SM MCQs

Q1. In comparison to the formal planning approach to strategy development, the

emergent approach is not associated with which of the following...
A) visionary entrepreneurs
B) goal congruence
C) strategy can be tried and developed as it is implemented

D) A response to unexpected contingencies

Ans. B
Q2. The fundamental purpose for the existence of any organization is described by its
A) policies
B) mission

C) procedures
D) strategy
Ans. B
Q3. Which industry has high entry barriers and high exist route?

A) Steel industry
B) Advertising industry
C) Automobile industry
D) Restaurant industry

Ans. C
Q4. Which of the following activities would be part of the performance element of
Corporate governance.
A) Responding to changes in the business environment

B) Monitoring the internal control system

C) Establishing an audit Committee
D) Designing and implementing a corporate code of ethics and conduct
Ans. A
Q5. ................. options are particularly valuable in industries where goods are

bought in small batches, or demand is very volatile.

A) Output mix
B) Input mix
C) Batch mix

D) Real
Ans. A
Q6. Rivalry is intensified in markets where growth is .....
A) High

B) Low
C) Equal
D) Unspecified
Ans. B

Q7. Strategic decisions relates to the scope of

A) firms activity
B) long term direction of organisations
C) allocation of resources
D) All of above

Ans. D
Q8. Discontinuous change refer to:
A) incremental change
B) speed of change

C) continuous change
D) big bang
Ans. A
Q9. The ........ has allowed customers and suppliers to acquire more up to date
information about forecast needs and delivery schedules than ever before.
A) Intranet
B) Wikipedia
C) Internet

D) All of above
Ans. C
Q10. Which of the following would be an example of a position audit tool?
A) Value chain analysis
B) 5 forces analysis

C) PEST analysis
D) Ansoffs matrix
Ans. A
Q11. ........... is sometimes called perceptual mapping

A) Market segment
B) Author commentary
C) Multidimensional scaling
D) Product positioning

Ans. D
Q12. Organizational performance will be primarily determined by;
A) Competitive forces
B) Environmental forces
C) Political forces

D) Industrial forces
Ans. D
Q13. This approach is founded on the idea that people's emotions and problems are a
result of the way they think.

A) Psychodynamic
B) Behavioural
C) Humanistic psychology
D) Cognitive

Ans. D
Q14. A paper manufacturer purchasing a forest of trees is an example of:
A) forward vertical integration.
B) backward vertical integration.

C) product/market exploitation.
D) product development
Ans. B
Q15. The goal of strategic management is to
A) achieve competitive advantage.

B) maintain competitive advantage.

C) achieve and maintain competitive advantage.
D) eliminate competitive advantage.
Ans. C

Q16. _________ lens is a Conservative approach to strategy where there is less changes in
the business environment and less complexity
A) Strategy as idea
B) Strategy as design

C) Strategy as disclosure
D) Strategy as experience
Ans. D
Q17. _________ forecast is Speculative
A) Market forecast

B) Judgemental forecast
C) Consensus
D) Statistical Forecast
Ans. B

Q18. ........ strategy determine the method of growth.

A) Product-market
B) Competitive
C) implementation

D) institutional
Ans. A
Q19. A critical success factor used to keep abreast of existing activities and operations is
known as

A) Monitoring
B) Operational
C) Building
D) Performance
Ans. A

Q20. ______ uses trends observed in past data to forecast future.

A) Statistical
B) No statistical
C) Market data

Ans. A
Q21. ______ is the stance of Corporate social responsibility in which organisations pay
their taxes, without bothering on other things.
A) Laizzes faire

B) Enlightening self interest

C) Multiple stakeholders obligations
D) Shaper of society.
Ans. A
Q22. Which factor is not normally considered in risk control?

A. Cost
B. Quality
C. Effort
D. All of the above

Ans. C
Q23. ________is the activity that influences external opportunities and threats
A) Political Stand
B) Lobbying

C) Grapevine
D) Elections Funding
Ans. B
Q24. _______lens use language to describe things

A) Design lens
B) Strategy as Experience
C) Strategy as disclosure
D) Strategy as idea
Ans. C

Q25. ......... technology enables businesses to work across the web, regardless of location:
A) Web 2.0
B) Wiki
C) Enterprise 2.0

D) Web 1.0
Ans. C
Q26. Identify the key tools that can are appropriate in position audit and situations
analysis stage of strategy planning

