Are You a Strategic Thinker?

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Questions and Answers

What is the purpose of strategic planning?

  • To identify the implications of market changes
  • To develop core competencies
  • To organize value creation
  • To determine how the firm can best achieve its goals (correct)

What is a core competency?

  • The ultimate goal of an MNE firm
  • A bundle of resources and capabilities (correct)
  • The set of linked activities the company performs to design, make, market, distribute, and support a product
  • The measure of a firm's capability of selling what it makes for more than the costs incurred in making it

What is the value chain?

  • The stocks of available factors that managers bundle together into capabilities
  • The set of linked activities the company performs to design, make, market, distribute, and support a product (correct)
  • The measure of a firm's capability of selling what it makes for more than the costs incurred in making it
  • The idealization of what an MNE firm wants to be

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