1. Which of the following is NOT shown by the Congruence model?

a. It shows that managers must analyse their external environment and organizational resources and set a strategy to achieve their goals

b. it shows how firms should formulate their strategies to compete and grow

c. it shows that firms should keep their inputs separate from the transformation process to generate outputs

d. it shows the importance of fit between different elements of the model

2. Which of the following could be considered a resource-based synergy?

a. Exerting market power by gaining greater control over the value chain

b. Jointly selling acquirer and target products to clients resulting in sales growth that neither firm could achieve alone

c. A company divesting one of its divisions

d. All of the above

3. Typical barriers to entry do NOT include

a. Key locations that are crucial for a business

b. Restrictive government policies

c. Incumbent firms' economies of scale

d. Incumbent firms' strategic positioning

4.How can management best design a company's value chain to reinforce strategic positioning?

a. Ensure activities are consistent, reinforcing, and interdependent wherever possible

b. Analyse competitors and imitate leading strategies

c. Look for opportunities to reduce costs while simultaneously increasing willingness to pay

d. Minimise trade-offs whenever possible

5. Which of the following does NOT describe business strategy or corporate strategy correctly?

a. Business strategy focuses on strengthening a firm's competitive advantage through strategic positioning

b. Corporate strategy focuses on designing a well-aligned value chain that helps a firm achieve competitive advantage in its main business

c. Business strategy focuses on how to compete with other firms in a specific business

d. Corporate strategy focuses on how to allocate resources across different businesses and construct a portfolio