Strategic Management Multiple Choice Questions

301 Strategic management
Strategic Management Multiple Choice Questions

1. The term strategy is derived from a ___________ word ‘strategos’
a. Latin
b. Greek
c. Chinese
d. German
2. The term strategy is derived from the word ‘strategos’ which means
a. Tactics
b. Leadership
c. Generalship
d. Management
3. Strategic management does not involve
a. setting objectives
b. analyzing the competitive environment,
c. analyzing the internal organization
d. Analyzing the external organization
4. ______________ Ensures that management rolls out the strategies across
the organization is the role of
a. HR Department
b. Operations Management
c. Strategic Management
d. All of the above
5. Strategic management is the management of an organization’s resources to
achieve its _________________
a. Profit
b. goals and objectives.
c. Market Share
d. Competitive Advantage
6. Different levels of strategic decision making and strategy formulation in any
organization Does not include
a. Fnancial
b. Corporate
c. Functional
d. Business
7. ___________ is the strategy which includes Board of Directors and the Chief
Executive officer, is responsible for the organization’s financial performance
and other non-financial goals
a. Business
b. Functional
c. Corporate
d. Financial
8. Which of the following doesn’t describe Corporate Strategy
a. what business or businesses should we be in
b. How does the parent company add value to its subsidiaries
c. How does being in one business help us compete in other businesses
d. How should we compete in other business
9. Different levels of strategic decision making and strategy formulation in any
organization include
a. Corporate Level and Business Level
b. Corporate Level and Functional Level
c. Business Level and Functional Level
d. Corporate, Business and Functional Level
10. Which of the following does not include the characteristics of Strategic
Management?
a. Reactive
b. Multidimensional
c. Systematic
d. Dynamic
11. Which of the following denotes the characteristics of Strategic
Management?
a. Decentralization
b. Wide-span of management
c. Searching for new sources of advantage
d. Multi operational
12. The role of stakeholders includes
a. Direct Management
b. Decision Making
c Investments
d. All of the above
13. The process of strategic management is a/an ___________ one that
changes as the organizational goals and objectives evolve
a. Continuous
b. Interesting
c. Systematic
d. Stable
14. 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
Answer: b
15. Which of the following defines how each individual business unit will
attempt to achieve its mission?
Answer: a
16. Which of the following focuses on supporting the corporate and business
strategies?
a. Competitive strategy
c. Operational strategy
e. Mission strategy
Answer: c
17. 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
e. Implementing and evaluating the chosen strategy
Answer: b
18. 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
Answer: a
19. 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
Answer: c
20. 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
Answer: c
21. The three 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
Answer: a
22. Which of the following is an example of competing on quick response?
a. a firm produces its product with less raw material waste than its competitors
b. a firm offers more reliable products than its competitors
c. a firm’s products are introduced into the market faster than its competitors’
d. a firm’s research and development department generates many ideas for new
products
Answer: c
23. 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
Answer: c
24. 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.
Answer: b
25. Of the following, which one would NOT be considered one of the
components of a mission statement?
a. The target market for XYZ is oil and gas producers as well as producers of
chemicals.
b. XYZ shall hire only those individuals who have with sufficient educational levels
so as to be of benefit to our customers
c. The customers of XYZ shall include global and local consumers of gas and oil
products and domestic users of nontoxic chemicals
d. The technologies utilized by XYZ shall focus upon development of alternative
sources of gas and oil so as to remain competitive within the industry
Answer: b
26. 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..
Answer: d
27. 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
Answer: a
28. 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.
Answer: a
29. 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.
Answer: c
30. 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.
Answer: d
31. 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.
Answer: c
32. 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
Answer: d
33. 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.
Answer: d
34. 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.
Answer: c
35. Suppliers are powerful when:
a. satisfactory substitutes are available.
b. they sell a commodity product.
c. they offer a credible threat of forward integration.
d. they are in a highly fragmented industry.
Answer: c
36. The highest amount a firm can charge for its products is most directly
affected by
a. expected retaliation from competitors.
b. the cost of substitute products.
c. variable costs of production.
d. customers’ high switching costs.
Answer: b
37. 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.
Answer: c
38. 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 product substitutes.
Answer: a
39. Internal analysis enables a firm to determine what the firm
a. can do.
b. should do.
c. will do.
d. might do.
Answer: a
40. An external analysis enables a firm to determine what the firm
a. can do.
b. should do.
c. will do.
d. might do.
Answer: d
41. ________ 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
Answer: a
42. 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.
