Deck 1: What Is Strategy

Question 1

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C)outdated technology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

Answer 1

D

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

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

Answer 3

C

Question 4

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 5

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 6

Countries with small populations and small economies have many factors in common.Which of the following is one of these factors?

A)Small,compact cars
B)Small government policy role
C)Small schools
D)Small local markets

Question 7

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 8

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 9

The three levels of strategy are:

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

Question 10

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 11

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 12

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 13

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 14

Which of the following is the most likely factor to be unique to each country and affects the opportunities available to organisations originating in that particular country?

A)Individual/national values
B)Limited capital markets
C)Central role of government
D)Small local markets

Question 15

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

Question 16

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 17

The definition of strategy provided by this textbook 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 18

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 19

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 20

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 21

To understand and assess the business strategy properly,an understanding of the history of the organisation is necessary,including an understanding of its values.

Question 22

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

Question 23

Briefly explain the three levels of strategy.

Question 24

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

Question 25

All organisations must have the three levels of strategy.

Question 26

One view to explain why strategy might be different in countries with smaller economies is that separate sets of values and rules for different countries or geographic regions are simply due to each being at a different stage of transition to Western capitalism.

Question 27

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

Question 28

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

Question 29

What does the analysis of the current business strategy of an organisation involve?

Question 30

Cooperative strategy envisages groups of firms competing with one another.

Question 31

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

Question 32

The essential question in strategy is to maximise profitability.

Question 33

There are three levels of strategy.

Question 34

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

Question 35

Explain how agency theory relates to an organisation's managers.

Question 36

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

Question 37

Strategy is solely about businesses and corporations.

Question 38

The Chinese have a word - guanxi - that relates to the importance of relationships,reciprocity and connections in getting business done.

Question 39

Performance of an organisation is based solely on financial performance.

Question 40

Why are the differences between strategies of organisations in small economy countries compared with large economy countries?