An example of a strategic operations management decision is the choice of where to locate.

TRUE
Location decisions are strategic in nature.

2. An example of an operational operations management decision is inventory level management.

TRUE
Inventory management is an operational decision.

3. Government statistics are a good source of data about productivity trends in the service sector.
FALSE
The service sector is often omitted in government statistics.

4. An example of a tactical operations management decision is determining employment levels.

TRUE
Staffing is an ongoing, tactical decision.

5. Productivity is defined as the ratio of output to input.

TRUE
Divide outputs by inputs to get productivity.

6. Productivity is defined as the ratio of input to output.

FALSE
Productivity is the ratio of outputs to inputs.

7. Competitiveness relates to the profitability of an organization in the marketplace.

FALSE
Competitiveness relates to how effectively an organization meets the wants and needs of customers
relative to other organizations that offer similar goods or services.

8. If people would only work harder, productivity would increase.

FALSE
Working harder can actually reduce productivity in some cases.

9. Tracking productivity measures over time enables managers to judge organizational performance and
decide where improvements are needed.
TRUE
Productivity trends direct attention toward problems and opportunities.

10. Productivity is directly related to the ability of an organization to compete.

TRUE
A more productive organization is a more competitive organization.

11. A characteristic that was once an order winner may become an order qualifier, and vice versa.
TRUE
Order qualifiers and order winners are shaped by the environment.

12. Outsourcing tends to improve quality but at the cost of lowered productivity.
FALSE
Outsourcing can lead to both quality and productivity improvements.

13. Productivity tends to be only a very minor factor in an organization's ability to compete.
FALSE
An organization's ability to compete is directly affected by its productivity.

14. An organization that is twice as productive as its competitor will be twice as profitable.
FALSE
Productivity advantages don't necessarily translate into profitability advantages.

15. National productivity is determined by averaging the productivity measures of various companies or
industries.
FALSE
National productivity is determined by dividing inputs by outputs across a national economy; averaging
industry measures would lead to a distorted estimate.

16. Wage and salary increases that are not accompanied by productivity increases tend to exert
inflationary pressures on a nation's economy.
TRUE
True increases in standards of living come about through productivity improvements.

17. Global competition really only applies to multi-national organizations.

FALSE
Domestic-only organizations experience competition from organizations in other countries.

18. A business that is rated highly by its customers for service quality will tend to be more profitable
than a business that is rated poorly.
TRUE
Service quality is a powerful tool for improving profitability.

19. Services often don't fit simple yield measurements.

TRUE
Comparing one service output to another is difficult to do accurately.

20. A mission statement should provide a guide for the formulation of strategies for the organization.
TRUE
Strategy-making is constrained by the mission statement.

use for PLANNING work-force req'ments, scheduling equipment, financial analysis, and other
tasks
INCORRECT
No answer given
THE ANSWER
What are productivity ratios used for?
2.
Quality and time
INCORRECT
No answer given
THE ANSWER
What 2 factors tend to have universal strategic operations importance?
3.
Product and Service Design
Cost
Location
Quality
Quick Response
Flexibility
Inventory MGT
Supply Chain MGT
Service
Managers and Workers
INCORRECT
No answer given
THE ANSWER
How does operations influence competitiveness?
4.
used to track performance OVER TIME- where improvements are needed

can be used to judge an entire industry or a country (aggregate measures)

serve as score cards through the effective use of resources

INCORRECT
No answer given
THE ANSWER
why are productivity measures useful?
5.
the monitoring of events and trends that present either threats or opportunities for the
organization

E.g. competitors' activities; changing consumer needs; legal, economic, political and
environmental issues; potential for new markets

Tech change
INCORRECT
No answer given
THE ANSWER
Environmental Scanning
5 Matching questions
1.
how effectively an org. meets the wants and needs of customers relative to others that offer
similar goods or services
INCORRECT
No answer given
THE ANSWER
A.
Competitiveness
2.
the special attributes or abilities that give an organization a COMPETITIVE EDGE
INCORRECT
No answer given
THE ANSWER
D.
Core Competencies
3.
the approach, consistent w/ the organization's strategy, that is used to guide the operations
functions

-narrower in scope than an organization's strategy

-
INCORRECT
No answer given
THE ANSWER
C.
Operations Strategy
4.
the actual "doing" part of the process
INCORRECT
No answer given
THE ANSWER
B.
Operations
5.
PG=Current Productivity-Previous Productivity/ Previous Productivity x 100
INCORRECT
No answer given
THE ANSWER
E.
Productivity Growth
A.
Competitiveness
B.
Operations
C.
Operations Strategy
D.
Core Competencies
E.
Productivity Growth
5 Multiple choice questions
1.
Efficiency:
narrower than productivity
pertains to getting the most out of a fixed set of resources

Productivity:
broader
pertains to the effective use of ALL resources
General factors that affect productivity?
Productivity Growth
Productivity v. Efficiency
Order Winners
2.
Analysis of strengths, weaknesses, opportunities, and threats
SWOT Approach
Productivity
Core Competencies
Operations
3.
improvement in technology, but used in a wise and precise way
How does marketing influence competitiveness?
Where have most productivity gains come from in the past rather than just labor?
T/F: Operations does NOT have a major influence on the competitiveness of an organization?
What are productivity ratios used for?
4.
characteristics of an org's goods or services that cause it to be perceived as BETTER than the
competition
Mission Statement
Order Winners
Productivity v. Efficiency
Order Qualifiers
5.
the reason for the existence of an org
Process yield
Goals
Tactics
Mission
5 True/False questions
1.
1. Identifying consumer wants and/or needs
2. Price and Quality
3. Advertising and Promotion
→
How does operations influence competitiveness?
TrueFalse
INCORRECT
True
THE ANSWER
False
It should be →
How does marketing influence competitiveness?
2.
Labor productivity
Machine productivity
Capital productivity
Energy productivity
→
4 types of different input measures
TrueFalse
CORRECT
True
3.
measures output of goods/services relative to the input of labor, materials, energy, etc used to
produce it

P=Output/Input
→
Productivity Growth
TrueFalse
CORRECT
False
4.
Mission
Orgs goals
Organizational strategies
Functional goals
Finance Marketing Operations
Tactics - Tactics - Tactics
Operating procedures
→
What is the hierarchy of operations?
TrueFalse
CORRECT
True
5.
-Neglecting ops strategy
-Failing to recongnize the competition
-Putting emphasis on short-term financial performance
-Emphasis on product and service design and not enough on process design and improvement
-Neglecting investments capital and human resources
-Not communicating and cooperating effectively
-Failing to consider a consumers wants and needs
→
Environmental Scanning
TrueFalse
CORRECT
False

The mission of a firm should be designed to support each of the firm's functional strategies.
A. True
B. False

2. Productivity is the ratio of input to output, with input limited to material and labor.
A. True
B. False
3. A company can compete with other companies manufacturing a similar product only by selling at
a lower price.
A. True
B. False

4. Management has a great deal of responsibility for improving productivity.

A. True
B. False

5. Productivity less than 100% generally results in operations that lose money.
A. True
B. False

6. Many factors impact productivity, one factor not generally stated as having a negative impact on
productivity is:
A. Government regulations
B. Liability claims
C. Increased emphasis on services
D. Emphasis on short-term performance
E. All are reasons.

7. Which is the correct hierarchy of operations management decisions (highest first)?

A. Operating, tactical, strategic
B. Operating, strategic, tactical
C. Goals, missions, productivity
D. Strategic, operating, tactical
E. Strategic, tactical, operating

8. An operations strategy is developed using many sources of input - which is the least likely to
have input?
A. Quality
B. Planning
C. Suppliers
D. Top Management
E. Production

9. A measure of productivity which reflects a combination of some or all of the resources used to
obtain a certain output is:
A. labor productivity
B. machine productivity
C. multi-factor productivity
D. materials productivity
E. overhead productivity
10. Distinctive competencies in organizations seldom relate to:
A. price (cost)
B. quality
C. time
D. flexibility
E. facilities layout

11. Productivity is calculated by:

A. Dividing inputs by outputs
B. Multiplying inputs by outputs
C. Adding inputs to outputs
D. Dividing outputs by inputs
E. Using benchmarking to yield results

What task does the operations function in a manufacturing organisation perform?

