Question 1

Which one of the following is NOT a corporate strategy of Rio Tinto?
A) improving the accounting function of mining business
B) being a worldwide leader in finding, mining and processing mineral resources
C) operating in an ethically and socially responsible manner
D) delivering high shareholder returns

Accepted Answer

Improving the accounting function of mining business is not a corporate strategy of Rio Tinto. The other options - being a worldwide leader in finding, mining and processing mineral resources, operating in an ethically and socially responsible manner, delivering high shareholder returns- are all key corporate strategies of Rio Tinto.

Question 2

In the business strategy model proposed by Hubbard,Rice and Galvin:
A) performance assessment comes before performance measurement
B) performance comes before implementation
C) implementation comes after gap analysis
D) decision making comes after performance

Accepted Answer

According to the Hubbard, Rice and Galvin model, the sequence of steps is as follows:

1) Gap analysis - to identify current versus desired performance levels 
2) Performance measurement - to quantitatively assess current performance levels 
3) Performance assessment - to qualitatively evaluate current performance levels 
4) Implementation - to make changes to improve performance 
5) Decision making - to determine the most effective course of action

Therefore, implementation comes after gap analysis.

Question 3

One basis for a difference in strategy in smaller countries is:
A) access to export markets
B) lack of cooperation between state and federal governments
C) foreign capital market manipulation
D) political systems

Accepted Answer

Political systems can greatly affect the approach and strategy of businesses in smaller countries. Different political systems may have varying levels of government regulations, corruption, and instability, which can impact investment decisions and market opportunities. For example, a country with a democratic political system may offer more stability and transparency than a country with a dictatorship, leading to different business strategies.

Question 4

Modern strategic management is based directly on the writings of:
A) Sun Tzu
B) Von Clauswitz
C) Andrews, Ansoff, Christensen, Guth and Learned
D) Michael Porter

Accepted Answer

Andrews, Ansoff, Christensen, Guth and Learned are considered to be the founding fathers of modern strategic management. They introduced the concept of strategic planning in the 1960s and their writings have had a significant impact on the field. While Sun Tzu and Von Clauswitz are important historical figures in the study of strategy, their writings are not typically considered to be the direct basis for modern strategic management. Michael Porter, while influential, is part of the later phase of strategic management thinking.

Question 5

The discipline that has been the source of most theoretical work on strategy is:
A) economics
B) organisational behaviour
C) organisational theory
D) all of the above

Accepted Answer

Economics has been the source of most theoretical work on strategy because it provides a framework for understanding how firms compete in markets.

Question 6

In the resource-based view of strategy,the set of conditions leading to sustainable competitive advantage is that the organisation's resources are:
A) valuable, rare, imperfectly imitable and unique
B) invaluable, common, imperfectly imitable and difficult to substitute
C) valuable, common, perfectly imitable and difficult to substitute
D) valuable, rare, imperfectly imitable and easy to substitute

Accepted Answer

According to the resource-based view of strategy, sustainable competitive advantage can be achieved when an organization's resources are valuable, rare, imperfectly imitable, and unique. "Valuable" resources allow the organization to create value for its customers, "rare" resources are not possessed by many competitors, "imperfectly imitable" resources cannot be easily replicated by competitors, and "unique" resources are specific to the organization, making it difficult for competitors to obtain them. Therefore, option A is the correct choice.

Question 7

It is NOT an assumption of organisational theory that:
A) the fundamental unit of analysis is the individual
B) individuals have different attitudes due to environment and heredity
C) organisational characteristics influence individual behaviour
D) organisational goals arise from interactions between it and individuals

Accepted Answer

The answer of It is NOT an assumption of organisational...

Question 8

Hubbard,Rice and Galvin state that the essential question in strategy is why do some organisations:
A) seem luckier than others
B) maintain their competitive edge longer than others
C) perform better than others
D) have better CEOs and employees than others

Accepted Answer

The essential question in strategy, as stated by Hubbard, Rice, and Galvin, is why some organizations perform better than others. This focuses on understanding the underlying factors that contribute to an organization's superior performance compared to its competitors.

Question 9

Stakeholder-based theories argue that organisations have a responsibility to be socially responsible and to promote the best interests of:
A) shareholders
B) local communities
C) the natural environment
D) all of the above

Accepted Answer

Stakeholder-based theories argue that organisations have a responsibility to be socially responsible and to promote the best interests of all stakeholders including shareholders, local communities, and the natural environment. Therefore, option D is the best choice.

Question 10

Differences between traditional economics and strategy do NOT include an assumption that:
A) market equilibrium will be reached through the pricing mechanism
B) all companies have unique information
C) transaction costs are zero
D) there are many competitors in most markets

Accepted Answer

The answer of Differences between traditional economics and strategy do...

Question 11

De Geus argued that the main reason most organisations did not survive for very long was that they had:
A) limited experience
B) poorly trained employees
C) outdated technology
D) a learning disability

Accepted Answer

De Geus argued that the main reason most organisations did not survive was because they had a learning disability, meaning they were unable to adapt and learn from their experiences to improve and evolve. This lack of ability to learn and adapt makes it difficult for organisations to survive in a rapidly changing business landscape.

