Q1: The learning theory, as developed by Senge, starts from the position that the organisation should adopt strategic change from the outset
Answer
Answer: Wrong – False
Q2: Which of the following is not emphasised in the learning approach
Answer
Answer: Individual learning
Q3: Which of the following is not a part of the six-point plan for strategic change
Answer
Answer: Revitalise the marketing department
Q4: Which of the following will not affect the choice of strategic change programme
Answer
Answer: Government policy
Q5: The authors who developed the seven S framework drew a distinction between its ‘hard’ and ‘soft’ elements. Which are the ‘soft’ or intangible elements
Answer
Answer: Staff, skills, style and superordinate goals
Q6: What key feature of organisations was the seven S framework devised to highlight
Answer
Answer: The interrelatedness of organisational elements
Q7: Although the seven S framework highlights the interrelationships between the elements of the model, the text notes three issues that are critical to strategy that are not included. Which of the following is not one of them
Answer
Answer: Information
Q8: Who published a now famous book entitled In Search of Excellence, outlining what they saw as the eight attributes of excellent companies
Answer
Answer: Tom Peters and Robert Waterman
Q9: What did Peters and Waterman mean when they said organisations should operate on loose–tight properties
Answer
Answer: The best companies were both centrally controlled and yet encouraged entrepreneurship
Q10: What did Richard Pascale mean when he referred to ‘managing on the edge’
Answer
Answer: Significant change only occurs by creating a major disturbance to the established routines of the organisation
Q11: Which of the following is not one of the four factors affecting stagnation and renewal in organisations, according to Pascale
Answer
Answer: Defend
Q12: Controls are employed to ensure that financial, human resource and other guidelines are not breached during the implementation process
Answer
Answer: True – Correct
Q13: Which of the following statements best defines ‘milestones’
Answer
Answer: Milestones are used to measure precisely what progress of the strategy towards a final implementation goal has been made at some intermediate point
Q14: Which of the items listed below is not one of the ways in which to achieve successful implementation of strategy
Answer
Answer: Reward people for past performance
Q15: Who said: “It is not very difficult to predict the future. It is only pointless … far more important are fundamental changes that happened though no one predicted them or could possibly have predicted them”
Answer
Answer: Peter Drucker
Q16: Which of the aspects of corporate strategy listed below does not merit an ongoing and fundamental re-examination, according to the text
Answer
Answer: The environment of the organisation
Q17: Which company is famed for its use of scenario-building in preference to using historical data in predicting future environmental developments
Answer
Answer: Royal/Dutch Shell
Q18: Which of the following is not one of the three elements involved in strategic decisions
Answer
Answer: Objectives
Q19: Which of the following approaches would you use to analyse the competitive industry environment
Answer
Answer: Porter’s five forces model
Q20: Which of the following is not one of the four main strategic types identified by Miles and Snow
Answer
Answer: Not-for-profit organisations
Q21: Which of the following is not a method of expansion
Answer
Answer: Increased turnover
Q22: Which of the following statements best defines a ‘prescriptive’ corporate strategy
Answer
Answer: A strategy whose objectives have been defined in advance and whose main elements have been developed before the strategy commences
Q23: Which of the following statements best defines an ’emergent’ corporate strategy
Answer
Answer: A strategy whose final objective is unclear and whose elements are developed during the course of its life, as the strategy proceeds
Q24: Which of the items listed below should be added to strategy, structure, staff, systems, style and superordinate goals to complete the seven S framework
Answer
Answer: Skills
Q25: Competitor Rivalry is more if market growth is
(a) High
(b) Low
(c) Nil
(d) Negative
Answer
Answer: (a) High
Q26: Substitute product gives better
(a) Price – Performance
(b) Features
(c) Discount
(d) Utility
Answer
Answer: (b) Features
Q27: Switching cost is a
(a) Entry Barrier
(b) USP
(c) Promotion stunt
(d) Feature
Answer
Answer: (c) Promotion stunt
Q28: How many Generic Strategies are there
(a) 2
(b) 5
(c) 1
(d) 3
Answer
Answer: (d) 3
Q29: Who gave Generic Strategy concept
(a) Porter
(b) Glueck
(c) Abell
(d) Ansoff
Answer
Answer: (a) Porter
Q30: Experience Curve is dependant on
(a) Capacity
(b) Production rate
(c) Time
(d) Cumulative Production
Answer
Answer: (a) Capacity
Q31: Average cost curve is dependant on
(a) Make of the plant
(b) Cost of the plant
(c) Age of the plant
(d) Capacity Utilization
Answer
Answer: (d) Capacity Utilization
Q32: Monopolies and Restrictive Trade Practices come under which environment
(a) Regulatory
(b) Economical
(c) Physical
(d) Natural
Answer
Answer: (a) Regulatory
Q33: Harvard Business School started in
(a) 1981
(b) 1971
(c) 1911
(d) 1921
Answer
Answer: None of the Above. It is neither of the four stated above, because Harvard Business School was Founded in 1908, Harvard Business School
(HBS) started with 59 students. Once it innovated the case method of research and teaching in 1920, HBS ramped up the class size which reached 500 students during the decade. In 1926, the School moved from the Cambridge side of the Charles River to its present location in Allston
(part of Boston)-hence the custom of faculty and students referring to the rest of Harvard University as “across the river.”
