121. 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
B. strategy, structure
122. Systems are formal and informal rules and regulations that complement the company ___
A. strategy
B. structure
C. system
D. environment
Answer
B. structure
123. The reasons for acquisition are
A. Increased market power
B. Increased diversification
C. Increased speed to market
D. All of the above
Answer
D. All of the above
124. Market research is conducted by
A. By employees
B. By research agencies
C. By consultants
D. All of the above
Answer
D. All of the above
125. Vertical integration is concerned with
A. supply chain
B. production
C. Quality
D. planning
Answer
A. supply chain
126. ETOP stands for.
A. environmental threat & opportunity project
B. environmental threat & opportunity profile
C. environmental treaty & opportunity profile
D. environmental threat & optimum profile
Answer
B. environmental threat & opportunity profile
127. The control process requires the following types of information
A. Planned performance
B. Variances
C. Reasons
D. All of the above
Answer
D. All of the above
128. 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
A. Strategic surveillance
129. Harvest strategy is used for
A. Dogs
B. Question marks
C. Cash cow
D. both ‘A’ and ‘B’
Answer
D. both ‘A’ and ‘B’
130. Attack strategies are
A. Frontal attack
B. Flank attack
C. Encirclement attack
D. all of the above
Answer
D. all of the above
131. Three C’s affecting today’s companies are
A. Customer, Competition, Change
B. Cost, Competition, Change
C. Customer, Competition, Cost
D. Customer, Cost, Change
Answer
A. Customer, Competition, Change
132. For strategic learning, the balanced scorecard supplies
A. Two elements
B. Three elements
C. Four elements
D. Five elements
Answer
C. Four elements
133. In strategic learning, an element defines the articulation of the company’s
A. Review process
B. Operational goals
C. Shared vision
D. Business model
Answer
C. Shared vision
134. 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
B. Cause and effect
135. Scorecard facilitates the strategy review essential for
A. Strategic learning
B. Strategic plan
C. Strategic domain
D. Strategic model
Answer
A. Strategic learning
136. A business strategy should be viewed as a set of
A. Domain
B. Models
C. Hypothesis
D. Procedures
Answer
C. Hypothesis
137. A sustained or sustainable competitive advantage requires that:
A. the value creating strategy be in a formulation stage.
B. competitors implement the strategy.
C. other companies not be able to duplicate the strategy.
D. average returns be earned by the company.
Answer
C. other companies not be able to duplicate the strategy.
138. The strategic management process is:
A. a set of activities that is guaranteed to prevent organizational failure.
B. a process concerned with a firm’s resources, capabilities, and competencies, but not the conditions in its external environment.
C. a set of activities that to date have not been used successfully in the notfor-profit sector.
D. a dynamic process involving the full set of commitments, decisions, and actions related to the firm.
Answer
D. a dynamic process involving the full set of commitments, decisions, and actions related to the firm.
139. Which of the following is NOT an assumption of the Industrial Organization, or I/O,model?
A. Organizational decision makers are rational and committed to acting in the firm’s best interests.
B. Resources to implement strategies are not highly mobile across firms.
C. The external environment is assumed to impose pressures and constraints that determine the strategies that result in superior performance.
D. Firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources.
Answer
D. Firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources.
140. 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
B. All firms possess the same strategically relevant resources.
141. In contrast to the industrial organization model, in a resource-based model, which of thefollowing factors would be considered a key to organizational success?
A. unique market niche.
B. weak competition.
C. economies of scale.
D. loyal employees.
Answer
D. loyal employees.
142. 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
D. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm’s core competencies.
143. Strategic mission:
A. is a statement of a firm’s unique purpose and scope of operations.
B. is an internally-focused affirmation of the organization’s societal and ethical goals.
C. does not limit the firm by specifying the industry in which the firm intends to compete.
D. is developed by a firm before the firm develops its strategic intent.
Answer
A. is a statement of a firm’s unique purpose and scope of operations.
144. The environment is composed of elements in the broader society that can influence an industry and the firms within it.
A. general
B. competitor
C. sociocultural
D. industry
Answer
A. general
145. 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
C. substitute products or services.
146. The economic environment refers to:
A. the nature and direction of the economy in which a firm competes or may compete.
B. the economic outlook of the world provided by the World Bank.
C. an analysis of how the environmental movement and world economy interact.
D. an analysis of how new environmental regulations will affect our economy.
Answer
A. the nature and direction of the economy in which a firm competes or may compete.
147. An industry is defined as:
A. a group of firms producing the same item.
B. firms producing items that sell through the same distribution channels.
C. firms that have the same seven-digit standard industrial code.
D. a group of firms producing products that are close substitutes.
Answer
D. a group of firms producing products that are close substitutes.
148. An integrated and coordinated set of commitments and actions designed to exploitcore competencies and gain a competitive advantage in a specific product market is a definition of:
A. business strategy.
B. core competencies.
C. sustained competitive advantage.
D. strategic mission.
Answer
A. business strategy.
149. Business-level strategies are concerned specifically with:
A. creating differences between the firm’s position and its rivals.
B. the industries in which the firm will compete.
C. how functional areas will be organized within the firm.
D. how a business with multiple physical locations will operate one of those locations.
Answer
A. creating differences between the firm’s position and its rivals.
150. A cost leadership strategy provides goods or services with features that are:
A. acceptable to customers.
B. unique to the customer.
C. highly valued by the customer.
D. able to meet unique needs of the customer
Answer
A. acceptable to customers.
151. A firm successfully implementing a differentiation strategy would expect:
A. customers to be sensitive to price increases.
B. to charge premium prices.
C. customers to perceive the product as standa
Answer
B. to charge premium prices.
152. A differentiation strategy provides products that customers perceive as having:
A. acceptable features.
B. features of little value relative to the value provided by the low-cost leader’s product.
C. features for which the customer will pay a low price.
D. features that are non-standardized for which they are willing to pay a premium.
Answer
D. features that are non-standardized for which they are willing to pay a premium.
153. 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
D. to serve the specialized needs of a market segment.
154. ___ is a participative, systematic approach to planning and implementing a constantorganizational improvement process.
A. WPM
B. TQM
C. SCM
D. QC
Answer
C. SCM
155. SCM Stands for ___
A. Suppler-Customer and Money
B. Supply Chain Management
C. Supplier and Customer Management
D. Sales Cost Management.
Answer
B. Supply Chain Management
156. VMOST Analysis tool is developed by:
A. C K Prahlad
B. Rakesh Sondhi
C. Michael Porter
D. R S Cooper
Answer
B. Rakesh Sondhi
157. VMOST stands for ___
A. Value, Money, Organisation, Sales, Target
B. Vision, Mission, Objective, Strategy, Tactics
C. Value, Mission, Objective, Strategy, Tactics
D. Vision, Money, Objective, Strategy, Technology
Answer
B. Vision, Mission, Objective, Strategy, Tactics
158. 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
C. Learning organisation
159. 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
A. Extend a company’s competitive scope within the same industry by expanding its operations across more parts of the industry value chain
160. The two best reasons for investing company resources in vertical integration (either forward or backward) are to
A. Expand into foreign markets and/or control more of the industry value chain
B. Broaden the firm’s product line and/or avoid the need for outsourcing
C. Enable use of offensive strategies and/or gain a first mover advantage over rivals in revamping the industry value chain
D. Strengthen the company’s competitive position and/or boost its profitability
Answer
D. Strengthen the company’s competitive position and/or boost its profitability
