Q1: When actual performance results are better than what the plan called for, managers should:
a) Find creative ways to exploit the situation.
b) Issue more stock options to employees.
c) Increase prices.
d) Ignore it.
Answer: a) Find creative ways to exploit the situation.Answer
Q2: Value for shareholders of a firm is measured by:
a) stock performance and profitability
b) sales revenue
c) satisfactory employee targets
d) profitable year-end balance sheet
Answer: a) stock performance and profitabilityAnswer
Q3: The _____ for PepsiCo is “We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of quality.”
a) Mission
b) organizational code of conduct
c) functional code
d) benefits statement
Answer: a) MissionAnswer
Q4: A firm can acknowledge the critical importance of its _____, by having explicit goals that state its intention to improve work conditions by adding more lighting and providing the workers with more and better safety equipment.
a) employee welfare
b) market share
c) sales revenue
d) satisfaction
Answer: a) employee welfareAnswer
Q5: It is generally agreed that the role of strategy is to:
a) Make best use of resources
b) Achieve competitive advantage
c) Make profits for the organization
Answer: b) Achieve competitive advantageAnswer
d) Make the best products and services
Q6: According to Porter (1996) in his article ‘what is strategy?’ strategy is about being:
a) Different
b) Better
c) Bigger
Answer: a) DifferentAnswer
d) Open minded
Q7: 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
Answer: b) The competitive environmentAnswer
d) The micro-environment
Q8: Alfred Chandler believed that:
a) Strategy should be developed first and the organization tailored to meet the requirements of the strategy
b) Set the strategy according to the organization’s strengths and weaknesses
c) Strategy should be allowed to develop incrementally
Answer: a) Strategy should be developed first and the organization tailored to meet the requirements of the strategyAnswer
d) Strategy should be allowed to evolve over time
Q9: The key activities in the strategic management process are:
a) Analysis, formulation, review
b) Analysis, implementation, review
c) Analysis, formulation, implementation
d) Formulation, analysis, implementation
Answer: c) Analysis, formulation, implementationAnswer
Q10: Strategy analysis is also referred to as:
a) SWOT analysis
b) Strategy diagnosis
c) Rational analysis
d) Situation analysis
Answer: d) Situation analysisAnswer
Q11: Strategy formulation takes place at two levels. These are:
a) Conscious and sub-conscious
b) Implicit and explicit
c) Corporate and business
d) Business and operational
Answer: c) Corporate and businessAnswer
Q12: The goals of an organization derive from its:
a) Strategy
b) Purpose
c) Objectives
d) Mission
Answer: b) PurposeAnswer
Q13: The statement of an organization’s aspirations can be found in the organization’s:
a) Mission statement
b) Strategic objectives
c) Actions
d) Vision statement
Answer: d) Vision statementAnswer
Q14: Decisions regarding which industries to compete in are the concern of:
a) Business level strategy
b) Corporate level strategy
c) Mergers and acquisitions
d) Functional level strategy
Answer: b) Corporate level strategyAnswer
Q15: Competitive strategy is also known as:
a) Competitive positioning
b) Corporate level strategy
c) Industry strategy
d) Business level strategy
Answer: d) Business level strategyAnswer
Q16: In the SWOT analysis, the ‘strengths’ and ‘weaknesses’ part refers to:
a) What the organization does internally in relation to competitors
b) The potential level of profits in the industry
c) The quality of the products and services in relation to competitors
d) The potential level of sales in the market
Answer: a) What the organization does internally in relation to competitorsAnswer
Q17: A method for imagining alternative, possible futures is known as:
a) Scenario imagining
b) Scenario composition
c) Scenario planning
d) Scenario envisioning
Answer: d) Scenario envisioningAnswer
Q18: The general environment is also referred to as the:
a) Micro-environment
b) Macro-environment
c) Competitive environment
d) External environment
Answer: b) Macro-environmentAnswer
Q19: The general environment can be broken down using a PEST analysis. Conventionally the PEST analysis consists of:
a) Political, economic, scientific, technological
b) Political, environmental, social, technological
c) Political, economic, social, technical
d) Political, economic, social, technological
