Strategic Management Questions and Answers Part-9

1. Managers should study international business because
a) international business comprises a large and growing portion of the worlds total business
b) global events and competition affect almost all companies
c) a company operating internationally will engage in modes of business that differ from those it is accustomed to domestically
d) all of the above

Answer: d

2. How is an organization most likely to secure and sustain a position of strength in its associated environment?
a) By seeking to influence and manage their external environment
b) By seeking to influence their competitors' environment
c) By seeking to influence and manage their internal environment
d) By seeking to restrict changes within their environment

Answer: a

3. What would NOT be a reason for a company to engage in international businessa
a) To maximize competitive risk
b) To acquire resources
c) To expand sales
d) To diversify sources of sales and supplies

Answer: a

4. Which of the following would not be considered a barrier to entry?
a) High innovation
b) Concentration of distribution channels
c) Steep experience curves
d) Concentration of suppliers

Answer: a

5. International business has grown rapidly in recent decades for all the following reasons EXCEPT
a) rapid expansion of technology
b) liberalization of governmental policies on cross-border movement of trade and resources
c) development of institutions to support and facilitate international trade
d) increased cost of labor in both the lesser-developed and developing countries

Answer: d

6. ______ is the collection of managerial decisions and actions that determine the long-run performance of an organization
a) planning
b) goal-oriented management
c) strategic management
d) leadership

Answer: c

7. Which one of the following is not a form of non-price competition?
a) Branding
b) Innovation
c) Advertising
d) None All of the above increase non-price competition

Answer: d

8. Why is strategic management important?
a) It has little impact on organizational performance
b) It is involved in many of the decisions that managers make
c) Most organizations do not change
d) Organizations are composed of similar divisions and functions

Answer: b

9. Which one of the following is not an aspect of the MOST analysis
a) Mission
b) Strategies
c) Tactics
d) Organization

Answer: d

10. ______ and ______ are outcomes from a study of the external environment
a) Threats and Weaknesses
b) Strengths and Weaknesses
c) Weights and Measures
d) Opportunities and Threats

Answer: d