Advanced Strategic Management MCQs : This section focuses on the "Advanced Strategic Management". These Multiple Choice Questions (MCQs) should be practiced to improve the Advanced Strategic Management skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.
Question 1
The word “strategy” is derived from the Greek word “_____"
A. Strategos
B. Stratum
C. Strategy
D. All of these
Question 2
________ can also be defined as “a general direction set for the company and itsvarious components to achieve a desired state in the future.
A. Goal
B. Objectives
C. Mission
D. Strategy
Question 3
_________ is concerned with the determination of the basic long-term goals and theobjectives of an enterprise, and the adoption of courses of action and allocation of resources necessary for carrying out these goals.
A. Policies framing
B. Mission statement
C. Target setting
D. Strategic Management
Question 4
Which of the following is not a characteristic of strategic Management?
A. Strategic issues require top-management decisions
B. Strategic issues involve the allocation of large amounts of company resources
C. Strategic issues are future oriented
D. None of these
Question 5
_________ strategy occupies the highest level of strategic decision making and covers actionsdealing with the objective of the firm, acquisition and allocation of resources and coordination of strategies of various SBUs for optimal performance.
A. SBU
B. Corporate level
C. Functional
D. Operational
Question 6
The fundamental purpose for the existence of any organization is described by its
A. policies
B. mission
C. procedures
D. strategy
Question 7
The fundamental purpose of an organization’s mission statement is to
A. Create a good human relations climate in the organization
B. Define the organization’s purpose in society
C. Define the operational structure of the organization
D. Generate good public relations for the organization
Question 8
The acronym SWOT stands for
A. Strategic Weakness Overcoming Tools
B. Services, Works, Operation and Tools
C. Strengths, weakness, Overcome and Threats
D. Strengths, Weaknesses, Opportunities, and Threats
Question 9
Which of the following is not a characteristic of strategic management that makes itdifferent from other types of management?
A. It is interdisciplinary.
B. It has an external focus.
C. It has an internal focus.
D. It concerns the present direction of the organization.
Question 10
Which of the following is an issue considered in developing corporate strategies?
A. What business(es) are we in?
B. What direction are we going?
C. What resources do we have to implement our strategies?
D. What businesses are we in and what to do with those businesses?
Question 11
Which of the following is NOT a major element of the strategic management process?
A. Formulating strategy
B. Implementing strategy
C. Assigning administrative tasks
D. Evaluating strategy
Question 12
Competitive advantage can best be described as:
A. increased efficiency.
B. what sets an organization apart
C. a strength of the organization.
D. intangible resources.
Question 13
is the foundation of blue ocean strategy.
A. Innovation
B. Value creation
C. Value innovation
D. value cost trade-off
Question 14
The various organizational routines and processes that determine how efficiently andeffectively the organization transforms its inputs into outputs are called:
A. strengths.
B. core competencies.
C. capabilities.
D. customer value.
Question 15
When defining strategic management, the most important thing to remember is that itis:
A. Not as easy as you think
B. Mainly the province of senior managers
C. A living evolving process
D. More conceptual than practical
Question 16
An organisation’s strategy:
A. remains set in place longer than the mission and objectives
B. generally, forms over a period of time as events unfold
C. tends to be formed at the same time the mission is developed and objectives are formulated
D. is usually conceived at a single time when managers sit down and work out a comprehensive strategic plan for the next 3-5 years
Question 17
The primary focus of strategic management is:
A. strategic analysis
B. the total organisation
C. strategy formulation
D. strategy implementation.
Question 18
Which of the following is not an advantage of strategic management?
A. It provides organisations with a clearer sense of direction and purpose
B. It helps improve the political, economic, social and technological environment of the organisation
C. It helps orientate management decisions to relevant environmental conditions
D. It helps organisations be proactive rather than reactive
Question 19
Which of the following defines what business or businesses the firm is in or should be in
A. Business strategy
B. Corporate strategy
C. Functional strategy
D. National strategy
Question 20
Which of the following defines how each individual business unit will attempt toachieve its mission?
A. Business strategy
B. Corporate strategy
C. Functional strategy
D. National strategy
Question 21
________ strategy defines the uses of corporate strategy and specific tactics for eachmarket.
A. Business strategy
B. Corporate strategy
C. Functional strategy
D. Operational strategy
Question 22
_________ strategy defines the day to day actions need to deliver the corporate andbusiness strategies.
A. Core strategy
B. Operational Strategy
C. Corporate strategy
D. Functional strategy
Question 23
Which of the following focuses on supporting the corporate and business strategies?
A. Competitive strategy
B. Corporate strategy
C. Operational strategy
D. Mission strategy
Question 24
Which one of the following is not a primary task of strategic managers?
