Mgt603 Strategic Management Mcqs Vuabid

1.

2.

3.

Which strategies aim at improving internal weaknesses by taking advantage of external opportunities? a. b. c. d. e.

SO WO SW ST WT

4. How many cells are in a SWOT Matrix? a. b. c. d. e.

Two Four Six Eight Nine

5. What are two external dimensions of the SPACE Matrix? a. b. c. d. e.

Environmental stability and industry strength Environmental stability and competitive advantage Industry strength and competitive advantage Competitive advantage and financial strength Financial strength and industry strength

6. In the SPACE analysis, what does a (+6, +3) strategy profile portray? a. b. c. d. e.

A strong industry An unstable environment A stable environment A weak industry A weak financial position

7. Selling all of a company’s assets in parts for their tangible worth is called a. Joint venture. b. Divestiture. c. Concentric diversification. d. Liquidation. e. Unrelated integration 8. Which stage of the strategy-formulation framework involves the Quantitative Strategic Planning Matrix? a. b.

Stage 1 Stage 2

c. d. e.

Stage 3 Stage 4 Stage 5

9.

10. Which strategy should be implemented when a division is responsible for an organization’s overall poor performance? a. Backward integration

b. c. b. c.

Divestiture Forward integration Cost leadership Related diversification

11. What analytical tool has four quadrants based on two dimensions: competitive position and market growth? a. b. c. d. e.

Competitive Profile Matrix Internal-External Matrix SPACE Matrix Grand Strategy Matrix QSPM.

12. Which of the following is not true about objectives? a. b. c. d. e.

They should be communicated throughout the organization. They should have an appropriate time dimension. They should incorporate policies. They should be measurable. They should be consistent.

13. _______ is not a major factor that commonly prohibits effective resource allocation. a. b. c. d. e.

Under protection of resources Organizational politics Vague strategy targets Reluctance to take risks Lack of sufficient knowledge

1) Strategy-formulation concepts and tools do not differ greatly a. b. c. d.

For small, large, for profit, or nonprofit organizations Among different types and sizes of organizations Both of the options mentioned options None of the mentioned options

2) Which of the following statement is true about strategy implementation? a. The role of managers and employees in strategy implementation should not build upon prior involvement in strategy-formulation activities b. Managers and employees in an organization should participate early and directly in strategy-implementation decisions c. Strategists' genuine personal commitment to implementation is not a necessary thing for employees.

d. All of the mentioned implementation

options

are

true

about

strategy

3) Establishing annual objectives is a a. Centralized activity b. Controlled activity c. Decentralized activity d. None of the mentioned options 4) Restructuring is also referred to as a. b. c. d.

Starting over. De-layering. Diversifying. Job security

5) The primary benefit sought from restructuring is a. b. c. d.

Employee involvement. Cost reduction. Increased morale. Increased number of hierarchical levels in the organization.

6) _______ is not a major factor that commonly prohibits effective resource allocation. a. b. c. d.

Under protection of resources Organizational politics Vague strategy targets Reluctance to take risks

7) Which of the following is not true about objectives? f. g. h. i.

They should be communicated throughout the organization They should have an appropriate time dimension They should incorporate policies They should be measurable

8) _____________ Department mainly concern with the achievement of organization goals and targets a. b. c. d.

Production/operations Human resource Accounts Sales

9) A well-designed strategic-management system can fail a. If insufficient attention is given to the human resource dimension b. When actively involve as many managers and employees as possible in the process c. Both of the mentioned options d. None of the mentioned options 10)AIO (Activities, interest, opinions) are the basis of a. Behavioralistic Segmentation b. Psychographic Segmentation c. Demographic Segmentation d. Geographic Segmentation

1. Which statement best describes intuition? a. b. c. d. e.

It represents the marginal factor in decision-making. It represents a minor factor in decision-making integrated with analysis. It should be coupled with analysis in decision-making. It is better than analysis in decision-making. It is management by ignorance.

2. What are the means by which long-term objectives will be achieved? a. b. c. d. e.

Strategies. Strengths. Weaknesses. Policies. Opportunities.

3. Which of these basic questions should a vision statement answer? 55. 56. 57. 58. 59.

What is our business? Who are our employees? Why do we exist? What do we want to become? Who are our competitors?

4. When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit. a. economic

b. c. d. e.

political technological competitive Multinational

5. __________ is not part of an external audit. a. b. c. d. e.

