Questions

Subject Name : Chapter Name : chp 6 Business Unit Level

Strategy

1. The SBU strategy being an independent strategy need not conform to the
corporate philosophy and the governance

True
False

2. Which of the following is most likely to be supply side dimension and looks
at the core strength or core competency of the firm to differentiate
its offerings in the market place?

Cost competency
Unique differentiation competency
Both 1 and 2
None of the above

3. Shrikant, CEO of TGY Limited is of the view that combining the cost and
unique differentiation strategy is difficult; however it can be great
strategy to create a new market place. true or false?

True
False

4. Which of the following is not a classic competitive strategy from the

perspective of Porter’s model?

Cost leadership
Differentiation
Different Product ingredients sourcing location
Market segmentation or focus

5. Which of the following is most likely to be reason for higher profitability

of firms with low market share according to the Porter’s model?

Cost leadership
Market segmentation
Both 1 and 2
None of the above

6. Anand, Head of Cost Management Function at GTY Limited is of the view that,
it is important to make a distinction low cost strategy and best
cost strategy as low cost strategy may not provide sustainable competitive
advantage in the long term. true or false?

True
False

7. To succeed at offering the lowest price while still being able to achieve
profitability and a high return on investment, the firm must be able
to operate at a _____________cost than its rivals.

Higher
Lower
Same
None of the above

8. In which of the following cases the production costs are least likely to be
lower?

Using standard components

Using more components
Limiting number of models produced
Larger production runs

9. Aman, CEO of GTF Limited is keen to keep the overheads low. Which of the
following strategy he is not likely to implement?

Paying low wages

Locating premises in high rent areas
Fostering cost conscious culture
Starting optimization initiatives

10. Ketan, new joiner at GTF Limited is studying the shareholder value model. He
is listing down the learning. Which of the following is least
likely to be part of the learning of Ketan?

Use of specialized knowledge

Knowledge should become generic
Competition should not be able to replicate the model
Advantage is static

11. The _________ model utilizes a large base of resources that allows an
organization to outlast competitors by practicing a differentiation strategy

Shareholder value model

Unlimited resources model
Constraint support model
Porters model

12. Which of the following is least likely to be value disciplines that can
create customer value and provide competitive advantage?

Operational excellence
Competitor intimacy
Product leadership
Customer intimacy

13. Which of the following is least likely to be limitation of a generic

strategy?

Very focused and to the point

Lack specificity
Lacks flexibility
Scope and possibilities limited

Questions
Subject Name : Chapter Name : chp 7 Functional Unit Level
Strategy

1. _____________ is the key function that serves as the interface between the
market and the business unit and its functions
Production
Sales
Marketing
Strategy

2. Which of the following is most likely to be applicable in the process of

marketing strategy?

Organization concentrates its resources on increasing sales

Achieving a sustainable competitive advantage for organization
Both 1 and 2
None of the above

3. Anand, Head of Marketing is formulating a marketing entry strategy for his

company. Which of the following aspects he is least likely to include?

Identification of market
Exiting from the market
Filling proactively needs of the market
Reach marketing objectives

4. Marketing strategy needs to take a long term view and lifetime value models
which can be very powerful in helping to stimulate the
effects of ______

Strategy on customer acquisition

Revenue per customer
Churn rate
All of the above

5. Aman, is working on assessment of internal environmental factors for

formulation of the marketing strategy. Which of the following are least
likely to be such factors?

Competitor analysis
Marketing mix
Performance analysis
Strategic constraints

6. An organization which replicates the products and services of the leaders is

_______

Follower
Disciple
Copier
Nicher

7. ABC Limited a company following nicher strategy for gainig market dominance.
It is least likely to perform which of the following activities?

Focus on unique concept

Concentrate their efforts on specialized products or services
Replicate products and services launched by close competitor
Seek to attract specific segment of customer

8. At market introduction strategy, the marketing strategies has which of the

following principle strategies to chose from?
Penetration or optimization
Penetration or niche
Niche or optimization
Expansion or contraction

9. At the early growth stage of organization need to chose from two alternatives
i.e. __________ and ____________

Profitability, market share

Segment expansion, brand expansion
Market share expansion, competition
Revenue increase, cost optimization

10. Which of the following is practical application of evaluation of marketing

mix modeling?

Determine optimal marketing budget

Allocation of resources to budget
Both 1 and 2
None of the above’

Questions
Subject Name : Chapter Name : chp 8 Strategy Formulation

1. Once the SWOT analysis has been completed successfully____ is used to

generate alternative course of actions or the company’s strategy.