Answer: d
43. 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.
Answer: c
44. Competitors are more likely to respond to competitive actions that are
taken by
a. differentiators.
b. larger companies.
c. first movers.
d. market leaders.
Answer: d
45. 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
Answer: d
46. Which of the following is not a cultural product?
a. Rites
b. Emotions
c. Rituals
d. Sagas
e. Symbols
Answer: b
47. Which individuals are most responsible for the success and failure of an
organization?
a. Strategists
b. Financial planners
c. Personnel directors
d. Stakeholders
e. Human resource managers
Answer: a
48. Which of the following is an element of a firm’s remote external
environment?
a. Competition
b. Political agencies
c. Suppliers
d. Trade union
Answer: b
49. Long-term objectives should be all of the following except:
a. measurable.
b. continually changing.
c. reasonable.
d. challenging.
e. consistent.
Answer: b
50. What are guides to decision making?
a. laws
b. rules
c. policies
d. procedures
e. goals
Answer: c
51. 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.
Answer: d
52. 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.
e. on community news bulletins
Answer: b
53. Which group would be classified as a stakeholder?
a. Communities
b. Banks
c. Suppliers
d. Employees
e. All of these
Answer: e
54. 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
e. stockholders and external government agencies
Answer: b
55. 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
Answer: b
56. 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
Answer: b
57. The immediate external environment includes:
a. Divisions
b. S. B. U. s
c. Competitors
d. Management
Answer: c
58. 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
Answer: d
59. 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
Answer: c
60. A strategy is a company’s
a. Value statement
b. Pricing policy
c. Game Plan to outsmart competitor
d. Long-term objective
Answer: c
61. 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
Answer: a
62. 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
Answer: b
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
Answer: c
64. 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
Answer: d
65. 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.
Answer: d
66. 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
Answer: a
67. Strategic issues require which level of management decisions?
a. Operative
b. Top
c. Front-line
d. Middle
Answer: b
68. 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?
Answer: d
69.________ is not part of an external audit.
a. Analyzing competitors
b. Analyzing financial ratios
c. Analyzing available technologies
d. Studying the political environment
Answer: b
70. 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
Answer: a
71. 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
Answer: c
72. “A possible and desirable future state of an organization” is called:
a. Mission
b. Vision
d. None of above
Answer: b
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; analyze
Answer: c
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
Answer: d
75. Strategic-management audit is known as:
a. Environmental scanning
b. Strategy formulation
c. Strategy control
d. Strategy evaluation
Answer: a
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
Answer: c
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
Answer: a
78. Organizing means an identifiable group of people contributing their efforts
towards the attainment of same goal. It is important at the time of:
c. Strategy Implementation
Answer: c
79. In a turbulent and competitive free enterprise environment, a firm will
succeed only if it takes a(n) _____________ stance towards change.
a. Reactive
b. Proactive
c. Anti-regulatory or anti-government
d. Vision and not mission
Answer: b
80. 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.
e. It is management by ignorance.
Answer: c
81. What are the means by which long-term objectives will be achieved?
a. Strategies.
b. Strengths.
c. Weaknesses.
d. Policies.
e. Opportunities.
Answer: a
c. Why do we exist?
e. Who are our competitors?
Answer: d
83. 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
e. Multinational
Answer: b
q. Analyzing available technologies
e. Analyzing social, cultural, demographic and geographic forces
Answer: b
organization?
a. Strategists
d. Stakeholders
Answer: a
a. Measurable.
b. Continually changing.
c. Reasonable.
d. Challenging.
e. Consistent.
Answer: b
a. laws
b. rules
c. policies
d. procedures
e. goals
Answer: c
a. Communities
b. Banks
c. Suppliers
d. Employees
e. All of the given options
Answer: e
89. 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
Answer: a
90. Which type of trend can be exemplified by the increasing numbers of two-
income households in a society?
a. Social
b. Economic
c. Cultural
d. Technological
Answer: b
91. 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
Answer: a
92. 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
Answer: a
93. 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
Answer: d
94. 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
Answer: b
95. “The perfect search engine would understand exactly what you mean and
give back exactly what you want”, this statement is included in the mission
statement of an online firm and is showing which one of the following
components?
a. Self-concept
b. Concern for public image
c. A declaration of attitude
d. Philosophy
Answer: b
96. 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
Answer: c
97. 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
Answer: c
98. “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
Answer: c
99. What is the central purpose of strategic evaluation?
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.
Answer: a
100. 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
Answer: c
Strategic Management MCQ: Multiple Choice

