SM 1

LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Business ethics is how personal norms do not apply to activities
& goals of a commercial firm.
Correct Answer False
Your Answer False
True/False
Question Macro environment has got immediate impact on business.
Your Answer False
Select The Blank

Question ________ should have the ability to develop a visionto see
patterns into the future.
Correct Answer Leaders
Your Answer Leaders
True/False
Question The environment of any organization is "the aggregate of all
conditions, events and influences that surround and affect it."
Correct Answer True
Your Answer True
Select The Blank

Question ETOP stands for ________.
Correct Answer environmental threat & opportunity profile
Your Answer environmental threat & opportunity profile
True/False
Question Numerator may bring short-term results, but there may be
serious long-term sacrifices.
Your Answer True
Multiple Choice Single Answer

Question CAP related to internal appraisal of firm stands for
Correct Answer competitive advantage profile
Your Answer competitive advantage profile

Ruchi LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Your Answer False

Question These people are charged with the responsibility of continuous
screening of performance?
Correct Answer Audit committee
Your Answer Audit committee
Multiple Choice Multiple Answer

Question Factors to be considered in political- legal environmental
scanning are
Correct Answer govt. policies, stability, philosophy of govt. , legal system,
implementation, infrastructure , import-export
Your Answer govt. policies, stability, philosophy of govt. , legal system,
implementation, infrastructure

Question It refers to formal and informal rules, regulations and
procedures that complements the company structure
Correct Answer Systems
Your Answer Systems
True/False
Question Micro environment is the internal environment of a company.
Your Answer True
Select The Blank

Question ________ identifies the impact of any change on performance
Correct Answer Statistical quality control
Your Answer Statistical quality control
True/False
Question Focused company is generally protected from competition.
Correct Answer True

Vinit LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Question The aim in stability strategies is-
Correct Answer move slowly & surely
Your Answer move slowly & surely
True/False
Question Changes in company structure also necessitates changes in the
systems in various degrees
Correct Answer True
Your Answer True

Question Strategic management is mainly the responsibility of
Correct Answer Top Management
Your Answer Top Management
True/False
Question All policies are 'statements'
Your Answer True

Question Secondary sources of information are
Correct Answer newspapers, magazines, journals etc.
Your Answer research, surveys, interviews etc.

Question market research is conducted by
Correct Answer by employees , by research agencies , by consultants
Your Answer by employees , by research agencies , by consultants
True/False
Your Answer False

True/False
Question Staffing function applies to all company levels irrespective of
levels of hierarchy
Correct Answer True
Your Answer True

Question The reasons for acquisition are
Correct Answer Increased market power , Increased diversification , Increased

speed to market
Your Answer Increased diversification , Increased speed to market , Increased
market power

Question Principles to manage strategic alliances are
Correct Answer clarity in strategy & responsibilities , blending cultures , provide

for an exit strategy
Your Answer clarity in strategy & responsibilities , blending cultures , provide

Question Merger takes place
Correct Answer between a buyer and a seller , to avail tax concessions , to

increase growth rates
Your Answer between a buyer and a seller , to avail tax concessions , to
Select The Blank

Question Titan going into setting their won retail outlets- this is ________
integration.
Correct Answer vertical ( forward )
Your Answer vertical ( forward )
Select The Blank

Question Delay in ________ measurement defeats the purpose of
evaluation.
Correct Answer Time
Your Answer Goals
Select The Blank

Question Bajaj started manufacturing of sunny is an example of
________.
Correct Answer concentration strategy
True/False
Question Changes in company structure also necessitates changes in the
systems in various degrees
Correct Answer True
Your Answer False

Question Different kinds of information systems are
Correct Answer Operational level system , Knowledge level system ,

Management level system
Your Answer Knowledge level system , Management level system ,
Operational level system
Select The Blank

Question ________cost accounting measures the cost of producing and
ignores the cost of non-producing
Correct Answer Traditional
Your Answer Traditional

Question It is the most important feature in the implementation of strategic
management
Correct Answer leadership
Your Answer leadership

Question The discipline which deals with what is good and bad and which
moral obligation is
Correct Answer Ethics
Your Answer Ethics

Question Strategic management is concerned with
Correct Answer long- range planning
Your Answer long- range planning

Question Horizontal integration is concerned with
Correct Answer product lines
Your Answer product lines

Question The decisions which are relate to daily decisions like leave
records etc. which are mundane in nature & highly routined &
can be done at a junior level are
Correct Answer operational decisions
Your Answer operational decisions


Question Mass media includes
Correct Answer radio, TV, internet etc.
Your Answer customer & dealers

Question What is Statistical Quality Control(SQC)
Correct Answer Identifies quality and productivity from a production process ,

Identifies impact of any change on performance , Instantly spots
malfunctions and show where they occur
Your Answer Identifies quality and productivity from a production process ,
Identifies impact of any change on performance , Integrates
manufacturing with business strategy
Select The Blank

Select The Blank


Question The various areas covered by social responsibility are
Correct Answer Inner Circle , Intermediate circle , Outer Circle

SM assgn:Harikrishnan J

Your Answer competitive advantage profile
Match The Following

Question Correct Answer Your Answer
Comparative analysis is historical analysis historical analysis
Benchmarking is competitive analysis competitive analysis
Michael Hammer & James Reengineering Reengineering

Chapy
GDP stands for gross domestic product gross domestic product
Select The Blank

Question ________ relationships are effective in communicating complex
information
Correct Answer Personal
Your Answer Personal
Select The Blank

Your Answer Leaders

Question The various models of social responsibility are
Correct Answer Austere Model , Vendors Model , Civic Model
Your Answer Austere Model , Vendors Model , Civic Model

Question A network of facilities and distribution that performs the functions
of procurement of materials trasforming into intermediate and
finished products & distributing them to customers is
Correct Answer Supply chains
Your Answer Supply chains
True/False
Question Style of a company are the patterns of actions taken by members
of top management over a period of time
Correct Answer True
Your Answer True
Select The Blank

evaluation.
Correct Answer Time
Your Answer Time

Question At this level , the effort is directed at assessing the consistency of
strategy with the environment
Correct Answer Strategic evaluation
Your Answer Strategic evaluation

Question Critical resources in the emerging information age are
Correct Answer Expertise , Information , Intelligence
Your Answer Information , Expertise , Intelligence
Select The Blank

Question Value chain analysis is an effective tool for ________.
Correct Answer internal analysis
Your Answer internal analysis

Question Knowledge of the relationships between choices, environment &
outcomes is
Correct Answer familiarity
Your Answer familiarity

Question The Hallmarks for self-regulation are
Correct Answer Trust & fairness , Changed Management , Integrity &
thoughtfulness
Your Answer Trust & fairness , Changed Management , Integrity &
thoughtfulness

Question Three important managerial qualities required for the effective
strategic management
Correct Answer Conceptual, human & intellectual skills , Decision making ability ,
Vision
Your Answer Conceptual, human & intellectual skills , Decision making ability ,
Vision
True/False
Question Standards of performance act as the benchmark against which the
actual performance is compared.
Correct Answer True
Your Answer True
Select The Blank


Question Criteria for making an evaluation are
Correct Answer Consistency with goals , Consistency with environment , Money
Your Answer Consistency with goals , Consistency with environment , Money

Question It is the process of selecting people for company positions and
developing skills and abilities for assignments in the company
Correct Answer Staffing
Your Answer Staffing
Select The Blank

Question Japan's major productivity gains are the results of social changes
brought about by ________

True/False
Question Scheduling is a part of strategic management.
Your Answer True
True/False
Question Budgets are plans expressed in numerical terms usually in financial
terms
Correct Answer True
Your Answer True

moral obligation is
Your Answer Ethics
Match The Following

Fit SWOT analysis SWOT analysis
Vision what a company wishes to what a company wishes to

become or aspires to be. become or aspires to be.
mission what the company is and what the company is and
why it exists. why it exists.
BHAG big headed audacious goals big headed audacious goals

Question These are moves that will pay off irrespective of what happens in
the future
Correct Answer No-regret moves
Your Answer No-regret moves

Question They are ultimately responsible for all the administrative aspects of
strategic evaluation and control
Correct Answer Chief executive
Your Answer Chief executive

Question In SWOT , S stands for
Correct Answer favorable condition in the organization's environment.
Your Answer potentials and competencies of organization.
Select The Blank

Question Cadbury's add in which Amitabh Bachchan clarifies about the
safety of the product (dairy milk) is an example of ________
defense.
Correct Answer counteroffensive
Your Answer counteroffensive
Select The Blank

Question A cycling accessory firm strive to become 'the nike of the cycling
industry' is ________category of goal.
Correct Answer role model
Your Answer role model
Select The Blank


True/False
Question Timing of measurement before hand serves the purpose of
evaluation.
Your Answer True

Question How does 'structure' reduce external uncertainity arising out of
human behaviour
Correct Answer Research and planning , Forecasting
Your Answer Division of labour , Departmentalisation

Question These people are primarily responsible for operating control based
on budgeting, reporting and financial analysis
Correct Answer Company secretary , Auditor , Financial controller
Your Answer Company secretary , Auditor , Financial controller

Question It is the most important feature in the implementation of strategic
management
Correct Answer leadership
Your Answer leadership
Select The Blank

