Unit 5 of 5
Study guide for CLEP CLEP Principles of Management — Unit 5: Strategy, Ethics, and Global Management. Practice questions, key concepts, and exam tips.
46
Practice Questions
0
Flashcards
6
Key Topics
Try these 5 questions from this unit. Sign up for full access to all 46.
What is a key principle of strategic ethics?
Prioritizing profits over social responsibility
Disregarding legal requirements for business growth
Ignoring stakeholder interests for competitive advantage
Focusing solely on shareholder value
Balancing financial goals with social and environmental concerns
Answer: E — Balancing financial goals with social and environmental concerns is correct because it reflects a balance between financial and social goals..
What guides a company's actions?
Code of ethics
Mission statement
Organizational chart
Job descriptions
Budget reports
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.
A manager's role in strategic ethics involves
Integrating ethical considerations into decision-making
Ignoring ethical concerns for the sake of profit
Focusing solely on legal compliance
Prioritizing personal interests over organizational goals
Disregarding stakeholder interests and social responsibility
Answer: A — Integrating ethical considerations into decision-making is correct because it involves integrating ethics into decision-making..
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:
Cost leadership strategy
Differentiation strategy
Focused cost leadership strategy
Focused differentiation strategy
Blue-ocean strategy
Answer: D — Focused differentiation targets a narrow segment (mid-sized Midwest business travelers) with a premium, differentiated offering — not broad-market differentiation.
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:
Strategic drift
Competitive disadvantage
Stuck in the middle
The efficiency frontier
Core rigidity
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.
Start with your full diagnostic, projected score, study plan and analytics, one full mock, plus 5 practice questions per course — each fully explained, no credit card required. Paid plans add unlimited practice, unlimited mock exams, and Sage.
CLEP® is a trademark registered by the College Board, which is not affiliated with, and does not endorse, this product.