INTERNATIONAL BURCH UNIVERSITY
FACULTY OF ECONOMICS
DEPARTMENT OF MANAGEMENT
STRATEGIC MANAGEMENT
GRADE :......
FINAL EXAM QUESTIONS
Duration: 90 minutes January 8, 2010
a) Answer the questions.
1) Compare the varying degrees of competition.
2) Explain Mintzberg's generic competitive strategies.
3) Describe the skills and resources needed for overall cost leadership.
4) What are the costs of vertical integration?
5) How are mergers different from acquisitions?
6) What are the possible causes of corporate decline?
7) What are some recommendations for handling downsizing strategies?
b) Give a summary of your presentation in 25 to 30 sentences!
1) Coca-Cola is a ______organization and PepsiCo is an example of a ______organization.
A) multiple-business; single-business
B) single-business; multiple-business
C) multiple-business; multiple-business
D) All of the answer choices are correct.
E) None of the answer choices is correct.
2) Developing different uses for a product is an example of a ______concentration option.
A) product-market diversification.
B) market development
C) product-market exploitation
D) product development
E) None of the answer choices is correct.
3) Which of the following is a possible organizational growth strategy?
A) Concentration
B) Vertical integration
C) Horizontal integration
D) Diversification
E) All of the answer choices are correct.
4) A paper manufacturer purchasing a forest of trees is an example of
A) forward vertical integration.
B) backward vertical integration.
C) product/market exploitation.
D) product development.
E) a defensive company.
5) Which of the following is a benefit of vertical integration?
A) Decreased financial costs of start up
B) Increased flexibility
C) Ease of integrating various operations
D) Increased coordination with competitive strategies
E) None of the above is correct.
6) Related diversification is ______unrelated diversification.
A) less effective than
B) more effective than
C) just as effective as
D) less profitable than
E) None of the answer choices is correct.
7) Which of the following is a type of strategic partnering?
A) Licensing
B) Exporting
C) Joint venture
D) Direct investment
E) All of the above are correct.
8) A long-term contract is usually an agreement between
A) two organizations in the same industry.
B) an organization and its suppliers.
C) two organizations in unrelated industries.
D) a domestic and international organization.
E) None of the answer choices is correct.
9) The ______strategy is one in which the organization maintains its current size and current level of business operations.
A) stability
B) concentration
C) diversification
D) backward integration
E) forward integration
10) The main causes of corporate performance include all the following except
A) inadequate financial controls.
B) uncontrollable costs of too high costs.
C) new competitors.
D) under expansion or too slow growth.
E) unpredicted shifts in consumer demand.
11) A business unit with low relative market share and low industry growth rate is referred to as a ______.
A) dog
B) cash cow
C) cat
D) question mark
E) star
12) Cash flows from cash cows should be used to support
A) question marks.
B) stars.
C) dogs.
D) question marks and stars.
E) question marks and dogs.
13) One of the major disadvantages of the McKinsey matrix is that of
A) simplicity.
B) uniqueness.
C) subjectivity.
D) All of the answer choices are correct.
E) None of the answer choices is correct.
14) Which of the following are strategic factors often used in depicting strategic groups?
A) Image and quality
B) Quality and price
C) Distribution access and image
D) Market share and image
E) Organization and control
15) A company that produces commodity aluminum should pursue which of the following generic competitive strategies?
A) Cost leadership
B) Differentiation
C) Focus
D) Profit
E) Growth
16) When an organization attempts to exploit and strengthen its competitive position through attacks on a competitor's position, this ploy is known as
A) defensive strategies.
B) offensive moves.
C) defensive moves.
D) offensive strategies.
E) None of the answer choices is correct.
17) The following are all features of strategic management except
A) interdisciplinary
B) external focus
C) internal focus
D) future direction
E) All of the answer choices are correct.
18) Which of the following is not one of the five competitive forces?
A) Competition forms substitute products
B) The threat of potential entry
C) The strength of industry forces
D) The bargaining power of buyers
E) None of the answer choices is correct.
19) A buyer will have less bargaining power if all of the following factors apply except
A) buyers have limited information.
B) buyers face few switching costs.
C) the products purchased are highly differentiated and unique.
D) buyers do not have the ability to manufacture the products.
E) buyers purchase small volumes of the products.
20) A ______statement is a statement of what specific organizational units do and what they hope to accomplish.
A) vision.
B) strategy.
C) technology.
D) mission.
E) corporate social responsibility.
21) ______is the process of taking a creative idea and turning it into a product or process that can be used or sold.
A) Technology
B) Innovation
C) Invention
D) Discovery
E) All of the answer choices are correct
22) Which of the following is included under the product functional strategies?
A) Marketing
B) Management
C) Supervision
D) Leadership
E) Control
(22q. x 2p. = 44p.)