1.

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

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

a. Rites
b. Emotions
c. Rituals
d. Sagas
e. Symbols

3. 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

4. Which sector of the economy would be most impacted by technological developments?

a. forestry
b. pharmaceuticals
c. textiles
d. metals
e. paper

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

a. measurable.
b. continually changing.
c. reasonable.
d. challenging.
e. consistent.

6. What are guides to decision making?

a. laws
b. rules
c. policies
d. procedures
e. goals
7. 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.
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.
e. on community news bulletins

9. Which group would be classified as a stakeholder?

a. Communities
b. Banks
c. Suppliers
d. Employees
e. All of these

10. 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

11.The first step for using Porter’s Five-Forces Model is to evaluate the relative strength of
each competitive force.

True
False
12. Bargaining power of consumers is usually the most powerful of Porter’s five
competitive forces.

True
False
 13. Significant barriers to entry are not always sufficient to keep some new firms from
entering industries with higher-quality products, lower prices and substantial marketing
resources.

True
False

14. Forward integration is used by firms to gain control or ownership of suppliers.

True
False

15. In an EFE Matrix, opportunities often receive higher weights than threats, but threats
too can receive high weights if they are especially severe or threatening.

True
False

16. Opportunities are a firm’s distinctive competencies that cannot be easily matched or
imitated by competitors.

True
False

17. The process of performing an internal audit, compared to the external audit, provides
more opportunity for participants to understand how their jobs, departments and divisions
fit into the whole organization.

True
False

18. Cultural products include values, beliefs, stories, and language.

True
False

19. Allocating resources is one of the five basic activities (functions) performed by
managers.

True
False
20. Planning should be performed mostly by middle management and then presented to top
management for analysis and approval.

True
False
 21. 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

22. ST Strategies is an important strategy to

a. Match weakness with opportunities of the firm
b. Overcome external threats
c. Obtain benefit form its resources
d. Overcome its weakness and reducing threats
23. Strategic Position and Action Evaluation Matrix is used in
a. Formulation Framework
b. Matching stage
c. External factor evaluation
d. Decision stage

24. Cash cows are always in

a. Introductory industry
b. Growing industry
c. Mature industry
d. Declining industry

25. In BCG matrix, the reason for choosing relative market share, rather than just profits,
is that
a. It carries more information than just cash flow
b. It shows where the brand is positioned against its main competitors
c. It indicates where it might be likely to go in the future
d. All of the mentioned options

26. Those firms must make some drastic changes quickly to avoid further demise and
possible liquidation that fall in__________ of grand strategy matrix
a. Qurdant-1
b. Qurdant-2
c. Qurdant-3
d. Qurdant-4

27. 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
 28. 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

29. 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

30. 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

31. Matching Stage consists of the EFE Matrix, the IFE Matrix, and the Competitive
Profile Matrix.
True
False

32. Strengthsare external conditions that are helpful to the achievement of the objective.
True
False

33. All nine techniques included in the strategy-formulation framework require integration
of intuition and analysis.
True
False

34. Many businesses fall right in the middle of the Grand strategy matrix and thus are not
easily classified
True
False

35. Only a diversified company with a balanced portfolio can use its strengths to truly
capitalize on its growth opportunities.
True
False

36. Viewing every business as a star, cash cow, dog, or question mark is overly complicated.
True
 False

37. Many companies repeatedly fail to truly motivate their people to work with enthusiasm
True
False

38. Strategy implementation varies substantially among different types and sizes of
organizations.
True
False

39. Annual objectives, stated in terms of profitability, growth, and market share by
business segment, geographic area, customer groups, and product are not common in
organizations.
True
False

40. Resource allocation is a major management activity that allows for strategy execution
True
False

41.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.

42. Business week reports that firms using mission statements have a __________ return on
certain financial measures than those without such statements.

a. 30%
b. 35%
c. 40%
d. 45%
43. What is the best time to develop a mission statement?

a. Before a business is opened

b. When the firm is successful
c. When the firm is in financial trouble
d. When the firm is in legal trouble

44. 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?

