Strategic Management or Strategy - 3

[STRATEGIC MANAGEMENT]
Strategic management
IMT NOTES
STRATEGIC MANAGEMENT AND COMPETITIVINESS:
1. Horizontal integration is concerned with

 Production
 Quality
 Product planning
 All of the above
2. It refers to formal and informal rules, regulations and procedures that complement the
company structure
 Strategy
 Systems
 Environment
 All of the above
3. Micro environment is the ………. environment of a company.

 Working
 Human
 External
 Internal
4. Techniques used in environmental appraisal are

 single-variable extrapolation/multivariable interaction analysis
 Structured/ unstructured expert/inexpert opinion
 Dynamic modes and mapping
 All of the above
5. Match The Following
Question Your Answer

a. Ballast business 1. Give the highest priority
b. Gap analysis 2. Difference between desired and projected performance
c. Corporate parenting 3. Managing SBU’s by a corporate
d. Heartland business 4. Fit well but low opportunities
(A) a-1, b-3, c-2, d-4
(B) a-2, b-1, c-4, d-3
(C) a-4, b-2, c-3, d-1
(D) a-2, b-3, c-4, d-1
6. It enables the strategists to take corrective action at the right time

 Implementation control
 Special alert control
 Strategic Surveillance control
 Premise control
7. Like roots of a tree, ________of organization is hidden from direct view.

 Performance
 Strategy
 Core competence
8. Changes in company ………. also necessitates changes in the systems in various degrees
 structure
 system
 strategy
 turnover
9. The actual performance deviates positively over the budgeted performance. This is an
indication of ……….. performance.
 superior
 inferior
 constant
 any of the above
10.Criteria for making an evaluation is (are)

 Consistency with goals
 Consistency with environment
 Money
11. The ………. of any organization is “the aggregate of all conditions, events and influences
that surround and affect it.”
 system
 environment
 structure
 strategy
12. Strategic management is mainly the responsibility of

 Lower management
 Middle management
 Top management
18.The major issue(s) of appraisal system is (are)

 Factors of appraisal
 Relevance of appraisal
 Procedure of appraisal
19. They have time based utility

 Goals
 Resources
 both ‘A’ and ‘B’
 None of the above
20.Formal systems are adopted to bring ________ & amalgamation of decentralized units into
product groups.
 Manpower
 Co-ordination
 Production
EXTERNAL ENVIRONMENTS:
Question 1
Google.com is an example of a firm that:
a) adapted well to the business environment within its industry.
b) changed the business environment within its industry.
c) applied the VRIO framework in global strategic planning.
d) applied the SWOT Analysis in global strategic planning.
Question 2
The resource-based perspective suggests that unique firm resources should be the starting point
for developing successful strategies.
a) the business opportunity should be the starting point for developing successful strategies
b) unique firm resources should be the starting point for developing successful strategies.
c) both business opportunity and unique firm resources should be the starting point for
developing successful strategies.
d) neither business opportunity nor unique firm resources should be the starting point for
developing successful strategies.
Question 3
SWOT is an abbreviation for
a) Internal Strengths (S), Internal Weaknesses (W), External Opportunities (O), External
Threats (T).
b) Integrated Strategies (S), Integrated Weaknesses (W), External Opportunities (O), External
Threats (T).
c) External Strengths (S), External Weaknesses (W), Internal Opportunities (O), Internal Threats
(T).
d External Strengths (S), Internal Weaknesses (W), External Opportunities (O), Internal Threats
(T).
Question 4
The concept of core competencies was originally devised by:
a) Michael E. Porter
b) John Dunning and John Child
c) C. K. Prahalad and Gary Hamel
d) Jay B. Barney
Question 5
The VRIO framework can be used to identify:
a) a firm's resources and external opportunities.
b) the organizational structure of multinational firms.

c) a firm's technical resources.
d) a firm's core competencies.
Question 6
Dynamic capabilities refer to:
a) the firm's ability to integrate, build, and reconfigure internal and external competences
to address rapidly changing environments.
b) the link between subsidiary resource and multinational firm's competitive advantage in global
markets.
c) the firm's dynamic capability to find resources that are valuable, rare, difficult to imitate and
can be exploited by the organization.
d) the combination of individual technologies and production skills that underlie a company's
multiple production lines and critically underpin the firm's competitive advantage.
Question 7
Value added is:
a) the cost saving through production and marketing efforts within the firm.
b) the value that a firm adds through the development of dynamic capabilities.
c) the value that a firm adds to bought-in materials and services through outsourcing.
d) the difference between the cost of inputs and the market value of outputs.
Question 8
Global value systems are sometimes referred to as:
a) Global value added
b) Global resource systems
c) Global value chains
d) Global capability linkages
Question 9
The systematic collection of information about rivals in order to assist the development of firm
strategies is called:
a) Competitor intelligence
b) Internal benchmarking
c) Benchmarking
d) Functional benchmarking
Question 10
Functional benchmarking involves:
a) benchmarking your competitors.
b) benchmarking global competitors in your industry.
c) benchmarking organizations with regards to specific business activities or processes.
d) benchmarking other multinational firms with similar corporate strategies or similar customers.
INTERNAL ENVIRONMENTS
1. Gelation is water loss in form of drops on tips of

Stem leaves
leaves
Root
Flower
2. Length of human kidney is

12cm
15cm
10cm
20cm
3. Hilus, a depression present near center of

Liver
Spleen
Kidney
Stomach
4. Less intake of water and alcohol consumption are major cause of

Liver stones
Stomach stones
Spleen stones
Kidney stones
5. Blood cleaning by artificial method is

Dialysis
Kidney transplant
Lithotripsy
Kidney replacement
6. -------- consists of economic conditions, economic policies , industrial policies and economic
system.
A. Business Environment
B. Economic Environment
C. Natural environment
D. None of the above
7: External environment of business is

A. Physical
B. Demographical
C. Economic
D. All of these
8: The low income economies are sometimes referred to as -

A. First World
B. Second World
C. Third world
D. None of these
9 The economic environment of a business includes

A. Economic system
B. Economic policies
C. Economic conditions
D. All of these
10.An analysis of the external environment enables a firm to identify -

A. Strengths and opportunities
B. Strength and weakness
C. Weakness and threats
D. Opportunities and threats
BUSINESS-LEVEL STRATEGY
Question 1.
Which of the following is not one of Michael Porter's basic competitive position strategies?
Overall cost leadership
Differentiation
Focus
Operational excellence
Question 2.
Which of the following statements is true?
A competitor-centered company is one that spends most of its time tracking competitors'
moves and market shares and trying to find strategies to counter them
A customer centered company focus more on customer developments in designing its
strategies
Middle-of-the-roaders try to be good on all strategic counts, but end up being not very
good at anything
All of the above
Question 3.
Which of the following is a part of the marketing challenge strategies?
Expand total market
Protect market share
Full frontal attack
Expand market share
Question 4.
Benchmarking: comparing the company's products and processes to those of competitors or
leading firms in other industries to identify "best practice" and find ways to improve quality and
performance.
True
False
Question 5.
The key idea in niching is to have the broadest product assortment on the market.
True
False
Question 6.
Customer intimacy: the company provides superior value by leading its industry in price and
convenience.
True
False
Question 7.
Creating competitive advantages begins with a thorough understanding of competitors' _______.
logistics
business goals
strategies
none of the above
Question 8.
Michael Treacy and Fred Wiersema suggest that companies gain leadership positions by
delivering _______ _______ to their customers.
superior value
cost leadership
differentiated products
none of the above
COMPETATIVE RIVELRY AND DYNAMICS:
1.Companies that take risks and mistakes, have vision of future necessities and flexibility are
considered as
active firms
proactive firms
reactive firms
responsive firms
2. Defense which hits competitors and keeping off balance in between is classified as
position defense
flank defense
preemptive defense
offensive defense
3. Attempt of capturing a large territory by launching several front grand offensive marketing
strategy is classified as
encirclement attack
flank attack
frontal attack
resource attack
4. Defense strategy in which leader stretches over new market territories using market
diversification is classified as
mobile defense
static defense
stable defense
unstable defenses
5. Assigning of resources to stronger ones to form weaker markets are classified as

strategic withdrawal
planned contraction
unplanned withdrawal
both A and B
6.The dynamics of organizational environments can be classified according to which pair of

factors listed below?
Proactive and reactive outcomes
Competition and co-operation
Changeability and predictability
7. From the list below, identify which factor does not form one of the six key areas of a PESTEL
analysis.
Ecological changes
Political changes
Socio-cultural changes
Technological changes
8. Which of the following statements best defines a 'scenario' that may be generated by scenario
analysis?
A scenario is a picture of a possible future environment for the organisation, whose
strategic implications can then be investigated. It is less concerned with prediction and
more concerned with developing different perspectives on the future
A scenario is a strategic option facing the organisation. It is a set of actions that it might pursue
generated as a result of managers asking 'what if' questions
A scenario is a fictitious set of events that may arise and which managers should consider so that
they can react more quickly if they do in fact occur
A scenario is a set of circumstances that may arise in response to the actions of the organisation's
management that may or may not benefit the organisation
9. Why is the concept of the industry life-cycle relevant to corporate strategy?

