BBA Unit-4 Corporate Strategy

1. Corporate level strategy deals with__________

A. objectives of specific operations
B. objectives of the corporate
C. objectives of specific functions
D. objective of Single strategic Business Unit
Answer: B

2. SBU refers to ___.

a. Strategy & Business Units
b. Structural Business Unit
c. Standby Business Units
d. Strategic Business Units
Ans: D

3. A defines the company’s business, its objectives and its approach to reach those objectives.
(A) Vision statement
(B) Mission statement
(C) Planning statement
(D) Forecasting statement
Answer B

4. …………. of a company focuses on the question: ‘Who we are’ and ‘What we do’.
(A) Vision statement
(B) Mission statement
(C) Philosophy
(D) Statement of Philosophy
Answer B

5. Corporate Strategy is –
(A) Decisive and legislative
(B) Executive and governing
(C) Growth and profitability
(D) Focus and Differentiation
Answer A

6. Corporate Strategy deals with –

(A) Particular business unit or division
(B) Entire business organization
(C) Profitable product segment
(D) All of the above
Answer B
7. Corporate Strategy uses –
(A) Introverted approach
(B) Complicated approach
(C) Extroverted approach
(D) Value approach
Answer C

8. A mission statement is a …………….. of an organization’s purpose, identifying the goal of its

operations
(A) Long statement
(B) Short statement
(C) Complex statement
(D) None of the above
Answer B

9. Which of the following is concerned with the overall purpose and scope of the business to
meet stakeholder expectations?
(A) Operational strategy
(B) Corporate strategy
(C) Business unit strategy
(D) Operation strategy
Answer B

10. Under a ………. the company tries to be different and unique from its competitors.
(A) Low Cost Strategy
(B) Product Mix Strategy
(C) Differentiation strategy
(D) Quality Strategy
Answer C

11. Geographical Diversification, Product diversification and Entry Mode are the domains of:
(A) Functional Strategy
(B) Business Strategy
(C) Corporate Strategy
(D) All of the Above
Answer C

12. ___ is considered as the most important strategist responsible to play a major role in strategic
decision making.
a) CEO
b) Functional head
c) Chief manager
d) All of the above
Ans: a
13. ___ involves foresight on the expansion and development of the organization strategy
a) long term strategy
b) short term strategy
c) recovery strategy
d) All of the above
Ans: b

14. Private companies became public for several reasons-

a) Raise capital by public issue
b) Respectability
c) Foreign collaboration
d) All of the above
Ans: d

15. During a period of recession ___ is suitable; while___ is used during the period of economic
expansion, strong competitive position.
a) Growth strategy, stability strategy
b) Stability strategy, growth strategy
c) Defensive strategy, turnaround
d) All of the above
Ans: b

16. There are only two options:

a) Change or sink
b) Survival or growth
c) Inevitable or evitable
d) None of the above
Ans: a

17. ___ identifies the scope of business operations in product & market terms.
a. Purpose
b. Objective
c. Mission statement
d. Goal
Ans: C

18. The sale of a division unit or part of the asset of a company to another is called as ___.
a. Divestiture
b. Diversification
c. Financial restructuring
d. Tender offer
Ans: A

19. WO represents ___ strategy in the TOWS matrix.

a. Maxi Maxi
b. Mini Mini
c. Mini Maxi
d. Maxi Mini
Ans: D

20. An example for a generic competitive strategy is ___.

a. Differentiation
b. Support activity
c. Strategy based on degree of freedom
d. Value chain
Ans: A

21. The person who profounded TOWS matrix is ___.

a. Drucker
b. Weihrich
c. Sharplin
d. Prahalad
Ans: D

22. Following is a market development strategy –

a. Vertical integration
b. Focus on Existing markets
c. Integrative growth
d. Entry to new markets
Ans: A

23. The objective of diversifying business is to ___.

a. Maximise risks
b. Minimise profits
c. Minimise risks
d. Maximise total assets
Ans: B

