Examveda MCQ 1,2,3 Section

Section-1
1.Strategy is developed by the visionary chief executive in

___________ mode of strategic management51.
Functional level strategy directly supports
A. corporate strategy
B. business strategy
C. differentiation strategy
D. focus strategy
Answer & Solution Discuss in Board Save for Later
Answer & Solution
Answer: Option B
Solution:
Functional level strategy directly supports business strategy. A business strategy is a set of competitive
moves and actions that a business uses to attract customers, compete successfully, strengthening
performance, and achieve organisational goals. It outlines how business should be carried out to reach
the desired ends.
52.
What is the most appropriate method of categorizing
stakeholders?
A. Relative power only

B. Relative level of interest only
C. Relative power and interest
D. Relative power, interest, and amount of stock held
Answer & Solution
Answer: Option C
Solution:
Relative power and interest is the most appropriate method of categorizing stakeholders.
53.
International business transactions include
A. all commercial transactions between two or more countries
B. private, but not governmental, commercial transactions between two or more countries
C. governmental, but not private, commercial transactions between two or more countries
D. only commercial transactions between two or more countries that are entered for the
purpose of making a profit
Answer & Solution
Answer: Option A
Solution:
International business transactions include all commercial transactions between two or more countries.
International Business Transactions is a survey course designed to introduce students to cross-border
business transactions between private business firms. It considers a wide range of different transactions
taking place across borders.
54.
What is monopoly power?
A. When an organization has absolute power in its chosen marketplace
B. When an organization has power over its immediate rivals in its chosen marketplace
C. When an organization has limited power in its chosen marketplace
D. When an organization buys out another organization and assumes power of its share of the
marketplace
Answer & Solution
Answer: Option A
Solution:
When an organization has absolute power in its chosen marketplace is monopoly power. Monopoly
power (also called market power) refers to a firm's ability to charge a price higher than its marginal cost.
Monopoly power typically exists where the there is low elasticity of demand and significant barriers to
entry.
55.
Which of the following statements best describes scenario
planning?
A. Exploring future possibilities by looking at potential outcomes from particular causes and
seeking to explain why things might occur
B. Considering three likely scenarios for future developments, and devising a strategy
according to the likeliest outcome
C. Helping managers come to terms with the threats and opportunities within the company by
devising a possible scenario to eliminate the threats and capitalize on the opportunities
D. Planning the best way to secure the scenario outcome that would benefit the company
most
Answer & Solution
Answer: Option A
Solution:
Exploring future possibilities by looking at potential outcomes from particular causes and seeking to
explain why things might occur best describes scenario planning. Scenario planning is making
assumptions on what the future is going to be and how your business environment will change overtime
inlight of that future. More precisely, Scenario planning is identifying a specific set of uncertainties,
different “realities” of what might happen in the future of your business.
A. planning mode
B. adaptive mode
C. strategic mode
D. entrepreneurial mode

Answer & Solution
Answer: Option D
2.Stability strategy is a ____________ strategy
A. corporate level
B. business level
C. functional level
D. strategic levelAnswer & Solution Discuss in Board Save for Later
Answer & Solution
Answer: Option A
3.What are the means by which long term objectives will be

achieved?
A. StrategiesB. PoliciesC. StrengthD. OpportunitieAnswer & Solution Discuss in

Board Save for LaterAnswer & Solution Answer: Option A
4.Marketing strategy is a ___________ type of strategy
A. business level
B. Growth strategy
C. corporate strategy
D. functional strategy
Answer & Solution
Answer: Option D
5.When an industry relies heavily on government contracts,
which forecasts can be the most important part of an external
audit
A. Economic
B. Competitive
C. Political
D. Multinational
Answer & Solution
Answer: Option C
6.A possible and desirable future state of an organization is

called:
A. Mission
B. Vision C. Strategy implementation D. Strategy formulation
Answer & Solution

Answer: Option B
7.What does Question mark symbolize in BCG matrix?
A. Remain Diversified
B. Invest
C. Stable
D. Liquidate
Answer & Solution
Answer: Option A
8.Selling all of a companys assets in parts for their tangible
worth is called:
A. Divestiture
B. Concentric Diversification
C. Liquidation
D. Unrelated integration
Answer & Solution
Answer: Option C
9.
What do Cash Cows symbolize in BCG matrix?
A. Remain Diversified
B. Invest
C. Stable
D. Liquidate
Answer & Solution
Answer: Option C
10.
The BCG matrix is based on
A. Industry attractiveness and Business strength
B. Industry Growth rate and Business strength
C. Industry Attractiveness and Relative Market share
D. Industry growth rate and relative market share
Answer & Solution
Answer: Option D
11.
What are the guides to decision making?
A. Rules
B. Procedures
C. Goals
D. Policies
Answer & Solution
Answer: Option D
12.
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
Answer & Solution
Answer: Option D
13.
Buying another company by one company means:
A. Joint venture
B. Acquisition
C. Amalgamation
D. Merger
Answer & Solution
Answer: Option B
14.
Low cost, Differentiation and Focus are examples of
A. Corporate strategies
B. Operational strategies
C. Business strategies
D. Functional strategies
Answer & Solution
Answer: Option C
15.
Which environment can create new market and new business
segments?
A. Political environment
B. Economic environment
C. Socio cultural environment
D. Technological environment
Answer & Solution
Answer: Option D
16.
The word tactics is most likely to be associated with
A. Business strategy
B. Corporate strategy
C. Operational strategy
D. All of the abvoe
Answer & Solution
Answer: Option C
17.
Buyers market exist when:
A. few suppliers in the market
B. buyers purchases in small volume
C. buyers purchases in large volume
D. product of suppliers are unique and differentiated
Answer & Solution
Answer: Option C
18.
How many cells are in a SWOT matrix?
A. 9
B. 6
C. 3
D. 2
Answer & Solution
Answer: Option A
19.
The Reasons for diversification is:
A. to reduce competition
B. to increase organizational capabilities
C. to get tax advantage
D. to get quick entry into a business
Answer & Solution
Answer: Option B
20.
Strategic Management handles:
A. external issues
B. management issues
C. internal issues
D. administrational issues
Answer & Solution
Answer: Option A
21.
What is the starting point of strategic intent?
A. Objectives
B. Goals
C. Mission
D. Vision
Answer & Solution
Answer: Option D
22.
Corporate level strategy deals with:
A. objectives of specific functions
B. objective of Single strategic Business Unit
C. objectives of the corporate
D. objectives of specific operations
Answer & Solution
Answer: Option C
23.
From the following activity which does not comes under the
primary activities of value Chain analysis:
A. Operations
B. Technology development
C. Marketing and sales
D. Services
Answer & Solution
Answer: Option B
24.
Which of the following can be identified as a best statement
that represents a firms big picture statements, describing a
desired end state, general in scope and not restrictive?
A. Corporate philosophy statement
B. Company creed
C. Vision statement
D. Mission statement
Answer & Solution
Answer: Option C
25.
One of the top level manager of a large manufacturing plant
uses to spend her day trying to ensure that the material
waste is not more than 10% , she spends her day performing
the management process of:
A. Planning
B. Organizing
C. Leading
D. Controlling
Answer & Solution
Answer: Option D
26.
All of the following are key opportunities and threats in
external environment because of political, government and
legal forces except:
A. Tax rate
B. Social security program
C. Cross boarder relationship
D. Patent law

Answer & Solution
Answer: Option B
27.
Internal audit is done:
A. Before external audit
B. After external audit
C. Parallel to external audit
D. Vertical to external audit
Answer & Solution
Answer: Option C
28.
Bargaining power of customers is high if:
A. Differentiation of competitors product is low
B. Switching costs are low for substitute products
C. The buyer has little information about the market
D. The buyer requires a high quality product for own production