Because knowing the time scale of the life-cycle enables organisation's to plan for the future
Because it reminds managers that all industries (and/or market segments) eventually decline
Because the life-cycle curve is a known shape it allows managers to understand the timing
of changes in strategy as the cycle unfolds
Because the key strategic issues and hence strategies that should be pursued change with each
phase in the life cycle
10. What is meant by the term 'key factors for success' (KFS)?
KFS are those things any firm, irrespective of its industry, must do well to survive and prosper
KFS are those resources, skills and attributes of the organisations in the industry that are
essential to deliver success in the marketplace
KFS are the criteria used to determine which organisations are successful and which not
KFS are performance targets used to motivate staff
11.Barriers to entry affect the ability of firms outside an industry to enter and take advantage of
profit opportunities. Which of the following is not an example of such a barrier?
Product differentiation
Capital requirements
The relative size of existing firms in the industry
Economies of scale
Switching costs
12. In Porter's five forces model, what is meant by the term 'substitute'?
A substitute refers to an alternative manufacturing process
A substitute is an alternative product or service that performs the same function for
the consumer
A substitute is something else consumers would rather spend their money on
A substitute is a rival firm offering the same products
13. Which of the following items is not a criticism of the five forces model?
i) The analysis is essentially static, whereas industries constantly change.
ii) No force is deemed more important than the others.
iii) In viewing all the forces as threats it does not allow for co-operation.
iv) It stresses the environment to the exclusion of internal influences on strategy.

v) The model was developed in the 1970s and is now obsolete.
i), ii), iii) and iv)

v)
i) and iii)
ii), iii) and iv)
14.What four types of relationships are captured in the four links model?
Employment contracts, supply contracts, sales contracts and maintenance contracts
Government links, informal co-operative links, formal co-operative links and
complementors
Supplier, customers, competitors and internal relationships
15. What are the main areas to include in producing a profile of a competitor organisation?
The organisation's suppliers, distributors, customers and shareholders
The organisation's products, locations, market share and profits
The organisation's objectives, resources, market strength and current strategies
The organisation's turnover, profits, costs and gearing
16. Which of the following statements best defines market segmentation?

Market segmentation is the 'carving-up' of a market by firms so that they all share in that
market
Market segmentation is the identification of specific parts of a market and the
development of different market offerings that will be attractive to those segments
Market segmentation is the division of a geographical area into specific sales territories
Market segmentation is the division of a market into different geographical regions
17. Which of the following is not a reason why market segmentation is important to strategy
development?
Some segments may be growing faster and offer more development opportunities than
others
Some segments may be more profitable and attractive than others. For example,
large segments may have low profit margins but their size may make them attractive, even
at these levels of profitability
Some segments may have more competition than others. For example, a specialist
segment may have only a limited number of competitors
Knowing your segments makes it easier to know which customers competitors are
targeting
18. Not all aspects of the environmental analysis are equally important. So, what should be the
order of priority?
Competitors, customers and complementors
Markets, segments, then individual customers
The broad environment, competitors, then customers
Customers, immediate competitors, then the broader environment
19. In many respects, the real danger in analysing the environment is to limit the process to
examining past events and ways of thinking. It is absolutely essential to break out of the current
mould and examine alternative routes and ideas.
True
False
20.
What two types of market segments did Michael Porter use in developing his generic strategies
model?
Geographic and class-based segments
Broad target and narrow target
Lifestyles and behaviour
Residential neighborhoods and occupations
21. What can an environmental analysis be used to provide an organisation with?

A proactive strategy outcome or a reactive strategic situation
Changeability or predictability
Informal co-operative links and networks
Market growth or market share
21. Which of the following is not a criticism of the industry life cycle?
Companies themselves can instigate change in their products and can, as a result, alter the
shape of the curve
Some industries miss stages or cannot be clearly identified in their stages,
particularly as a result of technological change
Assumes organisation's own interests come first
At each stage of evolution, the nature of competition may be different
22. Which of the following is not a key factor for success?

Identification of specific parts of a market and the development of different market

offerings that will be attractive to those segments
An analysis of the organisation's resources
The skills and attributes of an organisation
23.Which of the following is not one of the three main difficulties in studying the environment?
The uncertainty of the topic/environment
The range of environmental influences that exist
New products, adoption of new technologies, R&D expenditure etc.
Deciding the use to which the analysis will be put
24.Which of the following is a reason for why customer service and quality are important?
They identify opportunities and threats
They may deliver competitive advantage
They can be used to identify elements of the environment that are particularly
worth exploring
They may provide opportunities for productive co-operation with other organisations
CORPORATE LEVEL-STRATEGY
1-The following is (are) non-verbal communication

Facial expression
Appearance
Posture
All of the above
(Ans: d)
2-The handshake that conveys confidence i

Limp
Firm
Loose
Double
(Ans: b)
3-Communication is the task of imparting ________

Training
Information
Knowledge
Message
(Ans: b)
4-The whole concept of achieving success begins with how you ______
Behave
Think
Work
All of the above
(Ans: d)
5-Match the following

A. Pressures 1. Visualize future
B. Keen foresight 2. Limited vision
C. Vision 3. Positive growth
D. Positive changes 4. Power of imagination
The correct answer is
A-2, B-4, C-1, D-3

A-4, B-2, C-1, D-3
A-2, B-4, C-3, D-1
A-2, B-1, C-4, D-3
(Ans: a)
6-The trump card during _______ should be brought out at the crucial moment.
Interview
Negotiation
Training
Purchasing
(Ans: b)
7-The following is the permanent records for business

Business letters
Ledgers
Production reports
All of the above
(Ans: a)
8-Body of a letter is divided into ________ parts.

1
2
3
4
(Ans: c)
9-As per Newman and Summer Communication is the Exchange of

Facts
Opinion
Emotions
All of the above

(Ans: d)
10- The ________ body of the presentation should be broken into short and clear units
Main
Middle
Upper
Lower
(Ans: a)
11-________ of the letter consists of main message.

Heading
Body
Greeting
Closing
(Ans: b)
12-A common fallacy about manager is that he must be

Loud
Flamboyant
Drinker
All of the above
(Ans: d)
13-The following is (are) the most effective ways of communication.

Verbal
Non verbal
Written
All of the above
(Ans: c)
14-The _____ of business letter is called layout.

Body
Content
Pattern
All of the above
(Ans: c)
15- Goals help us to ________
Communicate
Success
Work
Motivate
STRATEGIC ACQUISITION AND RESTRUCTURING:

1.
A firm that acquires another firm as part of its strategy to sell off assets, cut costs, and operate
the remaining assets more efficiently is engaging in __________.
a strategic acquisition
a financial acquisition
two-tier tender offer
shark repellent
Question 2.
A would-be acquirer's offer to buy stock directly from shareholders is referred to as __________.
a white knight
a joint venture
a tender offer
a takeover
Question 3.
The restructuring of a firm should be undertaken if __________.
the restructuring is expected to create value for shareholders
the restructuring is expected to increase earnings per share (EPS) next year
the restructuring is expected to increase the firm's market share power within the industry
the current employees will receive additional stock options to align employee interest
Question 4.
Economies of scale, market share dominance, and technological advances are reasons most
likely to be offered to justify a __________.
financial acquisition
strategic acquisition
divestiture
supermajority merger approval provision
Question 5.
Suppose that the market price per share of Company A is $100 and that of Company B is
$40. If A offers one-half (1/2) a share of common stock for each share of B, the exchange
ratio with respect to market prices would be __________.
0.40
0.80
1.25
2.50
Question 6.
A reason suggested by the authors for a divestiture, such as a sell-off or spin-off, is
__________.
synergy
reverse synergy
hubris
economies of scale
Question 7.
What is the most likely reason that a firm (who is highly profitable) might consider acquiring a
firm that has had large recent losses and will continue to have losses into the near future?
Hubris.
White knight.
Tax-loss usage.
Increase assets.
Question 8.
Richard Roll makes a case with the __________ hypothesis that takeovers are motivated by
bidder pride and confidence in their abilities relative to others.
hubris
efficient markets
management success
synergy
Question 9.
A merger that signals to the investors in the market place a change in strategy or operating
efficiency that can not be conveyed in another manner is referred to as __________.
the information effect

the wealth effect
strategic effect
bootstrapping effect
Question 10.
A firm that acquires another firm as part of its overall business strategy is engaging in
__________.
a two-tier tender offer
a shark repellent
Question 11.
The average takeover premium a target firm has historically received is closest to which of the
following percentages?
5%
12%
30%
80%
Question 12.
What remains after we subtract operating costs and capital expenditures necessary to at least
sustain cash flows from total firm revenues?
Free cash flows.
Strategic cash flows.
Net income.
Earnings before interest and taxes (EBIT).
Question 13.
How should a successful acquisition be evaluated in the long-run?
The acquisition is successful if the acquirer is able to increase its earnings per share
(EPS), relative to what it would have been without the acquisition.
The acquisition is successful if the acquirer is able to reduce its debt-to-total asset ratio,
and hence risk, relative to what it would have been without the acquisition.
The acquisition is successful if the acquirer is able to diversify its asset base and reduce
its overall risk.
The acquisition is successful if the market price of the acquirer's stock increases
over what it would have been without the acquisition.
Question 14.
What is the landmark piece of legislation designed to promote competition by combating
monopolistic behaviors through antitrust law?
The Securities Act of 1933.
The Securities Act of 1934.
The Antitrust Act of 1915.
The Clayton Act.
Question 15.
A firm can acquire another firm __________.
only by purchasing the assets of the target firm
only by purchasing the common stock of the target firm
by either purchasing the assets or the common equity of the target firm.
None of the above are methods of acquiring the target firm
Question 16.
Which of the following hypotheses attempt to explain the motivation behind creating barriers to
receiving unsolicited takeover offers?
Only the managerial entrenchment hypothesis.
Only the shareholders' interest hypothesis.
Only the takeover barrier hypothesis.
Both the first and second answers are hypotheses that attempt to explain this
motivation.
Question 17.
What is a business organizational model that involves the large-scale outsourcing of business
functions?
Virtual corporation.
Joint venture.
Corporate liquidation.
Equity carve-out.
Question 18.
A bidder that offers a higher price to the first fixed quantity of shares tendered and a lower
second price for all remaining shares is engaging in __________.
a two-tier tender offer
shark repellent
Question 19.
How do you refer to the public sale of stock in a subsidiary in which the parent usually
retains majority control?
Virtual corporation.
Joint venture.
Corporate liquidation.
Equity carve-out.
Question 20.
By using a __________, the firm can independently control considerable assets with a very
limited amount of equity.
joint venture
leveraged buyout (LBO)
spin-off
consolidation
Question 21.
As discussed in the text, the creation of a global 24-hour news and information cable network
called MSNBC is an example of a __________.
strategic acquisition
financial acquisition
joint venture
virtual corporation
GLOBAL STRATEGY
Question 1
Strategic management can be defined as:
a) a process of setting written long-term profit plans for the organization.
b) a process of measuring performance of the organization.
c) a process of operational planning.
d) a process of setting long-term direction for the organization.
Question 2
A global - as opposed to international - strategy involves:
a) a wide variety of business strategies across countries.
b) a single strategy for a subsidiary of a multinational firm.
c) a single strategy for the entire global network of subsidiaries and partners.
d) a wide variety of subsidiary strategies within the global network of subsidiaries.
Question 3
Which of the following is NOT an example of a global strategy?
a) The British subsidiary of global insurance group Aviva develops a new product for the
UK market.
b) IKEA sells standardized, Swedish designed, self-assembly furniture products at low price.
c) LVMH sells luxury goods made in France.
d) Walmart withdraws from Germany in order to avoid changing its global strategy of selling
low-priced products.
Question 4
Alan Rugman said that:
a) Trade between nations is conducted at global and local levels.
b) Most multinational firms have a global strategy.
c) Most multinational firms have a local strategy.
d) Most economic activity is regional - not global.
Question 5
Which of the following is NOT a dimension of global strategy?
a) Localization
b) Coordination and configuration
c) Standardization
d) Integration
Question 6
What three broad factors determine global strategy of multinational firms?
a) Local globalizing drivers, industry globalizing drivers, internal globalizing drivers
b) Cultural globalizing drivers, industry globalizing drivers, global orientation
c) Industry globalizing drivers, internal globalizing drivers, global orientation
d) Macro globalizing drivers, industry globalizing drivers, internal globalizing drivers
Question 7
What are the four industry globalizing drivers?
a) Market drivers, cost drivers, government drivers, and localization drivers
b) Market drivers, cost drivers, government drivers, and competitive drivers
c) Market drivers, cost drivers, competitive drivers, bargaining drivers
d) Market drivers, cost drivers, competitive drivers, regionalization drivers
Question 8
A global consumer culture means that:

a) cultural traditions and values are converging around the world.
b) consumers are becoming very similar around the world.
c) there is a world-wide demand for the same global brands.
d) national cultures are disappearing around the world.
Question 9
Global economies of scale arise when:
a) a product or a process can be globally performed using cheap labor.
b) a product or a process can be performed more cheaply thanks to alliances with multinational
firms in other sectors.
c) a product or a process can be performed more cheaply at greater volume than at lesser
volume.
d) a product or a process can be performed more cheaply thanks to globally performed cross-
business cost-saving activities.
Question 10
Governments can encourage globalization of industries by:
a) increasing tariffs and regulations
b) creating common international technical standards
c) subsidising domestic firms that expand internationally
d) subsidising foreign firms that invest in their country
COOPRATIVE IMPLICATION FOR STRATEGY

Question 1.
A business strategy is taken to define the future direction and actions of an organisation or part of
an organisation. What would the definition of the approach by which applications of internal and
external electronic communications can support and influence corporate strategy be referred to
as?
None of the below
E-mission statement
E-business strategy
Corporate strategy
Question 2.
What could be an implication for an organisation if an e-business strategy is not clearly defined?
Greater opportunities from evaluation of opportunities
Clear direction of e-business strategy
Effective integration of e-business at a technical level
None of the above are applicable
Question 3.
Before developing any type of strategy, a management team needs to agree the process they will
follow for generating and then implementing the strategy. A framework that gives a logical
sequence to follow to ensure inclusion of all key activities of an e-business strategic
development is generally known as:
An E-channel strategy
Multi-channel e-business strategy
E- business stratification process
A strategy process model
Question 4.
Regarding resource analysis, this is primarily concerned with examining e-business capability
and includes examining the degree to which a company has the appropriate technological and
applications infrastructure in place. What more is required so that these resources can work
together to provide efficient business processes?
Human and financial resources

Organizational analysis at micro level
Strategic situation scanning and monitoring
Application portfolio analysis
Question 5.
SWOT analysis can be used in many different areas of business and can help organisations
analyse their internal resources in terms of strengths and weaknesses then match them against the
external environment in terms of opportunities and threats. However, it may be of greatest value
when it is used to:
Formulate future strategies in addition to analysing the current situation
Promote strengths and reduce weaknesses
Minimize threats and maximize opportunities
None of the above - it is too vague to be of any real use
Question 6.
External factors need to be assessed as an integral part of strategic analysis and this could
examine many areas including competitor (as against competitive) threats. A competitor analysis
can be conducted which involves a review of e-business services offered by existing and new
competitors and the adoption of these by their customers. Resource-advantage mapping is one
suggestion but why would this be useful?
To assess customer value provided relative to competitors
To identify where competitors are weak and exploit this
So that internal resource strengths can be assessed against external threats
Actually, all of the above have a part to play
Question 7.
Defining a specific company vision for e-business helps to contextualize e-business in relation to
a company's strategic initiatives and its marketplace. In 2008, Jelassi and Enders suggested that
an e-business mission statement should include three of the following points but which one is
FALSE?
Business scope
Unique competencies
Values
Cost
Question 8.
Much of the organizational value created by e-business is due to more effective use of
information. An analytical tool developed by Marchand and others can be used to illustrate
different ways in which information can create value for organisations. There are four methods
or axes used to analyse information but which does not fit in with Marchand's model?
Adding value
Accept costs
Manage risks
Create new reality
None of the above
Question 9.
Effective strategies link objectives and performance together, while prioritising objectives can
facilitate and communicate an e-business vision. As such, e-business objectives should be
SMART but within this acronym, what does R stand for?
Relevant
Representative
Reliable
Responsible
None of the above
Question 10.
As the definition of strategy is driven by the objectives and vision or mission, these will need
reviewed and significant key e-business decisions taken. One decision will include examining
market strategy, specifically a target marketing strategy of customers. Which of the following
would represent the evaluation and selection of customer segments?
None of the below
Customers who are brand loyal
Customer value improvement
Customer loyalty improvement

Market share growth.
Question 11.
Once segments have been identified, organisations need to define how best to position their
online services relative to competitors according to four main variables: product quality, service
quality, and fulfillment time. Which variable is missing?
Price
Customer value
Brand perception
After sales service
Question 12.
Another aspect of Internet strategy formulation closely related to product development is the
review of opportunities from new business and revenue models. Constantly reviewing innovation
in services to improve the quality of experience offered is also important to e-businesses. So
while there is a view that 'only the paranoid will survive', which of the following options should
managers avoid?
Do-nothing option
Fast-follower option
Wait-and-see option
None of the above
Question 13.
Much can be learned from e-business failures as well as successes and Miller's (2003) analysis of
Internet company failures pointed the major overall mistake was to:
Massively overestimate the speed at which the marketplace would adopt dot com
innovations
Over-ambition
Corporate greed
Offering free services
Question 14.
An assessment of MSE success factors was produced by Jeffcoat and others in 2002 and they
suggested critical success factors applicable to larger organisations. Which of the following
could be usefully applied?
Brand, price sensitivity, partnerships, and process improvement
Interaction and integration
Content, convenience, control, community, and commitment
All of the above are applicable
Question 15.
When considering the alignment and impact of e-business strategies, an essential element is to
consider how the information system strategy supports change. It has been observed in a study of
major leading corporations that they distinguished between information and technology and the
contributions both made. Essentially, competitive advantage came from how information is:
All of the below
Stored
Analysed
Applied
None of the above
CORPORATE GOVERNANCE AND ETHICES:
Q1. The primary stakeholders are:

a. Customers.
b. Suppliers.
c. Shareholders.
d. Creditors.
Q2. The goal of corporate governance and business ethics education is to:
a. Teach students their professional accountability and to uphold their personal
Integrity to society.
b. Change the way in which ethics is taught to students.
c. Create more ethics standards by which corporate professionals must operate.
d. Increase the workload for accounting students.
Q3. The corporate governance structure of a company reflects the individual

companies’:
a. Cultural and economic system.
b. Legal and business system.
c. Social and regulatory system.
d. All of the above.
Q4. The internal audit function is least effective when the department:
a. Is non-independent.
b. Is competent.
c. Is objective.
d. Exhibits integrity
Q5. Under the _____________, both internal and external corporate governance
mechanisms are intended to induce managerial actions that maximize profit and
shareholder value.
a. Shareholder theory.
b. Agency theory.
c. Stakeholder theory.
d. Corporate governance theory.
Q6. One of the objectives of the Sarbanes-Oxley Act was to:

a. Increase the cost of compliance with federal regulations.
b. Force foreign companies to delist from U.S. capital market exchanges.
c. Improve the quality and transparency of financial reporting.
d. Increase the compliance burden for small companies.
Q7. An organization’s appropriate tone at the top promoting ethical conduct is an

example of:
a. Ethics sensitivity.
b. Ethics incentives.
c. Ethical behavior.
d. Consequentialist.
Q8. An independent director is one who:
a. Did not attend a school supported by the company.
b. Does not have outside relationships with other directors.
c. Does not have any other relationships with the company other than his or her
directorship.
Q9. The chairperson of the board of directors and CEO should be leaders with:
a. Vision and problem solving skills.
b. The ability to motivate.
c. Business acumen.
Q10. A board that is elected in a classified system is known as a:

a. Diversified board.
b. Staggered board.
c. Rotating board.
d. Declassified boar
STRUCTURE AND CONTROL WITH STRUCTURAL ORGANISATIONS:

Question 1
What is the term for organizational development through a formally designed organizational
structure?
a) Organic
b) Mechanistic
c) Formal
d) Structured
Question 2
How can organisational structures that are characterised by democratic and inclusive styles of
management be described?
a) Hierarchical
b) Bureaucratic
c) Flat
d) Functional
Question 3
Functional structures help to create...
a) teamwork
b) specialisation
c) project work groups
d) multi-skilled employees
Question 4
Which writer is most associated with bureaucratic structures?
a) Henry Fayol
b) Max Weber
c) Adam Smith
d) Mary Parker Follett
Question 5
What is not an advantage of a hierarchical structure?
a) Clear chain of command
b) Quick response to change
c) Discipline and stability
d) Small span of control
Question 6
Specialisation is a feature of which organisational structure
a) Matrix
b) Divisional
c) Multi-divisional
d) Functional
Question 7
What is the term for an autonomous business entity within an overall corporate enterprise which
is set apart from other areas of the business?
a) Subsidiary
b) Strategic partnership
c) Strategic alliance
d) Strategic business unit
Question 8
What is a virtual organisation?
a) An organisation that uses information and communications technologies (ICT's) to
coordinate activities without physical boundaries between different functions
b) An organisation that uses internet technologies to sell products to customers
c) An organisation that manages the supply chain using digital technologies
d) An organisation that coordinates the workforce via video conferencing
Question 9
What is a strategic alliance?
a) Any form of partnership between one firm and another
b) Formal agreement committing two or more firms to exchange resources to produce
products or services
c) Formal agreement to share profits from a shared investment
d) Formal agreement to share knowledge
Question 10
What is not a purpose of an organisational structure?
a) To coordinate people and resources
b) To organised lines of communication
c) To formalize authority
d) To limit workers' rights
LEADERSHIP IMPLICATION FOR STRATEGY:
Question 1:- A significant change in strategy calls for a complete overhaul of the
a) Organization resources
b) Organization structure, systems, processes, resources
c) Business activities
d) None of these
Question 2:- Change management is essential for strategy execution following the:
a) Drastic change in environmental and competitive conditions
b) need for resource allocation
c) reduction in barriers to change
d) business imperatives
Question 3:- The critical 7 S model was developed and created by reputed consulting firm:
a) McKinney
b) Bain & Co
c) A T Kearney
d) Accenture
Question 4:- A ………………...Top Management team may infuse desired changes for
spearheading successful strategic change
a) Heterogeneous
b) Homogenous
c) Aggressive
d) Motivated
Question 5:- Change in culture, attitude, and mindset calls for:

a) engagement, involvement and motivation of employees
b) Rigorous performance appraisal
c) Performance benchmarking
d) Organization design change
Question 6:- If change management initiatives are successful then the firm may
a) Measure results and reinforce the same
b) Reorganize resources
c) Bring about rapid change always
d) explore expansion options
Question 7:- Partnership with firm like NIKE and VISA are typical examples of which form of
collaboration
a) Strategic Alliance
b) 100% FDI
c) Network arrangements
d) All of these
Question 8:- Under International Level Strategy - the distribution of Wrigley's chewing gum
using EID Parry channel network is a typical example
a) Piggybacking
b) 60:60 Joint Venture
c) Licensing
d) Export Management
Question 9:- Strategic leadership facilitates strategy execution through

a) Exploitation of core competencies
b) elimination of non-core competencies

c) non cohesive functioning
d) business integration
Question 10:- Business ethics suggests that business should be run profitably without causing:
a) Unnecessary environmental damage
b) Depletion of resources
c) Insider trading
d) All of these
Question 11:- The Balanced Scorecard Model was a model first developed by:
a) Johnson & Scholes
b) NORTON & KAPLAN
c) Mintzberg
d) Michael Porter
Question 12:- The difference between strategy formulation and strategy implementation is that:
a) Strategy is developed by Top Management Team and implemented by Managers
b) Strategy is created by a few but implemented by all
c) Strategy is customer centric and implementation is operations centric
d) All of these
Question 13:- A functional organization structure created for implementing cost leadership
strategy will emphasize more on:
a) Marketing
b) Technology and process efficiency
c) Human Resource Intervention
d) Corporate Finance
Question 14:- A functional organization structure created for implementing differentiation related
strategies will emphasize more on:
a) Cutting Unwarranted costs
b) Marketing and New Product Development Initiatives
c) Legal and Administrative efficiency
d) Recruiting Productive Manpower
Question 15:- Contingency planning is a scenario where a firm has in place

a) Identical strategy to be executed irrespective of environmental changes
b) Different strategy alternatives available for different environmental scenarios
c) Combination strategies only
d) Expansion and diversification strategies only
Question 16:- An international structure in which local operations imitate those of the home
country, and which is dominated by home-nation personnel is an ________approach
a) Polycentric
b) Ethnocentric
c) Regio centric
d) Transnational
Question 17:- Recognizing and admiring employees for their contribution in the workplace is
indicative of
a) Feel good factor
b) Non-Monetary Motivation strategy
c) Nondiscrimination of employees
d) Equal Opportunity for all
Question 18:- Which one of the following is not a part of the Critical 7S model
a) Strategy
b) Style
c) Settings
d) Staff
Question 19:- Which one of the following is not a part of Business Ethics
a) Equal Opportunity employer
b) Marketing quality goods at most competitive prices
c) Window dressing of balance sheet
d) Avoiding insider trading
Question 20:- Change in style of functioning of organization calls for significant modification in
a) Organization response
b) Decision Making
c) Organization Culture and approach
d) None of these
Question 21:- Which of the following is not PART of the Balanced Scorecard Model
a) Financial Perspective
b) Customer Perspective
c) Internal audit
d) Innovation and Learning
Question 22:- Strategy audit is performed to identify:

a) Critical gaps between targets and achievements
b) Chalk out corrective actions
c) Both A and B
d) A only
Question 23:- When a firm seeks the benefits of global integration and local adaptation, it is best
described as which type of strategy
a) Multinational
b) Global
c) Multi-Domestic
d) Transnational
Question 24:- Democratic leadership is a phenomenon which implies

a) Junior Employees have no say
b) Senior officials are empowered
c) Involvement and consultation with all employees prior to business decision-making
d) All employees are empowered
Question 25:- Under 7S framework Systems imply which of the following

a) Recruitment Policy
b) IT up gradation
c) Innovative work ethics
d) Set of standardized procedures
Question 26:- Which of the following is an example of Lack of Corporate Governance

a) Satyam-Maytas financial irregularities
b) Inappropriate organization structure
c) Failure of Enron project in India
d) Both options A and C
Question 27:- Effective strategy execution calls for Business Process Reengineering with a view
to
a) achieve cost and process efficiency
b) Outsource non-core activities
c) Automate systems and avoid duplication of tasks
d) All of these
Question 28:- Audit and review are done periodically and continuously on the basis of
performance related to
a) Sales and Marketing
b) Business Operations
c) Finance
d) All Business functions
Question 29:- Firms forming a cartel is a typical example of

a) Non-Collusive oligopoly
b) Aggressive actions
c) Undercutting competitors
d) Collusive oligopoly
Question 30:- Corporate Governance is a tool for ensuring strategy execution in line with
objectives by putting in place
a) Suitable organization processes
b) optimal utilization of resources
c) proper system of planning
d) Transparency, accountability and disclosure of information
ENTREPRENEAUL IMPLICATIONS FOR STRATEGY

1 In real life, entrepreneurs are those that…

a) Robbers that exploit their workers
b) Generate business success
c) Generate business success through hard and long hours of work
d) Robbers that exploit their workers and generate business success.
2 The definition of entrepreneurship holds the promise of….

a) Financial difficulties and hardship
b) Limited expansion
c) Growth, unlimited expansion and long-term financial gain
d) Growth, expansion and long term financial gain
3 The terms entrepreneur and owner manager is used interchangeable and

describes a person that…
a) Manages a small business
b) That starts up a small business
c) That starts up and manages a small business
d) All above statements are incorrect
4 Entrepreneurship can be defined as…

a) The act of initiating, creating, building, expanding and sustaining a venture and
gathering The necessary resources to exploit an opportunity in the marketplace for
long-term wealth and capital gain
b) The act of creating, building, expanding and sustaining a venture, building an
entrepreneurial team and gathering the necessary resources to exploit an opportunity
in the marketplace for long-term wealth and capital gain
c) The act of initiating, creating, building, expanding and sustaining a venture, building
an entrepreneurial team and gathering the necessary resources to exploit an
opportunity in the marketplace for long-term wealth and capital gain
d) The act of initiating, creating, building, building an entrepreneurial team and

gathering the necessary resources to exploit an opportunity in the marketplace for
long-term wealth and capital gain
5 A basic survivalist is…

a) This person operates as an entrepreneur to survive for the first three months after
setting up a business.
b) This person operates as an entrepreneur to survive until he or she obtains an
entrepreneurial opportunity
c) This person operates as an entrepreneur to survive until he or she obtains a formal
sector job or entrepreneurial opportunity
d) This person operates as a small business manager until he or she obtains a formal sector job or
entrepreneurial opportunity.
6 A Pre-entrepreneur is…
a) Involved in welfare-based entrepreneurship where profit maximization is less
important than the collective
b) Involved where profit maximization is less important than the collective
c) Involved in welfare-based entrepreneurship
d) Involved in welfare-based entrepreneurship for profit maximization only
7 A subsistence entrepreneur is…

a) Involved in dependent income-generating activities operating as a small-scale vendor
b) Involved in independent income-generating activities operating as a small-scale
vendor
c) Involved in independent income-spending activities operating as a small-scale vendor
d) Involved in independent income-generating activities operating as a large-scale
vendor
8 A Micro entrepreneur is….

a) A formal-sector entrepreneur with zero to 10 employees
b) A formal-sector entrepreneur with 1 to 10 employees
c) A formal-sector entrepreneur with zero to 15 employees
d) A formal-sector entrepreneur with 1 to 15 employees
9 A small-scale entrepreneur is ….
a) A formal-sector entrepreneur with 11 to 50 employees
b) A formal-sector entrepreneur with 11 to 49 employees
c) A formal-sector entrepreneur with 16 to 49 employees
d) A formal-sector entrepreneur with 16 to 50 employees
10 Entrepreneurial companies are different from small business companies in that
they…
a) Are innovative and growth driven
b) Are not creating jobs for themselves but are wealth driven
c) Create wealth that is sustainable for future generation to come
d) All of the above
Q. The Four Stages In The Life Cycles Of A Business Are:

A) Recruiting, Hiring, Promotion, Evaluation
B) Introduction, Growth, Maturity, Decline
C) Job Analysis, Job Design, Description, Job Evaluation
D) Planning, Implementing, Evaluating, Revision
Ans B
Q. The Job Characteristics Model Includes:

A) Implementation, Attitude Surveys, Responses, Feedback
B) Motivation Factors And Incentives
C) Skill Variety, Task Identity, Task Significance, Autonomy, Feedback
D) Job Analysis, Task Significance, And Feedback
Ans C
Q. Which Is Not An Example Of The Life Cycle Stages Of Human Resource Development?
A) Introduction
B) Growth
C) Middle Age
D) Maturity
Ans C
Q. The Strategic Role Of Hr Management Includes:

A) Planning
B) Attainment Of Organizational Objectives
C) Viewing The Strategic Role Of Hr Management In The Same Context As Financial,
Technological, And Other Resources
D) All Of The Above
Ans D
Q. Employers Must Consider Which One Of The Following Geographic And Competitive
Concerns In Making Hr Plans?
A) Employee Resistance To Geographic Relocation
B) Organizational Restructuring
C) Balancing Work And Family
D) Education And Employment Shifts
Ans A
Q. Human Resource Management Is Conducted To Achieve_______________ Goals.