A) Distinctive competences
B) pest Analysis
C) Stakeholders Analysis
D) Scenario Planning
Ans. A

Q27. According to Montanari and Bracker _______ are services that are performed well
but for which there is a low demand they may therefore be perceived to be undesirable
uses for limited resources
A) Golden fleeces

B) Political hot box

C) Back drawer issue
D) Public Sector Star
Ans. A

Q28. Military strategy is based on an assumption of ________, whereas business strategy

is based on an assumption of ________.
A) conflict; cooperation
B) conflict; competition

C) cooperation; conflict
D) competition; conflict
E) cooperation; competition
Ans. B
Q29. 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
Q30. Joint venture and ________ are useful method for company to expand in overseas
market with good relations with other companies and communication are also helpful
A) Cooperative Arrangements

B) Venture Capitalization
C) Unions
D) Association
Ans. D
Q31. A firm outsources many of its value chain activities. Compared to a firm that does
everything in-house this is likely to incur:
A) Higher transaction costs, lower control
B) Higher transaction costs, higher control
C) Lower transaction costs, higher control

D) Lower transaction costs, lower control

Ans. A
Q32. An organization needs ______________ about its environment to allow it to
anticipate changes and to design strategies that will allow it to respond effectively to
those changes.
A) Strategic planning
B) Scenario planning
C) Rational planning

D) Strategic intelligence
Ans. D
Q33. The public sector confronts challenges relating to 'managing upwards'. This would
include:
A) Dealing with human resource development

B) Dealing with organizational structure

C) Dealing with elected politicians that set policy frameworks
D) Dealing with trade-unions
Ans. C

Q34. Competitive advantage can best be described as _______

A) Perfect Competition in The Market
B) Advantages of Competition
C) Increased Efficiency of the organisation

D) Stand out the organisation

Ans. C
Q35. The foundation of blue ocean strategy is ________
A) Evaluation
B) Creativity

C) Core strength
D) Value Innovation
Ans. D
Q36. The acquisition of a business that operates in the same industry is known as _____

A) Internal Integration
B) Horizontal Integration
C) External Integration
D) Vertical Integration

Ans. B
Q37. Removing the barriers for group countries is known as _____
A) Horizontal Integration
B) Vertical Integration

C) Internal Integration
D) Regional Integration
Ans. D
Q38. Which of the following statements is correct about strategy as Design lens.
A) Pooling together all the resources in an organization and implementing the strategy

B) It seen strategy as a Rational, Analytical, top down but in which there is some
communication also between employees to implement the strategy
C) It seen strategy as Rational, Analytical, top down in which strategy is always implemented
in organisation by senior managers

D) It is an emergent strategy in which strategy is evolve and then implemented in

organisation
Ans. C
Q39. Subhan ltd reviews its corporate strategy through rational top down process,
operating under careful controls. According to Johnson’s Sholes and Whittington, Which
strategic lenses Subhan Ltd is using for developing its strategy
A) the lens of effectiveness
B) the lens of design
C) the lens of experience

D) the lens of ideas

Ans. B
Q40. Vertical integration is concerned with
A) supply chain

B) production
C) Quality
D) planning
Ans. A

Q41. ________cost accounting measures the cost of producing and ignores the cost of
non-producing
A) Lean
B) Traditional

C) Environmental
D) Throughput
Ans. B
Q42. The model(s) of social responsibility is (are)
A) Austere Model
B) Vendors Model

C) Civic Model
D) all of the above
Ans. D
Q43. Companies employ trained ________ to develop “competency models” to identify
potential leaders.
A) Consultants
B) Psychologists
C) Trainers

D) All of the above

Ans. B
Q44. __________ is the main distinguishing feature of Web 2.0 applications compared to
other web applications.
A) E-Commerce capability

B) increased user participation

C) improved graphics
D) Broadband
Ans. B

Q45. Which market introduces new customer for instance banks, agencies or existing
customers.
A) Supplier Markets
B) Referral market

C) Internal Market
D) Customer Market
Ans. B
Q46. The Following Statements have been made regarding Market penetration.

Statement:1 It facilities promotion, quality discount, advertising

Statement:2 It restructures a mature market by driving out competitors.
Identify which of the following statements is /are correct
A) 1 Only
B) 2 Only

C) Both of the above

D) None of the above
Ans. C
Q47. An organization is launching a product but because of its side effect it is not launched
in the market till yet. What type of risk is this
A) Risk Avoidance
B) Risk transfer
C) Risk Aversion

D) Risk Mitigation
Ans. A
Q48. _________ product offer either a radical performance advantage over competition;
drastically lower prices, or ideally, may offer both
A) Breakthrough

B) Improved
C) Competitive
D) Credence
Ans. A

Q49. Residual income will increase when:

1: Investments earning above the cost of capital are undertaken
2: Investments earning below the cost of capital are eliminated
A)1 & 2

B) 1 only
C) 2 only
D) none
Ans. A

Q50. Critics of the ______ based approach points out, strategies are developed in
conditions of uncertainty and partial ignorance
A) Position
B) Resource
C) Emergent

D) Accounting
Ans. B
Q51. ______ type of strategy is appropriate for commodity-like products or for markets
where customers are strongly price-conscious. It is also suitable where customers'
switching costs are low and where there is little opportunity for competition on product
features.
A) Hybrid
B) No frills

C) differentiation
D) Focused differentiation
Ans. B
Q52. ......... Is on assumption of conflict
A) corporate

B) business
C) change management
D) military
Ans. D

Q53. Which approach to strategy formulation would be a top-down, formalised and

centrally planned approach?
A) Rational planning
B) Emergent strategies

C) Incremental planning
D) Freewheeling opportunism
Ans. A
Q54. Tacit knowledge is expandable, diffusive and shareable but not

A) Compressible
B) Transmittable
C) Substitutable
D) All of these
Ans. B
Q55. Which item was not suggested as a means of adapting the environment to suit the
organisation?
A) Lobbying
B) Boundary extension
C) Merger

D) Public relations
Ans. C
Q56. Which of these statements is true?
i)A good objective should clarify the desired result;

ii) enable achievement to be measured; and

iii) need not specify a time scale.
A) (ii) and (iii)
B) (i) and (ii)
C) (i) only.

D) (ii) only
Ans. B
Q57. Change Management is a collective term for all approaches to prepare, support, and
help individuals, teams, and organizations in making organizational change. Which of the
following do not cause the change to fail?
A) Change is not perceived as urgent.
B) Systems, policies and skills are not aligned
C) Vision is poorly communicated

D) Creation of short term wins

Ans. D
Q58. As identified several internal benefits of objectives, goals and a sense of mission.
Which is not included?

A)Basis to resolve disputes

B) Unity of direction
C) Basis of control
D) Motivation
Ans. A
Q59. Resistance to control will be greater when a system ...

Which is untrue?
A) uses standards set without participation.
B) affects people who are satisfied with the way things are.
C) does not link results to the reward system.

D) supplies results to higher organisational levels.

Ans. C
Q60. Control ensures that the ______ is achieved despite obstacles, variations and
uncertainties in both the organisation and the environment.

A) project
B) output
C) proposal
D) plan
Ans. D

Q61. Following are the tools for analysing country risk, except :
A) Porter’s five forces model
B) Competitors analysis
C) PEST Analysis

D) Porter’s Diamond Model

Ans. B
Q62. All Strategic planning models have limitations that must be considered when -------
how to apply them in any organizations.

Two of the limitations of a specific model of strategic analysis are below mentioned
i. It requires an extensive reworking of accounting information to support
ii. It is more adaptable in manufacturing industries then service industries
Identify the Model

A) Porter’s Value Chain Analysis

B) BCG Matrix
C) AnSoff’s Product Market Growth Matrix
D) Porter’s five forces analysis.
Ans. B

Q63. A steady increase in earnings is MOST likely to be a financial objective of:

A) A charity
B) public listed company
C) public sector enterprise

D) 'not-for-profit' company
Ans. B
Q64. In which process of evolution computers are introduced into other areas in an
uncontrolled fashion with varying degrees of success

A) Initiation
B) Contagion
C) Integration
D) Maturity
Ans. A

Q65. _______ Steps is the most critical steps in the risk management process in where
there is high chance of risk and it cannot be tolerable
A) Risk identification
B) Risk Pooling

C) Risk Classification
D) Risk mapping
Ans. B
Q66. The Change Agent has the Following Characteristics

A) Openness to changes
B) Articulating a vision
C) Defining the problem
D) All of the above

Ans. D
Q67. According To Rulpeh Moss kanter ________ used to the extent in which
Organisations have full understanding of the environment and greater understanding of
businesses.

A) Consonance
B) Acceptability
C) Availability
D) Feasibility

Ans.
Q68. Which strategy is very much demand led and business driven, each SBU in a large
organisation is likely to have it's own information system strategy.
A) Information System Strategy

B) Information Technology Strategy

C) Information Management Strategy
D) None of the above
Ans. A
Q69. In ________ Companies look externally to find ways of improving internal business
processes
A) Organizational Knowledge
B) Explicit knowledge
C) Knowledge Brokering

D) Tacit Knowledge
Ans. B
Q70. _______ is the asset that the marketer build to ensure continuity of satisfaction for
the customers and profit for the suppliers

A) Brand equity
B) Customer profile
C) Products Innovation
D) Products identity.

Ans. A
Q71. Which of the following problems arise with less formal approach to strategic
planning
A) Difficulty in raising finance
B) Management Skills
C) Strategic Drift

D) All of the above

Ans. D
Q72. _______ is the threat when an accountant is deterred from acting objectivity by
actual or perceived threat, including attempt to exercise undue influence over the
accountant
A) Self interest threat
B) Self Review threat
C) Familiarity Threat

D) Intimidation Threat
Ans. D
Q73. Which Approach of strategic Planning doesn't take sufficient account of market
condition and the external environment.
A) Accounting led

B) Position based approach

C) Resource based Approach
D) All of the above
Ans. A

Q74. Stakeholders in mendelow matrix that have little ability to influence strategy but
have important views have
A) High level of interest /High level of power
B) Low level of interest /High level of power

C) Low level of power /High level of interest

D) Low level of power /Low level of interest
Ans. C
Q75. Resource Based Analysis is sometimes also called

A) Current situation analysis

B) Current Reserve portfolio
C) Situation applications portfolio
D) Systems Application portfolio
Ans. A
Q76. Discontinuous Change is sometimes also called

A) Connectivity
B) Concave
C) Credence
D) Frame Breaking

Ans. D
Q77. A country risk analysis does not include
A) political risk
B) economic risk

C) objective criteria
D) company financial analysis
Ans. D
Q78. The purpose of _______ is to monitor the parties within an organisation who control
and use the organisation resources on behalf of its owners

A) Ethics
B) Corporate governance
C) Sustainability
D) Corporate Social Responsibility

Ans. B
Q79. Which of the following is not a major advantage of forming a joint venture from a
multinational firm's point of view?
A) tax benefits

B) local marketing expertise

C) less political risk
D) tight control
Ans. D

Q80. In _____ companies look externally to find ways of improving internal business
process
A) knowledge management
B) knowledge brokering
C) learning organisation

D) All of the above

Ans. B
Q81. Which type of forecasting methods objectivity is based on personal propensity to
optimism/pessimism?

A) naïve
B)econometric
C) judgmental
D) statistical

Ans. C
Q82. ______ decisions commit an organization to specific products, markets, resources
and technologies over extended period of time
A) strategic evaluation
B) strategic formulation

C) strategic implementation
D) strategic planning
Ans. D
Q83. A type of technique used to improve foresight by identifying future goals or outcome
then seek identify the circumstances, event, actions, technologies etc. Which will be
required to meet those objective such technique is that
A) opportunity mapping
B) role playing

C) relevance trees
D) issue analysis
Ans. C
Q84. ___________ are considered to be the “element of dynamic capabilities”

A) core competencies and core capabilities

B) resources
C) renewal, reconfiguration and recreation
D) competencies and capabilities
Ans. C
Q85. The transformation process must create a vision, make the company lean and fit,
create many opportunities and in part new ways of doing things. Goullart and Kelly argue
that the transformation exercise fails if one of the four Rs. Which of the following
approaches is not the part of gemini 4 framework
A) restructuring

B) revitalizing
C) resolving
D) reframing
Ans. C

Q86. Self insurance is frequently used as a risk handling technique for ______ losses
A) high frequency, high severity
B) low frequency, high severity
C) high frequency, low severity
D) low frequency, low severity

Ans. C
Q87. Installing airbags in automobiles is an example of
which of the following?
A) Avoidance

B) loss reduction
C) loss prevention
D) limited liability
Ans. B

Q88. An insurance policy with a deductible is an example of which of the following?

A) risk transfer
B) risk assumption
C) both a and b

D) neither a nor b
Ans. C
Q89. Cellar-Dwellers, Inc. is a construction firm that specializes in building residential
basements. The firm estimates that thieves steal 1,000 cement blocks from the firm's
work sites each year, which it pays for out of its current cash accounts. This financing
arrangement exemplifies which of the following?
A) loss reduction
B) loss prevention
C) risk retention

D) self-insurance
Ans. C
Q90. The __________ is the comprehensive approach to the strategy that suggests a
logical sequence which involves analysis of current situation, generating choices and
implementing the chosen strategy
A) incrementalism
B) emergent strategies
C) rational model
D) freewheeling opportunism

Ans. C
Q91. Insurance is frequently used as a risk-handling technique for ____________ losses.
A)high frequency, high severity
B) high frequency, low severity

C) low frequency, high severity

D) low frequency, low severity
Ans. C
Q92. The only two measures used in the BCG Matrix are ___________ and __________

A) Performance and value for money

B) product image and market share
C) growth and market share
D) value for money and desirability of the service

Ans. C
Q93. ________ brings those effected by strategic change into the change management
process, …….. into issue identification, prioritization and creation of new routines to
implement newly established strategy.
A) education and communication
B) intervention
C) collaboration and participation

D) direction
Ans. C
Q94. The competitive strategy are _____ strategies for competitive advantage an
organization pursue.

A) institutional
B) product market
C) generic
D) rationalization

Ans. C
Q95. ABC theatre altering the concerned ticket prices in line with the demand is an
example of ____ pricing
A) penetration
B) investment

C) perceived value
D) data dynamic Dynamic pricing is the option
Ans. C
Q96. Goals for markets will involve the following type of decision, except

A) coverage
B) positioning
C) market leadership
D) capital productivity

Ans. A
Q97. Which of the following is not an aim of strategic supply chain management?
A) closer relationship including linked systems
B) closer relationship including linked systems and frequently changing suppliers

C) reduce the number of suppliers

D) frequently changing suppliers
Ans. C
Q98. Which one of the following best represents an external trigger for change process
A) relocation of the business to different city or country

B) stiffer competition from rivals or from new entrants

C) the acquisition of new knowledge or skills
D) a new organization structure which prompts changes for job responsibilities
Ans. B

Q99. BCA is a leading global automaker. BCA has to stop production of popular vehicle
when a labour shuts down the factories of DFG Ltd, the sole supplier of auto transmission
to BCA. The lost production resulting from this supply chain disruption is an example of a
(an) _______ that is bor—to BCA

A) operational risk
B) strategic risk
C) Hazard risk
D) financial risk
Ans. A

Q100. As argued by Michael Porter, only the ________ factors are the root of sustainable
components success
A) external
B) advanced

C) basic
D) internal
Ans. B
Q101. Large business organizations often includes a reference to social responsibility in
their misstatements. Which of the following aspirations does not reflect a genuine
concern for social responsibility behaviour?
A) to keep employees informed of policy, progress and problems.
B) to pay at least the minimum wage to all employees

C) to support the local community and preserve the environment

D) to provide good working conditions and decent rewards for all employees.
Ans. B
Q102. When defensive measure is the reason for acquisition, the possible issue that may
arise includes
A) loosely coupled management teams

B) pooled resources, better services for customer

C) importance of aligning cultures
D) crisis management techniques maybe required
Ans. A

Q103. Identify which one of the following is the best reason for an organization to act in a
socially responsible way?
A) Perceptions of unethical corporate behaviour can lead to increased regulation.
B) It is important to manage stake holder’s impressions

C) responsible behaviour is most cost effective.

D) It increases the range of potential customers and investors.
Ans. D
Q104. _________ aims to identify a small number of performance areas in which
satisfactory results will be derived successful competitive performance overall.

A) Competences
B) Competitive advantage
C) Critical Success Factors (CSFs)
D) Capabilities

Ans. C
Q105. An organization makes considerable effort to address social issues; actively
addressing specific concerns, and anticipating future issues. Such response of an
organization towards social response and social issues is called ________.

A) Reaction
B) Proaction
C) Defense
D) Accommodation

Ans. B
Q106. A company that manufacture readymade garments produces two lines of clothing:
winter and summer. The clothing is produced to a high standard of design and
manufacture and it is sold under a recognized and prestigious label. The strategy that the
company is seeking to use in the highly competitive clothing market is referred to as a :
A) Cost Leadership Strategy

B) Cost Focus Strategy

C) Differentiation Focus Strategy
D) Differentiation Strategy
Ans. C