A. Establishing strategic objectives
B. Developing the steps to follow in implementing operational level plans
C. Defining the business and developing a mission
D. Developing a strategy
Question 25
The task of strategy choice involves:
A. developing plans and activities which will improve the organisation’s performance and competitive position
B. determining how the organisation can be more market and efficiency oriented
C. monitoring whether the organisation is achieving good financial performance
D. keeping the organisation free of debt
Question 26
Which one of the following is at the core of strategic management?
A. Choosing which organisational objectives to focus on
B. Being alert for opportunities to change work responsibilities
C. Adapting the organisation to a changing external environment
D. Choosing whether to make decisions autocratically or on the basis of participation
Question 27
The corporate level is where top management directs:
A. all employees for orientation
B. its efforts to stabilize recruitment needs
C. overall strategy for the entire organization
D. overall sales projections
Question 28
The three main organizational levels are:
A. corporate level, business level, functional level
B. corporate level, business unit level, functional level
C. corporate strategy level, business unit level, functional level
D. corporate strategy level, business level, specialist level
Question 29
The functional level strategy of marketing function is divided into various operating levelssuch as marketing research, sales promotion, etc. these types of strategies are called.
A. Business strategy
B. Corporate strategy
C. Functional strategy
D. Operational strategy
Question 30
Which of the following is/are not an element/s of strategic management Process?
A. Scanning
B. Formulation
C. Implementation
D. None of these
Question 31
Which one of the following is NOT included in the Porter’s Five Forces model?
A. Potential development of substitute products
B. Bargaining power of suppliers
C. Rivalry among stockholders
D. Rivalry among competing firms
Question 32
What is meant by the term ‘Stakeholder’?
A. A person who is not related with a business.
B. A person who is related with a business.
C. A person who owns a business.
D. A person who purchases the shares of a business.
Question 33
The strategic management process is
A. a set of activities that will assure a temporary advantage and average returns for the firm.
B. a decision-making activity concerned with a firm’s internal resources, capabilities, and competencies, independent of the conditions in its external environment.
C. a process directed by top-management with input from other stakeholders that seeks to achieve above-average returns for investors through effective use of the organization’s resources.
D. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness.
Question 34
The goal of the organization’s is to capture the hearts and minds of employees, challenge them, and evoke their emotions and dreams.
A. vision
B. mission
C. culture
D. strategy
Question 35
A firm’s mission:
A. is a statement of a firm’s business in which it intends to compete and the customers which it intends to serve.
B. is an internally-focused affirmation of the organization’s financial, social, and ethical goals.
C. is mainly intended to emotionally inspire employees and other stakeholders.
D. is developed by a firm before the firm develops its vision.
Question 36
The environmental segments that comprise the general environment typically willNOT include:
A. demographic factors.
B. sociocultural factors.
C. substitute products or services.
D. technological factors.
Question 37
An analysis of the economic segment of the external environment would include all of the following EXCEPT:
A. interest rates.
B. international trade.
C. the strength of the U.S. dollar.
D. the move toward a contingent workforce.
Question 38
Product differentiation refers to the:
A. ability of the buyers of a product to negotiate a lower price.
B. response of incumbent firms to new entrants.
C. belief by customers that a product is unique.
D. fact that as more of a product is produced the cheaper it becomes per unit.
Question 39
Which of the following is NOT an entry barrier to an industry?
A. expected competitor retaliation
B. economies of scale
C. customer product loyalty
D. bargaining power of suppliers
Question 40
Switching costs refer to the:
A. cost to a producer to exchange equipment in a facility when new technologies emerge.
B. cost of changing the firm’s strategic group.
C. one-time costs suppliers incur when selling to a different customer.
D. one-time costs customers incur when buying from a different supplier.
Question 41
New entrants to an industry are more likely when (i.e., entry barriers are low when…)
A. it is difficult to gain access to distribution channels.
B. economies of scale in the industry are high.
C. product differentiation in the industry is low.
D. capital requirements in the industry are high.
Question 42
All of the following are forces that create high rivalry within an industry EXCEPT
A. numerous or equally balanced competitors.
B. high fixed costs.
C. fast industry growth.
D. high storage costs.
Question 43
According to the five factors model, an attractive industry would have all of the following characteristics EXCEPT:
A. low barriers to entry.
B. suppliers with low bargaining power.
C. a moderate degree of rivalry among competitors.
D. few good products substitute.
Question 44
Internal analysis enables a firm to determine what the firm:
A. can do.
B. should do.
C. will do.
D. might do.
Question 45
An external analysis enables a firm to determine what the firm:
A. can do.
B. should do.
C. will do.
D. might do.
Question 46
is/are the source of a firm’s , which is/are the source of the firm’s
A. Resources, capabilities, core competencies
B. Capabilities, resources, core competencies
C. Capabilities, resources, above average returns
D. Core competencies, resources, competitive advantage
Question 47
In the airline industry, frequent-flyer programs, ticket kiosks, and e-ticketing are all examples of capabilities that are
A. rare.
B. causally ambiguous.
C. socially complex.
D. valuable.
Question 48
Firms with few competitive resources are more likely
A. to not respond to competitive actions.
B. respond quickly to competitive actions.
C. delay responding to competitive actions.
D. respond to strategic actions, but not to tactical actions.
Question 49
Competitors are more likely to respond to competitive actions that are taken by
A. differentiators.
B. larger companies.
C. first movers.
D. market leaders.
Question 50
______ can be defined as the art and science of formulating, implementing andevaluating cross-functional decisions that enable an organization to achieve its objectives.
A. Strategy formulation
B. Strategy evaluation
C. Strategy implementation
D. Strategic management
Question 51
Which individuals are most responsible for the success and failure of an organization?
A. Strategists
B. Financial planners
C. Personnel directors
D. Stakeholders
Question 52
Which of the following is an element of a firm’s remote external environment?
A. Competition
B. Political agencies
C. Suppliers
D. Trade union
Question 53
Long-term objectives should be all of the following except:
A. measurable.
B. continually changing.
C. reasonable.
D. challenging.
Question 54
What are guides to decision making?
A. laws
B. rules
C. policies
D. procedures
Question 55
According to Greenley, strategic management offers all of these benefits except that
A. it provides an objective view of management problems.
B. it creates a framework for internal communication among personnel.
C. it encourages a favourable attitude toward change.
D. it maximizes the effects of adverse conditions and changes.
Question 56
The vision and mission statement can often be found
A. in the SEC report.
B. in annual reports.
C. on customer receipts.
D. on supplier invoices.
Question 57
The process of performing an external audit needs to include:
A. only top-level managers, as it’s a planning function.
B. as many managers and employees as possible.
C. primarily front-line supervisors
D. between 15 to 20 managers for it to be valid
Question 58
Which of the following is not a stage of strategy formulation techniques?
A. Formulation Framework
B. Matching stage
C. External factor evaluation
D. Decision stage
Question 59
ST Strategies is an important strategy to
A. Match weakness with opportunities of the firm
B. Overcome external threats
C. Obtain benefit from its resources
D. Overcome its weakness and reducing threats
Question 60
The immediate external environment includes:
A. Divisions
B. S. B. U. s
C. Competitors
D. Management
Question 61
The comprises economic and social conditions, political priorities and technological developments, all of which must be anticipated, monitored, assessed and incorporated into the executive’s decision making.
A. Internal environment
B. Task environment
C. Operating environment
D. Societal environment
Question 62
Strategic management involves the , directing, and controlling of acompany’s strategy-related decisions and actions.
A. Financing; marketing
B. Planning; financing
C. Planning; organizing
D. Marketing; planning
Question 63
A strategy is a company’s
A. Value statement
B. Pricing policy
C. Game Plan to outsmart competitor
D. Long-term objective
Question 64
Strategy-formulation concepts and tools
A. Do not differ greatly for different size and type of organizations
B. Differ greatly for different size and type of organizations
C. Do not differ greatly for profit or non-profit organizations but differ in small and large organizations
D. None of the mentioned options
Question 65
Annual objectives
A. Are not critical to success
B. Serve as guidelines for action, directing and channelling efforts and activities of organization members
C. Are not important for employee motivation and identification
D. Do not provide a basis for organizational design
Question 66
Which of the following resources is used by all organizations to achieve desiredobjectives?
A. Financial resources,
B. Physical resources
C. Human resources
D. All of the mentioned options
Question 67
Strategic management is
A. A pure science.
B. Based mainly on intuition.
C. Needed mainly when organizational performance falls.
D. Based on the use of quantitative and qualitative information.
Question 68
Large-scale, future-oriented plans, for interacting with the competitive environment to achieve company objectives refers to its
A. Strategy
B. Goals
C. Competitive analysis
D. Dynamic policies
Question 69
Strategic issues require which level of management decisions?
A. Operative
B. Top
C. Front-line
D. Middle
Question 70
Which of these basic questions should a vision statement answer?
