Strategic Management Test Bank

Choose the correct answer:

1) A broad guideline for decision-making that links the formulation of strategy within its
implementation
a-Policy
b-Budget
c-Strategy
d-Program
2) Process by which strategies and policies are put into action through the development of
programs, budgets and procedures
a-Strategy implementation
b-Environmental Scanning
c-Strategy Formulation
d-Evaluation & control
3) Statement of the activities or steps needed to accomplish a single-use plan making a
strategy “action-oriented”
a-Policy
b-Budget
c-Strategy
d-Program

4) Statement of the corporation’s programs in terms of dollars listing the detailed cost of each
program
a-Policy
b-Budget
c-Standard Operating Procedures (SOPs)
d-Program
5) A system of sequential steps or techniques that describe in details how a particular task/job
is to be done
a-Policy
b-Budget
c-Standard Operating Procedures (SOPs)
d-Program
6) Process in which corporate activities and performance results are monitored so that actual
performance can be compared with the desired performance
a-Strategy implementation
b-Environmental Scanning
c-Strategy Formulation
d-Evaluation & control
7) Decisions that deal with long-run future of a company and are rare, consequential and
directive
a-Strategic decisions
b-Routine decisions
c-Programmed decisions
d-Operating decisions

1. Which of the following is NOT a part of strategic management?

a. Environmental scanning
b. Strategy formulation
c. Strategy implementation
d. Performance measurement

2. Which of the following is the FIRST step in the strategic management process?

a. Define the mission and vision.

b. Conduct an environmental scan.
c. Set strategic objectives.
d. Develop implementation plans.
3. A company identifies a new competitor entering its market with new, state-of-the-art
technology. Which SWOT analysis element does this represent?
a) Strength
b) Weakness
c) Opportunity
d) Threat

4. Which of the following is NOT a typical characteristic of the implementation phase of

strategic management?
a) Development of budgets and programs
b) Delegation of tasks to lower-level managers.
c) Continuous monitoring and evaluation
d) Frequent changes to the overall strategy

5. Which of the following scenarios best explains the concept of "strategic flexibility"?
a) A company investing heavily in research and development to adapt to
emerging technologies.
b) A retailer consistently offering the lowest prices in its market segment.
c) A manufacturer establishing long-term contracts with suppliers to secure
raw materials.
d) A service provider offering the same standardized service offerings
across all customers.

6. Which of the following factors is NOT a key element of "creating a learning

organization"?
a) Encouraging experimentation and risk-taking
b) Facilitating knowledge sharing and transfer
c) Implementing rigid performance metrics
d) Fostering a culture of continuous learning

7. Which best describes the relationship between globalization and strategic management?
a) Globalization simplifies the strategic landscape by removing
geographical barriers.
b) Globalization requires companies to adapt their strategies to diverse
markets and regulations.
c) Globalization makes strategic planning less important due to increased
interconnectedness.
 d) Globalization only impacts large multinational corporations, not small
businesses.

8. Sustainability is increasingly becoming a strategic concern for businesses primarily

because of:
a) Pressure from regulatory bodies.
b) Increased demand from environmentally conscious consumers
c) Opportunities for cost savings through resource efficiency
d) All of the above

9. ABC company aims to become a market leader in eco-friendly products. This statement
refers to which element of strategy formulation?
a. Budgets
b. Mission statement
c. Objectives
d. Programs

10. Nike decided to outsource its manufacturing to improve efficiency and reduce costs.
What aspect of strategy implementation is being emphasized?
a. Budgeting
b. Program
c. Standard Operating Procedures
d. Policy

11. A company's actual performance consistently falls short of its desired performance
despite implementing strategic plans. What is the primary purpose of evaluation and
control in this situation?
a. To allocate budgets effectively
b. To monitor and take corrective action.
c. To develop long-range plans
d. To define the corporate mission

12. Unilever invests in developing carbon-friendly products using new technologies. What
type of risk related to environmental sustainability is the company addressing?
a. Regulatory Risk
b. Product and Technology Risk
 c. Reputational Risk
d. Supply Chain Risk

13. Siemens, a large electronics company, establishes a global knowledge-sharing network to

quickly spread information technology. This initiative aligns with which concept related
to organizational adaptation?
a. Vertical Organization
b. Horizontal Organization
c. Learning Organization
d. Strategic Flexibility

14. A corporation successfully transitions from a low-cost strategy to a differentiation

strategy to adapt to changing market demands. What concept is demonstrated by this
strategic shift?
a. Strategic Management
b. Learning Organization
c. Strategic Flexibility
d. Environmental Scanning

15. Coca-Cola identifies a new technology that could significantly enhance its production
process. What part of environmental scanning is the company actively engaged in?
a. Monitoring external threats
b. Evaluating internal weaknesses.
c. Disseminating information.
d. Identifying external opportunities.

16. A company aims to enhance its customer service by introducing a new CRM system.
Which component of strategy implementation is involved in this strategy?
a. Budgeting
b. Program development.
c. Standard operating procedures
d. Procedures for evaluating and control.
 17. XYZ company undergoes a shift where lower-level managers actively contribute to
strategic decisions. In which phase of strategic management is this participatory approach
typically observed?
a. Phase 1 (Basic Financial Planning)
b. Phase 2 (Forecast-Based Planning)
c. Phase 3 (Externally Oriented Planning)
d. Phase 4 (Strategic Management)

18. Palma, an Egyptian clothing company, adapts its marketing strategy from online to
offline channels due to a shift in consumer behavior. What concept is exemplified by this
strategic adaptation?
a. Strategic Management
b. Learning Organization
c. Strategic Flexibility
d. Environmental Scanning

1- The ___________ environment consists of variables that are outside the organization and not
typically within the short-run control of top management.
A) Internal environment
B) External environment
C) Environmental scanning
D) Strategic factors

2- The type of environment which directly affect the organization. It includes elements such as:
government, suppliers, customers and competitors is:
A) Natural environment
B) Societal environment
C) Task environment
D) Ecological environment

