MGT603 - Strategic Management MCQ's for Exams

Developing a vision and a mission statement is important because of the following reasons EXCEPT:
They are useful for large firms only
They establish organizational culture
They are the basis for allocating resources
They translate objectives into work structure


Which of the following is not a pitfall an organization should avoid in strategic planning?
Failing to involve key employees in all phases of planning
Involving all managers rather than delegating planning to a planner
Top managers not actively supporting the strategic planning process
Doing strategic planning only to satisfy accreditation or regulatory requirements

Departmentalization can be done on the basis of many factors EXCEPT:
Functions
Number of employees
Strategic business units
Divisions

Assigning rating 3 to an internal factor in IFE matrix indicates what?
Major weakness
Minor weakness
Minor strength
Major strength
Which of the following can be considered one of the factors of external opportunities and threats of an organization?
Production/ operations
Research & development
Competitive trends
Management information system

Ethnic balance is affected due to which of the following?

Change in ethnic values
Awareness of ethnic norms
Migration of the people towards different areas
Introduction of new laws relating to ethnicity

Which category of ratios measures “how effectively a firm can maintain its economic position in the growth of the economy and industry”? :
Liquidity
Leverage
Activity
Growth
Buyers can exercise high bargaining power over their suppliers under which one of the following conditions?
When there are many good substitutes of raw material
There are few buyers in the market
They have few suppliers to choose from
There is a high concentration of suppliers

Which of the following is the first step in the controlling function of management? Select correct option:
Take corrective actions
Restrict breaks employees
take Evaluate expense
reports Establish performance standards

Following are the examples of the sectors that are more technologically oriented EXCEPT: Select correct option:
Textile
Pharmaceutical
Telecommunications
Beverages
which of the following groups represents the stakeholders of a company? Select correct option:
The owners of the company
The people who purchases the shares of the company
The people who have a special stake or claim on the company
Are the people who are in the management a company
In which of the following phase of strategic management, annual objectives are especially important? Select correct option:
Formulation
Evaluation
Implementation
Management
Which of the followings deals with the management of inputs, transformations and outputs that vary across industries and markets? Select correct option:
Marketing
Finance
Operations
Distribution
Which of the following arise when a company can take advantage of conditions in its environment to formulate and implement strategies that enable it to become more profitable? Select correct option:
Strengths
Opportunities
Weaknesses
Threats
Local, state, and national elections, world oil, currency, and labor markets, number of patents, special tariffs are the examples of which one of the following? Select correct option:
Economic forces
Social, cultural and, demographic forces
Political, governmental, and legal forces
Competitive forces
Which group would be classified as a stakeholder? Select correct option:
Communities
Banks
Suppliers
All of the given options
Which of the following statement is refered to ‘Price fluctuation’? Select correct option:
Decrease in prices
Increase in prices
Fluctuation in the prices of a particular commodity
Fluctuation in general price level
Which of the following is the process of influencing people to accomplish specific objectives? Select correct option:
Staffing
Motivating
Controlling
Organizing
Defensive strategies include all of the following EXCEPT: Select correct option:
Retrenchment
Acquisition
Divestiture
Liquidation
Effective mission statements don’t have one of the following features: Select correct option:
Generate range of feasible strategic alternatives
Reconcile interests among diverse stakeholders
What does the firm want to become
Provide criteria for selecting strategies
What is the first step in the comprehensive strategic management model? Select correct option:
Performing external audits
Developing vision and mission statements
Performing internal audits
Measuring and evaluating performance
Different types of consumers are created due to new trends, which in turn require which type of products? Select correct option:
Different products
Different services
Different strategies
All of the given options
A system of several rites connected with a single occasion or event is known as: Select correct option:
Myth
Ceremonial
Saga
Legend
In Competitive Profile Matrix, the rating 4 indicates what? Select correct option:
Major weakness
Major strength
Minor strength
Minor weakness
In which of the following phase of strategic management, annual objectives are especially important?
Select correct option:



Formulation
Evaluation
Implementation
Management








Question
Backward integration is effective in all of the following situations EXCEPT:
Select correct option:



When an organization competes in an industry that is growing rapidly
When an organization needs to acquire a needed resource quickly
When the advantage of stable prices are not importan
When present suppliers have high profit margins





Question
Which one variable falls under the category of the Social, Cultural, Demographic, and Environmental Variable?
Select correct option:



Propensity of people to spend
Buying habits
Level of disposable income
Income differences by region





Question
Which of the following is not a key question that can reveal internal strengths and weaknesses of the marketing department?
Select correct option:



Does the firm have an effective sales organization?
Are markets segmented effectively?
Are the firm’s products and services priced appropriately?
Does the firm have good liquidity?







