1. The word “strategy” is derived from the Greek word “------"
Correct : A. Strategos
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.
Correct : 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.
Correct : D. Strategic Management
4. Which of the following is not a characteristic of strategic Management?
Correct : 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.
Correct : B. Corporate level
6. The fundamental purpose for the existence of any organization is described by its
Correct : B. mission
7. The fundamental purpose of an organization’s mission statement is to
Correct : B. Define the organization’s purpose in society
8. The acronym SWOT stands for
Correct : 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?
Correct : D. It concerns the present direction of the organization.
10. Which of the following is an issue considered in developing corporate strategies?
Correct : C. What resources do we have to implement our strategies?
11. Which of the following is NOT a major element of the strategic management process?
Correct : C. Assigning administrative tasks
12. Competitive advantage can best be described as:
Correct : A. increased efficiency.
13. is the foundation of blue ocean strategy.
Correct : C. Value innovation
14. The various organizational routines and processes that determine how efficiently and
effectively the organization transforms its inputs into outputs are called:
Correct : B. core competencies.
15. When defining strategic management, the most important thing to remember is that itis:
Correct : C. A living evolving process
16. An organisation’s strategy:
Correct : B. generally, forms over a period of time as events unfold
17. The primary focus of strategic management is:
Correct : B. the total organisation
18. Which of the following is not an advantage of strategic management?
Correct : B. It helps improve the political, economic, social and technological environment of the organisation
19. Which of the following defines what business or businesses the firm is in or should be in
Correct : B. Corporate strategy
20. Which of the following defines how each individual business unit will attempt to
achieve its mission?
Correct : A. Business strategy
21. ---------- strategy defines the uses of corporate strategy and specific tactics for each
market.
Correct : A. Business strategy
22. ----------- strategy defines the day to day actions need to deliver the corporate and
business strategies.
Correct : D. Functional strategy
23. Which of the following focuses on supporting the corporate and business strategies?
Correct : C. Operational strategy
24. Which one of the following is not a primary task of strategic managers?
Correct : B. Developing the steps to follow in implementing operational level plans
25. The task of strategy choice involves:
Correct : A. developing plans and activities which will improve the organisation’s performance and competitive position
26. Which one of the following is at the core of strategic management?
Correct : C. Adapting the organisation to a changing external environment
27. The corporate level is where top management directs:
Correct : C. overall strategy for the entire organization
28. The three main organizational levels are:
Correct : A. corporate level, business level, functional 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.
Correct : D. Operational strategy
30. Which of the following is/are not an element/s of strategic management Process?
Correct : D. None of these
31. Which one of the following is NOT included in the Porter’s Five Forces model?
Correct : C. Rivalry among stockholders
32. What is meant by the term ‘Stakeholder’?
Correct : B. A person who is related with a business.
33. The strategic management process is
Correct : 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.
Correct : A. vision
35. A firm’s mission:
Correct : A. is a statement of a firm’s business in which it intends to compete and the customers which it intends to serve.
36. The environmental segments that comprise the general environment typically will
NOT include:
Correct : C. substitute products or services.
37. An analysis of the economic segment of the external environment would include all of the following EXCEPT:
Correct : D. the move toward a contingent workforce.
38. Product differentiation refers to the:
Correct : C. belief by customers that a product is unique.
39. Which of the following is NOT an entry barrier to an industry?
Correct : D. bargaining power of suppliers
40. Switching costs refer to the:
Correct : 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…)
Correct : C. product differentiation in the industry is low.
42. All of the following are forces that create high rivalry within an industry EXCEPT
Correct : C. fast industry growth.
43. According to the five factors model, an attractive industry would have all of the following characteristics EXCEPT:
Correct : A. low barriers to entry.
44. Internal analysis enables a firm to determine what the firm:
Correct : A. can do.
45. An external analysis enables a firm to determine what the firm:
Correct : D. might do.
46. is/are the source of a firm’s , which is/are the source of the firm’s
Correct : A. Resources, capabilities, core competencies
47. In the airline industry, frequent-flyer programs, ticket kiosks, and e-ticketing are all examples of capabilities that are
Correct : D. valuable.
48. Firms with few competitive resources are more likely
Correct : C. delay responding to competitive actions.
49. Competitors are more likely to respond to competitive actions that are taken by
Correct : 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.