Answer: d) Political, economic, social, technologicalAnswer
Q20: Competitive rivalry will be high if:
a) The industry is fragmented
b) There are a few strong players in the industry
c) There is a high degree of differentiation
d) The industry is in its infancy
Answer: a) The industry is fragmentedAnswer
Q21: A substitute product or service is:
a) A competitor’s product or service
b) An alternative way of meeting the same need
c) A new entrant into the industry
d) A less attractive way of meeting the same need
Answer: b) An alternative way of meeting the same needAnswer
Q22: Buyer power is high if:
a) Differentiation is low
b) Switching costs are low
c) They have little information
d) The buyer requires a high quality product for their own production
Answer: b) Switching costs are lowAnswer
Q23: In Porter’s Five Forces, the ‘threat of new entrants’ relates to:
a) Barriers to entry
b) Substitutes
c) Switching costs
d) Buyer power
Answer: c) Switching costsAnswer
Q24: The value chain is subdivided into two main headings. These are primary activities and:
a) Peripheral activities
b) Support activities
c) Secondary activities
d) Outsourced activities
Answer: b) Support activitiesAnswer
Q25: The decision regarding whether to do manufacturing within the organization or to subcontract it to someone else is popularly known as:
a) An ‘in or out’ decision
b) A ‘make or buy’ decision
c) A ‘do-it-yourself decision
d) A ‘vertical-integration’ decision
Answer: b) A ‘make or buy’ decisionAnswer
Q26: WH-Smith the stationer and bookseller has a store on most high streets in the UK. In terms of the SWOT analysis, this could be considered a:
a) Strength
b) Weakness
c) Strength and a weakness
d) Neither strength nor a weakness
Answer: a) StrengthAnswer
Q27: A market is defined by:
a) Demand conditions and customers
b) Demand conditions and suppliers
c) Supply conditions and production technology
d) Supply conditions and customers
Answer: c) Supply conditions and production technologyAnswer
Q28: Porter’s generic strategies are:
a) Low price, differentiation, focus
b) Cost leadership, differentiation, cost focus, focus differentiation
c) Price leadership, differentiation, focus
d) Low cost, differentiation, focus differentiation
Answer: c) Price leadership, differentiation, focusAnswer
Q29: According to Porter, if an organization does not follow either a cost reduction strategy or a differentiation strategy they are:
a) Hybrid
b) Stuck in the middle
c) Typical
d) No frills
Answer: b) Stuck in the middleAnswer
Q30: In Porter’s Generic Strategies model, a focus strategy involves:
a) Selling a limited range of products
b) Selling to a narrow customer segment
c) Selling to one region only
d) Selling simple products that are cheap to produce
Answer: b) Selling to a narrow customer segmentAnswer
Q31: A differentiation strategy offers:
a) A broad segment something unique
b) A narrow segment something unique
c) A broad segment something more expensive
d) A narrow segment something more expensive
Answer: b) A narrow segment something uniqueAnswer
Q32: Kim and Mauborgne (2005) argue that organizations should try to capture uncontested market space. These uncontested markets are known as:
a) Blue skies
b) Blue oceans
c) White skies
d) Fresh snows
Answer: b) Blue oceansAnswer
Q33: In Ansoff s matrix, ‘product development’ involves going in the direction of:
a) Present products to present markets
b) Present products to new markets
c) New products to present markets
d) New products to new markets
Answer: c) New products to present marketsAnswer
Q34: Horizontal integration is where:
a) A firm takes over a supplier
b) A firm takes over a distributor
c) A firm takes over a competitor
d) A firm takes over a manufacturer
Answer: d) A firm takes over a manufacturerAnswer
Q35: ___reduces uncertainty
a) Negotiating
b) Planning
c) Organizing
d) Leading
Answer: b) PlanningAnswer
Q36: ___are those plans that are extended beyond three years
a) Short-term plans
b) Long-term plans
c) Specific plan
d) Strategic plan
Answer: b) Long-term plansAnswer
Q37: Value Chain is an effective tool for
a) External Analysis
b) Internal Analysis
c) Self-analysis
d) Systematic analysis
Answer: d) Systematic analysisAnswer
Q38: The preparation of ETOP involves:
a) Dividing environment into sectors, sub factors, analyze impact of each sector and sub factor on organization, description of impact of each sub factor into a statement which is positive, neutral or negative.
