Subject I – multiple choice (just one is correct

1.) Strategy formulation involves determining all of the following aspects of the
organization, except for:
a. Mission
b. Profits
c. Goals
d. Objectives
2.) According to Porter’s 5 Forces model, the bargaining power of suppliers is
high when there are:
a. Many suppliers
b. No complementary goods
c. Many substitute inputs
d. No switching costs
3.) According to Porter’s 5 Forces model, the intensity of rivalry is higher (more
intense) when there:
a. Is a strong loyalty
b. Is a high industry growth rate
c. Are high entry barriers
d. Are many suppliers for the inputs
4.) Environmental uncertainty exists under all the following conditions, except for
when the environment is:
a. Vague
b. Easy to diagnose
c. Unpredictable
d. Hard to diagnose
5.) As gasoline prices dropped in a period of time, consumers became interested
in all of the following automobile characteristics except for:
a. Car size
b. Car performance
c. Car fuel economy
d. Car design
6.) The strategic groups represent a tool of analysis of:
a. Competition
b. Suppliers
c. Customers

Subject II – True or False
1. Customers are not part of an organization’s external environment.
2. Organizations usually tailor a structure in coping (a se mula, a se potrivi)
with the environment. – FALSE (It looks like it might be true. Because
organizations should do that, but that is a perfect scenario compared to real
life. Take notice of the word usually!)
3. Technological routine deals with doing the same thing everyday.
4. Market growth rate determines the way a business unit generates cash.
5. Strategy is the process by which top executives seek to cope with the
constraints and opportunities posed by the organization’s environment.

consumers which usually buy a specific product. entrance/exit barriers. 2. Which is the most important force out of Porter’s 5 Forces Model and why? . An increase in consumers’ wealth. about half a page.Subject III – Short answers 1. strategic innovation. If the price of a product is reduced. mention them all and then comment on the one you’ve chosen (There is one considered to be the most important by specialists). Which is the difference between Business and Corporate Strategy? (At least 3 aspects!) 2. 1. might it determine sales dropping of that product? 3.Attention: first write about Porter’s 5 Forces Model. segmentation. the learning effect. AXATI-VA PE: BCG. Subject IV – Detailed answer. What are the implications of BCG matrix? PENTRU INVATAT. strategic groups. . might determine lower sales of that specific product. sources of differentiation. Value Chain.