CWRU PLCY 399 FINAL Exam Questions
And Answers
Which of the following stages of the strategic management process involves an evaluation of a
firm's external and internal environments?
A. strategy analysis
B. strategy implementation
C. strategy formulation
D. strategy control - ANS strategy analysis
A firm that achieves superior performance relative to other firms in the same industry or the
industry average has a(n)
A. competitive advantage.
B. balanced scorecard.
C. power position.
D. equity leverage - ANS competitive advantage
Patterson Foods Inc. was the first company to start selling energy bars in its country—a product
that gained popularity among diverse groups. Soon, other companies started to sell their own
brands of energy bars, thereby giving Patterson Foods ample competition. In response,
Patterson Foods decided to limit its variety of energy bars to only four. However, it ensured that
these four varieties were low in calories and low in cost. With this innovation, Patterson Foods
Inc. consistently outperformed its competitors for ten years. In this scenario, Patterson Foods
Inc. maintained a _____ through its innovative strategy.
A. balanced scorecard
B. fiduciary responsibility
C. consistent power position
D. sustainable competitive advantage - ANS sustainable competitive advantage
The Scoop, Ltd. is a magazine publishing company whose average return on invested capital is
approximately 5 percent. Because magazine publishing is a declining industry, the industry
average has been negative (-5 percent) for the last few years. In this scenario, The Scoop Ltd.
has a
A. competitive advantage.
B. balanced scorecard.
C. competitive disadvantage.
D. power position. - ANS competitive advantage
,For a firm that operates in an industry where competition is high, which of the following practices
will result in inferior performance?
A. choosing a distinct but different strategic position in the industry
B. working toward increasing the difference between value creation and cost
C. trying to be everything to everybody by combining different competitive strategies
D. focusing on creating value for customers rather than destroying rivals - ANS trying to be
everything to everybody by combining different competitive strategies
If a company wants to gain a competitive advantage in a highly competitive industry, it should
ideally
A. execute an integrated cost-leadership and differentiation position.
B. copy the strategies of other firms through competitive benchmarking.
C. provide goods or services similar to its competitors at higher prices.
D. stake out a unique position within the industry. - ANS stake out a unique position within
the industry.
Which of the following statements should ideally reflect a firm's strategy for competitive
advantage?
A. Our strategy is to win at any cost.
B. We will be number one in the industry.
C. Our aim is to create superior customer value while controlling costs.
D. We want to be the market leader by replicating our competitor's strategy. - ANS Our aim
is to create superior customer value while controlling costs.
Which of the following factors most effectively contributed to the success of Threadless in
comparison to other companies with T-shirt designs, including American Eagle, Old Navy, and
Urban Outfitters?
A. its reliance on crowdsourcing
B. its point-to-point business model
C. its hub-and-spoke system
D. its shorter distances - ANS its reliance on crowdsourcing
Which of the following is not an example of a software company's external stakeholder?
A. creditors
B. customers
C. alliance partners
D. project managers - ANS project managers
A core tenet of stakeholder strategy is that a
A. firm should isolate its internal stakeholders from its external stakeholders.
B. single-minded focus on shareholders alone exposes a firm to undue risks that can threaten
the very survival of the enterprise.
C. multifaceted exchange relationship with internal and external stakeholders can lead to a
firm's competitive disadvantage.
, D. firm should work toward competitive parity rather than gaining and sustaining a competitive
advantage. - ANS single-minded focus on shareholders alone exposes a firm to undue
risks that can threaten the very survival of the enterprise.
Which of the following would be considered a weak stakeholder strategy?
A. putting shareholder interests above the interests of other stakeholders
B. addressing the concerns of all stakeholders, including employees
C. always using fair and ethical practices to satisfy stakeholders
D. ensuring that the primary stakeholders achieve their objectives - ANS putting
shareholder interests above the interests of other stakeholders
Which of the following statements is true of the social responsibilities of a business?
A. A firm's ethical responsibilities go beyond its legal responsibilities.
B. Shareholders mandatorily require a firm to perform its ethical and philanthropic
responsibilities.
C. Ethical responsibilities are the foundational building block of a firm's social responsibility.
D. Legal responsibilities are often subsumed under the idea of corporate citizenship, reflecting
the notion of voluntarily giving back to society. - ANS A firm's ethical responsibilities go
beyond its legal responsibilities.
According to AFI strategy framework, in which of the following tasks of strategic management is
a firm's vision, mission, and values identified?
A. strategy control
B. strategy analysis
C. strategy formulation
D. strategy implementation - ANS strategy analysis
Which of the following is an accurate statement about the relationship between firm effects and
industry effects?
A. Firm effects deal with the action of competitors; industry effects deal with internal
circumstances.
