Assignment C

Question 1
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
d) Make the best products and services
Question 2

According to Porter (1996) in his article what is strategy? strategy is about being:
a) Different
b) Better
c) Bigger
d) Open

minded

Question 3

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

Question 4

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
d) Strategy should be allowed to evolve over time

Question 5

The key activities in the strategic management process are:

a) Analysis,

formulation, review
implementation, review
c) Analysis, formulation, implementation
d) Formulation, analysis, implementation
b) Analysis,

Question 6

Strategy analysis is also referred to as:

a) SWOT

analysis

b) Strategy

diagnosis
c) Rational analysis
d) Situation analysis

Question 7

Strategy formulation takes place at two levels. These are:

a) Conscious

and sub-conscious
Implicit and explicit
c) Corporate and business
d) Business and operational
b)

Question 8

The goals of an organization derive from its:

a) Strategy
b) Purpose
c) Objectives
d) Mission

Question 9

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

Question 10

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

Question 11

Competitive strategy is also known as:

a) Competitive

positioning
b) Corporate level strategy
c) Industry strategy
d) Business level strategy

Question 12

In the SWOT analysis, the 'strengths' and 'weaknesses' part refers to:
a) What

the organization does internally in relation to competitors

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
b) The

Question 13

A method for imagining alternative, possible futures is known as:

a) Scenario

imagining
composition
c) Scenario planning
d) Scenario envisioning
b) Scenario

Question 14

The general environment is also referred to as the:

a)

Micro-environment

b) Macro-environment
c) Competitive
d) External

environment
environment

Question 15

The general environment can be broken down using a PEST analysis. Conventionally the
PEST analysis consists of:
a) Political,

economic, scientific, technological

environmental, social, technological
c) Political, economic, social, technical
d) Political, economic, social, technological
b) Political,

Question 16

Competitive rivalry will be high if:

a) The

industry is fragmented
are a few strong players in the industry
c) There is a high degree of differentiation
d) The industry is in its infancy
b) There

Question 17

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

Question 18

Buyer power is high if:

a) Differentiation

is low
costs are low
c) They have little information
d) The buyer requires a high quality product for their own production
b) Switching

Question 19

In Porter's Five Forces, the 'threat of new entrants' relates to:

a) Barriers

to entry

b) Substitutes
c) Switching
d) Buyer

costs
power

Question 20

The value chain is subdivided into two main headings. These are primary activities and:
Peripheral activities
b) Support activities
c) Secondary activities
d) Outsourced activities
a)

Question 21

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

or buy' decision
c) A 'do-it-yourself' decision
d) A 'vertical-integration' decision
b) A 'make

Question 22

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

Question 23

A market is defined by:

a) Demand

conditions and customers

conditions and suppliers
c) Supply conditions and production technology
d) Supply conditions and customers
b) Demand

Question 24

Porter's generic strategies are:

a) Low

price, differentiation, focus

leadership, differentiation, cost focus, focus differentiation
c) Price leadership, differentiation, focus
d) Low cost, differentiation, focus differentiation
b) Cost

Question 25

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

Question 25

In Porter's Generic Strategies model, a focus strategy involves:

a) Selling

a limited range of products

to a narrow customer segment
c) Selling to one region only
d) Selling simple products that are cheap to produce
b) Selling

Question 26

A differentiation strategy offers:

a) A broad

segment something unique

segment something unique
c) A broad segment something more expensive
d) A narrow segment something more expensive
b) A narrow

Question 27

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

Question 28

In Ansoff's matrix, 'product development' involves going in the direction of:

a) Present

products to present markets

products to new markets
c) New products to present markets
d) New products to new markets
b) Present

Question 29

Horizontal integration is where:

a) A firm

takes over a supplier

takes over a distributor
c) A firm takes over a competitor
d) A firm takes over a manufacturer
b) A firm

Question 30

reduces uncertainty
a) Negotiating
b) Planning
c) Organizing
d) Leading

Question 31

are those plans that are extended beyond three years

a) Short-term

plans
b) Long-term plans
c) Specific plan
d) Strategic plan

Question 32

Value Chain is an effective tool for..................................

a) External

Analysis
b) Internal Analysis
c) Self analysis
d) Systematic analysis

Question 33

The preparation of ETOP involves:

a) Dividing

environment into sectors, sub factors, analyze impact of each sector & sub factor on
organization, description of impact of each sub factor into a statement which is positive, neutral
or negative.
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 & sub
factor on organization
b)

Question 34

Make or buy decision is related with ________strategy

a) Vertical

(forward) integration

b)

Vertical (backward) integration

c)

Horizontal integration

c)

Diversification

Question 35

Strategic management is mainly the responsibility of

a) Top

Management

b)

Senior Management

c)

General Management

c)

Middle Management

Question 36

A hardware manufacture enters into software is an example of ________integration

a) Vertical

(forward) integration

b)

Vertical (backward) integration

c)

Horizontal integration

c)

Diversification

Question 37

True/False
Question: Scheduling is a part of strategic management.
Correct Answer
a)

False

b) True

Question 38

Factors to be considered in political- legal environmental scanning are

govt. policies, stability, philosophy of govt. , legal system, implementation, infrastructure ,
import-export
b) govt. policies, stability, philosophy of govt. , legal system, implementation, infrastructure
a)

Question 39

True/False
Micro environment is the internal environment of a company.
Correct Answer
a)

False

b) True

Question 40

Perspective which does not belong to four Balanced Scorecard perspectives is:
a) The

Business Process Perspective

b)

The Customer Perspective

c)

The Learning & Growth Perspective

d)

The Business Reengineering Perspective