Strategic Management

1. Corporate strategy primarily concerns decisions about: * a. pricing. * b. markets and businesses the firm should operate in. * c. employee scheduling. * d. advertising campaigns.

2. Which element is NOT part of the strategic management process?. * a. strategy formulation. * b. strategy implementation. * c. strategy colouring. * d. strategy evaluation.

3. The main purpose of a vision statement is to: * a. describe day-to-day operations. * b. articulate the long-term direction of the organisation. * c. list financial KPIs. * d. identify suppliers.

4. Which of the following enhances a firm's competitive position?. * a. strong brand equity. * b. high staff turnover. * c. unclear mission. * d. outdated technology.

5. In PESTEL, the ‘L’ typically stands for: * a. labour. * b. legal. * c. logistics. * d. leadership.

6. The Five Forces model was introduced by: * a. Henry Mintzberg. * b. Michael Porter. * c. Peter Drucker. * d. Clayton Christensen.

7. Barrier to entry is an example of: * a. internal environment. * b. industry structure. * c. resource inefficiency. * d. diversification strategy.

8. A capability becomes a core competency when: * a. it is expensive to maintain. * b. it is valuable, unique and difficult to imitate. * c. employees dislike using it. * d. it is rarely used.

9. Which is an example of an intangible resource?. * a. machinery. * b. patents. * c. buildings. * d. raw materials.

10. The VRIO framework evaluates resources based on: * a. value, rarity, imitability, organisation. * b. volume, revenue, investment, output. * c. variables, risks, ideas, operations. * d. viability, response, intensity, ownership.

11. Market penetration strategy focuses on: * a. entering new markets. * b. increasing share within existing markets. * c. launching unrelated products. * d. reducing product quality.

12. Diversification is most effective when: * a. businesses are unrelated. * b. businesses share synergies. * c. employees request it. * d. innovation is low.

13. A merger occurs when two firms: * a. exchange technology. * b. form a joint venture. * c. combine to create a new single entity. * d. license intellectual property.

14. Strategic alliances are typically formed to: * a. increase conflict. * b. share resources and capabilities. * c. avoid market competition. * d. reduce organisational learning.

15. The transnational strategy aims to achieve: * a. global efficiency only. * b. local responsiveness only. * c. both global efficiency & local responsiveness. * d. neither.

16. Institutional isomorphism explains why organisations: * a. always innovate independently. * b. start to resemble one another. * c. never change practices. * d. avoid global markets.

17. Learning effects in global strategy refer to: * a. reduced knowledge. * b. improvements from accumulated experience. * c. ignoring past decisions. * d. outsourcing all learning.

18. A standardised global product is beneficial when: * a. consumer needs vary widely. * b. economies of scale are achievable. * c. production costs are irrelevant. * d. innovation is discouraged.

19. Strategic drift occurs when: * a. strategy aligns with environment. * b. environment remains static. * c. strategy fails to adapt to environmental changes. * d. the organisation is new.

20. Scenario planning helps managers: * a. eliminate uncertainty. * b. explore multiple possible futures. * c. make decisions instantly. * d. avoid strategic flexibility.

21. The balanced scorecard includes which dimension?. * a. environmental compliance. * b. customer perspective. * c. holiday entitlement. * d. political analysis.

22. Corporate governance focuses on: * a. operations and logistics. * b. how firms are directed and controlled. * c. office layout. * d. social media presence.

23. A stakeholder is any group that: * a. owns shares. * b. has an interest or stake in organisational decisions. * c. works in human resources. * d. pays taxes.

24. Mintzberg argued that strategies often: * a. only come from formal plans. * b. emerge from patterns of action. * c. have no link to behaviour. * d. remain unchanged.

25. Deliberate strategies are: * a. unintended. * b. entirely emergent. * c. planned and realised. * d. accidental.

26. A firm pursuing cost leadership should focus on: * a. premium pricing. * b. high production efficiency. * c. heavy customisation. * d. small niche segments.

27. Differentiation strategy emphasises: * a. lowest cost. * b. unique value and features. * c. poor quality. * d. identical offerings.

28. The value chain concept was developed by: * a. Michael Porter. * b. Henry Fayol. * c. Elton Mayo. * d. Frederick Taylor.

29. Radical innovation involves: * a. minor updates. * b. small improvements. * c. major shifts that disrupt existing markets. * d. no change.

30. Path dependency suggests that: * a. resources develop based on historical choices. * b. strategy never evolves. * c. innovation is random. * d. firms must follow competitors.

31. The BCG matrix classifies business units based on: * a. growth rate and market share. * b. profit and cost. * c. taxes and inflation. * d. size and age.

32. Strategic control is concerned with: * a. monitoring the execution of strategies. * b. measuring employee happiness only. * c. examining supply chain quality only. * d. reducing organisational flexibility.

33. An emergent strategy is: * a. deliberately planned. * b. completely accidental but realised. * c. shaped by ongoing decisions and patterns. * d. a short-term budget plan.

34. Industry convergence occurs when: * a. unrelated industries begin offering similar products or services. * b. technology becomes obsolete. * c. firms focus on cost-cutting only. * d. regulation decreases.

35. Competitive advantage is lost when: * a. resources are inimitable. * b. competitors easily copy capabilities. * c. innovation is sustained. * d. customers are loyal.

36. Outsourcing is most appropriate when: * a. internal capabilities are strong. * b. activities offer low strategic value. * c. processes are unique. * asset specificity is high.

