51
Vocabulary Vocabulary training training Prof. Dr. E. Vatchkova Prof. Dr. E. Vatchkova
Vocabulary training Vocabulary training
Prof. Dr. E. VatchkovaProf. Dr. E. Vatchkova
1. Characteristically strategic decisions 1. Characteristically strategic decisions
usually include decisions which:usually include decisions which:
A.A. Have long term effectsHave long term effects
B.B. Involve significant changeInvolve significant change
C.C. Often require significant changeOften require significant change
D.D. Are not easily reversedAre not easily reversed
E.E. All of the aboveAll of the above
2. `Strategy Context` refers to:2. `Strategy Context` refers to:
A.A. Issues in the internal and external Issues in the internal and external setting of the organization which setting of the organization which shape the strategy and its shape the strategy and its formulationformulation
B.B. The strategy formulation processes The strategy formulation processes used by managersused by managers
C.C. The significant components of The significant components of business and corporate strategybusiness and corporate strategy
D.D. None of the aboveNone of the aboveE.E. All of the aboveAll of the above
3. When managers try to develop strategy by identifying 3. When managers try to develop strategy by identifying opportunities arising from an understanding of the environmental opportunities arising from an understanding of the environmental forces acting upon the firm and adapting resources so as to take forces acting upon the firm and adapting resources so as to take advantage of these opportunities, this is referred to as:advantage of these opportunities, this is referred to as:
A.A. Proactive development of strategy Proactive development of strategy processprocess
B.B. Strategy development by `stretch`Strategy development by `stretch`
C.C. SWOT analysisSWOT analysis
D.D. A `strategic fit` approach to developing A `strategic fit` approach to developing strategystrategy
E.E. None of the aboveNone of the above
4. When managers try to develop strategy by identifying 4. When managers try to develop strategy by identifying and leveraging the resources and competences of the and leveraging the resources and competences of the organization to yield new opportunities or provide organization to yield new opportunities or provide competitive advantage, this is referred to as:competitive advantage, this is referred to as:
A.A. Proactive development of strategy Proactive development of strategy processprocess
B.B. Strategy development by `stretch`Strategy development by `stretch`
C.C. A positioning strategyA positioning strategy
D.D. A `strategic fit` approach to developing A `strategic fit` approach to developing strategystrategy
E.E. Only two of A, B, C and D aboveOnly two of A, B, C and D above
5. Strategy Process is concerned with: 5. Strategy Process is concerned with:
A.A. How strategy is formulated, by what sort How strategy is formulated, by what sort of processof process
B.B. The decision making processes that are The decision making processes that are used by managers involved in developing used by managers involved in developing strategystrategy
C.C. Business Process Re-engineering Business Process Re-engineering strategiesstrategies
D.D. All of the aboveAll of the aboveE.E. Only two of A, B and C aboveOnly two of A, B and C above
6. `Strategy is the outcome of the continuing evolution of corporate 6. `Strategy is the outcome of the continuing evolution of corporate activity. It is identifiable from the pattern of steps and changes made activity. It is identifiable from the pattern of steps and changes made within the organization in a changing environment`within the organization in a changing environment`
A.A. Implies that a rational planned strategy Implies that a rational planned strategy process is desirableprocess is desirable
B.B. Describes an emergent/incrementalist Describes an emergent/incrementalist view of strategy processview of strategy process
C.C. Is only applicable to large corporationsIs only applicable to large corporations
D.D. Only some of the aboveOnly some of the above
E.E. All of A, B and C aboveAll of A, B and C above
7. Gerry Johnson`s view that, `Strategy is shaped by senior manager`s 7. Gerry Johnson`s view that, `Strategy is shaped by senior manager`s interpretations of events and actions, and is deeply influenced by the interpretations of events and actions, and is deeply influenced by the perspectives they use to make sense of situations`, suggests that:perspectives they use to make sense of situations`, suggests that:
A.A. Strategy is a product of the Strategy is a product of the organizational paradigmorganizational paradigm
B.B. Strategic Drift should not occurStrategic Drift should not occur
C.C. Past experience and received wisdom do Past experience and received wisdom do NOT influence strategyNOT influence strategy
D.D. All of the aboveAll of the above
E.E. Only two of A, B and C above Only two of A, B and C above
8. Strategic Drift occurs when an organisation`s 8. Strategic Drift occurs when an organisation`s strategy becomes gradually less relevant to its:strategy becomes gradually less relevant to its:
A.A. Its core competencesIts core competences
B.B. Its business objectivesIts business objectives
C.C. Its business environmentIts business environment
D.D. Its shareholders interestsIts shareholders interests
E.E. None of the aboveNone of the above
9. The technique of ****** is particularly useful in 9. The technique of ****** is particularly useful in dynamic business environments where the future dynamic business environments where the future may evolve in any one of a number of different may evolve in any one of a number of different directionsdirections
A.A. Business Process EngineeringBusiness Process Engineering
B.B. Strategic Group AnalysisStrategic Group Analysis
C.C. Scenario PlanningScenario Planning
D.D. Balanced Scorecard PlanningBalanced Scorecard Planning
10. If all 5 of Porter’s forces are favourable 10. If all 5 of Porter’s forces are favourable we can say that:we can say that:
A.A. The industry is likely to be profitableThe industry is likely to be profitable
B.B. The industry is NOT very attractiveThe industry is NOT very attractive
C.C. Rivalry amongst existing firms is highRivalry amongst existing firms is high
D.D. Bargaining power of buyers is highBargaining power of buyers is high
E.E. The threat of new entrants is highThe threat of new entrants is high
11. If all 5 of Porter’s forces are unfavorable 11. If all 5 of Porter’s forces are unfavorable we can say that:we can say that:
A.A. The industry is likely to be profitableThe industry is likely to be profitable
B.B. The industry is NOT very attractiveThe industry is NOT very attractive
C.C. The threat of new entrants is lowThe threat of new entrants is low
D.D. The threat of substitutes is highThe threat of substitutes is high
E.E. More than one of the aboveMore than one of the above
12. We can try to define the ‘Industry” to be 12. We can try to define the ‘Industry” to be considered in an industry analysis using?considered in an industry analysis using?
A.A. Differentiation analysisDifferentiation analysis
B.B. Stakeholder segmentationStakeholder segmentation
C.C. Strategic GroupsStrategic Groups
D.D. The BCG matrixThe BCG matrix
E.E. Only two of A, B, C and D aboveOnly two of A, B, C and D above
13. Analysis of linkages in the Value Chain 13. Analysis of linkages in the Value Chain and Value System, can identify:and Value System, can identify:
A.A. Potential cost advantagesPotential cost advantages
B.B. Potential differentiation advantagesPotential differentiation advantages
C.C. Both potential cost advantages and potential Both potential cost advantages and potential differentiation advantagesdifferentiation advantages
E. E. Potential focus advantagesPotential focus advantages
D. D. Both C and E aboveBoth C and E above
14. A ******** is set of linked business processes 14. A ******** is set of linked business processes (activities) that deliver superior value to customers (activities) that deliver superior value to customers (based on Stalk 1992):(based on Stalk 1992):
A.A. Value SystemValue System
B.B. Strategic CapabilityStrategic Capability
C.C. Business Process SystemBusiness Process System
D.D. Core CompetenceCore Competence
15. The extent of the competitive advantage 15. The extent of the competitive advantage capable of being established from Resources capable of being established from Resources and Capabilities depends on:and Capabilities depends on:
A.A. The scarcity of the resource/capabilityThe scarcity of the resource/capability
B.B. The relevance of the resource/capability for The relevance of the resource/capability for meeting customer needsmeeting customer needs
C.C. The extent to which the resource/capability can The extent to which the resource/capability can be easily imitatedbe easily imitated
D.D. All of the aboveAll of the above
E.E. Only two of A, B, and C aboveOnly two of A, B, and C above
16. According to the Johnson and Scholes 16. According to the Johnson and Scholes definition, Core Competences are those which are :definition, Core Competences are those which are :
A.A. Better than competitors and difficult to imitateBetter than competitors and difficult to imitate
B.B. Better than competitors and easy to imitateBetter than competitors and easy to imitate
C.C. Same as competitors and difficult to imitateSame as competitors and difficult to imitate
D.D. Same as competitors and easy to imitateSame as competitors and easy to imitate
E.E. None of the aboveNone of the above
17. Business level strategic choices are 17. Business level strategic choices are primarily concerned with:primarily concerned with:
A.A. Generic competitive strategiesGeneric competitive strategies
B.B. Decisions on alternative directions for Decisions on alternative directions for developmentdevelopment
C.C. Alternative methods for developmentAlternative methods for development
D.D. All of the aboveAll of the above
18. Which of the following is NOT true for a 18. Which of the following is NOT true for a cost leadership strategy?cost leadership strategy?