A. What is our business?
B. Who are our employees?
C. Why do we exist?
D. What do we want to become?
Question 71
Strategic management process activates in the sequence of
A. Environmental scanning, Strategy formulation, Implementation, c ontrol and evaluation
B. Strategy formulation, Environmental scanning, Implementation, control and evaluation
C. Environmental scanning, Strategy Implementation, formulation, c ontrol and evaluation
D. Strategy formulation, Implementation, control, evaluation, Environmental scanning
Question 72
“A possible and desirable future state of an organization” is called:
A. Mission
B. Vision
C. Strategy implementation
D. None of above
Question 73
Strategic decisions are based on what managers , rather than on what they
A. Know; forecast
B. React to; anticipate
C. Forecast; know
D. Compromise with; analyse
Question 74
“To improve economic strength of society and function as a good corporate citizen on alocal, state, and national basis in all countries in which we do business”. This is a mission statement that contains:
A. Self-concept
B. Economic concern
C. Products or Services
D. Concern for Public Image
Question 75
Strategic-management audit is known as:
A. Environmental scanning
B. Strategy formulation
C. Strategy control
D. Strategy evaluation
Question 76
Forecasting tools can be broadly categorized into two groups. Those are:
A. Qualitative, Operational
B. Quantitative, Operational
C. Qualitative, Quantitative
D. Regression and time series analysis
Question 77
identifies a firm’s major competitors and their particular strengths and weaknesses in relation to a sample firm’s strategic position.
A. Competitive Profile Matrix
B. External Factor Evaluation matrix
C. Internal Factor Evaluation Matrix
D. Boston consulting group matrix
Question 78
Organizing means an identifiable group of people contributing their efforts towards the attainment of same goal. It is important at the time of:
A. Environmental scanning
B. Strategy formulation
C. Strategy Implementation
D. Strategy evaluation
Question 79
Which statement best describes intuition?
A. It represents the marginal factor in decision-making.
B. It represents a minor factor in decision-making integrated with analysis.
C. It should be coupled with analysis in decision-making.
D. It is better than analysis in decision-making.
Question 80
What are the means by which long-term objectives will be achieved?
A. Strategies.
B. Strengths
C. Weaknesses.
D. Policies.
Question 81
When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit.
A. economic
B. political
C. technological
D. competitive
Question 82
is not part of an external audit.
A. Analysing competitors
B. Analysing financial ratios
C. Analysing available technologies
D. Studying the political environment
Question 83
Typically, how many strategic decision levels are in the corporate decision-makinghierarchy?
A. 3
B. 4
C. could be more than 5
D. 2
Question 84
External assessment is performed in which of the strategic management phase?
A. Strategy formulation stage
B. Strategy implementation stage
C. Strategy evaluation stage
D. All of the given options
Question 85
Political variables have a significant effect on
A. Strategy formulation and implementation
B. Strategy formulation and evaluation
C. Strategy implementation and evaluation
D. Strategy formulation, implementation and evaluation
Question 86
Strategic decisions ostensibly commit the firm for
A. 1 -2 years
B. The short term
C. one years
D. A long time, typically five years
Question 87
Social responsibility is a critical consideration for a company’s strategic decision makers since
A. Stockholders demand it
B. The mission statement must express how the company intends to contribute to the societies that sustain it
C. It increases a company’s profits
D. It helps make decisions
Question 88
Which of the following are signs of weakness in a company’s competitive position?
A. A return-on-equity is below 25% and earnings per share of less than Rs. 2.00
B. A price set by the firm higher than its rivals
C. A declining market share, poor product quality and few sales in market
D. Lower revenues and profit margin and narrow product line than the market leader
Question 89
It directs at developing new products before competitors do at improving product quality or at improving manufacturing processes to reduce costs.
A. Marketing
B. Opportunity analysis
C. Research and development
D. Management
Question 90
“Identifying and evaluating key social, political, economic, technological and competitive trends and events”. Which of the followings best describes this statement?
A. Developing an effective mission statement
B. Conducting an internal audit
C. Performing an external audit
D. Formulating strategy
Question 91
The central purpose of strategic evaluation is ____________
A. Evaluate effectiveness of strategy to achieve organisational objectives
B. Evaluate effectiveness of control system to measure achievements.
C. Evaluate effectiveness of strategies to be implemented efficiently.
D. Evaluate effectiveness of the strategy implementation process.
Question 92
Strategy evaluation at the level involves using specific performancemeasures-qualitative and quantitative-for each functional area.
A. organizational
B. operational
C. functional
D. production
Question 93
________ is described as the process which examines all the components, internal orexternal, that has an influence on the performance of the organization.
A. Environmental analysis
B. Competitor analysis
C. Macro analysis
D. Any of the above
Question 94
Which of the following is not an external environment component of a business?
A. Competitors
B. Corporate structure
C. Suppliers
D. customers
Question 95
________ analysis begins with identifying present as well as potential competitors.
A. Environment
B. Internal
C. Competitor
D. External
Question 96
Characteristics of a business which makes it disadvantageous relative to competitors.