Question
The general conditions for competition that influence business firms, which provide similar products and services is known:
Select correct option:



Remote environment
International environment
External environment
Industry environment





Question
Which of the following marketing entity is NOT an intermediary?
Select correct option:



Brokers
Agents
Producer
Vendors





Question
All of the following are included in the five functions of the management process EXCEPT:
Select correct option:



Planning
Organizing
Leading
Delegating








Question
All of the following are the basic functions of marketing EXCEPT:
Select correct option:



Selling products/services
Product and service planning
Marketing research
Arranging for finance







Question
Defensive strategies include all of the following EXCEPT:
Select correct option:



Retrenchment
Acquisitio
Divestiture
Liquidation







Question
In the process of developing a mission statement, which of the following is CORRECT?
Select correct option:



To involve as few managers as possible

To involve as many managers as possible

To involve upper-level management only

To involve the board of directors only
In which of the following phase of strategic management, annual objectives are especially important?
Select correct option:



Formulation
Evaluation
Implementation
Management








Question
Backward integration is effective in all of the following situations EXCEPT:
Select correct option:



When an organization competes in an industry that is growing rapidly
When an organization needs to acquire a needed resource quickly
When the advantage of stable prices are not importan
When present suppliers have high profit margins





Question
Which one variable falls under the category of the Social, Cultural, Demographic, and Environmental Variable?
Select correct option:



Propensity of people to spend
Buying habits
Level of disposable income
Income differences by region





Question
Which of the following is not a key question that can reveal internal strengths and weaknesses of the marketing department?
Select correct option:



Does the firm have an effective sales organization?
Are markets segmented effectively?
Are the firm’s products and services priced appropriately?
Does the firm have good liquidity?







Question
The general conditions for competition that influence business firms, which provide similar products and services is known:
Select correct option:



Remote environment
International environment
External environment
Industry environment





Question
Which of the following marketing entity is NOT an intermediary?
Select correct option:



Brokers
Agents
Producer
Vendors





Question
All of the following are included in the five functions of the management process EXCEPT:
Select correct option:



Planning
Organizing
Leading
Delegating








Question
All of the following are the basic functions of marketing EXCEPT:
Select correct option:



Selling products/services
Product and service planning
Marketing research
Arranging for finance







Question
Defensive strategies include all of the following EXCEPT:
Select correct option:



Retrenchment
Acquisitio
Divestiture
Liquidation







Question
In the process of developing a mission statement, which of the following is CORRECT?
Select correct option:



To involve as few managers as possible

To involve as many managers as possible

To involve upper-level management only

To involve the board of directors only
Question # 1 of 10 ( ) Total Marks: 1
Which statement is CORRECT about strategic-management process?
Select correct option:

It occurs once a year
It is a continuous process
It applies mostly to large business
It applies mostly to small businesses


Question # 2 of 10 () Total Marks: 1
“A desired future state that the organization attempts to realize”. Identify the term relevant to the given statement.
Select correct option:

Goal
Strategy
Policy
Procedure


Question # 3 of 10 ( ) Total Marks: 1
Selling includes all of the following marketing activities EXCEPT:
Select correct option:

Advertising
Pricing
Sales promotion
Customer relations


Question # 4 of 10 ( ) Total Marks: 1
Which of the following is not a pitfall an organization should avoid in strategic planning?
Select correct option:

Failing to involve key employees in all phases of planning
Involving all managers rather than delegating planning to a planner
Top managers not actively supporting the strategic planning process
Doing strategic planning only to satisfy accreditation or regulatory requirements


Question # 5 of 10 () Total Marks: 1
Which management function includes breaking tasks into jobs, combining jobs to form departments and delegating authority?
Select correct option:

Motivating
Staffing
Organizing
Planning


Question # 6 of 10 ( ) Total Marks: 1
Which category of ratios measures “how effectively a firm can maintain its economic position in the growth of the economy and industry”?
Select correct option:

Liquidity
Leverage
Activity
Growth


Question # 7 of 10 ( ) Total Marks: 1
Corporate social policy should be designed and articulated during which phase of strategic management?
Select correct option:

Implementation
Formulation
Evaluation
Management


Question # 8 of 10 ( ) Total Marks: 1
Following are the examples of the sectors that are more technologically oriented EXCEPT:
Select correct option:

Textile (NOT SURE)
Pharmaceutical
Telecommunications
Beverages


Question # 9 of 10 ( ) Total Marks: 1
For the past four years the ABC Corporation has been planning to expand its operations in order to reach out to the world market. Essentially, the ABC Corporation desires to do what?
Select correct option:

Become an online business
Become a brick-n-mortar business
Embrace globalization
Become a click-n-mortar business


Question # 10 of 10 ( ) Total Marks: 1
Which of the following is the first step in the controlling function of management?
Select correct option:

Take corrective actions
Restrict breaks employees take
Evaluate expense reports
Establish performance standards
In BCG growth-share matrix, which of the following would be most likely to possess a low market share and a high growth rate?
Select correct option:
Dog
Question mark
Cash cow
Star

Which of the following is NOT a SPACE Matrix quadrant?
Select correct option:
Aggressive
Defensive
Competitive
Offensive

Lack of access to key distribution channel indicates which of the following?
Select correct option:
Strength
Weakness
Opportunity
Threat

Which of these is an attractive strategy for a cash cow division?
Select correct option:
Concentric diversification
Horizontal integration
Conglomerate diversification
Backward integration

Smoothies Tire & Rubber Co. is selling its North American tire business to Avinza International, is an example of which type of strategy?
Select correct option:
Related diversification
Retrenchment
Divestiture
Liquidation

What kind of strategy retrenchment is?
Select correct option:
A reorganization strategy
An expansion strategy
A diversification strategy
An integration strategy


According to the Grand Strategy Matrix, which strategy is recommended for a firm with rapid market growth and a strong competitive position?
Select correct option:
Market penetration
Conglomerate diversification
Joint venture
Retrenchment

Din Mohammad, a farmer sells his crops at the local market rather than to a distribution center. This action of Din Mohammad comes under which of the following?
Select correct option:
Backward integration
Product development
Forward integration
Horizontal integration

Which of the following directs at developing new products before competitors do at improving product quality or at improving manufacturing processes to reduce costs?
Select correct option:
Marketing
Opportunity analysis
Research and development
Management

BCG matrix is used in matching stage of strategy formulation framework. It plots the business units along which of the following dimensions?
Select correct option:
Market share and industry strength
Market share and market growth rate
Market growth rate and competitive position
Market growth rate and environment stability

Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?
Select correct option:
Conglomerate diversification
Forward integration
Backward integration
Horizontal diversification

Which of the following strategy generally entails large research and development expenditures?
Select correct option:
Market penetration
Retrenchment
Forward integration
Product development

All of the following are Porter's Generic Strategies EXCEPT:
Select correct option:
Differentiation
Hybrid
Cost leadership
Focus

Which strategic management analytical tool has four quadrants based on two dimensions i.e. competitive position and market growth?
Select correct option:
Internal-External Matrix
SPACE Matrix
Grand Strategy Matrix
QSPM

All of the following are the limitations of BCG Matrix EXCEPT:
Select correct option:
It is one-dimensional to view every business as a star, cash cow, dog or question mark.
BCG can not be developed if a firm have at less than least three years data.
The businesses that fall in the centre of BCG matrix can not be classified.
Other variables such as size of market and competitive advantages are not considered.

Which of the following stages of strategy formulation framework involves developing Internal-External (IE) Matrix?
Select correct option:
Input stage
Output stage
Matching stage
Decision stage

What will be the location of a firm in Grand strategy matrix, if it is operating in rapidly growing market and holds weak competitive position?
Select correct option:
Quadrant I
Quadrant II
Quadrant III
Quadrant IV

All of the following would be considered as opportunities for a business, EXCEPT:
Select correct option:
Removal of international trade barriers
Emergence of unfulfilled customer need
Emergence of substitute products
MGT603-STRATEGIC MANAGEMENT quiz
Due date for quiz submission is Thursday, April 09, 2009.
1. Buyers can exercise high bargaining power over their suppliers
under which one of the following conditions?
a. There are few buyers in the market
b. When there are many good substitutes
c. They have few suppliers to choose from
d. There is a high concentration of suppliers

2. The process of monitoring performance, comparing it with
goals, and correcting any significant deviations is known as:
a. Planning
b. Controlling
c. Organizing
d. Leading

3. Which category of ratios measures a firm’s ability to meet
maturing short-term obligations?
a. Profitability
b. Leverage
c. Liquidity
d. Activity
4. Which of the following 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. Management
d. Research and development