b) Description of impact of each sub factor into a statement which is positive, neutral or negative, dividing environment into sectors, sub factors, analyze impact of each sector and sub factor on organization
Answer: a) Dividing environment into sectors, sub factors, analyze impact of each sector and sub factor on organization, description of impact of each sub factor into a statement which is positive, neutral or negative.Answer
Q39: Make or buy decision is related with strategy
a) Vertical (forward) integration
b) Vertical (backward) integration
c) Horizontal integration
d) Diversification
Answer: d) DiversificationAnswer
Q40: Strategic management is mainly the responsibility of
a) Top Management
b) Senior Management
c) General Management
d) Middle Management
Answer: a) Top ManagementAnswer
Q41: A hardware manufacture enters into software is an example of integration
a) Vertical (forward) integration
b) Vertical (backward) integration
c) Horizontal integration
d) Diversification
Answer: c) Horizontal integrationAnswer
Q42: Scheduling is a part of strategic management. Correct Answer
a) False
b) True
Answer: Wrong – FalseAnswer
Q43: Factors to be considered in political- legal environmental scanning are
a) govt. policies, stability, philosophy of govt., legal system, implementation, infrastructure, import-export
b) govt. policies, stability, philosophy of govt., legal system, implementation, infrastructure
Answer: b) govt. policies, stability, philosophy of govt., legal system, implementation, infrastructureAnswer
Q44: Micro environment is the internal environment of a company. Correct Answer
a) False
b) True
Answer: Correct – TrueAnswer
Q45: Perspective which does not belong to four Balanced Scorecard perspectives is:
a) The Business Process Perspective
b) The Customer Perspective
c) The Learning and Growth Perspective
d) The Business Reengineering Perspective
Answer: d) The Business Reengineering PerspectiveAnswer
Q46: Can objectives be arranges in hierarchy
Yes
No
Answer: YesAnswer
Q47: Companies do not have a conscience
Yes
No
Answer: YesAnswer
Q48: Does environment affect the organization
Yes
No
Answer: YesAnswer
Q49: Environment has six main facets
Yes
No
Answer: YesAnswer
Q50: Domestic level analysis does not differ from multinational analysis
Yes
No
Answer: NoAnswer
Q51: Do you agree that soon all industries will have to evaluate global environment
Yes
No
Answer: YesAnswer
Q52: Skills and Abilities of the individual you would like to hire as the environmental forecaster for your Rs. 500 corers sales organization. Would be same for a smaller and larger group? Can you list some Skills and abilities
Yes
No
Answer: No Skills and abilities required will be mental ability, analytical ability. Should oral and written communication skills.Answer
Q53: SBU’s do not have to pursue economic goals
Yes
No
Answer: YesAnswer
Q54: ROI, Payback Period, IRR and NPV are tools of decision making
Yes
No
Answer: YesAnswer
Q55: Can you draw life cycle curve and label the phases it depicts
Yes
No
Answer: NoAnswer
Q56: A company does not need a contingency Strategy
Yes
No
Answer: NoAnswer
Q57: Is centralized organization more responsive to dynamic environment
Yes
No
Answer: NoAnswer
Q58: Is it true that top management policies should be broad, general, and flexible while that of the lower level policies should be explicit, narrow, and rigid
Yes
No
Answer: YesAnswer
Q59: Do you know the steps of strategy implementation? Can you list them
Yes
No
Answer: YesAnswer
The steps of strategic implementation are as follows:
Resource allocation
Leadership implementation
Structural implementation
Functional implementation
Behavioral implementation
Q60: Annual objectives are not needed when there are long term objectives already available
Yes
No
Answer: NoAnswer
Q61: Strategy formulation and implementation are often taken separately
Yes
No
Answer: YesAnswer
Q62: Do you know the reasons for the unsuccessful implementation of strategy
Yes
No
Answer: YesAnswer
Q63: Personal factors are not important in strategic choice
Yes
No
Answer: YesAnswer
Q64: Are you aware of Strategic Control? Can you explain
Yes
No
Answer: YesAnswer
Strategic control continually monitors strategy in the context of organizational and environmental change and take necessary steps to adjust the strategy to the new requirements. The two techniques used to evaluate strategic control are:
(a) Strategic momentum control and
(b) Strategic leap control
Q65: Implementation Controls, Strategic Surveillance, and Special Alerts, signify same activities
Yes
No
Answer: YesAnswer
[These are basic types of strategic controls.]
