Sample Questions Exam 1

A business-level strategy describes a. the businesses in which the company intends to compete. b. all policies and procedures used in functional departments. c. the firm's actions to exploit its competitive advantage over rivals. d. a firm's resources, intent, and mission.

c. the firm's actions to exploit its competitive advantage over rivals.

Generally speaking, product market stakeholders are satisfied when a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them. b. a firm's profit margin yields an above-average return to its capital market stakeholders. c. the interests of the firm's organizational stakeholders have been maximized. d. the interests of all stakeholders have been at least minimally satisfied.

a. a firm's profit margin yields the lowest return to capital market stakeholders that is acceptable to them.

New markets created by iPods, PDAs, and Wi-Fi are a result of a. disruptive technologies. b. global competition. c. knowledge intensity. d. hypercompetition.

a. disruptive technologies.

It is important to emphasize that, primarily because they are related to how a firm interacts with its stakeholders, almost all strategic management process decisions have a. ethical dimensions. b. local dimensions. c. political dimensions. d. global dimensions.

a. ethical dimensions.

In the strategic management process ASP stands for a. analyses, successes, and purposes. b. analyses, strategies, and performance. c. ability, strategies, and purposes. d. ability, successes, and performance.

b. analyses, strategies, and performance.

The profit pool is the a. pool of assets that is distributed to investors. b. total profits earned in an industry along all points of the value chain. c. profits that are accrued when a firm earns above-average returns. d. total profits that can be divided among the competitors within an industry.

b. total profits earned in an industry along all points of the value chain.

A competitive advantage a. can be permanent if the firm has successfully implemented the strategic management process. b. entails reducing investors' risk to near zero. c. can be identified only if it has been unsuccessfully challenged by competitors. d. exists when competing firms are unable to find investors.

c. can be identified only if it has been unsuccessfully challenged by competitors.

The I/O model is grounded in a. anthropology. b. psychology. c. economics. d. accounting.

c. economics.

Successful strategic leaders are a. committed to helping the firm create value for all stakeholder groups. b. committed to nurturing those around them. c. decisive. d. All of these options are correct.

d. All of these options are correct.

The economic interdependence among countries as reflected in the flow of goods, services, financial capital, and knowledge across country borders is defined as a. hypercompetition. b. boundaryless retailing. c. strategic intensity. d. globalization.

d. globalization.