3- Changes in oil prices have high impact on several industries such as automobile and
shipping. This is an example of:
A) Economic forces
B) Sociocultural forces
C) Technological forces
D) Political-legal forces

4- Increase in interest rates, GDP rates and unemployment rates is an example of _____ forces
while changes in lifestyles, heath care and birthrate levels are example of ________ forces.
A) Sociocultural, Political-legal
 B) Technological, Sociocultural
C) Economic, Technological
D) Economic, Sociocultural

5- Digital technology allows movies and music to be available instantly over the internet which
affects video rental shops. This is an example of:
A) Economic forces
B) Sociocultural forces
C) Technological forces
D) Political-legal forces

6- High levels of taxation and government bureaucracy in some countries may push investors to
relocate their businesses to other locations. This is an example of:
A) Economic forces
B) Sociocultural forces
C) Technological forces
D) Political-legal forces

7- __________ a group of firms that produces similar products or services.

A) Industry
B) Internal environment
C) External environment
D) Strategic group

8- When a client believe that it is difficult to him to change from Mobinil to Etisalat. This is an
example of what type of entry barrier?
A) Cost disadvantage due to size
B) Economies of scale
C) Switching cost
D) Capital requirements

9- When Coca-Cola uses heavy advertising to support its strong brand name against its
competitors like Pepsi in the market is an example of:
A) Rivalry among existing firms
B) Switching costs
C) Threat of substitutes
D) Differentiation

10- When Juhayna decided to stop dealing with farmers and establish its own farm. This is an
example of_______
A) Threat of substitutes
 B) Threat of bargaining power of buyer
C) Threat of bargaining power of supplier
D) Rivalry among existing competitors

11- In 1973 war when Gulf countries decided to stop supplying oil to the foreign countries. This
is an example of________
A) Threat of substitutes
B) Threat of bargaining power of supplier
C) Threat of bargaining power of buyer
D) Rivalry among competitors
12- When WTO imposes rules to prohibit the provision of subsidies on national agriculture
products. This represents which kind of threat to local exporters.
A) Bargaining power of buyer
B) Bargaining power of supplier
C) Relative power of other stakeholders
D) Rivalry among existing competitors

13- A sugar company worried that consumers may buy artificial sweetener instead of sugar is
concerned about the ____________
A) Threat of new entrants
B) Rivalry among existing firms
C) Threat of substitutes
D) Bargaining power of buyers

14- The relationship that illustrate the term complementor is _____________

A) Microsoft and Intel
B) General motors and Ford
C) Sugar and artificial sweetener
D) Toshiba and Dell

15- The issues priority matrix used in environmental scanning is composed of two axis or
dimensions which are labeled
a. Importance to the industry and likelihood of occurrence
b. Industry growth rate and probable competitive position
c. Probability of occurrence and probable impact on the corporation
d. Probable industry attractiveness and business strength/ competitive position

16- According to porter, a low force can be regarded as a(n)

a. Benefit
b. Opportunity
c. Threat
 d. Risk

17- Which barrier to entry uses cost advantages associated with large size?
a. Switching costs
b. Capital requirements
c. Disadvantages independent of size
d. Economies of scale

18- The collective strength of the interaction of the five competitive forces determine
a. The level of government action in an industry
b. The probable industry attractiveness and business strength position
c. The ultimate profit potential in the industry
d. The aggregate level of demand for a product line

1. What is the primary focus of organizational analysis?

A) Identifying external opportunities
B) Assessing internal strengths and weaknesses
C) Developing marketing strategies
D) Expanding into new markets
Answer: B)

2. Which of the following is NOT considered a tangible asset in organizational analysis?

A) Plant
B) Technology
C) Finances
D) Equipment
Answer: B)

3. Which framework assesses resources based on value, rarity, imitability, and organization?
A) SWOT Analysis
B) STEEP Analysis
C) VRIO Framework
D) Porter's Five Forces
Answer: C)
4. What determines the sustainability of a competitive advantage according to the provided
information?
A) Rate of imitation
B) Rate of innovation
C) Rate of globalization
D) Rate of market expansion
Answer: A)

5. Which business model offers its basic product or service for free to users to generate
revenue from advertising?

A) Customer Solutions Model

B) Profit Pyramid Model
C) Advertising Model
D) Switchboard Model
Answer: C)

6. What is the primary focus of industry value chain analysis?

A) Internal activities of the organization
B) Identifying customer needs
C) Assessing competitor strategies
D) Evaluating value-creating activities from raw material to distribution
Answer: D)

7. Which factor determines whether a competency is considered a core competency?

A) Transparency
B) Transferability
C) Distinctiveness
D) Replicability
Answer: C)

8. What determines whether a company's resources can lead to a sustainable competitive

advantage according to the VRIO framework?
A) Rarity and organization
B) Value and imitability
C) Value and rarity
D) Imitability and organization
Answer: B)

9. In the sustainability of a competitive advantage, what does durability refer to?

A) The rate at which a firm's resources depreciate
B) The rate at which competitors imitate resources
C) The rate of innovation within the industry
D) The rate of globalization affecting the market
Answer: A)

10. Which type of business model focuses on providing specialized products or services to
market niches?
A) Profit Pyramid Model
B) Efficiency Model
C) Entrepreneurial Model
D) De Facto Industry Standard Model
Answer: C)
 11. What is the primary function of support activities in the corporate value chain?
A) Identifying core competencies
B) Ensuring effective marketing and sales
C) Providing installation and repair services
D) Ensuring primary value chain activities operate efficiently
Answer: D)
12. What is the purpose of the VRIO framework in organizational analysis?
A) To assess external opportunities and threats
B) To evaluate the organization's internal strengths and weaknesses
C) To identify key stakeholders in the industry
D) To analyze industry trends and market demand
Answer: B)

13. Which type of business model focuses on generating revenue through the sale of
expertise to solve customer problems?
A) Profit Pyramid Model
B) Customer Solutions Model
C) Advertising Model
D) Efficiency Model
Answer: B)