A.A. Competition is based on offering the lowest Competition is based on offering the lowest priceprice
B.B. The company must be the lowest cost The company must be the lowest cost producer in the industryproducer in the industry
C.C. Market leadership is an important objectiveMarket leadership is an important objective
D.D. High volume production of a standard product High volume production of a standard product is neededis needed
E.E. Both C and D above are not trueBoth C and D above are not true
19. ****** states: ‘The unit cost of value added to a 19. ****** states: ‘The unit cost of value added to a standard product declines at a constant % each time standard product declines at a constant % each time cumulative output doubles’cumulative output doubles’
A.A. The Law of ExperienceThe Law of Experience
B.B. The Law of Economies of ScaleThe Law of Economies of Scale
C.C. The Law of Product Value AddedThe Law of Product Value Added
D.D. Grant’ s Principle of Unit Production CostsGrant’ s Principle of Unit Production Costs
E.E. None of the aboveNone of the above
20. Differentiation is a generic strategy based 20. Differentiation is a generic strategy based on:on:
A.A. Focusing on specific parts of a marketFocusing on specific parts of a market
B.B. Entering different markets with your products Entering different markets with your products or servicesor services
C.C. Providing something unique that adds value in Providing something unique that adds value in the eyes of the customerthe eyes of the customer
D.D. Having different operations processes allowing Having different operations processes allowing very low costs and pricesvery low costs and prices
E.E. Two of A, B, C and D aboveTwo of A, B, C and D above
21. How many of the following are Drivers of Cost 21. How many of the following are Drivers of Cost Advantage? Advantage? Economies of Scale, Product design, Complementary Economies of Scale, Product design, Complementary services, Capacity Utilisation, Economies of Learningservices, Capacity Utilisation, Economies of Learning
A.A. 2 are Drivers of Cost Advantage2 are Drivers of Cost Advantage
B.B. 3 are Drivers of Cost Advantage3 are Drivers of Cost Advantage
C.C. 4 are Drivers of Cost Advantage4 are Drivers of Cost Advantage
D.D. 5 are Drivers of Cost Advantage5 are Drivers of Cost Advantage
E.E. None are Drivers of Cost AdvantageNone are Drivers of Cost Advantage
22. Which of the following is NOT true of the 22. Which of the following is NOT true of the ‘Strategy Clock’ approach to generic strategy ‘Strategy Clock’ approach to generic strategy options:options:
A.A. There is a Hybrid position involving both low cost and There is a Hybrid position involving both low cost and differentiationdifferentiation
B.B. There are a total of 8 possible positions on the clockThere are a total of 8 possible positions on the clock
C.C. Strategy Clock is considered to be a LESS market Strategy Clock is considered to be a LESS market oriented approach than Porter’s generic strategy modeloriented approach than Porter’s generic strategy model
D.D. 3 of the positions on the clock are ‘strategies destines 3 of the positions on the clock are ‘strategies destines for failure’for failure’
E.E. All of the above are trueAll of the above are true
23. Focused Differentiation:23. Focused Differentiation:
A.A. Appeals to what distinguishes different Appeals to what distinguishes different customer groupscustomer groups
B.B. Appeals to what is common between different Appeals to what is common between different customerscustomers
C.C. Focuses on the whole industryFocuses on the whole industry
D.D. All of the aboveAll of the above
E.E. Only two of A, B and C above Only two of A, B and C above
24. Growth, Spreading risk, and Profit are all 24. Growth, Spreading risk, and Profit are all management motives for diversification. Which of management motives for diversification. Which of these will always enhance shareholder value?these will always enhance shareholder value?