Question ________ is a deep understanding of ones emotions, strengths,
weaknesses, needs, drives & their effects on self and others.
Correct Answer Self-awareness
Your Answer Emotional quotient


speed to market
Your Answer Increased market power , Increased diversification , Increased
speed to market
Select The Blank

Question Brush your teeth twice a day is an example of expanding the total
market by________.
Correct Answer more usage
Your Answer more usage

Question An unhealthy portfolio has
Correct Answer More dogs , Few stars
Your Answer More dogs , Few stars
True/False
Correct Answer True
Your Answer True
True/False
Question Labour satisfaction may result in unethical behaviour as anger.
Your Answer False

Question Measures to take corrective action
Correct Answer Checking performance , Reformulate strategies , Standard check
Your Answer Checking performance , Reformulate strategies , Standard check

Question The culture of a company is conveyed through
Correct Answer Rites , Myths , Rituals
Your Answer Rites , Myths , Rituals
True/False
Your Answer False

Question Techniques used in environmental appraisal are
Correct Answer single-variable extrapolation/multivariable interaction analysis ,

structured/ unstructured expert/inexpert opinion , Dynamic modes
and mapping
Your Answer single-variable extrapolation/multivariable interaction analysis ,
structured/ unstructured expert/inexpert opinion , Dynamic modes
and mapping

Question Financial environment is concerned with
Correct Answer demand & supply of money, capital markets

Your Answer demand & supply of money, capital markets
True/False
Correct Answer True
Your Answer True
True/False
Question Adapter duplicate the leader and claim to be similar or even the
same.
Your Answer False

True/False
Question According to Michael Porter, the core of efficiency
management is strategy.
Correct Answer True
Your Answer True


Question Strategic management deals with
Correct Answer Business process
Your Answer Business process


Your Answer Operational level system , Knowledge level system ,

Question At this strategic level, the effort is directed at assessing how
well the organisation is pursuing a given strategy
Correct Answer Operational evaluation
Select The Blank

Question Control should involve________ amount of information.

Question The preparation of ETOP involves
Correct Answer dividing environment into sectors , sub factors , analyze impact of
each sector & sub factor on organization , description of impact of each subfactor into a
statement which is positive, neutral or negative.
Your Answer dividing environment into sectors , sub factors , analyze impact of each
sector & sub factor on organization , impact of organization on each sector
Select The Blank

Question Cadbury's add in which Amitabh Bachchan clarifies about the safety of the
product (dairy milk) is an example of ________ defense.
Correct Answer counteroffensive
Your Answer counteroffensive

Question It concentrates on organisation design and work flow
Correct Answer Flotilla
Your Answer Cost Accounting

Question Factors to be considered in political- legal environmental scanning are
Your Answer legal system, implementation, infrastructure , import-export , internal
inadequacies
True/False
Question Analysis of variances leads to a plan for corrective action
Correct Answer True
Your Answer True
Match The Following

Executive summary Synopsis of marketing plan Marketing goals
Line Managers Responsibility Ensuring Implementation of marketing actions Taking

decisions regarding efficient and effective allocation of resources
Middle- level Managers Ensuring proper tactical changes Ensuring proper tactical
changes
Top level Executives Taking decisions regarding efficient and effective allocation of
resources customized marketing

Question Factors encouraging joint ventures are
Correct Answer uneconomical separate existence , risk of business gets shared ,
sharing competence of each other
Your Answer uneconomical separate existence , risk of business gets shared , sharing
competence of each other

Question The preparation of ETOP involves
Correct Answer dividing environment into sectors , sub factors , analyze impact of
each sector & sub factor on organization , description of impact of each subfactor into a
statement which is positive, neutral or negative.
Your Answer dividing environment into sectors , sub factors , analyze impact of each
sector & sub factor on organization , impact of organization on each sector
Select The Blank

Correct Answer Minimum
Your Answer Informal

Question Factors to be considered while deciding candidates for divestiture are
Correct Answer taxes , availability of buyers , market reaction
Your Answer taxes , availability of buyers , market reaction
True/False
Your Answer True
Select The Blank

Question ________ is the drive to achieve beyond one's expectations
Correct Answer Motivation
Your Answer Orientation

Question Contractual entry modes are
Correct Answer licensing / franchising
Your Answer licensing / franchising

Question Empower people through great software anytime , any place, on any device'-
Microsoft
Correct Answer vision
Your Answer mission
Select The Blank

Question Factors leading to personnel capability are________.
Correct Answer IR, OB
Your Answer PR

Your Answer Lower Management

Question Concentric diversification means
Correct Answer new activity related to existing business
Your Answer entirely new business

Your Answer Employee grievances

Question The decisions which are relate to daily decisions like leave records etc. which
are mundane in nature & highly routined & can be done at a junior level are
Your Answer conventional decisions
Select The Blank

Question A cycling accessory firm strive to become 'the nike of the cycling industry' is
________category of goal.
Your Answer qualitative

Question Strategic intent
Correct Answer obsession with an organization , ambitions in proportion to their
existing resources & capabilities , what the organization strives for.
Your Answer ambitions in proportion to their existing resources & capabilities , what
the organization strives for. , concept of optimization
Select The Blank

Question ________ should have the ability to develop a visionto see patterns into the
future.
Your Answer Inspectors
Select The Blank

Question Like roots of a tree, ________of organization is hidden from direct view.
Correct Answer core competence
Your Answer mission
Select The Blank

Question ________ relationships are effective in communicating complex information
Correct Answer Personal
Your Answer Formal

Question It is based on a trigger mechanism for rapid response and immediate
reassessment of strategy in the light of sudden and unexpected events
Correct Answer Emergency alert contriol
Your Answer Emergency alert contriol

Question Performance is affected by
Correct Answer Distorted resource allocation , Inappropriate structure , Wrong
motivational styles
Your Answer Distorted resource allocation , Inappropriate structure , Wrong
motivational styles
True/False
Question Changes in company structure also necessitates changes in the systems in
various degrees
Correct Answer True
Your Answer True

Question An approach that strives to follow ethical principles and percepts is
Correct Answer Moral management
Your Answer Moral management

Question Limitations of Traditional cost accounting are
Correct Answer Assumes factory as an isolated entity , It measures only the cost of
producing
Your Answer Assumes factory as an isolated entity , It uses time as a unit of measure ,
Savings are in terms of time saved
True/False
Question The environment of any organization is "the aggregate of all conditions,
events and influences that surround and affect it."
Correct Answer True
Your Answer True
Select The Blank

Question GATT stands for ________.
Correct Answer general agreement on trade & tariff
Your Answer general agreement on trade & tariff
True/False
Question Standards of performance act as the benchmark against which the actual
performance is compared.
Correct Answer True
Your Answer True

Question supplier & technological environment is concerned with
Correct Answer quality & no. of suppliers , logistics , raw material , trends and rate of
change of technology
Your Answer quality & no. of suppliers , logistics , raw material , impact of
organization on each sector
True/False
Question The actual performance deviates positively over the budgeted performanve.
This is an indication of superior performance
Correct Answer True
Your Answer True
True/False
Question Labour satisfaction may result in unethical behaviour as anger.
Your Answer True
Match The Following

Premise control Identifies key assumptions Identifies key assumptions
Emergency alert control evaluation Type of strategic control Effectiveness of strategy
Strategic evaluation Effectiveness of strategy Control
Rely on short term assessment Barrier in evaluation Barrier in evaluation

True/False
Question Environmental competitiveness tends to encourage ethical behaviour.
Your Answer True
True/False
Question Three C's affecting today's companies are customer, competition & change
Correct Answer True
Your Answer False

Question These are moves that will pay off irrespective of what happens in the future
Correct Answer No-regret moves
Your Answer Options

Question These people are charged with the responsibility of continuous screening of
performance?
Correct Answer Audit committee
Your Answer Audit committee

Question T in SWOT, refers to
Correct Answer unfavorable conditions in external environment.
Your Answer internal inadequacies
Select The Blank

Question Delay in ________ measurement defeats the purpose of evaluation.
Correct Answer Time
Your Answer Plans

Question It indicates the degree of differentiation
Correct Answer Structure
Your Answer Style

Question Factors determining HRP (Human Resource Planning )
Correct Answer Type & Strategy of organisation , Environmental uncertainties , Type
& quality of information
Your Answer Type & Strategy of organisation , Type & quality of information , Nature
of the manager

Question A Company's strategy
Correct Answer Vital ingredient in determinig it's future , Yields growth, profits etc ,
may result in disaster if inappropriate
Your Answer Vital ingredient in determinig it's future , Yields growth, profits etc ,
Only factor determing it's success or failure

Correct Answer clarity in strategy & responsibilities , blending cultures , provide for
an exit strategy
Your Answer clarity in strategy & responsibilities , blending cultures , provide for an
exit strategy

Question W in SWOT stands for
Correct Answer inherent inadequacy of organization
Your Answer inherent inadequacy of organization
True/False
Question Getting new users is a position defense strategy.
Your Answer True

Your Answer Finance department
Select The Blank

Question Japan's major productivity gains are the results of social changes brought
about by ________
Your Answer Alien Territory Business

Question Harveststrategy is used for
Correct Answer Dogs , Question marks
Your Answer Dogs , Question marks , Stars
True/False
Correct Answer True
Your Answer True
Question Business is rated on which dimensions
Correct Answer Market attractiveness , Business strength
Your Answer Business strength , Profit margin , Competition level
Select The Blank