B. Firm effects deal with a manager's actions; industry effects deal with external circumstances.
C. Firm effects deal with a manager's actions; industry effects deal with internal circumstances.
D. Firm effects deal with the action of competitors; industry effects deal with external
circumstances. - ANS B. Firm effects deal with a manager's actions; industry effects deal
with external circumstances.
While creating its AFI strategy framework, the Kowalski Candy Company decided what markets
the firm should compete in. By doing this, what type of strategy did the company devise?
A. business strategy
B. corporate strategy
C. global strategy
D. ethical strategy - ANS corporate strategy
, Free Winds, Inc. is a company that manufactures a variety of generators that run on wind
power. The company wants to ensure that wind technology replaces all forms of exhaustible
energy sources in the near future. Which of the following statements will make an accurate
vision for Free Winds?
A. We make products that run on wind energy.
B. All nations around the globe should have access to a sustainable energy source.
C. The company aims to make working fun and pleasurable for its employees.
D. We provide energy-efficient sources and services by investing in research and innovation. -
ANS All nations around the globe should have access to a sustainable energy source.
What is the strategic management process?
A. The CEO decides who the product managers will be for a company.
B. The CEO defined the main problems facing a company.
C. Strategic leaders design a method to formulate and implement strategy.
D. Strategic leaders focus on creating a vision that reflects the company's strategy. - ANS
Strategic leaders design a method to formulate and implement strategy.
A customer-oriented vision statement focuses employees to think about how best to
A. make a product easier to use.
B. increase their efficiency for consumers.
C. improve a popular product.
D. solve a problem for a consumer. - ANS solve a problem for a consumer.
Why is it better for firms to keep their vision statements customer-oriented rather than
product-oriented?
A. Customer-oriented visions tend to have a more short-range view of changing environments.
B. Customer-oriented visions tend to have a more myopic view of changing environments.
C. Customer-oriented visions tend to be more flexible when adapting to changing
environments.
D.Customer-oriented visions tend to be more stable when dealing with changing environments.
- ANS Customer-oriented visions tend to be more flexible when adapting to changing
environments.
Which of the following is a customer-oriented vision?
A. to be the most progressive insurance company
B. to be the best automobile company in the world
C. to enable people throughout the globe to identify their capabilities
D. to manufacture innovative products through continuous learning - ANS to enable
people throughout the globe to identify their capabilities
_____ are best described as the ethical standards and norms that govern the behavior of
individuals within a firm.
A. Job descriptions
B. Customs duties
And Answers
Which of the following stages of the strategic management process involves an evaluation of a
firm's external and internal environments?
A. strategy analysis
B. strategy implementation
C. strategy formulation
D. strategy control - ANS strategy analysis
A firm that achieves superior performance relative to other firms in the same industry or the
industry average has a(n)
A. competitive advantage.
B. balanced scorecard.
C. power position.
D. equity leverage - ANS competitive advantage
Patterson Foods Inc. was the first company to start selling energy bars in its country—a product
that gained popularity among diverse groups. Soon, other companies started to sell their own
brands of energy bars, thereby giving Patterson Foods ample competition. In response,
Patterson Foods decided to limit its variety of energy bars to only four. However, it ensured that
these four varieties were low in calories and low in cost. With this innovation, Patterson Foods
Inc. consistently outperformed its competitors for ten years. In this scenario, Patterson Foods
Inc. maintained a _____ through its innovative strategy.
A. balanced scorecard
B. fiduciary responsibility
C. consistent power position
D. sustainable competitive advantage - ANS sustainable competitive advantage
The Scoop, Ltd. is a magazine publishing company whose average return on invested capital is
approximately 5 percent. Because magazine publishing is a declining industry, the industry
average has been negative (-5 percent) for the last few years. In this scenario, The Scoop Ltd.
has a
A. competitive advantage.
B. balanced scorecard.
C. competitive disadvantage.
D. power position. - ANS competitive advantage
,For a firm that operates in an industry where competition is high, which of the following practices
will result in inferior performance?
A. choosing a distinct but different strategic position in the industry
B. working toward increasing the difference between value creation and cost
C. trying to be everything to everybody by combining different competitive strategies
D. focusing on creating value for customers rather than destroying rivals - ANS trying to be
everything to everybody by combining different competitive strategies
If a company wants to gain a competitive advantage in a highly competitive industry, it should
ideally
A. execute an integrated cost-leadership and differentiation position.
B. copy the strategies of other firms through competitive benchmarking.
C. provide goods or services similar to its competitors at higher prices.
D. stake out a unique position within the industry. - ANS stake out a unique position within
the industry.
Which of the following statements should ideally reflect a firm's strategy for competitive
advantage?
A. Our strategy is to win at any cost.
B. We will be number one in the industry.
C. Our aim is to create superior customer value while controlling costs.
D. We want to be the market leader by replicating our competitor's strategy. - ANS Our aim
is to create superior customer value while controlling costs.
