School of Distance Education

UNIVERSITY OF CALICUT
School of Distance Education

MCM2C07 – ADVANCED STRATEGIC MANAGEMENT

[Link]. II Semester (2019 Admn.)

Multiple Choice Question Bank

1. The word “strategy” is derived from the Greek word “------"

a. Strategos b. Stratum c. Strategy d. All of these
2. ---------- can also be defined as “a general direction set for the company and its
various components to achieve a desired state in the future.
a. Goal b. Objectives c. Mission d. Strategy
3. ----------- is concerned with the determination of the basic long-term goals and the
objectives 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
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
5. ------------ strategy occupies the highest level of strategic decision making and covers actions
dealing 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
6. The fundamental purpose for the existence of any organization is described by its
a. policies b. mission c. procedures d. strategy
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
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
9. Which of the following is not a characteristic of strategic management that makes it
different from other types of management?
a. It is interdisciplinary.
b. It has an external focus.

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c. It has an internal focus.

d. It concerns the present direction of the organization.
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?
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
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.
13. is the foundation of blue ocean strategy.
a. Innovation b. Value creation
c. Value innovation d. value cost trade-off
14. The various organizational routines and processes that determine how efficiently and
effectively the organization transforms its inputs into outputs are called:
a. strengths. b. core competencies.
c. capabilities. d. customer value.
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
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
17. The primary focus of strategic management is:
a. strategic analysis b. the total organisation
c. strategy formulation d. strategy implementation.
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
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

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20. Which of the following defines how each individual business unit will attempt to
achieve its mission?
a. Business strategy b. Corporate strategy
c. Functional strategy d. National strategy
21. ---------- strategy defines the uses of corporate strategy and specific tactics for each
market.
a. Business strategy b. Corporate strategy
c. Functional strategy d. Operational strategy
22. ----------- strategy defines the day to day actions need to deliver the corporate and
business strategies.
a. Core strategy b. Operational Strategy
c. Corporate strategy d. Functional strategy
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
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
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
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
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
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
29. The functional level strategy of marketing function is divided into various operating levels
such as marketing research, sales promotion, etc. these types of strategies are called.
a. Business strategy b. Corporate strategy
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c. Functional strategy d. Operational strategy

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
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
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.
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.
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
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.
36. The environmental segments that comprise the general environment typically will
NOT include:
a. demographic factors. b. sociocultural factors.
c. substitute products or services. d. technological factors.
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.

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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.
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
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.
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.
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.
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.
44. Internal analysis enables a firm to determine what the firm:
a. can do. b. should do. c. will do. d. might do.
45. An external analysis enables a firm to determine what the firm:
a. can do. b. should do. c. will do. d. might do.
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
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.

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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.
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.
50. ------- 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
51. Which individuals are most responsible for the success and failure of an organization?
a. Strategists b. Financial planners
c. Personnel directors d. Stakeholders
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
53. Long-term objectives should be all of the following except:
a. measurable. b. continually changing.
c. reasonable. d. challenging.
54. What are guides to decision making?
a. laws b. rules c. policies d. procedures
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.
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.
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
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
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

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60. The immediate external environment includes:

a. Divisions b. S. B. U. s
c. Competitors d. Management
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
62. Strategic management involves the , directing, and controlling of a
company’s strategy-related decisions and actions.
a. Financing; marketing b. Planning; financing
c. Planning; organizing d. Marketing; planning
63. A strategy is a company’s
a. Value statement b. Pricing policy
c. Game Plan to outsmart competitor d. Long-term objective
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
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
66. 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
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.
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
69. Strategic issues require which level of management decisions?
a. Operative b. Top c. Front-line d. Middle
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?
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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
72. “A possible and desirable future state of an organization” is called:
a. Mission b. Vision
c. Strategy implementation d. None of above
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
74. “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
75. Strategic-management audit is known as:
a. Environmental scanning b. Strategy formulation
c. Strategy control d. Strategy evaluation
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
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
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
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.
80. What are the means by which long-term objectives will be achieved?
a. Strategies. b. Strengths c. Weaknesses. d. Policies.
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

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82. is not part of an external audit.

a. Analysing competitors b. Analysing financial ratios
c. Analysing available technologies d. Studying the political environment
83. Typically, how many strategic decision levels are in the corporate decision-making
hierarchy?
a. 3 b. 4 c. could be more than 5 d. 2
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
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
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
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
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
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
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
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.