Select The Blank

Question ________ support managers by keeping track of the elementary activities &
transactions of the organization such as sales, receipts, raw materials etc.
Correct Answer Operational level systems
Your Answer Management
True/False
Question Arranging training program on productivity is a strategic decision.
Your Answer True
Select The Blank

Your Answer SWOT analysis

Question Critical resources in the emerging information age are
Correct Answer Information , Expertise , Intelligence
Your Answer Capital , Information , Expertise

Question Macro environment
Correct Answer Political- legal , socio-cultural , economic-demographic
Your Answer Political- legal , socio-cultural , economic-demographic

Question It is used extensively in organisation and is concerned with action or
performance
Correct Answer Operational control
Your Answer Premise control
Match The Following

The Personnel System Factor leading to Personnel Capability Factor leading to Personnel
Capability
4 Ps are Product, Price, Place, Promotion Product, Price, Place, Process
Sources of funds Factor leading to financial capability Factor leading to financial

capability
The retrieval and usage of information Factor leading to Information Management

Capability Factor leading to Information Management Capability

Question It refers to the relatively more durable company arrangements and
relationships
Your Answer Structure
Select The Blank

Your Answer PRM
True/False
Question Reciprocal responsibility means equal blames and credit.
Your Answer True
Match The Following

Crisis Management leads to organisational learning First step of signal detection
Milestone review Another method of implementation control Chacking of performance
Long and short term controls Balanced approach to evaluation Another method of
implementation control
Variance Actual and budgeted performance Actual and budgeted performance
True/False
Your Answer True
Question These are critical situations that occur unexpectedly and threaten the course
of a firm's strategy
Correct Answer Crisis
Your Answer Crisis

Question The major issues of appraisal system are
Correct Answer Factors of appraisal , Relevance of apprasial , Procedure of appraisal
Your Answer Factors of appraisal , Relevance of apprasial , Procedure of appraisal

Question The tool used for decision making in ' The alternate futures ' scenario is
Correct Answer Option Valuation model
Your Answer Scenario planning
True/False
Question Style of a company are the patterns of actions taken by members of top
management over a period of time
Correct Answer True
Your Answer True
Select The Blank

Question Modern Accounting uses ________ as a unit of measure
Correct Answer Time
Your Answer Time

Question A pictorial depiction of various outcomes of a decision is
Correct Answer decision tree
Your Answer decision tree
True/False
Your Answer False

Question Competenncy models reveal three types of capabilities
Correct Answer Technical skills , Cognitive skills , Emotional Intelligence Quotient
Your Answer Technical skills , Emotional Intelligence Quotient , Integrity

Question At this strategic level, the effort is directed at assessing how well the
organisation is pursuing a given strategy
True/False
Question Timing of measurement before hand serves the purpose of evaluation.
Your Answer True

Question The control process requires the following types of information
Correct Answer Planned performance , Variances , Reasons
Your Answer Planned performance , Variances , Motivation
Select The Blank

Question ________cost accounting measures the cost of producing and ignores the
cost of non-producing
Your Answer Modern

Identifies impact of any change on performance , Instantly spots malfunctions and show
where they occur
Your Answer Identifies quality and productivity from a production process , Identifies
impact of any change on performance , Instantly spots malfunctions and show where they
occur

Question It is the process of selecting people for company positions and developing
skills and abilities for assignments in the company
Correct Answer Staffing
Your Answer Staffing

Question They have time based utility
Correct Answer Goals , Resources
Your Answer Goals , Employess , Resources
True/False
Question Change in company's strategy gives rise to problems necessitating a new
structure to be made
Correct Answer True
Your Answer True

Question The various models of social responsibility are
Correct Answer Austere Model , Vendors Model , Civic Model
Your Answer Austere Model , Vendors Model , Civic Model

Question The tool used for future decision making in 'True Ambiguity' scenario is
Correct Answer Non-linear dynamic model
Your Answer Technology forecasting

Question Secondary sources of information are
Correct Answer newspapers, magazines, journals etc.
Your Answer newspapers, magazines, journals etc.
Select The Blank

Question ________ is a deep understanding of ones emotions, strengths, weaknesses,
needs, drives & their effects on self and others.
Correct Answer Self-awareness
Your Answer Emotional quotient
True/False
Question Micro environment is the internal environment of a company.
Your Answer False

Question The aim in stability strategies is-
Correct Answer move slowly & surely
Your Answer move slowly & surely

Your Answer central assessment programme
Select The Blank

Question Like roots of a tree, ________of organization is hidden from direct view.
Correct Answer core competence
Your Answer mission
Select The Blank

Your Answer Systems approach

Correct Answer Consistency with goals , Consistency with environment , Money
Your Answer Consistency with goals , Consistency with environment , Knowledge

Correct Answer Trust & fairness , Changed Management , Integrity & thoughtfulness
Your Answer Trust & fairness , Changed Management , Integrity & thoughtfulness
Select The Blank

Question Displacing competitor is ________ category of goal.
Correct Answer common enemy
Your Answer dependent
True/False
Correct Answer True
Your Answer True

Your Answer quality & no. of suppliers , logistics , raw material , impact of
organization on each sector
Select The Blank

Your Answer PRM
True/False
Question Counterfeiter copy but with a difference that can be seen.
Your Answer False
Select The Blank

Select The Blank

Question Bajaj started manufacturing of sunny is an example of ________.
Your Answer concentration strategy

Question An approach that strives to follow ethical principles and percepts is
Correct Answer Moral management

Question Three important managerial qualities required for the effective strategic
management
Correct Answer Conceptual, human & intellectual skills , Decision making ability ,
Vision
Your Answer Conceptual, human & intellectual skills , Decision making ability ,
Vision

structured/ unstructured expert/inexpert opinion , Dynamic modes and mapping
Your Answer simulation , Dynamic modes and mapping

Question These following factors determine the desire of risk
Correct Answer Strategies , Resources
Your Answer Resources , Competence
Select The Blank

Question ________ is seen as an integral process that converts materials into goods
True/False
Question Divestiture is opposed to diversification.
Your Answer True
Select The Blank

Question Modern Accounting uses ________ as a unit of measure
Correct Answer Time
Your Answer Possession

Question Denominator management
Correct Answer cost reduction
Your Answer maintain discipline
True/False
Question Changes in company structure also necessitates changes in the systems in
various degrees
Correct Answer True
Your Answer True

Question Organizational models are
Correct Answer multinational model , international model , global organizational
model
Your Answer multinational model , international model

Select The Blank

Question ________ should have the ability to develop a visionto see patterns into the
future.
Your Answer Inspectors
True/False
Your Answer True

Question How does 'structure' reduce external uncertainity arising out of human
behaviour
Correct Answer Research and planning , Forecasting
Your Answer Research and planning , Forecasting
Select The Blank

Your Answer SWOT analysis
True/False
Your Answer True

Question Attack strategies are
Correct Answer frontal attack , flank attack , encirclement attack
Your Answer frontal attack , flank attack , encirclement attack
True/False
Question Style of a company are the patterns of actions taken by members of top
management over a period of time
Correct Answer True
Your Answer True
Select The Blank

Question Titan going into setting their won retail outlets- this is ________ integration.
Your Answer vertical ( backward )

Question They enact the formal role of reviewing and screening executive decisions in
the light of their environmental, business and organisational implications
Correct Answer Board of director
Your Answer Chief executive

Question It enables the strategists to take corrective action at the right time
Correct Answer Premise control
Your Answer Premise control
Select The Blank

Question Module of Flotilla strikes an optimum balance of ________ and flexibility
Correct Answer Standardisation
Your Answer Strengths
Match The Following

Fit SWOT analysis what the company is and why it exists.
Vision what a company wishes to become or aspires to be. big headed audacious goals
mission what the company is and why it exists. first intensive target
BHAG big headed audacious goals SWOT analysis
True/False
Question The key principle of moral management is "Can we make money with this
action decision or behaviour"?
Your Answer True

Question Contractual entry modes are
Correct Answer licensing / franchising
Your Answer licensing / franchising

Question Factors determining HRP (Human Resource Planning )
Correct Answer Type & Strategy of organisation , Environmental uncertainties , Type
& quality of information
Your Answer Type & Strategy of organisation , Environmental uncertainties , Type &
quality of information

Question The process of forecasting an organization's future demands for and supply
of right type of people in right number is
Correct Answer Man-power planning
Your Answer Man-power planning
Select The Blank

Question ________cost accounting measures the cost of producing and ignores the
cost of non-producing
Match The Following

7-S Framework Skills, super ordinate goals, structure Fit well but low opportunities
Alternate futures Option valuation model Acquiring human resources
Staffing Acquiring human resources Difference between desired and projected

performance
Gap analysis Difference between desired and projected performance Skills, super
ordinate goals, structure

Question Retrenchment strategy means
Correct Answer contraction of business activities
Your Answer stretch of business activities
Question Core purpose
Correct Answer mission
Your Answer mission

Question How does 'structure' reduce internal uncertainity arising out of human
behaviour
Correct Answer Control mechanism , Departmentalisation
Your Answer Forecasting

Question Factors to be considered in political- legal environmental scanning are
implementation, infrastructure
True/False
Question Adapter duplicate the leader and claim to be similar or even the same.
Your Answer True

Correct Answer Increased market power , Increased diversification , Increased speed to
market
Your Answer Increased market power , Increased diversification