5. A planning horizon of two to five years applies to which of the
following?
a. Top management
b. Middle management
c. Lower management
d. All levels of management

6. Assessment of competitive rivalry DOES NOT
include an
understanding of which of the following?
a. Mergers and acquisitions in industry
b. The management structure of an organization
c. Market growth rates
d. Exit barriers and operational efficiency of compet

7. Which of the following marketing entity is NOT an
intermediary?
a. Brokers
b. Agents
c. Producers
d. Vendors

8. Investment decisions are also known as:
a. Capital structure
b. Business finance
c. Dividend policy
d. Capital budgeting

9. Which one of the following area can be the weakness of a firm?
a. Ineffective Marketing
b. Changing lifestyle
c. High oil prices
d. Increasing pollution
10. What is the systematic gathering, recording, and analyzing of
data about problems relating to the marketing of goods and
services?
a. Management
b. Marketing Research
c. Planning
d. Market segmentation

11. Which of the following are repetitive and symbolic
activities/events used to strengthen culture in organizations?
a. Folktales
b. Rites
c. Rituals
d. Values

12. Departmentalization can be done on the basis of many factors
EXCEPT:

a. Functions
b. Strategic business units
c. Divisions
d. Number of employees
13. The general condition for competition that influences business
firms which provide similar products and services is known as:
a. Industry environment
b. Remote environment
c. International environment
d. External environment

14. In Competitive Profile Matrix, the rating “4” indicates what?
a. Major weakness
b. Major strength
c. Minor strength
d. Minor weakness

15. Which of the following ties all business functions together and
provides the basis for all managerial decisions?
a. Marketing
b. Technology
c. Information
d. Workforce

16. Which of the following refers to determining the best capital
structure for the company?
a. Restructuring decisions
b. Strategic decision
c. Investment decision
d. Financing decisions

17. All of the following are the outputs of a system EXCEPT:
a. Data
b. Tables
c. Charts
d. Graphs
18. Lack of access to key distribution channels indicates which of
the following?
a. Strength
b. Weakness
c. Opportunity
d. Threat

19. Which of the following marketing functions includes test
marketing?
a. Selling products/services
b. Customer analysis
c. Product/service planning
d. Distributing

20. The total weighted score of IFE matrix below “2.5” characterizes
an organization as:
a. Organization is externally weak
b. Organization is internally strong
c. Organization is externally strong
d. Organization is internally weak
1. Buyers can exercise high bargaining power over their suppliers under which one of the following conditions?
b. When there are many good substitutes


2. The process of monitoring performance, comparing it with goals, and correcting any significant deviations is known as:
b. Controlling (Page # 59)


3. Which category of ratios measures a firm’s ability to meet maturing short-term obligations?
c. Liquidity


4. Which of the following directs at developing new products before competitors do at improving product quality or at improving manufacturing processes to reduce costs?
d. Research and development (Page # 71)


5. A planning horizon of two to five years applies to which of the following?
a. Top management (Page # 55)


6. Assessment of competitive rivalry DOES NOT include an understanding of which of the following?
a. Mergers and acquisitions in industry (not sure)


7. Which of the following marketing entity is NOT an intermediary?
c. Producers (Page # 62)


8. Investment decisions are also known as:
d. Capital budgeting (Page# 64)


9. Which one of the following area can be the weakness of a firm?
a. Ineffective Marketing


10. What is the systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services
b. Marketing Research? (Page # 62)


11. Which of the following are repetitive and symbolic activities/events used to strengthen culture in organizations?
c. Rituals


12. Departmentalization can be done on the basis of many factors
EXCEPT:
d. Number of employees (Page # 56)


13. The general condition for competition that influences business firms which provide similar products and services is known as:
d. External environment


14. In Competitive Profile Matrix, the rating “4” indicates what?
b. Major strength (page # 46)


15. Which of the following ties all business functions together and provides the basis for all managerial decisions?
c. Information (Page # 73)


16. Which of the following refers to determining the best capital structure for the company?
d. Financing decisions (Page # 64)


17. All of the following are the outputs of a system EXCEPT:
a. Data (page # 74)


18. Lack of access to key distribution channels indicates which of the following?
b. Weakness
http://www.infodriveindia.com/Exim/Guid ... lysis.aspx


19. Which of the following marketing functions includes test marketing?
c. Product/service planning (Page # 61)


20. The total weighted score of IFE matrix below “2.5” characterizes an organization as:
d. Organization is internally weak (page # 47)

Best of luck