24. When a firm’s basic strategy is reconsidered on the occurrence of a sudden, unexpected
event, then the type of control needed is ____.
a. Operational
b. Special alert
c. Implementation
d. Strategic
Ans: A
25. Threat of substitutes is considered as ___.
a. Competitive force
b. State of growth
c. Rivalry
d. Competitive strategy
Ans: A

26. A strategy is thought oriented

A. True
B. False
Answer B

27. Which is alternatives objectives of SBUs as per Kotler?

A. Build
B. Harvest
C. Hold
D. All of above
Answer D

28. The strategist uses the career planning in order?

A. To enable the employees to develop and make them ready to meet the future challenges
B. To provide suitable promotional opportunities
C. To attract competent persons and retain them in the organisation
D. All of the above
Answer D

29. The strategic management process is the way in which strategists determine objectives and
A. Make recording
B. Make coordinating
C. Make strategic decisions
D. Make planning
Answer C

30. Which is the step in the process of strategic decision-making?

A. Problem Diagnosis
B. The Selection of a Solution
C. Problem Awareness
D. All of the above
Answer D

31. Which statement is true?

A. The strategic management involve the determination of the organisation's mission, strategic
policies, and strategic objectives
B. Strategic management is a stream of decisions and action which leads to the development
of an effective strategy or strategies to help achieve corporate objectives
C. The strategic management process is the way in which strategists determine objectives and
make strategic decisions.
D. All of the above
Answer D

32. The strategy evaluation factors include

A. Contributory Relationships
B. MVC-Host Country Relationships
C. Financial Measures
D. All of the above
Answer D

33. Which is the functional area of Strategic Management?

A. Production or Operations
B. Finance
C. Marketing
D. All of the above
Answer D

34. ______ is the process of managing the pursuit of organisational mission while managing the
relationship of the organisation to its environment."
A. System Management
B. Strategic Management
C. Financial Management
D. Cost Management
Answer B

35. Match the following

List-I (Level of Strategy) List-II (Areas)

(A) Operating Level 1. Plants Strategy

(B) Functional Level 2. Personnel Strategy

(C) Business Level 3. Particular Line Strategy of Business

(D) Corporate Strategy 4. Objectives

5. Cost
A. (A) (B) (C) (D)

3 4 2 1
B. (A) (B) (C) (D)
 1 2 5 4
C. (A) (B) (C) (D)

1 2 3 4
D. (A) (B) (C) (D)
1 5 4 3
ANswer C

36. Which statement is true?

A. An offensive strategy, if successful, can open up a competitive advantage over competitors
B. All firms are subject to attacks from competitors in a competitive environment
C. A grand offensive involving several major initiatives may be sometimes launched by the
aggressors
D. There is a benefit period, after a successful competitive offensive.
Answer A

37. In the context of strategic management resources can be defined as

A. The knowledge and skills within the organisation
B. Something that an organisation owns, controls or has access to on a semi-permanent basis
C. The physical assets of the organisation
D. None of the above
Answer A

38. The corporate level management help each strategic business unit to define its
A. goal of nature
B. goal of production
C. goal of firm
D. scope of operation
Answer D

39. The _________ answers the question "What do we want to become?" whereas ______
answers the question "What is our business?"
A. Vision statement, mission statement
B. Short-term objectives; long term objectives
C. Objectives; strategies
D. Mission vision
Answer a

40. "Mission is the fundamental work given by the society to an organisation." Who said?
A. Koontz and O'Donnell
B. Daulton E. McFarland
C. Thomspon
D. All of the above
Answer A
41. Strategic Management involves
A. The determination of the organiation's mission, strategic policies and strategic objectives
B. Cost
C. The determination of price of the product and service
D. Planning with high cost
Answer A

42. Which is the reasons for change of a firm from concentration strategies?
A. Overconfidence
B. Pressure to use idle capacity
C. Temptations of diversification
D. All of the above
Answer D

43. Which statement is true?

A. Strategy has more subjective values
B. Strategy is developed at the highest level
C. Strategy requires more difficult-to-get information. A manager requires more information for
arriving at a strategic decision, while tactics requires normal information which is generated
within the organisation
D. All of the above
Answer D

