Question 1

Which of the following would be classed as a focus strategy?

Accepted Answer

A)  Producing very high quality, up- market products 
B)  A focus on branding identity with heavy marketing 
C)  A no- frills airline 
D)  Product development through innovation, design and research 
A)  Producing very high quality, up- market products 
B)  A focus on branding identity with heavy marketing 
C)  A no- frills airline 
D)  Product development through innovation, design and research

Question 2

A business might become a multinational in order to obtain

Accepted Answer

A)  a spread of risks. 
B)  lower production costs. 
C)  all of the above 
D)  larger sales. 
A)  a spread of risks. 
B)  lower production costs. 
C)  all of the above 
D)  larger sales.

Question 3

According to Porter, firm infrastructure is

Accepted Answer

A)  one of the factors in the five forces model of competition. 
B)  part of the primary value chain. 
C)  part of the support value chain. 
D)  none of the above 
A)  one of the factors in the five forces model of competition. 
B)  part of the primary value chain. 
C)  part of the support value chain. 
D)  none of the above

Question 4

A core competence can give a firm a competitive edge. However, to sustain it into the long run, four conditions must be satisfied. Which of the following is not one of the conditions?

Accepted Answer

A)  Valuable 
B)  Responsive 
C)  Transferable 
D)  Non- substitutable 
E)  Rare 
A)  Valuable 
B)  Responsive 
C)  Transferable 
D)  Non- substitutable 
E)  Rare

Question 5

Which of the following statements about implementing business strategy is false?

Accepted Answer

A)  The more adventurous the strategy, the greater the impact on resources. 
B)  Managing change is now a quick response, as more past data is available for analysis. 
C)  If the choice of strategy is deliberate, CBA will be a useful technique. 
D)  If the strategic shift is towards the global marketplace, flexibility is even more important 
A)  The more adventurous the strategy, the greater the impact on resources. 
B)  Managing change is now a quick response, as more past data is available for analysis. 
C)  If the choice of strategy is deliberate, CBA will be a useful technique. 
D)  If the strategic shift is towards the global marketplace, flexibility is even more important

Question 6

What is corporate governance?

Accepted Answer

A)  The way the government impacts upon a firm's decisions 
B)  The way a business is run, including monitoring and supervising executive decisions in order to meet the purpose of the business and to represent interest groups 
C)  The level of taxation on business profits 
D)  The method by which shareholders influence managers 
A)  The way the government impacts upon a firm's decisions 
B)  The way a business is run, including monitoring and supervising executive decisions in order to meet the purpose of the business and to represent interest groups 
C)  The level of taxation on business profits 
D)  The method by which shareholders influence managers

Question 7

Strategic management comprises three main components:
• strategic analysis
• strategic choice
• strategic implementation.
Checking the effects of technology on the firm is part of

Accepted Answer

A)  routine management. 
B)  strategic choice. 
C)  strategic analysis. 
D)  strategic implementation. 
A)  routine management. 
B)  strategic choice. 
C)  strategic analysis. 
D)  strategic implementation.

Question 8

The management of a seamless integrated supply chain is known as

Accepted Answer

A)  co- operation. 
B)  conglomeration. 
C)  a supply curve. 
D)  logistics. 
A)  co- operation. 
B)  conglomeration. 
C)  a supply curve. 
D)  logistics.

Question 9

What are Mintzberg's five Ps of strategy?

Accepted Answer

Mintzberg suggests that there are five d

Question 10

Explain the difference between a market- based and a resource- based theory of strategic choice.

Accepted Answer

A market- based theory suggests that str

Question 11

Michael Porter suggests that firms should concentrate on two out of the three possible strategies of cost leadership, differentiation and focus.

Accepted Answer

A) True 
 B)False

Question 12

According to Porter, human resource management is

Accepted Answer

A)  one of the factors in the five forces model of competition. 
B)  part of the primary value chain. 
C)  part of the support value chain. 
D)  none of the above 
A)  one of the factors in the five forces model of competition. 
B)  part of the primary value chain. 
C)  part of the support value chain. 
D)  none of the above

Question 13

What is a multinational corporation?

Accepted Answer

A)  A business that buys and sells in domestic and overseas markets 
B)  A business that has owners who are located in more than one country 
C)  A business that either owns or controls foreign subsidiaries in more than one country 
D)  A business that sells in domestic and overseas markets 
A)  A business that buys and sells in domestic and overseas markets 
B)  A business that has owners who are located in more than one country 
C)  A business that either owns or controls foreign subsidiaries in more than one country 
D)  A business that sells in domestic and overseas markets

Question 14

What are the three components of strategic management?