Your Answer Planned performance
Select The Blank

Question A cycling accessory firm strive to become 'the nike of the cycling industry' is
________category of goal.
Your Answer qualitative

Correct Answer Vital ingredient in determinig it's future , Yields growth, profits etc ,
Your Answer Vital ingredient in determinig it's future , Yields growth, profits etc ,
Correct Answer by employees , by research agencies , by consultants
Your Answer by employees , by research agencies
True/False
Correct Answer True
Your Answer False
Select The Blank

Question In a ________ a decentralized structure is achieved & harmonized at the
plant & area levels.
Correct Answer Delegation
Your Answer Suspension

True/False
Question According to Michael Porter, the core of efficiency
management is strategy.
Correct Answer True
Your Answer True




Your Answer Operational level system , Knowledge level system ,

Question At this strategic level, the effort is directed at assessing how
well the organisation is pursuing a given strategy
Select The Blank

ASSIGNMENT
Q.1 Explain the evolution, role and importance of business policy and strategic
management. What would be the role of manager in this age?
Answer:
Introduction: The term strategic management has been traditionally used. New title such as
business policy, corporate strategy and policy, corporate policies is essentially and extensively
used which means more less the same concept.
Evolution of Strategic Management:
1) In early 1920’s and 1930’s the managers used day-to-day planning methods to perform
any task.
2) To anticipate the future, they tried using tools like preparation of budgets and control
systems like capital budgeting and management by objectives.
3) The techniques were unable to emphasize the future adequately.
4) The next step was they tried using long range planning which was replaced by strategic
planning and later by strategic management.
5) In mid 1930’s, according to the nature of business the planning was done during Adhoc
policy making.
6) As many businesses had just started operations and were mostly in a single product line,
there arose a need for policy making.
7) As companies grew they expanded their products and they catered to more customer and
which in turn increased their geographical coverage.
8) The expansion brought in complexity and lot of changes in the external environment.
Hence there was a need to integrate functional areas.
9) This integration was brought about by framing policies to guide managerial action.
10) Policies helped to have pre-defined set of actions, which helped people to make decision.
11) Policymaking was the owner’s prime responsibility.
12) Due to increase in the environment changes, in 1930’s and 40’s policy formulation
replaced ad-hoc policy making, which led to emphasis shifted to the integration of
functional areas in this rapidly changing environment.
13) Especially after II World War there was more complexity and significant changes in the
environment.
14) Competition increased with many companies entering into the market.
15) Policy making and functional area integration was not sufficient for the complex needs of
a business.
ROLE OF STRATEGIC MANAGEMENT: -
1) Due to increase in the competition, in 1960’s there was a demand for critical look at the
bane corrupt of business.
2) The environment played an important role in the business.
3) The relationship of business with the environment lead to the concept of strategy.
4) In early sixties, this helped the management to manage between the business and the
environment.
5) In early eighties, as many companies were globalised which lead to the competition of
the rivals access the world.
6) Japanese companies along with other Asian companies unleashed a force across the
world and posed a threat for the US and European companies, which led to the current
thinking.
7) Strategic management focused on 2 aspects: -
• Strategic process of business.

• Responsibilities of strategic management.
8) Unlike others, in this phase the role of senior management is vital and of
Utmost importance. Their role was important in decision-making like -
a) Whether a company promotes a joint venture/new decision.

b) Decides to go for an expansion.
c) Takes other important actions.
9) All these actions and decision had a long-term impact on the company and its future
operations, which was the result of senior management decision-making.
10) Strategic management is both about the present and future course of action, which was
the prime responsibility senior management.
Strategic Management is
I. The study of function and responsibilities of senior management

II. A crucial problem that affects success in total enterprise.
III. The decision that determine the direction of the organization and shape of its future
IV. Identity and molding of its character
V. Mobilization and their allocation of the resources.
Hence as managers had variety of choices, decisions were based on the circumstances, which
would take the company in specified directions.
IMPORTANCE AND ROLE OF MANAGERS IN STRATEGIC MANAGEMENT: -
I. Strategic management integrates the knowledge and experience gained in various

functional areas.
II. It helps to understand and make sense of complex interaction in various areas of
management.
III. It helps in understanding how policies are formulated and in creating appreciation of
complexities of environment that the senior management faces in policy formulation.
IV. Managers need to begin by gaining an understanding of the business environment and to
in control.
Here are few steps Indian managers need to do.

a) They should know to manage and understand information technology, which is
changing the face of business.
b) As public and common investors own and more companies managers need to
acquire skills to maximize shareholder value.
c) To have/take a strategic perspective, managers should foresee the future and
track changes in customer expectation. Intuitive, logic reasoning is required for proper
decision-making.
d) Successful companies depend on people. For people, management managers

should create capability for imitating and manage things through leadership and should
possess qualities like patience, commitment and perseverance.
e) Managers need to provide speed responses to environmental changes through
informational systems and organizational process.
f) As corporate are becoming more integrated with the public life, corporate
governance is becoming important which manager may have to practice.
g) Managers should learn to deal with confused and complex situations. They
should know to deal with global managers, business protocols and market conditions.
h) In complex and certain situations, managers should have the courage in decision-
making to make unconventional decisions.
i) Managers should possess high ethical standards in business and focus on social
responsibility.
Conclusion
Thus we can say the purpose of strategic management is manifold. To be successful in

the business one should possess/have holistic approach and should know to integrate the
knowledge gained in various functional area of management. By having generalist approach, a
senior manager can understand the complex inter linkages operating within the organization and
should have systematic approach in decision-making in relation with the changes which takes
place in the environment.
Q.2. What is strategy? At what levels is it formulated?
Answer:
INTRODUCTION: -
To understand the process of strategic management the concept should be understood and
controlled. The term strategy is derived from the Greek word “STRATEGOS”  Generalship.
The actual direction of military force, as distinct from governing its deployment. The word
strategy means “ THE ART OF GENERAL ”. Based on the studies and views by various experts
and management gurus Strategy in business has taken various connotations.
Definition:
William Glueck, a Management Professor defined it as “A unified, comprehensive and integrated
plan designed to assure that the basic objectives of the enterprise are achieved”.
Alfred Chandler defined Strategy as:-
“The determination of the basic long term goals and objectives of an enterprise and the adoption
of the courses of action and the allocation of resources necessary for carrying out these goals”.
Thus strategy is: -
a. A plan / course of action leading to a direction.
b. It is related to company’s activities.
c. It deals with uncertain future.
d. It depends on vision / mission of the company to reach its current position.
STRATEGY:
1. Before making a decision managers have to look into the course of deciding since
Strategy involves situations like: -
a) How to face the competition.

b) Whether to undertake expansions/diversification
c) To be focused/ broad based
d) How to chart a turn around
e) Ensuring stability/should we go in for disinvestments etc
2. An establishment and successful company would start to face new threats in the
environment. This is due to its success and emergence of new competitors. It has to
rethink the course of action it has been following. This is called strategy.
3. With such rethinking and environment analysis, new opportunities may emerge and be
identified.
4. To make use of these opportunities, the company might fundamentally rethink and
reason the ways and means, the actions it had been following in the past. These are
called “ strategies “.
5. For a company to survive and to be successful strategy is one of the most significant
concepts to emerge in the field of management. According to Alfred chandler the
determination of basic long-term goals and objectives of an enterprise and the adoption
of the course of action and the allocation of resources for carrying out these goals.
William Glueck defines strategy as “a unified, comprehension and integrated plan
designed to assure that the basic objectives of the enterprises are achieved”.
6. Michael Porter views strategy as the “ core of general management is strategy”.

Managers must make companies flexible, respond rapidly, benchmark the best practices,
outsource aggressively, develop core competencies; infact should know how to play new
roles everyday. Hyper competition is a common phenomenon that rivals copy very fast.
7. Companies can outperform rivals only if it can establish a difference it can preserve and
deliver greater value at a reasonable cost.
8. Strategy rests on unique activities –“ The essence of strategy is in the activities –

choosing to perform things differently and to perform different activities than rivals”.
9. Strategy is long term. If company focus is only on operational effectiveness. It can

become good and not better. Overemphasis on growth leads to the dilutions of strategy.
Growth is achieved by deepening strategy.
10. Strategy is the future plan of action, which relates to the companies activities and its
mission/vision i.e. when it would like to reach from its current position.
11. It is concerned with the resource available today and those that will be required for the
future plan of action. It is about the trade off between its different activities and creating
a fit among these activities.
LEVELS OF STRATEGY:
1. When a company performs different business/ has portfolio of products, the company
will organize itself in the form of strategic business units (SBU’s).
2. In order to segregate different units each performing a common set of activities, many
companies are organized on the basis of operating divisions/decisions. These are known
as strategic business units.
CORPORATE LEVEL
FUNCTIONAL LEVEL STRTEGIES [CORPORATE]
SBU1 SBU2 SBU3 (SBU LEVEL)
FUNCTIONAL LEVEL STRATEGIES
3) Strategies are looked at