Q66: Standards need not be as concrete and specific as possible
Yes
No
Answer: YesAnswer
Q67: Net profit is accurate indicator of success for a foreign subsidiary
Yes
No
Answer: YesAnswer
Q68: Strategy follows structure for successful strategy implementation
Yes
No
Answer: YesAnswer
[Structure of a firm can influence its strategy formulation process.]
Q69: Structure follows Strategy for successful strategy implementation
Yes
No
Answer: YesAnswer
Q70: Structural change often lags a change in strategy
Yes
No
Answer: YesAnswer
Q71: Leadership goes not play any important role in strategy implementation
Yes
No
Answer: NoAnswer
Q72: Good personal leadership is humane, far-sighted, inspired and confident?
Yes
No
Answer: YesAnswer
Q73: Which of the following lists is comprised of support activities:
a) human resource management, information systems, procurement and firm infrastructure
b) customer service, information systems, technology development, and procurement
c) human resource management, technology development, customer service, and procurement
d) human resource management, customer service, marketing and sales, and operations
Answer: a) human resource management, information systems, procurement and firm infrastructureAnswer
Q74: Which of the following is true about business strategies
a) An organization should stick with its strategy for the life of the business
b) All firms within an industry will adopt the same strategy
c) Well defined missions make strategy development much easier.
d) Strategies are formulated independently of SWOT analysis
Answer: c) Well defined missions make strategy development much easier. Answer
Q75: Which of the following is an example of competing on the basis of differentiation
a) A firm offers more reliable products than its competitors.
b) A firm’s products are introduced into the market faster than its competitors’
c) A firm’s distribution network routinely delivers its product on time
d) firm manufactures its product with less raw material waste than its competitors
Answer: a) A firm offers more reliable products than its competitors. Answer
Q76: The two internal elements of SWOT analysis are
a) strengths and weaknesses
b) opportunities and threats
c) strengths and opportunities
d) weaknesses and threats
Answer: a) strengths and weaknesses Answer
Q77: The impact of strategies on the general direction and basic character of a company is
a) short ranged
b) medium range
c) long range
d) temporal
Answer: c) long range Answer
Q78: What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives
a) Strategy formulation
b) Strategy evaluation
c) Strategy implementation
d) Strategic management
Answer: d) Strategic managementAnswer
Q79: Which group would be classified as a stakeholder
a) Banks
b) Suppliers
c) Employees
d) All of these
Answer: d) All of theseAnswer
Q80: The fundamental purpose of an organization’s mission statement is to
a) create a good human relations climate in the organization
b) define the organization’s purpose in society
c) define the operational structure of the organization
d) generate good public relations for the organization
Answer: b) define the organization’s purpose in society Answer
Q81: What analytical tool has four quadrants based on two dimensions: competitive position and market growth
a) Competitive Profile Matrix
b) Internal-External Matrix
c) Grand Strategy Matrix
d) SPACE Matrix
Answer: c) Grand Strategy Matrix Answer
Q82: The primary benefit sought from restructuring is
a) Employee involvement
b) Cost reduction.