14. What is the primary focus of industry value chain analysis?

A) Assessing internal processes and operations
B) Evaluating competitor strategies
C) Identifying customer needs and preferences
D) Analyzing value-creating activities from raw material to distribution
Answer: D)
 15. Which organizational structure is most suitable for large corporations with multiple
product lines in unrelated industries?
A) Functional structure
B) Simple structure
C) Divisional structure
D) Conglomerate structure
Answer: D)
The collection of competencies that crosses divisional boundaries, something a company can
do exceedingly well.
A) Core competency
B) Competency
C) Distinctive competency
D) All of the above

2- Holmes burger offers high quality burgers, great customer service however its delivery is not
very reliable, according to the 5 step approach to strategy analysis, the management should:
A) Stop delivering and focus on dine in service only
B) Invest more in its delivery equipment and staff members
C) Leave everything as it is and maintain the status quo
D) None of the above

3- The sustainability of a competitive advantage is determined by:

A) Durability
B) Imitability
C) Transparency
D) A & B
E) A, B & C

4- Slow cycle resources are ________ while fast cycle resources are ________
A) Standardized mass production, Patented
B) Patented, easily duplicated
C) Strongly shielded, Patented
D) None of the above

5- Consultancy firms follow ________ business model while Amazon & E-bay use ________
A) Customer solutions model, switchboard model
B) Advertising model, multi component model
C) Efficiency model, multi component model
D) None of the above
6- Kleenex and Hoover are an example of which business model?
A) Efficiency model
B) Blockbuster model
C) De facto standard model
D) Profit multiplier model

7- For Unilever __________ is considered a strength whilst __________ is considered a

weakness
A) Strong Marketing Team, Over diversification
B) Strong brand name, competition with P&G
C) Strong Market Demand for fast moving consumer goods in Egypt, Over diversification
D) Strong Marketing Team, Economic recession due to Corona virus

8-Part of the industry value chain that is most important to the company
A) Upstream activities
B) Downstream activities
C) Center of gravity
D) All of the above

9-Primary activities in a corporate value chain include

A) Inbound logistics
B) Operations
C) Outbound logistics
D) Procurement
E) A, B & C
F) B,C & D

10-An organizational structure suitable for medium-sized firms with several product lines in one
industry. Employees tend to be specialists in business functions.
A) Functional structure
B) Divisional structure
C) Strategic Business Unit structure
D) Conglomerate structure

11- Mansour group is a well-diversified corporation in unrelated industries ranging from cars
(Mansour Chevrolet) to dairy products (Labanita), its organizational structure is most likely:
A) Divisional
B) Functional
C) Strategic Business Units
D) Conglomerate

12- TQM in Toyota and R&D in HP are the core:

A) Corporate strategy
B) Corporate culture
C)Cultural integration
D)All of the above

13-Cultural intensity:
A) shows the depth of a culture
B) Doesn’t reflect the breadth of the culture
C) Is an attribute of corporate culture
D)All of the above
E) None of the above
14- Product, Price, Promotion & Place reflect:
A) Market segmentation
B) Market position
C)Marketing mix
D)All of the above
E) None of the above

15- __________ is when a new technology cannot be used to enhance current technology, but
substitutes for the technology to yield better performance
A) Technology discontinuity
B) Technology Transfer
C) Technological Competence
D)All of the above
E) None of the above

16-Continuous systems:
A) Have higher fixed costs
B) Takes longer to reach the breakeven point
C) Can benefit from economies of scale
D) All of the above
E) A & B

17- __________ can be used to build capacity ahead of demand in order to achieve a lower unit
cost to pressure competitors and create more demand and market share.
A) Operating leverage
B) Experience Curve
C) Intermittent systems
D)Continuous systems

18-Information network within an organization that also has access to the external worldwide
Internet
A) Intranet
B) Extranet
C)Internet
D)All of the above

19-Groups of geographically and/or organizationally dispersed coworkers that are assembled

using a combination of telecommunications and information technologies to accomplish an
organizational task
A) Cross functional teams
B) Virtual teams
C) Temporary workers
D) Human diversity
20-Putting isolated specialists together to work and compare notes in a collective product design
effort is:
A) Concurrent engineering
B) Process engineering
C)Virtual team
D)Cross functional team

17- Strategy formulation- concerns developing a corporation’s

E) Mission
F) Objectives
G) Strategies
H) Policies
I) All of the above
J) A & C only
18- ………….. forces managers to create various kinds of growth & retrenchment strategies and
is used to generate corporate as well as business strategies
E) TOWS matrix
F) SWOT analysis
G) SFAS
H) Issue Priority Matrix
I) None of the above

19- Orascom Constructions used the pictures of Naguib Sawiris to market for its new residential
compound in Cairo to a larger segment, according to the TOWS matrix, this is an example
of:
E) ST strategy
F) SO strategy
G) WT strategy
H) WO strategy
 4- Restaurants and cafés that were not offering delivery services are now focusing on delivery
only and stopped all dine-in services after the coronavirus pandemic, according to the TOWS
matrix, this is an example of:
A) ST strategy
B) SO strategy
C) WT strategy
D) WO strategy

5- Toyota prioritizes efficiency in all its operations to sell affordable high quality cars to the
mass market, which competitive strategy is Toyota following?

A) Cost Leadership
B) Cost Focus
C) Differentiation
D)Differentiation Focus

6- An Indian company “Nano” produces high-quality small cars (Tok Tok) at a low cost for the
Indian market, which competitive strategy is Nano following?

A) Cost Leadership
B) Cost Focus
C) Differentiation
D)Differentiation Focus

7- Porche, Bentley, and Jaguar offer highly innovative unique cars aimed at a very special group
of customers following a ……………. Strategy whilst BMW, Audi and Mercedes put innovation
as their priority to offer the mass market with highly innovative luxurious cars following ……….
Strategy.

