Strategic Management

STRATEGIC MANAGEMENT
1. HORIZONTAL INTEGRATION IS CONCERNED WITH
(A) PRODUCTION
(B) QUALITY
(C) PRODUCT PLANNING
(D) ALL OF THE ABOVE
2. IT REFERS TO FORMAL AND INFORMAL RULES, REGULATIONS AND

PROCEDURES THAT COMPLEMENT THE COMPANY STRUCTURE
(A) STRATEGY
(B) SYSTEMS
(C) ENVIRONMENT
3. MICRO ENVIRONMENT IS THE ………. ENVIRONMENT OF A COMPANY.
(A) WORKING
(B) HUMAN
(C) EXTERNAL
(D) INTERNAL
4. TECHNIQUES USED IN ENVIRONMENTAL APPRAISAL ARE
(A) SINGLE-VARIABLE EXTRAPOLATION/MULTIVARIABLE INTERACTION

ANALYSIS
(B) STRUCTURED/ UNSTRUCTURED EXPERT/INEXPERT OPINION
(C) DYNAMIC MODES AND MAPPING
5. MATCH THE FOLLOWING
QUESTION ANSWER
A. BALLAST BUSINESSS 1. GIVE THE HIGHEST PRIORITY
B. GAP ANALYSIS 2. DIFFERENCE BETWEEN

DESIRED AND PROJECTED
PERFORMANCE
C. CORPORATE PARENTING 3. MANAGING SBU’S BY A

CORPORATE
D. HEARTLAND BUSINES 4. FIT WELL BUT LOW

OPPORTUNITIES
THE CORRECT ANSWER IS
(A) A-1, B-3, C-2, D-4
(B) A-2, B-1, C-4, D-3

(C) A-4, B-2, C-3, D-1
(D) A-2, B-3, C-4, D-1
6. IT ENABLES THE STRATEGISTS TO TAKE CORRECTIVE ACTION AT THE

RIGHT TIME
(A) IMPLEMENTATION CONTROL
(B) SPECIAL ALERT CONTROL
(C) STRATEGIC SURVEILLANCE CONTROL
(D) PREMISE CONTROL
7. LIKE ROOTS OF A TREE, ________OF ORGANIZATION IS HIDDEN FROM

DIRECT VIEW.
(A) PERFORMANCE
(B) STRATEGY
(C) CORE COMPETENCE
8. CHANGES IN COMPANY ………. ALSO NECESSITATES CHANGES IN THE

SYSTEMS IN VARIOUS DEGREES
(A) STRUCTURE
(B) SYSTEM
(C) STRATEGY
(D) TURNOVER
9. THE ACTUAL PERFORMANCE DEVIATES POSITIVELY OVER THE
BUDGETED PERFORMANCE. THIS IS AN INDICATION OF ………..
PERFORMANCE.
(A) SUPERIOR
(B) INFERIOR
(C) CONSTANT
(D) ANY OF THE ABOVE
10. CRITERIA FOR MAKING AN EVALUATION IS (ARE)
(A) CONSISTENCY WITH GOALS
(B) CONSISTENCY WITH ENVIRONMENT
(C) MONEY
11. THE ………. OF ANY ORGANIZATION IS “THE AGGREGATE OF ALL

CONDITIONS, EVENTS AND INFLUENCES THAT SURROUND AND AFFECT
IT.”
(A) SYSTEM
(B) ENVIRONMENT
(C) STRUCTURE
(D) STRATEGY
12. STRATEGIC MANAGEMENT IS MAINLY THE RESPONSIBILITY OF
(A) LOWER MANAGEMENT
(B) MIDDLE MANAGEMENT
(C) TOP MANAGEMENT

