MEM Strategic Management 4

Question 1

A company faces a 'prisoner's dilemma' in competitive strategy when:

Accepted Answer

Both firms would be better off cooperating, but self-interest drives them to compete destructively

Answer

The prisoner's dilemma illustrates how rational self-interest leads competing firms to mutually destructive outcomes when cooperation would benefit both.

Question 2

The primary purpose of scenario planning in strategic management is to:

Accepted Answer

Prepare the organization to respond to multiple plausible future environments

Answer

Scenario planning develops distinct narratives of possible futures so that strategies remain robust across a range of conditions, not just the expected case.

Question 3

In the BCG Growth-Share Matrix, a business unit classified as a 'dog' is characterized by:

Accepted Answer

Low market growth and low relative market share

Answer

Dogs have low growth and low share, generating minimal cash and offering little strategic opportunity, making divestiture a common recommendation.

Question 4

Strategic leadership in engineering firms requires balancing 'exploitation' and 'exploration.' These terms respectively refer to:

Accepted Answer

Improving existing operations and pursuing new innovations

Answer

Exploitation refines and extends current competencies for near-term performance, while exploration develops new capabilities for future competitiveness.

Question 5

Which of the following BEST describes a 'corporate parenting advantage'?

Accepted Answer

A parent company's ability to add more value to its business units than any other owner could

Answer

Corporate parenting advantage exists when headquarters adds more value to its portfolio businesses—through resources, capabilities, or coordination—than alternative owners would.

MEM - Master of Engineering Management Practice Test

MEM - Master of Engineering Management Practice Test

MEM Strategic Management 4