Answer & Solution
Answer: Option A
Solution:
29.
The magnitude and changes that may affect an organization
is survival owing to all of the following except:
A. Merger-mania
B. Demographics
C. E-commerce
D. Dubious firms
Answer & Solution
Answer: Option D
30.
Which of the following requires a firm to establish annual
objectives, devise, policies, motivates employees and
allocate resources for the execution of strategies?
A. Strategy formulation
B. Strategy evaluation
C. Strategy implementation
D. Strategy estimation
Answer & Solution
Answer: Option C
31.
Which type of trend can be exemplified by the increasing
numbers of two income households in a society?
A. Solid
B. Economic
C. Cultural
D. Technological
Answer & Solution
Answer: Option B
32.
The primary benefit brought from restructuring is:
A. employee involvement
B. cost reduction
C. increased morale
D. increased number and organizational hierarchy
Answer & Solution
Answer: Option B
33.
Technological advancements can create which of the
following advantage besides many other existing powerful
advantages for the businesses?
A. Economic
B. Social
C. Environmental
D. Competitive
Answer & Solution
Answer: Option D
34.
Which strategies aim at improving internal weakness by
taking advantage of external opportunities?
A. SO
B. WO
C. SW
D. ST
Answer & Solution
Answer: Option B
35.
the sketch of the BCG matrix, what is the label of the
horizontal axis?
A. Industry growth rate
B. Market share
C. Market growth rate
D. Business strength
Answer & Solution
Answer: Option B
36.
the sketch of the BCG matrix, what is the label of the vertical
axis?
A. Market growth rate
B. Business strength
C. Market share
D. Industry growth rate
Answer & Solution
Answer: Option D
37.
What is the purpose of an activity map?
A. A system to facilitate better time-planning
B. It is used in business process reengineering to show how the different activities of an

organisation are linked together
C. It is used to identify and understand strategic capability by mapping how the different
activities of an organisation are linked together
D. A list of activities undertaken by an organisation
Answer & Solution
Answer: Option C
38.
Industry/sector benchmarking compares:
A. Organisational performance between firms/public sector organisations in different
industries or sectors
B. Organisational performance between firms/public sector organisations in the same

industry or sector
C. Organisational performance between firms/public sector organisations in different

countries
D. Organisational performance between different divisions of the firm
Answer & Solution
Answer: Option B
39.
Which of the following statements is not true reg corporate
strategies?
A. They are concerned with the broad and more long-term issues of the organization
B. They are concerned with how the organization is going to compete in a specific business
or industry
C. are concerned with the direction the organization is headed
D. They are concerned with the business(es) that the organization is in and the businesses
they want to be in

Answer & Solution
Answer: Option B
40.
Abdullah group of industries is involved in the sale of its
marginal business. It is most likely to say that Abdullah
group is implementing which one of the following strategies?
A. Retrenchment
B. Liquidation
C. Acquisition
D. Join venture
Answer & Solution
Answer: Option A
41.
Which would be classified as a stakeholder?
A. Communities
B. Banks
C. Suppliers
D. Communities Banks Suppliers

Answer & Solution
Answer: Option D
42.
an organisation increases its sales through greater marketing
efforts, and expands its workforce and production capacity to
cope with the increase in demand for its product, it is
following a growth strategy in which growth is achieved
through:
A. Unrelated diversification
B. Acquisition
C. Merger
D. Direct expansion
Answer & Solution
Answer: Option D
43.
According to the BCG matrixSBU comprising products in an
attractive industry but representing little market share would
be referred to as:
A. A cash cow
B. A star
C. A dog
D. A question mark
Answer & Solution
Answer: Option D
44.
A company offers unique products that are widely valued by
customers, it is likely to follow a:
A. Differentiation strategy
B. Combination strategy
C. Focus strategy
D. Cost-leadership strategy
Answer & Solution
Answer: Option A
45.
the following are considered grand strategies, except for:
A. A retrenchment strategy
B. Strategic business units

C. A growth strategy
D. Related diversification
Answer & Solution
Answer: Option B
46.
Analysing the ext environment and the organisations
resources are part of the:
A. Functional level planning process
B. Determining the mission of the business
C. Financial planning process
D. Strategic planning process
Answer & Solution
Answer: Option D
47.
Which of the following is not one of Porters five competitive
forces?
A. Bargaining power of suppliers

B. Threats of new entrants and barriers to entry
C. Threats of technological advances
D. Threats of substitutes
Answer & Solution
Answer: Option C
48.
Strategic business units
A. Are found in one-business organisations
B. Carry out strategies assigned by the CEO
C. Develop their own unique way of competing
D. Implement the marketing function's strategic planning and management decisions
Answer & Solution
Answer: Option C
49.
Marketing current products with possible modifications and
range increases is also known as what?
A. Retrenchment
B. Market penetration
C. Product development
D. Market development
Answer & Solution
Answer: Option D
50.
Retrenchment is:
A. When a company experiences declining profits and makes cutbacks to improve efficiency
B. When a company adopts a new strategic position for a product or service
C. The sale of the complete business, either as a single going concern or piecemeal to
different buyers or sometimes by auctioning the assets
D. ely to take place when an organization lacks a key success factor for a particular market
Answer & Solution
Answer: Option A
51.
When does horizontal integration occur?
A. When a firm acquires or merges with a major competitor

B. When a firm acquires or merges with a an unrelated business
C. When a firm acquires or merges with a distributor
D. When a firm acquires or merges with a supplier firm
Answer & Solution
Answer: Option A
52.
Divestment is what kind of strategy?
A. An asset-reduction strategy
B. A weakness-reduction strategy
C. A product-reduction strategy
D. A cost-reduction strategy
Answer & Solution
Answer: Option A
53.
Sustained survival implies
A. that a turnaround is achieved but there is little further growth

B. that a turnaround is achieved and there is potential for further growth
C. that a turnaround is achieved and there is a clear opportunity to employ a new growth
strategy
D. that a turnaround is achieved and it is appropriate to diversify soon
Answer & Solution
Answer: Option A
54.
In which of the following scenarios is a joint venture likely to
be more attractive than acquisition?
A. Horizontal integration
B. Vertical integration
C. New market entry
D. Larger resource pool
Answer & Solution
Answer: Option A
55.
McDonalds is deciding whether to expand into manufacturing
kitchen equipment in China. At what level is this decision
likely to be made?
A. Business
B. Corporate
C. Functional
D. International
Answer & Solution
Answer: Option B
56.
Corporate governance is concerned with:
A. Executive remuneration, disclosure of information, auditing and accounting procedures,

and organizations' management structures
B. Elections to the board of directors
C. Relationships with national governments
D. Corporate-level strategy
Answer & Solution
Answer: Option A
57.
The slowest way to grow a business is likely to be through:
A. A merger
B. outsourcing
C. Internal development
D. A strategic alliance
Answer & Solution
Answer: Option C
58.
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
Answer & Solution
Answer: Option B
59.
A joint venture can be defined as:
A. Two firms collaborate together on a specific project
B. One firm licenses its intellectual property to another firm
C. Two firms merge together
D. Two firms come together to form a third, legally separate firm
Answer & Solution
Answer: Option D
60.
___________ are short-term milestones or benchmarks that
organizations must achieve in order for longer term
objectives are to be reached
A. Vision
B. Mission
C. Plans
D. Goals
Answer & Solution
Answer: Option D
61.
Which of the following is not a recognized element of
corporate strategy?
A. Competitive advantage
B. Closure
C. Acquisition
D. Divestment
Answer & Solution
Answer: Option A
62.
__________ refers to the purposes an organization strives to
achieve
A. Strategic Intent
B. Strategic Formulation
C. Strategic Implementation
D. Strategic Control
Answer & Solution
Answer: Option A
63._____ strategy may require a firm to redefine its business
and may involve divestment of a major product line or an
SBU, abandon some markets or reduce its functions
A. Expansion Strategy
B. Retrenchment Strategy
C. Combination Strategy
D. Stability Strategy
Answer & Solution
Answer: Option B
.
64.
Which of the following statements is false? Formal strategic
planning
A. implies determined actions for achieving objectives
B. is a time consuming process
C. should develop clear and rigid plans for the organization to implement
D. is most applicable in stable environments
Answer & Solution

Answer: Option C
65.__________ strategy is often considered as
entrepreneurial strategy where firm develops and introduce
new products and markets or penetrate markets to build
share
A. Expansion Strategy
B. Retrenchment Strategy
C. Combination Strategy
D. Stability Strategy
Answer & Solution
Answer: Option A
66.
Which of the following statements best describes the
concept of strategic awareness?
A. Managers understanding of the organizations history, competencies, and current strategy
B. Managers understanding of current strategy and its effectiveness
C. Managers understanding of the strategic options available to the organization
D. Managers understanding the organizations strategy, its effectiveness

Answer & Solution
Answer: Option D
67.Which of the following is associated with successful
strategies?
A. Creating superior value to customers
B. Exploitation of key success factors
C. Creating and maintaining strategic fit
D. All of the above
Answer & Solution
Answer: Option D
68.
What is the recommended length of an effective mission
statement?
A. One page
B. Less than 200 words
C. One sentence of 10 to 20 words
D. There is no recommendation It can be as long as the management wants

Answer & Solution
Answer: Option D
69.
Which type of strategies are of particular importance to
global companies?
A. Corporate
B. Functional
C. Competitive
D. Corporate and competitive
Answer & Solution
Answer: Option D
.
70.Two reasons for mergers and acquisitions are
A. to increase managerial staff and to minimize economies of scale
B. to reduce tax obligations and increase managerial staff
C. to create seasonal trends in sales and to make better use of a new sales force
D. to provide improved capacity utilization and to gain new technology

Answer & Solution
Answer: Option D
******************** Section-2 *****************

