Which of the following is not true about the harvesting or divestment of foreign operations?

Multiple Choice Questions

Chapter 1 - Introduction Strategy

Which of the following are typically seen as being associated with strategic decisions? A. The organisation's long-term direction B. The detailed planning of a department's work over the next month C. The values and expectations of powerful actors in the organisation D. The scope of the organisation's activities

Which strategy is about how to compete successfully in particular markets? A. Business-level strategy B. Corporate-level strategy C. Alliance-based strategy D. Operational-level strategy

A group of managers is considering pricing strategy and differentiation. At which level of strategy are the managers most likely to be working? A. Corporate level B. Operational level C. Business level D. Mission and vision

An organisation's general expression of its overall purpose is known as its: A. objective B. vision C. goal D. mission

Which of the following terms correctly complete the definition: Operational strategies are about how the component parts of an organisation deliver strategies in terms of _____ _____ and _____. A. people B. alliances C. mission D.

resources E. Processes

Strategy involves: A. senior managers and board members B. managers at all levels C. senior and middle managers D. senior management

What are the three main branches of strategy research that make up the study of strategy? A. Strategy content B. Strategic context C. Strategy lenses D. Strategy processes

In the Exploring Strategy Model, what heading is used to cover environment, capability, goals and culture? A. Strategic applicability B. Strategic choices C. Strategy in action D. Strategic position

A design view of strategy refers to: A. the pulling together of ideas that develop from different parts of the organisation. B. the pulling together of the different decisions made throughout an organisation, so as to develop a coherent overall strategy. C. the systematic, rational way in which strategy is always developed in an organisation. D. the deliberate positioning of the organisation through a rational, analytic, structured and directive process.

The experience lens suggests that strategies develop: A. through the shared assumptions in the organisation, often thought of as the organisational culture. B. through the shared assumptions across similar types of organisations within an industry (or organisational field). C. through the individual experience of a few top managers or strategic planners.

The five forces that affect the level of competition in an industry are: A. the threat of entry; the power of buyers; the power of suppliers; the threat of substitutes; and government action. B. the threat of buyers; the power of entry; the power of substitutes; the threat of suppliers; and the threat of recession. C. the threat of recession; the power of buyers; the power of suppliers; the threat of management failure; and competitive rivalry. D. the threat of entrants; the power of buyers; the power of suppliers; the threat of substitutes; and competitive rivalry.

In which of the following situations is buyer power likely to be high? A. Where switching costs are low B. Where ultimate consumer power is weak C. Where the buyer can threaten to compete D. Where a few large customers account for the majority of sales

Forward vertical integration occurs when suppliers are able to cut out buyers who act as intermediaries. A. True B. False

When identifying strategic groups, which two headings can the relevant characteristics most usefully be grouped under? A. Resource commitment B. Competitiveness C. Scope of activities D. PESTEL factors

A strategy canvas is a simple but useful way of comparing competitors' positions in a market and potential in different segments. What are the two key benefits of a strategy canvas? A. It emphasises the importance of technical quality. B. It demonstrates that focusing on market segments means losing the overall picture. C. It emphasises the importance of seeing value through the customers' eyes. D. It emphasises the need to be clear about relative strengths.

Chapter 3 – Strategic Capabilities

Which of the following accurately categorises the machines an organisation uses? A. Tangible, financial resources B. Intangible, financial resources C. Tangible, intellectual capital D. Tangible, physical resources

What term is used for an organisation's abilities to renew and recreate its strategic capabilities to meet the needs of a changing environment? A. Competent substitution B. Core competence C. Renewability D. Dynamic capabilities

Core competences are the skills and abilities by which resources are deployed through an organisation's activities and processes such as to: A. survive using approaches and techniques that others cannot imitate or obtain. B. survive. C. achieve competitive advantage in ways that others cannot imitate or obtain. D. achieve competitive advantage.

A competitor finds it difficult to identify the basis for an organisation's competitive advantage. What term is used for this situation? A. Interdependent causality B. Causal dependency C. Causal ambiguity D. Ambiguous intercausality

Which of the following statements correctly relate to explicit and tacit knowledge? A. A systems manual is an example of explicit knowledge. B. Tacit knowledge is easier to imitate. C. Explicit knowledge is easier to communicate. D. Tacit knowledge is personal, context-specific and therefore hard to communicate.

Investment managers are ultimately agents for the ultimate beneficiaries. C. Investment managers are agents for the board. D. The board is an agent for managers.

Which are the two most common types of governance structure? A. The non-executive board model B. The

manager–agent model

C.

The shareholder model D. The stakeholder model

Which of the following statements accurately relates to the stakeholder model of governance? A. Shareholders have a legitimate primacy in relation to the wealth generated by organisations. B. Boards attempt to consider the wishes of all stakeholders. C. All board members are insiders (typically managers of the company). D. Firms generally have a single-tier structure.

Which of the following are claimed to be advantages of the shareholder model of governance? A. Investors get higher returns than they would under the stakeholder model. B. There is a reduced risk for shareholders. C. Major investors are more likely to view their investments as being long term. D. There is a greater chance of entrepreneurship.