A) Management
B) Supervisory
C) Individual
D) Organizational
E) Individual And Organizational
Ans E
Q. Which Is An Hr Practice Typical Of An Organization That Can Be Defined As

“Prospector”?
A) Promote From Within
B) External Staffing
C) Less Training
D) Extensive Training
E) B And C
Ans E
Q) Which Of The Following Methods Is Not A Mathematical Method For Forecasting Hr

Demand?
A) Simulation Models
B) Productivity Ratios
C) Estimates
D) Statistical Regression Analysis
Ans C
Q) In The Future, Hr Managers Will Have To Deal With All Of The Following Workforce
Changes, Except.
A) More Racially Diverse Workforce
B) A Skills Shortfall Among Workers
C) An Abundance Of Entry Level Workers
D) An Older Workforce
Ans C
Q) All Of The Following Could Be Considered Steps In Forecasting, Except:

A) Understanding External Conditions
B) Projecting Future Staffing Requirements
C) Projecting The Supply Of Labor
D) A Job Analysis
Ans D
Q) Horizontal Integration Is Concerned With

(A) Production
(B) Quality
(C) Product Planning
(D) All Of The AbovE
Ans A
Q) It Refers To Formal And Informal Rules, Regulations And Procedures That Complement
The Company Structure
(A) Strategy
(B) Systems
(C) Environment
(D) All Of The Above
Ans B
174) Micro Environment Is The ………. Environment Of A Company.
(A) Working
(B) Human
(C) External
(D) Internal
Ans D
175) Techniques Used In Environmental Appraisal Are

(A) Single-variable Extrapolation/Multivariable Interaction Analysis
(B) Structured/ Unstructured Expert/Inexpert Opinion
(C) Dynamic Modes And Mapping
Ans D
Q) It Enables The Strategists To Take Corrective Action At The Right Time

(A) Implementation Control

(B) Special Alert Control
C) Strategic Surveillance Control
(D) Premise Control
Ans D
Q) Like Roots Of A Tree, ________of Organization Is Hidden From Direct View.

(A) Performance
(B) Strategy
(C) Core Competence
Ans C
Q) Changes In Company ………. Also Necessitates Changes In The Systems In Various

Degrees
(A) Structure
(B) System
(C) Strategy
(D) Turnover
Ans B
Q) The Actual Performance Deviates Positively Over The Budgeted Performance. This Is An
Indication Of ……….. Performance.
(A) Superior
(B) Inferior
(C) Constant
(D) Any Of The Above
Ans A
Q) Criteria For Making An Evaluation Is (Are)

(A) Consistency With Goals
(B) Consistency With Environment
(C) Money
Ans D
Q). The ………. Of Any Organization Is “The Aggregate Of All Conditions, Events And
Influences That Surround And Affect It.”
(A) System
(B) Environment
(C) Structure
(D) Strategy
Ans D
Q. Identify The Managerial Function Out Of The Following Functions Of Hr Managers.

A. Procurement
B. Development
C. Organizing
D. Performance Appraisal
Ans C
Q. Which Of The Following Is An Example Of Operative Function Of Hr Managers?

A. Planning
B. Organizing
C. Procurement
D. Controlling
Ans C
Q. The Scope Of Human Resource Management Includes

A. Procurement
B. Development
C. Compensation
D. All Of The Above
Ans D
Q. Human Resource Management Is Normally In Nature
A. Proactive
B. Reactive
C. Combative
D. None Of The Above
Ans A
Q. The Human Resource Management Functions Aim At

A. Ensuring That The Human Resources Possess Adequate Capital, Tool, Equipment And
Material To Perform The Job Successfully
B. Helping The Organization Deal With Its Employees In Different Stages. Of Employment
C. Improving An Organization’s Creditworthiness Among Financial Institutions
Ans B
Q Which Of The 'following Aptly Describes The Role Of Line Managers And Staff
Advisors,
Namely Professionals?
A. Staff Advisors Focus More On Developing Hr Programs While Line Managers Are More
Involved In The Implementation Of Those Programs.
B. Line Managers Are Concerned More About Developing Hr Programs Whereas Staff
Advisors Are More Involved In Implementing Such Programs.
C. Staff Advisors Are Solely Responsible For Developing, Implementing And Evaluating The Hr
Programs While Line Managers Are Not All Involved In Any Matters Concerning Hr.
D. Line Managers Alone Are Responsible For Developing, Implementing And Evaluating The
Hr Programs While Staff Advisors Are Not All Involved In Any Matters Concerning Hr.
Q. Human Resource Management Is The Formal Part Of An Organization Responsible For All
Of The Following Aspects Of The Management Of Human Resources Except:
A. Strategy Development And Analysis
B. Systems, Processes, And Procedures
C. Policy Making, Implementation, And Enforcement
D. Management Of The Organization’s Finances
Ans D
Q. Organization Relies On The Following Sources Of Capital

A. Cultural, Human And System Capital
B. Social, Cultural And Human Capital
C. Cultural, Human And Source Capital
Ans B
Q. To Address The Challenges And Opportunities They Face Organizations Engage In' A
Process Of Strategic
Management. Strategic Management Is:
A. Short-term Focused And Composed Of Organizational Strategy, Including Strategy
Formulation
And Implementation
B. Long-term Focused And Composed Of The Organization’s Mission, Vision And Value
Statements
C. Long-term Focused And Composed Of Organizational Strategy, Including Strategy
Formulation
And Implementation
D. Short-term Focused And Composed Of The Organization’s Mission, Vision And Value
Statements
Ans D
Q. Strategic Human Resource Management Involves:

A. Planning, Foresight And Analytical Decision Making
B. Setting Employment Standards And Policies
C. Linking Human Resources With Strategic Objectives To Improve Performance
D. All Of The Above
Ans D
Q) Who Says That & Management Objectives Is The Specific And Expected Goals Which
Determines A Manager's Area And Give Suggestion For Direct To His Efforts."
A.Glueck And Jauch
B.Thompson And Strickland
C.G. R. Terry
D.None Of These
Ans C
Q) In The Case Where An Organization Acquires Its Supplier, This Is An Example Of

A .Horizontal Integration
B. Forwards Vertical Integration
C. Backwards Vertical Integration
D.None Of The Above
Ans B
Q) The Strategic Management Process Is The Way In Which Strategists Determine Objectives
And
A Make Recording
B .Make Coordinating
C .Make Strategic Decisions
D .Make Planning
Ans D
Q) Which Is The Step In The Process Of Strategic Decision-making?

A .Problem Diagnosis
B .The Selection Of A Solution
C .Problem Awareness
D.All Of The Above
Ans D
Q) Which Statement Is True?
A .The Strategic Management Involve The Determination Of The Organization’s Mission,

Strategic Policies, And Strategic Objectives
B .Strategic Management Is A Stream Of Decisions And Action Which Leads To The
Development Of An Effective Strategy Or Strategies To Help Achieve Corporate Objectives
C. The Strategic Management Process Is The Way In Which Strategists Determine Objectives
And Make Strategic Decisions.
D.All Of The Above.
Ans D
Q) The Strategy Evaluation Factors Include

A .Contributory Relationships
B.Mvc-host Country Relationships
C. Financial Measures
D.All Of The Above
Ans D
Q) Thompson And Strickland Say That The Use Of Joint Venture As A Strategic Alternative Is
Becoming Popular, Because
A. It Is A More Flexible And Adaptable To Rapidly Changing Technological And Market

Conditions Than A Formal Joint Venture
B .It Can Readily Accommodate Multiple Partners
C. It Provides A Favored Mechanism To Take Strategically Important Diversification
Opportunities
D.All Of The Above
Ans D
Q) The Average Employee Performance Bonus Is __________ Percent Of Pay For Individual
Performance, _________ Percent Of Pay For Group Productivity, And _________ Percent Of
Pay
For Company-wide Profitability.
A.10.5; 5.5; 2.8
B.6.8; 5.5; 6.4
C.10.8; 8.5; 12.4
D.15.4; 12.4; 10.4

Ans B
Q) Which Is The Functional Area Of Strategic Management?