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92. Strategy evaluation at the level involves using specific performance

measures-qualitative and quantitative-for each functional area.
a. organizational b. operational
c. functional d. production
93. ---------- is described as the process which examines all the components, internal or
external, that has an influence on the performance of the organization.
a. Environmental analysis b. Competitor analysis
c. Macro analysis d. Any of the above
94. Which of the following is not an external environment component of a business?
a. Competitors b. Corporate structure
c. Suppliers d. customers
95. ---------- analysis begins with identifying present as well as potential competitors.
a. Environment b. Internal c. Competitor d. External
96. Characteristics of a business which makes it disadvantageous relative to competitors.
a. Threat b. Failure c. Weakness d. None of these
97. Elements in a company’s external environment that allow to formulate and implement
strategies to increase profitability.
a. Strength b. Success c. opportunity d. productivity
98. In PEST analysis, “P” stands for------------
a. Profitability factors b. Productivity factors
c. Political factors d. Pricing factors
99. In PEST analysis, “S” stands for------------
a. Stability factors b. Social factors
c. Sales factors d. Strategic factors
100. In PEST analysis, “T” stands for------------
a. Tactical factors b. Threat factors
c. Task factors d. Technological factors
101. In BCG Matrix, “BCG” stands for--------
a. Budgeted and Controlled Growth b. Basic Categorised Growth
c. Boston Consultancy Group d. Bata Consultancy Group
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
103.--------- factors include population growth, age, demographics and attitudes towards
health.
a. Political b. Economical
c. Social d. None of these
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
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.

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106. ‘Four Corner Analysis model’ is developed by

a. Robert S Kaplan b. Peter F Drucker
c. C K Prahalad d. Michael Porter
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
108. Which of the following is/are not component/s of ‘Four Corner Analysis’?
a. Drivers b. Capabilities
c. Assumptions d. None of these
109. -------------is a favourable position a business holds in the market which results in more
customers and profits.
a. Competitive Advantage b. Core Competency
c. Strength d. Any of the above
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.
111. Horizontal integration is concerned with;
a. Production b. Quality
c. Product planning d. All of the above
112. 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
113. Micro environment is the ………. environment of a company.
a. Working b. Human c. External d. Internal
[Link] 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
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
116. Changes in company ………. also necessitates changes in the systems in various
degrees
a. structure b. system c. strategy d. turnover
117. The actual performance deviates positively over the budgeted performance. This is
an indication of ………... performance.
a. superior b. inferior c. contant d. any of the above
118. Criteria for making an evaluation is (are)
a. Consistency with goals b. Consistency with environment
c. Money d. All of the above
119. They have time-based utility
a. Goals b. Resources
c. both ‘A’ and ‘B’ d. None of the above

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120. Formal systems are adopted to bring & amalgamation of

decentralized units into product groups.
a. Manpower b. Co-ordination c. Production d. All of the above
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
122. Systems are formal and informal rules and regulations that complement the company
………..
a. strategy b. structure c. system d. environment
123. The reasons for acquisition are
a. Increased market power b. Increased diversification
c. Increased speed to market d. All of the above
124. Market research is conducted by
a. By employees b. By research agencies
c. By consultants d. All of the above
125. Vertical integration is concerned with
a. supply chain b. production c. Quality d. planning
126. ETOP stands for .
a. environmental threat & opportunity project
b. environmental threat & opportunity profile
c. environmental treaty & opportunity profile
d. environmental threat & optimum profile
127. The control process requires the following types of information
a. Planned performance b. Variances
c. Reasons d. All of the above
128. It is designed to monitor a broad range of events inside and outside the company
that are likely to threaten a firm’s strategy
a. Strategic surveillance b. Strategic planning
c. both ‘A’ and ‘B’ d. None of the above
129. Harvest strategy is used for
a. Dogs b. Question marks
c. Cash cow d. both ‘A’ and ‘B’
130. Attack strategies are
a. Frontal attack b. Flank attack
c. Encirclement attack d. all of the above
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
132. For strategic learning, the balanced scorecard supplies
a. Two elements b. Three elements
c. Four elements d. Five elements

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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
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
135. Scorecard facilitates the strategy review essential for
a. Strategic learning b. Strategic plan
c. Strategic domain d. Strategic model
136. A business strategy should be viewed as a set of
a. Domain b. Models c. Hypothesis d. Procedures
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.
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 not-
for-profit sector.
d. a dynamic process involving the full set of commitments,
decisions, and actions related to the firm.
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.
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.
141. In contrast to the industrial organization model, in a resource-based model, which of the
following factors would be considered a key to organizational success?
a. unique market niche. b. weak competition.
c. economies of scale. d. loyal employees.
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

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firm competes.
d. resources that are valuable, rare, costly to imitate, and non-substitutable form
the basis of a firm's core competencies.
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.
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
145. The environmental segments that comprise the general environment typically will NOT
include:
a. demographic factors. b. sociocultural factors.
c. substitute products or services. d. technological factors.
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.
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.
148. An integrated and coordinated set of commitments and actions designed to exploit
core 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.
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.
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

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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 standard.
d. to automatically have high levels of power over suppliers.
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.
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.
154. ----------- is a participative, systematic approach to planning and implementing a constant
organizational improvement process.
a. WPM b. TQM c. SCM d. QC
155. SCM Stands for ----------
a. Suppler-Customer and Money b. Supply Chain Management
c. Supplier and Customer Management d. Sales Cost Management.
156. VMOST Analysis tool is developed by:
a. C K Prahlad b. Rakesh Sondhi
c. Michael Porter d. R S Cooper
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
158. A ------------ is defined as an organization that has developed the capacity to
continuously learn, adapt, and change.
a. Change management b. Strategic Change
c. Learning organisation d. Strategic organisation
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
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