Questions and Answers on Strategic Management
1. The fundamental purpose for the existence of any organization is described by

its
a. policies
b. mission
c. procedures
d. strategy
Ans. b
2. 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
Ans. b
3. The acronym SWOT stands for
a. Special Weapons for Operations Timeliness
b. Services, Worldwide Optimization, and Transport
c. Strengths Worldwide Overcome Threats
d. Strengths, Weaknesses, Opportunities, and Threats
Ans. d
4. 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.
c. It has an internal focus.
d. It concerns the present direction of the organization.
Ans. d
5. 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?
Ans. c
6. Which of the following is NOT a major element of the strategic management
process?
a. Formulating strategy
b. Implementing strategy
c. Evaluating strategy
c. Assigning administrative tasks
Ans. d
7. 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.
Ans. a
8. ________________ is the foundation of blue ocean strategy.
a. Innovation
b. Value creation
c. Value innovation
d. value cost trade-off
Ans. c
9. 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.
Ans. b
10. When defining strategic management the most important thing to remember is
that it is:
a. Not as easy as you think
b. Mainly the province of senior managers
c. A living evolving process
d. More conceptual than practical
e. A way of determining responsibilities
Ans. c
11. 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
Ans. b
12. The primary focus of strategic management is:
a. strategic analysis
b. the total organisation
c. strategy formulation
d. strategy implementation.
Ans. b
13. 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
Ans. b
14. Which of the following defines what business or businesses the firm is in or
should be in?
Ans. b
15. Which of the following defines how each individual business unit will attempt
to achieve its mission?
Ans. a
16. Which of the following focuses on supporting the corporate and business
strategies?
a. Competitive strategy
c. Operational strategy
e. Mission strategy
Ans. c
17. 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
e. Implementing and evaluating the chosen strategy
Ans. b
18. 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
Ans. a
19. 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
Ans. c
20. 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
Ans. c
21. The three 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
Ans. a
22. Which of the following is an example of competing on quick response?
a. a firm produces its product with less raw material waste than its competitors
b. a firm offers more reliable products than its competitors
c. a firm’s products are introduced into the market faster than its competitors’
d. a firm’s research and development department generates many ideas for new
products
Ans. c
23. 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
Ans. c
24. 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.
Ans. b
25. Of the following, which one would NOT be considered one of the components
of a mission statement?
a. The target market for XYZ is oil and gas producers as well as producers of
chemicals.
b. XYZ shall hire only those individuals who have with sufficient educational levels so as
to be of benefit to our customers
c. The customers of XYZ shall include global and local consumers of gas and oil
products and domestic users of nontoxic chemicals
d. The technologies utilized by XYZ shall focus upon development of alternative sources
of gas and oil so as to remain competitive within the industry
Ans. b
26. 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..
Ans. d
27. 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
Ans. a
28. 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.
Ans. a
29. 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.
Ans. c
30. 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.
Ans. d
31. 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.
Ans. c
32. 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
Ans. d
33. 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.
Ans. d
34. 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.
Ans. c
35. Suppliers are powerful when:
a. satisfactory substitutes are available.
b. they sell a commodity product.
c. they offer a credible threat of forward integration.
d. they are in a highly fragmented industry.
Ans. c
36. The highest amount a firm can charge for its products is most directly
affected by
a. expected retaliation from competitors.
b. the cost of substitute products.
c. variable costs of production.
d. customers’ high switching costs.
Ans. b
37. 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.
Ans. c
38. 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 product substitutes.
Ans. a
39. Internal analysis enables a firm to determine what the firm
a. can do.
b. should do.
c. will do.
d. might do.
Ans. a
40. An external analysis enables a firm to determine what the firm
a. can do.
b. should do.
c. will do.
d. might do.
Ans. d
41. ________ 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
Ans. a
42. 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.
Ans. d
43. 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.
Ans. c
44. Competitors are more likely to respond to competitive actions that are taken
by
a. differentiators.
b. larger companies.
c. first movers.
d. market leaders.
Ans. d
45. 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
d. Strategic management
e. Strategic leading
Ans. d
46. Which of the following is not a cultural product?
a. Rites
b. Emotions
c. Rituals
d. Sagas
e. Symbols
Ans. b
organization?
a. Strategists
d. Stakeholders
Ans. a
48. Which of the following is an element of a firm’s remote external environment?
a. Competition
b. Political agencies
c. Suppliers
d. Trade union
Ans. b
a. measurable.
b. continually changing.
c. reasonable.
d. challenging.
e. consistent.
Ans. b
a. laws
b. rules
c. policies
d. procedures
e. goals
Ans. c
51. 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.
Ans. d
52. 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.
e. on community news bulletins
Ans. b
a. Communities
b. Banks
c. Suppliers
d. Employees
e. All of these
Ans. e
54. 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
e. stockholders and external government agencies
Ans. b
55. 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
Ans. b
56. 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
Ans. b
57. The immediate external environment includes:
a. Divisions
b. S. B. U. s
c. Competitors
d. Management
Ans. c
58. 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
Ans. d
59. 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
Ans. c
60. A strategy is a company’s
a. Value statement
b. Pricing policy
c. Game Plan to outsmart competitor
d. Long-term objective
Ans. c
61. 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
Ans. a
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
Ans. b
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
Ans. c
64. 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
Ans. d
65. 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.
Ans. d
66. 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
Ans. a
67. Strategic issues require which level of management decisions?
a. Operative
b. Top
c. Front-line
d. Middle
Ans. b
c. Why do we exist?
Ans. d
c. Analyzing available technologies
Ans. b
70. 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
Ans. a
71. 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
Ans. c
72. “A possible and desirable future state of an organization” is called:
a. Mission
b. Vision
d. None of above
Ans. b
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; analyze
Ans. c
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
Ans. d
75. Strategic-management audit is known as:
c. Strategy control
Ans. a
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
Ans. c
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
Ans. a
78. Organizing means an identifiable group of people contributing their efforts
towards the attainment of same goal. It is important at the time of:
c. Strategy Implementation
Ans. c
79. In a turbulent and competitive free enterprise environment, a firm will succeed
only if it takes a(n) _____________ stance towards change.
a. Reactive
b. Proactive
c. Anti-regulatory or anti-government
d. Vision and not mission
Ans. b
80. 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.
e. It is management by ignorance.
Ans. c
81. What are the means by which long-term objectives will be achieved?
a. Strategies.
b. Strengths.
c. Weaknesses.
d. Policies.
e. Opportunities.
Ans. a
c. Why do we exist?
e. Who are our competitors?
Ans. d
83. 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
e. Multinational
Ans. b
q. Analyzing available technologies
e. Analyzing social, cultural, demographic and geographic forces
Ans. b
organization?
a. Strategists
d. Stakeholders
Ans. a
a. Measurable.
b. Continually changing.
c. Reasonable.
d. Challenging.
e. Consistent.
Ans. b
a. laws
b. rules
c. policies
d. procedures
e. goals
Ans. c
a. Communities
b. Banks
c. Suppliers
d. Employees
e. All of the given options
Ans. e
89. 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
Ans. a
90. Which type of trend can be exemplified by the increasing numbers of two-
income households in a society?
a. Social
b. Economic
c. Cultural
d. Technological
Ans. b
91. 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
Ans. a
92. 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
Ans. a
93. 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
Ans. d
94. 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
Ans. B
1. Horizontal integration is concerned with

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

(A) Working
(B) Human
(C) External
(D) Internal
4. Techniques used in environmental appraisal are

(A) single-variable extrapolation/multivariable interaction analysis
(B) Structured/ unstructured expert/inexpert opinion
(C) Dynamic modes and mapping
5. Match The Following
Question Your Answer
a. Ballast business 1. Give the highest priority
b. Gap analysis 2. Difference between desired and projected performance
c. Corporate parenting 3. Managing SBU’s by a corporate

d. Heartland business 4. Fit well but low opportunities
The correct answer is
(A) a-1, b-3, c-2, d-4
(B) a-2, b-1, c-4, d-3
(C) a-4, b-2, c-3, d-1
(D) a-2, b-3, c-4, d-1

6. It enables the strategists to take corrective action at the right time
(A) Implementation control
(B) Special alert control
(C) Strategic Surveillance control
(D) Premise control
7. Like roots of a tree, ________of organization is hidden from direct view.

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

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

(A) Lower management
(B) Middle management
(C) Top management
13. The major issue(s) of appraisal system is (are)

(A) Factors of appraisal
(B) Relevance of appraisal
(C) Procedure of appraisal
14. 14. They have time based utility

(A) Goals
(B) Resources
(C) both ‘A’ and ‘B’
(D) None of the above
15. Formal systems are adopted to bring ________ & amalgamation of decentralized units into
product groups.
(A) Manpower
(B) Co-ordination
(C) Production
16. 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

17. Systems are formal and informal rules and regulations that complement the company
………..
(A) strategy
(B) structure
(C) system
(D) environment
18. The reasons for acquisition are

(A) Increased market power
(B) Increased diversification
(C) Increased speed to market
19. Market research is conducted by

(A) By employees
(B) By research agencies
(C) By consultants
(D) all of the above
20. Vertical integration is concerned with

(A) supply chain
(B) production
(C) Quality
(D) planning
21. ________cost accounting measures the cost of producing and ignores the cost of non-
producing
(A) Lean
(B) Traditional
(C) Environmental
(D) Throughput
22. Match the following

Question Correct Answer
a. Retrenchment Strategies 1. Retrenchments – either internally or externally
2. Contraction of activities through elimination of the scope of one or
b. Divestment Strategies more of its business
c. Turnaround Strategies 3. Involves the sale or liquidation of a portion of a business
(A) a-1, b-2, c-3
(B) a-3, b-2, c-1
(C) a-2, b-3, c-1
(D) a-3, b-1, c-2
23. ETOP stands for ________.

(A) environmental threat & opportunity project
(B) environmental threat & opportunity profile
(C) environmental treaty & opportunity profile
(D) environmental threat & optimum profile
24. The control process requires the following types of information

(A) Planned performance
(B) Variances
(C) Reasons
25. Financial environment is concerned with

(A) demand & supply of money
(B) capital markets
26. The process of forecasting an organization’s future demands for and supply of right type of
people in right number is
(A) Product planning
(B) Process planning
(C) Man power planning

27. 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
28. Harvest strategy is used for

(A) Dogs
(B) Question marks
(D) none of the above
29. These are critical situations that occur unexpectedly and threaten the course of a firm’s
strategy
(A) Crisis
(B) Emergency
(C) Shutdown
30. Attack strategies are

(A) frontal attack
(B) flank attack
(C) encirclement attack
31. An approach that strives to follow ethical principles and percepts is

(A) Moral management
(B) Immoral management
(C) Amoral management
32. Niche marketing means

(A) End user specialist
(B) Specific customer specialist

(C) Geographic specialist
33. Type(s) important managerial skill(s) required for the effective strategic management
(A) Conceptual skill
(B) Human skill
(C) Intellectual skill
34. The model(s) of social responsibility is (are)

(A) Austere Model
(B) Vendors Model
(C) Civic Model
35. Delay in ________ measurement defeats the purpose of evaluation.

(A) Time
(B) Quality
(C) Production
36. Module of Flotilla strikes an optimum balance of ________ and flexibility

(A) Optimisation
(B) Standardisation
(C) Organization
37. The ________ are distinct little business set up as units in a larger company.
(A) Small business Units
(B) Strategic business Units
(C) Internal business Units
38. Knowledge of the relationships between choices, environment & outcomes is

(A) Familiarity
(B) Conversancy
(C) Informality
(D) Normality
39. ________ should have the ability to develop a vision to see patterns into the future.
(A) Leaders
(B) Managers
(C) Management
(D) Workers
40. Factors encouraging joint ventures are

(A) Uneconomical separate existence
(B) Risk of business gets shared
(C) Sharing competence of each other
41. ________ is the drive to achieve beyond one’s expectations.

(A) Motivation
(B) Training
(C) Development programme
42. The decisions which are applied to structured or routine problems are
(A) Semi-programmed decisions
(B) Un-programmed
(C) Programmed
(D) Any of the above
43. Strategic management deals with

(A) Production and quality
(B) Profit and loss
(C) Business process
44. Benchmarking is
(A) Historical analysis
(B) Competitive analysis
(C) Re-engineering
45. GDP stands for

(A) Gross domestic product
(B) Gross domestic production
(C) Gross daily production
(D) Gross domestic process
46. Macro environment

(A) Political- legal
(B) socio-cultural
(C) economic-demographic
47. Factor(s) determining HRP (Human Resource Planning)

(A) Type & Strategy of organisation
(B) Environmental uncertainties
(C) Type & quality of information
48. A major part of strategy implementation is

(A) Planning
(B) Communication
(C) Resource allocation
(D) Monitoring
49. These people are charged with the responsibility of continuous screening of performance?
(A) Managers
(B) Supervisors
(C) Top management
(D) Audit committee

50. ________ and greater accountability replace formal control.
(A) Self-discipline
(B) Self appraisal
51. ………….. function applies to all company levels irrespective of levels of hierarchy.
(A) Planning
(B) Organizing
(C) Staffing
(D) Directing
52. Three C’s affecting today’s companies are

(A) Customer, Competition, Change
(B) Cost, Competition, Change
(C) Customer, Competition, Cost
(D) Customer, Cost, Change
53. Strategic management is concerned with

(A) Short range planning
(B) Long range planning
(C) Both ‘A’ and ‘B’
54. It provides a way to bring in the people dimension in macro company analysis without
using psychological models of human behaviour.
(A) Environment
(B) Society
(C) Culture
55. It is used extensively in organisation and is concerned with action or performance.

(A) Operational control
(B) Production control

(C) Quality control
56. Companies employ trained ________ to develop “competency models” to identify potential
leaders.
(A) Consultants
(B) Psychologists
(C) Trainers
57. Style of a company are the patterns of actions taken by members of …. management over a
period of time
(A) Top
(B) Middle
(C) Lower
(D) Any of the above
58. It concentrates on organisation design and work flow

(A) Systems approach
(B) Flotilla
(C) Method study
(D) Work study
59. The benefits of a change in process are defined in terms of _______ cost savings
(A) Labour
(B) Infrastructure
(C) Production
(D) Raw material
60. Core ideology

