AIMA Online Assignments

Strategic Management & Ethics (GM14)

NOTE: The answers are boldly marked.

Question 1:- Strategy formulation was not as important 50 years back as the
environment during the pre-liberalization era was more:
a) Flexible
b) Stable and Predictable
c) Cyclical
d) Dynamic, Unstable and turbulent

Question 2:- Business Strategy should be formulated keeping in a mind a time horizon
of:
a) 3 - 5 years
b) 3 -6 months
c) less than one year
d) None of these

Question 3:- Business Success hinges on the capability of a firm to

a) formulate and execute action plans
b) Craft Internal plans
c) Allocate Resources efficiently
d) predict the internal environment

Question 4:- Mergers and Acquisitions is an integral portion of what level of strategy
a) Corporate level
b) Operational Level
c) Business Level
d) Functional Level

Question 5:- Which of the following is NOT part of the micro environment
a) Technology
b) Competitors
c) Customers
d) Publics

Question 6:- The strategy of TATA Motors and TCS would be classified as:
a) Business Strategy
b) Corporate Strategy
c) Operational Strategy
d) Process Level

Question 7:- Growth, retrenchment and stability are examples of

a) Corporate level Strategy
b) SBU Strategy
c) Integration Strategy
d) All of These

Question 8:- Porter's Generic strategies comprises of:

a) Cost leadership, differentiation and scope
b) Product and Market Focus
c) Integrated approach
d) Hyper competition

Question 9:- Typically, profits are highest in which stage of the industry life-
cycle
a) Growth
b) Introductory
c) Stagnation
d) Decline

Question 10:- Which of the following industries is least likely to follow the conventional
stable life-cycle model
a) Computer software
b) Coal Mining
c) Insurance Broking
d) Saloon

Question 11:- Strengths and weaknesses are important ingredients of:

a) The industry
b) The Organization and the competitors
c) The Market
d) The firm

Question 12:- Opportunities and threats are posed by the

a) Internal resources
b) External environment
c) Firm level competencies
d) Government policies only

Question 13:- Reputation' in the context of an organization's resources can provide

competitive advantage because:
a) It is implicit
b) It is difficult to copy
c) It is a resource
d) It leads to easy word of mouth publicity

Question 14:- Which of these is not a reason why some firms do not have strategic
planning
a) Laziness
b) Competitive Leadership
c) Differences in opinion
d) Poor reward structures

Question 15:- Which one of these is NOT a __________ part of Porter's competitive
forces in industry analysis
a) Bargaining power of consumers
b) Development of substitutes
c) Competitive Rivalry
d) Threat of new entrants

Question 16:- In which matrix of the BCG growth share matrix should a firm consider to
diversify
a) Problem Child
b) Cash Cow
c) Star
d) None of these

Question 17:- In which stage of the product life cycle should a firm consider investing
heavily in advertising
a) Maturity Phase
b) Introductory and emergent phase
c) Growth Phase
d) Research Phase

Question 18:- One of the features of strategy is that it should be:

a) focused on survival of the firm
b) Flexible and altered frequently
c) Robust and long term
d) Short term

Question 19:- Which one of the following is not a component of the internal
environment
a) Tangible Resources
b) Brand reputation
c) Laws and Regulations
d) Physical Assets

Question 20:- In the case where an organization acquires its supplier, this is an example
of
a) Horizontal Integration
b) Forward Integration
c) Backward Vertical Integration
d) Value Chain Dynamics
Question 21:- Firms having superior value chain capabilities have a competitive
…………………….. over rivals
a) disadvantage
b) environment
c) advantage and edge
d) battle

Question 22:- The _________ answers the question "What do we want to become?"
whereas _________answers the question "What is our business?"
a) Short term objectives; long term objectives
b) Short term plans; long term plans
c) Vision Statement; Mission Statement
d) Objectives; Strategies

Question 23:- __________ is based on the assumption that the future will be just like
the past.
a) Delphi Forecasts
b) Econometric forecasts
c) Linear Regression
d) Scenario Planning

Question 24:- In terms of the PESTLE analysis, the changes in the tariff structures and
regimes could go in which section
a) Demographics
b) Political
c) Legal
d) Eco-systems

Question 25:- A strategy can be defined as:

a) Operational plans
b) Line and direction followed by a firm
c) Plans designed irrespective of the environmental conditions
d) Integrated Broad set of action plans cutting across all business
functions

Question 26:- Which one of the following is not a component of the external
environment
a) Technology
b) Political
c) Socio- Cultural
d) Business Processes

Question 27:- Cultural values would be part of which of the following factor in macro
environment
a) Economic
b) Natural
c) Ecological
d) Social

Question 28:- The word tactic is most likely to be associated with

a) Functional; Level
b) Business Level
c) Unstructured planning
d) Operational Level Strategy

Question 29:- Adding new, unrelated products or services for present customers is a
phenomenon known as:
a) Horizontal Diversification
b) Concentric Diversification
c) Product Development
d) Conglomerate Diversification

Question 30:- An industry characterized by irregular patterns of stability, rapid

technological change, high uncertainty and global competition can be described as
a) Irregular
b) Inconsistent
c) Hyperactive

d) Hypercompetitive