Q34: Higher Rate of Technology Transfer in an economy mostly increases
(a) Prices
(b) Needs
(c) Competition
(d) Demands
Answer
Answer: (a) Prices
Q35: The day dream is taken up by
(a) Vision
(b) Mission
(c) Goal
(d) Policy
Answer
Answer: (a) Vision
Q36: Exports is a good way to exploit
(a) PLC stage
(b) Foreign demand
(c) Poor Quality
(d) Product defect
Answer
Answer: (b) Foreign demand
Q37: Reliance getting loans at lower rates of interest will come under their Financial:
(a) Capabilities
(b) Management
(c) Leverage
(d) Strength
Answer
Answer: (c) Leverage
Q38: Mission statement tells about
(a) Business
(b) Leadership
(c) Competition
(d) Environment
Answer
Answer: (a) Business
Q39: How many primary activities are present in a value chain
(a) 5
(b) 6
(c) 7
(d) 8
Answer
Answer: (a) 5
Q40: Which is the fourth supporting activity in a generic value chain other than Human Resource Technology and infrastructure
(a) Processing
(b) Services
(c) Production
(d) Procurement
Answer
Answer: (d) Procurement
Q41: Human Resource exploits the benefits of technology through
(a) Training
(b) Retrenchment
(c) Induction
(d) Market Research
Answer
Answer: (a) Training
Q42: The strategy to follow a recent expansion is
(a) Expansion
(b) Stability
(c) Retrenchment
(d) Combination
Answer
Answer: (b) Stability
Q43: How many Grand strategies are there
(a) 2
(b) 3
(c) 4
(d) 5
Answer
Answer: (b) 3
Q44: Penetration comes under
(a) Intensive growth
(b) Integrative Growth
(c) Diversification Growth
(d) Cumulative Growth
Answer
Answer: (a) Intensive growth
Q45: Mergers and Acquisitions come under
(a) Intensive Growth
(b) Integrative Growth
(c) Diversification Growth
(d) Cumulative Growth
Answer
Answer: (b) Integrative Growth
Q46: Horizontal Integration leads to Economics of:
(a) Scale
(b) Partner
(c) Demand
(d) Scope
Answer
Answer: (b) Partner
Q47: Vertical Integration leads to Economics of:
(a) Scale
(b) Partner
(c) Demand
(d) Scope
Answer
Answer: (d) Scope
Q48: New Product in old market is
(a) Market Development
(b) Penetration
(c) Product Development
(d) Diversification
Answer
Answer: (c) Product Development
Q49: Which matrix illustrates the relationship between current and new markets and products
(a) Abell’s
(b) Ansoff’s
(c) Porter’s
(d) Hamel’s
Answer
Answer: (b) Ansoff’s
Q50: Maruti planning to sell their cars though their own distribution network is:
(a) Backward integration
(b) Expansion
(c) Extension
(d) Forward Integration
Answer
Answer: (d) Forward Integration
Q51: Reliance planning to setup their own mobile sets manufacturing base is
(a) Backward integration
(b) Expansion
(c) Extension
(d) Forward Integration
Answer
Answer: (b) Expansion
Q52: Moser Baer planning to enter into making vcd and audio cds will come under
(a) Backward integration
(b) Concentric diversification
(c) Extension
(d) Forward integration
Answer
Answer: (a) Backward integration
Q53: A corporate has a portfolio in various:
(a) Industries
(b) Locations
(c) Offices
(d) Leaders
Answer
Answer: (c) Offices
Q54: What Does ISO in ISO 9001 means
(a) International Standard Organisation
(b) Indian Standard Oraganisation
(c) International Standard Operations
(d) Similar
Answer
Answer: (a) International Standard Organisation
Q55: What does B in BCG matrix stand for
(a) Bombay
(b) Bright
(c) Boston
(d) Birmingham
Answer
Answer: (c) Boston
Q56: Objectives are always
(a) Time bound
(b) Timeless
(c) Negative
(d) Difficult
Answer
Answer: (a) Time bound
Q57: Goals are always
(a) Time bound
(b) Timeless
(c) Negative
(d) Difficult
Answer
Answer: (a) Time bound
Q58: ASCI is into;
(a) Education
(b) Medicines
(c) Computers
(d) Automobiles
Answer
Answer: (b) Medicines
Q59: Strengths in SWOT are to be seen within:
(a) Organization
(b) Competition
(c) Environment
(d) Economy
Answer
Answer: (a) Organization
Q60: Organization nowadays put must of their resources in
(a) Strengths
(b) Weaknesses
(c) Markets
(d) Competition
Answer
Answer: (c) Markets
Q61: Current GDP growth in India is
(a) Below 5%
(b) 5-7%
(c) 7-9%
(d) Above 10%
Answer
Answer: (c) 7-9%
Q62: The word strategy is derived from
(a) Generalship
(b) Stewardship
(c) Ownership
(d) Trendsetter
Answer
Answer: (a) Generalship
Q63: Estimates of future is
(a) Forecast
(b) Plan
(c) Strategy
(d) Predicament
Answer
Answer: (a) Forecast
Q64: Operation Control has no logical steps? Yes /No
Answer
Answer: No
Q65: Which approach to the study of leadership emphasizes the role of situational factors and how these moderate the relationship between leader traits or leadership behaviors and leadership effectiveness?