44. SWOT analysis includes

A. Functional Strategy
B. Business Level Strategy
C. Corporate Strategy
D. All of the above
ANswer D

45. Which is the strategic disadvantage of Product Organisation Structure?

A. Results in duplication of equipment and personal
B. Involves difficulty in allocating over-heads
C. Result in inconsistent decisions from one department to another
D. All of the above
ANswer D

46. The advantages derived by implementing Strategic management principles are broadly
classified as ___ and ___ benefits.
A. Financial & non-financial
B. Behavioral & non-behavioral
C. Operational & Non-operational
D. Promotional & non-promotional
Ans: A

47. The decisions are taken and policies implemented are ___ to see their effects.
A. Constantly evaluated
B. Frequently evaluated
C. Periodically evaluated
D. None of Above
Ans: A

48. A good vision is realistic only and not idealistic. (True / False)
A. True
B. False
Ans: B

49. What is meant by the ‘strategic triangle’?

A. Company, Customer and the Competitor.
B. Company. Cost and Customer
C. Competitor, Capital, and Company
D. None of above
Ans: A

50. Strategy is always action-oriented. (State True or False)

A. True
B. False
Ans: A

51. The strategic management process is a continuous process (True / False)

A. True
B. False
Ans: A

52. Strategic analysis is a part and parcel of the ___ process of organisations.
A. Knowledge creation
B. Policy creation
C. Procedure Creation
D. None of above
Ans: Knowledge creation

53. Strategic analysis for policy basically deals with ___.

A. analyzing the external environment
B. Analyzing the internal environment
C. Both A & B
D. None of Above
Ans: A
54. Both management and employees are involved in strategy evaluation (True / False)
A. True
B. False
Ans: A

55. ___ is defined as a general set of directions for the corporate to achieve a desirable state in
the future.
A. Business strategy
B. Business Policy
C. Operational Strategy
D. Corporate Strategy
Ans: A

56. The 3 strategies advocated by Porter for the business unit level are ___, ___ and ___.
A. Cost leadership strategy, Differentiation strategy and Focused strategy
B. Differentiation strategy , Capital strategy and Focused strategy
C. Differentiation strategy , operational strategy and Cost leadership strategy
D. None of above
Ans: A

57. The strategic leader motivates collectivism and maintains the balance between conflicting
ideas
A. False
B. True
Answer B

58. Strategic choices are evaluated according to their:

a) suitability (to the organisation and its current situation)
b) feasibility (e.g. in terms of usefulness or competences)
c) acceptability (e.g. to relevant stakeholder groups)
d) All of the above
ANswer D

59. A company should consider the overall important strategic issues when assessing the
suitability of an option, such as:
a. Does it fit with any existing strategies which the company is already employing, and which it
wants to continue to employ?
b. How well does the option actually address the company’s strategic issues and priorities?
c. Will the option contribute to a sustainable competitive advantage for the company, in the
light of the competitive environment?
d. All of the above
Answer D
60. The acceptability of a strategy relates to whether it is acceptable to an organisation’s
stakeholders. It is particularly important that any potential strategy is acceptable to these key
stakeholders.
A. True
B. False
Answer A

61. When evaluating a strategy, management should consider:

a) Whether an individual strategy involves an unacceptable amount of risk. If it does, it should
be eliminated from further consideration in the planning process.
b) The risk of an individual strategy should be considered in the context of the overall portfolio
of investment strategies adopted by the company.
c) Both A&B
d) None
Answer C

62. Strategies deal with future events, and the future cannot be predicted with any certainty.
Techniques such as CVP analysis can be used to reduce this risk of uncertainty.
a. True
b. False
Answer A

63. ………. refers to the process of conducting research on a company and its operating
environment to formulate a strategy.
(A) SWOT analysis
(B) Strategic implementation
(C) Strategic analysis
(D) Strategic turnaround
Answer: (C)

64. ………… is a process through which a strategy is put into action.