A. Threat
B. Failure
C. Weakness
D. None of these
Question 97
Elements in a company’s external environment that allow to formulate and implementstrategies to increase profitability.
A. Strength
B. Success
C. opportunity
D. productivity
Question 98
In PEST analysis, “P” stands for_________
A. Profitability factors
B. Productivity factors
C. Political factors
D. Pricing factors
Question 99
In PEST analysis, “S” stands for_________
A. Stability factors
B. Social factors
C. Sales factors
D. Strategic factors
Question 100
In PEST analysis, “T” stands for_________
A. Tactical factors
B. Threat factors
C. Task factors
D. Technological factors
Question 101
In BCG Matrix, “BCG” stands for______
A. Budgeted and Controlled Growth
B. Basic Categorised Growth
C. Boston Consultancy Group
D. Bata Consultancy Group
Question 102
It is often useful to complete a _____ analysis before completing a ______ analysis.
A. SWOT, PEST
B. Competitor, PEST
C. PEST, SWOT
D. Strategic, Competitor
Question 103
______ factors include population growth, age, demographics and attitudes towardshealth.
A. Political
B. Economical
C. Social
D. None of these
Question 104
Which of the following is/are coming under ‘Porter’s Five Forces?
A. Threat of new potential entrants
B. Threat of substitute product/services
C. Bargaining power of suppliers
D. All of these
Question 105
Which of the following is/are not coming under ‘Porter’s Five Forces?
A. Threat of new potential entrants
B. Threat of substitute product/services
C. Bargaining power of employees
D. None of these.
Question 106
‘Four Corner Analysis model’ is developed by
A. Robert S Kaplan
B. Peter F Drucker
C. C K Prahalad
D. Michael Porter
Question 107
Which of the following is/are component/s of ‘Four Corner Analysis’?
A. future goals
B. current strategy
C. assumptions
D. All of these
Question 108
Which of the following is/are not component/s of ‘Four Corner Analysis’?
A. Drivers
B. Capabilities
C. Assumptions
D. None of these
Question 109
_________is a favourable position a business holds in the market which results in morecustomers and profits.
A. Competitive Advantage
B. Core Competency
C. Strength
D. Any of the above
Question 110
Which of the following is not a basic determinant of Competitive advantage?
A. Target market
B. Competition
C. USP
D. None of the above.
Question 111
Horizontal integration is concerned with;
A. Production
B. Quality
C. Product planning
D. All of the above
Question 112
It refers to formal and informal rules, regulations and procedures thatcomplement the company structure
A. Strategy
B. Systems
C. Environment
D. All of the above
Question 113
Micro environment is the ………. environment of a company.
A. Working
B. Human
C. External
D. Internal
Question 114
Techniques used in environmental appraisal are
A. single-variable extrapolation/multivariable interaction analysis
B. Structured/ unstructured expert/inexpert opinion
C. Dynamic modes and mapping
D. All of the above
Question 115
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
Question 116
Changes in company ………. also necessitates changes in the systems in variousdegrees
A. structure
B. system
C. strategy
D. turnover
Question 117
The actual performance deviates positively over the budgeted performance. This isan indication of ………... performance.
A. superior
B. inferior
C. contant
D. any of the above
Question 118
Criteria for making an evaluation is (are)
A. Consistency with goals
B. Consistency with environment
C. Money
D. All of the above
Question 119
They have time-based utility
A. Goals
B. Resources
C. both ‘A’ and ‘B’
D. None of the above
Question 120
Formal systems are adopted to bring & amalgamation ofdecentralized units into product groups.
A. Manpower
B. Co-ordination
C. Production
D. All of the above
Question 121
Change in company’s ………. gives rise to problems necessitating a new ……… to be made
A. structure, strategy
B. strategy, structure
C. structure, structure
D. strategy, strategy
Question 122
Systems are formal and informal rules and regulations that complement the company ………..
A. strategy
B. structure
C. system
D. environment
Question 123
The reasons for acquisition are
A. Increased market power
B. Increased diversification
C. Increased speed to market
D. All of the above
Question 124
Market research is conducted by
A. By employees
B. By research agencies
C. By consultants
D. All of the above
Question 125
Vertical integration is concerned with
A. supply chain
B. production
C. Quality
D. planning
Question 126
ETOP stands for .