SW/OT Matrix
Porters Model
Miles and Snow model
PEST Analysis

2. ABC Limited has formulated a strategy to acquire a competitor with

complementing product line. Which of the following strengths you would
recommend ABC Limited to leverage?

Strong balance sheet position

Large internal accruals
High level of credit rating
All of the above

3. Which of the following scenarios are least likely to be helpful in scenario

construction?
Optimistic
Adventurous
Most likely
Pessimistic

4. The strategic decisions must be __________ with the organization culture to

be successful

Consistent
Divergent
Misfit
Perverted

5. Which of the following is least likely to be ethical standard to be followed

by any organization?

Integrity
Profitability at any cost
Respect
Accountability

6. Ketan, Manager Strategy is evaluating the availability of the firm’s

resources and processes in the process of formulating the strategy through
SWOT analysis. Which of the following is least likely to be included in the review
conducted by Ketan?

Human resources
Organization resources
Leadership resources of competitor
Plant capacity and access to raw materials

7. ABC Limited has just completed a SWOT Analysis and keen to identify which of
the following is most likely to be threat to the organization?

Competitive disadvantages
Entry of new competitors
Below average marketing skills
Poor track record

8. Which of the following most likely to be opportunity for organization?

Location advantage
Adequacy of financial resources
Diversification into related products and services
Adverse demographic changes

9. Kirtan, Manager Strategy is working on formulation of appropriate questions

for identification of the strengths of organization. Which of the
following is least likely to be an appropriate question?

What competitive advantages does organization have

What should the company avoid in its product or go-to-market strategy
What does the organization do better than competitor
What factors mean that the company can get the sale

10. Which of the following is not an appropriate question for identification of

weakness in an organization?

What are the factors that impact the company’s sales

What is the organization’s unique selling proposition
Who are the people in the market likely to see as weaknesses
What are the capabilities that company lacks

11. _________ is one of the tool adopted by corporations to retain top executives
who have expertise which are very critical to the
firm’s success

Voluntary retirement scheme

Providing travelling allowance
Reimbursement of official expenses
Long term incentive plans

12. Sapan, Head of Strategy at HYT Limited is of the view that even the best
formulated strategy would fail if the right skilled employees are not
available to implement them at the right time. true or false?

True
False

Questions
Subject Name : Chapter Name : chp 9 Strategy Implementation

1. Which of the following is the first step in the process of successful

implementation of the strategy?

Formulation of strategy and structure

Measurement of strategy
Report of progress
Making decisions

2. Which of the following measures are least likely to help the organization to
communicate the strategy to the people at large?

Visualizing the strategy through illustration

Explaining how each element is completely unrelated to each other
Defining each employee’s responsibility
Orientation on actions and impact on the organization

3. Which of the following is most suitable measure for evaluation of performance

of strategy implementation?

Balanced score card

Six Sigma
Porters model
Firms profitability

4. Which of the following activities are involved in measuring progress of the

strategy implementation?

Evaluation that financial commitments are kept

Review of strategy regularly
More focus towards producing results
All of the above

5. Dinkar, Head of Corporate Strategy is keen to ensure that strategy activation

is completed on time. Which of the following activities he is least
likely to include in his plan which is to be presented to the management?

Communicating the strategy and motivating employees

Environment analysis and design of strategy
Setting goals and tasks
Formulating policies and functional strategies

6. Which of the following is not essential characteristics of top leadership and

CEO of organization for ensuring successful implementation of the
strategy?

Ability
Integrity
Personal Ego
Commitment to strategy

7. In the process of strategy implementation the CEO’s role is____________

Symbolic and dynamic
Authoritative and coercive
Substantive and academic
Symbolic and substantive

8. The strategic plan and long term objectives of the organization must be
translated into an executable_______________
Annual Operating Plan
5 year work plan
Flexible plan
Travel plan

9. Which of the following is least likely to be incorporated in the Annual

Operating Plan (AOP) in the process of strategy implementation?
Provide yearly perspective to the organization
Contains targets to be achieved by different people
Contains the confidential details of companies to be acquired and target price
Sets specific time frame for achievement of the objectives

10. During the process of strategy implementation and development of annual

operating the plan the annual goals are least likely to be laid down for
which of the following?