37. Strategic flexibility allows firms to: * a. resist change. * b. adapt rapidly to environmental shifts. * c. avoid innovation. * d. follow rigid plans.

38. Benchmarking involves: * a. comparing performance with best-in-class organisations. * b. ignoring competitors. * c. increasing product failures. * d. reducing quality standards.

39. The Ansoff Matrix helps firms analyse: * a. pricing strategies. * b. employee satisfaction. * c. growth options. * d. supply chain risks.

40. A blue ocean is best described as: * a. a market with intense competition. * b. a new, uncontested market space. * c. a failed market. * d. a market with falling demand.

1. Strategy at the corporate level primarily concerns: * A. Day-to-day operations. * B. Functional resource allocation. * C. Portfolio and scope of the business. * D. Marketing tactics.

2. Which scholar is most associated with competitive advantage and the Five Forces framework?. * A. Henry Mintzberg. * B. Michael Porter. * C. Joseph Schumpeter. * D. Karl Weick.

3. The concept of creative destruction was coined by: * A. Peter Drucker. * B. Joseph Schumpeter. * C. Alfred Chandler. * D. Henry Chesbrough.

4. Open innovation emphasizes: * A. Secrecy in R&D. * B. Collaboration across boundaries. * C. Solely in-house research. * D. Protecting intellectual property only.

5. According to Clegg et al. (2022), a strategic alliance is best defined as: * A. A legal merger of two companies. * B. A formal cooperative agreement while remaining independent. * C. A franchising arrangement. * D. A takeover bid.

6. The Resource-Based View (RBV) argues that firms gain advantage through: * A. Market positioning. * B. Unique internal resources and capabilities. * C. Cost leadership. * D. Economies of scale only.

7. According to Transaction Cost Economics (TCE), firms "make" instead of "buy" when: * A. Market transaction costs are high. * B. Internal coordination costs are high. * C. Products are standardized. * D. Competition is low.

8. An ambidextrous organization simultaneously focuses on: * A. Internal efficiency and external partnerships. * B. Exploiting existing markets and exploring new ones. * C. Horizontal and vertical integration. * D. Outsourcing and insourcing.

9. Glocalization refers to: * A. Complete standardization of products. * B. Adapting global strategies to local conditions. * C. Restricting operations to home markets. * D. Decentralizing all decision-making.

10. Emergent strategy occurs when: * A. Plans are fully designed in advance. * B. Strategy develops through patterns of action and learning. * C. Strategy is mandated by external stakeholders. * D. Plans are communicated formally and rigidly.

11. The collaboration between AstraZeneca and Oxford University to develop a vaccine is an example of: * A. Joint venture. * B. R&D strategic alliance. * C. Vertical merger. * D. Outsourcing partnership.

12. When Netflix and Sky collaborate to deliver streaming content in the UK, this illustrates: * A. Vertical integration. * B. Co-marketing alliance. * C. Acquisition. * D. Open innovation failure.

13. Apple’s App Store represents: * A. Product innovation. * B. Platform-based business model innovation. * C. Process innovation. * D. Incremental improvement.

14. BMW and Intel’s alliance to develop autonomous driving technology exemplifies: * A. Horizontal merger. * B. Strategic alliance. * C. Equity acquisition. * D. Licensing agreement.

15. A company like Spotify relying on user data to improve personalization is applying: * A. Closed innovation. * B. Co-creation and value engagement. * C. Vertical integration. * D. Cost leadership strategy.

16. Alliances often fail due to: * A. Lack of external funding. * B. Poor trust and governance mechanisms. * C. High transaction costs alone. * D. Overdependence on technology.

17. According to Mintzberg, strategy is best understood as: * A. A fixed plan. * B. A linear top-down process. * C. A pattern in a stream of decisions and actions. * D. A tool for financial control.

18. Firms adopt arbitrage strategies to: * A. Avoid price competition. * B. Exploit cost differences and tax advantages across countries. * C. Build internal innovation capacity. * D. Expand through acquisitions.

19. The Innovator’s Dilemma describes: * A. The risk of innovating too fast. * B. The failure of successful firms to adapt to disruptive change. * C. The difficulty of cost control in R&D. * D. The challenge of managing multiple alliances.

20. The Five Problems of Strategic Planning (Mintzberg) include all EXCEPT: * A. Formalization. * B. Predetermination. * C. Division of labour. * D. Cultural differentiation.

21. You are advising Tesla on expanding its European charging network. The best alliance type would be: * A. Equity alliance with energy companies. * B. Horizontal merger with a car manufacturer. * C. Licensing agreement with competitors. * D. Pure acquisition model.

22. A born-global firm typically: * A. Focuses on domestic markets first. * B. Expands internationally soon after founding. * C. Avoids knowledge-based resources. * D. Waits to internationalize after ten years.

23. In high-velocity environments, successful firms: * A. Rely heavily on rigid planning. * B. Prioritize improvisation, learning, and adaptability. * C. Centralize all decisions. * D. Reduce experimentation.

24. When an MNE assigns specific R&D responsibilities to a subsidiary, it is giving it a: * A. Functional advantage. * B. Mandate. * C. License. * D. Market exit option.

25. A firm that uses design thinking to innovate is most likely to: * A. Focus solely on cost efficiency. * B. Observe users to deeply understand human needs. * C. Exclude non-technical staff from innovation. * D. Rely on strict hierarchical control.