MGT 487 EXAM 1 Chapt 15,
and 8 Review Sheet
There will be two sections to this exam. You will first complete Part 1 of the exam which
will be the Fill in the Blank portion of the exam. After you have completed Part 1, you
will pick up Part 2 of the exam, which will include approximately 50 multiple choice
questions. The multiple choice review section below includes the exact multiple choice
question without the optional responses. The entire exam is taken from the material in the
text, and from the quiz questions provided at the beginning of each class.
I encourage group and individual study for this exam. It will be important that you have a working knowledge of the material to such an extent that you can work swiftly through the exam and complete it within the allotted time. If you have any ADA qualified challenges, please let me know by the class prior to the exam date.
I wish you the very best as you prepare. If you have any questions, please make an effort to bring them up during the class prior to the date of the exam.
Part 1 of Exam - Potential Fill in
the Blank – Entire section will be worth 25-50% of your overall test score
Be able to list, in sequence, the five basic tasks of strategic management.
Be able to list Porter’s
Five Competitive Forces. (know Figure 3-3)
Be able to list and provide
examples of Michael Porter’s Five Generic Competitive Strategies (know Figure 5-1)
Be able to list in sequence a
representative company value chain including its primary and support activities and costs.
Be able to list the three elements of a strategic vision.
Be able to
match dominant economic characteristics, driving forces, key success factors,
strategic objectives and financial objectives with a list of
examples.
Part 2: Multiple Choice – each item is worth between 3 points points each. I’ve provided you with an example of a “high difficulty” and “low difficulty” level questions. You’ll see these two levels, plus “moderate difficulty level” questions on this exam.
Here is an example of what I consider a
“high difficulty level” question.
12.
An industry's market growth rate is strategically important because
a. large,
low-profit markets often draw the interest of big corporations looking to acquire
companies with long-established positions in major industries.
b. fast
growth breeds new entry and growth slow-downs spawn increased rivalry and a shake-out of
weak competitors.
c. low-growth,
low-profit industries usually have high barriers to entry.
d. it
dictates whether backward or forward vertical integration will be an attractive strategy.
e. the
faster the growth rate, the stronger the experience curve effect and the more likely that
a strategy aimed at being the industry’s low-cost producer will be the winning
strategy.
Here is an example of what I consider a
“low difficulty level” question.
33.
A good example of vertical integration is
a. a
large Big Six public accounting firm (like Price Waterhouse or Arthur Andersen) acquiring
a small local or regional public accounting firm.
b. a
large supermarket chain getting into convenience food stores.
c. a
crude oil refiner purchasing a firm engaged in drilling and exploring for oil.
d. a
hospital opening up a nursing home for the aged.
e. a
railroad company acquiring a trucking company specializing in long-haul freight.
Part 2: Multiple Choice:
Choose the BEST answer for each question.
1. The benefits of a
well-said, well-conceived mission/vision statement do NOT include…
2. Which of the following
statements provides the best example of a business definition grounded in
serving the needs of a narrow or specific customer group?
3.
Crafting a strategy is best captured by which of these statements
4. For objectives to
function as yardsticks of organizational performance and progress, they
5. In order to stretch an
organization to reach its fullest potential, managers should
6.
Whose role is it to critically appraise and ultimately approve strategic
action plans:
7. Capturing
the synergy among related business units and turning it into competitive
advantage is typically a concern at what strategy level?
8. Which of the following
is the best example of strategic intent?
9. In a single-business
company, the strategy pyramid consists of
10. Slowdowns in market
growth would be an example of a (n):
11. To gauge how good a
strategy is, analysts should use
12. Which of the following
is not one of the 7 analytical steps in doing an industry analysis?
13. An industry's market
growth rate is strategically important because
14.
The size of the bubbles on a strategic group map usually represent?
15.
What is the last step in an industry and competitive analysis?
16. A strong experience
curve effect in an industry
17. Which of the following
is generally not considered as a barrier to entry?
18. The primary task of
driving forces analysis is to
19. Environmental scanning
concerns
20. Which of the following
is not an appropriate guideline for developing a strategic group map for
a given industry?
21. A company’s
strengths are a function of
22. The difference between
a core competence and a distinctive competence is that
23. Which of the following
is not an example of an external threat to a company’s future profitability?
24. The task of strategic
cost analysis is to…
25. What is activity-based
cost accounting?
26. A weighted competitive
strength assessment is generally analytically superior to an un-weighted
strength assessment because
27. A company has
competitive advantage whenever…
28. Which of the following
is not a good example of a successful type of differentiation strategy?
29.The marketing emphasis
of a company pursuing a broad differentiation strategy usually is
30. Which is not one of
the four types of firms that may make good targets for offensive attacks:
31.The risks of pursuing a
focus strategy include
32.The strategic objective
of a best-cost provider is to
33.
Toyota introducing the Lexus is using which of Porter’s five generic
competitive strategies to compete against Mercedes and BMW.
34. A good example of
vertical integration is
35. Which one of the
following is NOT a strategically beneficial reason why a company may enter into
strategic partnerships or cooperative arrangements with key suppliers,
distributors, or makers of complementary products?
36. Which one of the
following is not an example of an offensive initiative to match or exceed
competitor strengths?
37. Which of the following
is not one of the basic types of strategic offensives?
38. Using surprise hit and
run attacks against competitors is referred to as
39.Which is not one of the classic strategy-shaping “company situations”:
40. The most important
drivers shaping a company's strategic options fall into two broad categories:
41. Which of the following
is not a common characteristic of young, emerging industries?
42. A high-velocity
industry environment is characterized by
43. As industry growth
slows and market maturity sets in, a company can often strengthen its
competitive position by
44. Competitive advantage
in a fragmented industry is most likely to come from
45. According to the text,
examples of a fragmented industry include all of the following but:
46. A cardinal rule for runner-up
firms going up against industry leaders is to:
47. As described in the
text, the illustration of Yamaha is a good example of a company launching new
strategies when operating in a ___________ industry.
48.Which of the following is not a reasonable option for turning around
or salvaging a distressed business?
49.What are the five
industry environments introduced in chapter 8?
50. What are the three
general strategies for industry leaders discussed in Chapter 8?