45.__________ is not part of an external audit.

a. Analyzing competitors
b. Analyzing financial ratios
c. Analyzing available technologies
d. Studying the political environment

46). 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

47). 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

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

a) Mission
b) Vision
c) Strategy implementation
d) None of above
 49). “Walls” ice cream purchase “Polka” in order to capture the market. Such kind of
integration is called:

a) Forward Integration
b) Backward Integration
c) Horizontal Integration
d) Product Development

50). “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

51). Strategic-management audit is known as:

a) Environmental scanning
b) Strategy formulation
c) Strategy control
d) Strategy evaluation

52). 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
53). ______________ 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

54). 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

55). ____________ involves assessing the costs, benefits, and risks associated with marketing
decisions.

a) Customer analysis
b) Opportunity analysis
c) Marketing Research
d) Product and Service Planning

56. 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.

57. What are the means by which long-term objectives will be achieved?
 a. Strategies.
b. Strengths.
c. Weaknesses.
d. Policies.
e. Opportunities.

58. 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?

59. 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

60.__________ is not part of an external audit.

a. Analyzing competitors
b. Analyzing financial ratios
c. Analyzing available technologies
d. Studying the political environment
e. Analyzing social, cultural, demographic and geographic forces

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

a. Rites
b. Emotions
c. Rituals
d. Sagas
e. Symbols

62. 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
 63. Long-term objectives should be all of the following except:

a) Measurable.
b) Continually changing.
c) Reasonable.
d) Challenging.
e) Consistent.
64. What are guides to decision making?
a. laws
b. rules
c. policies
d. procedures
e. goals

65. Which group would be classified as a stakeholder?

a) Communities
b) Banks
c) Suppliers
d) Employees
e) All of the given options

66. “If a strategist has identified that the market growth rate is 8 %, the
number of sellers in industry are 52 and the industry's products are
differentiated.” Which one of the industry's key success factors he is
exploring?
a. Economic forces
b. Social forces
c. Competitive forces
d. Social forces

67 The social factors that affect a firm involve all of the following except:
a. Per capita income
b. Lifestyles of people
c. Attitudes of people in external environment
d. Values & beliefs of people outside the firm

68. 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

69 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

70.What will happen to the Pakistani exports in overseas markets when there
is a strong value of Rupee?
a. Less expensive
b. More attractive
c. Cheaper
d. More expensive

71. 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

72. 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

73. Which statement about business intelligence is LEAST accurate?

a. Intelligence gathering is an unethical business practice
b. Running an intelligence program requires many people
c. Running an intelligence program requires many computers and other
resources

74. Business intelligence is not equal to espionage

9. The competitive threat posed by substitute products is weakened when:
a. Buyers that are currently purchasing the product are not relatively loyal
b. There are relatively large number of rival sellers that are fairly equal in
size and competitive capability
c. Customers are in a strong bargaining position to win concessions from
sellers

d. Buyers' costs of switching to substitutes are relatively high

75. Which one of the statements is a good example of the competitive
power of substitute products?
a. The competition between cellular phones and computers
b. The competition between Coca-Cola, Pepsi and 7up
c. The competition between Amazon.com and traditional off-line
bookstores
d. The competition frozen yogurt provides to the producers &
marketers of ice cream
76. “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

77. 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

78. A complex set of basic underlying assumptions and deeply held beliefs
shared by all members of the group and drive in important ways the
behavior of individuals in the organizational context is known as:
a. Internal audit
b. Internal assessment
c. Organizational strategy

d. Organizational culture
79. Which one of the following best describes “a substitute product or
service”?
a. A competitor's product or service
b. An alternative way of meeting the same need
c. A new entrant into the industry
d. A less attractive way of meeting the same need

80. Mr. Ghouri assigns a project to be completed by Khalid till the end of
the month and then holds periodic meetings with him to review his
progress. Which of the management functions is Mr. Ghouri
performing?
a. Planning
b. Leading
c. Controlling
d. Organizing
81. The way a company decides to group customers in order to gain a
competitive advantage is called
a. Market segmentation
b. Price-level segmentation
c. Customer differentiation
d. Positioning

82. A company's ROI (Return on Investment) can be algebraically

decomposed into two major components: return on sales and ________.
a. Fixed capital
b. Net profit
c. Cost of goods sold
d. Total assets

83. The MM equipment firm’s financial statements reveal that its sales are
5 million rupees and its finished goods inventory is valued as 2.5 million
rupees. BC Company is one of the competitors of MM equipment with
3 times inventory turnover. You have to decide that the inventory
turnover of MM equipment is:
a. Better than BC Company
b. Worst than BC Company
c. Equal to BC Company
d. None of the given options

84. 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

85. “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