Question - 1/55

Awareness, as a prerequisite to any competitive action or response taken by a firm refers to

Answer Choices
the extent to which competitors recognize the degree of their mutual interdependence that
results from market commonality and resource similarity
the firm''s incentive to take action or to respond to a competitors attack, related to perceived
gain or loss
the firm's resources & the flexibility arising from those resources
none of the above

Question - 2/55
Greater acquisition success accrues to firms which are able to
Answer Choices
select the 'right' target
avoid paying too high a premium
avoid getting trapped in the 'bidding war'
all the above

Question - 3/55
According to Raymond Vernon''s International Product Life Cycle Theory, international
diversification is preferable in order to
Answer Choices
avoid international trade regulations
avoid domestic governmental taxation pressures
enhance the product's life cycle
all the above

Question - 4/55
All except ___________ are support activities in the basic value chain as given by Michael E.
Porter.
Answer Choices
HRM
outbound logistics

firm infrastructure
technological development

Question - 5/55
Quick access to new markets, complex negotiations involved, and problems of merging with
domestic operations , are characteristics of
Answer Choices
exporting
licensing
strategic alliance
acquisition

Question - 6/55
Agency problem can be understood and managed by realizing that both owners as well as
managers seek to reduce risk, but the difference is that
Answer Choices
owners seeks diversification somewhere between dominant business and unrelated
businesses
owners seek diversification somewhere between dominanat business and related constrained
managers seek diversification somewhere between related linked and unrelated businesses
2&3

Question - 7/55
The fundamental purpose of Strategic Management is
Answer Choices
to increase turnover of the firm
to reap above average profits
to maximize efficiency
all the above

Question - 8/55
Which of the following is NOT a business - level strategy

Answer Choices
differentiation
focussed differentiation
integrated cost leadership/differentiation
none of the above

Question - 9/55
Which of the following pairs of firms has least resource similarity?
Answer Choices
ICICI Pru & Bajaj Allianz
Frito Lay & Coca Cola
Raymond's & S Kumar's
RIL & ONGC

uestion - 10/55
Broadly speaking, which of the following is true?
Answer Choices
Firms competing in single market have greater rivalry than firms competing in multiple
markets
Firms competing in single market have lesser rivalry than firms competing in multiple markets
Firms competing in single market have similar rivalry than firms competing in multiple
markets
Firms competing in single market have no correlation with rivalry amongst firms competing in
multiple markets

Question - 11/55
Scanning, Monitoring, Forecasting and Assessing are
Answer Choices
components of external environment analysis

contemporary business level strategies

international diversification strategies
methods of strategic alliance formation

Question - 12/55
Which of the following question would be redundant for a business strategy?
Answer Choices
who are the customers to be served?
what customer needs are to be served?
why should these customer's needs be satisfied?
none of the above

Question - 13/55
Managerial opportunism is
Answer Choices
is seeking of self interest with guile
that have a small share of a fast growing market
that have a small share of a slow growing market
that have a large share of a fast growing market

Question - 14/55
Which of the following is true about strategic alliance?
Answer Choices
it is unlikely to succeed if partnering firms are headquartered in the same country
it may be too restrictive to facilitate entry into new markets
it generally increases the ICOR

it is more frequent than other types of cooperative strategies

Question - 15/55
First mover" is a firm
Answer Choices
that takes initial competitive action in order to build or defend its competitive advantage
that is more cautious than others about the uncertainty of future cash flows
that develops a unique way to enter the markets after diligently analysing competitors'
actions
all the above

Question - 16/55
The world famous company which used the slogan "Always Low Prices" for 19 years, has
recently changed to a new slogan, that is
Answer Choices
Save Money, Live Better
Sabse Sasta
We understand your pocket
We reduce your costs

Question - 17/55
Which of the following orientations does not comprise the entrepreneurial mind-set?
Answer Choices
proactiveness
autonomy
competitive aggressiveness
risk aversion

Question - 18/55
Which of the following is not a attribute of successful acquisitions?
Answer Choices
acquisition is friendly
merged firm maintains low to moderate debt position
acquiring firm conducts effective due diligence
none of the above

Question - 19/55
Differential strategy offers
Answer Choices
a broad segment something unique based on easy to manufacture technologies
a broad segment something unique based on strong capability in basic research
a narrow segment something unique based on easy to manufacture technologies
a narrow segment something unique based on strong capability in basic research

