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Introduction to Organization and Management Principles (FDNMANP)

Chapter 8 · Formulating Strategy

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Source-grounded formulating strategy study materials for FDNMANP_C17A. Original practice questions; chapter references included.

Jade Laurence EmpleoPublic20 questionsIntroduction to Organization and Management Principles (FDNMANP)Updated
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Original practice exam based on chapter concepts, not an official/sample Canvas quiz. Choose the one best answer using this textbook's terminology. Adapted under CC BY-SA 4.0. https://pressbooks.openedmb.ca/management/?p=92

Questions

01A statement explains why an organization exists and whom it serves. Which concept is it?
  1. Portfolio market share
  2. Mission
  3. Vision only
  4. Operational schedule
Dyck et al. (2026), Chapter 8, 8.2
02A statement describes the organization it hopes to become in seven years. Which concept fits?
  1. A standing procedure
  2. Vision
  3. A current cost invoice
  4. Supplier power
Dyck et al. (2026), Chapter 8, 8.2
03Which vision statement quality is recommended by the textbook?
  1. Clear and stable while future oriented and challenging
  2. Focused solely on completed past tasks
  3. Rewritten every week
  4. Long enough to include every operating rule
Dyck et al. (2026), Chapter 8, Table 8.2
04A firm owns specialized equipment, has expert employees and a strong cooperative culture. How are these respectively classified?
  1. Physical, human and intangible resources
  2. Human, intangible and physical resources
  3. Only physical resources
  4. External opportunities, threats and industries
Dyck et al. (2026), Chapter 8, 8.3.1
05A firm has an ability essential to its goals but no superiority over competitors. What does this establish?
  1. A distinctive competency by definition
  2. A substitute from another industry
  3. A corporate divestment
  4. A core competency, but not necessarily a distinctive one
Dyck et al. (2026), Chapter 8, 8.3.2
06A patented product has no useful application for the firm's mission or customers. Which conclusion follows from VRIN?
  1. Rarity eliminates the need for demand.
  2. Inimitability alone does not make the resource valuable.
  3. Non-substitutability guarantees profitability.
  4. Every patent is automatically valuable.
Dyck et al. (2026), Chapter 8, 8.3.2
07A trained workforce and growing demand are identified in SWOT. Where do they belong respectively?
  1. Strength and opportunity
  2. Threat and weakness
  3. Weakness and threat
  4. Opportunity and strength
Dyck et al. (2026), Chapter 8, 8.3–8.4
08An organization depends on one specialized input provider that can set unfavorable terms. Which force is strongest?
  1. Customer power
  2. Industry growth
  3. Supplier power
  4. A vision statement
Dyck et al. (2026), Chapter 8, 8.4.1
09Several large buyers dominate a producer's sales and demand price cuts. Which force is described?
  1. Customer power
  2. Threat of new entrants
  3. Resource rarity
  4. The long tail
Dyck et al. (2026), Chapter 8, 8.4.2
10A virtual meeting service replaces some demand for airline business travel. What force does it illustrate?
  1. A human resource
  2. Upward integration
  3. Only direct airline rivalry
  4. Substitutes
Dyck et al. (2026), Chapter 8, 8.4.3
11A sector requires huge start-up investment and difficult licences. What is the expected effect on entry?
  1. No possible rivalry among existing firms
  2. A lower threat of new entrants
  3. A higher threat solely because of high costs
  4. Guaranteed positive externalities
Dyck et al. (2026), Chapter 8, 8.4.4
12An industry has slow growth, similar products and low switching costs. What is likely?
  1. Only internal weaknesses
  2. No substitutes
  3. More intense rivalry
  4. Guaranteed monopoly profits
Dyck et al. (2026), Chapter 8, 8.4.5
13A retailer lowers costs by reducing energy use and packaging, thereby improving profit. Which strategy fits?
  1. Unrelated diversification
  2. A random decision model
  3. TBL cost leadership
  4. SET transformer solely because it saves money
Dyck et al. (2026), Chapter 8, 8.5.1
14A service reduces harmful waste even when doing so lowers its margin, while staying financially viable. Which strategy best fits?
  1. TBL only because it has customers
  2. FBL cost leadership by definition
  3. Question mark
  4. SET minimizer
Dyck et al. (2026), Chapter 8, 8.5.1
15A firm both reduces pollution and trains excluded workers for meaningful jobs. Which SET strategy combines these effects?
  1. Only cost leadership
  2. Unrelated diversification
  3. Compounder
  4. Only minimizer
Dyck et al. (2026), Chapter 8, 8.5.1
16A food producer acquires the farm that supplies its ingredients. What is this in the chapter's terms?
  1. Divestment
  2. Downward vertical integration
  3. Upward vertical integration
  4. Horizontal integration
Dyck et al. (2026), Chapter 8, 8.5.2
17An SBU has high share in a mature, low-growth industry. Which BCG category applies?
  1. Cash cow
  2. Pet
  3. Question mark
  4. Star
Dyck et al. (2026), Chapter 8, 8.5.2
18An SBU has low share in a rapidly growing industry. Which BCG category applies?
  1. Pet
  2. Star
  3. Cash cow
  4. Question mark
Dyck et al. (2026), Chapter 8, 8.5.2
19An activity strongly restores social well-being but still creates large ecological harms. Which alternative matrix category fits?
  1. Cash cow
  2. Sustainability hero
  3. Innocent bystander
  4. Fragile player
Dyck et al. (2026), Chapter 8, 8.5.2
20What is a limitation of the conventional BCG matrix highlighted by the text?
  1. It contains no financial dimensions.
  2. It omits socio-ecological well-being from its two axes.
  3. It cannot distinguish high and low share.
  4. It measures only stakeholder participation.
Dyck et al. (2026), Chapter 8, 8.5.2
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