(A) Core values
(B) Core purpose

1. BCG in BCG matrix stands for __________
A. Boston Calmette Group
B. British Consulting Group
C. Boston Corporate Group
D. Boston Consulting Group
View Correct Answer
D. Boston Consulting Group
2. The origins of Business Policy & Strategic Management can be retraced
to ________
a. 1930
b. 1911
c. 1879
d. 1938
View Correct Answer
b. 1911
3. Strategy is _________
A. Completely Proactive & Completely Reactive
B. Partly Proactive & Partly Reactive
C. Neither Proactive Nor Reactive
D. Proactive Only
View Correct Answer
B. Partly Proactive & Partly Reactive
4. Which of the following is not part of the micro environment?
A. Technology
b. Shareholders
c. Competitors
d. Publics
View Correct Answer
A. Technology
5. Which of the following is not a part the Macro Environment?
A. Laws & Policies
b. Demographics
c. Suppliers
d. Social Values
View Correct Answer
c. Suppliers
6. What does Stars symbolize in BCG matrix?
a. Introduction
b. Growth
c. Maturity
d. Decline
View Correct Answer
b. Growth
7. What does Dog symbolize in BCG matrix?
A. Introduction
B. Growth
C. Maturity
D. Decline
View Correct Answer
D. Decline
8. The BCG matrix is mainly designed to analyse ______
A. Current strategy of the organization
B. Long-term strategic planning
D. Short-term strategic planning
D. Revenue generated by the organization
View Correct Answer
B. Long-term strategic planning
9. In strategic management, SWOT stands for ______
A. Strength, Weakness, Opportunity, Thread
B. Strength, Weakness, Opportunity, Threat
D. Strong, Weak, Open, Transparent
D. Strategic Weapons for Worldwide Tactics
View Correct Answer
B. Strength, Weakness, Opportunity, Threat
10. Cultural values would be part of which of the following factor in macro
environment?
A. Demographic
B. Social
C. Ecological
D. Natural
View Correct Answer
B. Social
11. Competitive advantage can best be described as _______
A. Perfect Competition in The Market
B. Advantages of Competition
C. Increased Efficiency of the organisation
D. Stand out the organisation
View Correct Answer
C. Increased Efficiency of the organisation
12. A typical dictionary will define the word ________ as something that has to do
with war and ways to win over enemy.
A. Business
B. Policy
C. Management
D. Strategy
View Correct Answer
D. Strategy
13. What does Question Mark (?) symbolize in BCG matrix?
A. Remain Diversified
B. Invest
C. Stable
D. Liquidate
View Correct Answer
14. Market penetration strategy can be executed by _______
A. Decreasing Prices
B. Increasing Prices
C. Increasing Margin
D. Producing at mass level
View Correct Answer
A. Decreasing Prices
15. _________ is not one of the elements of strategic management.
A. Formulating strategy
B. Implementation of Strategy
C. Evaluation of Strategy
D. None of the above
View Correct Answer
D. None of the above
16. What do Cash Cows symbolize in BCG matrix?
B. Invest
C. Stable
D. Liquidate
View Correct Answer
C. Stable
17. The acquisition of a business that operates in the same industry is known as
_____
A. Internal Integration
B. Horizontal Integration
C. External Integration
D. Vertical Integration
View Correct Answer
B. Horizontal Integration
18. The foundation of blue ocean strategy is ________
A. Evaluation
B. Creativity
C. Core strength
D. Value Innovation
View Correct Answer
D. Value Innovation
19. What does Green symbolize in BCG matrix?
A. Invest & Expand
b. Select & Earn
c. Harvest & Divest
d. Both a & b
View Correct Answer
a. Invest & Expand
20. “V” in VUCA stands for ______
A. Viability
b. Volatility
c. Violent
d. Vicinity
View Correct Answer
b. Volatility
21. What does Yellow symbolize in BCG matrix?
A. Invest & Expand
b. Harvest & Divest
c. Select & Earn
d. Both a & b
View Correct Answer
c. Select & Earn
22. Full form of VUCA is Volatility, Uncertainty, Complexity, and______
A. Ambition
b. Anxiety
c. Ambivalency
d. Ambiguity
View Correct Answer
d. Ambiguity
23. ______is not an element of VUCA.
A. Volatility
b. Unclarity
c. Complexity
d. Ambiguity
View Correct Answer
b. Unclarity
24. In SWOT analysis, OT reflects ________factors
A. Internal
b. External
c. International
d. Necessary
View Correct Answer
b. External
25. In SWOT analysis, SW reflects ________factors
A. Internal
b. External
c. International
d. Necessary
View Correct Answer
A. Internal
26. The BCG matrix is also known as________
A. The Boston Box
b. Product Portfolio matrix
c. Growth-Share matrix
d. All of the above
View Correct Answer
d. All of the above
27. Removing the barriers for group countries is known as _____
A. Horizontal Integration
b. Vertical Integration
c. Internal Integration
d. Regional Integration
View Correct Answer
d. All of the above
28. What does Red symbolize in BCG matrix?
A. Invest & Expand
b. Harvest and Earn
c. Harvest & Divest
d. Select & Earn
View Correct Answer
d. Select & Earn
29. The GE 9 cell model is based on _____________
A. Industry attractiveness & Business Strength
b. Industry Growth rate & Business strength
c. Industry Attractiveness & Relative market share
d. Industry Growth & Relative market share
View Correct Answer
a. Industry attractiveness & Business Strength
30. The BCG Matrix is based on __________
A. Industry attractiveness & Business Strength
b. Industry Growth rate & Business strength
c. Industry Attractiveness & Relative market share
d. Industry Growth rate & Relative market share
View Correct Answer
d. Industry Growth rate & Relative market share
31. In strategic thinking, how long is the long term, approximately?
A. 1 Month to 1 year
b. 2 to 3 years
c. 3 to 5 years
d. More than 5 years
View Correct Answer
d. More than 5 years
32. Low cost, Differentiation and Focus are examples of __________________
A. Corporate strategies
b. Operational Strategies
c. Business Strategies
d. Functional Strategies
View Correct Answer
c. Business Strategies
33. The word tactic is most likely to be associated with _________
A. Business Strategy
c. Operational Strategy
d. All of the above
View Correct Answer
c. Operational Strategy
34. In BCG matrix, __________ is the label of the horizontal axis
A. Relative Market share
b. Business Strength
c. Industry Growth Rate
d. Market Growth Rate
View Correct Answer
a. Relative Market share
35. The three organizational levels includes______
A. Corporate level
b. Business level
c. Functional level
d. All of the above
View Correct Answer
d. All of the above
36. In BCG Matrix, what is the label of the Vertical axis?
b. Business Strength
View Correct Answer
37. In GE 9 cell matrix, what is the label of the horizontal axis?
b. Industry Attractiveness
View Correct Answer
b. Industry Attractiveness
38. In Strategic Management, Another name for GE 9 cell model is ______
A. Three colour matrix
b. Stop light matrix
c. Strategic Portfolio Matrix
d. Colour light matrix
View Correct Answer
b. Stop light matrix
39. According to ___________, strategic management is not a box of tricks or a
bundle of techniques. It is analytical thinking and commitment of resources
to action.
A. Philip Kotler
B. Andrew Carnegi
C. Peter Drucker
D. Abraham Maslow
View Answer
C. Peter Drucker

Strategic Management Multiple Choice Questions

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Strategic Management Multiple Choice Questions

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301 Strategic management

Strategic Management Multiple Choice Questions

Strategic Management MCQ: Multiple Choice

1. The fundamental purpose for the existence of any organization is described by

1. Horizontal integration is concerned with

(C) Product planning

(D) All of the above

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

4. Techniques used in environmental appraisal are

(B) Structured/ unstructured expert/inexpert opinion

(C) Dynamic modes and mapping

(D) All of the above

5. Match The Following

Question Your Answer

a. Ballast business 1. Give the highest priority

b. Gap analysis 2. Difference between desired and projected performance

c. Corporate parenting 3. Managing SBU’s by a corporate

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

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

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

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

(B) Special alert control

(C) Strategic Surveillance control

(D) Premise control

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

(C) Core competence

(D) All of the above

(D) any of the above

10. Criteria for making an evaluation is (are)

(B) Consistency with environment

(D) All of the above

12. Strategic management is mainly the responsibility of

(B) Middle management

(C) Top management

(D) All of the above

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

(B) Relevance of appraisal

(C) Procedure of appraisal

(D) All of the above

14. 14. They have time based utility

(C) both ‘A’ and ‘B’

(D) None of the above

(D) All of the above

(B) strategy, structure

(C) structure, structure

(D) strategy, strategy

18. The reasons for acquisition are

(B) Increased diversification

(C) Increased speed to market

(D) All of the above

19. Market research is conducted by

(B) By research agencies

(D) all of the above

20. Vertical integration is concerned with

22. Match the following

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

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

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