a) Leader-oriented approach.
b) Contingency approach.
c) Transactional approach.
d) Transformational approach
Answer
Answer: b) Contingency approach.
Q66: Porter has designed a framework to help understand why certain countries achieve global competitive advantage in certain industries. It also helps internationalizing firms to make location decisions. The framework is called:
a) Porter’s value chain
b) Porter’s Five Forces
c) Porter’s Generic Strategies
d) Porter’s Diamond
Answer
Answer: b) Porter’s Five Forces
Q67: It is generally agreed that the role of strategy is to:
a) Make best use of resources
b) Make profits for the organization
c) Make the best products and services
d) Achieve competitive advantage
Answer
Answer: a) Make best use of resources
Q68: Kay (1993) sees the strategy of an organization as matching internal capabilities with:
a) Its external relationships
b) Its customer needs
c) The industry life cycle
d) The external environment
Answer
Answer: a) Its external relationships
Q69: An organization’s external environment consists of the general or macro environment and:
a) The internal environment
b) The competitive environment
c) The specific environment
d) The micro-environment
Answer
Answer: b) The competitive environment
Q70: The term ‘corporate strategy’ concerns strategy and strategic decisions
a) In the private sector only.
b) Developed by the senior management in an organization.
c) In certain types of organizations.
d) At all levels in an organization.
Answer
Answer: d) At all levels in an organization.
Q71: A key characteristic of strategic decisions is:
a) They are normally definite decisions about the future of the organization.
b) They identify specific areas of strategic interest for the management of an organization.
c) They result in better organizational performance.
d) They are likely to be concerned with, or affect, the long-term direction of an organization.
Answer
Answer: b) They identify specific areas of strategic interest for the management of an organization.
Q72: It is possible to identify different levels of strategy in an organization, these are:
a) Corporate and functional.
b) Corporate and Business
c) Strategic and tactical.
d) Corporate; strategic business unit; operational.
Answer
Answer: d) Corporate; strategic business unit; operational.
Q73: An organisation’s mission can be defined as:
a) The overriding purpose in line with the values or expectations of stakeholders.
b) The overriding purpose regardless of the values or expectations of stakeholders.
c) The organisation’s business plan.
d) The desired future state of the organisation.
Answer
Answer: a) The overriding purpose in line with the values or expectations of stakeholders.
Q74: Strategic choices require an understanding of:
a) the business environment, the competition and the strategic capability of the organisation.
b) The key drivers of change.
c) The organisational strengths and weaknesses.
d) The underlying bases for future strategy at business unit and corporate levels; the options for developing strategy in terms of directions and methods of development.
Answer
Answer: a) the business environment, the competition and the strategic capability of the organisation.