A.A. Spreading riskSpreading risk
B.B. ProfitProfit
C.C. GrowthGrowth
D.D. All of the aboveAll of the above
E.E. Both B and C aboveBoth B and C above
25. Porter’s essential tests for diversification 25. Porter’s essential tests for diversification decisions are:decisions are:
A.A. The attractiveness testThe attractiveness test
B.B. The cost of entry testThe cost of entry test
C.C. The better off testThe better off test
D.D. All of the aboveAll of the above
E.E. Only two of A, B and C aboveOnly two of A, B and C above
26. The corporate parent’s quest for synergy 26. The corporate parent’s quest for synergy should always be balanced against:should always be balanced against:
A.A. Increased central administration and Increased central administration and overheadsoverheads
B.B. Loss of SBU responsiveness through imposed Loss of SBU responsiveness through imposed central co-ordinationcentral co-ordination
C.C. Increased SBU responsiveness through Increased SBU responsiveness through imposed central co-ordinationimposed central co-ordination
D.D. All of the aboveAll of the above
E.E. Only two of A, B and C aboveOnly two of A, B and C above
27. The corporate centre (or parent) can add 27. The corporate centre (or parent) can add value to the corporation through:value to the corporation through:
A.A. Providing central administration, expertise and Providing central administration, expertise and servicesservices
B.B. Fostering innovation, coaching and learningFostering innovation, coaching and learning
C.C. Providing investment for new venturesProviding investment for new ventures
D.D. Only two of A, B and C aboveOnly two of A, B and C above
E.E. All of A, B and C aboveAll of A, B and C above
28. When the corporate parent acts in a ‘Synergy (or 28. When the corporate parent acts in a ‘Synergy (or competence) Manager’ role, which of the following competence) Manager’ role, which of the following ARE true?ARE true?
A.A. The parent adds value primarily by transferring skills The parent adds value primarily by transferring skills and competences between SBUsand competences between SBUs
B.B. The parent adds value primarily by balancing The parent adds value primarily by balancing resources and finance between SBUsresources and finance between SBUs
C.C. The parent adds value acquiring and divesting SBUs The parent adds value acquiring and divesting SBUs wiselywisely
D.D. None of the aboveNone of the above
E.E. All of the aboveAll of the above
29. Potential problems (or disadvantages) for 29. Potential problems (or disadvantages) for vertically integrated corporations include:vertically integrated corporations include:
A.A. Problems in the management of diverse Problems in the management of diverse business activitiesbusiness activities
B.B. Increased dependency on one industryIncreased dependency on one industry
C.C. Increased control over suppliers and marketsIncreased control over suppliers and markets
D.D. Better access to informationBetter access to information
E.E. Only two of the aboveOnly two of the above
30. The ‘Strategic Relatedness’ of two 30. The ‘Strategic Relatedness’ of two businesses refers to relatedness or similarity businesses refers to relatedness or similarity in terms of:in terms of:
A.A. The span for investment, and riskThe span for investment, and risk
B.B. Key success factorsKey success factors
C.C. Competitive positionsCompetitive positions
D.D. All of the aboveAll of the above
E.E. Only two of A, B and C aboveOnly two of A, B and C above
31. Portfolio planning models used in 31. Portfolio planning models used in Strategic management include the following:Strategic management include the following:
A.A. BCG Growth-Share MatrixBCG Growth-Share Matrix
B.B. GE/McKinsey MatrixGE/McKinsey Matrix
C.C. Porter’s Industry Analysis ModelPorter’s Industry Analysis Model
D.D. All of the aboveAll of the above
E.E. Only two of A, B and C aboveOnly two of A, B and C above
32. The following are potential 32. The following are potential problems/difficulties to be considered when problems/difficulties to be considered when using Portfolio planning models:using Portfolio planning models:
A.A. The models assume that there are NO linkages The models assume that there are NO linkages (synergies) between SBUs(synergies) between SBUs
B.B. The maximum number of SBUs considered on any one The maximum number of SBUs considered on any one matrix should generally not exceed 5matrix should generally not exceed 5
C.C. These models assume that there ARE important These models assume that there ARE important linkages (synergies) between SBUslinkages (synergies) between SBUs
D.D. Business School graduates tend to rely on these Business School graduates tend to rely on these models too muchmodels too much
E.E. Only two of the aboveOnly two of the above
33. The Strategic Planning style of corporate 33. The Strategic Planning style of corporate parenting. Goold and Campbell (1988) is one parenting. Goold and Campbell (1988) is one in which:in which:A.A. All strategic planning is carried out at SBU All strategic planning is carried out at SBU
level with very little involvement of the level with very little involvement of the corporate parentcorporate parent
B.B. The primary corporate influence is through The primary corporate influence is through budget and performance controlsbudget and performance controls
C.C. There is substantial corporate involvement in There is substantial corporate involvement in SBU planningSBU planning
D.D. None of the aboveNone of the above
34. Evaluating and selecting from strategic 34. Evaluating and selecting from strategic options involves assessments of:options involves assessments of:
A.A. Suitability and feasibilitySuitability and feasibility
B.B. Profitability, plan-ability and plausibilityProfitability, plan-ability and plausibility
C.C. Strategic logicStrategic logicD.D. All of the aboveAll of the above
E.E. Only two of A, B and C aboveOnly two of A, B and C above
35. The Balanced Scorecard (Kaplan & 35. The Balanced Scorecard (Kaplan & Norton) is:Norton) is:
A.A. A technique of balancing financial statementsA technique of balancing financial statements
B.B. A systematic approach to linking strategy to A systematic approach to linking strategy to performance indicatorsperformance indicators
C.C. A method of balancing resources across the A method of balancing resources across the organizationorganization
D.D. All of the aboveAll of the above
E.E. None of the aboveNone of the above
36. Generally a Balanced Scorecard 36. Generally a Balanced Scorecard approach will set objectives (goals) and approach will set objectives (goals) and measures from the following perspective:measures from the following perspective:A.A. Customer perspectiveCustomer perspective
B.B. Financial perspectiveFinancial perspective
C.C. Innovation and learning perspectiveInnovation and learning perspective
D.D. Internal business perspectiveInternal business perspective
E.E. All of the aboveAll of the above
37. In the ZOCD and ZOUD framework, used 37. In the ZOCD and ZOUD framework, used to identify the need for change, ZOCD stands to identify the need for change, ZOCD stands for:for:A.A. Zone of Continuous DevelopmentZone of Continuous Development
B.B. Zone of Complete DebateZone of Complete Debate
C.C. Zone of Capital DevelopmentZone of Capital Development
D.D. Zone of Comfortable DebateZone of Comfortable Debate
38. ‘ It should be borne in mind that there is nothing more 38. ‘ It should be borne in mind that there is nothing more difficult to handle, more doubtful of success, and more difficult to handle, more doubtful of success, and more dangerous to carry through, than initiating changes in a state’s dangerous to carry through, than initiating changes in a state’s constitution’ is a quote from ******** on political processesconstitution’ is a quote from ******** on political processes
A.A. Niccolo Machiavelli 1513Niccolo Machiavelli 1513
B.B. Tony Blair 1998Tony Blair 1998
C.C. George Washington 1785George Washington 1785
D.D. Winston Churchill 1940Winston Churchill 1940
E.E. Margaret Thatcher 1980Margaret Thatcher 1980
39. The following are elements of the Cultural 39. The following are elements of the Cultural Web:Web:
A.A. Control and reward systemsControl and reward systems
B.B. Power structure and distributionPower structure and distribution
C.C. Market segmentsMarket segments
D.D. All of the aboveAll of the above
E.E. Only two of A, B and C aboveOnly two of A, B and C above
40. The following are NOT ‘Levers of Change’ 40. The following are NOT ‘Levers of Change’ acting on the Cultural Web:acting on the Cultural Web:
A.A. Create new mythsCreate new myths
B.B. Change routines and start new ritualsChange routines and start new rituals
C.C. Enter new market segmentsEnter new market segments
D.D. Take symbolic action – ‘walk and talk’Take symbolic action – ‘walk and talk’
E.E. Change power structure, positions and Change power structure, positions and signalssignals
41. When Adding Value through acquiring 41. When Adding Value through acquiring another organization, the ‘Sweat’ value is another organization, the ‘Sweat’ value is normally defends as:normally defends as:A.A. The value released through pure cost The value released through pure cost
reduction, or asset salesreduction, or asset sales
B.B. The value generated by additional work from The value generated by additional work from employees fearing redundancyemployees fearing redundancy
C.C. The additional value in the acquisitions market The additional value in the acquisitions market opportunitiesopportunities
D.D. All of the aboveAll of the above