A) Cost Leadership, differentiation focus

B) Cost Focus, differentiation
C) Differentiation, differentiation focus
D)Differentiation focus, differentiation

8- The 3 mobile operators Orange, Vodafone, and Etisalat are competing head to head on all
fronts whether Product, Price, Promotion, or place. Which tactic are they using?
A) Flanking Maneuver
B) Encirclement
C) Guerrilla warfare
D)Bypass attack
E) Frontal assault
9- OPEC (Organization of the Petroleum Exporting Countries) work together as their operations
are across the globe and are under no Global monopoly rules. What kind of cooperative strategy
is this?

A) Collusion
B) Joint venture
C) Mutual service consortium
D)Value chain partnership

10- Apple introduced iPod instead of using a Microsoft pocket PC to listen to music. This was an
example of ………
A) Flanking Maneuver
B) Encirclement
C) Guerrilla warfare
D)Bypass attack
E) Frontal assault

1) According to the Boston Consulting Group (BCG) model, which of the following are
businesses or SBUs that operate in high-growth markets but have a low relative market share?
a-Dog
b-Cash cow
c-Question Mark
d-Cash cow
2)MacBook was apple’s cash cow for years. However, the computing industry is slowly
becoming portable and mobile, the need to have laptops and desktops is decreasing and the
relatively high price of Macbook is diminishing its market share. According to the Boston
Consultancy Group (BCG) Matrix, Macbook is becoming a:
a-Dog
b-Cash cow as it has always been
c-Question mark
3) For Coca-Cola corporation, Coca Cola the beverage has a huge market share but the market
reached a maturation stage in most countries. On the other hand, Coca Cola started producing
bottled water in many countries, ending up with a big market share, the market for bottled water
is evolving rapidly worldwide especially with health concerns regarding fizzy drinks promoting
water instead. According to BCG matrix:
a-Coca Cola is a star and bottled water is a cash cow
b-Coca Cola is a cash cow while bottled water is a star
c-Coca Cola is a star while bottled water is a question mark
d-Both Coca Cola and Bottled water are question marks

4) Apple builds retail stores to sell its own hardware, software and services directly to customers,
this is an example of:
A) Growth strategy
B) Concentration growth
C) Vertical growth
D) Horizontal growth
E) All of the above
F) A, B& C only

5) P&G continuously adds additional sizes and multiple variations to its existing product lines as
well as introducing successful products from one part of the world to other regions (introducing
American brands such as Head & Shoulders, Tide, and Crest into China), this is an example of:
A) Growth strategy
B) Concentration growth
C) Vertical growth
D) Horizontal growth
E) A, B & C
F) A, B& D

6) Apple makes many products such as MacBook (laptop), iPad (tablet), iPod (music player),
iPhone (mobile), Apple TV (digital multimedia receiver), this is an example of:
A) Green field development
B) Turnkey operations
C) Build Operate Transfer concept
D) Concentric diversification
E) Conglomerate diversification

7) General Electric is a highly diversified firm as it makes locomotives, light bulbs, financial
services, and refrigerators. GE manages more credit cards than American Express. GE also owns
more aircraft that American Airlines, this is an example of:

A) Green field development

B) Turnkey operations
C) Build Operate Transfer concept
D) Concentric diversification
E) Conglomerate diversification
8) Dell computer company had phenomenal growth followed by internal chaos within the
firm. They put their growth on hold, took care of their infrastructure and are now booming
again, this is an example of:
A) Growth strategy
B) Proceed with caution strategy
C) No change strategy
D)Retrenchment strategy

1. General Electric has divisions for electronics, transportation, and aviation, each with its
own team of accountants, marketers, operations this is an example of a…… structure.
a) Functional structure
b) Divisional structure
c) Matrix structure
d) Network structure

2. McDonald’s Corporation and Disney split the entire organization by location to be able
to adjust their strategies for audiences representing different markets including different
functional units. This could be an example of:
a) Functional structure
b) Divisional structure
c) Matrix structure
d) Network structure

3. In caterpillar the team organizing members must report to several managers at once in
order to allow for company-wide interaction and faster project delivery. Caterpillar uses
……

a) Functional structure
b) Divisional structure
c) Matrix structure
d) Network structure

4. 4) Amazon groups employees into different departments by work specialization. Amazon

has a ……………… structure.

a) Functional structure
b) Divisional structure
c) Matrix structure
 d) Network structure

5. A ……………… goes far beyond your internal company structure. Typically, the
organization outsources independent contractors or vendors to complete the work.

a) Functional structure
b) Divisional structure
c) Matrix structure
d) Network structure

6. The ''soft'' elements of the 7-S framework include all of the following EXCEPT which?
a. Style
b. Staff
c. Skills
d. Systems

7. What is meant by the element of ''style'' in the 7-S framework?

a. The way the business is decorated.
b. Whether a business is online or offline.
c. How people work together, the culture, language, and the “tone at the top” of the
organization.
d. Why customers should shop with them

1. Succession planning includes:

a) Identifying candidates below the top layer of management

b) Measuring internal candidates against external candidates
c)Providing financial incentives
d) All of the above
e) a & b only
f) b & c only

2. According to the text, assessment centers have been able to accurately predict
A) job satisfaction.
B) suitability for an advanced position
 C) organizational commitment.
D) organizational attachment.
E) job management skills.
3. To ensure employees are gaining the appropriate mix of experience to prepare
employees for future responsibilities, many corporations move employees from one job to
another on temporary basis using:
A) job design.
B) job specialization.
C) job rotation.
D) job enlargement.
E) job enrichment.

4. According to a study of downsizing in the automobile industry, which of the

following is NOT a problem associated with inappropriate downsizing?
A) Investment in retained employees
B) Blanket offers for early retirement prompted even valuable employees to leave.
C) Surviving employees experienced decreased morale.
D) Surviving employees had to do extra work in addition to their own.
E) The wrong jobs were eliminated.

