Faculty of Economics

INTERNATIONAL BURCH UNIVERSITY

FACULTY OF ECONOMICS

DEPARTMENT OF MANAGEMENT

STRATEGIC MANAGEMENT

GRADE :......

MIDTERM EXAM QUESTIONS

Duration: 90 minutes November 9, 2010

Among ten questions written below, choose and answer 5 of them. (10 points per each question)

1) Describe the strategic management process. What does it mean to manage strategically? 2) How are the three types of organizational strategies different? 3) Define stakeholders. Describe some potential organizational stakeholders. Why are stakeholders important? 4) Discuss the major barriers to entry. 5) Compare the general versus the specific environment. 6) Describe the benefits of conducting an external analysis. 7) Define the steps in the identification of distinctive organizational capabilities. 8) Describe some product strategies. 9) Explain the disadvantages of being a first mover organization. 10) Into the boxes write four support and five primary activities of Porter’s Value Chain and give example for each activities. 11) The following are all features of strategic management except E) corporate social responsibility. A) interdisciplinary B) external focus C) internal focus D) future direction 20) An external analysis enables the organization to examine E) All of the answer choices are correct. A) opportunities and threats. B) strengths and weaknesses. 12) Types of strategies within organizations include C) product substitution and durability. A) corporate strategies. D) manufacturing and operations. B) functional strategies. E) None of the answer choices is correct. C) competitive strategies. D) All of the answer choices are correct. 21) Which of the following would be examples of sectors that E) None of the answer choices is correct. could be found in the specific environment? A) Demographics 13) Situation analysis allows the organization to examine B) Competitors A) external factors only. C) Economics B) internal factors only. D) Political/legal C) the organization's top management only. E) All of the answer choices are correct. D) both external and internal factors. E) None of the answer choices is correct. 22) Which of the following is not one of the five competitive forces? 14) The basic activities of strategic management include A) Competition forms substitute products A) offense, defense, and control. B) The threat of potential entry B) situation analysis, strategy formulation, strategy C) The strength of industry forces implementation, and strategy evaluation. D) The bargaining power of buyers C) development, control, and management. E) None of the answer choices is correct. D) ethics, management, and practice. E) None of the answer choices is correct. 23) The Porter five forces model includes all of the following factors except 15) Which of the following factor(s) is(are) considered to make an A) bargaining power of suppliers. organization's resources unique? B) threat of new entrants. A) Durability C) threat of a decrease in research and development. B) Imitability D) threat of substitute products. C) Quality E) bargaining power of buyers. D) Efficiency E) Effectiveness 24) One of the factors that shapes the definition of exit barriers as factor(s) that keep companies competing in businesses even when 16) Experiences, characteristics, and knowledge are all aspects that those businesses are failing is represent A) economic factors. A) financial resources. B) strategic factors. B) intangible resources. C) emotional factors. C) human resources. D) All of the answer choices are correct. D) physical resources. E) None of the answer choices is correct. E) structural resources. 25) A buyer will have less bargaining power if all of the following 17) ______is the process of taking a creative idea and turning it factors apply except into a product or process that can be used or sold. A) buyers have limited information. A) Technology B) buyers face few switching costs. B) Innovation C) the products purchased are highly differentiated and unique. C) Invention D) buyers do not have the ability to manufacture the products. D) Discovery E) buyers purchase small volumes of the products. E) All of the answer choices are correct 26) An internal analysis involves an examination of 18) The ______should elaborate a purpose for the organization. A) the organization's current vision. A) vision B) the organization's mission. B) competitive strategy C) the organization's strategic objectives. C) mission D) the organization's strategies. D) strategy E) None of the above answer choices are true. E) None of the answer choices is correct. 27) Resources that the organization possesses and capabilities that 19) A ______statement is a statement of what specific the organization has developed, both of which can be developed organizational units do and what they hope to accomplish. into a sustainable competitive advantage, are known as A) vision. A) weaknesses. B) strategy. B) strengths. C) technology. C) opportunities. D) mission. D) threats. E) None of the answer choices is correct. D) It identifies strengths and weaknesses and it assists in decision making. E) Answers B and D are correct.

32) Human resource management strategies regarding employee separations include all of the following except A) downsizing. 28) Resources that are lacking or deficient and that prevent the B) hiring freezes. organization from developing a sustainable competitive advantage, C) organizing for efficiency or innovation. are known as D) preferential or nonpreferential rehiring process. A) weaknesses. E) None of the answer choices is correct. B) strengths. Answer: C C) opportunities. D) threats. 33) Strategy evaluation involves E) None of the answer choices is correct. A) looking at what was done. B) what was supposed to be done. 29) The internal audit answers the questions of C) assessing any variances. A) Do the various functions have the needed resources to perform D) trying to determine what happened. their assigned work activities? E) All of the answer choices are correct. B) How well do they perform these assigned work activities? C) What are the organization's primary opportunities and threats? 34) Which of the following is included under the product D) possessing the needed resources and then performing assigned functional strategies? work activities. A) Marketing E) None of the answer choices is correct. B) Management C) Supervision 30) Which of the following is one of the basic organizational D) Leadership functions managers should examine during an internal audit? E) Control A) Production-operations B) Marketing C) Financial-accounting 35) Strategy evaluation at the ______level involves using D) Information systems ______and ______performance measures for each area. E) All of the answer choices are correct A) functional; quantitative; qualitative B) marketing; quantitative; qualitative 31) Why is an internal analysis important? C) management; financial; quantitative A) It is the only way to identify an organization's strengths and D) research and development; quantitative; qualitative weaknesses. E) None of the answer choices is correct. B) It is needed for making good strategic decisions. C) It establishes organizational goals. (25q. x 2 p.)