Sr.

Question A
No
1 stability strategy is a ____________ strategy business level
2 What are the means by which long term objectives will be STRENGTH
achieved?
3 Marketing strategy is a ___________ type of strategy business level
4 Which strategy is about how to compete successfully in particular Business-level strategy
markets?
5 A group of managers is considering pricing strategy and Corporate level
differentiation. At which level of strategy are the managers most
likely to be working?
6 An organisation's general expression of its overall purpose is objective
known as its:
7 Strategy involves: senior managers and
board members
8 The purpose of a SWOT analysis is to analyse: the strategic capability of
an organisation.

9 Which of the following answers the question: 'Where does the Mission statement
organisation aspire to be in the future?'
10 What is the key benefit of identifying the organisation's SBUs? It helps the development
of business-level
strategies.
11 The fundamental purpose for the existence of any organization is policies
described by its
12 The acronym SWOT stands for Special Weapons for
Operations Timeliness

13 Which of the following is an issue considered in developing What business(es) are we

corporate strategies? in?

14 The primary focus of strategic management is: strategic analysis

15 Which of the following defines what business or businesses the Business strategy
firm is in or should be in?
16 Which of the following defines how each individual business unit Business strategy
will attempt to achieve its mission?
17 Which of the following focuses on supporting the corporate and Competitive strategy
business strategies?
18 The task of strategy choice involves: developing plans and
activities which will
improve the
organisation’s
performance and
competitive position
19 The corporate level is where top management directs: all employees for
orientation
20 The three organizational levels are: corporate level, business
level, functional level

21 What is meant by the term ‘Stakeholder’? A person who is not

related with a business.
22 The strategic management process is a set of activities that will
assure a temporary
advantage and average
returns for the firm.

23 The goal of the organization’s__________ is to capture the hearts vision

and minds of employees, challenge them, and evoke their
emotions and dreams.
24 A firm’s mission is a statement of a firm’s
business in which it
intends to compete and
the customers which it
intends to serve.

25  Internal analysis enables a firm to determine what the firm can do.
26 An external analysis enables a firm to determine what the firm can do.
27 What can be defined as the art and science of formulating, Strategy formulation
implementing and evaluating cross-functional decisions that
enable an organization to achieve its objectives?
28 Which of the following is an element of a firm’s remote external Competition
environment?
29 Long-term objectives should be all of the following except: measurable.
30 What are guides to decision making? laws
31 A strategy is a company’s Value statement

32 Strategic management is A pure science.

33 Strategic management process activate in the sequence of_______ Environmental scanning,

Strategy formulation,
Implementation, control
and evaluation
34 Organizing means an identifiable group of people contributing Environmental scanning
their efforts towards the attainment of same goal. It is important at
the time of:
35 The strategic management process is the way in which strategists Make recording
determine objectives and
36 Low cost, Differentiation and Focus are examples of Corporate strategies
37 What is the starting point of strategic intent? Objectives
38 __________ strategy is designed to fortify an organization's basic Integrative
distinctive competence.
39 Many, if not most, organizations pursue a: concentric diversification.

40 ______________ is selling a division of an organization. Franchising

41 Exclusive access to high grade natural resources is an example of Strength
which of the following?
42 Selling all of a company’s assets in parts for their tangible worth Joint venture
is known as:
43 Smoothies Tire & Rubber Co. is selling its North American tire Related
business to Avinza International, is an example of which type of
strategy?
44 In strategy evaluation, computers need to be viewed as unreliable; essential
_________ rather than as _________.
45 Which of these is the cornerstone of effective strategy evaluation? Adequate and timely
feedback
46 The purpose of strategy evaluation is to increase the budget
annually.

47 Strategy formulation is managing forces during

the action.
48 Which of these is true about strategy implementation? It is positioning forces
before the action.
49 On what does strategy implementation focus? Effectiveness

50 Strategy implementation is primarily a(n) __________ process. intellectual

51 Industry/sector benchmarking compares: Organisational
performance between
firms/public sector
organisations in different
industries or sectors

52 Growth, retrenchment and stability are examples of            Corporate level Strategy
53 Strategy formulation answers the question: How do we execute a
chosen strategy
54 Diversification is to a new business area that has no obvious Forward integration
connection with any of the company’s existing areas refer to
55 Marketing current products with possible modifications and range Retrenchment
increases is also known as what?
56 Retrenchment is: When a company
experiences declining
profits and makes
cutbacks to improve
efficiency
57 When does horizontal integration occur? When a firm acquires or
merges with a major
competitor
58 Divestment is what kind of strategy? An asset-reduction
strategy
59 In which of the following scenarios is a joint venture likely to be Horizontal integration
more attractive than acquisition?
60 McDonalds is deciding whether to expand into manufacturing Business
kitchen equipment in China. At what level is this decision likely
to be made?
61 ___________ are short-term milestones or benchmarks that Vision
organizations must achieve in order for longer term objectives are
to be reached
62 Which of the following is not a recognized element of corporate Competitive advantage
strategy?
63 __________ refers to the purposes an organization strives to Strategic Intent
achieve
64 __________ strategy may require a firm to redefine its business Expansion Strategy
and may involve divestment of a major product line or an SBU,
abandon some markets or reduce its functions
65 __________ strategy is often considered as entrepreneurial Expansion Strategy
strategy where firm develops and introduce new products and
markets or penetrate markets to build share
66 Which of the following statements best describes the concept of Managers understanding
strategic awareness? of the organizations
history, competencies, and
current strategy
67 Which type of strategies are of particular importance to global Corporate
companies?
68 Two reasons for mergers and acquisitions are to increase managerial
staff and to minimize
economies of scale
69 Mergers and Acquisitions is an integral portion of what level of Corporate level  
strategy     
70 The strategy of TATA Motors and TCS would be classified Business Strategy  
as:            
71 Growth, retrenchment and stability are examples of            Corporate level Strategy   

72 Opportunities and threats are posed by the            Internal resources

73 The word tactic is most likely to be associated with              Functional; Level 

74 Adding new, unrelated products or services for present customers Horizontal

is a phenomenon known as:   Diversification 
75 In which stage of product life cycle, the company takes decision Introduction
whether to maintain, harvest or drop the product?
76 Which one of the following is not a basic element in the Strategic  Functional strategy
Management?
77 Strategic decision making can take place at various levels of an Operational, board, and
organisation, what are the three most common? industrially

78 PESTLE is an acronym for what? Political, environmental,

technological, legal, and
environmental

79 Which is a short-term strategy for a firm? Corporate strategy

80 Which of the following best describes the strategy of pricing a Skimming
product low in order to gain early market share
81 Which of the following is a key external factors that should be economic conditions
taken into account by a corporate strategy?
82 Which one of the following would not be considered a functional Financial
strategy?
83 Which of the following is not part of the micro environment? Technology
84 Which of the following is not a part the Macro Environment? Laws & Policies
85 A question for business level strategy would be Which industries do we
want to be in?

86 Which of the following is not a way in which organizations can By avoiding

behave more ethically and socially responsibly? discrimination and
improving working
conditions

87 Why is strategic management important? It has little impact on

organizational
performance
88 ______ and ______ are outcomes from a study of the external Threats and Weaknesses
environment
89 _______ are the organizations major value creating skills, Strengths
capabilities and resources that determine the organizations
competitive weapons
90 The merging of analysis of internal and external factors complete studies
influencing the organizations strategy is known as
91 _________ strategy determines what businesses an organization Business
should be in
92 How often should strategic-management activities be performed? Annually

93 Strategy-implementation activities include conducting research

94 Best in Class Benchmarking seeks to assess organisational The nearest geographical

performance against: competitor
95 The basic activities of strategic management include: offense, defense, and
control

