Business Strategy Exam 1 Practice

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