81. 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
B. political
82. is not part of an external audit.
A. Analysing competitors
B. Analysing financial ratios
C. Analysing available technologies
D. Studying the political environment
Answer
B. Analysing financial ratios
83. Typically, how many strategic decision levels are in the corporate decision-makinghierarchy?
A. 3
B. 4
C. could be more than 5
D. 2
Answer
A. 3
84. External assessment is performed in which of the strategic management phase?
A. Strategy formulation stage
B. Strategy implementation stage
C. Strategy evaluation stage
D. All of the given options
Answer
A. Strategy formulation stage
85. Political variables have a significant effect on
A. Strategy formulation and implementation
B. Strategy formulation and evaluation
C. Strategy implementation and evaluation
D. Strategy formulation, implementation and evaluation
Answer
A. Strategy formulation and implementation
86. Strategic decisions ostensibly commit the firm for
A. 1 -2 years
B. The short term
C. one years
D. A long time, typically five years
Answer
D. A long time, typically five years
87. Social responsibility is a critical consideration for a company’s strategic decision makers since
A. Stockholders demand it
B. The mission statement must express how the company intends to contribute to the societies that sustain it
C. It increases a company’s profits
D. It helps make decisions
Answer
B. The mission statement must express how the company intends to contribute to the societies that sustain it
88. 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
C. A declining market share, poor product quality and few sales in market
89. It directs at developing new products before competitors do at improving product quality or at improving manufacturing processes to reduce costs.
A. Marketing
B. Opportunity analysis
C. Research and development
D. Management
Answer
C. Research and development
90. “Identifying and evaluating key social, political, economic, technological and competitive trends and events”. Which of the followings best describes this statement?
A. Developing an effective mission statement
B. Conducting an internal audit
C. Performing an external audit
D. Formulating strategy
Answer
C. Performing an external audit
91. 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
A. Evaluate effectiveness of strategy to achieve organisational objectives
92. 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
C. functional
93. ___ 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
A. Environmental analysis
94. Which of the following is not an external environment component of a business?
A. Competitors
B. Corporate structure
C. Suppliers
D. customers
Answer
B. Corporate structure
95. ___ analysis begins with identifying present as well as potential competitors.
A. Environment
B. Internal
C. Competitor
D. External
Answer
C. Competitor
96. Characteristics of a business which makes it disadvantageous relative to competitors.
A. Threat
B. Failure
C. Weakness
D. None of these
Answer
C. Weakness
97. Elements in a company’s external environment that allow to formulate and implementstrategies to increase profitability.
A. Strength
B. Success
C. opportunity
D. productivity
Answer
C. opportunity
98. In PEST analysis, “P” stands for ___
A. Profitability factors
B. Productivity factors
C. Political factors
D. Pricing factors
Answer
C. Political factors
99. In PEST analysis, “S” stands for ___
A. Stability factors
B. Social factors
C. Sales factors
D. Strategic factors
Answer
B. Social factors
100. In PEST analysis, “T” stands for ___
A. Tactical factors
B. Threat factors
C. Task factors
D. Technological factors
Answer
D. Technological factors
101. In BCG Matrix, “BCG” stands for ___
A. Budgeted and Controlled Growth
B. Basic Categorised Growth
C. Boston Consultancy Group
D. Bata Consultancy Group
Answer
C. Boston Consultancy Group
102. It is often useful to complete a ___ analysis before completing a ___ analysis.
A. SWOT, PEST
B. Competitor, PEST
C. PEST, SWOT
D. Strategic, Competitor
Answer
C. PEST, SWOT
103. ___ factors include population growth, age, demographics and attitudes towardshealth.
A. Political
B. Economical
C. Social
D. None of these
Answer
C. Social
104. Which of the following is/are coming under ‘Porter’s Five Forces?
A. Threat of new potential entrants
B. Threat of substitute product/services
C. Bargaining power of suppliers
D. All of these
Answer
D. All of these
105. Which of the following is/are not coming under ‘Porter’s Five Forces?
A. Threat of new potential entrants
B. Threat of substitute product/services
C. Bargaining power of employees
D. None of these.
Answer
C. Bargaining power of employees
106. ‘Four Corner Analysis model’ is developed by
A. Robert S Kaplan
B. Peter F Drucker
C. C K Prahalad
D. Michael Porter
Answer
D. Michael Porter
107. Which of the following is/are component/s of ‘Four Corner Analysis’?
A. future goals
B. current strategy
C. assumptions
D. All of these
Answer
D. All of these
108. Which of the following is/are not component/s of ‘Four Corner Analysis’?
A. Drivers
B. Capabilities
C. Assumptions
D. None of these
Answer
D. None of these
109. ___ is a favourable position a business holds in the market which results in morecustomers and profits.
A. Competitive Advantage
B. Core Competency
C. Strength
D. Any of the above
Answer
A. Competitive Advantage
110. Which of the following is not a basic determinant of Competitive advantage?
A. Target market
B. Competition
C. USP
D. None of the above.
Answer
D. None of the above.
111. Horizontal integration is concerned with;
A. Production
B. Quality
C. Product planning
D. All of the above
Answer
A. Production
112. It refers to formal and informal rules, regulations and procedures thatcomplement the company structure
A. Strategy
B. Systems
C. Environment
D. All of the above
Answer
B. Systems
113. Micro environment is the ___ environment of a company.
A. Working
B. Human
C. External
D. Internal
Answer
D. Internal
114. Techniques used in environmental appraisal are
A. single-variable extrapolation/multivariable interaction analysis
B. Structured/ unstructured expert/inexpert opinion
C. Dynamic modes and mapping
D. All of the above
Answer
D. All of the above
115. It enables the strategists to take corrective action at the right time
A. Implementation control
B. Special alert control
C. Strategic Surveillance control
D. Premise control
Answer
D. Premise control
116. Changes in company ___ also necessitates changes in the systems in variousdegrees
A. structure
B. system
C. strategy
D. turnover
Answer
B. system
117. The actual performance deviates positively over the budgeted performance. This isan indication of ___. performance.
A. superior
B. inferior
C. contant
D. any of the above
Answer
A. superior
118. Criteria for making an evaluation is (are)
A. Consistency with goals
B. Consistency with environment
C. Money
D. All of the above
Answer
D. All of the above
119. They have time-based utility
A. Goals
B. Resources
C. both ‘A’ and ‘B’
D. None of the above
Answer
C. both ‘A’ and ‘B’
120. Formal systems are adopted to bring & amalgamation ofdecentralized units into product groups.
A. Manpower
B. Co-ordination
C. Production
D. All of the above
Answer
B. Co-ordination
