Corporate Strategy - Exam questions
and answers
1. Which of the following strategies is about how to successfully compete in specific
markets?
a. Generic strategy
b. Business strategy
c. Functional (Operation-level) strategy
d. Corporate strategy
b. Business strategy
2. IKEA sells furniture for a cheap price while still focusing on design and quality. As such,
which of the following strategies is IKEA pursuing?
a. Mixed-cost strategy
b. Price-based strategy
c. Differentiation strategy
d. Hybrid strategy
d. Hybrid strategy
Full screen
3. What are the two sources of competitive advantage?
a. Lower cost and diversification
b. Lower cost and differentiation
c. Premium prices and differentiation
d. Premium prices and diversification
b. Lower cost and differentiation
4. Which of the following best describes the maturity stage of the industry life cycle?
a. Companies face increased rivalry due to slower growth and some firms exiting the sector
b. Companies reach maximum revenue, profits and cash flows because customer demand is
fairly high and consistent within the sector
c. Companies experience low rivalry due to high differentiation and innovation within the
sector
d. Companies encounter strong buyers due to low growth and standardized products within
the sector
b. Companies reach maximum revenue, profits and cash flows because customer demand is
fairly high and consistent within the sector
,d. Companies encounter strong buyers due to low growth and standardized products within
the sector
5. An organisation's general expression of its overall purpose is known as its:
a. Goal
b. Mission
c. Vision
d. Objective
b. Mission
6. Traditionally the typical clients of the beer industry were bars and restaurants. Recently
the beer industry began to sell less and less to these traditional clients, and more and more
to big retailers such as Carrefour and Aldi. This has the following effect:
a. It decreases the bargaining power of firms within the beer industry
b. It increases the bargaining power of firms within the beer industry
c. It has no effect on firms within the beer industry
d. It decreases the bargaining power of the clients purchasing from the beer industry
a. It decreases the bargaining power of firms within the beer industry
7. Which of the following is not a generic strategy according to M.E. Porter?
a. Cost leadership
b. Differentiation
c. Cost differentiation
d. Cost focus
c. Cost differentiation
8. According to the BCG Matrix, question marks are usually characterized by:
a. Low market growth, high market share
b. Low market growth, low market share
c. High market growth, low market share
d. High market growth, high market share
c. High market growth, low market share
9. Accor Group's analysis for the Saudi Arabian market reveals a high growth of the young
(16 to 31 years old) population. This information belongs to which of the following
components of the PESTEL framework?
a. Economic
b. Social
, c. Demographic
d. Socioeconomic
b. Social
10. What is the main goal of a differentiation strategy with price premium?
a. Increased market share
b. Increased cost leadership
c. Increased economies of scale
d. Increased margins
d. Increased margins
11. A store selling locally adapted products and paying a great deal of attention to cost
reduction is pursuing which of the following international strategies?
a. Global strategy
b. Multi-domestic strategy
c. Simple export strategy
d. Transnational strategy
d. Transnational strategy
12. The scenario approach for forecasting follows a process of five basic steps. Which of the
following is not one of these five steps:
a. Identifying the key drivers for change using PESTEL to uncover issues
b. Identifying impacts of alternative scenarios
c. Assigning scenarios based on the likelihood of growth rates obtained from
macroeconomic indicators
d. Monitoring progress over time to alert whether and how potential developments fit
scenario expectations
c. Assigning scenarios based on the likelihood of growth rates obtained from
macroeconomic indicators
13. Which of the following best describes a situation whereby clients are cutting out suppliers
who act as intermediaries:
a. Backwards vertical integration
b. Forward vertical integration
c. Horizontal integration
d. Forward diversification
a. Backwards vertical integration
and answers
1. Which of the following strategies is about how to successfully compete in specific
markets?
a. Generic strategy
b. Business strategy
c. Functional (Operation-level) strategy
d. Corporate strategy
b. Business strategy
2. IKEA sells furniture for a cheap price while still focusing on design and quality. As such,
which of the following strategies is IKEA pursuing?
a. Mixed-cost strategy
b. Price-based strategy
c. Differentiation strategy
d. Hybrid strategy
d. Hybrid strategy
Full screen
3. What are the two sources of competitive advantage?
a. Lower cost and diversification
b. Lower cost and differentiation
c. Premium prices and differentiation
d. Premium prices and diversification
b. Lower cost and differentiation
4. Which of the following best describes the maturity stage of the industry life cycle?
a. Companies face increased rivalry due to slower growth and some firms exiting the sector
b. Companies reach maximum revenue, profits and cash flows because customer demand is
fairly high and consistent within the sector
c. Companies experience low rivalry due to high differentiation and innovation within the
sector
d. Companies encounter strong buyers due to low growth and standardized products within
the sector
b. Companies reach maximum revenue, profits and cash flows because customer demand is
fairly high and consistent within the sector
,d. Companies encounter strong buyers due to low growth and standardized products within
the sector
5. An organisation's general expression of its overall purpose is known as its:
a. Goal
b. Mission
c. Vision
d. Objective
b. Mission
6. Traditionally the typical clients of the beer industry were bars and restaurants. Recently
the beer industry began to sell less and less to these traditional clients, and more and more
to big retailers such as Carrefour and Aldi. This has the following effect:
a. It decreases the bargaining power of firms within the beer industry
b. It increases the bargaining power of firms within the beer industry
c. It has no effect on firms within the beer industry
d. It decreases the bargaining power of the clients purchasing from the beer industry
a. It decreases the bargaining power of firms within the beer industry
7. Which of the following is not a generic strategy according to M.E. Porter?
a. Cost leadership
b. Differentiation
c. Cost differentiation
d. Cost focus
c. Cost differentiation
8. According to the BCG Matrix, question marks are usually characterized by:
a. Low market growth, high market share
b. Low market growth, low market share
c. High market growth, low market share
d. High market growth, high market share
c. High market growth, low market share
9. Accor Group's analysis for the Saudi Arabian market reveals a high growth of the young
(16 to 31 years old) population. This information belongs to which of the following
components of the PESTEL framework?
a. Economic
b. Social
, c. Demographic
d. Socioeconomic
b. Social
10. What is the main goal of a differentiation strategy with price premium?
a. Increased market share
b. Increased cost leadership
c. Increased economies of scale
d. Increased margins
d. Increased margins
11. A store selling locally adapted products and paying a great deal of attention to cost
reduction is pursuing which of the following international strategies?
a. Global strategy
b. Multi-domestic strategy
c. Simple export strategy
d. Transnational strategy
d. Transnational strategy
12. The scenario approach for forecasting follows a process of five basic steps. Which of the
following is not one of these five steps:
a. Identifying the key drivers for change using PESTEL to uncover issues
b. Identifying impacts of alternative scenarios
c. Assigning scenarios based on the likelihood of growth rates obtained from
macroeconomic indicators
d. Monitoring progress over time to alert whether and how potential developments fit
scenario expectations
c. Assigning scenarios based on the likelihood of growth rates obtained from
macroeconomic indicators
13. Which of the following best describes a situation whereby clients are cutting out suppliers
who act as intermediaries:
a. Backwards vertical integration
b. Forward vertical integration
c. Horizontal integration
d. Forward diversification
a. Backwards vertical integration