A. environmental threat & opportunity project
B. environmental threat & opportunity profile
C. environmental treaty & opportunity profile
D. environmental threat & optimum profile
Question 127
The control process requires the following types of information
A. Planned performance
B. Variances
C. Reasons
D. All of the above
Question 128
It is designed to monitor a broad range of events inside and outside the companythat are likely to threaten a firm’s strategy
A. Strategic surveillance
B. Strategic planning
C. both ‘A’ and ‘B’
D. None of the above
Question 129
Harvest strategy is used for
A. Dogs
B. Question marks
C. Cash cow
D. both ‘A’ and ‘B’
Question 130
Attack strategies are
A. Frontal attack
B. Flank attack
C. Encirclement attack
D. all of the above
Question 131
Three C’s affecting today’s companies are
A. Customer, Competition, Change
B. Cost, Competition, Change
C. Customer, Competition, Cost
D. Customer, Cost, Change
Question 132
For strategic learning, the balanced scorecard supplies
A. Two elements
B. Three elements
C. Four elements
D. Five elements
Question 133
In strategic learning, an element defines the articulation of the company's
A. Review process
B. Operational goals
C. Shared vision
D. Business model
Question 134
Business strategy can be thought of a set of hypotheses about the relationship of
A. Input and output
B. Cause and effect
C. Transformation processes
D. Modeling and planning
Question 135
Scorecard facilitates the strategy review essential for
A. Strategic learning
B. Strategic plan
C. Strategic domain
D. Strategic model
Question 136
A business strategy should be viewed as a set of
A. Domain
B. Models
C. Hypothesis
D. Procedures
Question 137
A sustained or sustainable competitive advantage requires that:
A. the value creating strategy be in a formulation stage.
B. competitors implement the strategy.
C. other companies not be able to duplicate the strategy.
D. average returns be earned by the company.
Question 138
The strategic management process is:
A. a set of activities that is guaranteed to prevent organizational failure.
B. a process concerned with a firm's resources, capabilities, and competencies, but not the conditions in its external environment.
C. a set of activities that to date have not been used successfully in the notfor-profit sector.
D. a dynamic process involving the full set of commitments, decisions, and actions related to the firm.
Question 139
Which of the following is NOT an assumption of the Industrial Organization, or I/O,model?
A. Organizational decision makers are rational and committed to acting in the firm's best interests.
B. Resources to implement strategies are not highly mobile across firms.
C. The external environment is assumed to impose pressures and constraints that determine the strategies that result in superior performance.
D. Firms in given industries, or given industry segments, are assumed to control similar strategically relevant resources.
Question 140
Which of the following is NOT an assumption of the resource-based model?
A. Each firm is a unique collection of resources and capabilities.
B. All firms possess the same strategically relevant resources.
C. Resources are not highly mobile across firms.
D. Firms acquire different resources and capabilities over time.
Question 141
In contrast to the industrial organization model, in a resource-based model, which of thefollowing factors would be considered a key to organizational success?
A. unique market niche.
B. weak competition.
C. economies of scale.
D. loyal employees.
Question 142
The resource-based model of the firm argues that:
A. all resources have the potential to be the basis of sustained competitive advantage.
B. resources are not a source of potential competitive advantage.
C. the key to competitive success is the structure of the industry in which the firm competes.
D. resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies.
Question 143
Strategic mission:
A. is a statement of a firm's unique purpose and scope of operations.
B. is an internally-focused affirmation of the organization's societal and ethical goals.
C. does not limit the firm by specifying the industry in which the firm intends to compete.
D. is developed by a firm before the firm develops its strategic intent.
Question 144
The environment is composed of elements in the broader society that can influence an industry and the firms within it.
A. general
B. competitor
C. sociocultural
D. industry
Question 145
The environmental segments that comprise the general environment typically will NOTinclude:
A. demographic factors.
B. sociocultural factors.
C. substitute products or services.
D. technological factors.
Question 146
The economic environment refers to:
A. the nature and direction of the economy in which a firm competes or may compete.
B. the economic outlook of the world provided by the World Bank.
C. an analysis of how the environmental movement and world economy interact.
D. an analysis of how new environmental regulations will affect our economy.
Question 147
An industry is defined as:
A. a group of firms producing the same item.
B. firms producing items that sell through the same distribution channels.
C. firms that have the same seven-digit standard industrial code.
D. a group of firms producing products that are close substitutes.
Question 148
An integrated and coordinated set of commitments and actions designed to exploitcore competencies and gain a competitive advantage in a specific product market is a definition of:
A. business strategy.
B. core competencies.
C. sustained competitive advantage.
D. strategic mission.
Question 149
Business-level strategies are concerned specifically with:
A. creating differences between the firm's position and its rivals.
B. the industries in which the firm will compete.
C. how functional areas will be organized within the firm.
D. how a business with multiple physical locations will operate one of those locations.
Question 150
A cost leadership strategy provides goods or services with features that are:
A. acceptable to customers.
B. unique to the customer.
C. highly valued by the customer.
D. able to meet unique needs of the customer
Question 151
A firm successfully implementing a differentiation strategy would expect:
A. customers to be sensitive to price increases.
B. to charge premium prices.
C. customers to perceive the product as standa
Question 152
A differentiation strategy provides products that customers perceive as having:
A. acceptable features.
B. features of little value relative to the value provided by the low-cost leader's product.
C. features for which the customer will pay a low price.
D. features that are non-standardized for which they are willing to pay a premium.
Question 153
When implementing a focus strategy, the firm seeks:
A. to be the lowest cost producer in an industry.
B. to offer products with unique features for which customers will pay a premium.
C. to avoid being stuck in the middle.
D. to serve the specialized needs of a market segment.
Question 154
_________ is a participative, systematic approach to planning and implementing a constantorganizational improvement process.
A. WPM
B. TQM
C. SCM
D. QC
Question 155
SCM Stands for ________
A. Suppler-Customer and Money
B. Supply Chain Management
C. Supplier and Customer Management
D. Sales Cost Management.
Question 156
VMOST Analysis tool is developed by:
A. C K Prahlad
B. Rakesh Sondhi
C. Michael Porter
D. R S Cooper
Question 157
VMOST stands for______
A. Value, Money, Organisation, Sales, Target
B. Vision, Mission, Objective, Strategy, Tactics
C. Value, Mission, Objective, Strategy, Tactics
D. Vision, Money, Objective, Strategy, Technology
Question 158
A _________ is defined as an organization that has developed the capacity tocontinuously learn, adapt, and change.
A. Change management
B. Strategic Change
C. Learning organisation
D. Strategic organisation
Question 159
Vertical integration strategies
A. Extend a company's competitive scope within the same industry by expanding its operations across more parts of the industry value chain
B. Are one of the best strategic options for helping companies win the race for global market leadership
C. Offer good potential to expand a company's line up of products and services
D. All of these
Question 160
The two best reasons for investing company resources in vertical integration (either forward or backward) are to
A. Expand into foreign markets and/or control more of the industry value chain
B. Broaden the firm's product line and/or avoid the need for outsourcing
C. Enable use of offensive strategies and/or gain a first mover advantage over rivals in revamping the industry value chain
D. Strengthen the company's competitive position and/or boost its profitability
Question 161
For backward vertical integration into the business of suppliers to be a viable and profitable strategy, a company
A. Must first be a proficient manufacturer
B. Must be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop-off in quality
C. Must have excess production capacity, so that it has ample in-house ability to undertake additional production activities
D. None of these
Question 162
The strategic impetus for forward vertical integration is to
A. Gain better access to end users and better market visibility
B. Achieve the same scale economies as wholesale distributors and/or retail dealers
C. Control price at the retail level
D. None of these
Question 163
A good example of vertical integration is
A. A global public accounting firm acquiring a small local or regional public accounting firm
B. A large supermarket chain getting into convenience food stores
C. A crude oil refiner purchasing a firm engaged in drilling and exploring for oil
D. All of these.
Question 164
A strategic alliance:
A. Is a collaborative arrangement where companies join forces to defeat mutual competitive rivals
B. Involves two or more companies joining forces to pursue vertical integration
C. Is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control and mutual dependence
D. All the above.
Question 165
Which of these is/are a basic activity of strategy evaluation?
A. Reviewing the underlying internal and external factors that represent the bases of current strategies
B. Measuring organizational performance
C. Taking corrective actions
D. All of the above
Question 166
Which of these is the cornerstone of effective strategy evaluation?
A. Adequate and timely feedback
B. Quality and quantity of managers
C. Smaller ratio of top- to lower-level management
D. Evaluation preceding implementation stage
Question 167
The purpose of strategy evaluation is to
A. increase the budget annually.
B. alert management to problems or potential problems.
C. make budget changes.
D. evaluate employees’ performance.
Question 168
Strategy evaluation is becoming with the passage of time.
A. increasingly difficult
B. much simpler
C. very convenient
D. an unnecessary activity
Question 169
The overall strategy which is comprehensive in nature and provides the basis forstrategic direction is known as___
A. Corporate strategy
B. Grand strategy
C. General strategy
D. All of these
Question 170
Which of the following is/are stability strategies?
A. No Change strategy
B. Caution Strategy
C. Profit Strategy
D. All of these
Question 171
Which of the following is not Growth/Expansion strategies?
A. Caution strategy
B. Vertical integration
C. Diversification
D. Cooperation
Question 172
Which of the following is retrenchment strategy?