Accepted Answer

• Strategic analysis - factors that will

Question 15

What is the global strategy trade- off?

Accepted Answer

A)  The conflict between a firm's desire to cut costs and enhance profitability and the need to meet the very different demands of consumers 
B)  The trade- off between the expectations of the shareholders and the expectations of customers 
C)  The conflict between cutting costs and enhancing profitability 
D)  The problem of finding a balance between advertising and costs 
A)  The conflict between a firm's desire to cut costs and enhance profitability and the need to meet the very different demands of consumers 
B)  The trade- off between the expectations of the shareholders and the expectations of customers 
C)  The conflict between cutting costs and enhancing profitability 
D)  The problem of finding a balance between advertising and costs

Question 16

A business might become a multinational in order to obtain

Accepted Answer

A)  lower production costs. 
B)  a spread of risks. 
C)  larger sales. 
D)  all of the above 
A)  lower production costs. 
B)  a spread of risks. 
C)  larger sales. 
D)  all of the above

Question 17

Which of the following is not a location- related advantage?

Accepted Answer

A)  Availability of raw materials 
B)  Production is close to customers 
C)  Relative cost of inputs is low 
D)  Technology- led economies of scale 
A)  Availability of raw materials 
B)  Production is close to customers 
C)  Relative cost of inputs is low 
D)  Technology- led economies of scale

Question 18

Mintzberg suggests that there are five Ps of business strategy. A strategy that relied on getting employees to share the management's point of view of the business would be termed a____-, whereas a strategy that concentrated on maintaining the brand image of the firm would be termed a______	by Mintzberg.

Accepted Answer

A)  perspective; position with respect to others 
B)  ploy; position with respect to others 
C)  plan; position with respect to others 
D)  ploy; pattern of behaviour 
A)  perspective; position with respect to others 
B)  ploy; position with respect to others 
C)  plan; position with respect to others 
D)  ploy; pattern of behaviour

Question 19

Which of the following is an aspect of strategic management?

Accepted Answer

A)  Dealing with routine personnel issues 
B)  Evaluating investment options 
C)  Checking production is within budget 
D)  All of the above are aspects of strategic management. 
A)  Dealing with routine personnel issues 
B)  Evaluating investment options 
C)  Checking production is within budget 
D)  All of the above are aspects of strategic management.

Question 20

Strategic analysis is only concerned with evaluating different possible courses of action.

Accepted Answer

A) True 
 B)False

Exam 13: An Introduction to Business Strategy

Which of the following would be classed as a focus strategy?

A business might become a multinational in order to obtain

According to Porter, firm infrastructure is

A core competence can give a firm a competitive edge. However, to sustain it into the long run, four conditions must be satisfied. Which of the following is not one of the conditions?

Which of the following statements about implementing business strategy is false?

What is corporate governance?

Strategic management comprises three main components: • strategic analysis • strategic choice • strategic implementation. Checking the effects of technology on the firm is part of

The management of a seamless integrated supply chain is known as

What are Mintzberg's five Ps of strategy?

Explain the difference between a market- based and a resource- based theory of strategic choice.

Michael Porter suggests that firms should concentrate on two out of the three possible strategies of cost leadership, differentiation and focus.

According to Porter, human resource management is

What is a multinational corporation?

What are the three components of strategic management?

What is the global strategy trade- off?

A business might become a multinational in order to obtain

Which of the following is not a location- related advantage?

Which of the following is an aspect of strategic management?

Strategic analysis is only concerned with evaluating different possible courses of action.

The Business Environment and Business Economics

Economics and the World of Business

Business Organisations

The Working of Competitive Markets

Business in a Market Environment

Demand and the Consumer

Demand and the Firm

Products, Marketing and Advertising

Costs of Production

Revenue and Profit

Profit Maximisation Under Perfect Competition and Monopoly

Profit Maximisation Under Imperfect Competition

Alternative Theories of the Firm

Growth Strategy

The Small-Firm Sector

Pricing Strategy

Labour Markets, Wages and Industrial Relations

Investment and the Employment of Capital

Reasons for Government Intervention in the Market

Government and the Firm

Government and the Market

Globalisation and Multinational Business

International Trade

Trading Blocs

The Macroeconomic Environment of Business

The Balance of Payments and Exchange Rates

Banking, Money and Interest Rates

Business Activity, Employment and Inflation

Demand-Side Policy

Supply-Side Policy

International Economic Policy

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