*************************************************
1. .
The pie slices within the circles of a ________ reveal the
percent of corporate profits contributed by each division
A. QSPM
B. BCG matrix
C. SPACE matrix
D. Grand strategy matrix
Answer & Solution
Answer: Option B
2.
Which one of the following is of concern for not-for-profit
organizations?
A. The markets to service
B. Identifying suppliers to deal with

C. Developing capabilities
D. Building monopolies
Answer & Solution
Answer: Option A
Solution:
3.
Select the statement that best applies to emergent strategies.
Emergent strategy...
A. implies an ability to react to events
B. implies strategizing
C. implies no deviation from plans
D. implies constant evaluation of the bigger picture
Answer & Solution
Answer: Option A
4.
The impact of strategies on the general direction and basic
character of a company is
A. short range
B. medium range
C. long range
D. minimal
Answer & Solution
Answer: Option C
.
5.
Select the most accurate statement. Value
A. means value for money
B. is best described as the benefits the business chooses to give to customers through its
product/service
C. is the benefits of a product/service as perceived by the customer
D. does not offer competitive advantage
Answer & Solution
Answer: Option C
6.
The acronym SWOT stands for
A. Special Weapons for Operations Timeliness
B. Services, Worldwide Optimization and Transport
C. Strengths, Weakness, Opportunities and Threats
D. None of the above
Answer & Solution
Answer: Option C
7.
Which of the following statements best describes strategic
management?
A. A process consisting of determining objectives and strategic actions to achieve those

objectives
B. A process consisting of determining objectives, strategic actions to achieve those

objectives, the implementation of desired strategy, and the monitoring of that strategy
C. A process consisting of the determination of direction, strategic actions to achieve

objectives, the implementation of desired strategy, and monitoring of that strategy
D. A process for determining direction, strategic actions to achieve objectives, and the
implementation of desired strategy
Answer & Solution

Answer: Option C
8.
Which of the following is a key external factors that should
be taken into account by a corporate strategy?
A. economic conditions
B. political conditions
C. legal environments
D. competition
Answer & Solution
Answer: Option D
9.
Which one of the following would not be considered a
functional strategy?
A. Financial
B. Marketing
C. Product-market
D. Operations

Answer & Solution
Answer: Option C
10.
The two internal elements of SWOT analysis are
A. weaknesses and threats
B. opportunities and threats
C. strength and weaknesses
D. strengths and threats
Answer & Solution
Answer: Option C
11.
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

Answer & Solution
Answer: Option B
12.
Which of these is not a key stakeholder that an organization
must seek to satisfy?
A. Managers
B. Shareholders
C. Employees
D. Customers
Answer & Solution
Answer: Option A
.
13.
Who can be considered as the main stakeholders for London
Zoo?
A. Research groups
B. Visitors
C. The government
D. Private investors
Answer & Solution
Answer: Option B
14.
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
Answer & Solution
Answer: Option B
15.
What common, related problem do for non-profit
organizations such as the British Museum and the National
History Museum often face?
A. Costs associated with repairs and maintenance
B. The need to be educational and adhere to their scientific/research orientation whilst

addressing commercial issues (e g , admission charges to cover costs)
C. The need to be educational and adhere to their scientific/research orientation whilst
satisfying main stakeholders
D. The conflict between pursuing organizational objectives and resource availability

constraints
Answer & Solution
Answer: Option A
16.
A question for business level strategy would be
A. Which industries do we want to be in?
B. How should the businesses be related?
C. How should the business compete in its market?
D. How should resources be shared amongst the businesses?
Answer & Solution
Answer: Option C
17.
Which of the following is not a way in which organizations
can behave more ethically and socially responsibly?
A. By avoiding discrimination and improving working conditions

B. By lowering prices to their targeted market, to stimulate demand and increasing profit by
increases in productivity to meet customer demands
C. By ensuring product safety
D. By avoiding pollution and safely disposing of waste
Answer & Solution
Answer: Option B
18.
The term corporate strategy concerns strategy and strategic
decisions
A. In certain types of organization
B. At all levels in an organization
C. Developed by the senior management in an organization
D. In the private sector only
Answer & Solution
Answer: Option B
19.
Ansoff's growth vector matrix is used for
A. analyzing the different strategic directions an organization can pursue
B. analyzing the balance of the portfolio
C. assessing whether the corporate parent is adding value
D. assessing the market share of a business
Answer & Solution
Answer: Option A
20.
Which one of these would not be a problem for an
organization attempting to establish a unified vision or
direction?
A. The constraints applied by key stakeholders upon the organizations management
B. The personal objectives of those within the organization
C. The varying expectations of external stakeholders
D. Conflicts between the product and its desired target market
Answer & Solution
Answer: Option D
1.
In Ansoff's matrix, product development involves going in the
direction of
A. present products to present markets
B. present products to new markets
C. new products to present markets
D. new products to new markets
Answer & Solution
Answer: Option C
.
22.
Which of these questions is not addressed by an effective
business model?
A. What do customers value today?
B. Who are our customers?
C. What does the organization produce?
D. None of the above All are essential questions for effective business models
Answer & Solution

Answer: Option D
23.
Which of the following would you not expect to see in a
vision statement?
A. Descriptions of desirable future situations
B. Motivational terminology
C. Focus on the values to which the organization is committed
D. What the organization seeks to do to reach desirable future states
Answer & Solution
Answer: Option D
24.
What are the decisions and actions that determine long-run
performance of an organization?
A. strategies
B. missions
C. goals
D. opportunities

Answer & Solution
Answer: Option A
.
25.
Which of the following does Campbell (1989) suggest to be a
dimension of valuable mission statements?
A. Differentiates the business from competitors
B. States the objectives of the organization
C. Meaningful and relevant to stakeholders
D. States the values of the organization
Answer & Solution
Answer: Option D
26.
______ is the collection of managerial decisions and actions
that determine the long-run performance of an organization
A. planning
B. goal-oriented management
C. strategic management
D. leadership
Answer & Solution
Answer: Option C
27.
Which one of the following is not a form of non-price
competition?
A. Branding
B. Innovation
C. Advertising
D. None All of the above increase non-price competition
Answer & Solution
Answer: Option D
28.
Why is strategic management important?
A. It has little impact on organizational performance
B. It is involved in many of the decisions that managers make
C. Most organizations do not change

D. Organizations are composed of similar divisions and functions
Answer & Solution
Answer: Option B
.
29.
Which one of the following is not an aspect of the MOST
analysis
A. Mission
B. Strategies
C. Tactics
D. Organization
Answer & Solution
Answer: Option D
30.
______ and ______ are outcomes from a study of the external
environment
A. Threats and Weaknesses
B. Strengths and Weaknesses

C. Weights and Measures
D. Opportunities and Threats
Answer & Solution
Answer: Option D
31.
Which one of the following does not influence organizational
learning?
A. Awareness of wider environmental developments
B. Knowledge of competitor activity
C. Reflecting on past actions
D. Applying activity maps
Answer & Solution
Answer: Option D
32.
_______ are the organizations major value creating skills,
capabilities and resources that determine the organizations
competitive weapons
A. Strengths
B. Opportunities
C. Core competencies
D. Weaknesses
Answer & Solution
Answer: Option C
.
33.
Which one of the following is not a future pattern identified
by Courtney et al. (1997)
A. A limited and definable number of discrete alternatives which can be evaluated and
judged by strategic managers
B. A limited and definable number of alternatives which cannot be evaluated nor judged with
any great certainty
C. A limited but undefinable number of discrete alternatives which can be evaluated and
judged
D. A limited but undefinable number of discrete alternatives that cannot be evaluated nor
judged at all
Answer & Solution
Answer: Option A
An example of a core competency of a firm is
A. the corporate reputation
B. communicating with customers in their own languages worldwide
C. developing least squared exemptions within its accounting system
D. evaluating tangible and intangible assets
Answer & Solution
Answer: Option B
35.
The merging of analysis of internal and external factors
influencing the organizations strategy is known as
A. complete studies
B. organizational behavior and theory
C. definitional analysis
D. SWOT analysis
Answer & Solution
Answer: Option D
36.
Which of the following is not a purpose of strategic thinking?
A. To realize what needs to change
B. To establish the agenda for managing strategic change
C. To clarify future direction
D. To allocate scarce resources
Answer & Solution
Answer: Option A
37.
Middle level managers typically are responsible for
___________ strategies
A. business
B. organizational
C. operational
D. corporate
Answer & Solution
Answer: Option A
38.
Which of the following is not an element of strategic
thinking?
A. Judge what strategic changes to make
B. Realize what needs to change
C. Understanding current strategic positions
D. Manage organizational resources and competencies
Answer & Solution
Answer: Option D
39.
_________ strategy determines what businesses an
organization should be in
A. Business
B. Organizational
C. Operational
D. Corporate
Answer & Solution
Answer: Option D
40.
Which of the following is not a recognized area of
opportunity for developing synergy?
A. Functional
B. Processual
C. Strategic
D. Managerial
Answer & Solution
Answer: Option B
41.
Which of the following is one of the four key elements which
must be adhered to if synergy is to be achieved?
A. Efficiency
B. Competitive strategies
C. Customer satisfaction
D. Effective leadership

