Strategic Management 1- Prof. Dr.

Mahmoud Hassanin
Test Bank
This is just an example of True/ False Questions.
Exam is not limited to these questions
Corporate Strategy:
1. Corporate strategy is concerned with the overall purpose and scope of the organization. True

2. The goal of corporate strategy is to maximize shareholder value. False

3. Diversification is a common corporate strategy. True

4. Vertical integration is a form of corporate-level diversification. True

5. Conglomerate diversification involves entering unrelated industries. True

6. Concentric diversification involves entering related industries. True

7. Downsizing is a type of retrenchment strategy. True

8. Divestment is the process of selling off business units or divisions. True

9. A holding company structure is an example of a conglomerate diversification strategy. True

10. Corporate strategy is only relevant for large, multinational corporations. False

Business Unit Strategy:

12. Competitive advantage is the core of business unit strategy. True

13. Cost leadership is a type of business-level strategy. True

14. Differentiation is a type of business-level strategy. True

15. Focus strategies target a narrow, specific segment of the market. True

16. Stuck-in-the-middle is a viable business unit strategy. False

17. The five generic competitive strategies are cost leadership, differentiation, focus, hybrid, and stuck-
in-the-middle. False

18. The three generic competitive strategies are cost leadership, differentiation, and focus. True

19. Porter's five forces model is a tool used to analyze the industry environment. True

20. The resource-based view of the firm is a tool used to analyze the internal environment. True

Functional Strategy:
21. Functional strategy is concerned with how individual business functions contribute to the overall
strategy. True

22. Functional strategies support and implement business unit strategies. True

23. Marketing strategy is an example of a functional strategy. True

24. Operations strategy is an example of a functional strategy. True

25. Human resource strategy is an example of a functional strategy. True

26. Accounting strategy is an example of a functional strategy. True

27. Functional strategies are only relevant at the corporate level. False

28. Functional strategies should be aligned with the organization's overall strategy. True

29. Functional strategies are more important than business unit strategies. False

30. Functional strategies can create competitive advantage. True

31. Corporate strategy is only concerned with the overall direction and scope of the organization. True

32. Diversification can be achieved through vertical integration. True

33. Retrenchment strategies always involve downsizing or divestment. False

34. Business unit strategy is focused on how to compete in a particular market or industry. True

35. Cost leadership and differentiation are the only two generic competitive strategies. False

36. The resource-based view of the firm is used to analyze the external environment. False

37. Functional strategies are only concerned with improving individual business functions. False

38. Functional strategies should be aligned with the organization's overall strategy. True

39. Functional strategies are more important than business unit strategies. False

40. Functional strategies cannot create competitive advantage. False

41. The goal of corporate strategy is to maximize shareholder value. True

42. Concentric diversification involves entering unrelated industries. False

43. Downsizing is a type of growth strategy. False

44. Business unit strategy is concerned with how to compete within a particular industry or market. True

45. Focus strategies target a broad, general market segment. False

46. Porter's five forces model is used to analyze the internal environment. False

47. Functional strategies are only relevant at the corporate level. False

48. Functional strategies should be independent of the organization's overall strategy. False
49. Functional strategies are more important than business unit strategies. True

50. Functional strategies cannot create competitive advantage. False

51. Corporate strategy is only relevant for large, multinational corporations. False

52. Vertical integration is a form of related diversification. True

53. Divestment is the process of selling off business units or divisions. True

54. Business unit strategy is focused on how to compete in a particular industry or market. True

55. Differentiation is a type of cost leadership strategy. False

56. The resource-based view of the firm is a tool used to analyze the internal environment. True

57. Functional strategies are only concerned with improving individual business functions. False

58. Functional strategies should be aligned with the organization's overall strategy. True

59. Functional strategies are more important than business unit strategies. False

60. Functional strategies cannot create competitive advantage. False

61. The goal of corporate strategy is to maximize shareholder value. True

62. Conglomerate diversification involves entering unrelated industries. True

63. Retrenchment strategies always involve downsizing or divestment. False

64. Business unit strategy is concerned with how to compete within a particular industry or market. True

65. Focus strategies target a narrow, specific segment of the market. True

66. Porter's five forces model is a tool used to analyze the industry environment. True

67. Functional strategies are only relevant at the business unit level. False

68. Functional strategies should be independent of the organization's overall strategy. False

69. Functional strategies are more important than business unit strategies. False

70. Functional strategies cannot create competitive advantage. False

71. Corporate strategy is concerned with the overall purpose and scope of the organization. True

72. Diversification can be achieved through vertical integration. True

73. Downsizing is a type of growth strategy. False

74. Business unit strategy is focused on how to compete in a particular industry or market. True

75. Cost leadership and differentiation are the only two generic competitive strategies. False

76. The resource-based view of the firm is used to analyze the internal environment. True

77. Functional strategies are only concerned with improving individual business functions. False
78. Functional strategies should be aligned with the organization's overall strategy. True

79. Functional strategies are more important than business unit strategies. False

80. Functional strategies cannot create competitive advantage. False

81. The goal of corporate strategy is to maximize shareholder value. True

82. Concentric diversification involves entering related industries. True

83. Retrenchment strategies always involve downsizing or divestment. False

84. Business unit strategy is concerned with how to compete within a particular industry or market. True

85. Focus strategies target a broad, general market segment. False

86. Porter's five forces model is a tool used to analyze the industry environment. True

87. Functional strategies are only relevant at the corporate level. False

88. Functional strategies should be independent of the organization's overall strategy. False

89. Functional strategies are more important than business unit strategies. False

90. Functional strategies cannot create competitive advantage. False

91. Corporate strategy is only concerned with the overall direction and scope of the organization. True

92. Vertical integration is a form of related diversification. True

93. Downsizing is a type of retrenchment strategy. True

94. Business unit strategy is focused on how to compete in a particular industry or market. True

95. Differentiation is a type of business-level strategy. True

96. The resource-based view of the firm is used to analyze the internal environment. True

97. Functional strategies are only concerned with improving individual business functions. False

98. Functional strategies should be aligned with the organization's overall strategy. True

99. Functional strategies are more important than business unit strategies. False

100. Functional strategies cannot create competitive advantage. False