Q1: The learning theory, as developed by Senge, starts from the position that the organisation should adopt strategic change from the outset
Answer: Wrong – FalseAnswer
Q2: Which of the following is not emphasised in the learning approach
Answer: Individual learningAnswer
Q3: Which of the following is not a part of the six-point plan for strategic change
Answer: Revitalise the marketing departmentAnswer
Q4: Which of the following will not affect the choice of strategic change programme
Answer: Government policyAnswer
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: Staff, skills, style and superordinate goalsAnswer
Q6: What key feature of organisations was the seven S framework devised to highlight
Answer: The interrelatedness of organisational elementsAnswer
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: InformationAnswer
Q8: Who published a now famous book entitled In Search of Excellence, outlining what they saw as the eight attributes of excellent companies
Answer: Tom Peters and Robert WatermanAnswer
Q9: What did Peters and Waterman mean when they said organisations should operate on loose–tight properties
Answer: The best companies were both centrally controlled and yet encouraged entrepreneurshipAnswer
Q10: What did Richard Pascale mean when he referred to ‘managing on the edge’
Answer: Significant change only occurs by creating a major disturbance to the established routines of the organisationAnswer
Q11: Which of the following is not one of the four factors affecting stagnation and renewal in organisations, according to Pascale
Answer: DefendAnswer
Q12: Controls are employed to ensure that financial, human resource and other guidelines are not breached during the implementation process
Answer: True – CorrectAnswer
Q13: Which of the following statements best defines ‘milestones’
Answer: Milestones are used to measure precisely what progress of the strategy towards a final implementation goal has been made at some intermediate pointAnswer
Q14: Which of the items listed below is not one of the ways in which to achieve successful implementation of strategy
Answer: Reward people for past performanceAnswer
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: Peter DruckerAnswer
Q16: Which of the aspects of corporate strategy listed below does not merit an ongoing and fundamental re-examination, according to the text
Answer: The environment of the organisationAnswer
Q17: Which company is famed for its use of scenario-building in preference to using historical data in predicting future environmental developments
Answer: Royal/Dutch ShellAnswer
Q18: Which of the following is not one of the three elements involved in strategic decisions
Answer: ObjectivesAnswer
Q19: Which of the following approaches would you use to analyse the competitive industry environment
Answer: Porter’s five forces modelAnswer
Q20: Which of the following is not one of the four main strategic types identified by Miles and Snow
Answer: Not-for-profit organisationsAnswer
Q21: Which of the following is not a method of expansion
Answer: Increased turnoverAnswer
Q22: Which of the following statements best defines a ‘prescriptive’ corporate strategy
Answer: A strategy whose objectives have been defined in advance and whose main elements have been developed before the strategy commencesAnswer
Q23: Which of the following statements best defines an ’emergent’ corporate strategy
Answer: A strategy whose final objective is unclear and whose elements are developed during the course of its life, as the strategy proceedsAnswer
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: SkillsAnswer
Q25: Competitor Rivalry is more if market growth is
(a) High
(b) Low
(c) Nil
(d) Negative
Answer: (a) HighAnswer
Q26: Substitute product gives better
(a) Price – Performance
(b) Features
(c) Discount
(d) Utility
Answer: (b) FeaturesAnswer
Q27: Switching cost is a
(a) Entry Barrier
(b) USP
(c) Promotion stunt
(d) Feature
Answer: (c) Promotion stuntAnswer
Q28: How many Generic Strategies are there
(a) 2
(b) 5
(c) 1
(d) 3
Answer: (d) 3Answer
Q29: Who gave Generic Strategy concept
(a) Porter
(b) Glueck
(c) Abell
(d) Ansoff
Answer: (a) Porter Answer
Q30: Experience Curve is dependant on
(a) Capacity
(b) Production rate
(c) Time
(d) Cumulative Production
Answer: (a) Capacity Answer
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: (d) Capacity UtilizationAnswer
Q32: Monopolies and Restrictive Trade Practices come under which environment
(a) Regulatory
(b) Economical
(c) Physical
(d) Natural
Answer: (a) Regulatory Answer
Q33: Harvard Business School started in
(a) 1981
(b) 1971
(c) 1911
(d) 1921
Answer: None of the Above. It is neither of the four stated above, because Harvard Business School was Founded in 1908, Harvard Business SchoolAnswer
(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: (a) PricesAnswer
Q35: The day dream is taken up by
(a) Vision
(b) Mission
(c) Goal
(d) Policy
Answer: (a) Vision Answer
Q36: Exports is a good way to exploit
(a) PLC stage
(b) Foreign demand
(c) Poor Quality
(d) Product defect
Answer: (b) Foreign demandAnswer
Q37: Reliance getting loans at lower rates of interest will come under their Financial:
(a) Capabilities
(b) Management
(c) Leverage
(d) Strength
Answer: (c) LeverageAnswer
Q38: Mission statement tells about
(a) Business
(b) Leadership
(c) Competition
(d) Environment
Answer: (a) BusinessAnswer
Q39: How many primary activities are present in a value chain
(a) 5
(b) 6
(c) 7
(d) 8
Answer: (a) 5Answer
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: (d) ProcurementAnswer
Q41: Human Resource exploits the benefits of technology through
(a) Training
(b) Retrenchment
(c) Induction
(d) Market Research
Answer: (a) Training Answer
Q42: The strategy to follow a recent expansion is
(a) Expansion
(b) Stability
(c) Retrenchment
(d) Combination
Answer: (b) StabilityAnswer
Q43: How many Grand strategies are there
(a) 2
(b) 3
(c) 4
(d) 5
Answer: (b) 3Answer
Q44: Penetration comes under
(a) Intensive growth
(b) Integrative Growth
(c) Diversification Growth
(d) Cumulative Growth
Answer: (a) Intensive growth Answer
Q45: Mergers and Acquisitions come under
(a) Intensive Growth
(b) Integrative Growth
(c) Diversification Growth
(d) Cumulative Growth
Answer: (b) Integrative GrowthAnswer
Q46: Horizontal Integration leads to Economics of:
(a) Scale