13. THE MAJOR ISSUE(S) OF APPRAISAL SYSTEM IS (ARE)
(A) FACTORS OF APPRAISAL
(B) RELEVANCE OF APPRAISAL
(C) PROCEDURE OF APPRAISAL
14. THEY HAVE TIME BASED UTILITY
(A) GOALS
(B) RESOURCES
(C) BOTH ‘A’ AND ‘B’
(D) NONE OF THE ABOVE
15. FORMAL SYSTEMS ARE ADOPTED TO BRING ________ &

AMALGAMATION OF DECENTRALIZED UNITS INTO PRODUCT GROUPS.
(A) MANPOWER
(B) CO-ORDINATION
(C) PRODUCTION
16. CHANGE IN COMPANY’S ………. GIVES RISE TO PROBLEMS

NECESSITATING A NEW ……… TO BE MADE
(A) STRUCTURE, STRATEGY
(B) STRATEGY, STRUCTURE
(C) STRUCTURE, STRUCTURE
(D) STRATEGY, STRATEGY

17. SYSTEMS ARE FORMAL AND INFORMAL RULES AND REGULATIONS
THAT COMPLEMENT THE COMPANY ………..
(A) STRATEGY
(B) STRUCTURE
(C) SYSTEM
(D) ENVIRONMENT
18. THE REASONS FOR ACQUISITION ARE
(A) INCREASED MARKET POWER
(B) INCREASED DIVERSIFICATION
(C) INCREASED SPEED TO MARKET
19.MARKET RESEARCH IS CONDUCTED BY
(A) BY EMPLOYEES
(B) BY RESEARCH AGENCIES
(C) BY CONSULTANTS
20.VERTICAL INTEGRATION IS CONCERNED WITH
(A) SUPPLY CHAIN
(B) PRODUCTION
(C) QUALITY
(D) PLANNING
21. ________COST ACCOUNTING MEASURES THE COST OF PRODUCING

AND IGNORES THE COST OF NON-PRODUCING
(A) LEAN
(B) TRADITIONAL
(C) ENVIRONMENTAL
(D) THROUGHPUT
22.MATCH THE FOLLOWING
QUESTION ANSWER
A. RETRENCHMENT STRATEGIES 1. RETRENCHMENTS – EITHER

INTERNALLY OR EXTERNALLY
B. DIVESTMENT STRATEGIES 2. CONTRACTION OF ACTIVITIES

THROUGH ELIMINATION OF THE
SCOPE OF ONE OR MORE OF ITS
BUSINESS
C. TURNAROUND STRATEGIES 3. INVOLVES THE SALE OR

LIQUIDATION OF A PORTION OF A
BUSINESS
(A) A-1, B-2, C-3
(B) A-3, B-2, C-1

(C) A-2, B-3, C-1
(D) A-3, B-1, C-2
23.ETOP STANDS FOR ________.
(A) ENVIRONMENTAL THREAT & OPPORTUNITY PROJECT
(B) ENVIRONMENTAL THREAT & OPPORTUNITY PROFILE
(C) ENVIRONMENTAL TREATY & OPPORTUNITY PROFILE
(D) ENVIRONMENTAL THREAT & OPTIMUM PROFILE
24.THE CONTROL PROCESS REQUIRES THE FOLLOWING TYPES OF

INFORMATION
(A) PLANNED PERFORMANCE
(B) VARIANCES
(C) REASONS
25.FINANCIAL ENVIRONMENT IS CONCERNED WITH
(A) DEMAND & SUPPLY OF MONEY
(B) CAPITAL MARKETS

26.THE PROCESS OF FORECASTING AN ORGANIZATION’S FUTURE
DEMANDS FOR AND SUPPLY OF RIGHT TYPE OF PEOPLE IN RIGHT
NUMBER IS
(A) PRODUCT PLANNING
(B) PROCESS PLANNING
(C) MAN POWER PLANNING
27.IT IS DESIGNED TO MONITOR A BROAD RANGE OF EVENTS INSIDE