 Corporate level
 SBU level
4) There exists a difference at functional levels like marketing, finance, productions etc.
Functional level strategies exist at both corporate and SBU level. It has to be aligned and
integrated.
5) CORPORATE LEVEL STRATEGY: It’s a broad level strategy and all its plan of actions is at
corporate level i.e. what the company as a whole. It covers the various strategies performed by
different SBU’s. Strategies needs should be in align with the company objective.
6) Resources should be allocated to each SBU and broad level functional strategies. To ensure
things there would need to have co-ordination of different business of the SBU’s.
7) For most companies strategies plans are made at 3 levels.
a) FUNCTIONAL STRATEGY
b) SOCIETAL STRATEGY
c) OPERATIONAL STRATEGY
FUNCTIONAL STRATEGY:
As the SBU level deals with a relatively. Smaller area that provides objectives for a specific
function in that SBU environment are marketing, finance, production, operation etc.
SOCIETAL STRATEGY:
Larger Companies like conglomerates with multiple business in different countries needs larger
level strategy.
1) A relatively smaller company may require a strategy at a level higher than corporate
level.
2) It’s how the company perceives itself in its role towards the society/ even countries in
terms of vision/ mission statement/ a set of needs that strives to fulfill corporate level
strategies are then derived from the societal strategy.
OPERATIONAL LEVEL STRATEGY:
In the dynamic environment & due to the complexities of business strategies are needed to be set
at lower levels i.e. one step down the functional level, operational level strategies.
There are more specific & has a defined scope. E.g. Marketing Strategy could be subdivided into
sales Strategies for different segments & markets, pricing, distribution etc.
Some of them may be common & some unique to the target markets.
It should contribute to the functional objectives of marketing function. These are interlinked with
other strategies at functional level like those of finance, production etc
MISSION/VISION LEVEL
CORPORATE LEVEL
FUNCTIONAL LEVEL STRTEGIES [CORPORATE]

SBU1 SBU2 SBU3 (SBU LEVEL)
FUNCTIONAL LEVEL STRATEGIES
OPERATIONAL LEVEL
Corporate level is divided from the societal level strategy of a corporation S.B.U Level are put in
to action under the corporate level strategy. Functional Strategies operate under SBU Level.
Operational Level is derived from functional level strategies
Conclusion:
These are the levels at which strategies are formulated. Strategy is a plan or an action
leading to a particular direction. We have corporate level Strategy and
Strategic Business Unit level to fulfill the objectives of the company.
Q.3 What are the Issues in Strategic Decision Making? Explain the role of Various Strategies.
Answer:
Strategy means General ship. The actual direction of military force Strategy involves
decision-making like how to face the competition, how to undertake expansion or diversification
etc.
Issues in Strategic Decision Making

1. While making a decision the company might have different people at different periods of
time.
2. Decision requires judgments; a personal related factors are important in decision-making.
Hence decision ma y differs as person change.
3. Decisions are not taken individually, but often there is a task in decisions which could be
Individual Vs Group decision making. There will be a difference between the individual
and group decision-making.
4. On what Criteria a company should make its decision, for evaluation of the efficiency &
effectiveness of the decision making process, a company has to set its objectives which
serves as main bench mark.
5. 3 Major Criteria in decision Making are
a. The concept of Maximization.
b. The concept of satisfying.
c. The concept of incrementalism.
Based on the concept chosen the strategic decisions will differ.

6. Generally decision-making process is logical and there will be rationality in decision-
making.
7. When it comes to Strategic decision making point of view there would be proper
evaluation & then exercising a choice from various available alternative resource, which
leads to attain the objectives in a best possible way.
8. Creativity in decision-making is required when there is a complete situation & the
Decision taken must be original & different.
9. There could be variability in decision-making based on the situation & Circumstances.
Various Roles of Strategic Management.
Senior management plays n important role in Strategic Management.
Role of Board Of Directors: Board of Directors is the supreme Authority in a company. They are
the owners/ shareholders/ lenders. They are the ones who direct and responsible for the
governance of the company. The Company act and other laws blind them and their actions &
they sometimes do get involved in operational issues. Professionals on the B.O.D help to get new
ideas, perspectives & provide guidance. They are the link between the company and the
environment.
Role of C.E.O: Chief Executive Officer is the most important Strategist and responsible for all
aspects from formulations/Implementation to review of Strategic Management. He is the leader,
motivator & Builder who forms a link between company and the board of directors and
responsible for managing the external environment and its relationship.
Role Of Entrepreneur: They are independent in thought and action and they set / start up a new
business. A Company can promote the entrepreneurial spirit and this can be internal attitude of an
organization. They provide a sense of direction and are active in implementation.
Role of Senior Management: They are answerable to B.O.Directors & The C.E.O as they would
look after Strategic Management a responsible of certain areas / parts of terms.
Role of SBU – Level Executives: They Co-ordinate with other SBU’s & with Senior
Management. They are more focused on their product / burners line.
They are more on the implementation role.
Role of Corporate Planning Staff: It provides administrative support tools and techniques and is a
Co-ordinate function.
Role of Consultant: Often Consultants may be hired for a specified new business or Expertise
even to get an unbiased opinion on the business & the Strategy.
Role of Middle Level Managers: They form an important link in strategizing & Implementation.
They are not actively involved in formulation of Strategies and they are developed to be the
future management.
Conclusion:
These are the issues in strategic decision-making and the role in Strategic Management.
Thus we have different issues in Decision making as to how it is made. Decision-making is not
easy. Creativity is required.
We have different important roles to be played by different Strategists in Strategic Management,
which is essential for the welfare of the company.
Q.4) What is Strategic Management Process? Explain each step briefly.
Answer:
Here are few definitions of Strategic Management Process.
1) According to Glueck it’s a stream of decisions and actions that lead to the
development of an effective strategy/ Strategies to help achieve Corporate Strategies.
2) According to Hofer it’s the process, which deals with fundamental Organizational,
renewal & growth with the development of strategies, Structures and Systems
necessary to achieve such renewal and growth and with the organizational systems
needed to effectively manage the strategy formulation and implementation process.
3) Ansoff defines it as “ The Systematic approach & important responsibility of general
management to position and relate the firm to its environment in a way that will
assure its Continued Success and make it secure from surprises”.
4) Sharplin defines as the formulation & implementation of plans and Carrying out
activities related to the matters, which are vital, and of continuing importance to the
total organization.
5) According to Harrison & St John – Strategic Management is the process through
which organization learn from their internal & external environment, establish
strategic decision create strategies that are intended to help achieve establish goals &
execute there strategies achieve Establish goals and execute there Strategies all in an
effort to satisfy key organizational stake holders.
COMPANY VISION &MISSION/ REQUIREMENTS

OF MAJOR STOCK HOLDERS STRATEGIC
INTENT
EXTENAL & INTERNAL ANALYSIS /

SWOT ENVIRONMENT ANALYSIS
DEFINE STRENGTHS/WEAKNESS/ CORE

COMPENTENCIES
GENERATE STRATEGIC ALTENATIVES/

EVALUATE & SELECT
IMPLEMENT/ FEEDBACK/CONTROL
From the above block diagram it states that Strategic Management is a process, which leads to the
formulation of Strategy/ Set of Strategies & managing thru Organizational System for
the achievement of Vision, Mission Goals and Objectives.
Company Vision / Mission
1) Company Vision is What a Company Wishes to become or aspire to be.

2) Company Mission is what the Company is and why it exists
3) James Parras & James Collins divides Vision/Mission into 2 Parts.
Vision/ Core Ideology Core Values

Core Purpose
Mission Envisioned Future Audacious Goals
Vivid Description
Core Ideology: Is the unchanging part of organization. It is the character of an organization, this
would not change for a longer time even it were disadvantage.
Core Values: what it believes in.
Core Purpose: Existence of Organization and that goes far behind
Envisioned Future: Are the goals to be reached.
It is classified into:
Audacious Goals: These are the goals that the company would like to achieve. They are tough
needs extraordinary commitment and effort.
Vivid Description: These Goals are put into words that evoke a picture of what it would be like to
achieve the Audacious Goals.
SWOT Analysis: External & Internal Analysis:

1. The External Environment is made up of all the Factors, Conditions & influences outside
the organizations.
2. it gives rise to opportunities which can be exploited or it may give rise to threats which
can weaken / cause problem to the organization.
STRENGTHS/WEAKNESS/CORE COMPETENCIES
Strengths: it’s always in relation to the environment. It’s an unborn capacity, which needs to
fulfill two conditions.
1) Requirement for success.

2) It gives the Strategic Advantage.
It has strengths more than the competitor; it could gain more than the Competitor. E.g. Superior
research where new products & Innovations are required. Weakness: It’s something required for
success is missing/inherent inadequacy. It gives strategic disadvantage to the Organization.
E.g. Over dependence on a single product line in a mature market.
Core Competencies: Is developed over a period of time, using these competencies exceeding
well, it develops a fine art of Competition with its rules. This capacity of exerting turns them to
core competencies.
General Strategic Alternatives / Evaluate & Select.

It means that there is a proper evaluation and exerting a choice from various alternative available
resources in such a way it may lead to the achievement of company’s objective.
Q.5) Explain Core Competencies, Strategic Intent, Stretch Leverage & Fit.
Answer:
For an effective strategic intent one has to develop effective strategy, rather than
focusing at the resourcefulness of Competition & their pace at which they are building
competencies one has to focus on existing position.
Core competencies are the collective learning of an Organization, especially how to coordinate
diverse production skills and integrate technologies in the organization of work and delivery of
value. It is communication, deep involvement and commitment to work across organization at all
levels and functions. Core competence is for eg. A company is compared to a tree. Trunk and
limbs are core products and leaves; fruits and flowers are end products. The things, which are not
visible, are the roots, which are very important for the sustenance, nourishment and stability. So,
here the roots act as core competence.
Core competencies bind existing businesses and guide market. They can be identified by three
tests. They are:
1. It provides across to wide variety of markets.