Correct : D. Strategic management
51. Which individuals are most responsible for the success and failure of an organization?
Correct : A. Strategists
52. Which of the following is an element of a firm’s remote external environment?
Correct : B. Political agencies
53. Long-term objectives should be all of the following except:
Correct : B. continually changing.
54. What are guides to decision making?
Correct : C. policies
55. According to Greenley, strategic management offers all of these benefits except that
Correct : D. it maximizes the effects of adverse conditions and changes.
56. The vision and mission statement can often be found
Correct : B. in annual reports.
57. The process of performing an external audit needs to include:
Correct : B. as many managers and employees as possible.
58. Which of the following is not a stage of strategy formulation techniques?
Correct : B. Matching stage
59. ST Strategies is an important strategy to
Correct : B. Overcome external threats
60. The immediate external environment includes:
Correct : C. Competitors
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.
Correct : D. Societal environment
62. Strategic management involves the , directing, and controlling of a
company’s strategy-related decisions and actions.
Correct : C. Planning; organizing
63. A strategy is a company’s
Correct : C. Game Plan to outsmart competitor
64. Strategy-formulation concepts and tools
Correct : A. Do not differ greatly for different size and type of organizations
65. Annual objectives
Correct : B. Serve as guidelines for action, directing and channelling efforts and activities of organization members
66. Which of the following resources is used by all organizations to achieve desired
objectives?
Correct : D. All of the mentioned options
67. Strategic management is
Correct : 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
Correct : A. Strategy
69. Strategic issues require which level of management decisions?
Correct : B. Top
70. Which of these basic questions should a vision statement answer?
Correct : D. What do we want to become?
71. Strategic management process activates in the sequence of
Correct : A. Environmental scanning, Strategy formulation, Implementation, c ontrol and evaluation
72. “A possible and desirable future state of an organization” is called:
Correct : B. Vision
73. Strategic decisions are based on what managers , rather than on what they
Correct : C. Forecast; know
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:
Correct : D. Concern for Public Image
75. Strategic-management audit is known as:
Correct : A. Environmental scanning
76. Forecasting tools can be broadly categorized into two groups. Those are:
Correct : C. Qualitative, Quantitative
77. identifies a firm’s major competitors and their particular strengths and weaknesses in relation to a sample firm’s strategic position.
Correct : A. Competitive Profile 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:
Correct : C. Strategy Implementation
79. Which statement best describes intuition?
Correct : C. It should be coupled with analysis in decision-making.
80. What are the means by which long-term objectives will be achieved?
Correct : A. Strategies.
81. When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit.
Correct : B. political
82. is not part of an external audit.
Correct : B. Analysing financial ratios
83. Typically, how many strategic decision levels are in the corporate decision-making
hierarchy?
Correct : A. 3
84. External assessment is performed in which of the strategic management phase?
Correct : A. Strategy formulation stage
85. Political variables have a significant effect on
Correct : A. Strategy formulation and implementation
86. Strategic decisions ostensibly commit the firm for
Correct : D. A long time, typically five years
87. Social responsibility is a critical consideration for a company’s strategic decision makers since
Correct : B. The mission statement must express how the company intends to contribute to the societies that sustain it
88. Which of the following are signs of weakness in a company’s competitive position?
Correct : C. A declining market share, poor product quality and few sales in market
89. It directs at developing new products before competitors do at improving product quality or at improving manufacturing processes to reduce costs.
Correct : C. Research and development
90. “Identifying and evaluating key social, political, economic, technological and competitive trends and events”. Which of the followings best describes this statement?
Correct : C. Performing an external audit
91. The central purpose of strategic evaluation is ---------------
Correct : A. Evaluate effectiveness of strategy to achieve organisational objectives
92. Strategy evaluation at the level involves using specific performance
measures-qualitative and quantitative-for each functional area.
Correct : C. functional
93. ---------- is described as the process which examines all the components, internal or
external, that has an influence on the performance of the organization.
Correct : A. Environmental analysis
94. Which of the following is not an external environment component of a business?
Correct : B. Corporate structure
95. ---------- analysis begins with identifying present as well as potential competitors.
Correct : C. Competitor
96. Characteristics of a business which makes it disadvantageous relative to competitors.
Correct : C. Weakness
97. Elements in a company’s external environment that allow to formulate and implement
strategies to increase profitability.