Analyzing competitors Analyzing financial ratios Analyzing available technologies Studying the political environment Analyzing social, cultural, demographic and geographic forces

6. Which of the following is not a cultural product? a. b. c. d. e.

Rites Emotions Rituals Sagas Symbols

7. Which individuals are most responsible for the success and failure of an organization? a. b. c. d. e.

Strategists Financial planners Personnel directors Stakeholders Human resource managers

8. Long-term objectives should be all of the following except: a. b. c. d. e.

Measurable. Continually changing. Reasonable. Challenging. Consistent.

9. What are guides to decision making? a. b. c. d. e.

laws rules policies procedures goals

10. Which group would be classified as a stakeholder?

a. b. c. d. e.

Communities Banks Suppliers Employees All of the given options

---------------------------- are barriers to new product creation and development.

► Opportuni ty pa ra me ter s

► Opportuni ty ide nti fic ati on

► Opportuni ty cir cul ati on

Question No: 2

( Marks: 1 )

- Please choose one

New business venturing refers to the:

► Cr eat io n of ne w bu sin ess wi thi n an exi sti ng or ga niz ati on

► Tr an sfo rm ati on of or

Question No: 3

( Marks: 1 )

- Please choose one

Internal beliefs appear to differentiate entrepreneurs from the general public, but not from:

► Au dit ors

► M an ag ers

► Mentors

► Tycoons

Question No: 4

( Marks: 1 )

- Please choose one

The country affected by several economic and social factors is:

► Germany

► Pakistan

► France

► Argentina

Question No: 5

( Marks: 1 )

- Please choose one

----------------------------------- measures the ability of the venture to manage its total investment in assets.

► Return on eq uit y

► Return on in ve st me nt

► Net profit ma rgi n rat io

► Acid test

Question No: 6

( Marks: 1 )

- Please choose one

The ---------------indicates whether the business plan is economically feasible.

► Fi na nci al pla n

► M ar ket in g Pl an

► Or ga niz ati on al Pl an

Question No: 7

( Marks: 1 )

- Please choose one

If a new venture is a manufacturing operation, a -------------------is necessary.

► M ar ket in g Pl an

► Or ga niz ati on al Pl an

► Pr od uct io n pla n

Question No: 8

( Marks: 1 )

- Please choose one

Which of the following is not the characteristic of a marketing plan?

► Pr ov ide a str ate gy to ac co m pli sh the in di vi du al’ s mi ssi on .

► Be ba se d on fac

Question No: 9

( Marks: 1 )

- Please choose one

In pricing strategy, -------------------- is one of the many factors is to be considered:

► Costs

► Dollars

► Rupees

► None

of the ab ov e

Question No: 10

( Marks: 1 )

- Please choose one

In a --------------------------, the death of the owner results in the termination of the business.

► Partnershi p

► Corporati on

► pr op rie tor shi p

► Li mi ted pa rtn ers

Question No: 11

( Marks: 1 )

- Please choose one

In the corporation, new capital can be raised by:

► St oc k ma y be sol d as eit he r vo tin g or no nv oti ng

► Bo nd s ma y be sol d

Question No: 12

( Marks: 1 )

- Please choose one

The financial plan provides the ------------basis for budgeting.

►

►

► Both

of

the op tio ns gi ve n

► None

of

the op tio ns gi ve n

Question No: 13

( Marks: 1 )

- Please choose one

Large positive cash flows may need to be invested in:

► Sh ort ter m so ur ce s

► Lo ng ter m so ur ce s

► Bo th of the op tio ns are

Question No: 14

( Marks: 1 )

- Please choose one

As long as the selling price is greater than the variable costs per unit, some contribution can be made to cover:

► Va ria ble co sts

► Fi xe d co sts

► Costs ass oci ate d wi th ass ets

Question No: 15

( Marks: 1 )

- Please choose one

The SBIR grant program has --------------- phases.

►

►

► Three

►

1). Strategic management process activate in the sequence of _____________ a) Environmental scanning, Strategy formulation, Implementation, control and evaluation b) Strategy formulation, Environmental scanning, Implementation, control and evaluation c) Environmental scanning, Strategy Implementation, formulation, control and evaluation d) Strategy formulation, Implementation, control, evaluation, Environmental scanning 2). KAPKAL Power’s interested to achieve a 10 percent return on equity (ROE) in their

core electric utility, 14 percent ROE on water resource operations, and 15 percent ROE on support businesses. It is _________________ a) Mission b) Strategy c) Objective d) Policy 3). “A possible and desirable future state of an organization” is called: a) Mission b) Vision c) Strategy implementation d) None of above

4). “Walls” ice cream purchase “Polka” in order to capture the market. Such kind of integration is called: a) Forward Integration b) Backward Integration c) Horizontal Integration d) Product Development

5). “To improve economic strength of society and function as a good corporate citizen on a local, 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 6). Strategic-management audit is known as: a) Environmental scanning b) Strategy formulation c) Strategy control d) Strategy evaluation 7). 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

8). ______________ 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 9). 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 10). ____________ involves assessing the costs, benefits, and risks associated with marketing decisions. a) Customer analysis b) Opportunity analysis c)

Marketing Research

d) Product and Service Planning 1). Competitive profile matrix include in ___________ of Strategy-Formulation Framework. a. b. c. d.

Stage-1 Stage-2 Stage-3 Stage-4

2). The matching stage of the strategy-formulation framework consists of _________techniques. a. b. c. d.

Two Three Four Five

3). Decision stage of Strategy-Formulation Framework includes a matrix___________. a. BCG Matrix b. IE Matrix

c. SPAC E matrix d. None of given option 4). A strong financial position utilizes to improve the working condition of the firm; such strategy is called _______________. a. b. c. d.

SO Strategy SW Strategy TW Strategy None of given option

5). WO Strategies aim at improving internal __________ by taking advantage of external _________________ a. b. c. d.

Weakness; Opportunities Weakness; Operations Wealth; Opportunities None of given option

6). “SPACE” matrix stands for: a. b. c. d.

Strategic Position and Action Evaluation Strategic Partner and Action Evaluation Strategic Phase and Action Evaluation Strategic Position and Academic Evaluation

7). In Space Matrix internal strategic position divided into: a. b. c. d.

Financial strength; Competitive advantages Financial strength; Environmental stability Environmental Stability; Industry Strength Competitive advantages; Industry Strength

8). “Capital intensity” with the reference of SPACE matrix is: a. b. c. d.

Financial Strength (FS) Environmental Stability (ES) Industry Strength (IS) Competitive Advantage (CA)

9). Space Matrix contains four quadrants framework, the upper left quadrant contain ____________ strategy.

a. b. c. d.

Aggressive Conservative Defensive Competitive

10) By using the given table what will be the correct average score of industrial strength in “SPACE” matrix? Industry Strength (IS)

Rating

Demand and supply factors

5

Profit potential

3

Large amount of capital

2

Consistently increasing revenue

4

Resource utilization

3

a. b. c. d.

(3+2+4) / 3 (5+3+3) / 3 (5+3+2+4) / 4 (5+4) / 2

Hold and maintain region in IE matrix include ______________cells e. f. g. h.

III, V, or VII V, or VII II, V, or VII I, II, or IV

Grand strategy matrix all organization divides into ________ quadrants e. Two f. Three g. Four h. Five Qurdant-2 in Grand strategy matrix contains that company’s having : a. b. c. d.

Strong competitive situation and rapid market growth Weak competitive situation and slow market growth Strong competitive situation and slow market growth. Weak competitive situation and rapid market growth.

Assign weights to each key external and internal factor in QSPM which always equal to _____________. e. f. g. h.

Hundred One Ten None of given option

Most companies have strategies, but according to recent studies, between 70% and 90% of organizations that have formulated strategies fail to execute them. e. f. g. h.

70% and 90% 50% and 90% 30% and 50% 60% and 69%

A firm desire to increase profit at least 15% every year for the foreseeable future is ________________ objective. a. b. c. d.

Corporate level Functional level Overall organizational Both a and b

Disagreement between two or more parties on one or more issues is a ______________. a. b. c. d.

Conflict Stress Functional stress None of given option

Medium-size firms tend to be divisionally structured a. Divisionally b. Decentralized c. Centralized

d. Both a and b The _______________ has its own business strategy, objectives and competitors and these are often differ from parent company. a. b. c. d.

Strategic Business Unit structure Matrix structure Divisional structure None of given option

__________________ create a sense of “Self organization “through a. b. c. d. 1.

Gain sharing Profit sharing Employee stock ownership plan Non of given option What analytical tool has four quadrants based on two dimensions: competitive position and market growth? a. b. c. d. a.

2.

Competitive Profile Matrix Internal-External Matrix SPACE Matrix Grand Strategy Matrix QSPM.

For companies located in Quadrant III of the Grand Strategy Matrix, the first strategy recommended is a. b. c. d. e.

3.

Extensive cost and asset reduction. Asset expansion. Employee expansion. Immediate liquidation of assets. Divestiture.

Which of these is a limitation of QSPM? a. b. c. d.

Only a few strategies can be evaluated simultaneously. The cost of doing the analysis Intuitive judgments and educated guesses are required. Sets of strategies must be examined in reverse order.

e. 4.

Which of the following is not true about objectives? j. k. l. m. n.

5.

Under protection of resources Organizational politics Vague strategy targets Reluctance to take risks Lack of sufficient knowledge

Restructuring is also referred to as e. f. g. h. i.

7.

They should be communicated throughout the organization. They should have an appropriate time dimension. They should incorporate policies. They should be measurable. They should be consistent.

_______ is not a major factor that commonly prohibits effective resource allocation. e. f. g. h. i.

6.

It requires equal participation from everyone.

Starting over. Delayering. Diversifying. Job security. Integrating.

The primary benefit sought from restructuring is e. f. g. h. i.

Employee involvement. Cost reduction. Increased morale. Increased number of hierarchical levels in the organization. Increased innovation.

8. What pay strategy requires employees or departments to establish performance targets, such as

“if actual results exceed objectives then all members get bonuses.” a. b. c. d. e.

9.

Profit sharing Bonus system Salary Gain sharing Hourly wage system

Although Quadrant _____ companies are growing, according to the Grand Strategy Matrix, they are unable to compete effectively, and they need to determine why the firm’s current approach is ineffective and how the company can best change to improve its competitiveness. a. b. c. d. e.

I II III IV V

10. The top row of a QSPM consists of alternative strategies derived from all of these except: a. b. c. d. e.

Grand Strategy Matrix. BCG Matrix. Space Matrix. CPM Matrix. IE Matrix

Q1: What are the characteristics of restructuring? List any five characteristics. 5 Marks

Q2: List down the steps involved in product positioning? 1.

All of these are pitfalls an organization should avoid in strategic planning except:

f. Using plans as a standard for measuring performance.

5 Marks

g. Using strategic planning to gain control over decisions and resources. h. Failing to involve key employees in all phases of planning. i. Too hastily moving from mission development to strategy formulation. 2. Which of the following statements is false? j. Open-mindedness is an important guideline for effective strategic management. k. Strategic management must become a self-perpetuating socialist mechanism. l. No organization has unlimited resources. m. Strategic decisions require trade-offs.

3. Which of these business actions is (are) always considered to be unethical? n. poor product or service safety o. using nonunion labor in a union shop p. dumping flawed products in a foreign market q. all of the above 4. ____________ are organizations that conduct business operations across national borders. r. Domestic firms s. Multinational corporations t. Parent companies u. Government-backed companies

5. What category of ratios includes return on total assets and return on stockholders’ equity? a. leverage b. activity c. profitability d. growth 6. Which of the following is not a key question that can reveal internal strengths and weaknesses of the marketing department? e. Does the firm have an effective sales organization? f. Are markets segmented effectively? g. Are the firm’s products and services priced appropriately? h. Does the firm have good liquidity? 7. What marketing function includes test marketing? i. selling products/services j. pricing k. customer analysis l. product/service planning

8. ________ is not considered to be a function of marketing. m. Market segmentation n. Marketing research o. Customer analysis p. Opportunity analysis 9. Opportunity analysis is one of the basic functions of : q. Marketing. r. Management. s. Computer information systems. t. Production/operations. 10. What are historical narratives describing the unique accomplishments of a group and its leaders, usually in heroic terms. a. rites b. sagas c. stories 2.

All of the following are cooperative arrangements except: a. b. c. d. e.

2.

R&D partnerships. Joint-bidding consortia. Cross-licensing agreements. Cross-manufacturing agreements. Marketing plans.

Strategy analysis and choice largely involves making __________ decisions based on __________ information. f. g. h. i. j.

Long-term; Short-term Subjective; Objective Short-term; Long-term Subjective; Short-term Objective; Subjective

3. Which stage of the strategy formulation framework contains the Internal-Factor Evaluation Matrix? a. b.

Input stage Analysis stage

c. d. a.

Matching stage Decision stage Output stage

4. Which strategies aim at improving internal weaknesses by taking advantage of external opportunities? o. p. q. r. s.

SO WO SW ST WT

5. How many cells are in a SWOT Matrix? a. a. b. c. d. 6.

What are two external dimensions of the SPACE Matrix? f. g. h. i. j.

