A、 The model provides a framework analyzing the attractiveness of the given industry based on the level of competition.

B、The five forces include threat of new entrants, bargaining power of suppliers, bargaining power of vendors, threat of substitutes, and rivalry among existing competitors.

C、The profitability of the company is affected by rivalry among existing competitors (i.e., the level of competition)

D、The model supports the new paradigm of stakeholder management.

A、 Corporate-level strategy means the choice of industry.

B、 Examples of business-level strategy include cost-leadership strategy and differentiation strategy.

C、Functional-level strategy should be fit with the upper level strategies such as business-level strategy.

D、Enterprise-level strategy is only symbolic and no need to be reflected in the lower level strategies.

A、As a classical theory, it explains four major processes of management.

B、 Four managerial processes include ‘Planning-Organizing-Controlling-Internalizing’

C、 Planning means a managerial process of establishing mission and goals, and formulating strategies.

D、Organizing means a managerial process of designing the rational organization structure.

A、The best management practice depends on the contexts in which the company operates.

B、The theory best fits when the company operates in the monopoly market.

C、The contextual variables only include technological factors while ignoring cultural factors.

D、The theory will lose its validity if the company’s environmental uncertainty increases.

A、Business corporations need to maximize its profits even at the costs of stakeholders.

B、Business corporations are able to create profits maintaining win-win collaboration with stakeholders.

C、Stakeholders of business corporations include employees, customers, investors, partners, community, and natural environment

D、Stakeholder management perspective includes open system approach.

A、 It is associated with high degree of division of labor which makes employees more difficult to pertain their job identity.

B、It is associated with employees’ relatively low autonomy and low discretionary power.

C、 Decision making processes are centralized.

D、It supports organization’s learning capability.

A、Effectiveness means goal attainment

B、 Efficiency means cost minimization

C、Equity means stakeholders’ perception of fairness

D、Efficiency is always more important than effectiveness

A、The concept is introduced by a MIT professor Peter Senge.

B、 Organization’s learning capability is critical for a company’s competitiveness in the market.

C、Organization’s learning capability is more important if a company operates in the monopoly market.

D、 Front line employees’ experiences in identifying and solving problems are important.