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Strategic Mgmt Exam Questions and
Answers
Offensive strategic moves involve all of the following except Ans:
blocking the avenues open to challengers
Bumble, a digital dating site where women make the first move,
specifically uses which strategic weapon in its offensive arsenal
Ans: pursuing disruptive product innovations to create new
markets
A blue-ocean strategy Ans: involves abandoning efforts to beat out
competitors in existing markets and instead invent a new industry
or new market segment that renders existing competitors largely
irrelevant and allows a company to create and capture altogether
new demand.
what is the goal of signaling a challenger that strong retaliation is
likely in the event of an attack Ans: to dissuade challenges from
attacking or diverting then into using less threatening options
first-mover advantages are unlikely to be present when Ans: rapid
market evolution due to face-paced changes in technology or
buyer preferences, presents opportunities to leapfrog a first-
movers products with more attractive next-version products
a difference between a merger and an acquisition is that Ans: a
merger is the combining of two or more companies into a single
corporate entity whereas an acquisition involves one company (the
acquirer) purchasing and absorbing he operations of another
company (the acquired)
Vertical Integration Strategy Ans: offer good potential to expand a
company's lineup of products and services
A strategic disadvantage of vertical integration is Ans: to impair a
company's flexibility in accommodating shifting buyer preferences
strategic alliances are Ans: collaborative formal arrangements
where two or more companies join forces and agree to work
cooperatively toward some strategically relevant objective
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if you were advising Hoffmann-LaRoche, which set up Roche
Partnering to manage more than 190 alliances in the healthcare
industry, what might not be a reason why some of those alliances
could prove to be unstable or break apart? Ans: a partner obtains
access to another partner's proprietary knowledge base,
technologies, or trade secrets
What does the scope of the firm refer to? Ans: The range of
activities the firm performs internally and the breadth of its
product offerings, the extent of its geographic market, and its mix
of businesses
Late-mover advantages (or first-mover disadvantages) are not
likely to arise when Ans: the costs of pioneering are much higher
than being a follower and only negligible learning/experience
benefits accrue to a pioneer
ExxonMobil enters into a pact with Gazprom, the worlds largest
natural gas extractor, to set up a processing unit in Baku,
Azerbaijan. Which of the following is most likely the reason for
ExxonMobil to opt for this strategic alliance? Ans: to gain access to
low-cost inputs of production
Crafting a strategy to compete in one or more foreign markets can
be considered complex because Ans: Because of the potential for
location-based advantages to conducting value chain activities in
certain countries.
One of the biggest strategic challenges to competing in the
international arena includes Ans: Whether to offer a standardized
product worldwide or a customized product offering in each
different country market
The difference between political risks and economic risks is that
Ans: Political risks stem from instability or weakness in national
governments, while economic risks stem from the stability of a
country's monetary system, and its economic and regulatory
policies.
The advantages of manufacturing goods in a particular country
and exporting them to foreign markets Ans: are weakened when
© 2025 All rights reserved
Strategic Mgmt Exam Questions and
Answers
Offensive strategic moves involve all of the following except Ans:
blocking the avenues open to challengers
Bumble, a digital dating site where women make the first move,
specifically uses which strategic weapon in its offensive arsenal
Ans: pursuing disruptive product innovations to create new
markets
A blue-ocean strategy Ans: involves abandoning efforts to beat out
competitors in existing markets and instead invent a new industry
or new market segment that renders existing competitors largely
irrelevant and allows a company to create and capture altogether
new demand.
what is the goal of signaling a challenger that strong retaliation is
likely in the event of an attack Ans: to dissuade challenges from
attacking or diverting then into using less threatening options
first-mover advantages are unlikely to be present when Ans: rapid
market evolution due to face-paced changes in technology or
buyer preferences, presents opportunities to leapfrog a first-
movers products with more attractive next-version products
a difference between a merger and an acquisition is that Ans: a
merger is the combining of two or more companies into a single
corporate entity whereas an acquisition involves one company (the
acquirer) purchasing and absorbing he operations of another
company (the acquired)
Vertical Integration Strategy Ans: offer good potential to expand a
company's lineup of products and services
A strategic disadvantage of vertical integration is Ans: to impair a
company's flexibility in accommodating shifting buyer preferences
strategic alliances are Ans: collaborative formal arrangements
where two or more companies join forces and agree to work
cooperatively toward some strategically relevant objective
© 2025 All rights reserved
, 2 | Page
if you were advising Hoffmann-LaRoche, which set up Roche
Partnering to manage more than 190 alliances in the healthcare
industry, what might not be a reason why some of those alliances
could prove to be unstable or break apart? Ans: a partner obtains
access to another partner's proprietary knowledge base,
technologies, or trade secrets
What does the scope of the firm refer to? Ans: The range of
activities the firm performs internally and the breadth of its
product offerings, the extent of its geographic market, and its mix
of businesses
Late-mover advantages (or first-mover disadvantages) are not
likely to arise when Ans: the costs of pioneering are much higher
than being a follower and only negligible learning/experience
benefits accrue to a pioneer
ExxonMobil enters into a pact with Gazprom, the worlds largest
natural gas extractor, to set up a processing unit in Baku,
Azerbaijan. Which of the following is most likely the reason for
ExxonMobil to opt for this strategic alliance? Ans: to gain access to
low-cost inputs of production
Crafting a strategy to compete in one or more foreign markets can
be considered complex because Ans: Because of the potential for
location-based advantages to conducting value chain activities in
certain countries.
One of the biggest strategic challenges to competing in the
international arena includes Ans: Whether to offer a standardized
product worldwide or a customized product offering in each
different country market
The difference between political risks and economic risks is that
Ans: Political risks stem from instability or weakness in national
governments, while economic risks stem from the stability of a
country's monetary system, and its economic and regulatory
policies.
The advantages of manufacturing goods in a particular country
and exporting them to foreign markets Ans: are weakened when
© 2025 All rights reserved