7.

Environmental stability and industry strength Environmental stability and competitive advantage Industry strength and competitive advantage Competitive advantage and financial strength Financial strength and industry strength

In the SPACE analysis, what does a (+6, +3) strategy profile portray? f. g. h. i. j.

8.

Two Four Six Eight Nine

A strong industry An unstable environment A stable environment A weak industry A weak financial position

Selling all of a company’s assets in parts for their tangible worth is called a. b. c. d.

Joint venture. Divestiture. Concentric diversification. Liquidation.

e. 9.

Unrelated integration.

Which stage of the strategy-formulation framework involves the Quantitative Strategic Planning Matrix? f. g. h. i. j.

10.

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

Which strategy should be implemented when a division is responsible for an organization’s overall poor performance? a. b. c. d. e.

Backward integration Divestiture Forward integration Cost leadership Related diversification

1. What

can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives? a. Strategy formulation b. Strategy evaluation c. Strategy implementation d. Strategic management e. Strategic leading

2. Which of the following is not a cultural product? v. w. x. y. z.

Rites Emotions Rituals Sagas Symbols

3. Which individuals are most responsible for the success and failure of an organization? f. g. h. i. j.

Strategists Financial planners Personnel directors Stakeholders Human resource managers

4. Which sector of the economy would be most impacted by technological developments? a. b. c. d. e.

forestry pharmaceuticals textiles metals paper

5. Long-term objectives should be all of the following except: f. g. h. i. j.

measurable. continually changing. reasonable. challenging. consistent.

6. What are guides to decision making? a. b. c. d. e.

laws rules policies procedures goals

7. 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 favorable attitude toward change.

d. it maximizes the effects of adverse conditions and changes. e. it gives a degree of discipline and formality to the management of a business. 8. The vision and mission statement can often be found a. b. c. d. e.

in the SEC report. in annual reports. on customer receipts. on supplier invoices. on community news bulletins

9. Which group would be classified as a stakeholder? f. g. h. i. j.

Communities Banks Suppliers Employees All of these

10. The process of performing an external audit needs to include: a. b. c. d. e.

only top level managers, as it’s a planning function. as many managers and employees as possible. primarily front-line supervisors between 15 to 20 managers for it to be valid stockholders and external government agencies

1. 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 2. ST Strategies is an important strategy to a. Match weakness with opportunities of the firm b. Overcome external threats c. Obtain benefit form its resources d. Overcome its weakness and reducing threats 3. Strategic Position and Action Evaluation Matrix is used in a. Formulation Framework b. Matching stage c. External factor evaluation d. Decision stage

4. Cash cows are always in a. Introductory industry b. Growing industry c. Mature industry

d. Declining industry

5. In BCG matrix, the reason for choosing relative market share, rather than just profits, is that a. b. c. d.

It carries more information than just cash flow It shows where the brand is positioned against its main competitors It indicates where it might be likely to go in the future All of the mentioned options

6. Those firms must make some drastic changes quickly to avoid further demise and possible liquidation that fall in__________ of grand strategy matrix a. Qurdant-1 b. Qurdant-2 c. Qurdant-3 d. Qurdant-4 7. 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 nonprofit organizations but differ in small and large organizations d. None of the mentioned options 8. Annual objectives a. Are not critical to success b. Serve as guidelines for action, directing and channeling efforts and activities of organization members c. Are not important for employee motivation and identification d. Do not provide a basis for organizational design 9. Annual objectives a. Need not to be consistent b. Should be easily achievable c. Should be measurable d. Should be confidential and not to be communicated throughout the organization 10. Which of the following resources is used by all organizations to achieve desired objectives? a. Financial resources, b. Physical resources, c. Human resources d. All of the mentioned options

Strategic management is a. b. c. d.

A pure science. Based mainly on intuition. Needed mainly when organizational performance falls. Based on the use of quantitative and qualitative information.

Business week reports that firms using mission statements have a __________ return on certain financial measures than those without such statements. a. b. c. d.

30% 35% 40% 45%

What is the best time to develop a mission statement? a. b. c. d.

Before a business is opened When the firm is successful When the firm is in financial trouble When the firm is in legal trouble

Which of these basic questions should a vision statement answer? a. b. c. d.

What is our business? Who are our employees? Why do we exist? What do we want to become?

__________ is not part of an external audit. a. b. c. d.

Analyzing competitors Analyzing financial ratios Analyzing available technologies Studying the political environment