantage in all country markets
where a company operates.
A company's business model - Answer- relates to the principle business components
that will allow the business to generate revenues ample enough to cover costs and
produce a profit.
Once a company has decided to employ one of the five basic competitive strategies,
then it must also consider such additional strategic choices as - Answer- All of these
choices are correct.
It is normal for a company's strategy to end up being - Answer- a blend of deliberate
planned actions to improve the company's competitiveness and financial performance
and as-needed unplanned reactions to unanticipated developments and fresh market
conditions.
Identify and briefly discuss at least three obligations of a company's board of directors in
corporate governance and the strategy formulation, strategy execution process. -
Answer- (1) oversight over the company's financial accounting and financial reporting
practices; (2) oversight over and critique of the company's direction, strategy, and
business approaches; (3) evaluation of the caliber of senior executives' strategy
formulation and strategy execution skills;
Which one of the following is not a factor that makes it appealing to diversify into a new
industry by forming an internal start-up subsidiary to enter and compete in the target
industry? - Answer- when the industry is growing rapidly and the target industry is
comprised of several relatively large and well-established firms
According to integrative social contracts theory, the ethical standards a company should
try to uphold - Answer- are governed both by (1) a limited number of universal ethical
principles that are widely recognized as putting legitimate ethical boundaries on actions