5. Strategic goals can be accomplished through defining an action plan. Which one of
the following is NOT one of the components which make up an action plan?
A) What actions to be taken
B) Who will perform these actions.
C) The time frame during which the actions will be taken
D) How to evaluate the results after taking the action
E) what are the expected results of the action

6. Downsizing is often used to implement a(n) ________ strategy.

A) retrenchment
B) growth
C) stability
D) hold
E) integration

1) Which one of the following is NOT a part of the evaluation and control of performance?

a) Establish corporate strategies.

b) Determine what to measure.
c) Establish standards for performance.
d) Measure actual performance.
e) Take corrective actions.
2) Controls which measure variables that influence future profitability are called
a) Steering controls.
b) Activity controls.
c) Behavior controls.
d) Output controls.
e) Influencing controls.

3) The inventory turnover ratio is an example of a (n)

a) Steering controls.
b) Activity controls.
c) Behavior controls.
d) Output controls.
e) Influencing controls.

4) Which type of control specifies how something is to be done through policies, rules,
standard operating procedures, and orders from a superior?
a) Tactical control
b) Strategic control
c) Output control
d) Behavior control
e) Functional control

5) All of the following are examples of output controls except

a) Sales quotas
b) Specific cost reduction objectives
c) Profit objectives
d) Getting to work on time
e) Surveys of customer satisfaction

6) is a corporate-wide, integrated process to manage the uncertainties that

could negatively or positively influence the achievement of the corporation's objectives.
a) Input controls
b) Activity-based costing
c) Enterprise Risk Management
d) Market Value Added

7) Which of the following is a reason for strategy failure:

a) Poor communication.
b) Weak commitment of operating management.
c) Failure to establish proper feedback mechanism.
d) Incorrect strategy formulation.
 e) Correct assessment of resource requirements.
f) All of the above.
g) All except B
h) All except E
i) None of the above

8) Egypt Air uses which steering technique method:

a) Cost per passenger mile
b) Inventory turnover ratio
c) Customer satisfaction

9) Dress codes enforced in many institutions is an example of:

a) Output control.
b) Input control
c) Behavioral control

10) The number of cars sold by a salesperson per month is an example of:
a) Output control.
b) Input control
c) Behavioral control

11) Which of the following is a non-financial method used by Amazon to measure its
performance:
a) Stickiness
b) Eyeballs
c) Return on equity (ROE)
d) Operating cash flow
e) A & B only
f) None of the above

12) measures the difference between the market value of a corporation and
the capital contributed by shareholders and lenders.
a) Market Value Added
b) Balanced score card
c) Economic Value Added

13) measures the difference between the pre-strategy and post-strategy values
for the business
a) Market Value Added
b) Balanced score card
c) Economic Value Added
14) Ford manufacturing uses which responsibility center to evaluate the center’s
performance, by multiplying the total standard costs by the number of cars produced:
a) Standard cost centers
b) Revenue centers
c) Expense centers
d) Profit centers
e) Investment centers

15) A limitation of ROI as a measure of performance is that

a) It is a single comprehensive figure examining only one facet of the firm.
b) It provides disincentive to use existing assets efficiently.
c) It provides an incentive to acquire new assets.
d) It is very sensitive to depreciation policy.
e) It does not provide the basis for common comparison.

16) An advantage of ROI as a measure of performance is that

a) It is sensitive to book value.
b) It provides an incentive to use existing assets efficiently.
c) The time span of concern is short range.
d) The business cycle strongly affects ROI performance often despite managerial
performance.
e) It is very sensitive to depreciation policy.

17) What responsibility center is judged for effectiveness rather than efficiency?
a) Investment center
b) Revenue center
c) Standard cost center
d) Profit center
e) Expense center

18) A responsibility center which measures resources in dollars without consideration of

service or product costs is called a(n)
a) Investment center.
b) Revenue center.
c) Expense center.
d) Profit center.
e) Standard cost center.

19) A responsibility center which measures performance in terms of the difference between
revenues (which measure production) and expenditures (which measure resources) is a
(n)
a) Investment center.
 b) Revenue center.
c) Expense center.
d) Profit center.

20) GE (General Electric) has multiple activities in multiple industries, thus it uses which
type of responsibility center?
a) Investment center.
b) Revenue center.
c) Expense center.
d) Profit center.
e) Standard cost center.

21) The continual process of measuring Cadbury’s products against its toughest competitors
in the chocolate industry is
a) Total quality management.
b) Benchmarking.
c) Action planning.
d) Reengineering.

22) Which of the following is NOT one of the steps followed in the benchmarking process?
a) Develop tactical programs for closing performance gaps.
b) Implement tactical programs, measure the results, and compare the results with
those of the best-in-class company.
c) Implement activity-based costing.
d) Identify the area or process to be examined.

True or False
1. While globalization expands market opportunities, it eliminates the need for companies to
consider cultural differences in their strategies. False
2. A competitive advantage built solely on low cost is inherently sustainable in the long run.
False
3. A "learning organization" culture requires adopting agile methodologies with few
strategy modifications. True
4. Evaluating and controlling strategic performance focuses only on comparing actual
results to financial targets. False
5. Implementing strategic decisions is solely the responsibility of middle and lower-level
managers. False
6. SWOT analysis should prioritize internal strengths and weaknesses over external
opportunities and threats when formulating a strategy. False
7. Environmental scanning focuses solely on monitoring external opportunities and threats.
False
8. Strategy implementation is primarily conducted by top management, with minimal
involvement from middle- and lower-level managers. False
9. Evaluation and control are processes that monitor activities and results but do not involve
taking corrective actions. False
10. Globalization refers only to market internationalization. False
11. The increase of floods, hurricanes, and earthquakes is a vital example of litigation risk.
False
12. A learning organization is primarily characterized by a rigid, top-down management
structure. False
13. Strategic flexibility involves sticking to a centrally managed, five-year plan without any
deviations. False
14. One of the benefits of strategic management is a blurred focus on what is strategically
important. False

