Strategic Management

Question 11

The most intense rivalry results from:

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(a) Numerous equally balanced competitors, slow industry growth, and high fixed or storage costs.

(b) Few competitors, slow industry growth, lack of differentiation, and high fixed or storage costs.

(c) Numerous equally balanced competitors, manufacturing capacity increasing only in large increments, and low exit barriers.

(d) A high level of differentiation.


Question 12


A crash R&D program by one firm cannot replicate a successful technology developed by another firm when research findings cumulate.

(a) Social complexity.

(b) Path dependency.

(c) Physical uniqueness.

(d) Causal ambiguity


Question 13

Emotional intelligence, as proposed by Daniel Goleman, is manifest in self-awareness, self-regulation, social skills, empathy, and:

(a) Ambition

(b) Motivation

(c) Sympathy.

(d) Open mindedness


Question 14


Which of the following is not characteristic of well-constructed goals?


(a) They are precise and measurable.

(b) They are the result of a group decision process.

(c) They specify a time period.

(d) They are challenging but realistic.

(e) They address critical issues.


Question 15


There are several perspectives of competition. One perspective is zero-sum thinking. Zero-sum thinking means that:


(a) All parts of the organizations gain at no loss.

(b) In order for someone to gain, others must experience no gain or benefit.

(c) One can only gain at the expense of someone else.

(d) Everyone in the organization shares gains and losses equally.

Question 16

Kaizen means:

(a) radical innovation.

(b) Incremental innovation.

(c) Open innovation.

(d) Continuous improvement.

Question 17

Costs associated with efforts to prevent errors are:

(a) Appraisal costs.

(b) Direct costs.

(c) Prevention costs.

(d) Expected costs.

Question 18

Emerging sociocultrual changes in the environment include:

(a) Changes in the ethnic composition.

(b) The increasing educational attainment of women in the past decade.

(c) Progressively less disposable income by consumers.

(d) Changes in the geographic distribution of the population.


Question 19


In value chain analysis, the activities of organizations are divided into two major categories of value activities: primary and support. Which of the following is a primary activity?


(a) Purchasing key inputs.

(b) Recruiting and training employees.

(c)   Repairing the product for the consumer.

(d) Monitoring the cost of producing the product through a cost accounting system.

Question 20

The balanced scorecard enables managers to consider their business from all of the following perspectives except:

(a) Customer perspective.

(b) Internal perspective.

(c) Innovation and leering perspective.

(d) Ethical perspective.

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