(b) Partner
(c) Demand
(d) Scope
Answer: (b) PartnerAnswer
Q47: Vertical Integration leads to Economics of:
(a) Scale
(b) Partner
(c) Demand
(d) Scope
Answer: (d) ScopeAnswer
Q48: New Product in old market is
(a) Market Development
(b) Penetration
(c) Product Development
(d) Diversification
Answer: (c) Product Development Answer
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: (b) Ansoff’sAnswer
Q50: Maruti planning to sell their cars though their own distribution network is:
(a) Backward integration
(b) Expansion
(c) Extension
(d) Forward Integration
Answer: (d) Forward IntegrationAnswer
Q51: Reliance planning to setup their own mobile sets manufacturing base is
(a) Backward integration
(b) Expansion
(c) Extension
(d) Forward Integration
Answer: (b) ExpansionAnswer
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: (a) Backward integrationAnswer
Q53: A corporate has a portfolio in various:
(a) Industries
(b) Locations
(c) Offices
(d) Leaders
Answer: (c) Offices Answer
Q54: What Does ISO in ISO 9001 means
(a) International Standard Organisation
(b) Indian Standard Oraganisation
(c) International Standard Operations
(d) Similar
Answer: (a) International Standard OrganisationAnswer
Q55: What does B in BCG matrix stand for
(a) Bombay
(b) Bright
(c) Boston
(d) Birmingham
Answer: (c) Boston Answer
Q56: Objectives are always
(a) Time bound
(b) Timeless
(c) Negative
(d) Difficult
Answer: (a) Time bound Answer
Q57: Goals are always
(a) Time bound
(b) Timeless
(c) Negative
(d) Difficult
Answer: (a) Time boundAnswer
Q58: ASCI is into;
(a) Education
(b) Medicines
(c) Computers
(d) Automobiles
Answer: (b) Medicines Answer
Q59: Strengths in SWOT are to be seen within:
(a) Organization
(b) Competition
(c) Environment
(d) Economy
Answer: (a) Organization Answer
Q60: Organization nowadays put must of their resources in
(a) Strengths
(b) Weaknesses
(c) Markets
(d) Competition
Answer: (c) Markets Answer
Q61: Current GDP growth in India is
(a) Below 5%
(b) 5-7%
(c) 7-9%
(d) Above 10%
Answer: (c) 7-9% Answer
Q62: The word strategy is derived from
(a) Generalship
(b) Stewardship
(c) Ownership
(d) Trendsetter
Answer: (a) GeneralshipAnswer
Q63: Estimates of future is
(a) Forecast
(b) Plan
(c) Strategy
(d) Predicament
Answer: (a) ForecastAnswer
Q64: Operation Control has no logical steps? Yes /No
Answer: NoAnswer
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: b) Contingency approach.Answer
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: b) Porter’s Five ForcesAnswer
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: a) Make best use of resourcesAnswer
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: a) Its external relationshipsAnswer
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: b) The competitive environmentAnswer
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: d) At all levels in an organization.Answer
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: b) They identify specific areas of strategic interest for the management of an organization.Answer
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: d) Corporate; strategic business unit; operational.Answer
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: a) The overriding purpose in line with the values or expectations of stakeholders.Answer
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: a) the business environment, the competition and the strategic capability of the organisation.Answer
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: d) Barriers to entryAnswer
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: b) ComplementorsAnswer
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: d) Requirement for economies of scale is highAnswer
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: d) Switching costs are lowAnswer
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: b) There is a high degree of differentiationAnswer
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: d) A group of firms in an industry following the same or a similar strategyAnswer
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: d) Analysis, formulation, implementationAnswer
Q82: Strategy analysis is also referred to as:
a) Strategy diagnosis
b) Rational analysis
c) Situation analysis
d) SWOT analysis
Answer: d) SWOT analysisAnswer
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: b) Implicit and explicitAnswer
Q84: The Policies of an organization derive from its:
a) Purpose
b) Vision
c) Objectives
d) Strategy
Answer: c) ObjectivesAnswer
Q85: The statement of an organization’s aspirations can be found in the organization’s:
a) Policies
b) Mission
c) Strategy
d) Vision
Answer: d) VisionAnswer
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: d) An alternative way of meeting the same needAnswer
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: d) A small group of people from different departments who are mutually accountable to a common set of performance goals.Answer
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: c) marketing, advertising and pricing objectivesAnswer
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: d) Creating entertainment, fun and fantasy.Answer
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: d) business portfolio analysisAnswer
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: d) large amounts of cashAnswer
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: d) competitive advantageAnswer
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: c) product life cycle analysisAnswer
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: d) Current and new markets, and current and new productsAnswer
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: a) target marketsAnswer
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: a) SWOT analysisAnswer
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: c) planning phaseAnswer
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: a) DiversificationAnswer
Q99: Aggregating prospective buyers into groups is called:
a) market segmentation
b) BCG matrix analysis
c) grouping
d) market categorization
Answer: d) market categorizationAnswer
Q100: One key to effective implementation is setting:
a) schedule of events
b) milestones
c) good managers in motion
d) goals
Answer: d) goalsAnswer
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