Question 12

According to the knowledge-based view of strategy,which of the following is NOT considered as an important organisational resource?
A) operational know-how
B) organisational culture
C) financial resources
D) routines

Accepted Answer

Financial resources are not considered a knowledge-based resource; the knowledge-based view focuses on intangible assets like know-how, culture, and routines.

Question 13

The three levels of strategy are:
A) functional, business, corporate
B) global, national, corporate
C) external, internal, individual
D) industry, corporation, divisional

Accepted Answer

The three levels of strategy are functional, business, and corporate. Functional strategy focuses on specific functional areas within the organization, such as marketing, finance, or production. Business strategy focuses on individual business units or product lines within the organization, while corporate strategy focuses on the overall direction and goals of the entire organization, including diversification and resource allocation. Therefore, choice A is the correct answer.

Question 14

The balanced scorecard approach assesses organisational performance relative to:
A) external consistency of business strategy
B) achievement of business strategy
C) capabilities of the organisation
D) expectations of the key stakeholders
E) all of the above

Accepted Answer

The balanced scorecard approach evaluates organisational performance in terms of both internal and external factors. It considers the consistency of business strategy, the achievement of business goals, the capabilities of the organisation, and the expectations of key stakeholders. Therefore, all of the choices are correct.

Question 15

The definition of strategy provided by Hubbard,Rice and Galvin does NOT claim that:
A) strategy is about decision making
B) strategy is about short-term impacts of decisions
C) strategy is about implementation of decisions
D) strategy is about outperforming competitors

Accepted Answer

The definition of strategy provided by Hubbard, Rice and Galvin states that strategy is about decision making, implementation of decisions, and outperforming competitors. However, it does not mention that strategy is about the short-term impacts of decisions.

Question 16

The three levels of strategy are essential for:
A) all types of organisations
B) only large firms
C) multi-business organisations
D) global organisations only

Accepted Answer

The answer of The three levels of strategy are essential...

Question 17

As a consequence of a wide range of theories being applied to the field of strategy,we can conclude that:
A) there is considerable overlap between different perspectives
B) there are significant differences in emphasis
C) the solutions proposed by each perspective are likely to be different
D) all of the above

Accepted Answer

The statement mentions "a wide range of theories being applied to the field of strategy" which implies that multiple perspectives are being considered. Option A is true because when different theories are being applied, there is bound to be some overlap in their approaches. Option B is also true because each theory has its own unique emphasis on certain factors. Option C is true because each theory is likely to propose different solutions to the same problem. Thus, all options are correct and the best choice is D.

Question 18

The acronym ESC in 'ESC gap analysis model' stands for:
A) environmentally sustainable capability
B) economics-sociology-culture
C) environment-strategy-capacity
D) environment-strategy-capability

Accepted Answer

ESC in 'ESC gap analysis model' stands for environment-strategy-capability. This model is used to identify gaps in a company's environmental sustainability strategies and capabilities.

Question 19

In 1985 Michael Porter suggested three generic strategies:
A) low delivered cost, differentiation and focus
B) low price, differentiation and focus
C) low production cost, high quality and focus
D) low cost, differentiation and targeting

Accepted Answer

Michael Porter's three generic strategies are low cost, differentiation, and focus. Option A accurately represents these three strategies, with "low delivered cost" representing low cost, "differentiation" representing differentiation, and "focus" representing the focus strategy. Option B is incorrect because "low price" is not the same as "low cost," and the term "targeting" is vague and does not accurately represent the focus strategy. Option C is incorrect because "low production cost" is only one aspect of the low cost strategy, and "high quality" is not the same as differentiation.

Question 20

Ansoff's model of strategy proposed in his 1965 book on corporate planning was criticised because it:
A) is linear
B) relies on strong market signals
C) presumes that all strategic information is available to top management
D) presumes that the future is closely related to the past

Accepted Answer

The answer of Ansoff's model of strategy proposed in his...

Quiz 1: What is ‘strategy’?

Which one of the following is NOT a corporate strategy of Rio Tinto?

In the business strategy model proposed by Hubbard,Rice and Galvin:

One basis for a difference in strategy in smaller countries is:

Modern strategic management is based directly on the writings of:

The discipline that has been the source of most theoretical work on strategy is:

In the resource-based view of strategy,the set of conditions leading to sustainable competitive advantage is that the organisation's resources are:

It is NOT an assumption of organisational theory that:

Hubbard,Rice and Galvin state that the essential question in strategy is why do some organisations:

Stakeholder-based theories argue that organisations have a responsibility to be socially responsible and to promote the best interests of:

Differences between traditional economics and strategy do NOT include an assumption that:

De Geus argued that the main reason most organisations did not survive for very long was that they had:

According to the knowledge-based view of strategy,which of the following is NOT considered as an important organisational resource?

The three levels of strategy are:

The balanced scorecard approach assesses organisational performance relative to:

The definition of strategy provided by Hubbard,Rice and Galvin does NOT claim that:

The three levels of strategy are essential for:

As a consequence of a wide range of theories being applied to the field of strategy,we can conclude that:

The acronym ESC in 'ESC gap analysis model' stands for:

In 1985 Michael Porter suggested three generic strategies:

Ansoff's model of strategy proposed in his 1965 book on corporate planning was criticised because it: