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FINAL TERM

MGT603 - Strategic Management

Question No: 1 ( Marks: 1 ) - Please choose one

Strategic management integrates all of the following areas EXCEPT:

Management

Marketing

Research and development

Human resource management

Question No: 2 ( Marks: 1 ) - Please choose one

Strategist is an individual who is involved in the strategic management
process, thus may be known as:

Member board of director

President

Division manager

All of the given options

Question No: 3 ( Marks: 1 ) - Please choose one

A desired future state that the organization attempts to realize . Identify the
term relevant to the given statement.

Policy

Procedure

Goal

Strategy

Question No: 4 ( Marks: 1 ) - Please choose one

Which of the following business actions is NOT considered to be unethical?

Poor product or service safety

Using non-union labor in a union shop

Misleading advertising

Too expensive products

Question No: 5 ( Marks: 1 ) - Please choose one

Which type of trend can be exemplified by the increase in average level of
education in a society?

Cultural

Technological

Economic

Social

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Question No: 6 ( Marks: 1 ) - Please choose one

Allocation and reallocation of capital and resources to projects, products,
assets,
and divisions of an organization is known as:

Investment decisions

Financing decisions

Restructuring decisions

Strategic decision
Question No: 7 ( Marks: 1 ) - Please choose one
All of the following fall under the category of Process function of production
management EXCEPT:

Choice of technology

Quality assurance

Process flow analysis

Transportation analysis

Question No: 8 ( Marks: 1 ) - Please choose one

A planned activity aimed at discovery of new knowledge with the hope of
developing new or improved products and services and translation of its
findings into a plan or design of new or improved products and services is
known as:

Marketing

Research and development

Production

Management information system

Question No: 9 ( Marks: 1 ) - Please choose one

________________ become/s information only when it/they is/are
evaluated, filtered, condensed, analyzed and organized for a specific
purpose, problem, individual, or time.

Material

Data

Competitive advantages

Competitor analysis

Question No: 10 ( Marks: 1 ) - Please choose one

The Web sites that sell products directly to the consumers are the examples
of which type of strategy?

Backward integration

Product development

Forward integration

Horizontal integration

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Question No: 11 ( Marks: 1 ) - Please choose one

The extent to which a business concentrates on a narrowly defined market
is best referred to as:

Niche strategy

Cost leadership strategy

Differentiation strategy

Segmentation

Question No: 12 ( Marks: 1 ) - Please choose one

Under which of the following conditions, Concentric Diversification
would be particularly an effective strategy to pursue?

When an organization has grown so large so quickly that major internal
reorganization is needed

When sales of current products would increase intensively by
adding the new related products

When revenues from current products/services would increase
significantly by adding the new unrelated products

When current products are in maturity stage of the product life cycle

Question No: 13 ( Marks: 1 ) - Please choose one

Which of the following stages in the strategy-formulation framework focuses
on summarizing the basic information needed to formulate strategies?

Output

Input

Decision

Matching

Question No: 14 ( Marks: 1 ) - Please choose one

Which of the following stages of Strategy Formulation Framework involves
development of Internal-Factor Evaluation Matrix?

Input stage

Output stage

Matching stage

Decision stage

Question No: 15 ( Marks: 1 ) - Please choose one

Which of the following stages of strategy formulation framework involves
development of Internal External Matrix?

Input stage

Output stage

Matching stage

Decision stage

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Question No: 16 ( Marks: 1 ) - Please choose one

In order to avoid the emergence of substitute products, AF & Z Corporation
has an access and control over the scarce natural resources necessary for the
production of their products, Which of the following strategies AF & Z is
using?

SO

WO

SW

ST

Question No: 17 ( Marks: 1 ) - Please choose one

What type of strategies would you recommend when a firm s SPACE Matrix
directional vector has the coordinates (-2, +3)?

Aggressive

Conservative

Competitive

Defensive

Question No: 18 ( Marks: 1 ) - Please choose one

Which of the following is NOTa step for the preparation of a SPACE matrix?

Select a set of variables to relating to financial strength, competitive
advantage, environmental stability, and industry strength

Assign a numerical value ranging from +1 (worst) to +6 (best) to each
of the variables that make up the financial strength and industry
strength dimensions

Assign weights to the variables according to their relative
importance for the firm

Compute an average score and dividing by the number of variables

Question No: 19 ( Marks: 1 ) - Please choose one

The business has a strong competitive position but is in a slow-growth
industry.
Further, the business typically has high cash flow levels and limited internal
growth needs. The statement refers which of the following?

The firm falling in Quadrant I of Grand Strategy Matrix

The firm falling in Quadrant II of Grand Strategy Matrix

The firm falling in Quadrant III of Grand Strategy Matrix

The firm falling in Quadrant IV of Grand Strategy Matrix

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Question No: 20 ( Marks: 1 ) - Please choose one

What is the product of weights and attractiveness scores for each strategy in
QSPM?

Sum total attractiveness scores

Total attractiveness scores

Weighted scores

Total weighted scores

Question No: 21 ( Marks: 1 ) - Please choose one

Which of the following is a Functional level objective?

Achieving return on investment of at least 15%

Aiming to achieve a market share of 10%

Attaining operating profit of over Rs.10 million

Increase earnings per share by at least 10% every

Question No: 22 ( Marks: 1 ) - Please choose one

Which of the following is a Corporate level objective?

Getting 75% customer awareness of company s brand in target
markets

Increasing earnings per share by at least 10%

Building customer database of at least 250,000 companies

Achieving a 10% share of International market

Question No: 23 ( Marks: 1 ) - Please choose one

The manager of MZ firm has defined the goal that the firm wants to
increase its production by at least 200 units in size. Thus, which part of the
SMART criteria has been focused by the firm through this goal statement?

Specific

Measurable

Achievable

Relevant

Question No: 24 ( Marks: 1 ) - Please choose one

Mr. Ali, the operations manager of ABC Company did not agree with the
proposal of marketing manager - Mr. Zeeshan at the meeting regarding
launch of a new product. There was an exchange of hot word among them.
The matter was referred to CEO, so that the conflict could be resolved, but
the CEO did not take any action in the hope that the conflict will resolve itself.
The statement describes which of the conflict resolution mood?

Avoidance

Compliance

Diffusion

Confrontation

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Question No: 25 ( Marks: 1 ) - Please choose one

Ahmad fisheries is going to arrange a meeting with AH& T distributors so that
the matters regarding wrong delivery by AH & T and conflict arising from it
can be settled. Which of the following conflict resolving approach is followed
in the situation?

Avoidance

Confrontation

Resistance

Diffusion

Question No: 26 ( Marks: 1 ) - Please choose one

Why do changes in company strategy often require changes in the way an
organization is structured?

Because structure depicts how goals will be established

Because structure dictates how authorities will be delegated

Because structure dictates how resources will be obtained

Because structure dictates how financial resources are spent

Question No: 27 ( Marks: 1 ) - Please choose one

Which one of the following is the organizational structure that most of the
medium-size organizations follow?

Divisional structure

Strategic business unit

Functional structure

Matrix structure

Question No: 28 ( Marks: 1 ) - Please choose one

Of the following, which one is least likely to be considered an advantage
presented by a matrix organizational structure?

It facilitates the use of highly specialized staff and equipment

It minimizes the project cost because the key people can be shared

It can raise dual reporting and communication problems

It provides excellent training ground for strategic managers

Question No: 29 ( Marks: 1 ) - Please choose one

Zairian Corporation has streamlined its operations by cutting costs, such as
decrease in payroll or reduction in its size through the sale of assets. In which
of the following activity Zaria Corporation is involved?

E-Engineering

Re-engineering

Restructuring

Benchmarking

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Question No: 30 ( Marks: 1 ) - Please choose one

Which of these is not one of the tests used to determine whether a
performance-pay plan will benefit an organization?

Do employees understand the plan?

Is the plan improving communications?

Does the plan pay out when it should?

Does the plan reduce management layers?

Question No: 31 ( Marks: 1 ) - Please choose one

All of the following are the managerial issues for managing natural
environment
EXCEPT:

Global warming- depletion of rain forests

Employee understanding about environment

Developing biodegradable products and packages

Waste management to clean air and water

Question No: 32 ( Marks: 1 ) - Please choose one

Production processes typically constitute of what percentage of firm s total
assets?

More than 70 %

More than 65 %

More than 60 %

More than 55 %

Question No: 33 ( Marks: 1 ) - Please choose one

Which one of the following is TRUE about two different market segments?

They can be served with the same marketing strategy

They usually require different marketing strategies

They are always in different geographic locations

There is heterogeneity within the segment in its needs

Question No: 34 ( Marks: 1 ) - Please choose one

XYZ Company has segmented its market by keeping in view occupation and
education level of customers. Which of the following bases of segmentation
the
company has used?

Demographic

Psychographic

Behavioral

Geographic

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Question No: 35 ( Marks: 1 ) - Please choose one

Which variable would be considered as a part of pricing decisions?

Warranty

Bundling

Safety

Functionality

Question No: 36 ( Marks: 1 ) - Please choose one

Which of the following statement is TRUE about 'firm infrastructure' as a
support
activity of Michael Porter's value chain model?

It includes procurement of raw materials, servicing, spare parts,
buildings, machines

It Includes technology development to support the value chain
activities like Process automation

It includes the activities associated with recruiting and development of
employees and managers

It includes general management, planning management, legal,
finance, accounting, public affairs

Question No: 37 ( Marks: 1 ) - Please choose one

Which of the following statement is correct about human resource
management?

It includes procurement of raw materials, servicing, spare parts,
buildings, machines

It Includes technology development to support the value chain
activities like Process automation

It includes the activities associated with recruiting and
development of employees and managers

It includes general management, planning management, legal, finance,
accounting, public affairs

Question No: 38 ( Marks: 1 ) - Please choose one

All of the following are the cost drivers of Porter s supply chain activities
EXCEPT:

Capacity utilization

Timing of market entry

Economies of scale

Firm's infrastructure

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Question No: 39 ( Marks: 1 ) - Please choose one

Which one of the following is NOT considered as a difficulty in evaluation of
strategies?

Increase in environment s complexity

Difficulty predicting future with accuracy

Decreasing number of variables

Rate of obsolescence of plans

Question No: 40 ( Marks: 1 ) - Please choose one

Which of the following statement is TRUE about Controls which are used in
strategy evaluation stage?

They are strategy-oriented

They are action-oriented

They are control-oriented

They are information-oriented

Question No: 41 ( Marks: 1 ) - Please choose one

A good evaluation system must posses various qualities. Which of the
following is
not a characteristic of a good strategy evaluation system?

Strategy-evaluation activities must be economical

Strategy-evaluation activities should be meaningful

Strategy-evaluation activities should dominate the decisions

Strategy-evaluation activities should provide timely information

Question No: 42 ( Marks: 1 ) - Please choose one

The people who perform audit can be categorized as all of the following
EXCEPT:

Independent auditors

Financial auditors

Government auditors

Internal auditors

Question No: 43 ( Marks: 3 )

If you construct a SPACE Matrix and the directional vector points to the lower
left quadrant, what type of strategies would you recommend?

Question No: 44 ( Marks: 3 )

Define Functional level objectives. Provide at least two statements
exemplifying such objectives.

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Question No: 45 ( Marks: 3 )

Auditors who perform audit can be divided into three groups? Identify and
define each of them.

Question No: 46 ( Marks: 5 )

Identify the five steps that must be followed while developing an IE Matrix.

Question No: 47 ( Marks: 5 )

Positioning is actually the way that a product is introduced to its market
audience. What are the five steps required for effective product positioning?

Question No: 48 ( Marks: 10 )

You are the business executive of Omar textiles Mills. You are asked to
evaluate the strengths, weaknesses, opportunities and threats of the firm and
develop altogether different strategies by using different combinations of any
two of these.

Question No: 49 ( Marks: 10 )

Quantitative Strategic Planning Matrix (QSPM) is a high-level strategic
management approach for evaluating possible strategies. You are required to
prepare a (QSPM) of XYZ Manufacturing Company for evaluating any two
strategies?

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