MODEL QUESTION PAPER

SUBJECT CODE : MB0052 SUBJECT : Strategic Management & Business Policy

SECTION A

1. A ___________ defines the purpose and principles of an organization in terms of values of an organisation. a. mission statement b. vision statement c. strategy d. goal

2. In a business, _________ is the doing phase. a. Business b. Survival c. Profit maximization d. Tactics

3. The key concept of production process involves _______________ of an organisation. a. Resources b. Planning c. Capability d. Competency

4. The objective of strategic management in the organisation is to implement ______________ workflow. a. Design b. Crucial c. Systematic d. Integrated

5. ______________ is the process of choosing the possible course of action. a. Strategic analysis b. Strategic implementation c. Strategic formulation d. Strategic choice

6. The overall responsibility of management relies upon _____________. a. Top level management b. Planning staff c. Stakeholders d. Board of directors

7. Which among the following generates problem solving inventions? a. Economic force b. Technological force c. Political-legal force d. Socio-cultural force

8. The process to formulate and implement strategy is known as _____________. a. Strategy implementation b. Strategy planning c. Strategy management d. Strategy analysis

9. Value chain analysis concept was introduced by ___________. a. Michael Porter b. Prahalad c. Robert Kaplan d. Gary Hamel

10. The objective of strategy formulation is to express _________________ to achieve a definite goal. a. Strategical information b. Technical information c. Environmental information d. Policy

11. According to Mintzberg, hard data provides information whereas soft data provides ________________. a. Strategy b. Wisdom c. Guideline d. Process

12. A company which is interested to develop its core competencies should create an organizational _____________ that sets goal for competence building. a. Certification b. Road map c. Mission statement d. Policy

13. __________ guide on how the strategic activities need to be performed through top management orders, standard operating procedures, policies and rules. a. Feed forward controls b. Concurrent controls c. Feedback controls d. Operational controls 14. Grouping employees into teams and broadening the organizations product or market mix is an attempt to achieve _______________. a. Synergy b. Operational control c. Strategic control d. Key stakeholders expectations

15. The various positions held by _____________ often create disparities between their individual needs, priorities and interests. a. Managers b. Analysts c. Shareholders d. Stakeholders

16. _____________ are the instructions laid by an organisation to manage its activities. a. Top level management b. Business policies c. Resources d. Coordination

17. It is important to formulate policies to achieve ______________. a. Organizational goals b. Organizational behaviour c. Coordination d. Decision making

18. __________ is a predefined course of action set up by top level management to provide guidance towards business strategies and objectives. a. Process b. Metrics c. Policy d. Programme

19. The __________ are necessary to govern the organisation. a. Resources b. Policies c. Stakeholders d. Shareholders

20. Business policy interrelates to the ____________ of the organisation. a. Resources b. Shareholders c. Objectives d. Managerial actions

21. The policies are altered according to the framed ____________. a. Rules b. Decisions c. Guidelines d. Strategies

22. _______________ is important to the continued success of an organisation. a. Contingency Planning b. Business Continuity Planning c. Business Continuity Management d. Business Continuity Policy 23. _______________of organizations current BCP policy is one of methods of BCP policy. a. Identification b. Research c. Review d. Analysis

24. _______________ Damage has an effect on annual profit. a. Reputational b. Financial c. Loss of privacy d. Loss of integrity

25. A business plan is a complete ______________ that summarizes the operational and financial objectives of a business. a. Empirical document b. Factual statement c. Internal document d. Legal document

26. Strategies for creating a business plan includes defining the business vision and understanding the _______________. a. Team b. Customer c. Management d. Competitor

27. A balanced vertical integration strategy is a strategy in which a firm owns the ___________ that produce inputs and also distributes the outputs. a. Certification b. Accreditation c. Subsidiaries

d. Strategies

28. MNCs operating in different countries are subjected to numerous __________. a. Host country regulations b. Threats c. Competency d. Regression

29. ___________ is the process of integration of the world community into a common economic or social system. a. Decoding b. Transmitting c. Interpreting d. Globalization

30. ___________ is the process of granting the franchisee permission to use a name, method, process or trademark. a. Budget b. Franchising c. Outsourcing d. Performance

31. Strategic alliances are required to increase ______________ ratio. a. Analysis b. Financial c. Human resource d. Productivity

32. Which of the following types of mergers has maximum or minimum effect on the market? a. Market extension merger b. Horizontal merger c. Vertical merger d. Conglomerate merger

