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GEORGIA STATE UNIVERSITY
J MACK ROBINSON COLLEGE OF BUSINESS
BUSA 4980 Strategic Management
Practice Questions for Midterm Review
Instructor: Dr Elizabeth Lim
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Multiple Choice Questions
Answer ALL Questions
Strategic Management and Strategic Competitiveness
A firm has achieved ____ when it successfully formulates and im
plements a value-
a. strategic competitiveness
b. a temporary competitive advantage
c. substantial returns
d. legal and ethical core values
2. All of the following are assu
mptions of the industrial org
anization (I/O) model
a. Organizational decision make
rs are rational and committed to
acting in the firm's
b. Resources to implement strategies are firm-specific and atta
ched to firms over the
c. The external environment is a
ssumed to impose pressures and
determine the strategies that
result in above-average returns.
d. Firms in given industries, or gi
ven industry segments, are a
ssumed to control
similar strategically relevant resources.
. 3. All of the following ar
e assumptions of the resource
-based model EXCEPT
a. Each firm is a unique collec
tion of resources and capabiliti
b. The industry’s structural cha
racteristics have little impact
on a firm’s performance
c. Capabilities are highl
y mobile across firms.
d. Differences in resources and capabilities are the basis of c
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4. All of the following are
resources of an organization EX
a. an hourly production employee’s ability to catch subtle qual
ity defects in products.
b. oil drilling rights
in a promising region.
c. weak competitors in the industry.
d. a charity’s endowment of $400 million.
5. The goal of the organiza
tion’s ____ is to capture the
hearts and minds of employees,
challenge them, and evoke t
heir emotions and dreams.
The External Environment
6. An analysis of the economic segment of the extern
al environment would include all of
the following EXCEPT
a. interest rates.
b. international trade.
c. the strength of
the U.S. dollar.
d. the move toward a contingent workforce.
7. Product differentiation refers to the:
a. ability of the buyers of a produc
t to negotiate a lower pric
b. response of incumbent firms to new entrants.
c. belief by customers t
hat a product is unique.
d. fact that as more of a product
is produced the
cheaper it be
comes per unit.