1. In a consolidated industry, profit margins typically rise as buyers become more

sophisticated over time. False
2. Regional industries involve multinational companies that primarily coordinate their
activities within individual countries. False
3. Strategic groups are clusters of firms that share similar strategies based on factors like
product differentiation and price. True
4. Hypercompetition is characterized by a stable and predictable business environment,
allowing firms to plan long-term strategies. False
5. The total weighted score in an industry matrix indicates how well a company is
responding to current and expected key success factors. True
6. Industrial espionage is a legal and ethical method of gathering competitive intelligence,
commonly practiced in the business world. False
7. Companies categorized as "Reactors" lack a consistent strategy-structure-culture
relationship and tend to make unsystematic strategic changes. True
8. In a fragmented industry, companies may use backward integration to acquire their
suppliers and reduce costs further. True
9. In a multi-domestic industry, companies tailor their products to the specific needs of
consumers in a particular country or group of countries. True
10. Firms within the same strategic group typically have diverse strategies, making it
challenging to identify common characteristics. False
11. One reason for hypercompetition is the difficulty of sustaining a competitive advantage
for an extended period in dynamic markets. True
12. Key success factors are constant across different industries and do not vary based on the
economic and technological characteristics of each industry. False
13. In a consolidated industry, companies often focus on backward integration to increase
control over the supply chain. True
14. Analyzers are companies that operate in multiple industries, emphasizing efficiency in
stable areas and innovation in variable areas. True
 15. Closer relationships with suppliers are a contributing factor to hypercompetition as they
provide stability and predictability in the business environment. False

1. A core competency is a competency that is superior to competitors and can be duplicated

easily. False
2. The VRIO framework assesses resources based on their value, rarity, invention, and
organization. False
3. Durability refers to the rate at which a firm's underlying resources and capabilities
depreciate or become obsolete. True
4. Tacit knowledge, deeply rooted in employee experience or corporate culture, is more
easily communicated and imitated than explicit knowledge. False
5. The sustainability of a competitive advantage is determined only by the durability of a
firm's resources and capabilities. False
6. In the VRIO framework, if a resource is valuable, rare, and easily imitable, it can still
provide a sustainable competitive advantage. False
7. Transparency, transferability, and replicability are factors that influence the imitability of
core competencies. True
8. In the continuum of resource sustainability, slow-cycle resources are sustainable because
they are easily imitable by competitors. False
9. The switchboard model of business involves a firm acting as an intermediary to connect
multiple buyers to multiple sellers. True
10. Cross-functional integration involves coordinating capabilities within different
departments of an organization to achieve a common goal, such as new product
development. True
11. Core competencies are typically based on explicit knowledge, which is easier for
competitors to imitate compared to tacit knowledge. False
12. The efficiency model of business focuses on entering the market with low-priced, low-
margin products after a product becomes standardized. True
13. A strategic business unit (SBU) is composed of independent product or market segments
that are given primary responsibility and authority for the management of their own
functional areas. True
14. Transparency refers to how easily a competitor can understand the resources supporting a
company's competitive advantage. True
15. The durability of a competitive advantage is determined by the rate at which a firm's
underlying resources and capabilities become obsolete. True
16. The profit multiplier model focuses on developing a concept that may not immediately
generate profit but can spin off multiple profitable products through synergy. True
17. The conglomerate structure is typically used by small firms with one or two product
lines. False
1)VRIO framework determines key resources according to their Value, Reliability, Imitability &
Organization (F)
2)The smart village in Cairo is an example of a cluster (T)
3)It is relatively difficult to learn and imitate another company’s core competency or capability if
it is based on tacit knowledge (T)
4)Unilever having a professional Marketing team is an organizational opportunity (F)
5) Selling at low priced and high priced products aiming to move customers from low price to
high price products e.g. Kia cars closing all niches aiming to upgrade customers is a profit
pyramid model (T)
6)Oil exploration is a downstream segment whilst oil refinery is an upstream segment in regards
to the industry value chain (F)
7) Firm infrastructure is considered a support activity whilst Marketing is a primary activity (T)
8)Synergies among the value chains of different product lines or business units lead to
Economies of scale (F)
9)Organizational structure is not static and can be changed (T)
10)Organizational structure is Collection of beliefs, expectations, and values learned (F)

1)SWOT analysis must entail analysis and data to verify opinions. (F) SWOT is a mere list of

Strengths, Weaknesses, Opportunities & Strengths

2)The strategic sweet spot is the intersection between customers’ needs, company’s capabilities,

and their competitors’ offerings. (F)

A company is able to satisfy customer’s needs in a way that rivals can not

3)Mission statements and objectives do not directly affect performance (F)

4) TOWS matrix is the opposite of SWOT analysis (F)

5)Strategic window is a unique market opportunity that is available for a particular time (T)

6)Stuck in the middle is when a company has both the advantages of cost leadership and

differentiation strategies (F) A company has no competitive advantage and is doomed to below-

average performance
7) The main advantage of a differentiation competitive strategy is its sustainability(F) Not

necessarily

8)The risks of a cost leadership strategy include losing proximity in differentiation(T)

9)The risks of a differentiation strategy include technology changes (False)

10)The risks of both cost leadership and differentiation strategies include competitors’ imitation

(True)

11)The new focusers use a focus strategy to further sub-segment the industry to even narrower

segments (True)

12)The risks of a focus strategy include imitation, disappearing demand, and technology changes

(False) Technology changes are a risk of cost leadership strategy

13)Following an overall cost leadership strategy requires strong marketing abilities (False)

14)The skills, resources, and organizational requirements necessary to apply a focus strategy are

normally a mixture/hybrid of those needed for differentiation and cost leadership (True)

15)Intense labor supervision is needed in a differentiation strategy whilst highly skilled labor is

needed for a cost leadership strategy (False)

16)Tight cost control is the pillar on which a cost leadership strategy is built (True)

17) Differentiation needs process engineering skills more than it needs R&D capabilities (False)