Your Answer:

The operations function covers the manufacturing of products or services

Correct Answer:

The operations function covers all manufacturing processes in an organisation and includes raw materials
sourcing, purchasing, production and manufacturing, distribution and logistics
No. This would be a very narrow definition and fail to recognise some important aspects of
operations. Refer to the chapter introduction in the book.
2.

Correct According to Terry Hill, operations strategy has two major contributions to make to corporate
strategy. Which of the following are they?
i) It aims to provide manufacturing and related processes that will give the organisation competitive
advantages over competition.

ii) It is a route to differentiation of the firm's product or service.

iii) It supplies co-ordinated support for products so that they will win sales orders in a competitive
marketplace.

iv) It offers a means of integrating manufacturing into the other functional areas of the business.

v) It provides a means of ensuring the competitiveness of manufacturing operations so that they are the
equal of competitors' capability.

Your Answer:

i) and iii)

Correct. For other reasons why operations are important to strategy refer to section 9.1.1 of the
book.
3.
Correct Three general trends have shaped the environment affecting the operations function. Which of the
following is not one of them?

Your Answer:

Changes to health and safety legislation

Correct. This is not one of the major influences on operations management.
4.

Incorrect Discontinuities in technological change represent radical breaks with the technologies of
the past and are difficult to predict. What two phases characterise the strategic response of firms after
such a break, according to Strebel?

Your Answer:

The analysis and response phases

Correct Answer:

The development and consolidation (or cost reduction) phases

No. You seem to be thinking logically but this is not the correct answer. Refer to section 9.2.1 of
the book.
5.

Correct Which Japanese company is widely credited with development of such manufacturing techniques
as flexible manufacturing, Kaizen and Kanban?

Your Answer:

Toyota
Correct. Toyota's legendary Taiichi Ohno was the brains behind many brilliant advancements in
manufacturing processes that were adopted by many companies worldwide. See Case 9.2 in the book.
6.

Incorrect What does 'Kaizen' mean?

Your Answer:

It is the Japanese word for total quality management (TQM)

Correct Answer:

Continuous improvement
No. Kaizen is related to TQM but the latter involves much more. Read Case 9.2 in the book.
7.

Incorrect Operations strategy faces two major structural constraints - what are they?

Your Answer:

Operations resources are highly specialised and depreciate rapidly

Correct Answer:
Operations resources take time to plan and build and are expensive to change
No. Although these points may apply to some machines, they will not apply to others. See section
9.3.1 of the book.
8.

Incorrect Which of the following is not one of the ways operations can contribute to competitive
advantage?

Your Answer:

Market adaptability
Correct Answer:

Identifying new product opportunities

Incorrect. This is one of the ways discussed in section 9.3.2 of the book.
9.

Correct Effective operations strategy depends on strong links with another functional area. Which is it?

Your Answer:

Marketing
Correct. This interface is crucial to ensure consumer needs are translated into efficiently
manufactured products. See section 9.3.2 of the book, especially the section on 'The link between
manufacturing and marketing'.
10.

Incorrect Which of the following are the key issues to consider when devising a manufacturing
strategy?

Your Answer:

Quality, cost, competitiveness, benchmarking and flexibility

Correct Answer:

Factory location, processes, capacity, infrastructure and links with other functions
No. However, these are all important issues to consider as part of the implementation process to
ensure competitive advantage is designed into the system. See section 9.4.3 of the book.
11.

Incorrect What is meant by the term 'lean thinking'?

Your Answer:

It is an old-fashioned approach to operations based on outmoded ideas that lack the sophistication need
for managing modern complex manufacturing
Correct Answer:

It is an approach to manufacturing that stresses the elimination of all activities that do not add value for
the customer
 No. This is nonsense. Refer to section 9.4.7 of the book.
12.

Incorrect Which of the following is not a key focus of the analysis of an organisation's operations?

Your Answer:

Supplier relationships
Correct Answer:

Quality management
No. This is one of the key areas discussed in section 9.4 of the book.
13.

Incorrect While most of this chapter of the book and indeed the research on operations focuses on
manufacturing of products, service operations account for a large proportion of gross domestic product in
the EU, Japan and USA. What is the actual proportion?

Your Answer:

60--64%
Correct Answer:

50--54%
It is climbing, but not to that level yet. See section 9.5 of the book.
14.

Incorrect Which of the following is not a distinguishing feature of a service?

Your Answer:

Heterogeneity
Correct Answer:

Tangibility
No. This is a problematic aspect of many services, i.e. they are difficult to standardise, because
they are so people dependent. See Table 9.2 in the book.
15.

Incorrect Who was it that claimed: 'There is no such thing as service industries. There are only
industries whose service components are greater or less than those of other industries. Everybody is in
service''?

Your Answer:

Taiichi Ohno
Correct Answer:

Theodore Levitt
No. He was too busy inventing new manufacturing processes to be writing for academic journals.
See section 9.5.3 of the book.
16.

Correct In analysing the operations contribution to corporate strategy, which of the following is not an
area that is looked into?

Your Answer:

Remuneration of employees
Correct. This is more of an issue for the human resource department and may only come into the
equation if motivation issues arise.
17.

Correct Hill (1993) listed six steps to achieving a successful operations strategy.

Your Answer:

False

Correct. The five steps he listed were:

Define corporate o

One measure of success for a firm is a high return on investment (ROI). Which of the following are NOT
characteristics of high-return-on-investment firms?

Your Answer:

high variety of product options

CORRECT.
2.

Correct A strategy is

Your Answer:

an action plan to achieve a mission.

CORRECT.
3.

Incorrect Which of the following is NOT one of the 10 strategic OM decisions listed in the text?

Your Answer:

quality
Correct Answer:

marketing
INCORRECT. This is one of the 10 strategic OM decisions.
4.

Correct SWOT analysis refers to

Your Answer:

strengths, opportunities, weaknesses, and threats.

CORRECT.
5.

Incorrect Which of the following is NOT an OM strategy/issue during the introduction stage of the
product life cycle?

Your Answer:

high production costs

Correct Answer:

long production runs

INCORRECT. This is present in the introductory stage.
6.

Incorrect Which of the following is NOT an OM strategy/issue during the growth stage of the
product life cycle?

Your Answer:

enhanced distribution
Correct Answer:

reducing capacity
INCORRECT. This is present during the growth stage.
7.

Incorrect An activity map

Your Answer:

has no relationship to competitive advantages.

Correct Answer:

links competitive advantage, critical success factors, and supporting activities together.
INCORRECT. It is an approach to identify critical success factors, and supporting activities.
8.

Correct Competing on differentiation is

Your Answer:

concerned with uniqueness.

CORRECT.
9.

Incorrect Competing on cost is

Your Answer:

concerned with reliability of scheduling.

Correct Answer:

based upon low-cost leadership.

INCORRECT. This is important for competing on response.
10.

Correct An international business is a firm that

Your Answer:

engages in international trade or investment.

CORRECT.
11.

Incorrect The difference between a multinational corporation (MNC) and an international business
is

Your Answer:

the international business has been in existence longer than the multi-national firm.
Correct Answer:

for the multinational firm, the business done outside the country is especially significant.
INCORRECT. Length of existence is irrelevant.
12.

Incorrect Which of the following international operations strategies involves a high degree of
centralization?

Your Answer:

multidomestic
Correct Answer:

global
INCORRECT. The multidomestic strategy has decentralized authority.
13.

Incorrect Which of the following international operations strategies uses decentralized authority
with substantial autonomy at each business?

Your Answer:

transnational
Correct Answer:

multidomestic
 INCORRECT. The transnational strategy exploits economies of scale.
14.

Incorrect Which of the following international operations strategies allows a firm to pursue all
three operations strategies?

Your Answer:

international
Correct Answer:

transnational
INCORRECT. The international strategy is the least advantageous, with little local
responsiveness and little cost advantage.
15.

Incorrect The stated purpose of NAFTA is

Your Answer:

gain membership in the WTO.

Correct Answer:

phase out all trade and tariff barriers among Canada, Mexico, and the U.S.
INCORRECT. The WTO is a separate entity.
16.

Correct Which country is NOT a member of the EU?

Your Answer:

Uruguay
CORRECT.
17.

Incorrect An operations manager would probably make the decision to lower productive capacity
for a product entering which phase of the product life cycle?

Your Answer:

growth
Correct Answer:

decline
INCORRECT. Demand i

Chapter 1: Multiple Choice Questions

1. In business, there are several types of business organisation, what are these?
a. Private
b. Public and Voluntary
c. Voluntary and Private
d. Public, Private and Voluntary

2. Strategic decision making can take place at various levels of an organisation, what are
the three most common?
a. Operational, board, and industrially
b. Governmental, locally, and individually
c. Corporate, Business, and Functional
d. Board of Directors, Chief Executive, and Junior Management

3. Psychographic segmentation variables would typically include:

a. Eye colour, height, and weight variables
b. Lifestyle, personality, and status variables
c. Age, education, and income variables
d. Race, religion, and personality

4. PESTLE is an acronym for what?

a. Political, environmental, technological, legal, and environmental
b. Political, environmental, shareholding, technological, logistical, and e-marketing
c. Political, environmental, social, technological, legal, and environmental
d. Political, environmental, societal, technological, learning, and e-marketing

5. Zeithaml (1988) defined value as having four elements for a consumer, what are these?
a. Value is low price
b. Value is whatever I want in a product
c. Value is the quality I get for the price I pay and what I get for what I give
d. All of the above

6. The business model canvas describes an organisation’s or a product’s what?

a. Value proposition, infrastructure, customers, and finances
b. Marketing Plan
c. Value proposition, infrastructure, and markets
d. All of the above

7. Michael Porter (1985) identified six stages in the analysis of a business organisation’s
value proposition which are supported by the organisation’s infrastructure, what answer
best describes an organisations infrastructure?
a. Human resource management, technology development, purchasing, and
procurement
b. Human resource management, and finance
c. Human resource management, marketing, capital
d. Human resource management, technology development, sales, and research

8. Stewart (1967) noted there to be various types of managers, how many types were
identified?
a. 4
b. 7
c. 1
d. 5

9. Henry Mintzberg (1973) identified three categories that his ten identified management
roles fell into, what were these?
a. Informational, interpersonal and decisional
b. Strategic, functional, and operational
c. Team, and individual
d. None of the above

10. How might the size of a business be best measured?

a. Number of employees, and overall gross profit
b. Number of outlets or business units and market value
c. Total revenue and capital investment
d. All of the above

Chapter 2: Multiple Choice Questions

1. Which cities have historically stood out as birthplaces of renewal?

a. Athens London, Paris, Berlin, NYC, Florence
b. Paris, London, Madrid, Vienna, Florence, Athens
c. Athens, Florence, London, Vienna, Paris, Weimar
d. Weimar, Paris, Edinburgh, Florence, Milan, Athens

2. Which factor is NOT part of the Elite view of creativity?

a. Having a rare talent
b. Being teachable
c. A solitary process
d. Always being inspired
3. Which one of Nature’s creations was not turned into a human innovation?
a. The Leaf or Solar Panel
b. The Brain or Computer Circuit
c. The Voice or Microphone
d. Birds or Music

4. Which of these are the five steps of creative thought?

a. Preparation, incubation, insight, evaluation, elaboration
b. Preparation, internalisation, insight, evaluation, elaboration
c. Preparation, incubation, reviews, evaluation, elaboration
d. Preparation, incubation, insight, feedback, elaboration

5. How might an opportunity for innovation emerge?

a. New products, markets, processes, and solutions
b. Political and regulatory shifts, demographic change
c. Improvements to the value chain, supply chain and revenue model
d. All of the above

6. Which of these is NOT part of the Developmental view of creativity?

a. A group process
b. Being teachable
c. That it is within all professions
d. Great works of art

7. Which theorist suggested that an entrepreneur is a special person bringing about

change?
e. Dimov (2011)
f. Bygrave (2003)
g. Schumpeter (1934)
h. Sarasvathy (2001)

8. Which of these is NOT a definition of the entrepreneur?

a. Technical Expert
b. Risk Taker
c. Leader
d. Capitalist

9. Which of these numberings of entrepreneurial process models is wrong?

a. Static Frameworks (11)
b. Stage Models (12)
c. Process Dynamic Models (18)
d. Quantification Sequences (1)

10. Which is NOT one of Sarasvathy’s (2001) five principles of effectuation?

a. The bird-in-hand principle,
b. The crazy-quilt principle
c. The lemonade principle
d. The planning principle

Chapter 3: Multiple Choice Questions

1. When you make a decision to run your business as a sole trader, this means:
a. the business is incorporated
b. the business is unincorporated
c. you are employed by the business
d. your business assets are legally separate from your personal assets

2. In relation to a partnership in Scotland under the Partnership Act 1890, which of the
following is untrue?
a. the partnership is formed by incorporation
b. the partnership is a legal person
c. the partnership is formed by agreement
d. the partnership needs a minimum of 2 persons

3. In a partnership under the Partnership Act 1890, the partners:

a. have limited liability for the obligations of the partnership
b. have joint liability for the obligations of the partnership
c. have joint and several liability for the obligations of the partnership
d. have no liability for the obligations of the partnership

4. In a limited liability partnership under the Limited Liability Partnerships Act

2000, which of the following statements best describes the LLP:
a. there must be at least one general partner
b. LLPs are formed by agreement between the partners
c. all partners have limited liability
d. the LLP is only available for professionals such as accountants and solicitors and is not
suitable for business

5. The concept of limited liability in relation to a company means:

a. the company is liable to a limited extent for its debts and obligations
b. the members are liable to a limited extent for its debts and obligations
c. when necessary, the company has the right to demand that further capital be contributed
by members
d. if a company goes into liquidation before a member has paid for his shares in full,
liability to pay for them ceases at that point

6. Which of the following is not a difference between a public and a private limited
company?
a. the name of a public company must end in “public limited company” or “plc,” while
the name of a private company (other than an unlimited company) ends in “limited” or
“Ltd”
b. a public company must have at least two directors while a private company only needs
one
c. a public company has to have a minimum issued share capital of £50,000, whereas a
private company does not, provided it issues at least one share
d.a public company must have its shares listed on the Stock Exchange, whereas a
private company does not

7. Which of the following is not an attribute of the legal personality of a registered

company?
a.it can contract with outside parties and with its own members
b.it is liable for its own obligations like any other person
c.its major shareholders and directors cannot be employees of it
d.it has perpetual succession

8. In the case of Salomon v Salomon & Co Ltd, which of the following statements is
untrue?
a. the House of Lords held that as Salomon founded the company, he had to ensure
that the company had sufficient money to pay its creditors
b.the House of Lords held that Salomon & Co Ltd was a separate legal person from
Salomon
c.the House of Lords held that provided there is no fraud, once a company had been
incorporated, the motives of the incorporators in forming it are irrelevant
d.this is a case in which the House of Lords did not pierce the veil of incorporation

9. In relation to the similarities and differences between fraudulent trading and wrongful
trading, which of the following is untrue?
a.both can arise where the directors have allowed the company to trade on and accept
further orders when it is insolvent, and therefore unlikely to be able to deliver the goods
or services
b.intent to defraud creditors needs to be proved for fraudulent trading, while trading in
the knowledge that the company cannot avoid insolvency is sufficient for wrongful
trading
c.wrongful trading has replaced fraudulent trading, which is no longer part of the
law
d.both can result in the directors being held personally liable to contribute in the
liquidation of the company

10. In the case of Gilford Motor Co Ltd v Horne, which of the following statements is
untrue?
a.the case is an example of piercing the veil of incorporation
b.Horne’s company was held by the court to be a sham company
c.Horne’s company was held to be subject to the same contractual provisions as Horne
was himself
d. The decision in Gilford Motor Co Ltd v Horne was overruled by the Supreme
Court in Prest v PetrodelResources Ltd

Chapter 4: Multiple Choice Questions

1. Which of the following is NOT a test used by the courts to establish whether a person
is an employee?
a. Integration Test
b. Mutuality of Obligation Test
c. Agency Test
d. Control Test

2. Which of the following is NOT an automatically unfair reason for dismissing an

employee?
a. Declining to sign a workforce agreement
b. Not being able to carry out a task
c. Pregnancy
d. Taking Maternity leave

3. How long must a person be employed for to qualify for unfair dismissal?
a. 1 year
b. 2 years
c. 3 years
d. 4 years

4. What is the most common remedy for unfair dismissal?

a. Reinstatement
b. Re-engagement
c. Compensation
5. What is the absolute maximum basic compensatory award for unfair dismissal?
a. £11,400
b. £12,920
c. £13,100
d. £13,920

6. Which of the following is NOT a situation in which an employer can make an

employee redundant?
a. The business ceases to continue trading
b. A particular factory of a company is closed down due to downsizing
c. An employer buys a new machine that renders an employee unneeded
d. Employees are doing their job at too slow a pace

7. If a claim for unfair dismissal is lodged, where does the onus of proof lie?
a. With the employer
b. With the employee
c. With the Employment Tribunal

9. Kelly v Trusthouse Forte Plc is the leading case for which aspect of employment
law?
a. Redundancy
b. Potentially fair reasons for unfair dismissal
c. The ‘mutuality of obligation’ test for employment status

9. Which of the following is NOT a potentially fair reason for unfair dismissal?
a. Incompetence
b. Employee falls pregnant
c. Misconduct
d. Illegality

10. What is the maximum amount of time an employee has to lodge a claim for
redundancy payment?
a. 6 months
b. 9 months
c. 1 year
d. 2 years

Chapter 5: Multiple Choice Questions

1. Which of the following terms refers to research that has been undertaken previously
for a purpose other than the current research project?
a. Primary
b. Secondary
c. Market
d. Triangulation

2. Which of the following is NOT a major component of research design?

a. Report Writing
b. Sampling method
c. Data analysis
d. Survey method

3. Which of the following is NOT a qualitative research technique?

a. Focus groups
b. Projective techniques
c. Experimentation
d. Ethnography

4. Which of the following statements refers to a common reason for using qualitative
methods?
a. Provides insight
b. Generalisable findings
c. Large samples used
d. Spotting trends

5. Which of the following terms describes the sampling method that ensures that
everyone form the population has an equal chance of being selected?
a. Qualitative
b. Non-probability
c. Quantitative
d. Probability

6. Which of the following terms refers to a list of the whole population under study?
a. Convenience list
 b. Quota
c. Sampling frame
d. Cluster

7. Which of the following terms refers to the practice of trying to get charity donations
whilst pretending to do market research?
a. Sugging
b. Snowballing
c. Open ended question
d. Frugging

8. As part of a survey you have decided to stop people in a shopping mall. Which terms
best describes your sampling method?
a. Quota sampling
b. Probability sampling
c. Random sampling
d. Convenience sampling

9. Which of the following statements best defines what is involved in marketing

research?
a. Using all firms of market, opinion and social research
b. Looking at the industry behaviour
c. Obtaining relevant information so that management can make better informed
decisions
d. Collecting and analysing data from a census or sample of individuals

10. Which of the following statements best describes the management problem when
the research question is “What are the reasons for sales not meeting our expectation?”?
a. Sales at our new store are lower than expected
b. Customers are bored with our range
c. Customers are doing more of their shopping on line
d. Disposable income is going down

Chapter 6: Multiple Choice Questions

1. Which of the following statements most accurately describes the marketing mix?
a. A series of business decisions that aid selling a product
b. A composite analysis of all the macro environmental factors
c. The relationship between a business and its competitors
d. A blending of four strategic elements to satisfy specific markets
2. Which of the following terms best describes the value created by an organisation when
it tries to keep its existing customers?
a. Price value
b. Relationship Value
c. Performance value
d. Emotional Value

3. Which of the following statements explains the process of psychographic segmentation?

a. The qualitative element of geodemographic analysis
b. Grouping people according to their values, interests and lifestyles
c. Grouping people according to the amount they buy
d. Considering a customer’s psychological weaknesses when selling them products.

4. When segmenting a market the company is aiming for

a. Segment heterogeneity and member homogeneity
b. Segment homogeneity and member heterogeneity
c. Segment homogeneity and member homogeneity
d. Segment heterogeneity and member heterogeneity

5. Which of the following statements describes the identification and choosing a group of
customers for a product?
a. Positioning
b. Segmentation
c. Targeting
d. Differentiation

6. Which of the following promotional methods is most likely to be used when trying to
influence shareholders to invest in a business?
a. Personal Selling
b. Advertising
c. Email
d. Public Relations

7. Which of the following terms best describes a product such as a hairdryer?

a. Fast moving consumer good.
b. Durable good
c. Luxury good
d. Investment good
8. Which of the following statements refers to choosing to sell a product in as many outlets
as possible?
a. Exclusive distribution
b. Direct distribution
c. Intensive distribution
d. Selective distribution

9. Which of the following methods of setting budgets sees marketing as an investment?

a. Competitor matching
b. Percentage of sales
c. Affordability
d. Objective and task

10. Which of the following best describes the strategy of pricing a product low in order to
gain early market share
a. Skimming
b. Customer related pricing
c. Penetration Pricing
d. Cost focus Pricing

Chapter 7: Multiple Choice Questions

1. The HRM function can be carried out at two levels namely:

a. Reactive and Strategic
b. Proactive and Strategic
c. Operational and Strategic
d. Technical and Operational

2. Objectives of the HRM function, according to Torrington et al. (2005), include the
following except:
a. Change management
b. Performance management
c. Administrative objective
d. Employee ownership

3. The first step in the recruitment process is:

a. Job analysis
b. Interviews
c. Training and development
d. Induction

4. Techniques used during the selection process include the following except:
a. Psychometric tests
b. Aptitude tests
c. Assessment centres
d. Experimental tests

5. Which of the following is not an employment legislation?

a. Education Act 2011
b. Equality Act 2010
c. Equal Pay Act 1970
d. Sex Discrimination Act 1975

6. What is the current minimum pay in the UK for those aged between 18 to 20?
a. £5.13
b. £2.73
c. £3.79
d. £6.50

7. Which of the following characteristics are protected by the Equality Act 2010?
a. Age
b. Disability
c. Race
d. All of the above

8. External influences on HRM include the following except:

a. Demographic changes
b. Legislative changes
c. Personnel changes
d. Economic changes
9. Aside from the HR manager, who else can be involved in Health and Safety?
a. Employees
b. Line management
c. Top-level management
d. All of the above

10. When was the Equality Act established?

a. 1995
b. 2012
c. 2010
 d. 1975

Chapter 8: Multiple Choice Questions

1. Work-life balance practices concern:

a) How work is performed
b) How work hours are arranged
c) Who does certain work
d) Maternity and Paternity leave

2. Why are organisations expressing an increasing interest in work-life balance?

a) Changing labour demographics
b) Changing consumer demographics
c) Changing technology
d) Changing UK Government legislation

3. Which of these is not a work-life balance practice?

a) Condensed working hours
b) Homeworking
c) Part-time working
d) Overtime

4. Which of these is not a reason for a business to use work-life balance practices?
a) Greater staff retention
b) Increase discretionary effort made by employees
c) Higher employee productivity
d) It is required by UK law

5. Which of these is not a reason why someone may not wish to take a work-life
balance practice?
a) Fear of having ‘special privileges’
b) Lack of career progression
c) A new addition to the family
d) Work intensification

