BU470 : Strategic Management
Question 1
Green Frog is an environmentally friendly firm in the cosmetics industry that has decided to undertake a strategic planning project. It wants to ensure that it performs the process correctly and so intends to start the process with the first step of the strategic planning process. This step is:
defining its mission.
setting objectives.
measuring performance.
defining its business level strategy.
Question 2
The ___________ ratio signals a greater risk of bankruptcy as it increases.
debt to equity
quick ratio
debt to assets
cash flow per share
Question 3
All other things being equal, which of the following would lead to lower barriers to entry in an industry?
The existence of economies of scale in the industry.
Products are highly differentiated in the industry.
Industry incumbents have learning-curve cost advantages.
Raw materials are widely and readily available at a competitive price.
Question 4
_______ are resources required to successfully compete in an industry.
Strategically valuable assets
Technological leader strategies
Process innovations
Product innovations
Question 5
Inputs whose quantity of supply is fixed and does not respond to price increases are said to be:
elastic in supply.
inelastic in supply.
elastic in demand.
perfectly competitive.
Question 6
Firms for whom the price of the products or services they sell is determined by market conditions and not by the individual decision of the firms are known as:
profit takers.
price makers.
price takers.
profit makers.
Question 7
In general, firms selling differentiated products face a demand curve that is:
upward sloping.
horizontal.
vertical.
downward sloping.
Question 8
In reality, strategic choices are often made over time, in a ________ manner.
planned
staged
deliberate
flexible
Question 9
Which of the following is NOT a way to create economic profits through collusion?
Colluding to increase the bargaining power of buyers.
Colluding to reduce the threat of new competitors.
Colluding to reduce the threat of current competitors.
Colluding to reduce supplier leverage threats.
Question 10
_______ exists when a firm is unfairly exploited in an exchange.
Competitive advantage
Business level strategy
Opportunism
Corporate level strategy