(A) Strategic analysis
(B) Strategy implementation
(C) SWOT analysis
(D) Strategic turnaround
Answer: (B) Strategy implementation

65. Strategic implementation is -……..

(A) Concerned with translating a strategic decision into action.
(B) Crafting a combination of strategies and picking out the best one.
(C) Primarily an intellectual process.
(D) Considered easier and less time consuming.
Answer: (A) Concerned with translating a strategic decision into action.
66. The critical 7-S model was developed and created by reputed consulting firm:
(A) Mckinsey
(B) Bain & Co.
(C) A. T. Kearney
(D) Accenture
Answer: (A) Mckinsey

67. ……….. focuses on whether the strategy is being implemented as planned and the results
produced are those intended.
(A) Strategic analysis
(B) Strategic control
(C) Strategy formulation
(D) Strategy implementation
Answer: (B) Strategic control

68. …….. means crafting a combination of strategies and picking out the best one to achieve the
organizational goals and objectives and thereby reaching the vision of the organization.
(A) Strategy implementation
(B) Strategic analysis
(C) Strategy formulation
(D) Strategic management
Answer: (C) Strategy formulation

69. The way the organization is structured and who reports to whom
(A) Strategy
(B) Structure
(C) Staff
(D) System
Answer:
(B) Structure

70. Strategy implementation focuses on -……..

(A) Efficiency
(B) Co-ordination
(C) Crafting of strategies
(D) Supporting factors
Answer: (A) Efficiency

71. The plan devised to maintain and build competitive advantage over the competition -………
(A) Strategy
(B) Style
(C) Skills
(D) Systems
Answer: (A) Strategy
72. Which of the following is NOT included ‘g in McKinsey 7-S framework?
(A) Strategy
(B) Structure
(C) System
(D) Safety
Answer: (D) Safety

73. McKinsey’s 7-S framework helps analyze organizations and improve their effectiveness. The
seven elements to be coordinated are: shared values, structure, systems, style and what?
(A) strategy, service levels and specialization
(B) strategy, staff and skills
(C) service levels, stock and staff
(D) specialization, skills and standards
Answer: (B) strategy, staff and skills

74. What does SBU stand for?

(A) Significant business undertaking
(B) Special bureaucratic use
(C) Standard business usage
(D) Strategic business unit
Answer: (D) Strategic business unit

75. Maria is the Marketing Manager for Whole foods Ltd. She is working on the firm’s marketing
plan. Her forecasts show that, if they carry on as they have been doing, they are likely to miss
their sales revenue targets by ₹ 5,00,000. She needs some new ideas. What kind of analysis has :
Maria undertaken?
(A) PRESTCOM analysis
(B) SWOT analysis
(C) Strategic gap analysis
(D) Ratio analysis
Answer: (C) Strategic gap analysis

76. Which of the following is Hard ‘S’ as per McKinsey Model?

(A) Style
(B) Strategy
(C) Staff
(D) Skills
Answer: (B) Strategy

77. An important activity in ……….. is taking corrective action.

(A) Strategy evaluation
(B) Strategy implementation
(C) Strategy formulation
(D) Strategy leadership
Answer: (A) Strategy evaluation

78. Which of the following is Soft ‘S’ as per McKinsey Model?

(A) Strategy
(B) Shared Values
(C) Structure
(D) Systems
Answer: (B) Shared Values

79. …………. are at the core of McKinsey 7-S model.

(A) Skills
(B) Staff
(C) Shared Values
(D) System
Answer: (C) Shared Values

80. ………….. is the process of stimulating an activity so that it can be performed successfully.
(A) Communication
(B) Activation
(C) Acceptance
(D) Offer
Answer: (B) Activation

81. Which types of problem is encountered in the process of resource allocation while activating
the strategy?
(A) Power Play
(B) Commitments of past
(C) Resistance to changes
(D) All of the above
Answer: (D) All of the above

82. When to organizations combine to increase their strength and financial gains along with
breaking the trade barriers is called -…………..
(A) Hostile takeover
(B) Liquidation
(C) Merger
(D) Acquisition
Answer:(C) Merger