33. Which among the following is one of the steps involved in creativity? a. Brainstorming b. Implementation

c. Illumination d. Architectural innovation

34. _______________ is an effective way to generate many ideas on a specific issue. a. Mind mapping b. Creativity c. Entrepreneurship d. Brainstorming

35. Employee __________ helps an organisation to analyses the ethical conduct. a. Review b. Metrics c. Audit d. Survey

36. Unethical strategies are ________________ with the concept of socially responsible business behaviour. a. Compatible b. Practiced c. Incompatible d. Measured

37. The field of strategic management has significantly improved in gathering information about the operational and _______________ performance. a. Production b. Organisation management c. Financial d. Human resources

38. The advent of globalization has changed the view of ______________ and organizations ability to do business. a. Shareholders b. Employees c. Top management d. Market

39. Innovation gives a sustainable competitive advantage to an organisation only when it is performed on a ____________ basis and supported by a leadership team. a. Continuous b. Occasional c. Supportive d. Sequential

40. The ______________ approach is used by managers who want to understand the reactions of their team members during the change process in an organisation. a. Certification b. Psychodynamic c. Psychological d. Intellectual

SECTION B

41. Which among the following does not belong to the levels of strategy? a. Corporate strategy b. Business strategy c. Operational strategy d. Conceptual strategy

42. State whether the following statements are true or false. 1. No change strategy is the process of continuing the current operation and creating nothing new. 2. Pause/Proceed with caution strategy do not analyses the advantages and disadvantages before processing the growth strategy. a. 1F, 2T b. 1T, 2T c. 1T, 2F d. 1F, 2F

43. Which of the following statement is true? a. Good reputation among customers is one of the strength of an organisation.

b. High cost structure is one of the strength of the organisation. c. Removal of international trade barriers is a threat to an organisation. d. Increased trade barriers is an opportunity for the organizations.

44. The role of a strategic leader is to establish __________ and communicate ________________ in the organisation. a. Peace, information b. Organizational structure, strategic vision c. Strategies, strategic vision d. Organizational structure, peace

45. Which among the following sentences is false? a. Strategic decisions are concerned with analyzing the accuracy of the decision premise. b. Key Stakeholders are a subset of stakeholders who can do not leave a direct impact on the organisation and can influence the success or failure of the organisations activities. c. Strategic control is established to focus on the resources used in the performance (input), activities that generate the performance (behaviour) and the result of actual performance (output). d. Downsizing and divesting may result in negative synergy.

46. Which amongst the following is not the feature of business policy? a. Communication skills b. Specific c. Uniform d. Appropriate

47. The advancement of the technology leads to increase in the cost of the ____________ and requires _____________ for the employees. a. Machinery and training b. Design and implementation c. Analysis and design d. Machinery and implementation

48. The loss of _______________ sensitive information or _______________ may result in legal liabilities. a. Commercially, intellectual property b. Sensitive, intellectual property

c. Personal, information d. Relocating, intellectual property

49. Corporate restructuring deals with the factors like ____________ and _____________. a. Internal transformation, financial restructuring b. Distribution problems, faulty time management c. Augmentation of strategic control, focused diversification strategy creation d. Franchising, strategic alliances

50. Which among the following statements is true? a. The most important advantage of MNCs is the patented technical knowledge which enables them to compete internationally b. Large MNCs do not have access to advanced levels of technology which are either developed or acquired by the corporation c. The technologies of MNCs are not patented d. Technology cannot be in the areas of management, services or production

51. State whether the following statements are true or false. 1. Contract negotiation is the process of determining the two parties' realistic objectives such that a high calibre is formed in negotiating between the two organisations. 2. Strategy development is the process of combining two or more organisations to form a single organisation and achieve greater efficiencies of scale and productivity. a. 1T, 2F b. 1T, 2T c. 1F, 2T d. 1F, 2F

52. Which of the following statements are correct? 1. Mergers occur when two similar organisations proceed to become a single organisation. 2. In merger, when the organisations deal is unfriendly, it leads to purchasing of the other organisation. 3. In merger, organisations stocks are submitted and new stock is issued. a. 1, 2 b. 1, 2, 3 c. 2, 3 d. 1, 3

53. Which among the following statements is true? a.Creativity and innovation can provide competitive advantage to an organisation b.Creativity discourages active interaction in the organisation c.A flexible culture prevents an organisation from responding to a rapidly changing marketplace or to new business opportunities d.Creativity increases strategic barriers

54. _______________ avoid _______________ and encourages development of new process which represents improvement in old process. a. Brainstorming, mind mapping b. Out of the box thinking, micromanagement c. Using jargon, micromanagement d. Buffer zone, policies

55. State whether the following statements are true or false. a. CSR improves the quality of life of the organisation; CSR is effective in areas like human rights, safety at work, consumer protection, climate protection, caring for the environment, and sustainable management of natural resources. b. CSR reduces the reputation of the organisation; CSR also reduces the relationships with the regulators. c. CSR declines the environmental awareness by an organisation; CSR follows unethical conduct in an organisation. d. CSR enhances the costs by maintenance process, CSR also enhances stronger financial performance through operational efficiency gains.

