161. 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
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
162. The strategic impetus for forward vertical integration is to
A. Gain better access to end users and better market visibility
B. Achieve the same scale economies as wholesale distributors and/or retail dealers
C. Control price at the retail level
D. None of these
Answer
A. Gain better access to end users and better market visibility
163. A good example of vertical integration is
A. A global public accounting firm acquiring a small local or regional public accounting firm
B. A large supermarket chain getting into convenience food stores
C. A crude oil refiner purchasing a firm engaged in drilling and exploring for oil
D. All of these.
Answer
C. A crude oil refiner purchasing a firm engaged in drilling and exploring for oil
164. A strategic alliance:
A. Is a collaborative arrangement where companies join forces to defeat mutual competitive rivals
B. Involves two or more companies joining forces to pursue vertical integration
C. Is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control and mutual dependence
D. All the above.
Answer
C. Is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control and mutual dependence
165. Which of these is/are a basic activity of strategy evaluation?
A. Reviewing the underlying internal and external factors that represent the bases of current strategies
B. Measuring organizational performance
C. Taking corrective actions
D. All of the above
Answer
D. All of the above
166. Which of these is the cornerstone of effective strategy evaluation?
A. Adequate and timely feedback
B. Quality and quantity of managers
C. Smaller ratio of top- to lower-level management
D. Evaluation preceding implementation stage
Answer
A. Adequate and timely feedback
167. 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
B. alert management to problems or potential problems.
168. Strategy evaluation is becoming with the passage of time.
A. increasingly difficult
B. much simpler
C. very convenient
D. an unnecessary activity
Answer
A. increasingly difficult
169. The overall strategy which is comprehensive in nature and provides the basis forstrategic direction is known as ___
A. Corporate strategy
B. Grand strategy
C. General strategy
D. All of these
Answer
B. Grand strategy
170. Which of the following is/are stability strategies?
A. No Change strategy
B. Caution Strategy
C. Profit Strategy
D. All of these
Answer
D. All of these
171. Which of the following is not Growth/Expansion strategies?
A. Caution strategy
B. Vertical integration
C. Diversification
D. Cooperation
Answer
A. Caution strategy
172. Which of the following is retrenchment strategy?
A. Turn around
B. Divestiture
C. Liquidation
D. All of these
Answer
D. All of these
173. ‘Diversification strategy’ is used to gain market share in
A. current product in current market
B. new products for new markets
C. new products in new market
D. new products in current markets
Answer
B. new products for new markets
174. Défense strategies in which the leader stretches over new market territories using marketdiversification is classified as
A. mobile defence
B. static defence
C. stable defence
D. unstable defence
Answer
A. mobile defence
175. Strategies such as diversification, penetration and market development are the part of
A. extensive growth
B. intensive growth
C. integrative growth
D. disintegrative growth
Answer
B. intensive growth
176. Strategies such as diversification, penetration and market development are part of
A. extensive growth
B. intensive growth
C. integrative growth
D. disintegrative growth
Answer
B. intensive growth
177. 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
A. Market-penetration strategy
178. Select right order of intensive growth strategies:
A. market-development strategy, market-penetration strategy, product development strategy
B. Market-penetration strategy, market development strategy, product development strategy
C. market-penetration strategy, product development strategy, market- development strategy
D. None of the above
Answer
B. Market-penetration strategy, market development strategy, product development strategy
179. Market development strategy focuses on
A. Current products and new markets
B. Current products and current markets
C. New products and current markets
D. New products and new markets
Answer
A. Current products and new markets
180. Product development strategy for achieving intensive growth focuses on:
A. Current products and new markets
B. Current products and current markets
C. New products and current markets
D. New products and new markets
Answer
C. New products and current markets
181. Acquiring one or more suppliers for integrative growth is
A. Horizontal integration
B. Forward integration
C. Backward integration
D. None of the above
Answer
C. Backward integration
182. Acquisition of competitors for integrative growth is
A. Horizontal integration
B. Forward integration
C. Backward integration
D. None of the above
Answer
A. Horizontal integration
183. In , the company would seek new products that have marketing ortechnological synergies with existing product lines appealing to a new group of customers.
A. Concentric diversification
B. Horizontal diversification
C. Conglomerate diversification
D. None of the above
Answer
A. Concentric diversification
184. In , the company can develop new products that are technologically unrelatedto its current product line and still can appeal to its current customers.
A. Concentric diversification
B. Horizontal diversification
C. Conglomerate diversification
D. None of the above
Answer
B. Horizontal diversification
185. In , the company may seek new opportunities that have no relation with itscurrent technology, products, or markets.
A. Concentric diversification
B. Horizontal diversification
C. Conglomerate diversification
D. None of the above
Answer
C. Conglomerate diversification
186. 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
B. Imaginative ideas on strategy exist in many places within a company
187. Redefining how company gets paid or create innovative new revenue streams isof Business innovation.
A. Value capture dimension
B. Brand dimension
C. Networking dimension
D. Offerings dimension
Answer
A. Value capture dimension
188. Michael Porter has proposed generic strategies that provide a good startingpoint for strategic thinking.
A. 3
B. 5
C. 4
D. 6
Answer
A. 3
189. A target market definition tends to focus on selling a product or service to a
A. Current market
B. Potential market
C. Both a & b
D. None of the above
Answer
A. Current market
190. A strategic market definition tends to focus on selling a product or service to a
A. Current market
B. Potential market
C. Both a & b
D. None of the above
Answer
B. Potential market
191. General Electric has classified its businesses into strategic business units.
A. 42
B. 45
C. 49
D. None of the above
Answer
C. 49
192. SBU (strategic business unit) is a unit that is usually responsible for its ownbudgeting, new product decisions, hiring decisions, and price setting.
A. Semi-autonomous
B. Autonomous
C. Non-autonomous
D. None of the above
Answer
A. Semi-autonomous
193. The purpose of identifying company’s strategic business unit is:
A. Developing separate strategies
B. Assign appropriate funding
C. Both a & b
D. All of above are false
Answer
C. Both a & b
194. The BCG’s Growth Share matrix uses and of market growth ascriteria to make investment decisions.
A. Relative market share and quarterly rate
B. Relative market share and annual rate
C. Absolute market share and annual rate
D. Absolute market share and quarterly rate
Answer
B. Relative market share and annual rate
195. Opportunities to achieve further growth within current businesses are:
A. Intensive Opportunities
B. Integrative Opportunities
C. Diversification Opportunities
D. None of the above
Answer
A. Intensive Opportunities
196. Opportunities to build or acquire businesses that are related to current businesses:
A. Intensive Opportunities
B. Integrative Opportunities
C. Diversification Opportunities
D. None of the above
Answer
B. Integrative Opportunities
197. The useful framework for detecting new is called a “product-market expansion grid”
A. Intensive opportunities
B. Integrative opportunities
C. Diversification opportunities
D. None of the above
Answer
A. Intensive opportunities
198. 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
D. Crescive approach
199. The most complex structure of Strategic organisation is:
A. Functional
B. Transnational
C. Matrix
D. Divisional
Answer
C. Matrix
200. Hofer’s Product matrix is also known as:
A. GE Matrix
B. BCG Matrix
C. TOWS matrix
D. Market Evaluation Matrix
Answer
D. Market Evaluation Matrix
