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INTERNATIONAL BURCH UNIVERSITY
FACULTY OF ECONOMICS
DEPARTMENT OF MANAGEMENT
STRATEGIC MANAGEMENT
GRADE :................
MIDTERM EXAM QUESTIONS
Duration: 90 minutes
November 9, 2010
Among ten questions written below, choose and answer 5 of them. (10 points per each question)
1) Describe the strategic management process. What does it mean to manage strategically?
2) How are the three types of organizational strategies different?
3) Define stakeholders. Describe some potential organizational stakeholders. Why are stakeholders important?
4) Discuss the major barriers to entry.
5) Compare the general versus the specific environment.
6) Describe the benefits of conducting an external analysis.
7) Define the steps in the identification of distinctive organizational capabilities.
8) Describe some product strategies.
9) Explain the disadvantages of being a first mover organization.
10) Into the boxes write four support and five primary activities of Porter’s Value Chain and give
example for each activities.
11) The following are all features of strategic management except
A) interdisciplinary
B) external focus
C) internal focus
D) future direction
E) All of the answer choices are correct.
20) An external analysis enables the organization to examine
A) opportunities and threats.
B) strengths and weaknesses.
C) product substitution and durability.
D) manufacturing and operations.
E) None of the answer choices is correct.
12) Types of strategies within organizations include
A) corporate strategies.
B) functional strategies.
C) competitive strategies.
D) All of the answer choices are correct.
E) None of the answer choices is correct.
21) Which of the following would be examples of sectors that
could be found in the specific environment?
A) Demographics
B) Competitors
C) Economics
D) Political/legal
E) All of the answer choices are correct.
13) Situation analysis allows the organization to examine
A) external factors only.
B) internal factors only.
C) the organization's top management only.
D) both external and internal factors.
E) None of the answer choices is correct.
14) The basic activities of strategic management include
A) offense, defense, and control.
B)
situation
analysis,
strategy
formulation,
implementation, and strategy evaluation.
C) development, control, and management.
D) ethics, management, and practice.
E) None of the answer choices is correct.
22) Which of the following is not one of the five competitive
forces?
A) Competition forms substitute products
B) The threat of potential entry
C) The strength of industry forces
D) The bargaining power of buyers
E) None of the answer choices is correct.
strategy
15) Which of the following factor(s) is(are) considered to make an
organization's resources unique?
A) Durability
B) Imitability
C) Quality
D) Efficiency
E) Effectiveness
16) Experiences, characteristics, and knowledge are all aspects that
represent
A) financial resources.
B) intangible resources.
C) human resources.
D) physical resources.
E) structural resources.
17) ________ is the process of taking a creative idea and turning it
into a product or process that can be used or sold.
A) Technology
B) Innovation
C) Invention
D) Discovery
E) All of the answer choices are correct
18) The ________ should elaborate a purpose for the organization.
A) vision
B) competitive strategy
C) mission
D) strategy
E) None of the answer choices is correct.
19) A ________ statement is a statement of what specific
organizational units do and what they hope to accomplish.
A) vision.
B) strategy.
C) technology.
D) mission.
E) corporate social responsibility.
23) The Porter five forces model includes all of the following
factors except
A) bargaining power of suppliers.
B) threat of new entrants.
C) threat of a decrease in research and development.
D) threat of substitute products.
E) bargaining power of buyers.
24) One of the factors that shapes the definition of exit barriers as
factor(s) that keep companies competing in businesses even when
those businesses are failing is
A) economic factors.
B) strategic factors.
C) emotional factors.
D) All of the answer choices are correct.
E) None of the answer choices is correct.
25) A buyer will have less bargaining power if all of the following
factors apply except
A) buyers have limited information.
B) buyers face few switching costs.
C) the products purchased are highly differentiated and unique.
D) buyers do not have the ability to manufacture the products.
E) buyers purchase small volumes of the products.
26) An internal analysis involves an examination of
A) the organization's current vision.
B) the organization's mission.
C) the organization's strategic objectives.
D) the organization's strategies.
E) None of the above answer choices are true.
27) Resources that the organization possesses and capabilities that
the organization has developed, both of which can be developed
into a sustainable competitive advantage, are known as
A) weaknesses.
B) strengths.
C) opportunities.
D) threats.
E) None of the answer choices is correct.
28) Resources that are lacking or deficient and that prevent the
organization from developing a sustainable competitive advantage,
are known as
A) weaknesses.
B) strengths.
C) opportunities.
D) threats.
E) None of the answer choices is correct.
32) Human resource management strategies regarding employee
separations include all of the following except
A) downsizing.
B) hiring freezes.
C) organizing for efficiency or innovation.
D) preferential or nonpreferential rehiring process.
E) None of the answer choices is correct.
Answer: C
29) The internal audit answers the questions of
A) Do the various functions have the needed resources to perform
their assigned work activities?
B) How well do they perform these assigned work activities?
C) What are the organization's primary opportunities and threats?
D) possessing the needed resources and then performing assigned
work activities.
E) None of the answer choices is correct.
33) Strategy evaluation involves
A) looking at what was done.
B) what was supposed to be done.
C) assessing any variances.
D) trying to determine what happened.
E) All of the answer choices are correct.
30) Which of the following is one of the basic organizational
functions managers should examine during an internal audit?
A) Production-operations
B) Marketing
C) Financial-accounting
D) Information systems
E) All of the answer choices are correct
31) Why is an internal analysis important?
A) It is the only way to identify an organization's strengths and
weaknesses.
B) It is needed for making good strategic decisions.
C) It establishes organizational goals.
D) It identifies strengths and weaknesses and it assists in decision
making.
E) Answers B and D are correct.
34) Which of the following is included under the product
functional strategies?
A) Marketing
B) Management
C) Supervision
D) Leadership
E) Control
35) Strategy evaluation at the ________ level involves using
________ and ________ performance measures for each area.
A) functional; quantitative; qualitative
B) marketing; quantitative; qualitative
C) management; financial; quantitative
D) research and development; quantitative; qualitative
E) None of the answer choices is correct.
(25q. x 2 p.)