Question 1

Which of the following is NOT one of Drucker's three basic questions?&#10;A) What is our business?&#10;B) What should our strategy be?&#10;C) What will our business be?

Accepted Answer

Drucker's three basic questions are "What is our business?", "Who is our customer?", and "What does the customer value?". The question about strategy, while important, is not one of the three foundational questions he emphasized for defining the purpose and mission of a business.

Question 2

What is meant by corporate mission?&#10;A) The over-riding reason for the corporation's existence.&#10;B) The strategies the corporation intends to take.&#10;C) The view of the founder as to what kind of company this should be.

Accepted Answer

The corporate mission refers to the fundamental purpose or the overarching reason why the corporation exists, guiding its direction and decision-making processes.

Question 3

What is meant by corporate vision?&#10;A) The over-riding reason for the corporation's existence.&#10;B) The strategies the corporation intends to take.&#10;C) The view of the founder as to what kind of company this should be.

Accepted Answer

A corporate vision refers to the founder's or leadership's aspirational description of what they want the company to achieve or become in the future.

Question 4

Which of the following is NOT a type of planning system?&#10;A) Formal planning system.&#10;B) Logical incrementalism.&#10;C) Formal integration.

Accepted Answer

Formal integration is not recognized as a type of planning system within the context of strategic management or organizational planning. Formal planning systems and logical incrementalism are established concepts in strategic planning, where the former refers to structured, often quantifiable planning processes, and the latter to a more flexible, step-by-step approach to strategy development.

Question 5

What is value chain analysis?&#10;A) A system of valuing the firm's assets.&#10;B) A system of valuing the chain of command.&#10;C) An analysis of the inputs each firm puts into the product before it reaches the final consumer.

Accepted Answer

Value chain analysis examines the activities that a firm engages in to create a product or service, focusing on the inputs and processes involved in adding value at each stage until the product reaches the final consumer.

Question 6

Which of the following is NOT one of the elements which supports the value chain?&#10;A) Procurement.&#10;B) Finance.&#10;C) Human resource management.

Accepted Answer

The value chain concept, primarily developed by Michael Porter, outlines a series of activities that an organization performs to deliver a valuable product or service to the market. Finance, while crucial for the operation of a company, is considered a support activity rather than a primary element of the value chain. The primary elements typically include inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities, which finance falls under, help to enhance the efficiency and effectiveness of the primary activities but are not considered elements of the value chain themselves. Procurement and human resource management are considered support activities directly contributing to the efficiency and effectiveness of the value chain.

Question 7

What is meant by inbound logistics?&#10;A) The study of movement of factors of production.&#10;B) The study of transportation.&#10;C) Return of faulty goods.

Accepted Answer

Inbound logistics refers to the activities involved in receiving, storing, and disseminating incoming goods or raw materials that are used in the production process. It is a part of the supply chain management that focuses on the movement of factors of production into a business.

Question 8

What is a value network?&#10;A) A group of firms who agree to co-operate against outside competition.&#10;B) A group of firms who act together to create value through a set of complex relationships.&#10;C) A group of firms which have a similar value.

Accepted Answer

A value network is essentially a set of connections between organizations and/or individuals interacting with each other to benefit the entire group. These interactions typically involve the exchange of goods, services, or information, aiming to create value through complex relationships rather than through a linear, individual process.

Question 9

Which of the following is NOT one of Porter's three basic competitive positioning strategies?&#10;A) Cost leadership.&#10;B) Differentiation.&#10;C) Segmentation.

Accepted Answer

Porter's three basic competitive strategies include Cost Leadership, Differentiation, and Focus. Segmentation is not one of Porter's strategies; instead, it is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and priorities.

Question 10

What is a market challenger?&#10;A) A company which enters a new market.&#10;B) A company which seeks to increase its share of a market.&#10;C) A company which develops a new product which competitors have to emulate.

Accepted Answer

A market challenger is a company that already exists in a market and is seeking to increase its market share, often by challenging the dominance of the current market leader. This involves strategies aimed at gaining a larger share rather than just entering a new market or innovating a product.

Deck 3: Strategic Planning for Global Business Markets