Question - 20/55
Greenfield venture is
Answer Choices
strategic alliance
export oriented unit
new wholly owned subsidiary
none of the above

Question - 21/55
A firm''s relationship with customers is characterised by all dimensions , except
Answer Choices
richness
reach
anticipation
affiliation

Question - 22/55
________________ strategy is to continue doing what the company has been doing, just
doing it better.
Answer Choices
grand
stability
growth
recovery

Question - 23/55
Non equity strategic alliances are ________ formal and demand _________ partner
commitments that do JVs .
Answer Choices
less, fewer
less, greater
more, fewer
more, greater

Question - 24/55
Haldiram, the Indian ready to eat snack must remain engaged in incremental innovation and
extension of its product line because
Answer Choices

ready to eat snacks market is a standard cycle market

ready to eat snacks market is a fast cycle market
ready to eat snacks market is a slow cycle market
none of the above

Question - 25/55
Which of the following is not a reason for acquisitions?
Answer Choices
lower risk compared to developing new products
reshaping the firm's competitive scope
large or extraordinary debt
overcoming entry barriers

Question - 26/55
Pharmaceutical market is
Answer Choices
standard cycle market
slow cycle market
fast cycle market
moderate cycle market

Question - 27/55
Disruptive technologies destroy
Answer Choices

tax evasions
value of an existing technology
scrap & obsolete materials in a operating facility
NPD process

Question - 28/55
likelihood of attack & likelihood of response are features of ________________ aspect of
competitive rivalry.
Answer Choices
outcomes
interfirm rivalry
drivers of competition
competitive analysis

Question - 29/55
Examples of intangible resources are
Answer Choices
production equipment
scientific capabilities, organizational routines
formal reporting structures
distribution centres

Question - 30/55
Tacit collusion exists
Answer Choices
when several firms in an industry indirectly coordinate their production and pricing divisions
by observing each other's competitive actions and responses
when two or more firms negotiate directly with the intention of jointly agreeing about the
amount to produce and the price of the products
when firms use business level strategies to hedge against risk & uncertainty, specially in fast
cycle markets
1&2

Question - 31/55
Agency costs include
Answer Choices
cost of goods sold
incentive costs
monitoring costs
enforcement costs

Question - 32/55
A firm characterized by less than 70% of revenue coming from the dominant business and
only limited links between businesses exhibits
Answer Choices
very high level of unrelated diversification
moderate to high level of diversification
low level of diversification
1&2

Question - 33/55
Value neutral diversification is characheterized by
Answer Choices
uncertain future cash flows
vertical integration
both the above
none of the above

Question - 34/55
Business-Level strategies are generic because
Answer Choices
they can be used across international borders
they can be used by any organisation competing in any industry
they can be used without regard to organisation structure

all the above

Question - 35/55
None of the following elements belong to political/legal segment of general environment,
except
Answer Choices
critical global markets
inflation
labour training laws
trade deficit or surplus

Question - 36/55
The five forces of competition model include all except
Answer Choices
rivalry among competing firms
threat of substitute products and new entrants
bargaining power of buyers and suppliers
none of the above

Question - 37/55
The T series sold its cassettes for less than Rs 20 while market leader HMV was selling for
Rs 50. As a result HMV went out of existence. This event is most likely an example of
Answer Choices
identifying opportunity
generic strength

response to threat
scanning the environment

Question - 38/55
Maruti Udyog Ltd is most likely and example of ________________ based on the fact that
the company has a strong presence in every segment except the ultra luxury segment.
Answer Choices
cost leadership
focused cost leadership
focused differentiation
integrated cost leadership/differentiation strategy

Question - 39/55
Internal CEO succession in a heterogeneous top management team results in
Answer Choices
stable strategy with innovation
stable strategy
ambiguity in team & strategy
strategic change

Question - 40/55
Employees of a firm take a huge loan to purchase all the assets of their employer company.
This process can be called
Answer Choices
MBO
ESOP
LBO
EBO

Question - 41/55
Risks involved in differentiation strategy are all except
Answer Choices
counterfeiting
customers perception of erosion of value in differentiated products
enhanced customer loyalty
imitation

Question - 42/55
A multidivisional strategy and organizational structure is characterized by
Answer Choices
a CEO and a corporate staff with functional line managers
a owner-manager making all major decisions and monitoring all activities
a corporate office and operating divisions
none of the above