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revamping the industry value chain

d. Strengthen the company's competitive position and/or boost its profitability
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
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
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.
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.
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
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
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.
168. Strategy evaluation is becoming with the passage of time.
a. increasingly difficult b. much simpler
c. very convenient d. an unnecessary activity
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169. The overall strategy which is comprehensive in nature and provides the basis for
strategic direction is known as----
a. Corporate strategy b. Grand strategy
c. General strategy d. All of these
170. Which of the following is/are stability strategies?
a. No Change strategy b. Caution Strategy
c. Profit Strategy d. All of these
[Link] of the following is not Growth/Expansion strategies?
a. Caution strategy b. Vertical integration
c. Diversification d. Cooperation
[Link] of the following is retrenchment strategy?
a. Turn around b. Divestiture
c. Liquidation d. All of these
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
174. Défense strategies in which the leader stretches over new market territories using market
diversification is classified as
a. mobile defence b. static defence
c. stable defence d. unstable defence
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
176. Strategies such as diversification, penetration and market development are part of
a. extensive growth b. intensive growth
c. integrative growth d. disintegrative growth
177. For intensive growth, the company first considers whether it could gain more
market 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
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
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
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
181. Acquiring one or more suppliers for integrative growth is
a. Horizontal integration b. Forward integration
c. Backward integration d. None of the above
182. Acquisition of competitors for integrative growth is
a. Horizontal integration b. Forward integration
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c. Backward integration d. None of the above

183. In , the company would seek new products that have marketing or
technological 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
184. In , the company can develop new products that are technologically unrelated
to 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
185. In , the company may seek new opportunities that have no relation with its
current technology, products, or markets.
a. Concentric diversification b. Horizontal diversification
c. Conglomerate diversification d. None of the above
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
187. Redefining how company gets paid or create innovative new revenue streams is
of Business innovation.
a. Value capture dimension b. Brand dimension
c. Networking dimension d. Offerings dimension
188. Michael Porter has proposed generic strategies that provide a good starting
point for strategic thinking.
a. 3 b. 5 c. 4 d. 6
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
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
191. General Electric has classified its businesses into strategic business units.
a. 42 b. 45 c. 49 d. None of the above
192. SBU (strategic business unit) is a unit that is usually responsible for its own
budgeting, new product decisions, hiring decisions, and price setting.
a. Semi-autonomous b. Autonomous
c. Non-autonomous d. None of the above
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
194. The BCG's Growth Share matrix uses and of market growth as
criteria 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
195. Opportunities to achieve further growth within current businesses are:
a. Intensive Opportunities b. Integrative Opportunities
c. Diversification Opportunities d. None of the above
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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
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
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
199. The most complex structure of Strategic organisation is:
a. Functional b. Transnational
c. Matrix d. Divisional
200. Hofer’s Product matrix is also known as:
a. GE Matrix b. BCG Matrix
c. TOWS matrix d. Market Evaluation Matrix

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ANSWER KEY

1 a 41 c 81 b 121 b 161 b
2 d 42 c 82 b 122 b 162 a
3 d 43 a 83 a 123 d 163 c
4 d 44 a 84 a 124 d 164 c
5 b 45 d 85 a 125 a 165 d
6 b 46 a 86 d 126 b 166 a
7 b 47 d 87 b 127 d 167 b
8 d 48 c 88 c 128 a 168 a
9 d 49 d 89 c 129 d 169 b
10 c 50 d 90 c 130 d 170 d
11 c 51 a 91 a 131 a 171 a
12 a 52 b 92 c 132 c 172 d
13 c 53 b 93 a 133 c 173 b
14 b 54 c 94 b 134 b 174 a
15 c 55 d 95 c 135 a 175 b
16 b 56 b 96 c 136 c 176 b
17 b 57 b 97 c 137 c 177 a
18 b 58 b 98 c 138 d 178 b
19 b 59 b 99 b 139 d 179 a
20 a 60 c 100 d 140 b 180 c
21 a 61 d 101 c 141 d 181 c
22 d 62 c 102 c 142 d 182 a
23 c 63 c 103 c 143 a 183 a
24 b 64 a 104 d 144 a 184 b
25 a 65 b 105 c 145 c 185 c
26 c 66 d 106 d 146 a 186 b
27 c 67 d 107 d 147 d 187 a
28 a 68 a 108 d 148 a 188 a
29 d 69 b 109 a 149 a 189 a
30 d 70 d 110 d 150 a 190 b Prepared By :
31 c 71 a 111 a 151 b 191 c
32 b 72 b 112 b 152 d 192 a Praveen M V,
33 d 73 c 113 d 153 d 193 c
34 a 74 d 114 d 154 c 194 b Assistant Professor,
35 a 75 a 115 d 155 b 195 a
36 c 76 c 116 b 156 b 196 b PG & Research Dept. of Commerce,
37 d 77 a 117 a 157 b 197 a
38 c 78 c 118 d 158 c 198 d [Link], Madappally.
39 d 79 c 119 c 159 a 199 c
40 d 80 a 120 b 160 d 200 d

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