Which of the following is not a corporate social responsibility stance? A. Enlightened self-interest B. Free enterprise C. Laissez-faire D. Shaper of society E. Forum for stakeholder interaction

Which stance on corporate social responsibility would focus on social and market change, and give individuals in the organisation responsibility for social responsibility issues? A. Enlightened self-interest B. Forum for stakeholder interaction

C.

Laissez-faire D. Shaper of society

What name is given to the process of divulging information to outside bodies when a person believes that their organisation is failing in its corporate socialresponsibility? A. Showing enlightened self-interest B. Social auditing C. Legitimising D. Whistle-blowing

An indicator of the power held by external stakeholders is: A. the organisational perception of the status of an external party. B. the personal relationship with a key decision maker. C. mutual resource dependency. D. their negotiating skills.

Power is: A. the ability of individuals or groups to persuade, induce or coerce others into following certain courses of action. B. the ability of individuals or groups to persuade others into following certain courses of action. C. the ability of groups to persuade, induce or coerce others into following certain courses of action. D. the ability of individuals to persuade, induce or coerce others into following certain courses of action.

Which of the following is not one of the four broad categories of external stakeholders? A. Environmental B. Technological C. Economic D. Socio-political

Path dependency Which of the following is not a way of carrying out an historical strategic analysis? A. Rigidity analysis B. Historical narratives C. Cyclical influences D. Chronological analysis E. Key event and decision analysis ('anchor points')

Which approach to historical analysis would be most suitable for a manager wanting to assess an organisation's attitudes to markets, customers and change? A. Cyclical influences B. Anchor points C. Key events and decisions ('anchor points') D. Historical narratives

Which of the following is not one of the four layers of organisational culture? A. Values B. Beliefs C. Paradigm D. History

Which of the following best describes the cultural web? A. A representation of the politics in an organisation B. A representation of the power in an organisation C. A representation of the taken-for-granted assumptions, or paradigm, of an organisation and its competitors D. A representation of the taken-for-granted assumptions, or paradigm, of an organisation and the physical manifestations of the organisation culture

Which three of the following questions are most likely to be useful when analysing the cultural web of an organisation? A. Who are the heroes and villains? B. How is power distributed? C. How has the organisation been affected by strategic drift? D. Is emphasis on reward or punishment?

Which two of the following explain why the 'taken-for-granted' nature is centrally important in relation to strategy and the management of strategy? A. Because this inevitably means that the culture gives an inaccurate picture of the organisation B. Because the culture does not apply directly to managers C. Because organisations can be 'captured' by their culture and find it difficult to change their strategy outside that culture D. Because it is difficult to observe, identify and control, culture is difficult to manage

Organisational culture has largely been created by previous management actions and decisions, so can relatively easily be changed in the future. A. False B. True

'That approach was tried last year and failed.' Which two of the following apply to this statement? A. It is an example of a routine or ritual. B. It is an example of a rigid control system. C. It is an example of something that is taken for granted. D. This statement could only be made in a flat organisational structure.

When describing organisational culture some writers use phrases such as 'the way things are around here'. In relation to this comment, which of the following is the most useful task of strategists? A. To build a future based solely on the existing culture B. To investigate the taken-for-granted aspects of the culture C. To make changes in control systems so that the culture changes D. To make structural change so that the culture changes

Chapter 6 – Business Strategy

What is the key benefit of identifying the organisation's SBUs? A. It helps the development of business-level strategies. B. It makes financial control easier. C. It prevents a focus solely on market-based criteria. D. It decreases the complexity of the organisation's structures.

Which one of the following best explains the aim of collaboration? A. To achieve advantage B. To avoid competition C. Neither to achieve advantage nor to avoid competition D. To achieve advantage or avoid competition

Which of the following could be major benefits for a seller that collaborates with a major customer in a technological industry such as aerospace or carmanufacturing? A. It may enable joint research and development B. Increased seller power C. It increases the buyer's power D. It enables the customer to increase barriers to entry

Many governments have promoted, or required, collaboration between buyers of pharmaceuticals and centralised government drug-specifying agencies. What is the outcome of these moves? A. Greater sensitivity to end-user requirements B. Increased selling power C. Increased buyer power D. Greater barriers to entry

What are the two key assumptions in understanding competitive dynamics in terms of game theory? A. Competitors may opt to follow game rules of their own choosing. B. Competitors are in an interdependent relationship. C. Competitors approach business as though it was a game, so do not always behave rationally. D. Competitors will behave rationally in trying to win their own benefit.

