Question 1.Choosing a preferred strategy makes sense not only because one can then defend the choice as being the best one, but also because, in Michael Porter’s words, “the essence of strategy is choosing what not to do.”
  True
False
Question 2.Which of the following is not a bona fide opportunity (product-market issue)?
  Sell existing products to China
  Modify the design of an auto to attract younger buyers
  Make more money through cost reduction
  Create an innovative product for existing customers
  Continue producing products for current customers
Question 3.Which of the following is an activity ratio?
  Current ratio
  Inventory-to-net-working-capital ratio
  Debt-to-equity ratio
  Gross profit margin
  Average collection period
Question 4.Which of the following is not a criterion when choosing the best bundle?
  Shareholder value
  Selling price of product
  Revenue growth
  ROI
  Degree of risk
Question 5.Which element is not a part of an internal analysis?
  Corporate culture
  Competitive strength
  Weaknesses
  Competitive trends
  Core competence
Question 6.A multidomestic strategy is similar to a transnational strategy.
  True
False
Question 7.Internal value chains need more analysis than external value chains.
  True
False
Question 8.Which of the following is a criterion for creating bundles?
  They must not include different strategies
  They must be feasible
  They must invest in other industries
  They must diversify through acquisition
  None of the above
 
Question 9.Which of the following is not one of the criteria that distinguish a capability from a core competence?
  Is it valuable?
  Is it supported by top management?
  Is it rare?
  Is it costly to imitate?
  Is it nonsubstitutable?
Question 10.The final list of strategic issues should match elements in the strategic-alternative bundles.
  True
False

 
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