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Unit 5: Strategy, Ethics, and Global Management

Study guide for CLEP CLEP Principles of Management — Unit 5: Strategy, Ethics, and Global Management. Practice questions, key concepts, and exam tips.

47

Practice Questions

0

Flashcards

6

Key Topics

Key Concepts to Study

Porter's five forces
competitive advantage
corporate social responsibility
ethical decision-making
stakeholder theory
global expansion strategies

Sample Practice Questions

Try these 5 questions from this unit. Sign up for full access to all 47.

Q1EASY

What is a key principle of strategic ethics?

A) Prioritizing profits over social responsibility
B) Disregarding legal requirements for business growth
C) Ignoring stakeholder interests for competitive advantage
D) Focusing solely on shareholder value
E) Balancing financial goals with social and environmental concerns
Show Answer

Answer: E — Balancing financial goals with social and environmental concerns is correct because it reflects a balance between financial and social goals..

Q2MEDIUM

What guides a company's actions?

A) Code of ethics
B) Mission statement
C) Organizational chart
D) Job descriptions
E) Budget reports
Show Answer

Answer: A — Code of ethics is correct because a code of ethics guides a company's actions. Mission statements, while important, do not directly guide actions.

Q3EASY

A manager's role in strategic ethics involves

A) Integrating ethical considerations into decision-making
B) Ignoring ethical concerns for the sake of profit
C) Focusing solely on legal compliance
D) Prioritizing personal interests over organizational goals
E) Disregarding stakeholder interests and social responsibility
Show Answer

Answer: A — Integrating ethical considerations into decision-making is correct because it involves integrating ethics into decision-making..

Q4MEDIUM

A regional airline decides to serve only business travelers flying between mid-sized Midwestern cities, offering premium amenities at a price above the industry average. According to Porter's generic strategies, this firm is pursuing a:

A) Cost leadership strategy
B) Differentiation strategy
C) Focused cost leadership strategy
D) Focused differentiation strategy
E) Blue-ocean strategy
Show Answer

Answer: D — Focused differentiation targets a narrow segment (mid-sized Midwest business travelers) with a premium, differentiated offering — not broad-market differentiation.

Q5HARD

Porter warned that a firm failing to achieve any of the three generic strategies — cost leadership, differentiation, or focus — would likely end up in a competitively weak position he called:

A) Strategic drift
B) Competitive disadvantage
C) Stuck in the middle
D) The efficiency frontier
E) Core rigidity
Show Answer

Answer: C — 'Stuck in the middle' is Porter's specific term for firms that lack a clear generic strategy, leaving them without a sustainable competitive advantage.

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Study Tips for Unit 5: Strategy, Ethics, and Global Management

  • Focus on understanding concepts, not memorizing facts — CLEP tests application
  • Practice with timed questions to build exam-day speed
  • Review explanations for wrong answers — they reveal common misconceptions
  • Use flashcards for key terms, practice questions for deeper understanding

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