MAN 4720 Strategic Planning &
Management UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Which of the following is most likely to raise concerns for a manager who is conducting a Five
Forces Analysis for his firm?
A. News reports that a leading firm in a related industry is looking for opportunities to use its
growing cash stockpile for expansion.
B. News reports that his industry is experiencing rapid growth in the demand for its product.
C. News reports that a product many consider to be a substitute for his product appears to be
losing appeal among its customers.
D. News reports that the number of firms that supply one of his firm's primary inputs is growing.
- Correct answers✔✔News reports that a leading firm in a related industry is looking for
opportunities to use its growing cash stockpile for expansion.
An important factor in determining the strength of buyer bargaining power is:
the existence of an industry leader.
the existence of switching costs.
the rate of growth in the industry.
,the critical mass of the industry.
the existence of barriers to entry. - Correct answers✔✔the existence of switching costs.
Broad differentiation strategies are well-suited for market circumstances where
A. barriers to entry are high and suppliers have a low degree of bargaining power
B. there are many ways to differentiate the product or service that have value to buyers.
C. most buyers have the same needs and use the product in the same ways.
D. buyers are susceptible to clever advertising.
E. price competition is especially vigorous - Correct answers✔✔B. there are many ways to
differentiate the product or service that have value to buyers.
Business-level (or competitive) strategy, as distinct from corporate strategy) is mainly about:
A. deciding what business model to employ in each of the company's different businesses
B. determining how the firm will maximize profitability in a single market or line of business.
C. coordinating the competitive approaches of a company's different business units.
,D. making sure the strategic intent of a particular business unit or division is in step with the
company's overall strategic intent and strategy.
E. deciding what new businesses to enter, which existing businesses to get out of, and which
existing business to remain in. - Correct answers✔✔B. determining how the firm will maximize
profitability in a single market or line of business.
According to Porter, in most corporations, managers are most concerned with
A. how best to influence or change their macroenvironment.
B. how to deal with government regulations and subsidies.
C. how to deal with competitors in their own industry.
D. all of the above.
E. none of the above - Correct answers✔✔C. how to deal with competitors in their own industry.
Strategic trade-offs can occur when:
A. a firm trades its differentiation strategy in for a low-cost strategy.
B. a firm trades its low-cost strategy in for a differentiation strategy.
, C. the desires and objectives of the owners and managers of a firm conflict.
D. a firm chooses to serve its chosen customers better than any of its rivals even if customers
with different needs go unserved.
E. all of the above. - Correct answers✔✔D. a firm chooses to serve its chosen customers better
than any of its rivals even if customers with different needs go unserved.
In order to enjoy long term success and profitability, a firm must create ____________________.
A. value for its customers
B. lower prices for its products
C. more customers than its competitors create
D. a mission statement
E. opportunities to merge with other firms. - Correct answers✔✔Value for its customers
SWOT stands for _____. - Correct answers✔✔strengths, weaknesses, opportunities, threats
The primary focus of strategic management is on
Management UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Which of the following is most likely to raise concerns for a manager who is conducting a Five
Forces Analysis for his firm?
A. News reports that a leading firm in a related industry is looking for opportunities to use its
growing cash stockpile for expansion.
B. News reports that his industry is experiencing rapid growth in the demand for its product.
C. News reports that a product many consider to be a substitute for his product appears to be
losing appeal among its customers.
D. News reports that the number of firms that supply one of his firm's primary inputs is growing.
- Correct answers✔✔News reports that a leading firm in a related industry is looking for
opportunities to use its growing cash stockpile for expansion.
An important factor in determining the strength of buyer bargaining power is:
the existence of an industry leader.
the existence of switching costs.
the rate of growth in the industry.
,the critical mass of the industry.
the existence of barriers to entry. - Correct answers✔✔the existence of switching costs.
Broad differentiation strategies are well-suited for market circumstances where
A. barriers to entry are high and suppliers have a low degree of bargaining power
B. there are many ways to differentiate the product or service that have value to buyers.
C. most buyers have the same needs and use the product in the same ways.
D. buyers are susceptible to clever advertising.
E. price competition is especially vigorous - Correct answers✔✔B. there are many ways to
differentiate the product or service that have value to buyers.
Business-level (or competitive) strategy, as distinct from corporate strategy) is mainly about:
A. deciding what business model to employ in each of the company's different businesses
B. determining how the firm will maximize profitability in a single market or line of business.
C. coordinating the competitive approaches of a company's different business units.
,D. making sure the strategic intent of a particular business unit or division is in step with the
company's overall strategic intent and strategy.
E. deciding what new businesses to enter, which existing businesses to get out of, and which
existing business to remain in. - Correct answers✔✔B. determining how the firm will maximize
profitability in a single market or line of business.
According to Porter, in most corporations, managers are most concerned with
A. how best to influence or change their macroenvironment.
B. how to deal with government regulations and subsidies.
C. how to deal with competitors in their own industry.
D. all of the above.
E. none of the above - Correct answers✔✔C. how to deal with competitors in their own industry.
Strategic trade-offs can occur when:
A. a firm trades its differentiation strategy in for a low-cost strategy.
B. a firm trades its low-cost strategy in for a differentiation strategy.
, C. the desires and objectives of the owners and managers of a firm conflict.
D. a firm chooses to serve its chosen customers better than any of its rivals even if customers
with different needs go unserved.
E. all of the above. - Correct answers✔✔D. a firm chooses to serve its chosen customers better
than any of its rivals even if customers with different needs go unserved.
In order to enjoy long term success and profitability, a firm must create ____________________.
A. value for its customers
B. lower prices for its products
C. more customers than its competitors create
D. a mission statement
E. opportunities to merge with other firms. - Correct answers✔✔Value for its customers
SWOT stands for _____. - Correct answers✔✔strengths, weaknesses, opportunities, threats
The primary focus of strategic management is on
