Business Strategy Exam 1 Practice

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• Which statement best describes vertical integration?
• Which statement best differentiates corporate strategy from business strategy?
• Which term is described as sets forth the logic for how its strategy will create value for customers, while at the same time generate revenues sufficient to cover costs and realize a profit?
• What is meant by a core competency?
• Which two theoretical perspectives might be used to evaluate strategic alliances?
• What is core rigidity?
• Critical success factors (CSFs) are best described as?
• What is the simple but powerful tool for sizing up a company's strengths, weaknesses, opportunities, and threats?
• What is corporate governance, and why is it important for strategy?
• Which growth strategy in the Ansoff Growth Matrix involves entering new markets with existing products?
• Which analysis technique assesses political, economic, social, technological, environmental, and legal factors to identify external opportunities and threats?
• Which term describes the disciplined process of carrying out a company's strategy through coordinated actions and resource alignment?
• Which term describes strategies that are planned and realized as intended, rather than emerging spontaneously?
• Which term refers to a collection of assets that should be evaluated for VRIN?
• Which test asks how well the strategy fits the company's situation?
• What is the function of strategy maps in strategic planning?
• In value chain analysis, which option represents a primary activity?
• Which statement best describes a mission statement?
• What is the difference between a merger and an acquisition?
• Which term refers to big determinants of a company's competitiveness and ability to succeed in the marketplace?
• In the BCG growth-share matrix, which statement correctly describes the quadrant associated with low growth and low market share?
• Which term best describes a plan that lays out a company's future direction, business purpose, performance targets, and strategy?
• What is a strategic group map, and why is it useful?
• In the GE/McKinsey nine-cell matrix, what are the two axes used to evaluate business units?
• What is the role of governance in strategic decision-making?
• Explain cross-border strategy options: global standardization vs localization vs transnational.
• Which of the following is NOT one of Porter’s Five Forces?
• What is the role of culture and leadership in strategy execution?
• Which tool, commonly abbreviated as a four-quadrant matrix, helps identify strengths, weaknesses, opportunities, and threats?
• Cannibalization occurs when a new product or line reduces sales of existing offerings. What is a potential effect if not managed properly?
• The VRIO framework evaluates resources based on which criteria?
• What term refers to a cluster of industry rivals that have similar competitive approaches and market positions?
• What is the primary difference between a leader's role and a manager's role?
• Scenario planning is most useful in which situation?
• Which four perspectives constitute the balanced scorecard?
• Which concept means a set of assets that requires cross-functional coordination to create value?
• In blue ocean strategy, value innovation refers to:
• Which cross-border strategy option focuses on local responsiveness while maintaining some global integration?
• Which statement best captures the relationship between governance and strategy?
• What is the primary purpose of a mission statement in strategic planning?
• In Porter's generic strategies, what does 'focus' emphasize?
• What is a capability?
• Which concept is associated with the idea that a winning strategy must pass three tests?
• Which framework analyzes external macro-environmental forces across Political, Economic, Social, Technological, Environmental, and Legal dimensions?
• Which term describes a plan that provides buyers with superior value or lower cost relative to rivals?
• Diversification growth strategy involves which combination of markets and products?
• Shortcoming that constitute competitive liabilities.
• What is a resource?
• Which instrument is NOT typically used to assess strategic alignment?
• Which statement best describes first-mover advantage and its limitations?
• Which term relates to the discipline of turning strategic choices into day-to-day actions?
• Which term describes a set of proactive strategy elements that are planned and realized as planned?
• What is scenario planning and when is it useful?
• How does Porter’s Five Forces influence profitability?
• Which statement best defines core competencies?
• In strategic projects, which best describes the triple constraints of scope, time, and cost?
• Which term involves aligning full organizational effort toward achieving a bold strategic objective?
• Which competency is essential for strategic leadership?
• If a resource is valuable but not organized to capture value, what is the likely outcome according to VRIO?
• What is PESTEL analysis and how is it used in strategy?
• What is the role of a mission in strategy formation?
• An activity that a company has learned to perform with proficiency—a capability, in other words?
• Which statement best distinguishes short-term optimization from long-term value creation in strategy?
• What technique displays the different market or competitive positions rival firms occupy in the industry?
• Which term best describes the process of developing a plan to guide a company's future actions?
• What is strategic fit?
• How do financial metrics such as ROIC and EVA relate to strategy?
• Causal ambiguity is best described as what?
• The Ansoff Matrix includes four growth strategies. Which are they?
• What is the importance of organizational culture in strategy execution?
• Define the value chain and identify its primary activities.
• A potent tool for improving a company's own internal activities that is based on learning how other companies perform them and borrowing their 'best practices'.
• Which statement defines a capability?
• What is the definition of a resource?
• How should macro trends influence strategic planning?
• Which term relates to the financial performance targets management has established?
• How does the VRIO framework inform resource-based strategy?
• Which concept primarily concerns monitoring and adjusting the implementation of strategy over time?
• How should management typically respond to disruptive innovations?
• What is a customer value proposition?
• What is the difference between intended strategy and realized strategy?
• Which test evaluates whether the strategy is producing good company performance?
• Which company exemplifies differentiation strategy?
• Which of the following is not a typical motive for forming a strategic alliance?
• Which statement about deliberate strategy is true?
• In a multi-stakeholder approach, how does economic strategy differ from social strategy?
• Which statement best differentiates a resource and a capability with examples?
• Which concept is developed and enabled through deployment of a company's resources?
• Which type of indicators are used in strategic performance dashboards to track progress?
• What is a widely used method for combining strategic and financial objectives, tracking their achievement, and giving management a balanced view of organizational performance?
• What term describes an organization's ongoing capacity to modify its resources and capabilities or create new ones?
• Which term describes unplanned actions that become part of realized strategy?
• Which statement best describes the primary purpose of the Balanced Scorecard?
• What is the resource and capability analysis?
• Which would be an example of corporate strategy?
• What does VRIN stand for?
• Economic profit and shareholder value relate to strategy because...
• What is the difference between global standardization and localization strategies?
• Which concept focuses on ensuring that tasks and resources align to implement approved strategies and achieve results?
• Which term describes the firm's most important internal capabilities that are central to strategic success?
• Which term reflects target outcomes that bolster market standing and future prospects?
• Explain the difference between a firm’s strategy and its business model.
• Which term is described as consisting of reactive strategy elements that emerge as changing conditions warrant?
• PESTEL analysis informs strategic decision making by examining which factors?
• Which concept is described as a set of attributes that contributes to competitive advantage over rivals?
• Which concept encompasses the broad environmental context in which an industry’s operations are situated?
• The ongoing process of evaluating how well a company's strategy is working and making corrective adjustments is known as?
• Which term is defined as the plan or approach for creating value for customers?
• Which term best describes a linked and closely integrated set of competitive assets centered around cross-functional capabilities?
• In industry analysis, which term denotes a cluster of rivals with similar competitive approaches and market positions?
• Which statement best describes the nature of a sustained competitive advantage?
• What are Porter's generic strategies, and what does each emphasize?
• Which of the following describes a resource?
• Which factors are typically considered when assessing investment potential and risk in a market?
• Which concept involves relentlessly pursuing an ambitious objective by concentrating resources and competitive actions?
• What are the major underlying causes of change in industry and competitive conditions?
• In benchmarking, what is the purpose of comparing to best-in-class firms?
• Porter’s Five Forces framework analyzes industry attractiveness by examining which elements?
• What technique displays the different market or competitive positions rival firms occupy in the industry?
• Which concept is primarily concerned with implementing a strategy by coordinating resources and actions across the organization?
• What distinguishes corporate strategy from business strategy?
• What statement best captures the trade-off between global integration and local responsiveness?
• Which statement best describes RBV and the VRIO framework?
• When is vertical integration advantageous and what are its risks?
• What is strategic drift, and how can a firm prevent it?
• Which statement best describes emergent strategy?
• Which statement about sustainable competitive advantages is most accurate?
• What is the Balanced Scorecard, and what are its four perspectives?
• Which statement best describes the value chain concept?
• In the Ansoff Matrix, which growth strategy focuses on existing products in existing markets?
• Which primary activity in the value chain involves distributing products to customers?
• What is blue ocean strategy, and how does it differ from red ocean competition?
• What constitutes a sustainable competitive advantage?
• What is strategic resource allocation in a multi-business firm?
• Which metric captures earning above the cost of capital, signaling economic profit?
• Which term refers to the major underlying causes of change in industry and competitive conditions?
• Which of the following is a typical step in benchmarking?
• Which term captures core beliefs and norms guiding behavior?
• Which term is described as the organization's plan indicating the long-term direction and the intended strategy?
• Which term consists of reactive strategy elements that emerge as changing conditions warrant?
• Which term describes strategy at the single-business level, focusing on improving performance or gaining a competitive advantage in a particular line of business?
• What is the GE/McKinsey matrix and its purpose?
• Which option best illustrates a capability?
• What is the difference between a mission statement and a vision statement in strategic planning?
• What is the impact of sustainability and ESG considerations on strategic decision-making?
• Which term portrays management's aspirations for the future and delineates long-term direction?
• What is the core role of boards in strategy formation?
• For a resource to provide sustained competitive advantage, which VRIO criterion must be satisfied?
• Which approach best helps identify core competencies?
• Which statement best describes cannibalization risk in a diversification strategy?
• If supplier power is low and barriers to entry are high, what is the likely effect on industry profitability?
• A competitively valuable activity that a firm performs better than its rivals.
• The combination of competitive moves and business approaches that managers employ to grow the company and attract customers.
• In the GE/McKinsey matrix, which action best describes 'divest'?
• How do firms choose between global integration and local responsiveness?
• Which force directly influences profitability by affecting competitive intensity?
• The essential elements a firm must excel at to survive and thrive in its industry, including product attributes, operational approaches, resources, and capabilities, are known as what?
• How do ethical considerations integrate into strategy formulation?
• Which term refers to an organization's specific results management seeks to achieve?
• An activity that a company performs proficiently that is also central to its strategy and competitive success.
• How can firms align their HR strategy with corporate strategy?
