TEST BANK Contemporary Strategy Analysis

TEST BANK Contemporary Strategy Analysis 90 questions and answers from all chapters Robert M. Grant

9781394251599 

12 th edition 2024

Reading time: 40 min.

Pages: 13

Iv also added a few questions at the end which were on the actual exam

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Contents Part 1: Introduction......................................................................................2 Part 2: Goals, Values, and Performance.......................................................3 Part 3: Industry Analysis..............................................................................4 Part 4: Further Topics in Industry Analysis...................................................4 Part 5: Resources and Capabilities..............................................................4 Part 6: Organization Structure and Management Systems ..........................5 Part 7: Competitive Advantage....................................................................5 Part 8: Industry Evolution and Strategic Change.........................................6 Part 9: Technology-Based Industries and Innovation...................................6 Part 10: Vertical Integration and the Scope of the Firm...............................7 Part 11: Global Strategies and Multinational Corporations..........................8 Part 12: Diversification Strategies...............................................................8 Part 13: Managing Strategic Alliances.........................................................9 Part 14: Technology and Innovation Strategies...........................................9 Part 15: The Role of Corporate Governance..............................................10 Part 16: Strategic Leadership and Change................................................10 General Application Questions..................................................................11 Critical Thinking Questions........................................................................12 Additional Application Questions...............................................................12 Actual test questions that were on exam..................................................13

Part 1: Introduction

1.What are the four key elements of a successful strategy? 2 / 4

oClear, long-term goals, profound understanding of the external environment, objective appraisal of resources, and effective implementation.

2.What is 'strategic fit' in strategy analysis?oThe consistency of a firm's strategy with its internal and external environment.

3.What is the contingency theory in strategy?oIt suggests that there is no single best way to organize or manage; it depends on the circumstances.

4.Distinguish between corporate strategy and business strategy.oCorporate strategy focuses on where to compete (industries and markets), while business strategy focuses on how to compete within a specific market.

5.What is the difference between intended, realized, and emergent strategies according to Mintzberg?

oIntended: Formulated by top management.

Realized: Implemented strategy (partially intended).

Emergent: Arises from decisions adapting to changing

circumstances.

Part 2: Goals, Values, and Performance

6.How can firms create value according to this Part?oBy production (transforming inputs into more valuable outputs) or commerce (repositioning goods in space and time).

7.What is the formula for value-added?oValue Added = Sales revenue - Cost of material inputs.

8.What is economic profit?oIt is the surplus available after all inputs (including capital) have been paid for, calculated as EVA = NOPAT - Cost of capital.

9.What are the two main advantages of using economic profit over accounting profit? 3 / 4

oIt enforces a higher performance discipline and improves resource allocation between business units.

Part 3: Industry Analysis

• What are the three key factors determining profits in

an industry?oValue of the product to customers, intensity of competition, and bargaining power of industry members.

• List the five forces in Porter's Five Forces framework.

oThreat of new entrants, bargaining power of buyers, bargaining power of suppliers, rivalry among existing competitors, and threat of substitute products.

• What are the key barriers to entry in an industry?

oCapital requirements, economies of scale, cost advantages, product differentiation, distribution channel access, and legal barriers.

Part 4: Further Topics in Industry Analysis

• What is a complement in industry analysis?

oA product or service that increases the value of another product (e.g., cars and gasoline).

• What is hypercompetition?

oIntense and rapid competitive moves where firms quickly build and erode competitive advantages.

• What are Porter's four-part framework for predicting

competitor behavior?oCompetitor's strategy, objectives, assumptions about the industry, and resources/capabilities.

Part 5: Resources and Capabilities

• What are the three main types of resources?

oTangible, intangible, and human resources.

• What distinguishes core competencies?
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