MANA 4322 EXAM QUESTIONS
AND ANSWERS
Which of the following is not a reason for merger and acquisition failures? - Answer-
The acquisition leads to value creation
Corporate‐level strategy focuses on _____. - Answer- Gaining long-term revenue
Proctor and Gamble is a large multinational organization that has many business
sharing distribution resources. Diversification strategies take advantage of the
________ that exist in their organization. - Answer- Synergies
A firm should consider vertical integration when _____. - Answer- The suppliers of raw
materials to the firm are unable to maintain quality standards.
The strategic management process should be addressed only by top‐level executives.
Mid‐level and low‐level employees are best equipped to implement the strategies of the
organization. - Answer- False
Trade‐off decisions between effectiveness and efficiency are important in the practice of
strategic management. - Answer- True
Once established, competitive advantages last forever whether the firm is in a high
technology environment or not. - Answer- False
The market life cycle should be used for short‐run forecasting because it provides a
conceptual framework for understanding what changes typically occur over the life of an
industry. - Answer- False
Firms achieve and sustain differentiation advantages and attain above‐average
performance when their price premiums do not exceed the extra costs incurred in being
unique. - Answer- False
A differentiator will always seek out ways of distinguishing itself from similar competitors
to justify price premiums greater than the costs incurred by differentiating. - Answer-
True
, Ambidextrous behaviors in individuals illustrate how a dual capacity for _____ and
_____ can be woven into the fabric of an organization at the individual level. - Answer-
Alignment and Adaptability
The innovation paradox implies that consistency in products and services provokes a
tension with the need for new products. This results in a conflict between _____ and
______. - Answer- Stability and change
According to Henry Mintzberg, the final realized strategy of a firm is ______. - Answer-
a combination of deliberate and emergent strategies
________ may be considered the advance work that must be done in order to
effectively formulate and implement strategies. - Answer- Strategy analysis
New value creation is a major engine for economic growth and is the main focus of
________ strategy. - Answer- Entrepreneurial
WellPoint Health Network states: WellPoint will redefine our industry through a new
generation of consumer‐friendly products that put individuals back in control of their
future. This is an example of a _____. - Answer- Vision Statement
Two of the key inputs to developing forecasts discussed in the text are _____. - Answer-
Environmental scanning and competitive intelligence.
Which one of the following statements is an example of how to improve perceptual
acuity? - Answer- CEO meets with direct competitors to analyze current industry trends.
The CEOs share their conclusions with their respective companies.
Why must successful managers recognize opportunities and threats in their company
external environment? - Answer- If they miscalculate the market, opportunities will be
lost
________ tracks the evolution of environmental trends, sequences of events, or
streams of activities. - Answer- Environmental Monitoring
Executives must be careful to avoid spending so much time and effort tracking the
actions of ________ that they ignore ________. - Answer- Traditional competitors and
new competitors
It is important to question the reliability of forecasts because _____. - Answer- If
predictions are too low, a company like Motel 6 might build too many units and thus
have a surplus of capacity.
In the SWOT framework, ________ are the same for all firms in the same competitive
environment. - Answer- Opportunities and threats
AND ANSWERS
Which of the following is not a reason for merger and acquisition failures? - Answer-
The acquisition leads to value creation
Corporate‐level strategy focuses on _____. - Answer- Gaining long-term revenue
Proctor and Gamble is a large multinational organization that has many business
sharing distribution resources. Diversification strategies take advantage of the
________ that exist in their organization. - Answer- Synergies
A firm should consider vertical integration when _____. - Answer- The suppliers of raw
materials to the firm are unable to maintain quality standards.
The strategic management process should be addressed only by top‐level executives.
Mid‐level and low‐level employees are best equipped to implement the strategies of the
organization. - Answer- False
Trade‐off decisions between effectiveness and efficiency are important in the practice of
strategic management. - Answer- True
Once established, competitive advantages last forever whether the firm is in a high
technology environment or not. - Answer- False
The market life cycle should be used for short‐run forecasting because it provides a
conceptual framework for understanding what changes typically occur over the life of an
industry. - Answer- False
Firms achieve and sustain differentiation advantages and attain above‐average
performance when their price premiums do not exceed the extra costs incurred in being
unique. - Answer- False
A differentiator will always seek out ways of distinguishing itself from similar competitors
to justify price premiums greater than the costs incurred by differentiating. - Answer-
True
, Ambidextrous behaviors in individuals illustrate how a dual capacity for _____ and
_____ can be woven into the fabric of an organization at the individual level. - Answer-
Alignment and Adaptability
The innovation paradox implies that consistency in products and services provokes a
tension with the need for new products. This results in a conflict between _____ and
______. - Answer- Stability and change
According to Henry Mintzberg, the final realized strategy of a firm is ______. - Answer-
a combination of deliberate and emergent strategies
________ may be considered the advance work that must be done in order to
effectively formulate and implement strategies. - Answer- Strategy analysis
New value creation is a major engine for economic growth and is the main focus of
________ strategy. - Answer- Entrepreneurial
WellPoint Health Network states: WellPoint will redefine our industry through a new
generation of consumer‐friendly products that put individuals back in control of their
future. This is an example of a _____. - Answer- Vision Statement
Two of the key inputs to developing forecasts discussed in the text are _____. - Answer-
Environmental scanning and competitive intelligence.
Which one of the following statements is an example of how to improve perceptual
acuity? - Answer- CEO meets with direct competitors to analyze current industry trends.
The CEOs share their conclusions with their respective companies.
Why must successful managers recognize opportunities and threats in their company
external environment? - Answer- If they miscalculate the market, opportunities will be
lost
________ tracks the evolution of environmental trends, sequences of events, or
streams of activities. - Answer- Environmental Monitoring
Executives must be careful to avoid spending so much time and effort tracking the
actions of ________ that they ignore ________. - Answer- Traditional competitors and
new competitors
It is important to question the reliability of forecasts because _____. - Answer- If
predictions are too low, a company like Motel 6 might build too many units and thus
have a surplus of capacity.
In the SWOT framework, ________ are the same for all firms in the same competitive
environment. - Answer- Opportunities and threats
