Assignment C

Question 1
It is generally agreed that the role of strategy is to:
a) Make best use of resources
b) Achieve competitive advantage
c) Make profits for the organization
d) Make the best products and services
Question 2
According to Porter (1996) in his article ‘what is strategy?’ strategy is about being:
a) Different
b) Better
c) Bigger
d) Open minded
Question 3
An organization's external environment consists of the general or macro environment
and:
a) The internal environment
b) The competitive environment
c) The specific environment
d) The micro-environment

Question 4

Alfred Chandler believed that:

a) Strategy should be developed first and the organization tailored to meet the requirements of the
strategy
b) Set the strategy according to the organization's strengths and weaknesses
c) Strategy should be allowed to develop incrementally
d) Strategy should be allowed to evolve over time

Question 5

The key activities in the strategic management process are:

a) Analysis, formulation, review
b) Analysis, implementation, review
c) Analysis, formulation, implementation
d) Formulation, analysis, implementation

Question 6

Strategy analysis is also referred to as:

a) SWOT analysis
b) Strategy diagnosis
c) Rational analysis
d) Situation analysis

Question 7

Strategy formulation takes place at two levels. These are:

a) Conscious and sub-conscious
b) Implicit and explicit
c) Corporate and business
d) Business and operational

Question 8

The goals of an organization derive from its:

a) Strategy
b) Purpose
c) Objectives
d) Mission

Question 9

The statement of an organization's aspirations can be found in the organization's:

a) Mission statement
b) Strategic objectives
c) Actions
d) Vision statement

Question 10

Decisions regarding which industries to compete in are the concern of:

a) Business level strategy
b) Corporate level strategy
c) Mergers and acquisitions
d) Functional level strategy

Question 11

Competitive strategy is also known as:

a) Competitive positioning
b) Corporate level strategy
c) Industry strategy
d) Business level strategy

Question 12
In the SWOT analysis, the 'strengths' and 'weaknesses' part refers to:
a) What the organization does internally in relation to competitors
b) The potential level of profits in the industry
c) The quality of the products and services in relation to competitors
d) The potential level of sales in the market

Question 13

A method for imagining alternative, possible futures is known as:

a) Scenario imagining
b) Scenario composition
c) Scenario planning
d) Scenario envisioning

Question 14

The general environment is also referred to as the:

a) Micro-environment
b) Macro-environment
c) Competitive environment
d) External environment
Question 15

The general environment can be broken down using a PEST analysis. Conventionally the
PEST analysis consists of:
a) Political, economic, scientific, technological
b) Political, environmental, social, technological
c) Political, economic, social, technical
d) Political, economic, social, technological

Question 16

Competitive rivalry will be high if:

a) The industry is fragmented
b) There are a few strong players in the industry
c) There is a high degree of differentiation
d) The industry is in its infancy

Question 17

A substitute product or service is:

a) A competitor's product or service
b) An alternative way of meeting the same need
c) A new entrant into the industry
d) A less attractive way of meeting the same need

Question 18

Buyer power is high if:

a) Differentiation is low
b) Switching costs are low
c) They have little information
d) The buyer requires a high quality product for their own production

Question 19

In Porter's Five Forces, the 'threat of new entrants' relates to:

a) Barriers to entry
b) Substitutes
c) Switching costs
d) Buyer power
Question 20

The value chain is subdivided into two main headings. These are primary activities and:
a) Peripheral activities
b) Support activities
c) Secondary activities
d) Outsourced activities

Question 21

The decision regarding whether to do manufacturing within the organization or to sub-

contract it to someone else is popularly known as:
a) An 'in or out' decision
b) A 'make or buy' decision
c) A 'do-it-yourself' decision
d) A 'vertical-integration' decision

Question 22

WH-Smith the stationer and bookseller has a store on most high streets in the UK. In
terms of the SWOT analysis, this could be considered a:
a) Strength
b) Weakness
c) Strength and a weakness
d) Neither strength nor a weakness
Question 23

A market is defined by:

a) Demand conditions and customers
b) Demand conditions and suppliers
c) Supply conditions and production technology
d) Supply conditions and customers

Question 24

Porter's generic strategies are:

a) Low price, differentiation, focus
b) Cost leadership, differentiation, cost focus, focus differentiation
c) Price leadership, differentiation, focus
d) Low cost, differentiation, focus differentiation

Question 25

According to Porter, if an organization does not follow either a cost reduction strategy or
a differentiation strategy they are:
a) Hybrid
b) Stuck in the middle
c) Typical
d) No frills

Question 25

In Porter's Generic Strategies model, a focus strategy involves:

a) Selling a limited range of products
b) Selling to a narrow customer segment
c) Selling to one region only
d) Selling simple products that are cheap to produce

Question 26

A differentiation strategy offers:

a) A broad segment something unique
b) A narrow segment something unique
c) A broad segment something more expensive
d) A narrow segment something more expensive

Question 27
Kim and Mauborgne (2005) argue that organizations should try to capture uncontested
market space. These uncontested markets are known as:
a) Blue skies
b) Blue oceans
c) White skies
d) Fresh snows

Question 28

In Ansoff's matrix, 'product development' involves going in the direction of:

a) Presentproducts to present markets
b) Presentproducts to new markets
c) New products to present markets
d) New products to new markets

Question 29

Horizontal integration is where:

a) A firm takes over a supplier
b) A firm takes over a distributor
c) A firm takes over a competitor
d) A firm takes over a manufacturer

Question 30

………………reduces uncertainty
a) Negotiating
b) Planning
c) Organizing
d) Leading

Question 31

………………are those plans that are extended beyond three years

a) Short-term plans
b) Long-term plans
c) Specific plan
d) Strategic plan

Question 32

Value Chain is an effective tool for..................................

a) External Analysis
b) Internal Analysis
c) Selfanalysis
d) Systematic analysis

Question 33
The preparation of ETOP involves:

a) Dividing environment into sectors, sub factors, analyze impact of each sector & sub factor on
organization, description of impact of each sub factor into a statement which is positive, neutral
or negative.

b) Description of impact of each sub factor into a statement which is positive, neutral or
negative. , dividing environment into sectors, sub factors, analyze impact of each sector & sub
factor on organization
Question 34
Make or buy decision is related with ________strategy

a) Vertical (forward) integration

b) Vertical (backward) integration
c) Horizontal integration
c) Diversification
Question 35
Strategic management is mainly the responsibility of
a) Top Management
b) Senior Management
c) General Management
c) Middle Management
Question 36
A hardware manufacture enters into software is an example of ________integration

a) Vertical (forward) integration

b) Vertical (backward) integration
c) Horizontal integration
c) Diversification
Question 37
True/False
Question: Scheduling is a part of strategic management.
Correct Answer
a) False
b) True

Question 38
Factors to be considered in political- legal environmental scanning are

a) govt. policies, stability, philosophy of govt. , legal system, implementation, infrastructure ,

import-export
b) govt. policies, stability, philosophy of govt. , legal system, implementation, infrastructure

Question 39
True/False
Micro environment is the internal environment of a company.
Correct Answer
a) False
b) True

Question 40
Perspective which does not belong to four Balanced Scorecard perspectives is:
a) The Business Process Perspective
b) The Customer Perspective
c) The Learning & Growth Perspective
d) The Business Reengineering Perspective