Name: ....................................................
Surname: ...............................................
INTERNATIONAL BURCH UNIVERSITY
Number : ................................................
FACULTY OF ECONOMICS
Signature: ...........................................
DEPARTMENT OF MANAGEMENT
STRATEGIC MANAGEMENT
GRADE :................
FINAL EXAM QUESTIONS
Duration: 90 minutes
January 8, 2010
a) Answer the questions.
1)
2)
3)
4)
5)
6)
7)
Compare the varying degrees of competition.
Explain Mintzberg's generic competitive strategies.
Describe the skills and resources needed for overall cost leadership.
What are the costs of vertical integration?
How are mergers different from acquisitions?
What are the possible causes of corporate decline?
What are some recommendations for handling downsizing strategies?
b) Give a summary of your presentation in 25 to 30 sentences!
1) Coca-Cola is a ________ organization
and PepsiCo is an example of a ________
organization.
A) multiple-business; single-business
B) single-business; multiple-business
C) multiple-business; multiple-business
D) All of the answer choices are correct.
E) None of the answer choices is correct.
2) Developing different uses for a
product is an example of a ________
concentration option.
A) product-market diversification.
B) market development
C) product-market exploitation
D) product development
E) None of the answer choices is correct.
3) Which of the following is a possible
organizational growth strategy?
A) Concentration
B) Vertical integration
C) Horizontal integration
D) Diversification
E) All of the answer choices are correct.
4) A paper manufacturer purchasing a
forest of trees is an example of
A) forward vertical integration.
B) backward vertical integration.
C) product/market exploitation.
D) product development.
E) a defensive company.
5) Which of the following is a benefit of
vertical integration?
A) Decreased financial costs of start up
B) Increased flexibility
C) Ease of integrating various operations
D) Increased coordination with competitive
strategies
E) None of the above is correct.
6) Related diversification is ________
unrelated diversification.
A) less effective than
B) more effective than
C) just as effective as
D) less profitable than
E) None of the answer choices is correct.
7) Which of the following is a type of
strategic partnering?
A) Licensing
B) Exporting
C) Joint venture
D) Direct investment
E) All of the above are correct.
8) A long-term contract is usually an
agreement between
A) two organizations in the same industry.
B) an organization and its suppliers.
C) two organizations in unrelated
industries.
D) a domestic and international
organization.
E) None of the answer choices is correct.
9) The ________ strategy is one in which
the organization maintains its current
size and current level of business
operations.
A) stability
B) concentration
C) diversification
D) backward integration
E) forward integration
10) The main causes of corporate
performance include all the following
except
A) inadequate financial controls.
B) uncontrollable costs of too high costs.
C) new competitors.
D) under expansion or too slow growth.
E) unpredicted shifts in consumer demand.
11) A business unit with low relative
market share and low industry growth
rate is referred to as a ________.
A) dog
B) cash cow
C) cat
D) question mark
E) star
12) Cash flows from cash cows should be
used to support
A) question marks.
B) stars.
C) dogs.
D) question marks and stars.
E) question marks and dogs.
13) One of the major disadvantages of
the McKinsey matrix is that of
A) simplicity.
B) uniqueness.
C) subjectivity.
D) All of the answer choices are correct.
E) None of the answer choices is correct.
14) Which of the following are strategic
factors often used in depicting strategic
groups?
A) Image and quality
B) Quality and price
C) Distribution access and image
D) Market share and image
E) Organization and control
15) A company that produces commodity
aluminum should pursue which of the
following generic competitive strategies?
A) Cost leadership
B) Differentiation
C) Focus
D) Profit
E) Growth
16) When an organization attempts to
exploit and strengthen its competitive
position through attacks on a
competitor's position, this ploy is known
as
A) defensive strategies.
B) offensive moves.
C) defensive moves.
D) offensive strategies.
E) None of the answer choices is correct.
17) The following are all features of
strategic management except
A) interdisciplinary
B) external focus
C) internal focus
D) future direction
E) All of the answer choices are correct.
18) Which of the following is not one of
the five competitive forces?
A) Competition forms substitute products
B) The threat of potential entry
C) The strength of industry forces
D) The bargaining power of buyers
E) None of the answer choices is correct.
19) A buyer will have less bargaining
power if all of the following factors apply
except
A) buyers have limited information.
B) buyers face few switching costs.
C) the products purchased are highly
differentiated and unique.
D) buyers do not have the ability to
manufacture the products.
E) buyers purchase small volumes of the
products.
20) A ________ statement is a statement
of what specific organizational units do
and what they hope to accomplish.
A) vision.
B) strategy.
C) technology.
D) mission.
E) corporate social responsibility.
21) ________ is the process of taking a
creative idea and turning it into a
product or process that can be used or
sold.
A) Technology
B) Innovation
C) Invention
D) Discovery
E) All of the answer choices are correct
22) Which of the following is included
under the product functional strategies?
A) Marketing
B) Management
C) Supervision
D) Leadership
E) Control
(22q. x 2p. = 44p.)