A .Production Or Operations
B .Finance
C .Marketing
D.All Of The Above
Ans D
Q) ____________ System Is Basically One Of Private Enterprise In Which Decisions About

What And How Much To Produce Are Left To Discretion Of Owners And Managers
A .Political System
B. Capitalistic Economic System
C. Economic System
D .Legal System
Ans B
Q) If Change Management Initiatives Are Successful Then The Firm May

A) Measure Results And Reinforce The Same
B) Reorganize Resources
C) Bring About Rapid Change Always
D) Explore Expansion Options
Ans B
Q) Partnership With Firm Like Nike And Visa Are Typical Examples Of Which Form Of
Collaboration
A) Strategic Alliance
B) 100% Fdi
C) Network Arrangements
D) All Of These
Ans A
Q) Under International Level Strategy - The Distribution Of Wrigley's Chewing Gum

Using Eid
Parry Channel Network Is A Typical Example
A) Piggybacking
B) 60:60 Joint Venture
C) Licensing
D) Export Management
Ans A
Q) Strategic Leadership Facilitates Strategy Execution Through

A) Exploitation Of Core Competencies
B) Elimination Of Non-core Competencies
C) Non Cohesive Functioning
D) Business Integration
Ans A
Q) Business Ethics Suggests That Business Should Be Run Profitably Without Causing:
A) Unnecessary Environmental Damage
B) Depletion Of Resources
C) Insider Trading
D) All Of These
Ans D
Q) The Balanced Scorecard Model Was A Model First Developed By:

A) Johnson & Scholes
B) Norton & Kaplan
C) Mintzberg
D) Michael Porter
Ans B
Q) The Difference Between Strategy Formulation And Strategy Implementation Is That:

A) Strategy Is Developed By Top Management Team And Implemented By Managers
B) Strategy Is Created By A Few But Implemented By All

C) Strategy Is Customer Centric And Implementation Is Operations Centric
D) All Of These
Ans D
Q) A Functional Organization Structure Created For Implementing Cost Leadership Strategy

Will Emphasize More On:
A) Marketing
B) Technology And Process Efficiency

C) Human Resource Intervention
D) Corporate Finance
Ans D
Q) A Functional Organization Structure Created For Implementing Differentiation Related

Strategies Will Emphasize More On:
A) Cutting Unwarranted Costs
B) Marketing And New Product Development Initiatives
C) Legal And Administrative Efficiency
D) Recruiting Productive Manpower
Ans B
Q) Contingency Planning Is A Scenario Where A Firm Has In Place

A) Identical Strategy To Be Executed Irrespective Of Environmental Changes
B) Different Strategy Alternatives Available For Different Environmental Scenarios
C) Combination Strategies Only
D) Expansion And Diversification Strategies Only
Ans B
Q. Which Approach To The Study Of Leadership Emphasizes The Role Of Situational

Factors And How These Moderate The Relationship Between Leader Traits Or
Leadership Behaviors And Leadership Effectiveness?
A) Leader-oriented Approach.
B) Contingency Approach.
C) Transactional Approach.
D) Transformational Approach
Ans B
Q. Porter Has Designed A Framework To Help Understand Why Certain Countries

Achieve Global Competitive Advantage In Certain Industries. It Also Helps
Internationalizing Firms To Make Location Decisions. The Framework Is Called:
A) Porter's Value Chain
B) Porter's Five Forces
C) Porter's Generic Strategies
D) Porter's Diamond
Ans B
Q. It Is Generally Agreed That The Role Of Strategy Is To:

A) Make Best Use Of Resources
B) Make Profits For The Organization
C) Make The Best Products And Services
D) Achieve Competitive Advantage
Ans A
Q. Kay (1993) Sees The Strategy Of An Organization As Matching Internal

Capabilities With:
A) Its External Relationships
B) Its Customer Needs
C) The Industry Life Cycle
D) The External Environment
Ans A
Q. An Organization's External Environment Consists Of The General Or Macro

Environment And:
A) The Internal Environment
B) The Competitive Environment
C) The Specific Environment
D) The Micro-environment
Ans B
Q. The Term 'corporate Strategy' Concerns Strategy And Strategic Decisions

A) In The Private Sector Only.
B) Developed By The Senior Management In An Organization.
C) In Certain Types Of Organizations.
D) At All Levels In An Organization.
Ans D
Q. A Key Characteristic Of Strategic Decisions Is:

A) They Are Normally Definite Decisions About The Future Of The
Organization.
B) They Identify Specific Areas Of Strategic Interest For The
Management Of An Organization.
C) They Result In Better Organizational Performance.

D) They Are Likely To Be Concerned With, Or Affect, The Long-term Direction Of
An Organization.
Ans B
Q. It Is Possible To Identify Different Levels Of Strategy In An Organization, These

Are:
A) Corporate And Functional.
B) Corporate And Business
C) Strategic And Tactical.
D) Corporate; Strategic Business Unit; Operational.
Ans D
Q. An Organisation Mission Can Be Defined As:

A) The Overriding Purpose In Line With The Values Or Expectations Of
Stakeholders.
B) The Overriding Purpose Regardless Of The Values Or Expectations Of
Stakeholders.
C) The Organisation Business Plan.
D) The Desired Future State Of The Organisation.
Ans A
Q. Strategic Choices Require An Understanding Of:

A) The Business Environment, The Competition And The Strategic
Capability Of The Organisation.

B) The Key Drivers Of Change.
C) The Organisational Strengths And Weaknesses.
D) The Underlying Bases For Future Strategy At Business Unit And Corporate
Levels; The Options For Developing Strategy In Terms Of Directions And
Methods Of Development.
Ans A
Q. In Porter Five Forces, The 'threat Of New Entrants' Relates To:

A) Substitutes
B) Switching Costs
C) Buyer Power
D) Barriers To Entry
Ans D
Q. Brandenburger And Nalebuff Added A Sixth Force To Porter's Five Forces. It Is

Known As:
A) Seller Power
B) Complementors
C) Substitutes
D) Government Regulation
Ans B
Q. Barriers To Entry Into An Industry Are Likely To Be High If:

A) Switching Costs Are Low
B) Differentiation Is Low
C) Access To Distribution Channels Is High
D) Requirement For Economies Of Scale Is High
Ans D
Q. Buyer Power Is High If:

A) They Have Little Information
B) The Buyer Requires A High Quality Product For Their Own Production
C) Differentiation Is Low
D) Switching Costs Are Low
Ans D
Q. Competitive Rivalry Will Be High If:

A) There Are A Few Strong Players In The Industry
B) There Is A High Degree Of Differentiation
C) The Industry Is In Its Infancy
D) The Industry Is Fragmented
Ans B
Q. A Strategic Group Can Be Defined As:

A) A Group Of Key Resources And Competences That Are Necessary To Achieve Competitive
Advantage
B) A Group Of Customers That Have Similar Characteristics
C) An Industry Recipe
D) A Group Of Firms In An Industry Following The Same Or A Similar
Strategy
Ans D
Q. The Key Activities In The Strategic Management Process Are:

A) Analysis, Formulation, Review
B) Analysis, Implementation, Review
C) Formulation, Analysis, Implementation
D) Analysis, Formulation, Implementation
Ans D
Q. Strategy Analysis Is Also Referred To As:

A) Strategy Diagnosis
B) Rational Analysis
C) Situation Analysis
D) Swot Analysis
Ans D
Q. Strategy Formulation Takes Place At Two Levels. These Are:

A) Conscious And Subconscious
B) Implicit And Explicit
C) Values And Operational
D) Corporate And Business
Ans B
Q. The Policies Of An Organization Derive From Its:

A) Purpose
B) Vision
C) Objectives
D) Strategy
Ans C
Q. The Statement Of An Organization's Aspirations Can Be Found In The

Organization's:
A) Policies
B) Mission
C) Strategy
D) Vision
Ans D
Q. A Substitute Product Or Service Is:

A) A New Entrant Into The Industry
B) A Competitor's Product Or Service
C) A Less Attractive Way Of Meeting The Same Need
D) An Alternative Way Of Meeting The Same Need
Ans D
Q. Cross-functional Teams Are:

A) The Representative Voice Of Senior Management.
B) A Small Group Of Specialists Who Collaborate On A Task Force.
C) A Small Group Of People Who Come Together To Resolve Business Unit Issues.
D) A Small Group Of People From Different Departments Who Are Mutually
Accountable To A Common Set Of Performance Goals.
Ans D
Q. The Business Unit Strategy Has Three Major Components:

A) Business Mission, Department Mission, And Daily Plans
B) Competencies, Abilities, And Problem Statements
C) Marketing, Advertising And Pricing Objectives
D) Mission, Business Unit Goals, And Competencies
Ans D
Q. Disney Is In The Business Of:

A) Building Theme Parks.
B) Designing New Imaginative Characters.
C) Making Money.
D) Creating Entertainment, Fun And Fantasy.
Ans D
Q. A Useful Framework Used To Assess A Company's Investments/Divisions Is Called:
A) Corporate Insight Analysis
B) Company Productivity Analysis
C) Sbu Knowledge Analysis
D) Business Portfolio Analysis
Ans D
Q. Cash Cows Are Sbu's That Typically Generate:

A) Large Awareness Levels But Few Sales
B) Paper Losses In The Long Run
C) Problems For Product Managers
D) Large Amounts Of Cash
Ans D
Q. Business Unit Competencies Should Be Distinctive Enough To Provide

A) Clear Understanding Of Who You Want To Lead The Company
B) Opportunity To Compete On A Productivity Basis
C) Additional Strategic Mission
D) Competitive Advantage
Ans D
Q. Tqm Is A Strategy That Is Designed To Change The Quality Of A Product To Satisfy

Customer Needs By Using The Concept Of
A) Reverse Brainstorming
B) Brainstorming
C) Product Life Cycle Analysis
D) Benchmarking
Ans C
Q. Firms May View Growth Opportunities In These Terms:

A) New Markets, And Current And New Products
B) New Markets And New Products
C) Current Markets And Current Products
D) Current And New Markets, And Current And New Products
Ans D
Q. The Strategic Marketing Process Is How An Organization Allocates Its

Marketing Mix Resources To Reach Its:
A) Target Markets
B) Area Of Expertise
C) Competition
D) Stated Business Ideas
Ans A
Q. An Effective Shorthand Summary Of The Situation Analysis Is A:
A) Swot Analysis
B) Sbu Analysis
C) Bcg Analysis
D) Competition Analysis
Ans A
Q. In The Strategic Marketing Process, Once You Get Results You Go Into The:
A) Control Phase
B) Marketing Plan
C) Planning Phase
D) Marketing Program
Ans D
Q. Ansoff Had Four Market-product Strategies To Expand Sales. They Included
(1) Market Penetration, (2) Product Development, (3) Market Development
And:
A) Diversification
B) Current Customer Retention
C) Distribution Enhancement
D) Product Simplification
Ans D
Q. Aggregating Prospective Buyers Into Groups Is Called:

A) Market Segmentation
B) Bcg Matrix Analysis
C) Grouping
D) Market Categorization
Ans D
Q. One Key To Effective Implementation Is Setting:

A) Schedule Of Events
B) Milestones
C) Good Managers In Motion
D) Goals
Ans D
Q.When Actual Performance Results Are Better Than What The Plan Called For,
Managers Should:
A) Find Creative Ways To Exploit The Situation.
B) Issue More Stock Options To Employees.
C) Increase Prices.
D) Ignore It.
Ans A
Q. Value For Shareholders Of A Firm Is Measured By:

A) Stock Performance And Profitability
B) Sales Revenue
C) Satisfactory Employee Targets
D) Profitable Year-end Balance Sheet
Ans A
Q. The _____ For Pepsico Is "We Believe Our Commercial Success Depends Upon
Offering Quality And Value To Our Consumers And Customers; Providing Products That
Are Safe, Wholesome, Economically Efficient And Environmentally Sound; And
Providing A Fair Return To Our Investors While Adhering To The Highest Standards Of
Quality."
A) Mission
B) Organizational Code Of Conduct
C) Functional Code
D) Benefits Statement
Ans A
Q. A Firm Can Acknowledge The Critical Importance Of Its _____, By Having Explicit
Goals That State Its Intention To Improve Work Conditions By Adding More Lighting
And Providing The Workers With More And Better Safety Equipment.
A) Employee Welfare
B) Market Share
C) Sales Revenue
D) Satisfaction
Ans A
Q. Porter Five Forces Is Based On The Structure _ Conduct _ ---paradigm In Industrial

Organizational Economics.
A- Product
B- Price
C- Place
D- Performance
Ans. D
Q. Sbu’s In The Matrix Can Be Represented As A Circle, The …… Exhibits The Size Of The
Market,
A- Radius
B- Diameter
C- Ares
D- Volume
Ans- A
Q. Strategic Management Involves The Related Concepts Of ……..