2. It contributes to the benefits of end products.
3. It is a complex harmonization of technologies and production skills.
By not building competencies in emerging markets, the chance of competing in emerging markets
may be lost. It is very important to maintain competencies in the markets. Core products serve
as a link between core competence and the end products. Core competencies are the wellspring
of new businesses.
Strategic Intent is something more than the unfettered ambition. It’s not a soft target. According
to Prahlad & Gray: -
1) It foresees a desired leadership position and establishes the criteria the organization
will chart it’s progress.
2) It Captures the essence of winning & is stable over time.
3) It requires personal effort, Commitment and bit of luck to achieve the target.
4) The Important thing that a company asks for is not “How Well Next Year be
different”? But they ask, “ What must we do differently next year to get closer to our
strategic intent?”
a) Most companies look at change and innovations in isolation
b) Innovations come from everywhere & top Management role is to add value
to it.
c) Strategic intent leaves room for creativity, innovation & top Management
directs it.
5) There must be a balance between resources as a Constrain Vs

Resource as leverage so as to reduce risk. Former is done through building a balanced
portfolio of cash generating and cash consuming business and in the latter a well
balanced and sufficiently broad portfolio/ collection of advantages is assured.
6) It implies a servable stretch for an organization.
7) Since the current capabilities & resources are not------- it will force
inventiveness and the management will keep on involving challenges and they give time
to digest one challenge before launching another.
8) One important parameter is reciprocal responsibility - Which

means equal blame & credit for both operating levels & top management.
9) Companies with good strategic intent know the importance of
documenting failure but instead of blame fixing and nailing people they are more
interested in the management reasons and the orthodoxy, that may have led to future.
Stretch: To Achieve strategic intent one has to stretch forward and has to look at the
resourcefulness instead of looking at resources. One has to make use of Innovation and resources.
Stretch leads to leverage.
Leverage: Refers to concentrating on the resources to achieve strategic intent, accumulating,

learning, experiences & Competencies in a manner to meet the aspirations by stretching the
scarce resource that an organizational resource to the environment.
Instead of allotting the competitors blindly & taking their head companies must leverage the
resources.
Fit: Strategic fit is the traditional way of looking at strategy. Strategic fit is conservative and
seems to be more realistic but u may not be aware of the potential. Under stretch & leverage
Strategic extent could be impossible, idealistic but under fit strategic something far beyond
possibilities and look at the potential possibilities.
Conclusion
Thus Strategic intent is what the organization strives for e.g. Canon wanted to beat
Xerox. It’s an obsession to an organization & it is to win at all levels of the organization,
sustaining that obsession is in quest for global leadership.
Q.6 Write a detailed note on Goals and Objectives.
Answer:
Goals are set to achieve good results for the Organization they are undertaken in order to
fulfill the objectives of the company.
Goals Meaning: -
Goals are the targets or destination that an Organization wants to accomplish in future. Goals set
are of different types depending on their nature.
The Characteristics of Goals are: -
Goals are clear and unambiguous, qualitative.

General Goals, which are laid down by the organisation, should be clear. There should not be any
confusion and doubt. Company can do its work effectively and efficiently depending on Goals.
Moreover they are qualitative.
Goals are broad:-

Targets set should not be narrow in nature. It has to cover the total objectives of the company.
An organization could set goals on turnover, profits, return on assets / equity. It could also have
market share, customer satisfaction, and employee satisfaction as its goals.
Goals are limited and manageable:-

Goals have to be limited. If there are unlimited goals, the company may be in an ambiguous
situation, whether to fulfill, which Goals. That is why there should not be numerous goals. Thus
the company may fail to fulfill its objectives, as it could not be manageable easily.
Thus Goals are of different types:-
Financial, Non-Financial, Qualitative and Quantitative.
Goals: -Goal – Target
a) It’s a target that a company wants to achieve in a future period of time.

b) An organization sets a combination of goals, which might be Qualitatively,
Quantitative, and Financial & Non Financial. These Goals must be clear and
unambiguous.
c) On an organizational level goals are broad in nature and they could set goals on
turnover, profits, returns on assets/equity, market share, Customer satisfaction, Employee
satisfaction.
d) Goals should be limited, manageable, and clear& Consistent with each other,
otherwise it may lead to confusion & Contradictions.
e) Goals may be Qualitative, Quantitative in specification.
OBJECTIVES:-
TEXT & Meaning:-
Objectives are the ends that state specifically how the goals shall be achieved. They are
concrete and specific in contrast to Goals. While Goals are qualitative, objectives are
quantitative. So they are clearly measurable and comparable. Objectives are framed with
the vision / mission of the organization. They are set in relationship with the
environment. They define what the organization has to achieve for its employer,
shareholders, customers.
Characteristics of Objectives:-
1.Understandable:-
Objectives set are to be understood easily. There should not be any complexities in it.
Every one i.e. the employees, customers, outsiders should find it easy in understanding
them without any confusion in their minds.
• Clearly defined time frame and specific:-
Objectives should be specific, clearly defined. There should be some specific or certain
time, interval in which the objectives have to be accomplished.
1.Measurable and Controllable:-
Objectives should not be abstract. They have to be measurable quantitatively and should
be controllable.
• Objectives are challenging, actionable.
Objectives:
a) Objectives are the ends that specify how the goals shall be
achieved.
b) They are concrete and specific and they are in contrast with the
goals.
c) Objectives make the goals operational and tend to Quantitative in
specifications.
d) Objectives are set in a way that what the organization has to
achieve for its employees, shareholders, customers etc.,
e) Objectives are in relation with the environment. They are the
brains of Strategic Decision Making.
f) They are framed in line with the vision/mission of the organization
and it helps to pursue them.
g) Objectives are invariably Quantitative and provide clear measures
and standards for performance.
h) It helps to see whether the Organization is in right track or not.
i) Objectives should be concrete, specific, and understandable &
should have clearly defined time frame.
j) It must be measurable, actionable, challenging but controllable.
k) There must be co-relation with other objectives.
l) While setting objectives these are the factors to be evaluated. It
should be specific at the level, which it is being set. It should not be either too narrow
or too broad.
m) There need to be multiplicity of objectives.
n) It should be formulated at different time frames like short term,
medium term, and long term & should be linked & consistent.
o) Since its in relation with the environment it needs to check whether
they are fulfilling the needs of customers, share holders etc.,
p) It should be In reality with the organizational resources and
internal constraints, including policies & lower relationship.
Conclusion:
Thus an organization is set up to make Prompt and Accurate decision. Hence goals &
objectives are set for the accomplishment of an organization.
Q.7.) What is Environment? How is it Changing? Explain the process of SWOT
analysis? Elaborate what you would study in the environment?
Answer
Introduction : -
Environment means the surrounding. It includes both internal and external objects, factors &
influences under which someone/something exist.
Environment :
1) The Environment of an organization is the aggregate/total of all conditions events that

influences itself & it’s Surroundings,
2) The dynamic & has relationships with each other.
3) The factors in environment may affect the company and visa versa.
4) It has a great impact on the company.
Environment – Changes:
According to Michael Hommer and James Chapey.
1) An Organisation must be flexible enough to adjust quickly with this changing

environment.
2) The Efficiency of the company comes at the expenses of the efficiency of the company as
a whole.
3) It requires co-operation & Co-ordination within the organization.
4) Few Companies are rigid, non-competitive, inefficient and losing money because they are
not able to adjust themselves with the changing environment.
5) In 1776 Adam Smith described in his book, “The Wealth of Nations.” The Principle of
division of labour for increasing the productivity and there by reducing the cost of goods.
American Companies became best in the world after applying the principles.
6) But in today’s world, nothing is constant or predictable & these principles don’t work.
7) Market growth, customer demand, the rate of technological change, and nature of
competition keeps changing.
8) The three forces that drives company are
Customers
Competition &
Change.
Customers : Earlier days, Customers had little choice they used to buy the product that was
offered to them. These days customers come with more specifications and they demand for
customized products and they want individual attention. Hence customers have upper hands these
days. It’s difficult for an organization to survive in the long run unless they satisfy customers
needs.
Competition : As many companies emerges, the competition rises. They offer good quality of
products at lesser price and consumers prefer such products. Earlier the company could get into
market with an acceptable product/service at the best price would go to sell. But these days
customers prefer high quality at lowest price. The Company, which offers these at best price,
goes high quality and best service becomes standard of all the competitors.
Changes : Changes has become both pervasive and persistent because companies face a greater
competitors and each one introduces a product and service innovation to the market with the
globalisation of the economy. Hence the companies need to move fast in pace with the changing
environment otherwise it’s difficult to move.
CONCLUSION:
In today’s environment nothing is constant and predictable hence for a company to
survive in the long run, it has to satisfy customer needs and cope with the changes in the
environment at a faster rate.
INTRODUCTION
The external environment is made of factors, conditions that influences outside the
organization. The external environment gives rise to opportunities, which can be accomplished,
or it may cause problems to the organization.
SWOT ANALYSIS:
The internal environment refers to all factors within the control of and within the organization.
These factors may impart strengths that can be utilized by the organization or cause weakness,
which becomes threat to the organization.
S – Strength O- Opportunity
W – Weakness T – Threats
Strength: –It is an inherent capacity that is in relation to the environment. For an organization to
be a success it requires strength and it gives strategic advantage to gain more than the
competition.
E.g. Innovation and new products are required for superior research and development facilities.
Weakness: - It is an inherent inadequacy that is again in relation to the environment. It gives