Q75: In Porter’s Five Forces, the ‘threat of new entrants’ relates to:
a) Substitutes
b) Switching costs
c) Buyer power
d) Barriers to entry
Answer
Answer: d) Barriers to entry
Q76: Brandenburg and Nalebuff added a sixth force to Porter’s Five Forces. It is known as:
a) Seller power
b) Complementors
c) Substitutes
d) Government regulation
Answer
Answer: b) Complementors
Q77: Barriers to entry into an industry are likely to be high if:
a) Switching costs are low
b) Differentiation is low
c) Access to distribution channels is high
d) Requirement for economies of scale is high
Answer
Answer: d) Requirement for economies of scale is high
Q78: Buyer power is high if:
a) They have little information
b) The buyer requires a high quality product for their own production
c) Differentiation is low
d) Switching costs are low
Answer
Answer: d) Switching costs are low
Q79: Competitive rivalry will be high if:
a) There are a few strong players in the industry
b) There is a high degree of differentiation
c) The industry is in its infancy
d) The industry is fragmented
Answer
Answer: b) There is a high degree of differentiation
Q80: A strategic group can be defined as:
a) A group of key resources and competences that are necessary to achieve competitive advantage
b) A group of customers that have similar characteristics
c) An industry recipe
d) A group of firms in an industry following the same or a similar strategy
Answer
Answer: d) A group of firms in an industry following the same or a similar strategy
Q81: The key activities in the strategic management process are:
a) Analysis, formulation, review
b) Analysis, implementation, review
c) Formulation, analysis, implementation
d) Analysis, formulation, implementation
Answer
Answer: d) Analysis, formulation, implementation
Q82: Strategy analysis is also referred to as:
a) Strategy diagnosis
b) Rational analysis
c) Situation analysis
d) SWOT analysis
Answer
Answer: d) SWOT analysis
Q83: Strategy formulation takes place at two levels. These are:
a) Conscious and sub-conscious
b) Implicit and explicit
c) Values and operational
d) Corporate and business
Answer
Answer: b) Implicit and explicit
Q84: The Policies of an organization derive from its:
a) Purpose
b) Vision
c) Objectives
d) Strategy
Answer
Answer: c) Objectives
Q85: The statement of an organization’s aspirations can be found in the organization’s:
a) Policies
b) Mission
c) Strategy
d) Vision
Answer
Answer: d) Vision
Q86: A substitute product or service is:
a) A new entrant into the industry
b) A competitor’s product or service
c) A less attractive way of meeting the same need
d) An alternative way of meeting the same need
Answer
Answer: d) An alternative way of meeting the same need
Q87: Cross-functional teams are:
a) The representative voice of senior management.
b) A small group of specialists who collaborate on a task force.
c) A small group of people who come together to resolve business unit issues.
d) A small group of people from different departments who are mutually accountable to a common set of performance goals.
Answer
Answer: d) A small group of people from different departments who are mutually accountable to a common set of performance goals.
Q88: The business unit strategy has three major components:
a) business mission, department mission, and daily plans
b) competencies, abilities, and problem statements
c) marketing, advertising and pricing objectives
d) mission, business unit goals, and competencies
Answer
Answer: c) marketing, advertising and pricing objectives
Q89: Disney is in the business of:
a) Building theme parks.
b) Designing new imaginative characters.
c) Making money.
d) Creating entertainment, fun and fantasy.
Answer
Answer: d) Creating entertainment, fun and fantasy.
Q90: A useful framework used to assess a company’s investments/divisions is called:
a) corporate insight analysis
b) company productivity analysis
c) SBU knowledge analysis
d) business portfolio analysis
Answer
Answer: d) business portfolio analysis
Q91: Cash cows are SBU’s that typically generate:
a) large awareness levels but few sales
b) paper losses in the long run
c) problems for product managers
d) large amounts of cash
Answer
Answer: d) large amounts of cash
Q92: Business unit competencies should be distinctive enough to provide
a) clear understanding of who you want to lead the company
b) opportunity to compete on a productivity basis
c) additional strategic mission
d) competitive advantage
Answer
Answer: d) competitive advantage
Q93: TQM is a strategy that is designed to change the quality of a product to satisfy customer needs by using the concept of
a) reverse brainstorming
b) brainstorming
c) product life cycle analysis
d) benchmarking
Answer
Answer: c) product life cycle analysis
Q94: Firms may view growth opportunities in these terms:
a) New markets, and current and new products
b) New markets and new products
c) Current markets and current products
d) Current and new markets, and current and new products
Answer
Answer: d) Current and new markets, and current and new products
Q95: The strategic marketing process is how an organization allocates its marketing mix resources to reach its:
a) target markets
b) area of expertise
c) competition
d) stated business ideas
Answer
Answer: a) target markets
Q96: An effective short-hand summary of the situation analysis is a:
a) SWOT analysis
b) SBU analysis
c) BCG analysis
d) Competition analysis
Answer
Answer: a) SWOT analysis
Q97: In the strategic marketing process, once you get results you go into the:
a) control phase
b) marketing plan
c) planning phase
d) marketing program
Answer
Answer: c) planning phase
Q98: Ansoff had four market-product strategies to expand sales. They included (1) market penetration, (2) product development, (3) market development and:
a) Diversification
b) current customer retention
c) distribution enhancement
d) product simplification
Answer
Answer: a) Diversification
Q99: Aggregating prospective buyers into groups is called:
a) market segmentation
b) BCG matrix analysis
c) grouping
d) market categorization
Answer
Answer: d) market categorization
Q100: One key to effective implementation is setting:
a) schedule of events
b) milestones
c) good managers in motion
d) goals
Answer
Answer: d) goals
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