A. Turn around
B. Divestiture
C. Liquidation
D. All of these
Question 173
Diversification strategy' is used to gain market share in
A. current product in current market
B. new products for new markets
C. new products in new market
D. new products in current markets
Question 174
Défense strategies in which the leader stretches over new market territories using marketdiversification is classified as
A. mobile defence
B. static defence
C. stable defence
D. unstable defence
Question 175
Strategies such as diversification, penetration and market development are the part of
A. extensive growth
B. intensive growth
C. integrative growth
D. disintegrative growth
Question 176
Strategies such as diversification, penetration and market development are part of
A. extensive growth
B. intensive growth
C. integrative growth
D. disintegrative growth
Question 177
For intensive growth, the company first considers whether it could gain moremarket share with its current products in their current market, using a
A. Market-penetration strategy
B. Market development strategy
C. Product-development strategy
D. Diversification strategy
Question 178
Select right order of intensive growth strategies:
A. market-development strategy, market-penetration strategy, product development strategy
B. Market-penetration strategy, market development strategy, product development strategy
C. market-penetration strategy, product development strategy, market- development strategy
D. None of the above
Question 179
Market development strategy focuses on
A. Current products and new markets
B. Current products and current markets
C. New products and current markets
D. New products and new markets
Question 180
Product development strategy for achieving intensive growth focuses on:
A. Current products and new markets
B. Current products and current markets
C. New products and current markets
D. New products and new markets
Question 181
Acquiring one or more suppliers for integrative growth is
A. Horizontal integration
B. Forward integration
C. Backward integration
D. None of the above
Question 182
Acquisition of competitors for integrative growth is
A. Horizontal integration
B. Forward integration
C. Backward integration
D. None of the above
Question 183
In , the company would seek new products that have marketing ortechnological synergies with existing product lines appealing to a new group of customers.
A. Concentric diversification
B. Horizontal diversification
C. Conglomerate diversification
D. None of the above
Question 184
In , the company can develop new products that are technologically unrelatedto its current product line and still can appeal to its current customers.
A. Concentric diversification
B. Horizontal diversification
C. Conglomerate diversification
D. None of the above
Question 185
In , the company may seek new opportunities that have no relation with itscurrent technology, products, or markets.
A. Concentric diversification
B. Horizontal diversification
C. Conglomerate diversification
D. None of the above
Question 186
Gary Hamel believes that
A. Senior management hammers out the strategy and hands it down.
B. Imaginative ideas on strategy exist in many places within a company
C. The strategy comes from outside the organization
D. None of the above
Question 187
Redefining how company gets paid or create innovative new revenue streams isof Business innovation.
A. Value capture dimension
B. Brand dimension
C. Networking dimension
D. Offerings dimension
Question 188
Michael Porter has proposed generic strategies that provide a good startingpoint for strategic thinking.
A. 3
B. 5
C. 4
D. 6
Question 189
A target market definition tends to focus on selling a product or service to a
A. Current market
B. Potential market
C. Both a & b
D. None of the above
Question 190
A strategic market definition tends to focus on selling a product or service to a
A. Current market
B. Potential market
C. Both a & b
D. None of the above
Question 191
General Electric has classified its businesses into strategic business units.
A. 42
B. 45
C. 49
D. None of the above
Question 192
SBU (strategic business unit) is a unit that is usually responsible for its ownbudgeting, new product decisions, hiring decisions, and price setting.
A. Semi-autonomous
B. Autonomous
C. Non-autonomous
D. None of the above
Question 193
The purpose of identifying company's strategic business unit is:
A. Developing separate strategies
B. Assign appropriate funding
C. Both a & b
D. All of above are false
Question 194
The BCG's Growth Share matrix uses and of market growth ascriteria to make investment decisions.
A. Relative market share and quarterly rate
B. Relative market share and annual rate
C. Absolute market share and annual rate
D. Absolute market share and quarterly rate
Question 195
Opportunities to achieve further growth within current businesses are:
A. Intensive Opportunities
B. Integrative Opportunities
C. Diversification Opportunities
D. None of the above
Question 196
Opportunities to build or acquire businesses that are related to current businesses:
A. Intensive Opportunities
B. Integrative Opportunities
C. Diversification Opportunities
D. None of the above
Question 197
The useful framework for detecting new is called a "product-market expansion grid"
A. Intensive opportunities
B. Integrative opportunities
C. Diversification opportunities
D. None of the above
Question 198
Under _________ approach of implementation strategies are moving from bottom to upward.
A. Commander approach
B. Organisational change approach
C. Collaborative approach
D. Crescive approach
Question 199
The most complex structure of Strategic organisation is:
A. Functional
B. Transnational
C. Matrix
D. Divisional
Question 200
Hofer’s Product matrix is also known as:
A. GE Matrix
B. BCG Matrix
C. TOWS matrix
D. Market Evaluation Matrix