• Which term sets forth the logic for how its strategy will create value for customers, while at the same time generate revenues sufficient to cover costs and realize a profit?
• What does synergy with an existing portfolio refer to?
• What describes the role of governance in strategy?
• Represents its competitive assets.
• In VRIO analysis, which attribute is about the organization’s ability to capture value from resources?
• Which test asks whether a resource is Valuable, Rare, Inimitable, and Non-substitutable?
• What does 'fit' mean in organizational design and strategy?
• What is strategic alignment in an organization, and how is it typically assessed?
• Which statement best captures the relationship between competitive advantage and imitation by rivals?
• Which evaluation checks whether the strategy is delivering good overall company performance?
• Which term is primarily about specific results management aims to achieve within a period?
• What is the concept of synergy in corporate strategy?
• Which term relates to outcomes indicating a company is strengthening its market position and future prospects?
• What is an exit option in portfolio strategy, and when is it used?
• What is corporate diversification and the difference between related and unrelated diversification?
• What are the strategy elements—product and service attributes, operational approaches, resources, and competitive capabilities—that are essential to surviving and thriving in the industry?
• Explain how to evaluate strategic alliances using the transaction cost and resource-based views.
• Which concept is defined as the plan to create value for customers and earn profits?
• Which statement distinguishes disruptive from sustaining innovations?
• What is the primary purpose of the balanced scorecard?
• Identifies the primary activities that create customer value.
• In the value chain, which option represents a support activity?
• What is the outcome of good organizational fit?
• Which term describes a company's present purpose and its present business, addressing who it is, what it does, and why it is here?
• Which term describes the managerial process of crafting and executing a company's strategy?
• Which strategic action can mitigate cannibalization when launching a new product?
• Which concept encompasses the beliefs, traits, and behavioral norms expected of personnel?
• Which axes are used in the GE/McKinsey matrix to evaluate business units?
• How are CSFs used in strategy formulation?
• How should firms respond to global competition in terms of localization and standardization?
• What does VRIO stand for, and what is its purpose in strategic analysis?
• Distinguish between cost leadership and differentiation strategies.
• Which term refers to an advantage that persists despite competitors' best efforts to imitate or surpass it?
• Which term describes a competitively valuable activity performed better by a firm than its rivals?
• Explain the concept of strategic positioning and how it relates to value proposition.
• Which statement best describes the three levels of strategy and the typical responsibilities for each level?
• In response to disruptive innovation, which approach is strategic?
• What are dynamic capabilities?
• Describe the concept of organizational fit in strategic planning and why it matters.
• Which term describes the managerial process of crafting and executing a company's strategy?
• The comprehensive process that includes both crafting and implementing a company's strategy is called?
• Which term refers to the ongoing management process that includes crafting and implementing strategy?
• What is a strategic alliance, and what are typical motives?
• Which term describes the activities that deliver customer value and are central to strategic success?
• Define disruptive innovation and its implications for strategy.
• Which framework is used to assess industry attractiveness and competitive intensity?
• How do you evaluate and select strategic options using a decision matrix?
• What is scenario-based risk assessment in strategy?
• Define value chain analysis and its purpose.
• Which term denotes the managerial discipline that encompasses both creating and carrying out a company's strategy?
• Which level of strategy is typically the responsibility of business unit managers?
• Which term denotes focus on financial performance milestones as part of the strategy?
• Which option is NOT a component of Porter's Five Forces?
• What is the key difference between related and unrelated diversification?
• Which term focuses specifically on executing planned strategies and aligning resources to achieve goals?
• Which concept is developed and enabled through the deployment of a company's resources?
• Which test asks whether the strategy helps the company achieve a sustainable competitive advantage?
• Why is strategic misfit dangerous in strategic planning?
• Explain first-mover advantage and potential drawbacks.
• Which term is primarily associated with making plans and decisions about what the organization will do in the future?
• Diversification involves entering new products or markets. Which statement about related diversification is correct?
• What is strategic intent?
• Which concept describes factors that make it difficult to figure out how a complex resource contributes to competitive advantage, thus hindering imitation?
• Which statement defines efficiency in strategic terms?
• Which analysis focuses on the six principal components of strategic significance in the macro-environment: Political, Economic, Social, Technological, Environmental, and Legal forces?
• Discuss the risks and governance issues in alliances and joint ventures.
• What does strategic positioning refer to?
• What is a customer value proposition, and how is it tested?
• Which term best captures the ongoing process of setting direction and coordinating actions to achieve long-term goals?
• In strategic planning, what is the purpose of a value proposition?
• Which statement best describes the difference between related and unrelated diversification?
• Which statement best describes the fit vs stretch concept in strategic management?
• Which term emphasizes enduring aspirations and its path forward?
• Which concept describes the ongoing capacity to adapt and renew its resources to meet changing conditions?
• The broad environment in which an industry operates is known as the what?
• Which term refers to strategy at the multi-business level aimed at improving company performance or gaining competitive advantage by managing a set of businesses simultaneously?
• Which elements constitute Porter's generic strategy routes to competitive advantage?
• Which risk is commonly associated with alliances and joint ventures?