1003 + Mcqs in Strategic Management Page 5 McqOptions

201.	The purpose of strategy evaluation is to
A.	increase the budget annually.
B.	alert management to problems or potential problems.
C.	make budget changes.
D.	evaluate employees’ performance.
Answer» C. make budget changes.

Discussion

202.	Vertical integration strategies
A.	Extend a company's competitive scope within the same industry by expanding its operations across more parts of the industry value chain
B.	Are one of the best strategic options for helping companies win the race for global market leadership
C.	Offer good potential to expand a company's line up of products and services
D.	All of these
Answer» B. Are one of the best strategic options for helping companies win the race for global market leadership

Discussion

203.	Business strategy can be thought of a set of hypotheses about the relationship of
A.	Input and output
B.	Cause and effect
C.	Transformation processes
D.	Modeling and planning
Answer» C. Transformation processes

Discussion

204.	They have time-based utility
A.	Goals
B.	Resources
C.	both ‘A’ and ‘B’
D.	None of the above
Answer» D. None of the above

Discussion

205.	Attack strategies are
A.	Frontal attack
B.	Flank attack
C.	Encirclement attack
D.	all of the above
Answer» E.

Discussion

206.	Market research is conducted by
A.	By employees
B.	By research agencies
C.	By consultants
D.	All of the above
Answer» E.

Discussion

207.	identifies a firm’s major competitors and their particular strengths and weaknesses in relation to a sample firm’s strategic position.
A.	Competitive Profile Matrix
B.	External Factor Evaluation matrix
C.	Internal Factor Evaluation Matrix
D.	Boston consulting group matrix
Answer» B. External Factor Evaluation matrix

Discussion

208.	The goal of the organization’s is to capture the hearts and minds of employees, challenge them, and evoke their emotions and dreams.
A.	vision
B.	mission
C.	culture
D.	strategy
Answer» B. mission

Discussion

209.	Strategic-management audit is known as:
A.	Environmental scanning
B.	Strategy formulation
C.	Strategy control
D.	Strategy evaluation
Answer» B. Strategy formulation

Discussion

210.	--------- factors include population growth, age, demographics and attitudes towardshealth.
A.	Political
B.	Economical
C.	Social
D.	None of these
Answer» D. None of these

Discussion

211.	Which of the following is not an external environment component of a business?
A.	Competitors
B.	Corporate structure
C.	Suppliers
D.	customers
Answer» C. Suppliers

Discussion

212.	The resource-based model of the firm argues that:
A.	all resources have the potential to be the basis of sustained competitive advantage.
B.	resources are not a source of potential competitive advantage.
C.	the key to competitive success is the structure of the industry in which the firm competes.
D.	resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies.
Answer» E.

Discussion

213.	---------- is described as the process which examines all the components, internal orexternal, that has an influence on the performance of the organization.
A.	Environmental analysis
B.	Competitor analysis
C.	Macro analysis
D.	Any of the above
Answer» B. Competitor analysis

Discussion

214.	The most complex structure of Strategic organisation is:
A.	Functional
B.	Transnational
C.	Matrix
D.	Divisional
Answer» D. Divisional

Discussion

215.	The environmental segments that comprise the general environment typically will NOTinclude:
A.	demographic factors.
B.	sociocultural factors.
C.	substitute products or services.
D.	technological factors.
Answer» D. technological factors.

Discussion

216.	For backward vertical integration into the business of suppliers to be a viable and profitable strategy, a company
A.	Must first be a proficient manufacturer
B.	Must be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop-off in quality
C.	Must have excess production capacity, so that it has ample in-house ability to undertake additional production activities
D.	None of these
Answer» C. Must have excess production capacity, so that it has ample in-house ability to undertake additional production activities

Discussion

217.	Changes in company ………. also necessitates changes in the systems in variousdegrees
A.	structure
B.	system
C.	strategy
D.	turnover
Answer» C. strategy

Discussion

218.	Horizontal integration is concerned with;
A.	Production
B.	Quality
C.	Product planning
D.	All of the above
Answer» B. Quality

Discussion

219.	Firms with few competitive resources are more likely
A.	to not respond to competitive actions.
B.	respond quickly to competitive actions.
C.	delay responding to competitive actions.
D.	respond to strategic actions, but not to tactical actions.
Answer» D. respond to strategic actions, but not to tactical actions.

Discussion

220.	----------- strategy defines the day to day actions need to deliver the corporate andbusiness strategies.
A.	Core strategy
B.	Operational Strategy
C.	Corporate strategy
D.	Functional strategy
Answer» E.