83. ……….e.g., production, selling, finance, etc., is the most widely used basis for grouping
activities into administrative units and found in almost every business enterprise at some level or
the other.
(A) Departmentation by product & equipment
(B) Departmentation by products or service
(C) Departmentation by process & equipment
(D) Departmentation by functions
Answer: (D) Departmentation by functions

84. In a matrix organization, the functional departments like manufacturing, marketing,

accounting and personnel constitute the …… while the project organization or product divisions
form the ………….
(A) Vertical chains of command, Horizontal chains of command
(B) Horizontal chains of command, Vertical chains of command
(C) Vertical chains of command, Vertical chains of command
(D) Horizontal chains of command, Horizontal chains of command
Answer: (A) Vertical chains of command, Horizontal chains of command

85. ………… involves general monitoring of various sources of information to uncover

unanticipated information having a bearing on the organizational strategy.
(A) Strategic Surveillance
(B) Appraisal System
(C) Strategy formulation
(D) Strategy implementation
Answer: (A) Strategic Surveillance

86. Transformational change in an organization refers to -………….

(A) Complete change in almost all aspects of the organization
(B) Incremental change in which necessary improvements are made in the existing organization
(C) No change in any aspect of the organization
(D) None of the above
Answer: (A) Complete change in almost all aspects of the organization

87. What do we mean by the term ‘strategic change?

(A) The changes that inevitably result in organizations as they evolve in a changing environment
(B) Planned change
(C) The proactive management of change to achieve strategic objectives
(D) An important organizational change
Answer: (C) The proactive management of change to achieve strategic objectives

88. What are the major procedural requirements involved in the strategy implementation
process?
(A) Licensing Requirements
(B) Company law Requirements
(C) FEMA Requirements
(D) All of the above
Answer: (D) All of the above
89. Strategies may require changes in ………………
(A) Structure
(B) Motivation
(C) Resistance
(D) Sale price
Answer: (A) Structure

90. Which of these is/are a basic activity of strategy evaluation?

a. Reviewing the underlying internal and external factors that represent the bases of current
strategies
b. Measuring organizational performance
c. Taking corrective actions
d. All of the above
e. Both b and c
Ans: d

91. Which of these is the cornerstone of effective strategy evaluation?

a. Adequate and timely feedback
b. Quality and quantity of managers
c. Smaller ratio of top- to lower-level management
d. Evaluation preceding implementation stage
Ans: a

92. The purpose of strategy evaluation is to

a. increase the budget annually.
b. alert management to problems or potential problems.
c. make budget changes.
d. evaluate employees’ performance.
Ans: b

93. Strategy evaluation is becoming __________ with the passage of time.

a. increasingly difficult
b. much simpler
c. very convenient
d. an unnecessary activity
Ans: a Page: 301

94. All of the following are reasons strategy evaluation is more difficult today except
a. a dramatic increase in the environment’s complexity.
b. the increasing number of variables.
c. the increase in the number of both domestic and world events affecting organizations.
d. the decreasing difficulty of predicting the future with accuracy.
e. the rapid rate of obsolescence of even the best plans.
Ans: d
95. A final broad test of strategy is its
a. advantage.
b. feasibility.
c. consonance.
d. consistency.
e. distinctiveness.
Ans: b

96. Competitive advantage normally is the result of superiority in all of these areas except
a. resources.
b. position.
c. consistency.
d. skills.
Ans: c

97. In evaluating strategies, __________, one of Rumelt’s criteria for evaluating strategies, refers
to the need for strategists to examine sets of trends.
a. consistency
b. consonance
c. feasibility
d. advantage
Ans: b

98. Strategy-evaluation activities should be performed

a. on a periodic basis.
b. at the onset of a problem.
c. on a continuous basis.
d. upon completion of major projects.
Ans: c

99. What is the best type of strategy evaluation?

a. Intense
b. Informal
c. Continuous
d. Periodic
Ans: c

100. When you discover major changes have occurred in the firm’s internal strategic position
while conducting strategy evaluation, you should
a. continue on the present strategic course.
b. immediately discontinue all aspects of the present strategic course.
c. take corrective actions.
d. add additional funds to the present strategic plan.
Ans: c