strategic disadvantage and something that required for success is missing. It leads to competition
where weakness can be used to gain more due to inherent limitation / constraint/inadequacy.
E.g.1) In a mature market over dependence on a single product line.
2) Lack of capabilities for the development of new product, which is potentially risky for a
company during the time of crisis.
OPPORTUNITY: can be accomplished and can help to consolidate and strengthen the
organization. It’s a favorable condition for an organization in its environment.
E.g. Due to better GDP growth a company provides increase in demand for the products/services.
It helps in strengthening its position.
THREATS: when the opportunities are not utilized properly it can cause problem to the to the
organization which causes threat. It is unfavorable condition for the organization. It causes
risk/damage to an organization.
E.g. Due to opening up of economy, the emergence of multinational companies, which are
stronger and has good resources, offers stiff competition to the existing companies in an industry.
CONCLUSION
An understanding of both internal and external environment in terms of opportunities,
threat, strength, weaknesses important for existence, growth and profitability of an organization.
A systematic approach and understanding the environment is SWOT analysis all about.
Environment to be studied
1) Events: Is some specific occurrence that takes place in different environmental sectors.
E.g. Bilateral agreement between 2 countries in which the company is operating and
facing competition from local companies.
2) Trends: is the way the environment is shaping up. They are he course of action along
which events take place like global warming, nuclear families etc.
3) Issues: are the current concerns that arise in response to events and trends. E.g. Pollution
Control, Business ethics after scams.
4) Expectations: are the demands made by interested groups in light of their concern. Like
corporate governance, greater transparency, stricted auditing norms.
Q.10 Write a note on Integration and Diversification?
Answer
Integration and Diversification are learnt in the expansion Strategies. Expansion
strategies aim at the growth of the company.
Integration:-
All those activities performed by an organization from the procurement of Raw materials
to marketing of finished products to the consumers is value chain. So Integration is combining
activities on the basis of value chain related to present activity of a company. Integration helps in
increasing the scope of Business some industries such as steel; Textiles deal with products with
value chain extending from Raw materials to consumers. Reliance is the best example.
A company adopts Integration Strategies only under certain conditions. The condition is “Make
or Buy”. If the cost of making is less then the cost of procurement than the company moves up
the value chain to make the items itself. If the cost of selling finished products is lesser than the
price paid to the seller, then it is profitable for the company to move down on the value chain. In
these cases, company adopts an Integration Strategy. There are two types of Integration.
Vertical Integration:-
Again it is of two types, Backward and Forward Integration. Backward integration is
becoming your own supplier and forward integration is becoming your own customer. Thus any
activity undertaken either for supplying inputs or serving outputs is vertical integration. Eg.
Titan, Automobile Company.
Horizontal Integration:-
When a company starts serving the same customers with additional products that are
different from the earlier in any of the terms of their customer needs functions, either singly or
jointly, it is Horizontal integration. Eg. A Hardware manufacturer starts supplying software also.
DIVERSIFICATION:-
Diversification is one among the expansion strategies. It is the drastic change in the
business in terms of customer functions, customer groups or alternative technologies of one or
more of a company’s business in separation or in combination. Diversification Strategy is
important as :
a. They minimize the risk, by spreading
b. They strengthen the organization and minimize the weaknesses.
There are different types of Diversification Strategies:-
Concentric Diversification:- When an Organization takes up an activity which is related to the

existing business, it is Concentric Diversification.
Conglomerate Diversification:- When an organization takes up activities which are unrelated to

the existing business, it is conglomerate diversification.
CONCLUSION
Integration results in increasing the scope of the business definition of a company.
Integration is also a part of Diversification Strategies as it is doing something different from what
the company has been doing previously. Thus Integration and Diversification are aimed at
improving and increasing the scope of the business.
Q.14 What do your understand by Strategic Evaluation and control?

Answer
Strategic Evaluation is to estimate the usefulness or powerfulness of strategy in achieving
the organizational objectives.
Control is required to keep track of any changes.
Strategic Evaluation:-
It is the process of “determining the effectiveness of a Strategy in achieving

Organisational objectives and taking corrective action whenever required”.
Importance of Strategic Evaluation:-
a) Coordination:-
It helps to coordinate the tasks performed by Managers, Divisions of SBUs, through

their performance.
b) Act as Feed back, check, Appraisal and Reward:-
It helps to check the validity of Strategic choice. It provides feed back on the
relevance of the Strategic choice made during the formulation phase. There are many
participants involved in Strategic Evaluation. They are the Board of Directors, the
Strategic Business Units (SBUs), Chief Executives, Audit and Executive committees,
Corporate planning department.
But we have many barriers in evaluation of Strategy:
a. The limits of control:-

As we know, control is a check on any changes in evaluating strategy, control acts as
check, which creates unnecessary problems.
a) Difficulties in measurement
b) Resistance to evaluation etc.
CONTROL:- In control, we have four different types. They are

a. Premise control
b. Implementation control
c. Strategic Surveillance control
d. Emergency Alert Control
a. Premise Control:-
Strategy is based on certain assumptions about environment and organizational factors.

Premise control is necessary to identify these assumptions and keep track of any change
in them. It helps the strategists to take correct action at correct time.
b. Implementation Control:-
It is aimed at evaluating whether the plans programmes and projects are guiding the
organisation towards its objectives or not.
It can be put into practice through the identification and monitoring of Strategic thrusts.
c. Strategic Surveillance Control:-
It monitors events inside and outside the company, which threaten the firms strategy.
Broad based, general monitoring on the basis of information sources to uncover
events that affect the Strategy of an Organization.
d. Emergency Alert Control:-
It helps in Signal detection.

It is based on mechanism for immediate response and reassessment of Strategy under
unexpected events. It can be exercised through the formulation of contingency
Strategies and assigning the responsibility or handling unforeseen events.
Organizations may some times under crises. This system of control helps crisis
management by following steps such as Signal Detection, Preparation, Prevention,
and recovery leading to organizational learning.
CONCLUSION
Thus Strategic Evaluation and control process are useful to test the effectiveness of
Strategy.

Question Three important managerial qualities required for the effective strategic
management
Correct Answer Conceptual, human & intellectual skills , Decision making ability , Vision
Your Answer Conceptual, human & intellectual skills , Decision making ability , Vision
Select The Blank

Question Formal systems are adopted to bring ________ & amalgamation of
decentralized units into product groups.
Correct Answer Co-ordination
Your Answer Co-ordination

Question Associated external agencies means
Correct Answer channel members, customers, suppliers etc.
Your Answer competitors

Question A strategy used to learn more about customers need & behaviours in
order to develop stronger relationship with them is
Correct Answer CRM
Your Answer CRM
Match The Following


mission what the company is and why what the company is and why
it exists. it exists.
BHAG big headed audacious goals big headed audacious goals
True/False
Question According to Michael Porter, the core of efficiency management is
strategy.
Correct Answer True
Your Answer False


Select The Blank
Question A hardware manufacture enters into software is an example of
________integration.
Your Answer horizontal
Select The Blank

Question ________ and greater accountability replace formal control.
Correct Answer Self-discipline
Your Answer Self-discipline

Correct Answer between a buyer and a seller , to avail tax concessions , to increase
growth rates
Your Answer between a buyer and a seller , to avail tax concessions , to increase
growth rates
True/False
Question The actual performance deviates positively over the budgeted
performanve. This is an indication of superior performance
Correct Answer True
Your Answer False

Question Concentric diversification means
Correct Answer new activity related to existing business
Your Answer new activity related to existing business

Correct Answer Identifies quality and productivity from a production process , Identifies
impact of any change on performance , Instantly spots malfunctions and
show where they occur
Your Answer Identifies quality and productivity from a production process , Identifies
impact of any change on performance , Instantly spots malfunctions and
show where they occur

Question Core purpose
Correct Answer mission
Your Answer mission

Question It refers to formal and informal rules, regulations and procedures that
complements the company structure
Your Answer Systems
Select The Blank

Question Displacing competitor is ________ category of goal.
Correct Answer common enemy
Your Answer common enemy

Your Answer Time factor

Your Answer Inner Circle , Intermediate circle , Outer Circle

Question Magnitude of the decision outcome and scope of their impact on the
decision maker's domain of activity is
Correct Answer significance
Your Answer significance
Select The Blank

Question ________ is the company's most critical and scarest resource.
Correct Answer Capital
Your Answer Capital

Your Answer weakness of competitors

Question Limitations of Traditional cost accounting are
Your Answer inherent inadequacy of organization

Your Answer radio, TV, internet etc.