AND OUTSIDE THE COMPANY THAT ARE LIKELY TO THREATEN A FIRM’S
STRATEGY
(A) STRATEGIC SURVEILLANCE
(B) STRATEGIC PLANNING
28.HARVEST STRATEGY IS USED FOR
(A) DOGS
(B) QUESTION MARKS
29.THESE ARE CRITICAL SITUATIONS THAT OCCUR UNEXPECTEDLY AND

THREATEN THE COURSE OF A FIRM’S STRATEGY
(A) CRISIS
(B) EMERGENCY
(C) SHUTDOWN
30.ATTACK STRATEGIES ARE
(A) FRONTAL ATTACK
(B) FLANK ATTACK
(C) ENCIRCLEMENT ATTACK
31. AN APPROACH THAT STRIVES TO FOLLOW ETHICAL PRINCIPLES AND

PERCEPTS IS
(A) MORAL MANAGEMENT
(B) IMMORAL MANAGEMENT
(C) AMORAL MANAGEMENT
32.NICHE MARKETING MEANS
(A) END USER SPECIALIST
(B) SPECIFIC CUSTOMER SPECIALIST
(C) GEOGRAPHIC SPECIALIST
33.TYPE(S) IMPORTANT MANAGERIAL SKILL(S) REQUIRED FOR THE

EFFECTIVE STRATEGIC MANAGEMENT
(A) CONCEPTUAL SKILL
(B) HUMAN SKILL
(C) INTELLECTUAL SKILL
34.THE MODEL(S) OF SOCIAL RESPONSIBILITY IS (ARE)
(A) AUSTERE MODEL
(B) VENDORS MODEL
(C) CIVIC MODEL
35.DELAY IN ________ MEASUREMENT DEFEATS THE PURPOSE OF

EVALUATION.
(A) TIME
(B) QUALITY
(C) PRODUCTION
36.MODULE OF FLOTILLA STRIKES AN OPTIMUM BALANCE OF ________

AND FLEXIBILITY
(A) OPTIMISATION
(B) STANDARDISATION
(C) ORGANIZATION

37.THE ________ ARE DISTINCT LITTLE BUSINESS SET UP AS UNITS IN A

LARGER COMPANY.
(A) SMALL BUSINESS UNITS
(B) STRATEGIC BUSINESS UNITS
(C) INTERNAL BUSINESS UNITS
38.KNOWLEDGE OF THE RELATIONSHIPS BETWEEN CHOICES,

ENVIRONMENT & OUTCOMES IS
(A) FAMILIARITY
(B) CONVERSANCY
(C) INFORMALITY
(D) NORMALITY
39.________ SHOULD HAVE THE ABILITY TO DEVELOP A VISION TO SEE

PATTERNS INTO THE FUTURE.
(A) LEADERS
(B) MANAGERS
(C) MANAGEMENT
(D) WORKERS
40.FACTORS ENCOURAGING JOINT VENTURES ARE
(A) UNECONOMICAL SEPARATE EXISTENCE

(B) RISK OF BUSINESS GETS SHARED
(C) SHARING COMPETENCE OF EACH OTHER
41.________ IS THE DRIVE TO ACHIEVE BEYOND ONE’S EXPECTATIONS.
(A) MOTIVATION
(B) TRAINING
(C) DEVELOPMENT PROGRAMME
42.THE DECISIONS WHICH ARE APPLIED TO STRUCTURED OR ROUTINE

PROBLEMS ARE
(A) SEMI-PROGRAMMED DECISIONS
(B) UN-PROGRAMMED
(C) PROGRAMMED
43.STRATEGIC MANAGEMENT DEALS WITH
(A) PRODUCTION AND QUALITY
(B) PROFIT AND LOSS
(C) BUSINESS PROCESS