6. Which of these is a barrier to the implementation of homeworking?

a) Employees do not want to work from home
b) Management fear homeworkers may be ‘slackers’
c) Employees perform best in an office environment
d) Technology has not progressed enough to allow homeworking
 7. Which reason for requesting a work-life balance practice is viewed most favourably?
a) For childcare purposes
b) For pet care purposes
c) For leisure purposes
d) For parent care purposes

8. Work-life balance practices are usually taken by:

a) Women without children
b) Men with children
c) Women with children
d) Men without children
9. Why do women often have the responsibility for childcare?
a) Men are not responsible enough to care for a child
b) The feminist movement opened the door for women employment but the delegation
of domestic responsibilities has changed little
c) Women want to care for children more than men
d) Men are never afforded a work-life balance practice

10. Work-life balance practices interrelate with…:

a) Gender
b) Class
c) Ethnicity
d) All of the above

Chapter 9: Multiple Choice Questions

1. What does the Porter’s five forces aim to achieve?

a. An external analysis on competition
b. A new marketing strategy
c. An internal shift of human resource
d. A review of supply chain management

2. The key five forces examine rivalry among firms, potential entrants, buyers;
a. Customers
b. Employers and employees
c. Substitutes and supplies
d. Import and Export

3. What benefit is derived from competitive rivalry?

a. Price war
b. Differentiation
c. Alliances
d. Higher marketing budgets

4. Name one of the six barriers of entry as described by Porter (1979):

a. Economies of scale
b. Extensive product line
c. Internationalisation
d. Strong customer service

5. The buying power has the ability to:

a. Supply own goods
b. Increase profits in the industry
c. Reduce the selling price
d. Influence the share price

6. One determinant which allows the supplier to gain selling power is:
a. Easy accessibility
b. High substitutes
c. Threat of entry
d. Buyer switching cost

7. Name one criticism that can be argued against Porters five forces:
a. Cannot generalised results from a singular point in time
b. The model only can be applied to one industry
c. Some forces are more relevant than others
d. Product development is more important than competition

8. What do organisations need to adopt to overcome competition?

a. Relocation strategy
b. Creation of subsidiaries
c. Competitive strategy
d. Collusion

9. By adopting a cost leadership position, organisations will lack in:

a. Profit
b. Demand
c. Specialism
d. Mass Market
 10. What would a company have to offer in order to apply differentiation?
a. Unique Selling Point
b. Reduced cost
c. Multiple promotions
d. User engagement

Chapter 10: Multiple Choice Questions

1. Typically, production line lay out is suitable for…

a. low-variety high-volume manufacturing
b. big-variety low-volume manufacturing
c. big-variety high-volume manufacturing
d. low-variety low-volume manufacturing

2. Inoperations management any unnecessary travel is considered as?

a. No-value adding and needed
b. No-value adding and waste
c. Value adding and needed
d. Value adding and waste

3. Typically, functional/process layout is suitable for…

a. low-variety high-volume manufacturing
b. big-variety low-volume manufacturing
c. big-variety high-volume manufacturing
d. low-variety low-volume manufacturing

4. Which shop floor lay out is suitable for medium batch manufacturing?
a. Group technology/ cellular layout
b. Functional/process layout
c. Production/flow line layout

5. Mass service could be offered when…

a. the volume is low and the variety is low
b. the volume is high and the variety is high
c. the volume is high and the variety is low
d. the volume is low and the variety is high
6. Physical distribution management involves management of good and services to first
and second tier customers regarding their:
a. Inventory levels
b. Inventory locations
c. Warehousing
d. Physical distribution
e. All the above

7. The time frame which operational processes underpin the organisational

competitiveness:
a. Future.
b. Medium.
c. Short to medium.
d. Past.

8. In operations management we can help the organisation to achieve its aims and
objectives by managing its processes:
a. Through flexibility and agility
b. Through efficiency and effectiveness
c. Through standardisation and lean
d. Through indicators and clear strategy

9. Measuring performance of processes could happen through indicators. Supplier on-time

delivery could affect customer satisfaction and it is measured from various companies
to track performance. What kind of indicator do you think that supplier on-time delivery
is for business processes?
a. Leading indicator
b. Lagging indicator
c. Coincident indicator

10. Which model is measuring the Total Quality Management (TQM) in Japan?
a. Malcolm Baldridge
b. Deming
c. EFQM

Chapter 11: Multiple Choice Questions

1. Which statement best describes a supply chain

a. A chain of interconnected companies
b. A chain of interdependent companies
c. A network of competing companies
d. A network of interdependent and interconnected companies competing as one

2. Theaim of supply chain management is to:

a. Manage the storage and movement of materials in the supply chain
b. Reduce total logistics costs
c. Manage suppliers so as to minimise the cost of procurement
d. Enhance value in the final marketplace and maximise profit for the whole supply
chain

3. Products that are functional in nature need a supply chain that is:
a. Lean and focussed on market responsiveness
b. Agile and cost efficient
c. Both agile and lean as required
d. Lean and physically efficient

4. The lead-time gap is best described as:

a. The time it takes to satisfy a customer order
b. The total supply chain lead-time from extraction of raw materials to consumption by the
end-user
c. The time it takes to make and distribute a product to a customer
d. The time difference between the total supply chain lead-time and the customer
order cycle time

5. Which strategies can companies adopt to improve the match between supply and
demand?
a. Implement a robust approach statistical forecasting and optimise inventory control
b. Introduce cross-functional collaborative planning such as Sales & Operations Planning
(S&OP)
c. Implement agile supply chain strategies such as postponement, so that we can be less
dependent on a forecast of product sales
d. All of the above

6. What is one major fear of managers when they decide to outsource their logistics
function?
a. The achievement of cost savings
b. Transfer of fixed costs and capital investments into variable costs and expenditure
c. Increasing the scale and scope of operations
d. Loss of operational control and reduced contact with customers

7. What are the relationship risks that occur when outsourcing logistics activities to
external suppliers?
a. Poor ability to train and educate employees
b. Reduction of customer satisfaction
c. Increasing costs for maintaining assets and equipment
d. Information asymmetry and goal incongruences

8. What are firms called that provide advanced and integrated supply chain solutions?
a. Freight forwarders
b. Third-party logistics providers
c. Transportation carriers
d. Fourth-party logistics providers

9. What types of costs need to be considered in making global sourcing decisions?

a. Transportation costs
b. Production costs
c. Inventory carrying costs
d. All of the above

10. What challenge do managers face when making re-location and sourcing decisions?
a. Act local and think local
b. Think global and act global
c. Think local and act global
d. Act local and think global

Chapter 12: Multiple Choice Questions

1. Corporate governance is a form of ______?

A: External regulation
B: Self-regulation
C: Government control
D: Charitable action

2. CSR stands for _____?

A: Company Social Responsibility
B: Corporate Social Rights
C: Corporate Social Responsibility
D: Company Social Rights

3. In what year was Bowen’s seminal contribution to CSR research published?

A: 1951
B: 1952
C: 1953
D: 1954

4. Highlight Carroll’s (1979) four indicators of corporate social performance.

A: Economic, Legal, Environmental, Philanthropic.
B: Economic, Legal, Ethical, Philanthropic.
C: Environmental, Legal, Ethical, Philanthropic.
D: Economic, Local, Ethical, Philanthropic.