56. Companies have to prepare ________________ statements to show _________________ in its financial position and business activities. a. Functional, profits b. Accounts, decency c. Business, accounts d. Financial, transparency

57. The flexibility effects are concerned with the dynamics of future knowledge _____________, applications and ____________ to new internal and external developments. a. Strategies and production b. Policies and human resource

c. Acquisitions and responses d. Strategies and acquisitions

58. What are the four stages of economic cycle? a. Analysis, design, development and implementation. b. Economic expansion, slowdown, recession and recovery. c. Strategic analysis, choice, formulation and implementation. d. Definition of purpose, strategic intelligence, policy alternatives, choice and review.

59. Which among the following choices depict the important factors of an organizational culture? a. Improving the cultural effectiveness of an organisation, Defining new behaviours. b. Creating energy and momentum in an organisation, Focusing and influencing the nature of human behaviour. c. Applying new concepts and skills, Gathering senior management data. d. Creating energy and momentum in an organisation, developing abilities to observe the challenges in the organisation.

60. For the creation of a learning organisation, a ______________ system has to be created and must be integrated with _______________ systems. a. Communication, control b. Design, technical c. Control, design d. Communication, technical SECTION C

61. State whether the following statements are true or false. 1. Critical Success Factors are associated to the strategic goals of an Organisation. 2. Critical Success Factors does not refer to main areas which ensure successful competitive performance of an Organisation. 3. Identifying Critical Success Factors helps to ensure that the business is focused and thus avoids wasting effort on insignificant areas. 4. Critical Success Factors should be specific and should be communicated to everyone involved. Choices

a. 1T, 2F, 3T, 4T b. 1F, 2F, 3T, 4T c. 1T, 2T, 3F, 4F d. 1T, 2T, 3T, 4F

62. Match the following. First set: A. Planning staff B. Concentration expansion strategy C. Captive company strategy D. Differentiation strategy Second set: 1. Provides products or services with unique features. 2. Process of tying up with larger organisations. 3. Subordinate team. 4. Expands present lines of activities. a. A-1, B-3, C-4, D-2 b. A-2, B-3, C-1, D-4 c. A-3, B-4, C-2, D-1 d. A-4, B-1, C-3, D-3 63. Match the following: First set A. Market penetration B. Market development C. Product development D. Diversification Second set 1. Business strategy aiming to introduce new products into existing markets. 2. Business strategy for marketing new products into new market. 3. Business strategy focusing on selling existing products into existing markets. 4. Business strategy focusing on selling existing products into new markets. a. A-4, B-1, C-2, D-3 b. A-3, B-4, C-1, D-2 c. A-1, B-2, C-3, D-4 d. A-2, B-3, C-4, D-1

64. Identify the correct statement from the following. a. Tall structure has clear progression, but flat structure has better team spirit. b. Tall structure has better team spirit whereas flat structure has lesser team spirit. c. Tall structure has clear progression but flat structure has lesser team spirit. d. Tall structure does not have clear progression whereas flat structure has better team spirit. 65. The term balanced in balanced scorecard approach indicates that the system is balanced between: 1. Financial and non-financial measures 2. Stakeholders and shareholders 3. Lagging and leading indicators 4. Internal and external performance perspectives a. 1T, 2T, 3T, 4T b. 1T, 2T, 3T, 4F c. 1T, 2T, 3F, 4T d. 1T, 2F, 3T, 4T

66. State whether the following statements are true or false. 1. Policy should be not being uniform and consistent. 2. Policy should be aimed at achieving the organizational objectives. 3. Policy should be flexible to ensure that it is followed in the routine scenario. 4. Policy should be stable. Choice a. 1F, 2T, 3T, 4T b. 1T, 2T, 3F, 4F c. 1F, 2F, 3F, 4T d. 1F, 2F, 3T, 4F

67. State whether the following statements are true or false. 1. Step four involves implementing policy change which in turn involves top level management initializing to form a policy developing team after the decision makers informs regarding the policy change. 2. Policies do not act as guidelines in framing the decisions that are vital to the directing principles of the strategic management. 3. Policies are laid down abiding to the factors of the government.