All lines of business

All departments of nearest competitor
All functional areas
All the employees across different levels

11. Which of the following is least likely to be a Business Unit Structure?

B2B
B2C
Marketing and Sales Function
Automobile division

12. ________________structure has an advantage that its uses delegated authority

so the performance can be directly measured with each group

Divisional
Functional
Departmental
Regional

13. Which of the following is least likely to be use of policies and guidelines
in the process of strategy implementation?

Serve to channelize and guide organization energy

Assist in successful implementation of strategy
Strategy is documented and cannot be ever changed for any reason
Elimination of discretionary misuse by certain employees

14. Policies and guidelines should not________

Stipulate how business to be conducted

Ensure governance
Promote discretionary use by all employees
Maintain compliance and risk management practices at better levels

15. ABC Limited has a Functional Organizational structure. Which of the following
aspect the organization should consider to ensure effective
communication of the strategy?

Inflexible approach
Rigid and slow communication
Lateral communication between functions
Information disseminated vertically

Questions
Subject Name : Chapter Name : chp 10 Strategy Evaluation
and Control

1. In the strategic control process, which of the following is most likely to be

the first step the organization needs to take?

Establish pre-determined standards

Measure performance
Determine what to measure
Take corrective action

2. In the process of defining what to control, while implementing the strategic

control process, which of the following aspects the manager is least
likely to consider?

Identify measure on instinct

Make a choice
Seek top management commitment
Communicate that strategic control is an essential activity

3. Which of the following standards of measuring performance will reflect the

need that all organization has certain obligations towards society?

Employee attitude standards

Public responsibility standards
Personnel development standards
Productivity standards

4. ABC Limited is implementing Balanced Scorecard Approach for measuring the

performance. Which of the following is least likely to ensure all round
and comprehensive performance measurement?

Limited to traditional financial measures

Effectiveness of business processes
Innovation factor
Customer orientation

5. Anand, Head of Business Strategy is of the view that, in case of informal

organizations the management can not only influence but also can controls
the organization for exercising strategic control. true or false?

True
False
6. ANB Industries Limited is in the process of evaluating the performance of the
organization and analyzing the deviations. Which of the following
questions the management is least likely to ask?

Are the standards appropriate for the stated objectives and strategies?
Are the standards are completely in alignment with the competitor?
Are activities being executed appropriate for achieving standard
Are strategies aligned to the changing environmental conditions?

7. To achieve the congruence and have effective evaluation of control systems,

which of the following factor needs to be related to the objective and
usefulness to the organization?

Scope
Range
Magnitude
All of the above

8. Which of the following is least likely to build pervasiveness in the

evaluation and the control systems?

Need for the process to be appreciated throughout the organization

Communication is essential to have inclusiveness
Evaluation system should dominate the decisions
Foster mutual understanding, trust and common sense

9. ABC Limited is in the process of setting up a strategy evaluation system.

Which of the following is least likely to be a factor on which the
simplicity or complexity of the strategy evaluation system depends on?

Purpose of evaluation
Variables to be monitored
Organization structure of the competitor
Diversity of the activities involved

10. The main purpose of the control in the strategy evaluation system is to
trigger ______________

Information
Action
Reporting
Analysis

11. TGY Limited is in the process of formulating budget for the organization.
Which of the following is most likely to be challenging tasks which
TGY limited likely to face?

Setting the standards

Evaluation of expenses and income to be budgeted
Setting assumptions on various aspects
Formulation of a realistic budget

12. Which of the following factors is least likely to be considered in the

formulation of contingency plan in the process of strategy implementation and
monitoring?

Natural calamities
New product launches by the company
Boycotts
Regulatory policy changes

13. Which of the following is least likely to be step which will help the
organization to have a robust contingency plan in place?

Strategic managers be able to foresee and identify events

Specification of the threshold levels and trigger points
Seek help of the competitor
Assessment of events on probability and impact

14. ABC Limited is developing a crisis management plan. The Head of Planning has
listed down certain steps for the review. Which of the following steps is least
likely to help the organization in development of a good crisis management plan?

Development of crisis management team

Outsourcing all critical operations to third parties
Communication of the contingency plan
Continuous update to the stakeholder

15. Anand, Head of Operations is in the identifying the key role management can
plan in the disaster recovery and business continuity planning at GTY Limited.
Which of the following is most critical area which may require management’s
involvement?

Overseeing the plan

Providing input and support
Putting plan into action during emergency
All of the above

16. _______________ is the first step in development of a robust disaster

recovery and business continuity plan?

