Department of Management Sciences (PUMBA) ‘MBA+ (AY: 2011-12), Reus Mid-Term Examinati [Business Polley & Strategic Management Inviiiators Sign ‘Section I~ Dhake sir Important Instructions 1. Write your rll no. on this page in the top right corner 2, Answer the Multiple Choice Questions inthe OMR sheet only 53, Retum back the question paper after the exams Marks Obtained: (Que: Answer the Multiple Choice Questions in the OME sheet given below: [15 marks] |. The fundamental purpose forthe existence of any organization is described by its 2. policies mission procedures strategy 2, Which of the following statements shout organizational missions i false? ‘4. They reflect company’s purpose bh. They indicate what a company intends to contribute 10 sociey. ‘They are formulated after strategies are known, ‘They define a company’s reason fr existence. ©, They provide guidance for funetional area missions {5 The fimdameatal purpose of an organization's mission statement is to 8, edie good human relations climate inthe orznization 1. define the organizations purpose in society ©. define the operational steicture ofthe organization {4 generate good public relations for the arsanivation ‘© define the functional areas required hy the organization 44. What is the recommended length of a effective mission statement? ‘a. One page . Less than 200 words One sentence of 10 0.20 words, There is no recommendation. Itcan be as long as the management wants 5. Alloftese are tae about a mission statement except that 44 itshould identify the customer 1 it shot identify the location of the firm's headquarters { itshould toll where the firm competes 4. it should stimulate and motivate ts roadors to action {6 Asan organization, which of these is trae about the original mission statoment? 3. It shoul not be changed bt should be changed with change in management. It should be changed when the firm's strategies change 4._ It should be changed whenever needed An effective mission statement answers all ofthese except which one? ’, Whoare ur customers? What is eur public image? ©. Whatis our philosophy? 4. What is our net work? 8. The purpose of strategy is 1 provides 4. The strategie direction foran organization in the foreseeable future '. Direction and scope ofan organization over the long-term, which achieves advantage for an organization within a changing environment to mget the nests of markets‘© Direction and scope of an organization over the long-term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations. 4d. A set of standards which all employees in an organization should strive to attain, An organization's mission ean be defined a: ‘4. The overriding purpose in line with the values or expectations of stakeholders. b. The overriding purpose rogarless of the values or expectations of stakeholders. The organization's business plan, 4d, The desired futuee state of the organization, “The means by which long-term abjectives will be achieved are a. mission statements b. strategies ¢. vision statements A. long-term goals A strategy isan) ‘Seto opportunities inthe markerplace bs. broad statement of purpose ©. simulation used to test various product line options 4. plan for cost reduction . action pln to achieve the mission ‘Which ofthe following changes does not result in strategy changes? a, change in the company’s financial situation ba company’s adoption of new technology change in the product life eyele 4. change in the competitive environment . change in job scheduling techniques Strategie management allows an organization to be more ‘a. Complacent b. Proactive Authoritarian d. Reactive Which ofthe following is true shout business strategies? 8, An organization should stick with its sirategy for the life of the business b. All firms within an industry will adopt the same strategy, «, Well defined missions make strategy development much easier. 4d. Strategies are formulated independently of SWOT analys ‘©, Organizational strategies depend on operations strateuies. ‘The purpose of a SWOT analysis isto analyze: ‘4. The business environment in which an organization operates. b. The strategie capability of an organization. c. The business environment and the strategic capability of an organization relative to its competitors. 4d. External and organizational environments Which ofthese are not recommended in a TOWS Matrix? 8, SW strategies b. WO strategies ©, WT strategies 4. ST strategies All ofthese, except are part of Port's competitive forces in industry analysis 2. potential entry oF new competitors bargaining power of suppliers &, development of substitute products 4. bargaining power of union ‘The five forces that affect the level of competition in an industey are: (Select one answer only)21 Threat of entrants; power of buyers; power of suppliers; threat of substitutes; competitive rivalry b, Threat of buyers; power of entry; power of substitutes; threat of suppliers; threat of © Threat of recession; power of buyers; power of suppliers; threat of management failure; competitive rivalry ‘d, ‘Threat oF entry; power of buyers; power of suppliers; threat of substitutes; government action Inthe Five Forces framework, the tem “threat oF entrants means: (Select one answer only) ‘a. The possibility of an existing competitor eapering the entire market. b. The possiblity ofan existing competitor withdrawing from the market ©. The possibility of a new competitor entering the market. 4. The possiblity ofa potential competitor entering a different market Assessment of competitive rivalry dees NOT include an understanding of: (Select one answer only) ‘8, The extent to which competitors are in balance Market growth rates , Fixed costs, exit baries and operational effcieney <4, The management structure ofan organization ‘The two internal elements of SWOT analysis are weaknesses and threats opportunities and threats strengths and opportunities 4. strenaths and weaknesses strengths and threats ‘The equivalent to competitive advantage in public services is F Outsourcing, Best value hh. Superior services. i. Bost practic. What are core competences? a. Resources which enitcaly underpin competitive advantage ané that others cannot obtain, b. Activites and processes needed to mect customers’ minimum requirements and therefore te continue to exis. Key skill required for success in a particular business. Activities that underpin competitive advantaue and are difficult for competitors to imitate or obtain, ‘The value chain is composed of primary & support activities. Which answer below provides the correct components for primary activities? Service, human resource management, marketing & sales, operations and outbound logistics. “Marketing & Sales, Operations, Outbound Logistics and Service ©, Procurement, Fim Infeastrcture, Human Resource Management, Technology Development and Marketing & Sales 4. Inbound Logistics, Operations, Outbound Logisties, Marketing & Sales and Service, Inthe resource-based view of strategy, what type of sitategie capabilities isthe sourse af sustainable competitive advantage? a Unique resourees and core competences. 1b. Dynamic eapabiites ©. Operational excellence 4. Strategic capabilities which are valuable to buyers, rare, robust and non-substittabe, Inemal strengths and weaknesses are usually 1 the major eause of organizational demise or success. . contollable activities within an organization, {most important for CEOs and the board of directors 44. notas important as external opportunities and threats,27. An onganization’s strengths and weaknesses are determined relative to its strategie business units b. government © competitors 4, extemal opportunites snd threats: 28, Allof these preconditions affect an operations management strategy except fa. external economic and technological conditions| '. competitors’ strengths and weaknesses, «accounting policies 4d. knowledge of the company’s siateay fe. knowledge ofeach produet’s life eyele 29, Which ofthe following statements i true about operations strategy? ‘4. Itshould suppor the corporate strategy. i. eshould help achieve the operation's mission, . Itshould be inegrated with the other functional areas’ strategies, 4d, It should promote competitive advantage, ©. Allof the above ae tue, 30, Cost eating in international operations can take place because of lower taxes and tris blower wage sales lower indirect labor costs 4. ess stringent regulations fe, alloftheabove ‘OM sheet 3 GOOG SGOSOOOOHOQO SOG GSOGHOOOOGHODO® ©O©OGOHOOOHOODOOD SCOGOOHHOORZGOOHSDDO QHBGHOOQODODOOOO®O ®QOOOOGODOOHHOO®D ©OOOGHOHHOHHODOD SCOGCOOHODOSROOSDO @MDQHDHOOOODOHOOOODOBPSM Section I~ Patil sir Instruction: Use separate answer sheet Que: ‘The new economy has ushered in revolutionary changes in the operatic oosting value addition, speed and productivity of opera “However, it has also brought in its trial disruption, processes and professions which has ‘caused fall of mighty corporations and possibly national economies” ~ Co: specific changes. 15 marks 1s management,