96 Turnaround strategies involve changes at what level of strategy? Corporate

97 The word strategy originated from ___________ stratagos'
98 Which of the following is not a key theme in market Identifying new uses for
development? existing products and
services
99 Sound strategic choices will always address four issues. Which of Availablility of resources
the following is one of those reasons?
100 Which of the following is not en element of the growth/market Market development
options matrix developed by Ansoff (1987)?
101 Analyze internal
The first step in strategy development process is:
environmental factors
102 KPI stands for: Key player indication
103 CSF stands for: Critical success factor
104 Bargaining power of suppliers and customers is studied in: SWOT
105 The study which involves advantages and disadvantages of a
SWOT
business with respect to others:
106 As a manager you are asked to analyze the firm on the
environmental, political and technological basis which of the SWOT
following tools will employ:
107 Best tool to analyze the competitiveness of company: Ansoff Matrix
108 Typically, profits are highest in which stage of the industry life-
Introduction
cycle?
109
In terms of the PESTLE analysis, the liberalizing of international
Political
trade and tariff regimes could go in which section or sections?

110
a) Executive
remuneration, disclosure
of information, auditing
Corporate governance is concerned with : and accounting
procedures, and
organizations'
management structures
111 Diversification into many unrelated areas is an example of : a) Risk management
112 A strategic decision can be distinguished from other types of
Commitment
decisions by three factors, these are magnitude, time-scale and :
113 In the case where an organization acquires its supplier, this is an
Horizontal integration
example of:
114
An individual or group
In the context of strategic management, stakeholders can be
with a financial stake in
defined as:
the organization
115 It provides some property
Which of the following statements is not true when describing a
that is unique or
successful strategy?
distinctive
116 Read the mission
To find out what an organization's strategy is, you should:
statement
117 The marketing strategy emphasizes price as the key to good value;
operations runs with tight cost control; development focuses on
Cost focus
cost reduction. Which of Porter's competitive strategies is
illustrated here?
118 In strategic thinking, how long is the long term, approximately? A week to a month
119 What are the means via which long term objectives can be
Planning
achieved
120 It provides some property
Which of the following statements is not true when describing a
that is unique or
successful strategy?
distinctive
121 The goal of strategic management is to achieve competitive
advantage.
122 What can be defined as the art and science of formulating, Strategy formulation
implementing and evaluating cross-functional decisions that
enable an organization to achieve its objectives?
123 The strategic-management process represents a(n) ________, logical; systematic;
________, and ________ approach for determining an enterprise's subjective
future direction.
124 The strategic-management process occurs once a year.

125 Sometimes ________ is used to refer to strategic formulation, strategic planning;

implementation and evaluation, with ________ referring only to strategic management
strategic formulation.
126 During what stage of strategic management are a firm's specific Formulation
internal strengths and weaknesses determined?
127 An important activity in ________ is taking corrective action. strategy evaluation
128 What step in the strategic management process involves Strategy formulation
mobilizing employees and managers to put strategies into action?

129 What types of skills are especially critical for successful strategy Interpersonal
implementation?
130 With which phase of strategic management is most strongly Strategy formulation
associated with "action"?
131 ________ is NOT a strategy-implementation activity. Taking corrective actions

132 Strategy evaluation is necessary because internal and external

factors are constantly
changing.
133 In which phase of strategic management are annual objectives are Reduction
especially important?
134 In which phase of strategic management are long-term objectives Formulation
especially important?
135 What are enduring statements of purpose that distinguish one Policies
business from other similar firms?
136 An organization's vision statement is a constant reminder to
its employees of why the
organization exists.
137 Generally, external opportunities and threats are uncontrollable by a single
organization.
138 Specific results an organization seeks to achieve in pursuing its strategies.
basic mission are
139 Internal ________ are controllable activities in an organization opportunities
that are performed especially well.
140 What are the means by which long-term objectives will be Strategies
achieved?
141 Long-term objectives should be all of the following EXCEPT measurable.
142 What are guides to decision making that address repetitive or Strategies
recurring situations called?
143 A cooperative strategy a. is an integrated and
coordinated set of
commitments and actions
designed to exploit core
competencies and gain a
competitive advantage.

