55 common test questions and answers from all chapters

University of Amsterdam 2024/2025 Master's in Business Administration 55 common test questions and answers from all chapters

Level: average

Literature used: contemporary strategy analysis Grant 12

th ed. 2024 1 / 2

Contents Part 1: Introducing Strategy...................................................................................................................................................2 Part 2: The Environment........................................................................................................................................................2 Part 3: Strategic Capabilities..................................................................................................................................................3 Part 4: Strategic Purpose........................................................................................................................................................3 Part 5: Culture and Strategy...................................................................................................................................................3 Part 6: Business Strategy.......................................................................................................................................................4 Part 7: Corporate Strategy and Diversification.......................................................................................................................4 Part 8: International Strategy.................................................................................................................................................4 Part 9: Innovation and Entrepreneurship................................................................................................................................5 Part 10: Mergers, Acquisitions, and Alliances.......................................................................................................................5 Part 11: Evaluating Strategies................................................................................................................................................5

Part 1: Introducing Strategy

1.What are the three main levels of strategy within an organization?Corporate-level, business-level, and operational strategies.

2.According to Chandler, how does strategy flow?Strategy flows logically from setting goals to allocating resources.

3.What does the three-horizons framework emphasize?It suggests organizations should balance current core activities (Horizon 1), emerging opportunities (Horizon 2), and future possibilities (Horizon 3).

4.What is a strategy statement, and what are its three main themes?It summarizes an organization’s strategy and includes goals, scope, and competitive advantage.

5.What are the four main elements of the Exploring Strategy Model?Strategic position, strategic choices, managing strategy into action, and context-specific adaptations.

Part 2: The Environment

6.What are the six elements of the PESTEL framework?Political, Economic, Social, Technological, Environmental, Legal.

7.What is the primary purpose of scenario analysis?To prepare for uncertainties by exploring possible future environments and their strategic implications.

8.What factors determine high rivalry among competitors according to Porter’s Five Forces?Competitive balance, industry growth rate, high fixed costs, and high exit barriers.

9.Define “hypercompetitive industries.” Industries with constant disequilibrium due to frequent, aggressive, and bold competitive

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