Based on the two basic assumptions of game theory, which two principles guide the development of successful competitive strategies? A. 'Think forwards and reason backwards' B. 'Analyse forwards and think backwards' C. 'Get in the mind of the competitors' D. 'Assume that your competitor cannot get in your mind'

Consider the example of a company that is always battling on the basis of price, but realises that with its cost structure it cannot hope to compete effectively. What, according to game theory, should it do? A. Change the rules B. Avoid all collaboration C. Continue with current strategies, knowing that the competition will act irrationally D. Continue with its current strategies

Chapter 7 – Corporate Strategy and Diversification

What are the two constraints most likely to face organisations seeking greater market penetration? A. The risk of downsizing B. The need to consolidate market share C. Legal constraints D. Retaliation from competitors

In what three ways may market development take place? A. By focusing on new users This is the correct answer. B. By focusing on efficiency of production C. By focusing on new geographies D. By focusing on economies of scale

What term is used for corporate development beyond current products and markets, but within the capabilities or the value network of the organisation? A. Backward integration B. Related diversification C. Vertical integration D. Divergent diversification

Which two of the following are most likely to be sources of conglomerate value creation? A. Exploiting dominant logics rather than concrete operational relationships B. Divestment C. Entering markets of high risk D. Entering countries with underdeveloped markets

Which of the following definitions explains what is meant by the corporate parent? A. The central head office of the organisation B. The founder of the business C. The owner or major shareholder of the corporation D. The levels of management above that of business units

Which three of the following are the key criteria that should be considered in relation to a multi- business portfolio? A. Potential problems B. Attractiveness C. Balance D. Fit E. Synergy

A particular business unit operates in a low-growth, mature market, in which it has a large market share. What term is used in the BCG matrix for this business? A. Ballast B. Cash cow C. Star D. Harvest/divest

Chapter 8 - International Strategy

Which three of the following are categories of cost drivers of internationalisation? A. Scale economies B. Similar customer needs C. Country-specific differences D. Favourable logistics

Interdependence between country operations increases the pressure for global coordination. A. False B. True

Some brands, such as Coca-Cola, are able to successfully market in very similar ways around the world. What is this called? A. Global customisation B. Scope economies C. Transferable marketing D. Favourable logistics

Porter's Diamond has been used by governments aiming to increase the competitive advantage of their local industries. Which of the following are examples of this? A. Governments have encouraged competition rather than protect home-based industries. B. Governments have encouraged the growth of clusters of related industries. C. Governments have raised tariff barriers to protect local industries. D. Governments have encouraged the growth of industries previously unrepresented in the local economy.

Internationalisation is increasingly not about exploiting existing capabilities in new national markets. A. False B. True

What name is given to the purchase of components and services from the most appropriate suppliers around the world regardless of location? A. International compartmentalisation B. Multidomestic marketing C. Global sourcing D. The

global–local

dilemma

The global–local

dilemma in international strategy means: A. the issues related to globalisation and the alleged disadvantaging of developing countries. B. how many local people to employ in foreign subsidiaries. C. whether to centralise strategic decisions in head office or to devolve decision making to subsidiaries. D. the extent to which products and services may be standardised across national boundaries or need to be adapted to meet the requirements of specific national markets.

Which of the following statements correctly describe product or process innovation? A. Small new entrants typically have the greatest opportunity in the mature stage of an industry. B. Industries typically favour product innovation. C. Product innovation typically precedes process innovation. This is the correct answer. D. New developed industries typically favour product innovation.

What term is used for the process by which innovations spread among users, varying in pace and extent? A. The tipping point B. Incremental innovation C. Radical innovation D. Diffusion

Wherever possible, companies should aim to be first-movers. A. False B. True

Which of the following are likely to be late-mover advantages? A. Pre-emption of scarce resources B. Gaining experience curve benefits C. Learning D. Free-riding

Which of the following are the contextual factors that managers should consider when deciding whether to move first or not? A. The speed of change in the market B. The shape of the experience curve C. The organisation's capacity for profit capture D. The availability of complementary assets

Which of the following is most likely to be a key issue during the start-up stage? A. Releasing capital as a reward B. Changing to intrapreneurship C. Sources of capital D. Changing from the role of entrepreneur to manager

What name is given to people who set up a succession of enterprises, investing the capital raised on exit from an earlier venture into new growing ventures? A. Serial entrepreneurs B. Serial venturists C. Venture capitalists D. Intrapreneurs

Which of the following are included in the IBM ?ecosystem'? A. Franchisees B. Competitors C. Makers of complementary products D. Suppliers

Which three of the following are key issues that a social entrepreneur must consider at start-up? A. The development of ecosystems B. Business model C. Social mission D. Organisational form

Many social enterprises take on cooperative forms. What are the two main disadvantages of this form? A. Cooperatives can be slow to take hard decisions. This is the correct answer. B. It is difficult to keep financial records. C. It increases the number of levels in the hierarchy. D. It may be difficult to decide which stakeholders to include or exclude.

Kanter considers that there are benefits to business of involvement with social enterprise. Which of the following are among the specific benefits that Kanter identifies? A. Gaining first-entrant advantages in foreign markets B. Developing new technologies and services C. Attractive publicity D. A feel-good factor E. Accessing new pools of potential employees

Why do companies often make location decisions on one international opportunity at a time rather than comparing among more than one?

In which of the following situations would tax rate differences among countries be most important for deciding where to place an investment quizlet?

When planning International geographic expansion managers use scanning to________?

Which of the following is true about projected demographic changes up to the year 2050 that could affect future production and sales locations quizlet?