Answer & Solution
Answer: Option D
46.
A _______ strategy addresses organizational weaknesses,
helps stabilize operations and revitalizes organizational
resources and capabilities
A. unrelated diversification
B. horizontal integration
C. vertical integration
D. retrenchment
Answer & Solution
Answer: Option D
47.
Which one of the following are considered to be synergistic
benefits for LVMH?
A. Joint ventures
B. Similarity of portfolio
C. Commercial exploitation
D. Name association
Answer & Solution
Answer: Option D
48.
An organization is said to have _______ when it has several
different businesses that are independent and that formulate
their own strategies
A. operational units
B. strategic business units
C. competitive advantages
D. legal subunits
Answer & Solution
Answer: Option B
.
49.
Which of the following is a force in the Porter's five forces
model of industry attractiveness?
A. opportunity for new entrants
B. opportunity for substitutes
C. bargaining power of suppliers

D. sustainable competitive advantage for customers
Answer & Solution
Answer: Option C
50.
Which one of the following is not one of the elements of
strategic thinking described by Campbell and Alexander
(1997)?
A. Organizational culture
B. Outlining of competencies
C. Future-gazing
D. Organizational behavior
Answer & Solution
Answer: Option B
42.
An organization that is diversifying its product line is
exhibiting what type of growth strategy?
A. stability
B. retrenchment
C. growth
D. maintenance
Answer & Solution
Answer: Option C
43.
A stability strategy is particularly appropriate when
A. the firm is facing rapid growth opportunities
B. the industry is in a state of rapid upheaval
C. an organization is not meeting its goals
D. an organizations performance is declining
Answer & Solution
Answer: Option B
44.
What is synergy?
A. When the organization is providing a product to the customer that perfectly suits their
requirements
B. When the parts of an organization are combined and managed in such a way that the
drawbacks exceed those which would result if the parts were operating separately
C. When the parts of an organization are combined and managed in such a way that the
benefits exceed those which would result if the parts were operating separately
D. When the parts of an organization are combined and managed in such a way to reduce
costs
Answer & Solution
Answer: Option C
45.
What is Kelloggs main challenge for the future:
A. To create new products for a market that is both growing and declining according to
geography whilst generating enough cash to advertise and launch new products
B. To create new products for a market that is both growing and declining according to
geography
C. To create new products for a market that has the same tastes, whilst generating enough
cash to advertise and launch new products
D. To not become adversely affected by increased competition again and adapt to changing
customer tastes
Answer & Solution

Answer: Option A
51.
D. focus strategy
Answer & Solution
Answer & Solution
Answer: Option B
52.
stakeholders?
D. Relative power, interest, and amount of stock held

Answer & Solution
Answer: Option C
53.
Answer & Solution
Answer: Option A
54.

marketplace
Answer & Solution
Answer: Option A
55.
Which of the following statements best describes scenario
planning?
most
Answer & Solution
Answer: Option A
51.
D. focus strategy
Answer & Solution
Answer: Option B
Solution:
Functional level strategy directly supports business strategy. A business strategy is a set of competitive
moves and actions that a business uses to attract customers, compete successfully, strengthening
performance, and achieve organisational goals. It outlines how business should be carried out to reach
the desired ends.
52.
stakeholders?
D. Relative power, interest, and amount of stock held61.

International business has recently grown at such a rapid
pace because of
A. stricter government policies on cross-border movements
B. development of institutions to support and facilitate trade
C. decreasing global competition
D. companies increased concerns with terrorism
Answer & Solution
Answer: Option B
Solution:
International business has recently grown at such a rapid pace because of development of institutions to
support and facilitate trade. International business refers to the trade of goods, services, technology,
capital and/or knowledge across national borders and at a global or transnational level. It involves cross-
border transactions of goods and services between two or more countries.
62.
Which of the following factors does not increase the
bargaining power of a supplier?
A. Substitutability
B. Concentration of suppliers
C. A buyer is important to the supplier

D. High switching costs
Answer & Solution
Answer: Option C
Solution:
A buyer is important to the supplier does not increase the bargaining power of a supplier. The idea is
that the bargaining power of the supplier in an industry affects the competitive environment for the
buyer and influences the buyer's ability to achieve profitability. Strong suppliers can pressure buyers by
raising prices, lowering product quality, and reducing product availability.
63.
Which of the following best describes the mode of
international business used by most companies?
A. mixed ventures
B. foreign direct investment
C. joint ventures
D. exporting and importing
Answer & Solution
Answer: Option D
Solution:
Exporting and importing best describes the mode of international business used by most companies.
Exporting is the sale of products and services in foreign countries that are sourced or made in the home
country. Importing refers to buying goods and services from foreign sources and bringing them back into
the home country.
64.
What is the danger of excessive monopoly power?
A. The organization will charge high prices
B. The organization will not attempt to cut costs
C. The organization will change strategy to seek to fully exploit its power
D. The organization will stifle innovation
Answer & Solution
Answer: Option C
Solution:
The organization will change strategy to seek to fully exploit its power is the danger of excessive
monopoly power. A pure monopoly is a single supplier in a market with no competitors, whereas
monopoly power exists when a single firm dominates a particular market.
65.
Exports and imports apply mostly to which of the following?
A. services
B. merchandise
C. intellectual property
D. licensing
Answer & Solution
Answer: Option B
Solution:
Exports and imports apply mostly to merchandise. Exporting is the sale of products and services in
foreign countries that are sourced or made in the home country. Importing refers to buying goods and
services from foreign sources and bringing them back into the home country.
Answer & Solution
Answer: Option C
Solution:
Relative power and interest is the most appropriate method of categorizing stakeholders.
53.
Answer & Solution
Answer: Option A
54.
marketplace
Answer & Solution
Answer: Option A
Solution:
55.Which of the following statements best describes scenario

planning?
most
Answer & Solution
Answer: Option A
66.
Why should governments seek to regulate?
A. To control competition and stop monopoly power
B. To minimize resource wastage and monopoly power
C. To control competition and minimize resource wastage
D. To control competition, minimize resource wastage, and inhibit the exploitation of weak
buyers and suppliers
Answer & Solution
Answer: Option D
Solution:
Governments seek to regulate to control competition, minimize resource wastage, and inhibit the
exploitation of weak buyers and suppliers.
67.
An investment that gives the investor a controlling interest in
a foreign company is known as which of the following?
A. foreign portfolio investment
B. foreign direct investment
C. mixed venture
D. pure venture
Answer & Solution
Answer: Option B
Solution:
An investment that gives the investor a controlling interest in a foreign company is known as foreign
direct investment. A foreign direct investment (FDI) is an investment made by a firm or individual in one
country into business interests located in another country. Generally, FDI takes place when an investor
establishes foreign business operations or acquires foreign business assets in a foreign company.
68.
Which of the following is not suggested by Markides (1999)
as a factor for competitive and strategic success?
A. Synergy
B. Careful evaluation of strategic options
C. Ensure consistency between desired strategic position and the chosen strategy
D. Active opportunity searching
Answer & Solution
Answer: Option C
Solution:
Ensure consistency between desired strategic position and the chosen strategy is not suggested by
Markides (1999) as a factor for competitive and strategic success. Markides (1999introduced "
breakthrough strategies " that primarily focus on revitalizing business and markets in a competitive
environment, also taking other strategic alliances into consideration. The combination of creative
marketing strategies and effective implementation seems a logical approach for organizations to gain a
competitive advantage.
69.
In order to have controlling interest in a foreign company
A. an investor must have at least 100 % interest in the foreign company
B. an investor must have at least 50% interest in the foreign company
C. an investor may hold a minority stake if the remaining ownership is widely dispersed
D. an investor must make all decisions at headquarters about the foreign company
Answer & Solution
Answer: Option C
Solution:
In order to have controlling interest in a foreign company an investor may hold a minority stake if the
remaining ownership is widely dispersed. Working control is a situation wherein a minority shareholder
or shareholders have enough voting power to influence or determine corporate policy.
70.
To succeed, Ansoff (1987) demands that organizations
become
A. more aggressive in terms of competitive strategies and entrepreneurialism or change

orientation
B. more aggressive in terms of competitive strategies
C. more aggressive in terms of competitive strategies and in their pursuit of opportunities
D. more aggressive in terms of competitive strategies and innovation
Answer & Solution
Answer: Option A
***********************************CHAPTER 3***********************************
1.
The strategic management process is
A. a set of activities that is guaranteed to prevent organizational failure

