41. 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
C. product differentiation in the industry is low.
42. All of the following are forces that create high rivalry within an industry EXCEPT
A. numerous or equally balanced competitors.
B. high fixed costs.
C. fast industry growth.
D. high storage costs.
Answer
C. fast industry growth.
43. According to the five factors model, an attractive industry would have all of the following characteristics EXCEPT:
A. low barriers to entry.
B. suppliers with low bargaining power.
C. a moderate degree of rivalry among competitors.
D. few good products substitute.
Answer
A. low barriers to entry.
44. Internal analysis enables a firm to determine what the firm:
A. can do.
B. should do.
C. will do.
D. might do.
Answer
A. can do.
45. An external analysis enables a firm to determine what the firm:
A. can do.
B. should do.
C. will do.
D. might do.
Answer
D. might do.
46. is/are the source of a firm’s , which is/are the source of the firm’s
A. Resources, capabilities, core competencies
B. Capabilities, resources, core competencies
C. Capabilities, resources, above average returns
D. Core competencies, resources, competitive advantage
Answer
A. Resources, capabilities, core competencies
47. In the airline industry, frequent-flyer programs, ticket kiosks, and e-ticketing are all examples of capabilities that are
A. rare.
B. causally ambiguous.
C. socially complex.
D. valuable.
Answer
D. valuable.
48. 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
C. delay responding to competitive actions.
49. Competitors are more likely to respond to competitive actions that are taken by
A. differentiators.
B. larger companies.
C. first movers.
D. market leaders.
Answer
D. market leaders.
50. ___ 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
D. Strategic management
51. Which individuals are most responsible for the success and failure of an organization?
A. Strategists
B. Financial planners
C. Personnel directors
D. Stakeholders
Answer
A. Strategists
52. Which of the following is an element of a firm’s remote external environment?
A. Competition
B. Political agencies
C. Suppliers
D. Trade union
Answer
B. Political agencies
53. Long-term objectives should be all of the following except:
A. measurable.
B. continually changing.
C. reasonable.
D. challenging.
Answer
B. continually changing.
54. What are guides to decision making?
A. laws
B. rules
C. policies
D. procedures
Answer
C. policies
55. According to Greenley, strategic management offers all of these benefits except that
A. it provides an objective view of management problems.
B. it creates a framework for internal communication among personnel.
C. it encourages a favourable attitude toward change.
D. it maximizes the effects of adverse conditions and changes.
Answer
D. it maximizes the effects of adverse conditions and changes.
56. The vision and mission statement can often be found
A. in the SEC report.
B. in annual reports.
C. on customer receipts.
D. on supplier invoices.
Answer
B. in annual reports.
57. The process of performing an external audit needs to include:
A. only top-level managers, as it’s a planning function.
B. as many managers and employees as possible.
C. primarily front-line supervisors
D. between 15 to 20 managers for it to be valid
Answer
B. as many managers and employees as possible.
58. Which of the following is not a stage of strategy formulation techniques?
A. Formulation Framework
B. Matching stage
C. External factor evaluation
D. Decision stage
Answer
B. Matching stage
59. ST Strategies is an important strategy to
A. Match weakness with opportunities of the firm
B. Overcome external threats
C. Obtain benefit from its resources
D. Overcome its weakness and reducing threats
Answer
B. Overcome external threats
60. The immediate external environment includes:
A. Divisions
B. S. B. U. s
C. Competitors
D. Management
Answer
C. Competitors
61. The comprises economic and social conditions, political priorities and technological developments, all of which must be anticipated, monitored, assessed and incorporated into the executive’s decision making.
A. Internal environment
B. Task environment
C. Operating environment
D. Societal environment
Answer
D. Societal environment
62. Strategic management involves the , directing, and controlling of acompany’s strategy-related decisions and actions.
A. Financing; marketing
B. Planning; financing
C. Planning; organizing
D. Marketing; planning
Answer
C. Planning; organizing
63. A strategy is a company’s
A. Value statement
B. Pricing policy
C. Game Plan to outsmart competitor
D. Long-term objective
Answer
C. Game Plan to outsmart competitor
64. Strategy-formulation concepts and tools
A. Do not differ greatly for different size and type of organizations
B. Differ greatly for different size and type of organizations
C. Do not differ greatly for profit or non-profit organizations but differ in small and large organizations
D. None of the mentioned options
Answer
A. Do not differ greatly for different size and type of organizations
65. Annual objectives
A. Are not critical to success
B. Serve as guidelines for action, directing and channelling efforts and activities of organization members
C. Are not important for employee motivation and identification
D. Do not provide a basis for organizational design
Answer
B. Serve as guidelines for action, directing and channelling efforts and activities of organization members
66. Which of the following resources is used by all organizations to achieve desiredobjectives?
A. Financial resources,
B. Physical resources
C. Human resources
D. All of the mentioned options
Answer
D. All of the mentioned options
67. 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
D. Based on the use of quantitative and qualitative information.
68. Large-scale, future-oriented plans, for interacting with the competitive environment to achieve company objectives refers to its
A. Strategy
B. Goals
C. Competitive analysis
D. Dynamic policies
Answer
A. Strategy
69. Strategic issues require which level of management decisions?
A. Operative
B. Top
C. Front-line
D. Middle
Answer
B. Top
70. 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
D. What do we want to become?
71. Strategic management process activates in the sequence of
A. Environmental scanning, Strategy formulation, Implementation, c ontrol and evaluation
B. Strategy formulation, Environmental scanning, Implementation, control and evaluation
C. Environmental scanning, Strategy Implementation, formulation, c ontrol and evaluation
D. Strategy formulation, Implementation, control, evaluation, Environmental scanning
Answer
A. Environmental scanning, Strategy formulation, Implementation, c ontrol and evaluation
72. “A possible and desirable future state of an organization” is called:
A. Mission
B. Vision
C. Strategy implementation
D. None of above
Answer
B. Vision
73. Strategic decisions are based on what managers , rather than on what they
A. Know; forecast
B. React to; anticipate
C. Forecast; know
D. Compromise with; analyse
Answer
C. Forecast; know
74. “To improve economic strength of society and function as a good corporate citizen on alocal, state, and national basis in all countries in which we do business”. This is a mission statement that contains:
A. Self-concept
B. Economic concern
C. Products or Services
D. Concern for Public Image
Answer
D. Concern for Public Image
75. Strategic-management audit is known as:
A. Environmental scanning
B. Strategy formulation
C. Strategy control
D. Strategy evaluation
Answer
A. Environmental scanning
76. Forecasting tools can be broadly categorized into two groups. Those are:
A. Qualitative, Operational
B. Quantitative, Operational
C. Qualitative, Quantitative
D. Regression and time series analysis
Answer
C. Qualitative, Quantitative
77. 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
A. Competitive Profile Matrix
78. Organizing means an identifiable group of people contributing their efforts towards the attainment of same goal. It is important at the time of:
A. Environmental scanning
B. Strategy formulation
C. Strategy Implementation
D. Strategy evaluation
Answer
C. Strategy Implementation
79. Which statement best describes intuition?
A. It represents the marginal factor in decision-making.
B. It represents a minor factor in decision-making integrated with analysis.
C. It should be coupled with analysis in decision-making.
D. It is better than analysis in decision-making.
Answer
C. It should be coupled with analysis in decision-making.
80. What are the means by which long-term objectives will be achieved?
A. Strategies.
B. Strengths
C. Weaknesses.
D. Policies.
Answer
A. Strategies.