Discussion

221.	---------- strategy defines the uses of corporate strategy and specific tactics for eachmarket.
A.	Business strategy
B.	Corporate strategy
C.	Functional strategy
D.	Operational strategy
Answer» B. Corporate strategy

Discussion

222.	Which of the following are signs of weakness in a company’s competitive position?
A.	A return-on-equity is below 25% and earnings per share of less than Rs. 2.00
B.	A price set by the firm higher than its rivals
C.	A declining market share, poor product quality and few sales in market
D.	Lower revenues and profit margin and narrow product line than the market leader
Answer» D. Lower revenues and profit margin and narrow product line than the market leader

Discussion

223.	Under ----------- approach of implementation strategies are moving from bottom to upward.
A.	Commander approach
B.	Organisational change approach
C.	Collaborative approach
D.	Crescive approach
Answer» E.

Discussion

224.	When implementing a focus strategy, the firm seeks:
A.	to be the lowest cost producer in an industry.
B.	to offer products with unique features for which customers will pay a premium.
C.	to avoid being stuck in the middle.
D.	to serve the specialized needs of a market segment.
Answer» E.

Discussion

225.	The immediate external environment includes:
A.	Divisions
B.	S. B. U. s
C.	Competitors
D.	Management
Answer» D. Management

Discussion

226.	Characteristics of a business which makes it disadvantageous relative to competitors.
A.	Threat
B.	Failure
C.	Weakness
D.	None of these
Answer» D. None of these

Discussion

227.	The control process requires the following types of information
A.	Planned performance
B.	Variances
C.	Reasons
D.	All of the above
Answer» E.

Discussion

228.	In PEST analysis, “P” stands for------------
A.	Profitability factors
B.	Productivity factors
C.	Political factors
D.	Pricing factors
Answer» D. Pricing factors

Discussion

229.	Strategies such as diversification, penetration and market development are part of
A.	extensive growth
B.	intensive growth
C.	integrative growth
D.	disintegrative growth
Answer» C. integrative growth

Discussion

230.	Scorecard facilitates the strategy review essential for
A.	Strategic learning
B.	Strategic plan
C.	Strategic domain
D.	Strategic model
Answer» B. Strategic plan

Discussion

231.	It is designed to monitor a broad range of events inside and outside the companythat are likely to threaten a firm’s strategy
A.	Strategic surveillance
B.	Strategic planning
C.	both ‘A’ and ‘B’
D.	None of the above
Answer» B. Strategic planning

Discussion

232.	Vertical integration is concerned with
A.	supply chain
B.	production
C.	Quality
D.	planning
Answer» B. production

Discussion

233.	Strategic management is
A.	A pure science.
B.	Based mainly on intuition.
C.	Needed mainly when organizational performance falls.
D.	Based on the use of quantitative and qualitative information.
Answer» E.

Discussion

234.	Gary Hamel believes that
A.	Senior management hammers out the strategy and hands it down.
B.	Imaginative ideas on strategy exist in many places within a company
C.	The strategy comes from outside the organization
D.	None of the above
Answer» C. The strategy comes from outside the organization

Discussion

235.	Change in company’s ………. gives rise to problems necessitating a new ……… to be made
A.	structure, strategy
B.	strategy, structure
C.	structure, structure
D.	strategy, strategy
Answer» C. structure, structure

Discussion

236.	Which of the following is NOT an assumption of the resource-based model?
A.	Each firm is a unique collection of resources and capabilities.
B.	All firms possess the same strategically relevant resources.
C.	Resources are not highly mobile across firms.
D.	Firms acquire different resources and capabilities over time.
Answer» C. Resources are not highly mobile across firms.

Discussion

237.	The word “strategy” is derived from the Greek word “------"
A.	Strategos
B.	Stratum
C.	Strategy
D.	All of these
Answer» B. Stratum

Discussion

238.	The three main organizational levels are:
A.	corporate level, business level, functional level
B.	corporate level, business unit level, functional level
C.	corporate strategy level, business unit level, functional level
D.	corporate strategy level, business level, specialist level
Answer» B. corporate level, business unit level, functional level

Discussion

239.	Which one of the following is at the core of strategic management?
A.	Choosing which organisational objectives to focus on
B.	Being alert for opportunities to change work responsibilities
C.	Adapting the organisation to a changing external environment
D.	Choosing whether to make decisions autocratically or on the basis of participation
Answer» D. Choosing whether to make decisions autocratically or on the basis of participation

Discussion

240.	New entrants to an industry are more likely when (i.e., entry barriers are low when…)
A.	it is difficult to gain access to distribution channels.
B.	economies of scale in the industry are high.
C.	product differentiation in the industry is low.
D.	capital requirements in the industry are high.
Answer» D. capital requirements in the industry are high.

Discussion

241.	Which of these basic questions should a vision statement answer?
A.	What is our business?
B.	Who are our employees?
C.	Why do we exist?
D.	What do we want to become?
Answer» E.