A- Strategic Planning
B - Strategic Thinking
C- Both (A) & (B)
D- None Of The Above
Ans- C
Q. These Units Typically Generate Cash In Of The Amount Of Cash Need To Maintain The
Business.
A- Cash Cows
B- Dog
C- Question Mark
D- Stars
Ans. B
Q. …….. Is Where A Company Has High Market Share In A Slow- Growing Industry.
A- Cash
B- Dogs
C- Question Marks
D- Stars
Ans. A
Q. They Depress A Profitable Company’s Return On Assets Ratio, Used By Many Investors
To Judge How Well A Company Is Being Managed.
A- Cash Cows
B- Dogs
C- Question Marks
D- Stars
Ans. B
Q. The Porter …. Forces Analysis Framework Helps To Determine The Competitive Rivalry
And Therefore Attractiveness Of A Market. It Is Used To Help Determine The Portfolio Of
Offerings The Organization Will Provide And In Which Markets.
A- Four
B- Five
C- Six
D- Three
Ans. B
Q. The Critical Characteristics That Define A Balanced Scorecard Are;

A- Its Focus On The Strategic Agenda Of The Organization Concer
B- The Selection Of A Small Number Of Date Items To Monitor
C- A Mix Of Financial And Non Financial Data Items.
D- All Of The Above
Ans. D
Q. Strategic Are Established To Set Direction, Focus Effort, Define Or Clarity The
Organization, And Provide Consistency Or Guidance In Response To The… …..
A- Environment
B- Company
C- Market
D- Industry
Ans. A
Q. ……… Analysis Aims To Identify The Key Internal And Factors Seen As Important To
Achieving Objective.
A- Swot
B -csr
C- Etop
D- Bcc
Ans. A
Q. ……… Is An Example Of A Closed-loop Controller Or Cybernetic Control To The

Management Of The Implementation Of A Strategy.
A- Balanced Scorecard
B- Swot
C- Cfr
D- Etop
Ans. A
Q. Design Of A Balanced Scorecard Is About The Identification Of A …… Number Of

Financial And Nonfinancial Measure And Attaching Targets To Them, So That When They Are
Reviewed It Is Possible To Determine Whether Current Perforation’ Meets Expectations’
A- Small
B- Large
C- No
D- Great
Ans. A
Q. It Involves Challenging The Assumption Underlying The Organization’s Strategic And

Value Proposition.
A- Strategic Planning
B- Strategic Thinking
C- Both (A) & (B)
Ans. B
Q. ……. Management Is Concerned Primarily With Improving Efficiency And Controlling Casts
Within The Boundaries Set By The Organization’s Strategy.
A- Financial
B- Operational
C- Strategic
D- Human Resource
Ans. C
Q. Attractiveness In This Context To The Overall Industry………

A- Profitability
B- Product
C- Price
D- Place
Ans. A
Q. The Attractiveness Of A ….. Is Demonstrated By How Beneficial It Is For A Company To

Enter And Compete Within This Market.
A- Market
B- Company
C- Industry
D- All Of The Above
Ans. C
Q. Strategic ….. Is Analytical In Nature And Refers To Formalized Procedures To Produce

The Data And Analysis Used As Inputs For Strategic Thinking, Which Synthesized The Data
Resulting In The Strategy.
A- Planning
B- Thinking
C- Directing
D- Organization
Ans. A
Q. ……………… Is A Form Of Corporate Self-regulation Integrated Into A Business Model.

A- Csr
B- Etop
C- Bcc
D- Vrio
Ans. A
Q. It Is Based On Various Factors, The Size Of The Market And The Rate At Which It Is
Growing, The Possible Of Profit, The Number Of Competitors Within The Industry And Their
Weakness.
A- Market Attractiveness
B- Business Strength
C- Both (A) & (B)
Ans. A
Q. Are Business Operating With A Low Market Share In A High Market. They Are A Starting
Point For Most Business.
A- Cash Cows
B- Dogs
C- Question Marks
D- Stars
Ans. A
Q. If Can Be Determined By Factors Within The Company It Self Such As Its Assets And
Holding, The Share It Company Holds In The Market And The Development Of This Share, The
Position In The Market Of Its Brand And The Loyalty Of Customers To This Brand,
C- Both (A) & (B)
Ans. B
Q. ……. Is A Strategy Performance Management Tool- A Semi Standard Structured Report,

Supported By Design Methods And Automation Tools, That Can Be Used By Managers To
Keep Track Of The Execution Of Activities By The Staff Within Their Control And To Monitor
The Consequences Arising From The These Actions.
A- Balanced Secured.
B- Swot
C- Csr
D- Etop
Ans. A
Q. ……… Have A Potential To Gain Market Share And Become Stars And Eventually Cash
Cows When Market Growing Slow,
A- Cash Cows
B- Dogs
C- Question Marks
D- Stars
Ans. C
Q. The External Factors May Include

A- Macroeconomic Matters
B- Technological Change
C- Legislation
D- All Of The Above
Ans- B
Q. These Units Typically “Break Even”, Generating Barely Enough Cash To Maintain The
Business’s Market Share
A- Cash Cows
B- Dogs
C- Question Marks
D- Stars
Ans. C
Q. They Are Gradually Question Marks With A Market Or Niche- Leading Trajectory, For,
Example: Amongst Market Share Front -runners In A High- Growth Sector
A- Cash Cows
B- Dogs
C- Question Marks
D- Stars
Ans. B
Q. ……. Management Involves The Formulation And Implementation Of The Major Goes And
Individual Taken By A Company’s Top Management On Behalf Of Owners, Based On
Communication Of Resources And An Assessment Of The Internal And Environment In Which
The Organization Compacts
A- Financial
B- Operation
C- Strategic
D- Human Resource
Ans.D
Q. …….. More Charitably Called Pets,Are Units With Low Market Share In A Mature, Slow-
growing
Industry.
A- Cash Cows
B- Dogs
C- Question Marks
D- Stars
Ans. C
Q. This Helps Decide Whether A Company Is Competent Enough To Compete In The Given
Markets (S) ;
C- Both (A) & (B)
Ans. B
Q. ….. .. Management Provides Overall Direction To The Enterprise And Involves Specifying
The Organization’s Objectives, Developing Policies And Plans Designed To Achieve These
Objectives, And Then Allocating Resources To Implement The Plans,
A- Financial
B- Operations
C- Strategic
D- Human Resource.
Ans.C
Q. ……. Is “A System Of Finding, Formulating, And Developing A Doctrine That Will Ensure
Long-term Success If Followed Faithfully”
A- Strategy
B- Vision
C- Mission
D- Objective
Ans. A
Q. Environmental Analysis Includes The;

A- Remote External Environmental
B- Industry Environment
C- Internal Environment
D- All Of The Above
Ans.C
Q. A ……….. Analysis Can Be Carried Out For A Company, Product, Place, Industry, Or
Person.
A- Swot
B- Csr
C- Etop
D- Bcg
Ans.A
Q. …….. Is Used To Find Find Competitive Advantage By Matching The Strengths To

Opportunities;
A- Matching
B- Converting
C- Both (A) & (B)
Ans.C
Q. ……….. Indirectly Also Provides A Useful Insight Into An Organisation’s Strategy-by

Requiring General Strategic Statement (E.G. Mission, Vision) To Be Precipitated Into More
Specific Tangible Forms
B- Swot
C- Csr
D- Etop
Ans. D
Q. This Helps The Company Allocate Resources And Is Used As An Analytical In Brand
Marketing. Product Management, Strategic Management And Portfolio Analysis.
A- Swot
B- Csr
C- Etop
D- Bcg
Ans. D
Q. …… Are Units With A High Market Share In A Fast-growing.

A- Cash Cows
B- Dogs
C- Question Markets
D- Stars
Ans. A
Q. …….. Policy Function As A Self-regulatory Mechanism Whereby A Business Monitors And

Ensures Its Active Compliance With The Spirit Of The Ethical And National Or International
Norms
A- Csr
B- Etop
C- Bcg
D- Vrio
Ans. C
Q. Strategic Planning May Also Refer To Control Mechanism Used To Implement The
Strategy.
A- Strategy Piercing
B- Strategy Sharing
C- Both (A) & (B)
Ans. D
Q. It Is The Method By Which This “Most Relevant” Information Is Determined (I.E. The
Design Process Used To Select The Content) That Most Differentials The Various The Versions
Of The Tooth In Circulation.
B- Swot
C- Csr
D- Etop
Ans. A
Q ….. Is To Convert Weakness Or Threats Into Strengths Or Opportunities.