E.E. Only two of A, B and C aboveOnly two of A, B and C above
42. Which of the following is NOT normally 42. Which of the following is NOT normally considered to be a stage in the acquisition considered to be a stage in the acquisition process:process:A.A. Strategy and objectives – clarificationStrategy and objectives – clarification
B.B. Search – for possible targetsSearch – for possible targets
C.C. The deal and negotiationThe deal and negotiation
D.D. IntegrationIntegration
E.E. Launch Launch
43. Which of the following is NOT one of the 6 43. Which of the following is NOT one of the 6 alliance objectives identified by Preece alliance objectives identified by Preece (1995)?(1995)?A.A. LearningLearning
B.B. LeadingLeading
C.C. LeaningLeaning
D.D. LeveragingLeveraging
E.E. Leaping Leaping
44. Good practice in managing innovation 44. Good practice in managing innovation risks includes which of the following:risks includes which of the following:
A.A. Co-operation with key future usesCo-operation with key future uses
B.B. Limiting exposure to costsLimiting exposure to costs
C.C. Minimizing flexibility (eg in response to new Minimizing flexibility (eg in response to new information)information)
D.D. All of the aboveAll of the above
E.E. Only two of A, B and C aboveOnly two of A, B and C above
45. The emergence of technical ‘standards’ 45. The emergence of technical ‘standards’ and dominant product design is a key point in and dominant product design is a key point in the innovation/diffusion process because:the innovation/diffusion process because:A.A. Network effects can dramatically increase the Network effects can dramatically increase the
cost to costumers of switchingcost to costumers of switchingB.B. Innovation tends to become less radical and Innovation tends to become less radical and
more incrementalmore incrementalC.C. There is a change of emphasis with ‘process’ There is a change of emphasis with ‘process’
innovation increasing in importanceinnovation increasing in importanceD.D. All of the aboveAll of the aboveE.E. Only two of A, B and C aboveOnly two of A, B and C above
46. The theory of ******** states that: ‘A country is relatively 46. The theory of ******** states that: ‘A country is relatively efficient in the production of those products which make efficient in the production of those products which make intensive use of resources which are available in relative intensive use of resources which are available in relative abundance within the country’:abundance within the country’:A.A. Competitive advantageCompetitive advantage
B.B. International tradeInternational trade
C.C. GlobalizationGlobalization
D.D. Comparative advantageComparative advantage
47. The effect of the ‘national environment’ on 47. The effect of the ‘national environment’ on international competitive advantage includes international competitive advantage includes factors such as :factors such as :A.A. National resources and capabilitiesNational resources and capabilities
B.B. Government policiesGovernment policies
C.C. Related and supporting industries Related and supporting industries (national)(national)
D.D. Only two of A, B and C aboveOnly two of A, B and C above
E.E. All of A, B and C aboveAll of A, B and C above
48. Shareholder value can be assessed 48. Shareholder value can be assessed though measuring:though measuring:
A.A. EVA – Economic Value AddedEVA – Economic Value Added
B.B. MVA – Market Value AddedMVA – Market Value Added
C.C. CVA – Corporate growth Value AddedCVA – Corporate growth Value Added
D.D. All of the aboveAll of the above
E.E. Only two of A, B and C aboveOnly two of A, B and C above
49. Calculate Market Value Added (MVA) from some of the 49. Calculate Market Value Added (MVA) from some of the following variables and select the correct answer:following variables and select the correct answer:
Variables:Variables: Operating profit =Operating profit =200M200MTax =Tax =£75M£75MInterest cost = £25MInterest cost = £25MShareholders equity = £400MShareholders equity = £400MCost of equity is estimated at 15%Cost of equity is estimated at 15%Current stock price = £90Current stock price = £90Number of shares issued = 1MNumber of shares issued = 1MShareholder’s original equity investment =£40MShareholder’s original equity investment =£40M
A.A. MVA = MVA = £130M£130M
B.B. MVA = £40MMVA = £40M
C.C. MVA = £50MMVA = £50M
D. MVA = £300M
E. None of the above
50. A stakeholder mapping:50. A stakeholder mapping:
A.A. Identifies stakeholder investmentIdentifies stakeholder investment
B.B. Identifies stakeholder powerIdentifies stakeholder power
C.C. Helps in establishing political priorities Helps in establishing political priorities and managing stakeholder interestsand managing stakeholder interests
D.D. All of the aboveAll of the above
E.E. Only two of A, B and C aboveOnly two of A, B and C above