144 A strategy in which firms work together to achieve a shared a. functional-level

objective is a strategy.
145 The use of strategic alliances a. is unlikely to yield
success if partnering firms
are headquartered in the
same country.
146 Which type of strategic alliance is best at passing tacit knowledge a. primary cooperative
between firms? strategic alliances
147 A competitive advantage that is developed through a cooperative a. economic
strategy is called a collaborative or a(n) _________ advantage.

148 ______means giving numerical standards to a key process or Internal Benchmarking

product.
149 ___is the last step in the strategic management process. Strategy formulation

150 ___enables companies to compare key metrics to other business in Standards

the industry.
B C D Answer

corporate level   functional level strategic level B

Policies Strategies Opportunities C

Growth strategy corporate strategy functional strategy D

Corporate-level strategy Alliance-based strategy Operational-level strategy A

Operational level Business level Mission and vision C

vision goal mission D

managers at all levels senior and middle senior management B

external and internal
environments.
managers
the business environment
and the strategic capability
of an organisation relative
to its competitors.
the business environment C
in which an organisation
operates

Core values Vision statement Objectives C

It makes financial control It prevents a focus solely It decreases the A

easier. on market-based criteria. complexity of the
organisation's structures
mission procedures strategy B

Services, Worldwide Strengths Worldwide Strengths, Weaknesses, D

Optimization, and Transport Overcome Threats Opportunities, and
Threats
What direction are we going? What resources do we have What businesses are we C
to implement our in and what to do with
strategies? those businesses?
the total organisation strategy formulation strategy implementation B
Corporate strategy Functional strategy National strategy B

Corporate strategy Functional strategy National strategy A

Corporate strategy Operational strategy National strategy C

determining how the monitoring whether the keeping the organisation A

organisation can be more organisation is achieving free of debt
market and efficiency oriented good financial performance
its efforts to stabilize
recruitment needs
corporate level, business unit
level, functional level
A person who is related with a A person who owns a
business.
a decision-making activity
concerned with a firm’s
internal resources,
capabilities, and
competencies, independent of above-average returns for
the conditions in its external investors through effective
environment.
mission
is an internally-focused
affirmation of the
organization’s financial,
social, and ethical goals.
should do.
should do.
Strategy evaluation
Political agencies
continually changing.
rules
Pricing policy
Based mainly on intuition.
Strategy formulation,
Environmental scanning,
Implementation, control and
evaluation
Strategy formulation
Make coordinating
Operational strategies
overall strategy for the overall sales projections C
entire organization
corporate strategy level, corporate strategy level, A
business unit level, business level, specialist
functional level level
A person who purchases B
business. the shares of a business.
a process directed by top- the full set of D
management with input commitments, decisions,
from other stakeholders and actions required for
that seeks to achieve the firm to achieve above-
average returns and
strategic
use of the organization’s competitiveness..
resources.
culture strategy A
is mainly intended to is developed by a firm A
emotionally inspire before the firm develops
employees and other its vision.
stakeholders.
will do. might do. A
will do. might do. D
Strategy implementation Strategic management D
Suppliers Trade union B
reasonable. challenging. B
policies procedures C
Game Plan to outsmart Long-term objective C
competitor
Needed mainly when Based on the use of D
organizational performance quantitative and
falls qualitative information.
Environmental scanning, Strategy formulation, A
Strategy Implementation, Implementation, control,
formulation, control and evaluation,
evaluation Environmental scanning
Strategy Implementation Strategy evaluation C
Make strategic decisions Make planning C
Business strategies Functional strategies    B
Goals Mission Vision D
Retrenchment Intensive Diversification B

combination strategy. geographic strategy. product development C

strategy.
Divestiture Liquidation Horizontal integration B
Weakness Opportunity Threat C