5. Which of the following is not one of Dahlrud’s (2008) dimensions of CSR?

A: Legal
B: Voluntariness
C: Stakeholder
D: Social

6. CSR and corporate governance represent a __________ between business and

society.
A: Social climate
B: Special contract
C: Special climate
D: Social contract

7. CSR offers a ______ proposition for organisations to gain competitive

advantage?
A: Brand
B: Value
C: Unique
D: Sales

8. Which organisation was not discussed in this chapter?

A: Apple
B: Mercedes
C: Cadbury’s
D: Kellogg’s

9. Which author was not discussed in this chapter?

A: Zadek (2004)
B: Davis (1960)
C: Griseri & Seppala (2010)
D: Mintzberg (1973)
9. Who are the stakeholders of the business who are concerned with CSR?
A: Governments, employees, communities, partners, competitors
B: Employees, research agencies, governments, communities, trade organisations
C: Suppliers, partners, employees, communities, investors, education institutions
D: All of the above

Strategic Management MCQ: Multiple Choice Questions and Answers on Strategic Management

1. The fundamental purpose for the existence of any organization is described by its

a. policies

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b. mission

c. procedures

d. strategy

Ans. b

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2. The fundamental purpose of an organization’s mission statement is to

a. create a good human relations climate in the organization

b. define the organization’s purpose in society

c. define the operational structure of the organization

ADVERTISEMENTS:

d. generate good public relations for the organization

Ans. b

3. The acronym SWOT stands for

a. Special Weapons for Operations Timeliness

ADVERTISEMENTS:

b. Services, Worldwide Optimization, and Transport

c. Strengths Worldwide Overcome Threats

d. Strengths, Weaknesses, Opportunities, and Threats

Ans. d

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4. Which of the following is not a characteristic of strategic management that makes it different from
other types of management?

a. It is interdisciplinary.

b. It has an external focus.

c. It has an internal focus.

ADVERTISEMENTS:

d. It concerns the present direction of the organization.

Ans. d

5. Which of the following is an issue considered in developing corporate strategies?

a. What business(es) are we in?

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b. What direction are we going?

c. What resources do we have to implement our strategies?

d. What businesses are we in and what to do with those businesses?

Ans. c

6. Which of the following is NOT a major element of the strategic management process?
a. Formulating strategy

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b. Implementing strategy

c. Evaluating strategy

c. Assigning administrative tasks

Ans. d

7. Competitive advantage can best be described as:

a. increased efficiency.

ADVERTISEMENTS:

b. what sets an organization apart.

c. a strength of the organization.

d. intangible resources.

Ans. a

8. ________________ is the foundation of blue ocean strategy.

a. Innovation

ADVERTISEMENTS:

b. Value creation

c. Value innovation

d. value cost trade-off

Ans. c

9. The various organizational routines and processes that determine how efficiently and effectively the
organization transforms its inputs into outputs are called:

a. strengths.
ADVERTISEMENTS:

b. core competencies.

c. capabilities.

d. customer value.

Ans. b

10. When defining strategic management the most important thing to remember is that it is:

a. Not as easy as you think

ADVERTISEMENTS:

b. Mainly the province of senior managers

c. A living evolving process

d. More conceptual than practical

e. A way of determining responsibilities

Ans. c

11. An organisation’s strategy:

a. remains set in place longer than the mission and objectives

b. generally forms over a period of time as events unfold

c. tends to be formed at the same time the mission is developed and objectives are formulated

d. is usually conceived at a single time when managers sit down and work out a comprehensive strategic
plan for the next 3-5 years

Ans. b

12. The primary focus of strategic management is:

a. strategic analysis

b. the total organisation

c. strategy formulation
d. strategy implementation.

Ans. b

13. Which of the following is not an advantage of strategic management?

a. It provides organisations with a clearer sense of direction and purpose

b. It helps improve the political, economic, social and technological environment of the organisation

c. It helps orientate management decisions to relevant environmental conditions

d. It helps organisations be proactive rather than reactive

Ans. b

14. Which of the following defines what business or businesses the firm is in or should be in?

a. Business strategy

b. Corporate strategy

c. Functional strategy

d. National strategy

Ans. b

15. Which of the following defines how each individual business unit will attempt to achieve its mission?

a. Business strategy

b. Corporate strategy

c. Functional strategy

d. National strategy

Ans. a

16. Which of the following focuses on supporting the corporate and business strategies?

a. Competitive strategy

b. Corporate strategy

c. Operational strategy

d. National strategy
e. Mission strategy

Ans. c

17. Which one of the following is not a primary task of strategic managers?

a. Establishing strategic objectives

b. Developing the steps to follow in implementing operational level plans

c. Defining the business and developing a mission

d. Developing a strategy

e. Implementing and evaluating the chosen strategy

Ans. b

18. The task of strategy choice involves:

a. developing plans and activities which will improve the organisation’s performance and competitive
position

b. determining how the organisation can be more market and efficiency oriented

c. monitoring whether the organisation is achieving good financial performance

d. keeping the organisation free of debt

Ans. a

19. Which one of the following is at the core of strategic management?

a. Choosing which organisational objectives to focus on

b. Being alert for opportunities to change work responsibilities

c. Adapting the organisation to a changing external environment

d. Choosing whether to make decisions autocratically or on the basis of participation

Ans. c

20. The corporate level is where top management directs:

a. all employees for orientation

b. its efforts to stabilize recruitment needs

c. overall strategy for the entire organization

d. overall sales projections

Ans. c

21. The three organizational levels are:

a. corporate level, business level, functional level

b. corporate level, business unit level, functional level

c. corporate strategy level, business unit level, functional level

d. corporate strategy level, business level, specialist level

Ans. a

22. Which of the following is an example of competing on quick response?

a. a firm produces its product with less raw material waste than its competitors

b. a firm offers more reliable products than its competitors

c. a firm’s products are introduced into the market faster than its competitors’

d. a firm’s research and development department generates many ideas for new products

Ans. c

23. Which one of the following is NOT included in the Porter’s Five Forces model:

a. Potential development of substitute products

b. Bargaining power of suppliers

c. Rivalry among stockholders

d. Rivalry among competing firms

Ans. c

24. What is meant by the term ‘Stakeholder’?

a. A person who is not related with a business.

b. A person who is related with a business.

c. A person who owns a business.

d. A person who purchases the shares of a business.

Ans. b
25. Of the following, which one would NOT be considered one of the components of a mission
statement?

a. The target market for XYZ is oil and gas producers as well as producers of chemicals.

b. XYZ shall hire only those individuals who have with sufficient educational levels so as to be of benefit
to our customers

c. The customers of XYZ shall include global and local consumers of gas and oil products and domestic
users of nontoxic chemicals

d. The technologies utilized by XYZ shall focus upon development of alternative sources of gas and oil so
as to remain competitive within the industry

Ans. b

26. The strategic management process is

a. a set of activities that will assure a temporary advantage and average returns for the firm.

b. a decision-making activity concerned with a firm’s internal resources, capabilities, and competencies,
independent of the conditions in its external environment.

c. a process directed by top-management with input from other stakeholders that seeks to achieve above-
average returns for investors through effective use of the organization’s resources.

d. the full set of commitments, decisions, and actions required for the firm to achieve above-average
returns and strategic competitiveness..

Ans. d

27. The goal of the organization’s__________ is to capture the hearts and minds of employees, challenge
them, and evoke their emotions and dreams.

a. vision

b. mission

c. culture

d. strategy

Ans. a

28. A firm’s mission

a. is a statement of a firm’s business in which it intends to compete and the customers which it intends to
serve.

b. is an internally-focused affirmation of the organization’s financial, social, and ethical goals.

c. is mainly intended to emotionally inspire employees and other stakeholders.

d. is developed by a firm before the firm develops its vision.

Ans. a

29. The environmental segments that comprise the general environment typically will NOT include

a. demographic factors.

b. sociocultural factors.

c. substitute products or services.

d. technological factors.

Ans. c

30. An analysis of the economic segment of the external environment would include all of the following
EXCEPT

a. interest rates.

b. international trade.

c. the strength of the U.S. dollar.

d. the move toward a contingent workforce.

Ans. d

31. Product differentiation refers to the:

a. ability of the buyers of a product to negotiate a lower price.

b. response of incumbent firms to new entrants.

c. belief by customers that a product is unique.

d. fact that as more of a product is produced the cheaper it becomes per unit.

Ans. c

32. Which of the following is NOT an entry barrier to an industry?

a. expected competitor retaliation

b. economies of scale

c. customer product loyalty

d. bargaining power of suppliers

Ans. d

33. Switching costs refer to the:

a. cost to a producer to exchange equipment in a facility when new technologies emerge.

b. cost of changing the firm’s strategic group.

c. one-time costs suppliers incur when selling to a different customer.

d. one-time costs customers incur when buying from a different supplier.

Ans. d

34. New entrants to an industry are more likely when (i.e., entry barriers are low when…)

a. it is difficult to gain access to distribution channels.

b. economies of scale in the industry are high.

c. product differentiation in the industry is low.

d. capital requirements in the industry are high.

Ans. c

35. Suppliers are powerful when:

a. satisfactory substitutes are available.

b. they sell a commodity product.

c. they offer a credible threat of forward integration.

d. they are in a highly fragmented industry.

Ans. c

36. The highest amount a firm can charge for its products is most directly affected by

a. expected retaliation from competitors.

b. the cost of substitute products.

c. variable costs of production.

d. customers’ high switching costs.

Ans. b

37. All of the following are forces that create high rivalry within an industry EXCEPT

a. numerous or equally balanced competitors.

b. high fixed costs.

c. fast industry growth.

d. high storage costs.

Ans. c

38. According to the five factors model, an attractive industry would have all of the following
characteristics EXCEPT:

a. low barriers to entry.

b. suppliers with low bargaining power.

c. a moderate degree of rivalry among competitors.

d. few good product substitutes.

Ans. a

39. Internal analysis enables a firm to determine what the firm

a. can do.

b. should do.

c. will do.

d. might do.

Ans. a

40. An external analysis enables a firm to determine what the firm

a. can do.

b. should do.

c. will do.

d. might do.

Ans. d
41. ________ is/are the source of a firm’s________, which is/are the source of the firm’s ________.

a. Resources, capabilities, core competencies

b. Capabilities, resources, core competencies

c. Capabilities, resources, above average returns

d. Core competencies, resources, competitive advantage

Ans. a

42. In the airline industry, frequent-flyer programs, ticket kiosks, and e-ticketing are all examples of
capabilities that are

a. rare.

b. causally ambiguous.

c. socially complex.

d. valuable.

Ans. d

43. Firms with few competitive resources are more likely

a. to not respond to competitive actions.

b. respond quickly to competitive actions.

c. delay responding to competitive actions.

d. respond to strategic actions, but not to tactical actions.

Ans. c

44. Competitors are more likely to respond to competitive actions that are taken by

a. differentiators.

b. larger companies.

c. first movers.

d. market leaders.

Ans. d

45. What can be defined as the art and science of formulating, implementing and evaluating cross-
functional decisions that enable an organization to achieve its objectives?
a. Strategy formulation

b. Strategy evaluation

c. Strategy implementation

d. Strategic management

e. Strategic leading

Ans. d

46. Which of the following is not a cultural product?

a. Rites

b. Emotions

c. Rituals

d. Sagas

e. Symbols

Ans. b

47. Which individuals are most responsible for the success and failure of an organization?

a. Strategists

b. Financial planners

c. Personnel directors

d. Stakeholders

e. Human resource managers

Ans. a

48. Which of the following is an element of a firm’s remote external environment?

a. Competition

b. Political agencies

c. Suppliers

d. Trade union
Ans. b

49. Long-term objectives should be all of the following except:

a. measurable.

b. continually changing.

c. reasonable.

d. challenging.

e. consistent.

Ans. b

50. What are guides to decision making?

a. laws

b. rules

c. policies

d. procedures

e. goals

Ans. c

51. According to Greenley, strategic management offers all of these benefits except that

a. it provides an objective view of management problems.

b. it creates a framework for internal communication among personnel.

c. it encourages a favorable attitude toward change.

d. it maximizes the effects of adverse conditions and changes.

e. it gives a degree of discipline and formality to the management of a business.

Ans. d

52. 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.

e. on community news bulletins

Ans. b

53. Which group would be classified as a stakeholder?

a. Communities

b. Banks

c. Suppliers

d. Employees

e. All of these

Ans. e

54. The process of performing an external audit needs to include:

a. only top level managers, as it’s a planning function.

b. as many managers and employees as possible.

c. primarily front-line supervisors

d. between 15 to 20 managers for it to be valid

e. stockholders and external government agencies

Ans. b

55. Which of the following is not a stage of strategy formulation techniques?

a. Formulation Framework

b. Matching stage

c. External factor evaluation

d. Decision stage

Ans. b

56. ST Strategies is an important strategy to

a. Match weakness with opportunities of the firm

b. Overcome external threats

c. Obtain benefit from its resources

d. Overcome its weakness and reducing threats

Ans. b

57. The immediate external environment includes:

a. Divisions

b. S. B. U. s

c. Competitors

d. Management

Ans. c

58. The________ comprises economic and social conditions, political priorities and technological
developments, all of which must be anticipated, monitored, assessed and incorporated into the executive’s
decision making.

a. Internal environment

b. Task environment

c. Operating environment

d. Societal environment

Ans. d

59. Strategic management involves the_______, directing, _______ and controlling of a company’s
strategy-related decisions and actions.

a. Financing; marketing

b. Planning; financing

c. Planning; organizing

d. Marketing; planning

Ans. c

60. A strategy is a company’s

a. Value statement
b. Pricing policy

c. Game Plan to outsmart competitor

d. Long-term objective

Ans. c

61. Strategy-formulation concepts and tools

a. Do not differ greatly for different size and type of organizations

b. Differ greatly for different size and type of organizations

c. Do not differ greatly for profit or nonprofit organizations but differ in small and large organizations

d. None of the mentioned options

Ans. a

62. Annual objectives

a. Are not critical to success

b. Serve as guidelines for action, directing and channeling efforts and activities of organization members

c. Are not important for employee motivation and identification

d. Do not provide a basis for organizational design

Ans. b

63. Annual objectives

a. Need not to be consistent

b. Should be easily achievable

c. Should be measurable

d. Should be confidential and not to be communicated throughout the organization

Ans. c

64. Which of the following resources is used by all organizations to achieve desired objectives?

a. Financial resources,

b. Physical resources,

c. Human resources
d. All of the mentioned options

Ans. d

65. Strategic management is

a. A pure science.

b. Based mainly on intuition.

c. Needed mainly when organizational performance falls.

d. Based on the use of quantitative and qualitative information.

Ans. d

66. Large-scale, future-oriented plans, for interacting with the competitive environment to achieve
company objectives refers to its

a. Strategy

b. Goals

c. Competitive analysis

d. Dynamic policies

Ans. a

67. Strategic issues require which level of management decisions?

a. Operative

b. Top

c. Front-line

d. Middle

Ans. b

68. Which of these basic questions should a vision statement answer?

a. What is our business?

b. Who are our employees?

c. Why do we exist?

d. What do we want to become?