1) McDonald’s grows its potatoes and raises its cattle in McDonald’s farms following a

horizontal growth strategy (F)

2)With the introduction of Hypermarkets to the Egyptian market, small super markets had no

particular vision and decided to do nothing new and continue their operations as usual in spite of

the competition this is an example of no change strategy (T)

3) Philips divested its chip division called NXP because the chip market was so volatile and

unpredictable that NXP was responsible for the majority of Philips's stock fluctuations while it

represented only a very small part of Philips net value, this is an example of liquidation (F)

5)Bankruptcy: involves giving up management of the firm to the courts in return for some

settlement of the corporation’s obligations, while liquidation: involves terminating the firm

completely (T)

6) Lehman Brothers filed for bankruptcy in 2008 because of the financial crisis this is an

example of a stability strategy(F)

7) Kodak, the 131-year-old film pioneer that has been struggling for years to adapt to an

increasingly digital world, filed for bankruptcy protection in January 2012.This is an example of

Retrenchment strategy (T).

8) World Com, an American telecommunications company now known as MCI, had

implemented the profit strategy (before going bankrupt in 2002). This firm chose this strategy so

as to grab profits because the company was about to collapse, this is an example of stability

strategy (T).

9) BCG dogs don’t produce much profit and they show little potential for future improvement

which calls for a stability strategy (F)

10) BCG Stars produce large profits through substantial penetration of expanding markets calling

for a growth strategy (T)

11)BCG question marks will always turn into stars which means a company will have to adopt a

growth strategy (F)

12) Cash cows should be “milked” to generate cash that can be used to support investments in

stars and question marks which means adopting stability or modest growth strategy (T)

1) Strategy implementation is aligning company operations with intended direction through

budgets, programs, and procedures. (True)
2) Due to the large size of multi- industry corporations the process of strategy
implementation is carried out by limited number of people including top management as
well as middle management. ( false )
3) Many of the people in the organization involved in the development of corporate and
business strategy usually have little to do with its implementation ( false )
4) A change in structure calls for a change in strategy. ( False)
5) During the growth phase we can use the concentration as a niche as a strategy(false)
6) During the maturity stage the decentralized structure seems matching the horizontal and
vertical growth strategy ( false )
7) Synergy exists for a divisional corporation if the return on investment is greater than what
the return would be if each division were an independent business. ( true)
8) Programs are statements of the activities or steps needed to accomplish a single-use plan.
It makes strategies action-oriented ( true )

9) Standard Operating Procedures (SOP) are a system of sequential steps or techniques that
describe in detail how a particular task or job is to be done. It details the various activities
that must be carried out to complete a corporation’s programs ( true )
10) The skills component in the McKinsey 7-S Framework refers to The talent that is
currently in the organization, including future leaders, knowledge workers, and suppliers.
( false )
1. Measuring internal candidates against external candidates is considered a part of
succession planning. (T)
2. Strong corporate cultures adapt easily to change (F) resistant to change
3. A change in strategy will mostly require new staffing requirements (T)
4. Downsizing refers to the planned elimination of positions or jobs. (T)
5. Firms in trouble seldom choose outsiders to lead them (F)
6. To successfully downsize, companies must develop value added jobs to balance out
job elimination (T)
7. An organization's culture can strongly influence the behavior of all employees thus a
company's ability to shift its strategic direction. (T)
8. Corporate culture does not necessarily have to support the strategy of the firm. (F)
 9. One component of an effective action plan is the determination of the expected
financial and physical consequences of each action.(T)
10. Action plans link strategy formulation and evaluation & control (T)

1) The evaluation and control process ensures that the company is achieving what it set out
to accomplish.
True

2) In the evaluation and control process, if the performance matches the standards corrective
measures should be taken.
False, corrective measures are taken if the performance doesn’t match the
standards.

3) One of the obstacles to effective control is the difficulty in developing appropriate

measures of important activities and outputs.
True

4) Performance is the end result of activity.

True

5) Oracle’s use of the total waiting time before the customer gets in contact with the
technicians to solve its problems, is an example of cost per passenger mile.
False, customer satisfaction.

6) Behavior controls specify how something is to be done through policies, rules, standard
operating procedures, and orders from a superior.
True
7) ABC is an accounting method for allocating direct and fixed costs to individual products.
False, allocates indirect and direct costs to individual product lines.

8) ABC accounting allows accountants to charge costs more accurately than the traditional
method because it allocates overhead far more precisely.
True

9) Enterprise Risk Management is used only for managing uncertainties that could
negatively influence the achievement of objectives.
False, negatively and positively

10) One advantage of using ROI is that it is a single comprehensive figure that includes all
revenues, costs and expenses.
True
11) Operating cash flow is also known as free cash flow.
False, they are 2 different performance measures.

12) Stickiness and eyeballs are two financial performance measures used by Internet business
ventures.
False, they are non-financial performance measures.

13) The balanced scorecard combines financial measures that tell the results of actions
already taken with operational measures on customer satisfaction, internal processes, and
the corporation's innovation and improvement activities.
True

14) Management audits have been developed to evaluate activities such as corporate social
responsibility, functional areas such as the marketing department, and divisions such as
the international division.
True

15) The strategic audit is a type of management audit and is extremely useful as a diagnostic
tool to pinpoint corporate wide problem areas and to highlight organizational strengths
and weaknesses.
True.

16) In the revenue centers resources are measured in dollars, without consideration for
service or product costs.
False, expenses centers.
17) Over the years benchmarking has been decreasing in popularity as companies emphasize
uniqueness.
False, increasing in popularity.

18) Benchmarking involves openly learning how others do something better than one's own
company so that one not only can imitate, but perhaps even improve on their current
techniques.
True.

19) Netflix and other platforms use hours of streaming by viewers as a KPI. Netflix is facing
issues to accurately determine the total number of streaming hours in Egypt and compare
it to competitors because of illegal platforms like Egybest. This is an example of piracy.
True.
20) Tagging containers and items with tiny chips, companies use the tags as wireless bar-
codes to track inventory more efficiently is an example of ERP.
False, Radio Frequency Identification
 21) ERP software provides instant access to critical information to everyone in the
organization from the CEO to the factory floor worker.
True.