c) Increased morale
d) Increased number of hierarchical levels in the organization
Answer: b) Cost reduction. Answer
Q83: Cash cows are always in
a) Introductory industry
b) Growing industry
c) Mature industry
d) Declining industry
Answer: c) Mature industry Answer
Q84: Which of the following resources is used by all organizations to achieve desired objectives
a) Financial resources,
b) Physical resources,
c) Human resources
d) All of the mentioned options
Answer: d) All of the mentioned options Answer
Q85: Walls” ice cream purchase “Polka” in order to capture the market. Such kind of integration is called:
a) Forward Integration
b) Backward Integration
c) Horizontal Integration
d) Product Development
Answer: c) Horizontal IntegrationAnswer
Q86: The___has its own business strategy, objectives and competitors and these are often differ from parent company
a) Strategic Business Unit structure
b) Matrix structure
c) Divisional structure
d) None of given option
Answer: a) Strategic Business Unit structure Answer
Q87: Can best be described as short-term in nature
a) Annual objectives
b) Tenure
c) Mission statements
d) Strategies
Answer: a) Annual objectives Answer
Q88: Which of these is often considered the first step in strategic planning
a) Establishing goals and objectives
b) Developing a vision statement
c) Making a profit
d) Developing a mission statement
Answer: d) Developing a mission statement Answer
Q89: Which of the following are Porter’s generic strategies
a) Low price, differentiation, focus
b) Cost leadership, differentiation, focus
c) Price leadership, differentiation, focus
d) Low cost, differentiation, focus differentiation
Answer: b) Cost leadership, differentiation, focus Answer
Q90: Which matrices are also known as Portfolio matrices
a) SPACE and BCG matrix
b) IE and BCG matrix
c) TOWS and IE matrix
d) SPACE and TOWS matrix
Answer: b) IE and BCG matrix Answer
Q91: Conglomerate diversification is another name for which of the following
a) Related diversification
b) Unrelated diversification
c) Portfolio diversification
d) Acquisition diversification
Answer: c) Portfolio diversification Answer
Q92: Restructuring is also referred to as
a) De-layering.
b) Starting over
c) Diversifying
d) Job security
Answer: a) De-layering.Answer
Q93: Hofer’s matrix is a fifteen cell matrix in which businesses are plotted in terms of their competitive position &
a) Relative profit
b) Relative market share
c) Growth rate
d) Stage of product/market evolution
Answer: d) Stage of product/market evolutionAnswer
Q94: Functional managers are responsible
a) for a single area of activity
b) to the upper level of management and staff
c) for complex organizational sub-units
d) for obtaining copyrights and patents for newly developed processes and equipment
Answer: a) for a single area of activity Answer
Q95: The degree to which jobs are standardized and guided by rules and procedures is called:
a) Work specialization
b) Centralization
c) Decentralization
d) Formalization
Answer: d) FormalizationAnswer
Q96: Which factor has been the most rapidly changing component in an organization’s general environment in the past quarter-century
a) Global
b) Economic
c) Social
d) Technological
Answer: d) Technological Answer
Q97: The process of collaborative goal setting by a manager and subordinate; the extent to which goals are accomplished is a major factor in evaluating and rewarding the subordinate’s performance. It is called:
a) Management by objective
b) Management by resources
c) Management by authority
d) Management by system
Answer: a) Management by objective Answer
Q98: An organization that assigns specialists from different functional departments to work on one or more than one projects being led by project managers is called ————-
a) Team Organization
b) Virtual Organization
c) Matrix organization
d) Learning Organization
Answer: c) Matrix organization Answer
Q99: This is an example of a global strategy which is low in risk as it avoids the cost of establishing production operations in another country
a) Franchising
b) Licensing
c) Export
d) globalisation
Answer: c) ExportAnswer
Q100: In the activities are grouped according to functions of management such as finance, accounting, purchasing
a) product/ market structure
b) Line organistion
c) staff organisation
d) functional structure
Answer: d) functional structureAnswer