A- Matching
B- Converting
C- Both (A) & (B)
Ans. C
Q. The Characteristics Of The Balanced Scorecard And Its Derivatives Is The Presentation Of
A Mixture Of … And Non- Financial Measures Each To A “Target Value Within A Single
Concise
Report.
A- Financial
B- Technical
C- Strategic
D- All Of The Above
Ans. D
Q. Swot Analysis Can Be Used Effectively To Build

A- Organizational Strategy
B- Personal Strategy
C- Both (A) & (B)
Ans. A
Q. …… Must Be Analyzed Carefully In Order To Determine Whether They Are Worth The
Investment Required To Grow Market Share.
A- Cash Cows
B- Dogs
C- Question Marks
D- Stars
Ans. C
Q. Firms Are Able To Apply Their …. Compellence, Business Model Or Network To Achieve A
Profit Above The Industry Average.
A- Core
B- Basis
C- Complex
D- All Of The Above
Ans- D
1. Integrated set of actions taken to produce goods and services at lowest cost to that of
competitors
 cost leadership strategy
 business strategy
 differentiation strategy
 competitive strategy
2. A company with a small share of a slow growing market
 star
 dog
 CASH COW
 Question mark
3. Continuous improvement of every process through use of data driven problem solving
approaches
 market segmentation
 focus strategy
 demographic segment
 TQM
4. Provide the assistance necessary for the primary activities to talce place
 core capability
 experence curve
 competence
 support activity
5. The activities and institutes involved with creating new knowledge and translating
knowledge into outputs products processes and materials
 technological segment
 sociocultural segment
 political segment
6. Condition in the general environment if exploited effectively helps company achieve
strategic competitiveness
 strategy
 opportunity
 industry
 complementors
7. Is measured by a products performance characteristics and by its attributes for which
customers are willing to pay
 value
 capabilities
 competence
 outsourcing
8. Firms offering similar products, operate in same market and same segment are called
 Competitors
 firms
 institutions
 market
9. Firm that responds to a competitive action after a significant time when opportunity is less
 competitive rivalry
 first mover
 second mover
 A late mover
10. Markets in which the firm’s competitive advantage are moderate are called
 fast cycle markets
 standard cycle markets
 slow cycle market
11. Nature and direction of the economy in which a firm competes
 economic environment
 demographic environment
 physical environment
12. The purchase of a value creating activity from an external supplier is called
 capabilities
 intangible resources
 core capability
 outsourcing
13. Are markets in which the firms competitive advantage are shielded from imitation
commonly for long periods and where imitation is costly
14. Use of economies of scale lead to operational efficiencies
 not true
 True
 not clear
 have less chances
15. A firms core strategy is
 corporate
 pricing strategy
 international strategy
16. Efficiency improvements through operating larger plants
 economies of scale
 experience curve
 product diffraction
 capital requirements
17. specifies the business or businesses in which the firm intends to compete and the
customers it intends to serve
 capability
 profit pool
 vision
 mission
18. Process that cluster people with similar needs is called

 market segmentation
19. The ongoing competitive action/response sequence between a firm and the competitor
affects the performance of both funs is called
 tactical action
 strategic action
 awareness
20. Composed of dimensions in the broader society that influences an industry and the firm
within it
1. global segment
2. opportunity
3. general environment
4. economic environment
21. a company with a large share of a slow growing market
1. cash cow
2. DOG
3. star
4. Question mark
22. Exists when the firms are able to sell above its competitive level
1. market segmentation
2. market power
3. multimarket competition
4. market
23. Concerned with population, size. Age structure. And income distribution is called
2. sociocultural segment
3. demographic segment
24. Competitive rivalry has the most effect on the first _____ strategy
1. business level strategy
2. corporate level strategy
3. acquisition
4. international
25. Exists when the value created by business units working together exceeds the value that
those same units create working independly
1. diversification
2. synergy
3. growth
4. stability
26. What a company can make do or perform better than its competitors
1. swot
2. distinctive competence
3. competence
4. VALUE
27. Strategy that minimizes risk by diversifying investments among various business
1. portfolio strategy
2. business strategy
3. pricing strategy
4. international strategy
28. Complex set of ideologies, symbols and core values shared! Brought the firm and
influences how firm conducts business refers to
1. organizational culture
2. global economy
3. management process
4. resources
29. Firms use strategic management process to achieve
1. above average returns

2. no returns
3. gross returns
4. net returns
30. Occurs when firms compete against each other in several products and geographical
region
4. competitive behavior
1. Composed of dimensions in the broader society that influences an industry and the firm
within it
1. global segment
2. opportunity
3. general environment
4. Economic environment
2. Competitive rivalry has the most effect on the first _____ strategy
5. business level strategy
7. acquisition
8. international
3. specifies the business or businesses in which the firm intends to compete and the
customers it intends to serve
 capability
 profit pool
 vision
 mission
4. Firms offering similar products, operate in same market and same segment are called
 Competitors
 firms
 institutions
 market
5. What a company can make do or perform better than its competitors
5. swot
6. distinctive competence
7. competence
8. VALUE
6. Exists when the firms are able to sell above its competitive level
6. market power
8. market
7. Firm that takes an initial competitive action
1. competitive rivalry
2. first mover
3. competence
4. international
8. A market based move that involves a significant commitment of organisational resources
difficult to implement and reverse
1. strategic action
2. tactical action
3. second mover
4. late move
9. A market based move to fine tune a strategy
1. strategy
2. Tactical action
3. institutions
4. market
10. Is measured by a products performance characteristics and by its attributes for which
customers are willing to pay
• value
• capabilities
• competence
• outsourcing
11. a company with a small share of a slow growing market
star
dog
CASH COW
Question mark
12. Occurs when firms compete against each other in several products and geographical
region
8. competitive behavior
13. Economy in which goods and services, people skills and ideas move freely
Global economy
technological economy
big economy
social economy
14. Investors uncertainty about the economic gains or losses that will result from a particular
investment
resources
profits
risk
returns
15. Exists when the value created by business units working together exceeds the value that
those same units create working independly
diversification
synergy
growth
stability
16. Concerned with population, size. Age structure. And income distribution is called
6. sociocultural segment
7. demographic segment
17. Use of economies of scale lead to operational efficiencies
 not true
 True
 not clear
 have less chances
18. The central companies in a strategic group
core capability
experence curve
core firms
distinctive competence
19. A broad strategy used to achieve strategic goals and guide the strategic alternatives
grand strategy
business strategy
pricing strategy
international strategy
20. Returns in excess of what an investor expects to earn from other investments with similar
amount of risks
high returns
above average returns
low returns
gross returns
21. Process that cluster people with similar needs is called
market segmentation
business strategy
demographic segment
economic environment
22. Exists when the firms good or service exceed customers expectation
Quality
competition
institutions
market
23. Are markets in which the firms competitive advantage are shielded from imitation
commonly for long periods and where imitation is costly
24. Total profits earned in an industry at all points along the value chain
Profit pool
net profit
gross profit
net loss
25. The purchase of a value creating activity from an external supplier is called
capabilities
intangible resources
core capability
outsourcing
26. Which firm has the least resource similarity?
small family restaurants Pizza hut
target vs Wal Mart
HO VS DEL
FedEx vs Ups
27. Set of actions taken to produce goods and service at the lowest cost
business level strategy
focus strategy
cost leadership strategy
TQM
28. Nature and direction of the economy in which a firm competes
 demographic environment
 physical environment
29. Raymond brand producing only for men is a part of
business level strategy
focus strategy
cost leadership strategy
competitive strategy
fast cycle markets
standard cycle markets
slow cycle market
competitive strategy

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[STRATEGIC MANAGEMENT]

STRATEGIC MANAGEMENT AND COMPETITIVINESS:

1. Horizontal integration is concerned with

3. Micro environment is the ………. environment of a company.

4. Techniques used in environmental appraisal are

5. Match The Following

Question Your Answer

(A) a-1, b-3, c-2, d-4

(B) a-2, b-1, c-4, d-3

(C) a-4, b-2, c-3, d-1

(D) a-2, b-3, c-4, d-1

6. It enables the strategists to take corrective action at the right time

7. Like roots of a tree, ________of organization is hidden from direct view.

10.Criteria for making an evaluation is (are)

12. Strategic management is mainly the responsibility of

18.The major issue(s) of appraisal system is (are)

19. They have time based utility

b) the organizational structure of multinational firms.

1. Gelation is water loss in form of drops on tips of

2. Length of human kidney is

3. Hilus, a depression present near center of

4. Less intake of water and alcohol consumption are major cause of

5. Blood cleaning by artificial method is

7: External environment of business is

8: The low income economies are sometimes referred to as -

9 The economic environment of a business includes

10.An analysis of the external environment enables a firm to identify -

COMPETATIVE RIVELRY AND DYNAMICS:

5. Assigning of resources to stronger ones to form weaker markets are classified as

6.The dynamics of organizational environments can be classified according to which pair of

9. Why is the concept of the industry life-cycle relevant to corporate strategy?

iv) It stresses the environment to the exclusion of internal influences on strategy.

i), ii), iii) and iv)

The organisation's turnover, profits, costs and gearing

16. Which of the following statements best defines market segmentation?

21. What can an environmental analysis be used to provide an organisation with?

22. Which of the following is not a key factor for success?

Identification of specific parts of a market and the development of different market

1-The following is (are) non-verbal communication

2-The handshake that conveys confidence i

3-Communication is the task of imparting ________

5-Match the following

A-2, B-4, C-1, D-3

7-The following is the permanent records for business

8-Body of a letter is divided into ________ parts.

9-As per Newman and Summer Communication is the Exchange of

All of the above

11-________ of the letter consists of main message.

12-A common fallacy about manager is that he must be

13-The following is (are) the most effective ways of communication.

14-The _____ of business letter is called layout.

STRATEGIC ACQUISITION AND RESTRUCTURING:

the information effect

d) Most economic activity is regional - not global.

A global consumer culture means that:

COOPRATIVE IMPLICATION FOR STRATEGY

Human and financial resources

Customer loyalty improvement

CORPORATE GOVERNANCE AND ETHICES:

Q1. The primary stakeholders are:

Q3. The corporate governance structure of a company reflects the individual

Q6. One of the objectives of the Sarbanes-Oxley Act was to:

Q7. An organization’s appropriate tone at the top promoting ethical conduct is an

Q) Under International Level Strategy - The Distribution Of Wrigley's Chewing Gum

Q. An Organization's External Environment Consists Of The General Or Macro

Q. The Term 'corporate Strategy' Concerns Strategy And Strategic Decisions