Question The major issues of appraisal system are
Correct Answer Factors of appraisal , Relevance of apprasial , Procedure of

appraisal
Your Answer Factors of appraisal , Relevance of apprasial , Procedure of
appraisal

Question Various phases of Growth are
Correct Answer Creativity , Delegation , Co-ordination
Your Answer Creativity , Delegation , Co-ordination
Select The Blank

Question ________ and greater accountability replace formal control.
Correct Answer Self-discipline
Your Answer Self-discipline

Question Money is invested by way of
Correct Answer Debt , Equity
Your Answer Debt , Equity
True/False
Question Under functional strategics we have vertical fit & horizontal fit.
Correct Answer True
Your Answer True

Your Answer operational decisions


Your Answer customer & dealers


Identifies impact of any change on performance , Instantly spots
malfunctions and show where they occur
Your Answer Identifies quality and productivity from a production process ,
Identifies impact of any change on performance , Integrates
manufacturing with business strategy
Select The Blank

Select The Blank



True/False
Question Staffing function applies to all company levels irrespective of
levels of hierarchy
Correct Answer True
Your Answer True


speed to market
Your Answer Increased diversification , Increased speed to market , Increased
market power

Correct Answer clarity in strategy & responsibilities , blending cultures , provide

Your Answer clarity in strategy & responsibilities , blending cultures , provide

Correct Answer between a buyer and a seller , to avail tax concessions , to

Your Answer between a buyer and a seller , to avail tax concessions , to
Select The Blank

Question Titan going into setting their won retail outlets- this is ________
integration.
Your Answer vertical ( forward )
Select The Blank

evaluation.
Correct Answer Time
Your Answer Goals
Select The Blank

________.
Correct Answer Instantly spots malfunctions and show where they occur ,
Identifies quality and productivity from a production process ,
Identifies impact of any change on performance
Your Answer Instantly spots malfunctions and show where they occur ,
Identifies quality and productivity from a production process ,
Identifies impact of any change on performance

Question They have time based utility
Correct Answer Goals , Resources
Your Answer Goals , Resources

Your Answer unfavorable conditions in external environment.

Question Factors to be considered in political- legal environmental
scanning are
Match The Following


mission what the company is and what the company is and
why it exists. why it exists.
BHAG big headed audacious big headed audacious
goals goals


moral obligation is
Your Answer Ethics

Question Core ideology
Correct Answer core values , core purpose
Your Answer core values , core purpose
Select The Blank

Your Answer IR, OB

Question It refers to formal and informal rules, regulations and procedures
that complements the company structure
Your Answer Systems

Question It indicates the degree of differentiation
Your Answer Status

Question Associated external agencies means
Correct Answer channel members, customers, suppliers etc.
Your Answer channel members, customers, suppliers etc.

Question Vertical integration is concerned with
Correct Answer supply chain
Your Answer supply chain

Correct Answer Money , Consistency with goals , Consistency with environment
Your Answer Money , Consistency with goals , Consistency with environment

Question It refers to the relatively more durable company arrangements
and relationships
Your Answer Strategy
Select The Blank

________.
Your Answer concentration strategy

Question Macro environment
Correct Answer Political- legal , socio-cultural , economic-demographic
Your Answer Political- legal , socio-cultural , economic-demographic

Question Degree to which the decision maker is accountable for the
outcomes of the decision is
Correct Answer accountability
Your Answer relativity

True/False
Your Answer False

True/False
Correct Answer True
Your Answer True

Correct Answer Trust & fairness , Changed Management , Integrity &

thoughtfulness
Your Answer Trust & fairness , Changed Management , Integrity &
thoughtfulness
Select The Blank


Your Answer controlling
True/False
Question Style of a company are the patterns of actions taken by
members of top management over a period of time
Correct Answer True
Your Answer True
True/False
Your Answer True

True/False
Question The actual performance deviates positively over the budgeted
performanve. This is an indication of superior performance
Correct Answer True
Your Answer True
Select The Blank

Question Bajaj started manufacturing of sunny is an example of ________.
Your Answer integration strategy

Correct Answer Vital ingredient in determinig it's future , Yields growth, profits etc , may
result in disaster if inappropriate
Your Answer Vital ingredient in determinig it's future , Yields growth, profits etc , may
result in disaster if inappropriate

Your Answer quality & no. of suppliers , logistics , raw material , trends and rate of

Your Answer radio, TV, internet etc.

Question The objective to maximize value of the enterprize by striking a mean
between liquidity, risk and profitability is
Correct Answer Receivables planning
Your Answer Receivables planning
Select The Blank

Your Answer general agreement on trade & tariff

Select The Blank
Correct IR, OB
Answer
Your Answer IR, OB

Correct by employees , by research agencies , by consultants
Answer
Your Answer by employees , by research agencies , by consultants

Question Retrenchment strategy means
Correct contraction of business activities
Answer
Your Answer contraction of business activities

Question The discipline which deals with what is good and bad
and which moral obligation is
Correct Ethics
Answer
Your Answer Ethics
Select The Blank

Question The benefits of a change in process are defined in
terms of ________ cost savings
Correct Labour
Answer
Your Answer Labour

Question An approach that strives to follow ethical principles
and percepts is
Correct Moral management
Answer
Match The Following

Question Vertical integration is concerned with
Correct supply chain
Answer
Your Answer supply chain
True/False
Question The actual performance deviates positively over the
budgeted performanve. This is an indication of
superior performance
Correct True
Answer
Your Answer True
True/False
Correct False
Answer
Your Answer False
True/False
Correct False
Answer
Your Answer False
Match The Following

Rely on short term Barrier in evaluation Audit and Executive
assessment committee
Premise control Identifies key Identifies key
assumptions assumptions
Emergency alert Type of strategic Control
control evaluation control
Strategic evaluation Effectiveness of Effectiveness of
strategy strategy
Select The Blank

Question Like roots of a tree, ________of organization is hidden
from direct view.
True/False
Your Answer False
True/False
Correct Answer True
Your Answer True
Select The Blank

Your Answer global agreement on trade & taxes

Question It is designed to monitor a broad range of events inside and
outside the company that are likely to threaten a firm's strategy
Correct Answer Strategic surveillance
Your Answer Strategic surveillance


Question The objective to maximize value of the enterprize by striking a
mean between liquidity, risk and profitability is
Match The Following

Ballast business Fit well but low Misfit with understanding of

opportunities critical success factors
True/False
Your Answer False
True/False
Correct Answer True
Your Answer True
Select The Blank

Your Answer global agreement on trade & taxes

Question It is designed to monitor a broad range of events inside and
outside the company that are likely to threaten a firm's strategy
Correct Answer Strategic surveillance
Your Answer Strategic surveillance


Question The objective to maximize value of the enterprize by striking a
mean between liquidity, risk and profitability is
Match The Following

Ballast business Fit well but low Misfit with understanding of

opportunities critical success factors
outcomes is
Select The Blank

Question Economics of scale requires ________.
Correct Answer high market share
Your Answer high market share
Select The Blank

Your Answer Leaders
Select The Blank

evaluation.
Correct Answer Time
Your Answer Time

Question Factors encouraging joint ventures are
Correct Answer uneconomical separate existence , risk of business gets shared ,

Your Answer uneconomical separate existence , risk of business gets shared ,
Select The Blank

Question Tata motors goal of reaching middle class two wheeler owners is
a ________ category of goal.
Correct Answer internal transformation
Your Answer specialization
True/False
Question Systems are formal and informal rules and regulations that
complements the company structure
Correct Answer True
outcomes is
Select The Blank

Question Economics of scale requires ________.
Correct Answer high market share
Your Answer high market share

Match The Following

Comparative analysis is historical analysis historical analysis
Benchmarking is competitive analysis value chain analysis
Michael Hammer & James Reengineering Reengineering

Chapy
GDP stands for gross domestic product gross domestic product


structured/ unstructured expert/inexpert opinion , Dynamic
modes and mapping
Your Answer single-variable extrapolation/multivariable interaction analysis ,
structured/ unstructured expert/inexpert opinion , simulation ,
Dynamic modes and mapping
True/False
Your Answer False

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Your Answer False

Correct Answer False

Your Answer False

Select The Blank

Your Answer Leaders

Your Answer True

Select The Blank

Correct Answer environmental threat & opportunity profile

Your Answer environmental threat & opportunity profile

Your Answer True

Multiple Choice Single Answer

Correct Answer competitive advantage profile

Your Answer competitive advantage profile

Correct Answer False

Your Answer False

Multiple Choice Single Answer

Your Answer Audit committee

Multiple Choice Multiple Answer

Multiple Choice Single Answer

Your Answer Systems

Correct Answer False

Your Answer True

Select The Blank

Correct Answer Statistical quality control

Your Answer Statistical quality control

Correct Answer True

Correct Answer move slowly & surely

Your Answer move slowly & surely

Your Answer True

Multiple Choice Single Answer

Correct Answer Top Management

Your Answer Top Management

Correct Answer False

Your Answer True

Multiple Choice Single Answer

Correct Answer newspapers, magazines, journals etc.

Your Answer research, surveys, interviews etc.

Multiple Choice Multiple Answer

Correct Answer by employees , by research agencies , by consultants

Your Answer by employees , by research agencies , by consultants

Correct Answer False

Your Answer False

Your Answer True

Multiple Choice Multiple Answer

Correct Answer Increased market power , Increased diversification , Increased

Multiple Choice Multiple Answer

Correct Answer clarity in strategy & responsibilities , blending cultures , provide

Multiple Choice Multiple Answer

Correct Answer between a buyer and a seller , to avail tax concessions , to

Select The Blank

Your Answer vertical ( forward )

Select The Blank

Your Answer Goals

Select The Blank

Your Answer False

Multiple Choice Multiple Answer

Correct Answer Operational level system , Knowledge level system ,

Select The Blank

Your Answer Traditional

Multiple Choice Single Answer

Your Answer leadership