Development of alternate plans

Business impact analysis
Setting up of DR infrastructure
Identification of BCP and DR site vendor

Questions
Subject Name : Chapter Name : chp 11 Globalisation Strategy

1. Sachin, Head of Strategy at TFR Limited is of the view that a global

orientation for an organization can lessen the risk of its business profile,
because demand and competitive factors tend to be same among nations. true or
false?

True
False

2. Which of the following is least likely to be cost driver which may determine
the extent and nature of globalization in the industry?

Potential of economies of scal

Existence of global distribution networks
Transportation costs
Product development costs

3. Anil, Head of Strategy at RTF Limited, is evaluating the global drivers which
will determine the extent and nature of globalization in an industry.
Which of the following is least likely to be government driver?

Favorable trade policies

Degree of homogeneity of customer needs
Foreign direct investments
Compatible technical standards

4. Which of the following is least likely to be an attribute of globalization?

Forging alliances in the domestic market with competitors

Base-lining product development and production planning
Developing global outlook
Strategy and planning to expand business globally

5. In which of the following cases the advantage and disadvantages of pursuing

global expansion needs to be carefully reviewed before pursuing
expansion into emerging markets?

Lack of basic infrastructure

Complex government policies
Tax regimes
All of the above

6. Which of the following is least likely to be a stage of development of the

firms when it goes through to become a global organization?

Builds local dealer and distributor network

Forging tie up with competitors in the home country market
Taking over of marketing and distribution activities on its own
Carry out own manufacturing

7. Which of the following is least likely to enable the development of a global

organization?

Resistance to new culture

Young population
Good demographics
Vast talent pool and growing entrepreneurship

8. Which of the following factors are least likely to constitute the limiting
part of business climate of any country?

Restrictions on sourcing raw materials

Limitation on Foreign Direct Investments
Fostering culture for innovation
Non-trade barriers

9. AGT Limited, a company in infrastructure business is setting up a company in

United Kingdom. The CEO is preparing list of areas where the company
needs government support. Which of the following is least likely to be an area in
the CEO’s list?

Policy of public private partnerships in the infrastructure space

Speedy environmental clearance
Increased income tax rate for foreign entities operating in UK
Simplification of land acquisition reforms

10. Which of the following areas is least likely to create image for a country as
an investment destination?

Bureaucratic corruption
Better infrastructure
Pro foreign investment policies
Single window approval process

11. Which of the following is not likely to be a positive impact of globalization

on domestic players in the short term?

Stability and longer growth

Lower inflation and interest rates
Increased complexity and inability to compete with MNCs
Unparallel access to knowledge

12. AGT Limited is looking at formulating a global strategy for the organization.
Which of the following is least likely to be considered by the company in the
process of strategy formulation?

Analysis of the domestic market situation

Coordination of product and pricing across multiple international markets
Bring in cultural diversity and creativity
Ensuring global orientation to the strategy process

13. GTY Limited going global. Which of the following challenges it is least
likely to face in the market?

High levels of costs

Simple government approval processes
Sourcing of huge investments
Cultural problems

14. ________________ firms compete in each national market independently of other

national markets

Global industries
Domestic companies
Multi-state cooperatives
Multi-domestic industries

15. Which of the following is least likely to be part of a global strategy of any
organization?

Competing in the domestic market

Standardization of the product
Centralized control
Integrating and co-coordinating activities across borders

Questions
Subject Name : Chapter Name : chp 12 Strategic Leadership

1. Which of the following is least likely way to empower employees in the

process of demonstrating strategic leadership?

Training and Development

Appropriate rewards and recognition schemes
Systems and processes to guide employees
Defining organization’s targets in a non-participative approach

2. Leadership is all about coping with change. Which of the following factors
are least likely to test this ability of leadership?

Business becoming more competitive

Stability of business and market share
Deregulation of markets
Over-capacity of capital intensive industries

3. ___________creates the systems that managers manage and changes them in

fundamental ways to take advantage of opportunities and to avoid hazards
Management skill

Leadership
Motivation
Rewards

4. Kamal, Head of Strategy at FTY Limited is of the view that for strategic
leadership to be effective, the vision of the company should be very
complex. true or false?

True
False

5. Harish, CEO of TYG Limited is worried about handling change as a part of the
new business strategy. Which of the following initiatives are least
likely to be helpful to Harish to address his problem?

Motivating and inspiring people for the change

Dictating the target and establishment of zero tolerant performance system
Ensuring that organization’s vision is in line with employees value system
Involvement of employees in the strategy discussions

6. Which of the following is most likely to be part of the change management in

an organist ion?