Ans. d

69.________ is not part of an external audit.

a. Analyzing competitors

b. Analyzing financial ratios

c. Analyzing available technologies

d. Studying the political environment

Ans. b

70. Strategic management process activate in the sequence of_______

a. Environmental scanning, Strategy formulation, Implementation, control and evaluation

b. Strategy formulation, Environmental scanning, Implementation, control and evaluation

c. Environmental scanning, Strategy Implementation, formulation, control and evaluation

d. Strategy formulation, Implementation, control, evaluation, Environmental scanning

Ans. a

71. KAPKAL Power’s interested to achieve a 10 percent return on equity (ROE) in their core electric
utility, 14 percent ROE on water resource operations, and 15 percent ROE on support businesses. It is
_____________

a. Mission

b. Strategy

c. Objective

d. Policy

Ans. c

72. “A possible and desirable future state of an organization” is called:

a. Mission

b. Vision

c. Strategy implementation

d. None of above
Ans. b

73. Strategic decisions are based on what managers_____________, rather than on what they__________.

a. Know; forecast

b. React to; anticipate

c. Forecast; know

d. Compromise with; analyze

Ans. c

74. “To improve economic strength of society and function as a good corporate citizen on a local, state,
and national basis in all countries in which we do business”. This is a mission statement that contains:

a. Self-concept

b. Economic concern

c. Products or Services

d. Concern for Public Image

Ans. d

75. Strategic-management audit is known as:

a. Environmental scanning

b. Strategy formulation

c. Strategy control

d. Strategy evaluation

Ans. a

76. Forecasting tools can be broadly categorized into two groups. Those are:

a. Qualitative, Operational

b. Quantitative, Operational

c. Qualitative, Quantitative

d. Regression and time series analysis

Ans. c
77.____________ identifies a firm’s major competitors and their particular strengths and weaknesses in
relation to a sample firm’s strategic position.

a. Competitive Profile Matrix

b. External Factor Evaluation matrix

c. Internal Factor Evaluation Matrix

d. Boston consulting group matrix

Ans. a

78. Organizing means an identifiable group of people contributing their efforts towards the attainment of
same goal. It is important at the time of:

a. Environmental scanning

b. Strategy formulation

c. Strategy Implementation

d. Strategy evaluation

Ans. c

79. In a turbulent and competitive free enterprise environment, a firm will succeed only if it takes a(n)
_____________ stance towards change.

a. Reactive

b. Proactive

c. Anti-regulatory or anti-government

d. Vision and not mission

Ans. b

80. Which statement best describes intuition?

a. It represents the marginal factor in decision-making.

b. It represents a minor factor in decision-making integrated with analysis.

c. It should be coupled with analysis in decision-making.

d. It is better than analysis in decision-making.

e. It is management by ignorance.
Ans. c

81. What are the means by which long-term objectives will be achieved?

a. Strategies.

b. Strengths.

c. Weaknesses.

d. Policies.

e. Opportunities.

Ans. a

82. Which of these basic questions should a vision statement answer?

a. What is our business?

b. Who are our employees?

c. Why do we exist?

d. What do we want to become?

e. Who are our competitors?

Ans. d

83. When an industry relies heavily on government contracts, which forecasts can be the most important
part of an external audit.

a. economic

b. political

c. technological

d. competitive

e. Multinational

Ans. b

84.________ is not part of an external audit.

a. Analyzing competitors

b. Analyzing financial ratios

q. Analyzing available technologies

d. Studying the political environment

e. Analyzing social, cultural, demographic and geographic forces

Ans. b

85. Which individuals are most responsible for the success and failure of an organization?

a. Strategists

b. Financial planners

c. Personnel directors

d. Stakeholders

e. Human resource managers

Ans. a

86. Long-term objectives should be all of the following except:

a. Measurable.

b. Continually changing.

c. Reasonable.

d. Challenging.

e. Consistent.

Ans. b

87. What are guides to decision making?

a. laws

b. rules

c. policies

d. procedures

e. goals

Ans. c

88. Which group would be classified as a stakeholder?

a. Communities

b. Banks

c. Suppliers

d. Employees

e. All of the given options

Ans. e

89. Typically how many strategic decision levels are in the corporate decision-making hierarchy?

a. 3

b. 4

c. could be more than 5

d. 2

Ans. a

90. Which type of trend can be exemplified by the increasing numbers of two- income households in a
society?

a. Social

b. Economic

c. Cultural

d. Technological

Ans. b

91. External assessment is performed in which of the strategic management phase?

a. Strategy formulation stage

b. Strategy implementation stage

c. Strategy evaluation stage

d. All of the given options

Ans. a

92. Political variables have a significant effect on

a. Strategy formulation and implementation

b. Strategy formulation and evaluation

c. Strategy implementation and evaluation

d. Strategy formulation, implementation and evaluation

Ans. a

93. Strategic decisions ostensibly commit the firm for

a. 1 -2 years

b. The short term

c. one years

d. A long time, typically five years

Ans. d

94. Social responsibility is a critical consideration for a company’s strategic decision makers since

a. Stockholders demand it

b. The mission statement must express how the company intends to contribute to the societies that sustain
it

c. It increases a company’s profits

d. It helps make decisions

Ans. b

95. “The perfect search engine would understand exactly what you mean and give back exactly what you
want”, this statement is included in the mission statement of an online firm and is showing which one of
the following components?

a. Self-concept

b. Concern for public image

c. A declaration of attitude

d. Philosophy

Ans. b

96. Which of the following are signs of weakness in a company’s competitive position?
a. A return-on-equity is below 25% and earnings per share of less than Rs. 2.00

b. A price set by the firm higher than its rivals

c. A declining market share, poor product quality and few sales in market

d. Lower revenues and profit margin and narrow product line than the market leader

Ans. c

97. It directs at developing new products before competitors do at improving product quality or at
improving manufacturing processes to reduce costs.

a. Marketing

b. Opportunity analysis

c. Research and development

d. Management

Ans. c

98. “Identifying and evaluating key social, political, economic, technological and competitive trends and
events”. Which of the followings best describes this statement?

a. Developing an effective mission statement

b. Conducting an internal audit

c. Performing an external audit

d. Formulating strategy

Ans. c

99. What is the central purpose of strategic evaluation?

a. Evaluate effectiveness of strategy to achieve organisational objectives.

b. Evaluate effectiveness of control system to measure achievements.

c. Evaluate effectiveness of strategies to be implemented efficiently.

d. Evaluate effectiveness of the strategy implementation process.

Ans. a

100. Strategy evaluation at the_____________ level involves using specific performance measures-
qualitative and quantitative-for each functional area.
a. organizational

b. operational

c. functional

d. production

Ans. C

Decisions which are primarily focused on design activities are called:

Your Answer:

Infrastructural decisions
Correct Answer:

Structural decisions
No, that's not correct.
2.

Incorrect A possible move to commodity standardisation will occur at which stage of the product–
service life cycle?

Your Answer:

Introduction
Correct Answer:

Decline
No, that's not correct.
3.

Incorrect During the decline stage of the product–service life cycle, the number of competitors
will:

Your Answer:

Increase
Correct Answer:

Decline
No, that's not correct.
4.

Correct Market needs are largely met by which stage of the product–service life cycle?

Your Answer:

Decline
 Yes, that's correct.
5.

Incorrect For corporate banking, which of the following are likely to be key internal performance
objectives?

Your Answer:

Flexibility, cost, speed

Correct Answer:

Flexibility, quality, dependability

No, that's not correct.
6.

Correct Things which directly and significantly contribute to gaining business are termed:

Your Answer:

Order winning factors

Yes, that's correct.
7.

Incorrect The key virtues required for shaping strategy from the bottom up are:

Your Answer:

Employee involvement
Correct Answer:

All of the above

No, that’s not correct.
8.

Incorrect Another term for the bottom up perspective is the concept of:

Your Answer:

Group strategies
Correct Answer:

Emergent strategies
No, that's not correct.
9.

Correct The operations, marketing, product–service development departments will all need to consider
how best they should organise themselves. This is called:

Your Answer:

Functional strategy
 Yes, that's correct.
10.

Correct Decisions about what types of business the group wants to be in, what parts of the world it wants
to operate in, and how to allocate its cash between its various businesses, all relate to:

Your Answer:

Corporate strategy
Yes, that's correct.
11.

Incorrect Which of the following is true of the relationship between the content and the process of
strategy?

Your Answer:

Content influences process

Correct Answer:

They influence each other

No, that's not correct.
12.

Incorrect The set of specific decisions and actions which shape the strategy are known as:

Your Answer:

The tangibles of strategy

Correct Answer:

The content of strategy

No, that's not correct.
13.

Correct Which of the following decisions is NOT usually related to strategy?

Your Answer:

Decisions which move an organisation closer to its short-term goals

Yes, that's correct.
14.

Correct Which of the following performance objectives are key to Ryanair’s strategy?

Your Answer:

Cost and dependability

Yes, that's correct.
15.
Correct A model for comparing the gap between market requirements and achieved performance is:

Your Answer:

The Platts-Gregory procedure.

Yes, that's correct.