B. a process concerned with a firms resources, capabilities, and competencies, but not the
conditions in its external environment
C. a set of activities that to date have not been used successfully in the not-for-profit sector
D. a dynamic process involving the full set of commitments, decisions, and actions related to
the firm
Answer & Solution
Answer: Option D
2.
Organizations require good people with appropriate skills
and abilities to work together effectively to be successful.
Which of the following characteristics is not seen as critical
for this?
A. Competent
B. Committed
C. Cost-effective
D. Capable
Answer & Solution
Answer: Option D
3.
Hard human resource management assumes which of the
following?
A. Employees are more productive when they are better informed
B. Employees are more productive if they are committed to the organization
C. Employees are resources to be used effectively in the search for competitive advantage
D. Employees have to be trusted to make correct decisions
Answer & Solution
Answer: Option C
4.
Strategic mission
A. is a statement of a firms unique purpose and scope of operations
B. is an internally-focused affirmation of the organization's societal and ethical goals
C. does not limit the firm by specifying the industry in which the firm intends to compete
D. is developed by a firm before the firm develops its strategic intent

Answer & Solution
Answer: Option A
5.
Which of these is a characteristic of soft human resource
management?
A. Managers are responsible for employees
B. Teams provide increased productivity
C. Managers are responsible for deploying employees
D. Scientific management principles and systems should be used to deal with employees
Answer & Solution
Answer: Option B
Solution:
Teams provide increased productivity is a characteristic of soft human resource management. Soft
human resource management (HRM) is an approach to human resource management that involves
treating employees as one of a company's most important assets. When management uses soft HRM, it
views its employees as critical resources who are key to their long-term business strategies.
A. Employees are more productive when they are better informed
B. Employees are more productive if they are committed to the organization

C. Employees are resources to be used effectively in the search for competitive advantage
D. Employees have to be trusted to make correct decisions
Answer & Solution
Answer: Option C
Solution:
Hard human resource management assumes Employees are resources to be used effectively in the
search for competitive advantage. Hard human resources management, or hard HRM is a staff
management system in which workers are seen as a resource that needs to be controlled to achieve the
highest profit and a competitive advantage. The focus of hard HRM is on the task that needs to be done,
cost control, and achieving organizational goals.
4.
Strategic mission
A. is a statement of a firms unique purpose and scope of operations
B. is an internally-focused affirmation of the organization's societal and ethical goals
C. does not limit the firm by specifying the industry in which the firm intends to compete
D. is developed by a firm before the firm develops its strategic intent
Answer & Solution
Answer: Option A
Solution:
Strategic mission is a statement of a firms unique purpose and scope of operations. Strategic mission is a
type of marketing approach which is based on the core philosophy of organization. It is a long term plan
on which the company operates to achieve its mission and vision objectives and goals.
5.
Which of these is a characteristic of soft human resource
management?
A. Managers are responsible for employees
B. Teams provide increased productivity
C. Managers are responsible for deploying employees
D. Scientific management principles and systems should be used to deal with employees
Answer & Solution
Answer: Option B
Solution:
Teams provide increased productivity is a characteristic of soft human resource management. Soft
human resource management (HRM) is an approach to human resource management that involves
treating employees as one of a company's most important assets. When management uses soft HRM, it
views its employees as critical resources who are key to their long-term business strategies.
6.
The _______________ has its own business strategy,
objectives and competitors and these are often differ from
parent company
A. Strategic Business Unit structure

B. Matrix structure
C. Divisional structure
D. None of given option
Answer & Solution
Answer: Option A
Solution:
The Strategic Business Unit structure has its own business strategy, objectives and competitors and
these are often differ from parent company. A strategic business unit, popularly known as SBU, is a fully-
functional unit of a business that has its own vision and direction. Typically, a strategic business unit
operates as a separate unit, but it is also an important part of the company. It reports to the
headquarters about its operational status.
7.
Which of the following is not an example of a managerial
mindset?
A. Analytic
B. Reflective
C. Competent
D. Co-operative

Answer & Solution
Answer: Option C
Solution:
Competent is not an example of a managerial mindset. A worldly mindset helps you operate in diverse
regions, with the cultural and social insights needed to serve varied customers. Managing relationships
(collaborative mindset).
8.
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
Answer & Solution
Answer: Option B
Solution:
The vision and mission statement can often be found in annual reports. A Mission Statement defines the
company's business, its objectives and its approach to reach those objectives. A Vision Statement
describes the desired future position of the company. Elements of Mission and Vision Statements are
often combined to provide a statement of the company's purposes, goals and values.
9.
Which statement should be created first and foremost?
A. Strategic
B. Vision
C. Objectives
D. Mission
10.
What does the acronym SMART refer to?
A. Superiority, Measurement, Appropriability, Replicability, Transparency
B. Specific, Measurable, Achievable, Realistic, Timescale
C. Substitutability, Measurement, Appropriability, Replicability, Transparency
D. Specific, Measurable, Achievable, Realistic, Timely
Answer & Solution
Answer: Option B
Solution:
S.M.A.R.T. is an acronym that stands for specific, measurable, achievable, realistic and timescale.
11.
The purpose of a mission statement is to declare all of these
except
A. a reason for being
B. an annual financial plan
C. a statement of purpose
D. a statement of beliefs
Answer & Solution
Answer: Option B
Solution:
The purpose of a mission statement is to declare all of these except an annual financial plan. The sole
purpose of a mission statement is to serve as a company's goal/agenda, it outlines clearly what the goal
is.
12.
Which of the following is not a characteristic of the Internet?
A. Provides information
B. Facilitates communication
C. Provides competitive advantage
D. Enables electronic trading

Answer & Solution
Answer: Option A
Solution:
Providing information is not a characteristic of the Internet. The Internet is essentially a decentralized,
self-maintained telecom-munications network. It is made up of inter-linking small networks from all
parts of the world. It is ubiquitous, borderless, global and ambient in its nature. Hence the term
“cyberspace.”
13.
As indicated in the strategic-management model, a clear
_______ is needed before alternate strategies can be
formulated and implemented.
A. long-term objective
B. short-term objective
C. policy
D. mission statement
Answer & Solution
Answer: Option D
Solution:
As indicated in the strategic-management model, a clear mission statement is needed before alternate
strategies can be formulated and implemented. The strategic management model provides managers
and strategists a greater comprehension of the iterative approach in conducting real strategic
management in the organizational setting. The strategic management model begins with the
development of the organizational mission and vision.
14.
Which one of the following criteria does not provide a means
to assess strategic resources?
A. Sustainability
B. Scarcity
C. Inimtability
D. Synergy
Answer & Solution
Answer: Option D
Solution:
Synergy criteria does not provide a means to assess strategic resources. Synergy is the concept that the
combined value and performance of two companies will be greater than the sum of the separate
individual parts. Synergy is a term that is most commonly used in the context of mergers and
acquisitions (M&A).
15.
Innovation and quality can be seen as which form of
management?
A. Marketing management
B. Financial management
C. Operations management
D. Human resource management
Answer & Solution
Answer: Option C
Solution:
Innovation and quality can be seen as Operations

management. Operations management is the
administration of business practices to create the highest
level of efficiency possible within an organization. It is
concerned with converting materials and labor into goods
and services as efficiently as possible to maximize the
profit of an organization16.
The mission statement answers which question?
A. What is our business?
B. How can we improve ourselves?
C. What do we want to become?
D. Who are our stakeholders?
Answer & Solution

Answer: Option A
Solution:
The mission statement answers- What is our business?. A mission statement is a brief description of a
company's fundamental purpose.
17.
Which of the following is not one of the four key strategic
elements linked to corporate objectives?
A. Competitive environment
B. Stakeholder expectations
C. Research and development
D. Organization structure
Answer & Solution
Answer: Option C
Solution:
Research and development is not one of the four key strategic elements linked to corporate objectives.
Research and development (R&D) refers to the activities companies undertake to innovate and
introduce new products and services. It is often the first stage in the development process. The goal is
typically to take new products and services to market and add to the company's bottom line.
18.
The vision statement answers which question?
A. What is our business?

B. How can we improve ourselves?
C. What do we want to become?
D. Who are our stakeholders?
Answer & Solution
Answer: Option C
Solution:
The vision statement answers- What do we want to become?
19.
In the process of developing a mission statement, it is
important to involve
A. as few managers as possible
B. as many managers as possible
C. upper-level management only
D. lower-level management only
Answer & Solution
Answer: Option B
Solution:
In the process of developing a mission statement, it is important to involve as many managers as
possible. The mission statement allows everyone in an organization to clearly understand why they are
doing their work. An organization's mission also guides its operational plans and describes the
organization to potential funders, clients and beneficiaries.
20.
Information is defined by Lucas (1976) as
A. some tangible or intangible entity that creates certainty about a state or event
B. some tangible or intangible entity that reduces uncertainty about a state or event
C. some tangible or intangible entity that leads to understanding
D. some tangible or intangible entity that leads to knowledge
Answer & Solution
Answer: Option B
Solution:
Information is defined by Lucas (1976) as some tangible or intangible entity that reduces uncertainty
about a state or event.
21.
The process of developing a mission statement includes
which of these as the first activity?
A. A request to modify the current document
B. Ask managers to read selected articles about mission statements

C. Ask managers to prepare a mission statement for the organization
D. A merging of several mission statements into one document
Answer & Solution
Answer: Option B
Solution:
The process of developing a mission statement includes ask managers to read selected articles about
mission statements. A mission statement defines what an organization is, why it exists, its reason for
being. At a minimum, your mission statement should define who your primary customers are, identify
the products and services you produce, and describe the geographical location in which you operate.
22.
Which of the following is a skill required by organizations to
deal with competitive chaos?
A. The ability to share information among all managers
B. The ability to operate efficiently and effectively
C. The ability to discern patters in the dynamic environment and competitive chaos, and spot
opportunities ahead of rivals
D. The ability to benchmark competitors
Answer & Solution
Answer: Option C
Solution:
The ability to discern patters in the dynamic environment and competitive chaos, and spot opportunities
ahead of rivals is a skill required by organizations to deal with competitive chaos.
23.
What can be used to promote unbiased views and to manage
the development of the mission and vision statement more
effectively?
A. an internal group
B. a committee of managers
C. command-and-control
D. a facilitator
Answer & Solution
Answer: Option D
Solution:
A facilitator can be used to promote unbiased views and to manage the development of the mission and
vision statement more effectively. Facilitation is defined as an activity designed ‘to make easier, to
promote or help forward’. In business, it is about helping people to solve their problems using their own
solutions.
24.
Which of the following is a characteristic of a customer-
driving organization?
A. Innovative
B. Conservative
C. Responsive
D. Unresponsive
Answer & Solution
Answer: Option C
Solution:
Responsive is a characteristic of a customer-driving organization. Customer responsiveness measures

the speed and quality at which your company provides customer service and communication.
25.
An effective mission statement is all of the following except
A. It reflects judgments about future growth directions that are based upon forward-looking
external and internal analyses
B. It provides useful criteria for selecting among alternative strategies
C. It provides a basis for generating and screening strategic options
D. It is static in orientation
Answer & Solution
Answer: Option D
Solution:
An effective mission statement is all of the following except it is static in orientation. To be effective,
mission statements need to clarify the intentions of the business while being inspirational and
meaningful to customers and employees. Successful mission statements may take time to create, but
when they are developed correctly, they provide a company with clear direction and purpose.
26.
What are focus strategies?
A. Where a company focuses on achieving lower costs than its rivals so as to compete across
a broad range of market segments
B. Where a company chooses to concentrate on only one market segment or a limited range
of segments
C. When a company conducts market research through focus groups to determine how their
strategy should be shaped
D. When a company focuses on supplying differentiated products which appeal to different

market segments
Answer & Solution
Answer: Option B
Solution:
Focus strategies is that where a company chooses to concentrate on only one market segment or a
limited range of segments. A marketing strategy in which a company concentrates its resources on
entering or expanding in a narrow market or industry segment. A focus strategy is usually employed
where the comopany knows its segment and has products to competitively satisfy its needs. Focus
strategy is one of three generic marketing strategies.
27.
Which of the following is not a factor in the positioning of an
organization in an industry?
A. Competitive advantage
B. Rate of growth
C. Market share
D. Size
Answer & Solution
Answer: Option B
Solution:
Rate of growth is not a factor in the positioning of an organization in an industry. A process through
which the structure of a multigent system organization increases the number of its roles and links.
Organizational growth is essentially a quantitative process.
28.
Good mission statements identify the ______ of a firms
products to its customers
A. utility
B. price
C. profit margin
D. demand
Answer & Solution
Answer: Option A
Solution:
Good mission statements identify the utility of a firms products to its customers. A mission statement is
a formal summary that explains what you do, how you do it and why you do it.
29.
Heller (1998) suggested organizations must address seven
key issues effectively to sustain competitive advantage.
Which of the following is not one of those issues?
A. Effectiveness
B. Innovation
C. Costs
D. Speed
Answer & Solution
Answer: Option D
Solution:
Heller (1998) suggested organizations must address seven key issues effectively to sustain competitive
advantage. Speed is not one of those issues.
30.
Effective mission statements can vary in
A. length
B. content
C. format
D. all of the above
Answer & Solution
Answer: Option D
Solution:
Effective mission statements can vary in length, content and format. To be effective, mission statements
need to clarify the intentions of the business while being inspirational and meaningful to customers and
employees. Successful mission statements may take time to create, but when they are developed
correctly, they provide a company with clear direction and purpose.
31.
Which component of a mission statement addresses the
firms distinctive competence or major competitive
advantage?
A. Technology
B. Philosophy
C. Concern for public image
D. Self-concept
Answer & Solution
Answer: Option D
Solution:
Self-concept component of a mission statement addresses the firms distinctive competence or major
competitive advantage. A mission statement is a short statement of why an organization exists, what its
overall goal is, identifying the goal of its operations: what kind of product or service it provides, its
primary customers or market, and its geographical region of operation.
32.
Which of these characteristics best describes a customer-
driven organization?
A. Unresponsiveness
B. Cost reduction
C. Responsiveness
D. Innovation
Answer & Solution
Answer: Option C
Solution:
Responsiveness characteristics best describes a customer-driven organization. Responsiveness, in

communication, refers to the degree that what YOU say, responds clearly and directly, to what the other
person just said. If you are being responsive, the other person knows you are paying attention, and care
enough about what he or she is talking about to "stay on that topic".
33.
Which of the following is a source of differentiation?
A. Relationships with customers
B. Distribution
C. Low costs
D. Unreliability
Answer & Solution
Answer: Option A
Solution:
Relationships with customers is a source of differentiation. Product differentiation is a marketing

strategy that strives to distinguish a company's products or services from the competition. Successful
product differentiation involves identifying and communicating the unique qualities of a company's
offerings while highlighting the distinct differences between those offerings and others on the market.
34.
Which component of a mission statement addresses the
basic beliefs, values, aspirations, and ethical priorities of the
firm?
A. Technology
B. Philosophy
C. Concern for public image

D. Customers
Answer & Solution
Answer: Option B
Solution:
Philosophy component of a mission statement addresses the basic beliefs, values, aspirations, and
ethical priorities of the firm. What are the basic beliefs, values, aspirations, and philosophical.
35.
Effective mission statements
A. are usually changed every few months
B. are usually changed every few years
C. never require revision
D. stand the test of time and require little revision
Answer & Solution
Answer: Option D
Solution:
Effective mission statements stand the test of time and require little revision. To be effective, mission
statements need to clarify the intentions of the business while being inspirational and meaningful to
customers and employees. Successful mission statements may take time to create, but when they are
developed correctly, they provide a company with clear direction and purpose.
36.
Which of the following best relates to market share? Market
share is:
A. the best indicator of performance
B. not important
C. indicative of competitive advantage
D. subjective
Answer & Solution
Answer: Option D
Solution:
Market share is subjective. Subjective marketing is founded on the marketer's own experience regarding
product successes and failures, knowledge of new products, understanding of the customer and
prospect base, and existing and past customer relationships. These all are essential to setting up a
marketing plan.
37.
The goal of the cost leader is to:
A. start a price war
B. minimize wages
C. charge the lowest price

D. make high margins
Answer & Solution
Answer: Option D
Solution:
The goal of the cost leader is to make high margins. Leader pricing is a common pricing strategy used by
retailers to attract customers. It involves setting lower price points and reducing typical profit margins to
introduce brands or stimulate interest in the business as a whole or a particular product line. Products
sold in this strategy are often sold at a loss.
38.
Which of the following is not a means to develop a customer
commitment focus in the organization?
A. Introducing quality control
B. Activity mapping
C. Enhancing customer service
D. Image building
Answer & Solution
Answer: Option C
Solution:
Enhancing customer service is not a means to develop a customer commitment focus in the
organization. Great customer service can help you build trust, improve brand awareness, gain customer
loyalty, drive sales, and attract new customers through valuable recommendations.
39.
The means by which long term objectives will be achieved
are
A. mission statements
B. strategies
C. vision statements
D. long term goals
Answer & Solution
Answer: Option B
Solution:
The means by which long term objectives will be achieved are strategies. Strategy determines the
direction and scope of an organization over the long term, and they say that it should determine how
resources should be configured to meet the needs of markets and stakeholders.
40.
By what means should an organization measure its
performance?
A. Efficiency
B. Effectiveness
C. Economy, efficiency, and effectiveness
D. Efficiency and effectiveness
Answer & Solution
Answer: Option C
Solution:
By economy, efficiency, and effectiveness means should an organization measure its performance.
analyzing a company's performance against its objectives and goals. In other words, organizational
performance comprises real results or outputs compared with intended outputs.
41.
Which of these statements best describes all the benefits a
company can derive from analyzing its financial
performance?
A. It can make comparisons with competitors, reveal lost profit and growth potential,
emphasize possible dangers and enable a study of trends and progress
B. It can make comparisons with competitors, reveal lost profit and growth potential and
isolate neglected market sectors
C. It can reveal lost profit and growth potential, emphasize possible dangers and isolate
neglected market segments
D. It can make comparisons with competitors, reveal lost profit and growth potential and
reveal possible trends in the development of the company's share price

