MGT 490 EXAM QUESTIONS AND VERIFIED ANSWERS
According to the strategic management model, external analysis should occur prior to
internal analysis. - Answers - T
The gap between intended and realized strategies usually results from middle
management ineffectiveness. - Answers - F
Most strategic management scholars have endorsed an "artistic" perspective on
strategy formulation. - Answers - F
The notion of strategy assumes
a. that managers have time to develop formal strategic plans.
b. that managers understand the source of the organization's competitive advantage.
c. that experts in strategic planning are employed by the organization.
d. All of the above. - Answers - B
Which of the following is not one of the steps in the strategic management process?
a. execute the strategy
b. control the strategy as necessary
c. conduct an internal analysis
d. All of the above are steps in the strategic management process. - Answers - D
Which of the following is not a factor usually associated with an effective strategy?
a. Top managers rely on the assistance of outside strategic planners for creativity and
analysis.
b. Plans for putting the strategy into action are designed with specificity before it is
implemented.
c. Strategic managers understand how the organization's resources translate into
strengths and weaknesses.
d. Possible future changes in the proposed strategy are evaluated before the strategy is
adopted. - Answers - A
A gap between the intended and realized strategies
a. rarely exists.
b. exists only when management does a poor job of research.
c. suggests middle management ineffectiveness.
d. None of the above. - Answers - D
Which of the following is consistent with the artistic perspective on strategy?
a. The lack of environmental predictability and the fast pace of change render elaborate
strategy planning as suspect at best.
b. Strategists should incorporate large doses of creativity and intuition in order to design
a comprehensive strategy for the firm.
, c. Strategic planning exercises may be time poorly spent.
d. All of the above are consistent with the artistic perspective. - Answers - D
Which of the following perspectives assumes that the firm's unique combination of
strategic resources is the primary influence on firm performance?
a. industrial organization theory c. contingency theory
b. resource-based theory d. None of the above - Answers - B
Which of the following distinctions is not associated with strategic decision-making?
a. It represents a systematic, comprehensive analysis.
b. It involves choices.
c. It is both short-term and long-term oriented.
d. It is distinctively opportunistic. - Answers - C
The primary industry includes a firm's key business units, whereas the secondary
industry includes the firm's less significant business units. - Answers - F
The objective of Porter's five forces model is to
a. assess firm profitability.
b. assess the potential for profits within an industry.
c. emphasize the intensity of rivalry within an industry.
d. None of the above. - Answers - B
A young industry that is beginning to form is in the
a. growth stage. c. maturity stage.
b. shakeout stage. d. decline stage. - Answers - A
Which of the following is not one of Porter's five industry forces?
a. bargaining power of buyers
b. threat of substitute products
c. intensity of rivalry among incumbent firms
d. None of the above. - Answers - D
Firms are under considerable pressure to satisfy customers when switching costs
a. are high. c. are the same as in substitute industries.
b. are low. d. None of the above. - Answers - B
The threat of new entrants to an industry is a function of
a. the existence of economies of scale. c. government policy or the lack thereof.
b. capital requirements in the industry. d. All of the above. - Answers - D
Switching costs are incurred by
a. the buyer. c. both the buyer and the seller.
b. the seller. d. neither the buyer nor the seller. - Answers - A
Which of the following does not increase the bargaining power of buyers?
According to the strategic management model, external analysis should occur prior to
internal analysis. - Answers - T
The gap between intended and realized strategies usually results from middle
management ineffectiveness. - Answers - F
Most strategic management scholars have endorsed an "artistic" perspective on
strategy formulation. - Answers - F
The notion of strategy assumes
a. that managers have time to develop formal strategic plans.
b. that managers understand the source of the organization's competitive advantage.
c. that experts in strategic planning are employed by the organization.
d. All of the above. - Answers - B
Which of the following is not one of the steps in the strategic management process?
a. execute the strategy
b. control the strategy as necessary
c. conduct an internal analysis
d. All of the above are steps in the strategic management process. - Answers - D
Which of the following is not a factor usually associated with an effective strategy?
a. Top managers rely on the assistance of outside strategic planners for creativity and
analysis.
b. Plans for putting the strategy into action are designed with specificity before it is
implemented.
c. Strategic managers understand how the organization's resources translate into
strengths and weaknesses.
d. Possible future changes in the proposed strategy are evaluated before the strategy is
adopted. - Answers - A
A gap between the intended and realized strategies
a. rarely exists.
b. exists only when management does a poor job of research.
c. suggests middle management ineffectiveness.
d. None of the above. - Answers - D
Which of the following is consistent with the artistic perspective on strategy?
a. The lack of environmental predictability and the fast pace of change render elaborate
strategy planning as suspect at best.
b. Strategists should incorporate large doses of creativity and intuition in order to design
a comprehensive strategy for the firm.
, c. Strategic planning exercises may be time poorly spent.
d. All of the above are consistent with the artistic perspective. - Answers - D
Which of the following perspectives assumes that the firm's unique combination of
strategic resources is the primary influence on firm performance?
a. industrial organization theory c. contingency theory
b. resource-based theory d. None of the above - Answers - B
Which of the following distinctions is not associated with strategic decision-making?
a. It represents a systematic, comprehensive analysis.
b. It involves choices.
c. It is both short-term and long-term oriented.
d. It is distinctively opportunistic. - Answers - C
The primary industry includes a firm's key business units, whereas the secondary
industry includes the firm's less significant business units. - Answers - F
The objective of Porter's five forces model is to
a. assess firm profitability.
b. assess the potential for profits within an industry.
c. emphasize the intensity of rivalry within an industry.
d. None of the above. - Answers - B
A young industry that is beginning to form is in the
a. growth stage. c. maturity stage.
b. shakeout stage. d. decline stage. - Answers - A
Which of the following is not one of Porter's five industry forces?
a. bargaining power of buyers
b. threat of substitute products
c. intensity of rivalry among incumbent firms
d. None of the above. - Answers - D
Firms are under considerable pressure to satisfy customers when switching costs
a. are high. c. are the same as in substitute industries.
b. are low. d. None of the above. - Answers - B
The threat of new entrants to an industry is a function of
a. the existence of economies of scale. c. government policy or the lack thereof.
b. capital requirements in the industry. d. All of the above. - Answers - D
Switching costs are incurred by
a. the buyer. c. both the buyer and the seller.
b. the seller. d. neither the buyer nor the seller. - Answers - A
Which of the following does not increase the bargaining power of buyers?
