Deck 1: What is ‘strategy’?

Question 1

Which one of the following is NOT a corporate strategy of Rio Tinto?

A) improving the accounting function of mining business
B) being a worldwide leader in finding, mining and processing mineral resources
C) operating in an ethically and socially responsible manner
D) delivering high shareholder returns

Answer 1

A

Question 2

In the business strategy model proposed by Hubbard,Rice and Galvin:

A) performance assessment comes before performance measurement
B) performance comes before implementation
C) implementation comes after gap analysis
D) decision making comes after performance

Answer 2

C

Question 3

One basis for a difference in strategy in smaller countries is:

A) access to export markets
B) lack of cooperation between state and federal governments
C) foreign capital market manipulation
D) political systems

Answer 3

D

Question 4

Modern strategic management is based directly on the writings of:

A) Sun Tzu
B) Von Clauswitz
C) Andrews, Ansoff, Christensen, Guth and Learned
D) Michael Porter

Question 5

The discipline that has been the source of most theoretical work on strategy is:

A) economics
B) organisational behaviour
C) organisational theory
D) all of the above

Question 6

In the resource-based view of strategy,the set of conditions leading to sustainable competitive advantage is that the organisation's resources are:

A) valuable, rare, imperfectly imitable and unique
B) invaluable, common, imperfectly imitable and difficult to substitute
C) valuable, common, perfectly imitable and difficult to substitute
D) valuable, rare, imperfectly imitable and easy to substitute

Question 7

It is NOT an assumption of organisational theory that:

A) the fundamental unit of analysis is the individual
B) individuals have different attitudes due to environment and heredity
C) organisational characteristics influence individual behaviour
D) organisational goals arise from interactions between it and individuals

Question 8

Hubbard,Rice and Galvin state that the essential question in strategy is why do some organisations:

A) seem luckier than others
B) maintain their competitive edge longer than others
C) perform better than others
D) have better CEOs and employees than others

Question 9

Stakeholder-based theories argue that organisations have a responsibility to be socially responsible and to promote the best interests of:

A) shareholders
B) local communities
C) the natural environment
D) all of the above

Question 10

Differences between traditional economics and strategy do NOT include an assumption that:

A) market equilibrium will be reached through the pricing mechanism
B) all companies have unique information
C) transaction costs are zero
D) there are many competitors in most markets

Question 11

De Geus argued that the main reason most organisations did not survive for very long was that they had:

A) limited experience
B) poorly trained employees
C) outdated technology
D) a learning disability

Question 12

According to the knowledge-based view of strategy,which of the following is NOT considered as an important organisational resource?

A) operational know-how
B) organisational culture
C) financial resources
D) routines

Question 13

The three levels of strategy are:

A) functional, business, corporate
B) global, national, corporate
C) external, internal, individual
D) industry, corporation, divisional

Question 14

The balanced scorecard approach assesses organisational performance relative to:

A) external consistency of business strategy
B) achievement of business strategy
C) capabilities of the organisation
D) expectations of the key stakeholders
E) all of the above

Question 15

The definition of strategy provided by Hubbard,Rice and Galvin does NOT claim that:

A) strategy is about decision making
B) strategy is about short-term impacts of decisions
C) strategy is about implementation of decisions
D) strategy is about outperforming competitors

Question 16

The three levels of strategy are essential for:

A) all types of organisations
B) only large firms
C) multi-business organisations
D) global organisations only

Question 17

As a consequence of a wide range of theories being applied to the field of strategy,we can conclude that:

A) there is considerable overlap between different perspectives
B) there are significant differences in emphasis
C) the solutions proposed by each perspective are likely to be different
D) all of the above

Question 18

The acronym ESC in 'ESC gap analysis model' stands for:

A) environmentally sustainable capability
B) economics-sociology-culture
C) environment-strategy-capacity
D) environment-strategy-capability

Question 19

In 1985 Michael Porter suggested three generic strategies:

A) low delivered cost, differentiation and focus
B) low price, differentiation and focus
C) low production cost, high quality and focus
D) low cost, differentiation and targeting

Question 20

Ansoff's model of strategy proposed in his 1965 book on corporate planning was criticised because it:

A) is linear
B) relies on strong market signals
C) presumes that all strategic information is available to top management
D) presumes that the future is closely related to the past

Question 21

Should strategy development be the exclusive task of the CEO? Evaluate.

Question 22

Cooperative strategy envisages groups of firms competing with one another.

Question 23

Explain the concept of 'sustainability'.Is it relevant for only the shareholders?

Question 24

There are three levels of strategy.

Question 25

What is 'strategy'? Is it relevant to all types of organisations?

Question 26

Sustainability is defined as development that meets the needs of current shareholders without compromising the ability to meet their needs in the future.

Question 27

The Boston Consulting Group (BCG)developed a 2 x 2 business portfolio matrix.

Question 28

Hubbard,Rice and Galvin's strategy model has three major components: environment,strategy and capability.

Question 29

The essential question in strategy is to maximise profitability.

Question 30

The first model of strategy developed at Harvard Business School proposed an exclusive role for the CEO.

Question 31

Strategy is solely about businesses and corporations.

Question 32

According to Hubbard,Rice and Galvin,the strategic approach for organisations based in smaller countries should be different from the US.

Question 33

All organisations must have the three levels of strategy.

Question 34

According to agency theory,organisational underperformance is due to excessive competition.