44.BENCHMARKING IS
(A) HISTORICAL ANALYSIS
(B) COMPETITIVE ANALYSIS
(C) RE-ENGINEERING
45.GDP STANDS FOR
(A) GROSS DOMESTIC PRODUCT
(B) GROSS DOMESTIC PRODUCTION
(C) GROSS DAILY PRODUCTION
(D) GROSS DOMESTIC PROCESS
46. MACRO ENVIRONMENT
(A) POLITICAL- LEGAL
(B) SOCIO-CULTURAL
(C) ECONOMIC-DEMOGRAPHIC
47.FACTOR(S) DETERMINING HRP (HUMAN RESOURCE PLANNING)
(A) TYPE & STRATEGY OF ORGANISATION
(B) ENVIRONMENTAL UNCERTAINTIES
(C) TYPE & QUALITY OF INFORMATION

48.A MAJOR PART OF STRATEGY IMPLEMENTATION IS
(A) PLANNING
(B) COMMUNICATION
(C) RESOURCE ALLOCATION
(D) MONITORING
49.THESE PEOPLE ARE CHARGED WITH THE RESPONSIBILITY OF

CONTINUOUS SCREENING OF PERFORMANCE?
(A) MANAGERS
(B) SUPERVISORS
(C) TOP MANAGEMENT
(D) AUDIT COMMITTEE
50.________ AND GREATER ACCOUNTABILITY REPLACE FORMAL

CONTROL.
(A) SELF-DISCIPLINE
(B) SELF APPRAISAL
51.………….. FUNCTION APPLIES TO ALL COMPANY LEVELS

IRRESPECTIVE OF LEVELS OF HIERARCHY.
(A) PLANNING
(B) ORGANIZING
(C) STAFFING
(D) DIRECTING
52.THREE C’S AFFECTING TODAY’S COMPANIES ARE
(A) CUSTOMER, COMPETITION, CHANGE
(B) COST, COMPETITION, CHANGE
(C) CUSTOMER, COMPETITION, COST
(D) CUSTOMER, COST, CHANGE
53.STRATEGIC MANAGEMENT IS CONCERNED WITH
(A) SHORT RANGE PLANNING
(B) LONG RANGE PLANNING
54.IT PROVIDES A WAY TO BRING IN THE PEOPLE DIMENSION IN MACRO

COMPANY ANALYSIS WITHOUT USING PSYCHOLOGICAL MODELS OF
HUMAN BEHAVIOUR.
(A) ENVIRONMENT
(B) SOCIETY
(C) CULTURE

55.IT IS USED EXTENSIVELY IN ORGANISATION AND IS CONCERNED
WITH ACTION OR PERFORMANCE.
(A) OPERATIONAL CONTROL
(B) PRODUCTION CONTROL
(C) QUALITY CONTROL
56.COMPANIES EMPLOY TRAINED ________ TO DEVELOP “COMPETENCY

MODELS” TO IDENTIFY POTENTIAL LEADERS.
(A) CONSULTANTS
(B) PSYCHOLOGISTS
(C) TRAINERS
57.STYLE OF A COMPANY ARE THE PATTERNS OF ACTIONS TAKEN BY

MEMBERS OF …. MANAGEMENT OVER A PERIOD OF TIME
(A) TOP
(B) MIDDLE
(C) LOWER
58.IT CONCENTRATES ON ORGANISATION DESIGN AND WORK FLOW
(A) SYSTEMS APPROACH
(B) FLOTILLA
(C) METHOD STUDY
(D) WORK STUDY
59.THE BENEFITS OF A CHANGE IN PROCESS ARE DEFINED IN TERMS OF

_______ COST SAVINGS
(A) LABOUR
(B) INFRASTRUCTURE
(C) PRODUCTION
(D) RAW MATERIAL
60.CORE IDEOLOGY
(A) CORE VALUES
(B) CORE PURPOSE
61. THE FUNDAMENTAL PURPOSE FOR THE EXISTENCE OF ANY

ORGANIZATION IS DESCRIBED BY ITS
A. POLICIES
B. MISSION
C. PROCEDURES
d. STRATEGY
62.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
D. GENERATE GOOD PUBLIC RELATIONS FOR THE ORGANIZATION
63. THE ACRONYM SWOT STANDS FOR
A. SPECIAL WEAPONS FOR OPERATIONS TIMELINESS
B. SERVICES, WORLDWIDE OPTIMIZATION, AND TRANSPORT
C. STRENGTHS WORLDWIDE OVERCOME THREATS
D. STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND

THREATS
64. 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.
D. IT CONCERNS THE PRESENT DIRECTION OF THE

ORGANIZATION.
65. WHICH OF THE FOLLOWING IS AN ISSUE CONSIDERED IN

DEVELOPING CORPORATE STRATEGIES?
A. WHAT BUSINESS(ES) ARE WE IN?

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?
66. WHICH OF THE FOLLOWING IS NOT A MAJOR ELEMENT OF THE

STRATEGIC MANAGEMENT PROCESS?
A. FORMULATING STRATEGY
B. IMPLEMENTING STRATEGY
C. EVALUATING STRATEGY
D. ASSIGNING ADMINISTRATIVE TASKS
67. COMPETITIVE ADVANTAGE CAN BEST BE DESCRIBED AS:
A. INCREASED EFFICIENCY.
B. WHAT SETS AN ORGANIZATION APART.
C. A STRENGTH OF THE ORGANIZATION.
D. INTANGIBLE RESOURCES.
68. ________________ IS THE FOUNDATION OF BLUE OCEAN STRATEGY.
A. INNOVATION
B. VALUE CREATION
C. VALUE INNOVATION
D. VALUE COST TRADE-OFF

69. THE VARIOUS ORGANIZATIONAL ROUTINES AND PROCESSES THAT
DETERMINE HOW EFFICIENTLY AND EFFECTIVELY THE ORGANIZATION
TRANSFORMS ITS INPUTS INTO OUTPUTS ARE CALLED:
A. STRENGTHS.
B. CORE COMPETENCIES.
C. CAPABILITIES.
D. CUSTOMER VALUE.
70. WHEN DEFINING STRATEGIC MANAGEMENT THE MOST IMPORTANT

THING TO REMEMBER IS THAT IT IS:
A. NOT AS EASY AS YOU THINK
B. MAINLY THE PROVINCE OF SENIOR MANAGERS
C. A LIVING EVOLVING PROCESS
D. MORE CONCEPTUAL THAN PRACTICAL
E. A WAY OF DETERMINING RESPONSIBILITIES
71. 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
72. THE PRIMARY FOCUS OF STRATEGIC MANAGEMENT IS:
A. STRATEGIC ANALYSIS
B. THE TOTAL ORGANISATION
C. STRATEGY FORMULATION
D. STRATEGY IMPLEMENTATION.
73. 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
74. 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
75. WHICH OF THE FOLLOWING DEFINES HOW EACH INDIVIDUAL
BUSINESS UNIT WILL ATTEMPT TO ACHIEVE ITS MISSION?
A. BUSINESS STRATEGY
C. FUNCTIONAL STRATEGY
76. WHICH OF THE FOLLOWING FOCUSES ON SUPPORTING THE

CORPORATE AND BUSINESS STRATEGIES?
A. COMPETITIVE STRATEGY
C. OPERATIONAL STRATEGY
77. 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
78. 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
79. 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
80. 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
81. 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
82. 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
83. 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
84. 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.
85. 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
86. 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..
87. 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
88. 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.
89. 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.
90. 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.
91. 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.
92. 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
93. 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.
94. 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.
95. 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.
96. 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.
97. 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.
98. 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.
99. INTERNAL ANALYSIS ENABLES A FIRM TO DETERMINE WHAT THE

FIRM
A. CAN DO.
B. SHOULD DO.
C. WILL DO.
D. MIGHT DO.
100. AN EXTERNAL ANALYSIS ENABLES A FIRM TO DETERMINE WHAT
THE FIRM
A. CAN DO.
B. SHOULD DO.
C. WILL DO.
D. MIGHT DO.