Which of the following factors most effectively contributed to the success of Threadless in
comparison to other companies with T-shirt designs, including American Eagle, Old Navy, and
Urban Outfitters?
A. its reliance on crowdsourcing
B. its point-to-point business model
C. its hub-and-spoke system
D. its shorter distances - ANS its reliance on crowdsourcing
Which of the following is not an example of a software company's external stakeholder?
A. creditors
B. customers
C. alliance partners
D. project managers - ANS project managers
A core tenet of stakeholder strategy is that a
A. firm should isolate its internal stakeholders from its external stakeholders.
B. single-minded focus on shareholders alone exposes a firm to undue risks that can threaten
the very survival of the enterprise.
C. multifaceted exchange relationship with internal and external stakeholders can lead to a
firm's competitive disadvantage.
, D. firm should work toward competitive parity rather than gaining and sustaining a competitive
advantage. - ANS single-minded focus on shareholders alone exposes a firm to undue
risks that can threaten the very survival of the enterprise.
Which of the following would be considered a weak stakeholder strategy?
A. putting shareholder interests above the interests of other stakeholders
B. addressing the concerns of all stakeholders, including employees
C. always using fair and ethical practices to satisfy stakeholders
D. ensuring that the primary stakeholders achieve their objectives - ANS putting
shareholder interests above the interests of other stakeholders
Which of the following statements is true of the social responsibilities of a business?
A. A firm's ethical responsibilities go beyond its legal responsibilities.
B. Shareholders mandatorily require a firm to perform its ethical and philanthropic
responsibilities.
C. Ethical responsibilities are the foundational building block of a firm's social responsibility.
D. Legal responsibilities are often subsumed under the idea of corporate citizenship, reflecting
the notion of voluntarily giving back to society. - ANS A firm's ethical responsibilities go
beyond its legal responsibilities.
According to AFI strategy framework, in which of the following tasks of strategic management is
a firm's vision, mission, and values identified?
A. strategy control
B. strategy analysis
C. strategy formulation
D. strategy implementation - ANS strategy analysis
Which of the following is an accurate statement about the relationship between firm effects and
industry effects?
A. Firm effects deal with the action of competitors; industry effects deal with internal
circumstances.
B. Firm effects deal with a manager's actions; industry effects deal with external circumstances.
C. Firm effects deal with a manager's actions; industry effects deal with internal circumstances.
D. Firm effects deal with the action of competitors; industry effects deal with external
circumstances. - ANS B. Firm effects deal with a manager's actions; industry effects deal
with external circumstances.
While creating its AFI strategy framework, the Kowalski Candy Company decided what markets
the firm should compete in. By doing this, what type of strategy did the company devise?
A. business strategy
B. corporate strategy
C. global strategy
D. ethical strategy - ANS corporate strategy
, Free Winds, Inc. is a company that manufactures a variety of generators that run on wind
power. The company wants to ensure that wind technology replaces all forms of exhaustible
energy sources in the near future. Which of the following statements will make an accurate
vision for Free Winds?
A. We make products that run on wind energy.
B. All nations around the globe should have access to a sustainable energy source.
C. The company aims to make working fun and pleasurable for its employees.
D. We provide energy-efficient sources and services by investing in research and innovation. -
ANS All nations around the globe should have access to a sustainable energy source.
What is the strategic management process?
A. The CEO decides who the product managers will be for a company.
B. The CEO defined the main problems facing a company.
C. Strategic leaders design a method to formulate and implement strategy.
D. Strategic leaders focus on creating a vision that reflects the company's strategy. - ANS
Strategic leaders design a method to formulate and implement strategy.
A customer-oriented vision statement focuses employees to think about how best to
A. make a product easier to use.
B. increase their efficiency for consumers.
C. improve a popular product.
D. solve a problem for a consumer. - ANS solve a problem for a consumer.
Why is it better for firms to keep their vision statements customer-oriented rather than
product-oriented?
A. Customer-oriented visions tend to have a more short-range view of changing environments.
B. Customer-oriented visions tend to have a more myopic view of changing environments.
C. Customer-oriented visions tend to be more flexible when adapting to changing
environments.
D.Customer-oriented visions tend to be more stable when dealing with changing environments.
- ANS Customer-oriented visions tend to be more flexible when adapting to changing
environments.
Which of the following is a customer-oriented vision?
A. to be the most progressive insurance company
B. to be the best automobile company in the world
C. to enable people throughout the globe to identify their capabilities
D. to manufacture innovative products through continuous learning - ANS to enable
people throughout the globe to identify their capabilities
_____ are best described as the ethical standards and norms that govern the behavior of
individuals within a firm.
A. Job descriptions
B. Customs duties