Question - 43/55
A firm that generates less than 70 % of its revenue from its dominant business and has
vertical integrations with its other businesses is said to be engaged in___________
Answer Choices
dominant business consolidation
related linked diversification
related constrained diversification
unrelated diversification

Question - 44/55
Unicorn Buildtech Ltd manufactures tyres ( 3% of revenue), garments ( 2 % of revenue) and
constructs buildings ( 95% of revenue). This company is a
Answer Choices

conglomerate of various firms

diversified firm
single business firm
none of the above

Question - 45/55
Which of the following measures characterize a cost leadership strategy?
Answer Choices
formalization is limited so that change is more readily accomplished
marketing is the main function
overall structure is organic
operations is the main function; job roles are highly structured

Question - 46/55
XYZ Limited has businesses in crude oil extraction, pharmaceuticals, textiles and cement
manufacturing. Recently it has been decided that XYZ Ltd would sell its cement business.
This measure can be termed as
Answer Choices
downsizing
downscoping
restructuring
none

Question - 47/55
Shareholders of an acquired firm generally

Answer Choices
get above average return on their shares
get below average return on their shares
get negligible or zero return on their shares
get average return on their shares

Question - 48/55
Globalization has resulted in
Answer Choices
increased loyalty of customers
enhanced quality of goods & services
diminished efficiency
diminishing returns on investments

Question - 49/55
Benefit segmentation is based on
Answer Choices
demographic factors
socioeconomic factors
consumption patterns
perceptual factors

Question - 50/55
Establishing a franchisee in a new market, Gain access to a restricted market , and, Maintain
market stability , are reasons of forming strategic alliance in
Answer Choices

standard cycle market

fast cycle market
slow cycle
any of the markets

Question - 51/55
A firm competing in a single -product market area in a single geographic location may not
need a
Answer Choices
corporate level strategy
business strategy
international strategy
1&3

Question - 52/55
Licensing is an increasingly common form of organizational network, particularly among
____________ firms
Answer Choices
larger
smaller
medium sized
all the above

Question - 53/55
Which of the following is NOT a economic risk ?
Answer Choices
increasing trend of counterfeit products

tax rebates to domestic firms engaged in exports

institutional instability in government
exchange rate

Question - 54/55
Cooperative strategic alliances which are less formal contracts with fewer constraints on the
partners behaviour
Answer Choices
specify how the cooperative strategy is to be monitored & how partner behaviour is to be
controlled.
make it possible to explore how their resources and capabilities can be shared in multiple
value creating ways.
both the above
none of the above

Question - 55/55
In BCG matrix , ''question marks'' are those products/companies
Answer Choices
that have a large share of a fast growing market
that have a small share of a fast growing market
that have a large share of a slow growing market
that have a small share of a slow growing market

Case study

Question Reference
By the time Michael Dell enrolled at the University of Texas in 1983 he was already a

successful entrepreneur. Although his initial academic interest was not business he, launched a
venture selling random access memory (RAM) and disc drivers for IBM PCs out of his dorm
room. When his business grossed $80000 a month the following year , Dell decided to drop
out of college and focus on his new enterprise full time. Dell started selling IBM PC clones
directly to consumers, resulting in 40% drop in prices. However profits declined by 1990 & Dell
responded by reducing inventories drastically. By 1996 Dell started selling its PCs through its
website. In 1999 Dell launched $999 PC. However by 2001 it cut 5000 jobs to cut costs.
Eventually Dell has become truly global with desktop PC's accounting for 50% of revenues. By
2003, Michael Dell owned 12% of the firm.

Question - 1/5
Why was a reduction in Dell's profits observed by 1990's?

Answer Choices
diminished competitive advantage
counterfeiting
recession in economy
all the above

Question - 2/5
Dell resorted to ________ in response to reducing profits

Answer Choices
reducing inventory costs
reducing R&D
e-commerce
all the above

Question - 3/5
Michael Dell started business in

Answer Choices
1980
1983

1990
1999

Question - 5/5
Dell started by selling

Answer Choices
software
hardware
e-commerce
none of the above

Question - 4/5
What type of strategy was adopted by Michael Dell to become global

Answer Choices
Merger
Acquisition
Expansion
Diversification