Changes in regulatory and policy environment

Faster technological change
Change of premises and office location
Shift in demographics and social trends

7. The role of the strategic leadership is NOT______________

To create shared vision of the organization

Encourage building up of effective leadership across organization
Allow resisting change in a highly competitive environment
Empowerment of participants to take decisions

8. Gagan, Head of HR is of the view that the dissemination of leadership allows

an organization to deal effectively with increasing change in its
competitive environment. true or false?

True
False

9. Which of the following action of the leaders is least likely to help the
organization to be effective in strategic leadership?
Entire organization is focused on the single goal structure
Everyone speaks in different voice
Conflicts between stakeholders are resolved
Organization share the same visionz

10. Leadership style in an organization should not be only____________

Open
Warm
Authoritative
Friendly

11. In a learning organization, the role of a leader is least likely to be of

which of the following ?

Designer
King
Teacher
Steward

12. Which of the following is the most likely to be role of a leader, where the
leader is also who empowers the organization to achieve the
goals and helps in facilitating business decisions?

Designer
Teacher
Steward
Apprentice

13. Amit, Head of Business Unit, is keen to play the role of leader as a teacher
to ensure that the strategy is implemented effectively.
Which of the following activities he is most likely to consider?

Designing the strategy and structure

Create general awareness through constant communication
Seeks how to change in the competitive environment
Empowers organization to achieve the goals

14. A leader in a learning organization is least likely to influence which of the

following perceptions of reality for employees?

Events
News
Patterns of behaviours
Systematic structure

15. A visionary leader who deals only with events or pattern of behavior will
disseminate reactive and well as generative culture in the
organization

True
False

Questions
Subject Name : Chapter Name : chp 13 Corporate Governance

1. The key theme of corporate governance with respect to business organization

is _________

Profits
Transparency
Cost reduction
Merger and acquisition

2. Which of the following activity is least likely to form part of the corporate
governance initiative?

Building up school for affluent class children

Feeding the under-privileged
Building up hospitals for people in the vicinity
Creation of fund for maintenance of forests

3. Which of the following is least likely to be key component of good corporate

governance?

How business is followed?

How much margins are earned through cartelization?
How business is conducted?
Ethics level of the business

4. The Board of Directors must be free to drive their companies forward, but
must exercise their freedom within the framework of corporate
governance and effective accountability. true or false?

True
False

5. Which of the following are least likely to be fundamentals on which the

corporate governance is based upon?

Shareholders have relationship with all other stakeholders

Way to garner maximum profits for shareholders at any cost and consequence
Shareholders money is at stake
Way the companies are controlled and directed

6. Which of the following term is least likely to finds its place in the
Boardroom discussion on corporate governance among the Directors?

Ethics
Code of conduct
Profits at any cost
Morals and values

7. Which of the following is not part of internal stakeholders of any

organization from corporate governance perspective?

Board of Directors
Trade creditors
Executive Management
Employees

8. Which of the following is most likely to be an obligation which organization

should recognize that they have for non-shareholder stakeholders?

Legal
Contractual
Social and market driven
All of the above

9. Gagan, CFO of GTY Limited is of the view that disclosure of material matters
concerning the organization should be timely and balanced to
ensure that all investors have access to clear and facual information. true or
false?

True
False

10. Which of the following is not the category of disclosure items under the
corporate governance framework?

Auditing
Board and Management Structure and Process
Functional and Departmental Structure
Financial Transparency and information disclosure

11. Which of the following is not a requirement for Corporate Governance in India
as per the SEBI Guidelines?

Compulsory whistle blower policy

Stock option given to all independent directors
Enhanced disclosure of remuneration policies
Systems to evaluate performance of all directors

12. Which of the following activities are least likely to form part of the
Corporate Social responsibility initiative?

Organization’s financial interests are always above the social objectives

Conducting responsible business
Encourage positive impact through its activities on the society
Going beyond the general economic expectation

13. ABC Limited is in the business of paper manufacturing and sources wood as an
important raw material. Which of the following measures
will demonstrate commitment to CSR by the company?

Setting up educational institutions for employee’s children

Promoting forestation and planting of saplings on a large scale
Trying out with alternate woods and trees
All of the above

14. Jatin, Head of HR at GTY Limited is of the view that all organization should
contribute to society even if it means giving away
the organisation’s core business and existence. true or false?

True
False

15. Corporate governance is least likely to be________________

A system of law
Approach by which companies are liquidated
Mitigation of risks to business
Creation of responsibility and accountability with respect to stakeholders