Divestiture Liquidation Integration C

Retrenchment Divestiture Liquidation C

essential; unreliable tools; actual decision- decision-making devices; C

making devices tools
Quality and quantity of Smaller ratio of top- to Evaluation preceding A
managers lower-level management implementation stage
alert management to problems make budget changes. evaluate employees’ B
or potential problems. performance.

focuses on effectiveness. is primarily an operational requires coordination B

process. among many people.
It focuses on effectiveness. It is primarily an It is primarily an D
operational process intellectual process.
Intellectual skills Efficiency Coordination among a C
few people
operational analytical intuitive B
Organisational performance Organisational Organisational B
between firms/public sector performance between performance between
organisations in the same firms/public sector different divisions of the
industry or sector organisations in different firm
countries

SBU Strategy     Integration Strategy      Business Level Strategy A

What should be our strategy Where does strategy fit in? How is strategy applied B
to me?
Backward integration Concentric diversification Conglomerate C
diversification 
Market penetration Product development Market development D

When a company adopts a
new strategic position for a
product or service
The sale of the complete Delay to take place when A
business, either as a single an organization lacks a
going concern or piecemeal key success factor for a
to different buyers or particular market
sometimes by auctioning
the assets
When a firm acquires or
merges with a an unrelated
business
A weakness-reduction
strategy
Vertical integration
When a firm acquires or When a firm acquires or A
merges with a distributor merges with a supplier
firm
A product-reduction A cost-reduction strategy A
strategy
New market entry Larger resource pool A

Corporate Functional International B

Mission Plans Goals D

Closure Acquisition Divestment A

Strategic Formulation Strategic Implementation Strategic Control A

Retrenchment Strategy Combination Strategy Stability Strategy B

Retrenchment Strategy Combination Strategy Stability Strategy A

Managers understanding of Managers understanding of Managers understanding D

current strategy and its the strategic options the organizations
effectiveness available to the strategy, its effectiveness
organization
Functional Competitive Corporate and D
competitive
to reduce tax obligations and to create seasonal trends in to provide improved D
increase managerial staff sales and to make better capacity utilization and to
use of a new sales force gain new technology
Operational Level  Business Level Functional Level A

Corporate Strategy   Operational Strategy   Process Level A

SBU Strategy Integration Strategy  Business Level Strategy A

External environment Firm level competencies Government policies B

only 
Business Level   Unstructured planning  Operational Level D
Strategy 
Concentric Diversification  Product Development   Conglomerate B
Diversification 
Growth Maturity Decline D
Strategy formulation Strategy implementation Environmental scanning A

Governmental, locally, and Corporate, Business, and Board of Directors, Chief C

individually
Political, environmental,
shareholding, technological,
logistical, and e-marketing
Functional Executive, and Junior
Management
Political, environmental, Political, environmental, C
social, technological, societal, technological,
legal, and environmental learning, and e-marketing

Business strategy Company mission Functional strategy D

Customer related pricing Penetration Pricing Cost focus Pricing C

political conditions legal environments competition D

Marketing Product-market Operations C

Shareholders Competitors Public A

Demographics Suppliers Social Values C
How should the businesses be How should the business How should resources be C
related? compete in its market? shared amongst the
businesses?
By lowering prices to their By ensuring product safety By avoiding pollution and B
targeted market, to stimulate safely disposing of waste
demand and increasing profit
by increases in productivity to
meet customer demands

It is involved in many of the Most organizations do not Organizations are B

decisions that managers make change composed of similar
divisions and functions
Strengths and Weaknesses Weights and Measures Opportunities and Threats D