22) In an auto repair shop rewards are highly tied to the amount of bills collected from the
customers, therefore employees altered their behavior to fit the reward system by over-
billing the customers and adding additional unnecessary repair parts to receive higher
commissions. This is an example of suboptimization.
False, behavior substitution.

23) Uniliver’s marketing department approves an early shipment date to Carrefour, as a

means of getting an order and increase their sales revenues, but it forces the
manufacturing department into overtime production for that one order ignoring the
production costs and the reduction of the overall manufacturing department efficiency.
This is an example of suboptimization.
True.

24) According to the 80/20 rule, companies should monitor 20% of the factors and determine
80% of the results.
True.

As a part of Mc Donald’s management team categorize the following by choosing whether

S, W, O or T

1) Introducing Burger King into the Egyptian market.

a-S
b-W
c-O
d-T
2) Mc Donald’s having the quickest delivery service.
a-S
b-W
c-O
d-T
3) Anti-American attitude spreading around the world.
a-S
b-W
c-O
d-T
4) Domino’s pizza shutting down.
a-S
b-W
c-O
d-T
5) High turnover rates of Mc Donald’s employees.
a-S
b-W
c-O
d-T
6) New resorts along the North Coast that don’t have any restaurants.
a-S
b-W
c-O
d-T
7) Complaints that sandwiches aren’t as tasty as they used to be.
a-S
b-W
c-O
d-T

I-Conduct a STEEP analysis for each of the following factors facing Bank Misr and
explain whether it is a threat or opportunity: (STEEP Analysis…….>PESTL, External
factors)
For each of the following factors indicate:
1)Whether it is: 2) Whether it is: Threat (T) or Opportunity (O)
a) Political
b) Economic
c) Social
d)Technological
e) Legal
1. The Egyptian economy became so turbulent facing an increase in inflation rate, recession
and the value of Egyptian pound dropped against the Dollar (E,T)
2. Increase the hacking activities, which make people afraid of dealing with technology due
to privacy issues (T,T)
3. Ranking Egypt as one of top countries in anti- money laundering countries which can
attract investors to Egypt (L,O)
4. Increasing the use of ATMs in paying salaries and pensions (T,O)
5. People in Egypt are now receiving higher education (college degrees) and the number of
qualified youth increases which represents better employees for the bank. (S,O)

II-categories each of the following based on Porter’s five competitive forces:

a) Threat of new entrants
b) Threat of Substitutes
c)Existing competitors (Rivals)
d)Bargaining power of buyers
e) Bargaining power of suppliers
1. People can invest their money in stock markets instead of banks. (Substitutes)
2. There are many banks in Egypt (NBG bank, bank Misr, NSGB, HSBC and others) which
compete intensively (Existing competition)
3. Because clients now have range of choices, the bank can lose its client to another bank
because it offers higher interest rates (Bargaining power of buyers)
4. The central bank is responsible for the supply of money and sets the laws and regulations
of banks, so it has high power on them(Bargaining power of suppliers)
ABC Electronics is a medium-sized technology company known for its innovative products
in the consumer electronics market. Recently, the company has been facing increased
competition from new entrants in the industry. The management team is conducting an
internal analysis to identify strengths and weaknesses to maintain its competitive position.

1. What is the primary objective of ABC Electronics in conducting an internal analysis?

A) To identify external threats in the market
B) To assess the financial performance of competitors
C) To evaluate its own resources and capabilities
D) To analyze customer preferences and trends
Answer: C)

2. Which of the following is NOT considered an intangible asset for ABC Electronics?
A) Patents for innovative technologies
B) Brand reputation and customer loyalty
C) Manufacturing equipment
D) Organizational culture fostering innovation
Answer: C)

3. ABC Electronics possesses a unique capability to swiftly adapt to changing market trends
and technological advancements. What term best describes this characteristic?
A) Core competency
B) Tangible asset
C) Distinctive competency
D) Resource gap
Answer: A)

4. In the VRIO framework, what does the "I" stand for?

A) Impossibility
B) Invention
C) Imitability
D) Investment
Answer: C)

5. ABC Electronics has identified a particular resource that is valuable, rare, and costly to
imitate. However, the organization lacks the organizational structure to effectively exploit
this resource. Which aspect of the VRIO framework is ABC Electronics struggling with?
A) Value
B) Rarity
C) Imitability
D) Organization
Answer: D)

6. ABC Electronics' ability to maintain strict quality control standards throughout its
manufacturing process is considered a core competency. How does this capability
contribute to the company's competitive advantage?

A) By increasing the cost of imitation for competitors

B) By reducing the value of its products in the market
C) By decreasing customer satisfaction and loyalty
D) By limiting the company's operational efficiency
Answer: A)

7. Despite having valuable resources and core competencies, ABC Electronics faces
challenges in leveraging them effectively due to a lack of coordination across
departments. Which aspect of competency management is ABC Electronics struggling
with?
A) Transparency
B) Transferability
C) Replicability
D) Cross-functional integration
Answer: D)

8. ABC Electronics is considering investing in upgrading its manufacturing facilities to

enhance its production capabilities. Which step of the 5-step approach to strategy analysis
does this action align with?
A) Identify & classify the firm's resources into strengths & weaknesses
B) Combine the firm's strengths into capabilities, core competencies, & distinctive competencies
C) Appraise the profit potential of resources in terms of sustainable competitive advantage
D) Identify resource gaps and invest in upgrading weaknesses
Answer: D)

9. ABC Electronics' management team is evaluating different organizational structures to

ensure alignment with its strategic objectives. Which structure would be most suitable for
a company with multiple product lines in diverse industries?
A) Simple structure
B) Functional structure
C) Divisional structure
D) Strategic business units structure
Answer: C)