4. Selecting the most suitable policy and evaluating the impact of policy mainly lies with the board of directors. a. 1F, 2T, 3F, 4T b. 1F, 2T, 3T, 4F c. 1T, 2F, 3T, 4F d. 1F, 2T, 3F, 3T 68. Match the following: First set A. Initiation B. Business impact analysis C. Disaster readiness strategies D. Develop and implement the plan Second set 1. Emergency response and operations. 2. Analysis of organisation's financial status and operational impact. 3. Establishing a business continuity planning committee. 4. Defining business continuity alternatives. a. A-4, B-1, C-3, D-2 b. A-1, B-3, C-2, D-4 c. A-3, B-2, C-4, D-1 d. A-2, B-4, C-1, D-3

69. Which of the following choices is correct? 1. Having a clear disposition towards price is one of the ways to invest successfully. 2. Targeting short-term revenue growth is a factor implemented by an existing business 3. One of the investment strategies of a new business is to be focused and alert during sudden declination 4. Being conservative in business is not the correct approach to invest successfully a. 1F, 2T, 3F, 4T b. 1T, 2T, 3F, 4F c. 1F, 2F, 3T, 4T d. 1T, 2F, 3T, 4F

70. State whether following statements are true or false? 1. The firm identifies its potential market, locates the available resources, hire personnel, develop a marketing plan and identify retail outlets

2. The firm establishes management controls and feedback system 3. The international sales in countries cannot be generated with the help of Internet 4. Technology plays an important part in the decision making in an organization Choices: a. 1-T, 2-T, 3-F, 4-T b. 1-F, 2-F, 3-T, 4-F c. 1-F, 2-F, 3-T, 4-T d. 1-T, 2-F, 3-F, 4-T

71. Match the following: First set: 1. Co-branding agreement 2. Contractual agreement 3. Affiliate marketing 4. Conditional Second set: A. It involves identifying the type of offer being laid by the organisation to make an agreement. B. It is based on occurrence of an event. C. It includes aspects such as rights, obligations, and restrictions. D. It is the process of revenue sharing between the website owner and the online merchant. a. 1-C, 2-A, 3-D, 4-B b. 1-B, 2-D, 3-C, 4-A c. 1-D, 2-B, 2-A, 4-C d. 1-A, 2-C, 3-B, 4-D

72. Match the following: Set A A. Keeping minds open for new opportunities. B. Competitive advantage C. Improves learning and knowledge transfer D. Removing strategic barriers Set B 1. Rigid culture prevents the organisation from responding to new business opportunities 2. Lynchpin of creativity 3. Intangible assets as it is difficult to copy or imitate 4. Creativity encourages active interaction

Choices: a. A-4,B-1,C-2,D-3 b. A-3,B-2,C-1,D-4 c. A-2,B-3,C-4,D-1 d. A-1,B-4,C-3,D-2

73. Which of the following choices determine the factors enhancing social business obligations? 1. Stabilising employer-employee relationships 2. Implementing punishable act towards corruption or any illegal act in an organisation 3. Identifying key areas to assess the community, economy and environment 4. Respecting ethical values, people and community in an organisation a. 123 b. 234 c. 124 d. 134 74. Match the following: First set: 1. Knowledge 2. Future 3. Global competitiveness 4. Strategic change Second set: A. Depends on long term goals and plans. B. Helps in exploiting business opportunities across nations to achieve goals. C. It refers to non-routine, non-incremental and discontinuous change which alters the overall direction and components of the organisation. D. Medium to address the challenges in organisation. a. 1-D, 2-A, 3-B, 4-C b. 1-A, 2-C, 3-D, 4-B c. 1-B, 2-D, 3-C, 4-A d. 1-C, 2-B, 3-A, 4-D 75. Match the following: First set: A. Trait of strategic thinker

B. Feature of strategic thinking C. Critical success factor for strategic thinking D. Definition of strategic thinking Second set: 1. Identifying relationships that support the whole organisation and its vision 2. Broad innovative thinking on a daily basis to achieve overall goals in the team and organisation 3. Having broader boundaries to think, plan, perform, analyse and evaluate a task 4. Prepare all objectives satisfying the ideal vision and mission of an organisation a. A-1, B-2, C-4, D-3 b. A-2, B-3, C-1, D-4 c. A-3, B-1, C-4, D-2 d. A-4, B-2, C-3, D-1