Opportunities Core competencies Weaknesses C

organizational behavior and definitional analysis SWOT analysis D

theory
Organizational Operational Corporate D

Quarterly Monthly Continuously D

measuring performance preparing a TOWS matrix establishing annual D

objectives
The competitor who is 'best in The competitor who is the The nearest principal B
class' wherever that may be best in the industry competitor
situation analysis, strategy development, control, and ethics, management, and B
formulation, implementation, management practice
and evaluation
Functional Competitive Business C
stratum statistics straight A
Strategic positioning Developing new products Identifying new markets C
for new markets and and segments
segments
Strategic thinking Strategic fit Financial returns D

Diversification Product development Market segmentation D

Analyze external B
Determines strengths Determine weakness
environmental factors
Key performances indicator Key player indicator None of these B
Centralized subsidiary factor Crucial subsidiary fraction None of these A
JIT Kanban Porter D
A
6 Sigma Kanban JIT
B
PESTEL 6 Sigma 3 Sigma

JIT Kanban system Porter’s five forces D

C
Growth Maturity Decline
C
Political and economic and Political and
Legal
legal environmental

b) Elections to the board of c) Relationships with d) Corporate-level

directors national governments strategy

b) Good management c) Uncertainty reduction d) Sustainability A

A
Riskiness Impact Longevity

Backwards vertical Downstream vertical C

Forwards vertical integration
integration integration
Internal groups or An individual or group D
An external individual or
individuals that are able to with an interest in the
group that is able to impose
influence strategic organization’s activities
constraints on the
direction of the and who seeks to
organization
organization influence them
It provides the means for D
It addresses changes in the It guarantees long term
renewing competitive
external environment survival
advantage
Look at what the organization B
Read the strategic plan Ask the CEO
does
D
Differentiation Differentiation focus Cost leadership

1 to 12 months 1 to 5 years More than 5 years D

B
Strategy Strength Weaknesses

It provides the means for D

renewing competitive
advantage
maintain competitive
advantage.
Strategy evaluation
It addresses changes in the It guarantees long term
external environment survival
achieve and maintain eliminate competitive C
competitive advantage. advantage.
Strategy implementation Strategic management D

intuitive; disorganized; logical; systematic; intuitive; disorganized; C

subjective objective objective

is a semiannual process. is a continuous process. applies mostly to C

companies with sales
greater than $100 million.

strategic planning; strategic strategic management; strategic management; C

processing strategic planning strategic processing

Implementation Evaluation Feedback A

strategy implementation strategy formulation strategy leadership A

Strategy evaluation Strategy implementation Strategic advantage C

Marketing Technical Conceptual A

Strategy implementation Strategy evaluation Competing advantages B

Establishing annual objectives Devising policies Allocating resources A

the SEC requires strategy success today is a the IRS requires strategy A
evaluation. guarantee of success evaluation.
tomorrow.
Formulation Implementation Evaluation C
Control Evaluation Implementation A

Mission statements Objectives Rules B

broadly charts the future addresses the basic answers the question: D
direction of an organization. question: "What is our "What do we want to
business?" become?"
unable to have a significant not worth monitoring and key functions in strategy A
impact on an organization. evaluating. implementation.
rules. objectives. policies. C

incompetencies strengths objectives C

Strengths Weaknesses Policies A

continually changing. reasonable. challenging. B

Rules Policies Objectives C

b. is a strategy in which firms c. is an integrated and d. specifies actions a firm B

work together to achieve a
shared objective.
coordinated set of takes to gain a
commitments and actions competitive advantage by
the firm uses to gain a selecting and managing a
competitive advantage by group of different
exploiting core businesses competing in
competencies in specific different product markets.
product markets.

b. business-level strategy. c. corporate-level strategy. d. cooperative strategy. D

b. may be too restrictive to c. usually increases the d. is more frequent than D

facilitate entry into new investment necessary to other types of cooperative
markets. introduce new products. strategies.

b. joint ventures c. equity strategic alliances d. nonequity strategic B

alliances
b. collusive c. alliance d. relational D

External Benchmarking Process Benchmarking Performance D

Benchmarking
Strategic implementation Environmental scanning Strategic Evaluation and D
control
Benchmarking Gap analysis Comparision B