Answer & Solution
Answer: Option A
Solution:
The statement that best describes all the benefits a company can derive from analyzing its financial
performance is that it can make comparisons with competitors, reveal lost profit and growth potential,
emphasize possible dangers and enable a study of trends and progress.
42.
According to Schein (1985), what are the levels that make up
a company's culture?
A. Artifacts, values, underlying assumptions, and behaviors
B. Artifacts, values, and underlying assumptions
C. Artifacts, communications, underlying assumptions, and behaviors
D. Values, communications, and underlying assumptions
Answer & Solution
Answer: Option A
Solution:
According to Schein (1985), Artifacts, values, underlying assumptions, and behaviors are the levels that
make up a company's culture. The first level is the characteristics of the organization which can be easily
viewed, heard and felt by individuals collectively known as artifacts. The dress code of the employees,
office furniture, facilities, behavior of the employees, mission and vision of the organization all come
under artifacts and go a long way in deciding the culture of the workplace. The next level according to
Schein which constitute the organization culture is the values of the employees. The values of the
individuals working in the organization play an important role in deciding the organization culture. The
thought process and attitude of employees have deep impact on the culture of any particular
organization. What people actually think matters a lot for the organization? The mindset of the
individual associated with any particular organization influences the culture of the workplace. The third
level is the assumed values of the employees which can’t be measured but do make a difference to the
culture of the organization. There are certain beliefs and facts which stay hidden but do affect the
culture of the organization. The inner aspects of human nature come under the third level of
organization culture. Organizations where female workers dominate their male counterparts do not
believe in late sittings as females are not very comfortable with such kind of culture. Male employees on
the other hand would be more aggressive and would not have any problems with late sittings. The
organizations follow certain practices which are not discussed often but understood on their own. Such
rules form the third level of the organization culture.
43.
____________ refers to the strategies and counter strategies
of a firm that compete in a shared market place
A. Retrenchment strategy
B. Competitive gaming
C. Business strategy
D. Corporate strategy
Answer & Solution
Answer: Option B
Solution:
Competitive gaming refers to the strategies and counter strategies of a firm that compete in a shared
market place. Competitive games are those in which players play against one another and where one
player winning means another player loses. Two player games are often competitive, with a distinct win-
or-lose outcome.
44.
____________ is also referred to as external strategic
management audit
A. Organizational analysis
B. Environmental analysis
C. Industry analysis
Answer & Solution
41.
Which of these statements best describes all the benefits a
company can derive from analyzing its financial
performance?
A. It can make comparisons with competitors, reveal lost profit and growth potential,
emphasize possible dangers and enable a study of trends and progress
B. It can make comparisons with competitors, reveal lost profit and growth potential and
isolate neglected market sectors
C. It can reveal lost profit and growth potential, emphasize possible dangers and isolate
neglected market segments
D. It can make comparisons with competitors, reveal lost profit and growth potential and
reveal possible trends in the development of the company's share price
Answer & Solution
Answer: Option A
42.
According to Schein (1985), what are the levels that make up
a company's culture?
A. Artifacts, values, underlying assumptions, and behaviors
B. Artifacts, values, and underlying assumptions
C. Artifacts, communications, underlying assumptions, and behaviors
D. Values, communications, and underlying assumptions
Answer & Solution
Answer: Option A
43.
____________ refers to the strategies and counter strategies
of a firm that compete in a shared market place
A. Retrenchment strategy
B. Competitive gaming
C. Business strategy
D. Corporate strategy
Answer & Solution
Answer: Option B
Solution:
Competitive gaming refers to the strategies and counter strategies of a firm that compete in a shared
market place. Competitive games are those in which players play against one another and where one
player winning means another player loses. Two player games are often competitive, with a distinct win-
or-lose outcome.
44.
____________ is also referred to as external strategic
management audit
Answer & Solution : Answer: Option C
45.
In order for a culture to generate success, what does it need
to be?
A. Stable and secure
B. Flexible and adaptive
C. Innovative and resourceful
D. Flexible and resourceful
Answer & Solution
Answer: Option B
6.
Which of the following would a market-driven business most
likely be?
A. Competitive
B. Efficient
C. Flexible
D. Resourceful
Answer & Solution
Answer: Option D
Solution:
A market-driven business most likely be resourceful. Market-driven is defined as: “Firm's policy or
strategy guided by market trends and customer needs instead of the firm's productive capacity or
current products.”
47.
________ are external forces affecting organizations
A. Technological forces
B. Political forces
C. Economic forces
D. All of the above
Answer & Solution
Answer: Option D
Solution:
Technological forces, Political forces and Economic forces are external forces affecting organizations.
48.
According to Sir Allen Shepherd what is the task of corporate
leadership?
A. To apply energy and judgement to the corporate culture to ensure its relevance
B. To apply energy and judgement to the corporate culture to ensure its stability
C. To apply energy and judgement to the corporate culture to ensure its continuity
D. To apply energy and judgement to the corporate culture to ensure its productivity
Answer & Solution
Answer: Option A
Solution:
According to Sir Allen Shepherd to apply energy and judgement to the corporate culture to ensure its
relevance is the task of corporate leadership. Shepherd leadership is a matter of selfless service to
subordinates. This service to others will require a commitment to serve without the potential of
immediate recognition or reward. Shepherd leadership will require, at times, gently leading those in
their charge, mentoring and sometimes teaching them along the way.
49.
__________ is identifying opportunities and threats affecting
their business
D. Competitive analysis
Answer & Solution
Answer: Option B
Solution:
Environmental analysis is identifying opportunities and threats affecting their business. Environmental
analysis is a strategic tool. It is a process to identify all the external and internal elements, which can
affect the organization's performance. The analysis entails assessing the level of threat or opportunity
the factors might present.
50.
According to Press (1990), what are the four discrete
philosophies upon which an organization's culture can be
based?
A. The resource focus, the product focus, the shareholder focus and the people focus
B. The product focus, the shareholder focus, the people focus and the market focus
C. The resource focus, the shareholder focus, the people focus and the market focus
D. The shareholder focus, the people focus, the product focus and the market focus
Answer & Solution
Answer: Option C
Solution:
According to Press (1990), The resource focus, the shareholder focus, the people focus and the market
focus are the four discrete philosophies upon which an organization's culture can be based.
51.
What or who are Reactors?
A. Innovative and entrepreneurial organizations
B. Organizations which follow industry trends