Discussion

242.	Which of the following is NOT an entry barrier to an industry?
A.	expected competitor retaliation
B.	economies of scale
C.	customer product loyalty
D.	bargaining power of suppliers
Answer» E.

Discussion

243.	Strategic issues require which level of management decisions?
A.	Operative
B.	Top
C.	Front-line
D.	Middle
Answer» C. Front-line

Discussion

244.	A ------------ is defined as an organization that has developed the capacity tocontinuously learn, adapt, and change.
A.	Change management
B.	Strategic Change
C.	Learning organisation
D.	Strategic organisation
Answer» D. Strategic organisation

Discussion

245.	When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit.
A.	economic
B.	political
C.	technological
D.	competitive
Answer» C. technological

Discussion

246.	Strategy evaluation at the level involves using specific performancemeasures-qualitative and quantitative-for each functional area.
A.	organizational
B.	operational
C.	functional
D.	production
Answer» D. production

Discussion

247.	The central purpose of strategic evaluation is ---------------
A.	Evaluate effectiveness of strategy to achieve organisational objectives
B.	Evaluate effectiveness of control system to measure achievements.
C.	Evaluate effectiveness of strategies to be implemented efficiently.
D.	Evaluate effectiveness of the strategy implementation process.
Answer» B. Evaluate effectiveness of control system to measure achievements.

Discussion

248.	A strategy is a company’s
A.	Value statement
B.	Pricing policy
C.	Game Plan to outsmart competitor
D.	Long-term objective
Answer» D. Long-term objective

Discussion

249.	------- can be defined as the art and science of formulating, implementing andevaluating cross-functional decisions that enable an organization to achieve its objectives.
A.	Strategy formulation
B.	Strategy evaluation
C.	Strategy implementation
D.	Strategic management
Answer» E.

Discussion

250.	For intensive growth, the company first considers whether it could gain moremarket share with its current products in their current market, using a
A.	Market-penetration strategy
B.	Market development strategy
C.	Product-development strategy
D.	Diversification strategy
Answer» B. Market development strategy

Discussion

Explore topic-wise MCQs in General Management.

The purpose of strategy evaluation is to

Vertical integration strategies

Business strategy can be thought of a set of hypotheses about the relationship of

They have time-based utility

Attack strategies are

Market research is conducted by

identifies a firm’s major competitors and their particular strengths and weaknesses in relation to a sample firm’s strategic position.

The goal of the organization’s is to capture the hearts and minds of employees, challenge them, and evoke their emotions and dreams.

Strategic-management audit is known as:

--------- factors include population growth, age, demographics and attitudes towardshealth.

Which of the following is not an external environment component of a business?

The resource-based model of the firm argues that:

---------- is described as the process which examines all the components, internal orexternal, that has an influence on the performance of the organization.

The most complex structure of Strategic organisation is:

The environmental segments that comprise the general environment typically will NOTinclude:

For backward vertical integration into the business of suppliers to be a viable and profitable strategy, a company

Changes in company ………. also necessitates changes in the systems in variousdegrees

Horizontal integration is concerned with;

Firms with few competitive resources are more likely

----------- strategy defines the day to day actions need to deliver the corporate andbusiness strategies.

---------- strategy defines the uses of corporate strategy and specific tactics for eachmarket.

Which of the following are signs of weakness in a company’s competitive position?

Under ----------- approach of implementation strategies are moving from bottom to upward.

When implementing a focus strategy, the firm seeks:

The immediate external environment includes:

Characteristics of a business which makes it disadvantageous relative to competitors.

The control process requires the following types of information

In PEST analysis, “P” stands for------------

Strategies such as diversification, penetration and market development are part of

Scorecard facilitates the strategy review essential for

It is designed to monitor a broad range of events inside and outside the companythat are likely to threaten a firm’s strategy

Vertical integration is concerned with

Strategic management is

Gary Hamel believes that

Change in company’s ………. gives rise to problems necessitating a new ……… to be made

Which of the following is NOT an assumption of the resource-based model?

The word “strategy” is derived from the Greek word “------"

The three main organizational levels are:

Which one of the following is at the core of strategic management?

New entrants to an industry are more likely when (i.e., entry barriers are low when…)

Which of these basic questions should a vision statement answer?

Which of the following is NOT an entry barrier to an industry?

Strategic issues require which level of management decisions?

A ------------ is defined as an organization that has developed the capacity tocontinuously learn, adapt, and change.

When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit.

Strategy evaluation at the level involves using specific performancemeasures-qualitative and quantitative-for each functional area.

The central purpose of strategic evaluation is ---------------

A strategy is a company’s

------- can be defined as the art and science of formulating, implementing andevaluating cross-functional decisions that enable an organization to achieve its objectives.

For intensive growth, the company first considers whether it could gain moremarket share with its current products in their current market, using a