Strategic Management

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Strategic Management

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STRATEGIC MANAGEMENT

1. HORIZONTAL INTEGRATION IS CONCERNED WITH

(C) PRODUCT PLANNING

(D) ALL OF THE ABOVE

2. IT REFERS TO FORMAL AND INFORMAL RULES, REGULATIONS AND

(D) ALL OF THE ABOVE

3. MICRO ENVIRONMENT IS THE ………. ENVIRONMENT OF A COMPANY.

(A) SINGLE-VARIABLE EXTRAPOLATION/MULTIVARIABLE INTERACTION

(B) STRUCTURED/ UNSTRUCTURED EXPERT/INEXPERT OPINION

(C) DYNAMIC MODES AND MAPPING

(D) ALL OF THE ABOVE

5. MATCH THE FOLLOWING

A. BALLAST BUSINESSS 1. GIVE THE HIGHEST PRIORITY

B. GAP ANALYSIS 2. DIFFERENCE BETWEEN

C. CORPORATE PARENTING 3. MANAGING SBU’S BY A

D. HEARTLAND BUSINES 4. FIT WELL BUT LOW

THE CORRECT ANSWER IS

(A) A-1, B-3, C-2, D-4

(B) A-2, B-1, C-4, D-3

(D) A-2, B-3, C-4, D-1

6. IT ENABLES THE STRATEGISTS TO TAKE CORRECTIVE ACTION AT THE

(A) IMPLEMENTATION CONTROL

(B) SPECIAL ALERT CONTROL

(C) STRATEGIC SURVEILLANCE CONTROL

(D) PREMISE CONTROL

7. LIKE ROOTS OF A TREE, ________OF ORGANIZATION IS HIDDEN FROM

(C) CORE COMPETENCE

(D) ALL OF THE ABOVE

8. CHANGES IN COMPANY ………. ALSO NECESSITATES CHANGES IN THE

(D) ANY OF THE ABOVE

10. CRITERIA FOR MAKING AN EVALUATION IS (ARE)

(A) CONSISTENCY WITH GOALS

(B) CONSISTENCY WITH ENVIRONMENT

(D) ALL OF THE ABOVE

11. THE ………. OF ANY ORGANIZATION IS “THE AGGREGATE OF ALL

12. STRATEGIC MANAGEMENT IS MAINLY THE RESPONSIBILITY OF

(A) LOWER MANAGEMENT

(B) MIDDLE MANAGEMENT

(C) TOP MANAGEMENT

(D) ALL OF THE ABOVE

(A) FACTORS OF APPRAISAL

(B) RELEVANCE OF APPRAISAL

(C) PROCEDURE OF APPRAISAL

(D) ALL OF THE ABOVE

14. THEY HAVE TIME BASED UTILITY

(C) BOTH ‘A’ AND ‘B’

(D) NONE OF THE ABOVE

15. FORMAL SYSTEMS ARE ADOPTED TO BRING ________ &

(D) ALL OF THE ABOVE

16. CHANGE IN COMPANY’S ………. GIVES RISE TO PROBLEMS

(A) STRUCTURE, STRATEGY

(B) STRATEGY, STRUCTURE

(C) STRUCTURE, STRUCTURE

(D) STRATEGY, STRATEGY

18. THE REASONS FOR ACQUISITION ARE

(A) INCREASED MARKET POWER

(B) INCREASED DIVERSIFICATION

(C) INCREASED SPEED TO MARKET

(D) ALL OF THE ABOVE

19.MARKET RESEARCH IS CONDUCTED BY

(B) BY RESEARCH AGENCIES

(D) ALL OF THE ABOVE

20.VERTICAL INTEGRATION IS CONCERNED WITH