C. Conservative and low risk organizations
D. Organizations with limited change and measured steps
Answer & Solution
Answer: Option B
Solution:
Organizations which follow industry trends are Reactors. Reactors are organizations in which top
management frequently perceive change and uncertainty occurring in their organizational environments
but are unable to respond effectively.
52.
___________ involves surveillance of a firm's external
environment to predict environmental changes to come and
detect changes already under way
A. Environmental scanning
B. Environmental monitoring
C. Competitive intelligence
D. Environmental forecasting
Answer & Solution
Answer: Option A
Solution:
Environmental scanning involves surveillance of a firm's external environment to predict environmental
changes to come and detect changes already under way. Environmental scanning is the process of
gathering information about events and their relationships within an organization's internal and external
environments. The basic purpose of environmental scanning is to help management determine the
future direction of the organization.
53.
Kets de Vries (1996) suggested strategic leaders have two
key roles to play. Which two roles are they?
A. Transformational and Effective
B. Charismatic and Effective
C. Transformational and Charismatic
D. Charismatic and Architectural
Answer & Solution
Answer: Option D
Solution:
Kets de Vries (1996) suggested strategic leaders have two key roles to play that are Charismatic and
Architectural. In the charismatic role, leaders envision a better future and empower and energize their
subordinates. In the architectural role, leaders address issues related to organizational design and
control and reward systems.
54.
_____________ involves the development of projections
about the direction, scope, speed and intensity of
environmental change
A. Environmental scanning
B. Environmental monitoring
C. Competitive intelligence
D. Environmental forecasting
Answer & Solution
Answer: Option D
Solution:
Environmental forecasting involves the development of projections about the direction, scope, speed
and intensity of environmental change. Environmental forecasting is the process of predicting and
calculating the potential intensity, duration, timeframe, and nature of various external forces that can
affect the business activities of a company, interrupt its plans, and force it to introduce changes to its
objectives and strategies.
55.
What form of strategy formation would be expected to be
found in Defender organizations?
A. Formal planning
B. Visionary
C. Adaptive
D. Incremental
Answer & Solution
Answer: Option A
Solution:
Formal planning form of strategy formation would be expected to be found in Defender organizations.
Most of the organizations follows formal planning. It is written and focuses specifically on the long term
goals of the organization. The planning which is discussed practically and the details, explanations are
noted down helps the organization achieve its objectives smoothly.
56.
_________ begins with identifying the industry's dominant
economic features and forming a picture of the industry
landscape
B. Industry analysis
C. Environmental analysis
D. Competitive analysis
Answer & Solution
Answer: Option B
Solution:
Industry analysis begins with identifying the industry's dominant economic features and forming a
picture of the industry landscape. An industry analysis is a business function completed by business
owners and other individuals to assess the current business environment. This analysis helps businesses
understand various economic pieces of the marketplace and how these various pieces may be used to
gain a competitive advantage.
57.
Strategy creation involves three strands. Which of the
following is not one of the three stands?
A. Planning
B. Vision
C. Entrepreneurship
D. Emergent strategies
Answer & Solution
Answer: Option C
Solution:
Strategy creation involves three strands. Entrepreneurship is not one of the three stands. These
strategies are cost leadership, differentiation, and focus.
58.
In business, __________ generally refers to the fight for
market share which serves the same basic customer needs
A. Competition
B. Composition
C. Rivalry
Answer & Solution
Answer: Option A
Solution:
In business, Competition generally refers to the fight for market share which serves the same basic
customer needs. Competition is the rivalry between companies selling similar products and services with
the goal of achieving revenue, profit, and market share growth.
59.
Which of the following is not one of the three elements of
strategy creation?
A. Sales
B. Innovation
C. Planning
D. Leadership
Answer & Solution
Answer: Option A
Solution:
Sales is not one of the three elements of strategy creation. The environment, the resources of your
organisation and the expectations of different stakeholders are three elements of strategy creation.
60.
A young industry that is beginning to form is considered to
be in __________ stage
A. Introduction
B. Growth
C. Shakeout
D. Maturity
Answer & Solution
Answer: Option A
Solution:
A young industry that is beginning to form is considered to be in Introduction stage. Demand for the
industry's outputs is low at this time because product and/or service awareness is still developing.
61.
What is an emergent strategy?
A. One with clear objectives leading to a clear strategy
B. One with no specific objectives, that is fully flexible, using opportunism to seize the main
chance at the right moment
C. One with a formal approach to adaptive strategy creation, so that in a turbulent
environment objectives and strategies can be adjusted
D. One that has a clear mission and directional objectives but that also recognizes the need
for flexibility
Answer & Solution
Answer: Option B
Solution:
One with no specific objectives, that is fully flexible, using opportunism to seize the main chance at the
right moment is an emergent strategy. Emergent strategy is a set of actions, or behavior, consistent over
time, “a realized pattern [that] was not expressly intended” in the original planning of strategy. When a
deliberate strategy is realized, the result matches the intended course of action.
62.
What must the strategic visionary leader avoid in order to
ensure the prolonged success of a strategy?
A. Becoming blinkered by the success of one strategy to the detriment of others
B. Depending too heavily on colleagues
C. Becoming too ambitious
D. Being adaptable
Answer & Solution

Answer: Option A
Solution:
Becoming blinkered by the success of one strategy to the detriment of others must be the strategic
visionary leader avoid in order to ensure the prolonged success of a strategy.
63.
Explosive growth cannot be maintained indefinitely. Sooner
or later, the rate of growth slow and the industry enters the
A. Embroynic stage
B. Growth stage
C. Shakeout stage
D. Maturity stage
Answer & Solution
Answer: Option C
Solution:
Explosive growth cannot be maintained indefinitely. Sooner or later, the rate of growth slow and the
industry enters the Shakeout stage. Shakeout usually refers to the consolidation of an industry. Some
businesses are naturally eliminated because they are unable to grow along with the industry or are still
generating negative cash flows.
64.
The five forces model developed by ________ has been the
most commonly used analytical tool for examining
competitive environment
A. Michnal E Porter
B. Lewis Charter
C. Barrywell
D. Schwiz
Answer & Solution
Answer: Option A
Solution:
The five forces model developed by Michnal E Porter has been the most commonly used analytical tool
for examining competitive environment. This is useful, because, when you understand the forces in your
environment or industry that can affect your profitability, you'll be able to adjust your strategy
accordingly.
65.
What is an incremental strategy?
A. One that is formalized from the beginning and adhered to along the way exactly
B. One that evolves according to past experiences and changing circumstances
C. One that is formalized, but is slightly flexible if necessary
D. One that has the potential to open up new opportunities along the way which can be
incorporated into the long term strategy

Answer & Solution
Answer: Option B
Solution:
One that evolves according to past experiences and changing circumstances is an incremental strategy.
Incremental strategic planning identifies the changes an organization needs to implement in order to
improve specific conditions, whether these are community conditions or organizational conditions.
Incremental plans provide very clear direction on political and funding priorities.
66.
Name one of the strategic pressures that could weaken an
unprepared organization?
A. Exploitation of opportunities
B. Lax controls that indulge flexibility
C. Adaptation along the strategic path
D. Too many controls at the expense of flexibility
Answer & Solution
Answer: Option D
Solution:
Too many controls at the expense of flexibility one of the strategic pressures that could weaken an
unprepared organization.
67.
The first of Porters Five Forces model is the
A. Intensity of rivalry among industry competitors
B. Threats of new entrants
C. Bargaining power of suppliers
D. Bargaining power of buyers
Answer & Solution
Answer: Option B
Solution:
The first of Porters Five Forces model is the threats of new entrants. Threat of new entrants refers to the
threat new competitors pose to existing competitors in an industry. Therefore, a profitable industry will
attract more competitors looking to achieve profits.
68.
__________ refers to the ability of buyers to bargain down
prices charged by firms in the industry or driving up the
costs of the firm by demanding better product quality and
service
A. Bargaining power of suppliers
B. Threats of new entrants
C. Bargaining power of buyers
D. Threat of substitute products

Answer & Solution
Answer: Option C
Solution:
Bargaining power of buyers refers to the ability of buyers to bargain down prices charged by firms in the
industry or driving up the costs of the firm by demanding better product quality and service. The
Bargaining Power of Buyers, one of the forces in Porter's Five Forces Industry Analysis Framework, refers
to the pressure that customers/consumers can put on businesses to get them to provide higher quality
products, better customer service, and/or lower prices.
69.
In military analogy, what is the outcome if in strategy creation
the organization has both capability and intent?
A. Capacity
B. Credibility
C. Emergent strategy
D. Intended strategy
Answer & Solution
Answer: Option B
Solution:
In military analogy, Credibility is the outcome if in strategy creation the organization has both capability
and intent. Strategic credibility has to do with how favourably key stakeholders view the strategic
foundations of the firm.
70.
What is the key variable in executing visionary strategy
creation at the competitive strategy level?
A. Seizing the opportunities presented
B. Formalized planning
C. Innovation
D. Learning
Answer & Solution
Answer: Option C
Solution:
Innovation is the key variable in executing visionary strategy creation at the competitive strategy level.
Innovation involves deliberate application of information, imagination and initiative in deriving greater
or different values from resources, and includes all processes by which new ideas are generated and
converted into useful products.

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Section-1

1.Strategy is developed by the visionary chief executive in

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A. Relative power only

C. Relative power and interest

D. Relative power, interest, and amount of stock held

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A. all commercial transactions between two or more countries

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A. When an organization has absolute power in its chosen marketplace

C. When an organization has limited power in its chosen marketplace

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D. strategic levelAnswer & Solution Discuss in Board Save for Later

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3.What are the means by which long term objectives will be

A. StrategiesB. PoliciesC. StrengthD. OpportunitieAnswer & Solution Discuss in

4.Marketing strategy is a ___________ type of strategy

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6.A possible and desirable future state of an organization is

B. Vision C. Strategy implementation D. Strategy formulation

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A. Industry attractiveness and Business strength

B. Industry Growth rate and Business strength

C. Industry Attractiveness and Relative Market share

D. Industry growth rate and relative market share

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D. More than 5 years

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C. Socio cultural environment

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D. All of the abvoe

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B. buyers purchases in small volume

C. buyers purchases in large volume

D. product of suppliers are unique and differentiated

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