1. Which of these is not a reason why some firms do no strategic planning? a. b. c. d.
Laziness Competitive leadership Honest difference of opinion Poor reward structures
2 .Developing a vision and mission, identifying an organization's external opportunities and threats, and determining internal strengths and weaknesses are all __________ activities. a. b. c. d.
strategy-formulation strategy-implementation long-range planning short-range planning
3. The means by which long-term objectives will be achieved are a. b. c. d.
mission statements strategies. vision statements. long-term goals.
4. The _________ answers the question "What do we want to become?" whereas _________answers the question "What is our business?" a. b. c. d.
vision statement; mission statement short-term objectives; long-term objectives objectives; strategies mission; vision
5. What is the recommended length of an effective mission statement? a. b. c. d.
One page Less than 200 words One sentence of 10 to 20 words. There is no recommendation. It can be as long as the management wants.
6. __________ represents the average score in both EFE and CPM. a. b. c. d.
2.0 3.0 2.5 4.0
7. All of these, except__________, are part of Porter's competitive forces in industry analysis. Strategic Management a. b. c. d.
potential entry of new competitors bargaining power of suppliers development of substitute products bargaining power of union
8. __________ is based on the assumption that the future will be just like the past. [Hint] a. b. c. d.
Delphi forecasts Econometric models Linear regression Scenario forecasts
9. Shorthand words use to capture a vision or to reinforce old or new values in a firm's culture are called a. b. c. d.
Metaphors Sagas Rituals Symbols
10. In an IFE Matrix, the weight range is from __________ and the ratings range from _________. a. b. c. d.
to 1.0; 1.0 to 4.0 to 1.0; 0.0 to 4.0 to 3.0; 1.0 to 2.0 to 4.0; 0.0 to 1.0
11. An effective information system collects, codes, stores, synthesizes, and _________ information in such a manner that it answers important operating and strategic questions. a. b. c. d.
Prints Distributes Presents Filters
12. __________ is adding new, unrelated products or services for present customers. a. b. c. d.
Concentric diversification Horizontal diversification Conglomerate diversification Product development
13. Two reasons for mergers and acquisitions are a. b. c. d.
to increase managerial staff and to minimize economies of scale. to reduce tax obligations and increase managerial staff. to create seasonal trends in sales and to make better use of a new sales force. to provide improved capacity utilization and to gain new technology.
14. Which strategy would be effective when the new products have a counter cyclical sales pattern compared to an organization's present products? a. b. c. d.
Forward integration Retrenchment Horizontal diversification Market penetration
15. A coordinate of _________ in the SPACE Matrix is a defensive profile. a. b. c. d.
+1, +1 -4, -2 +5, -1 -2, +3
16. The first option that should be considered for firms in Quadrant II of the Grand Strategy Matrix is the __________ strategy. a. b. c. d.
integration intensive defensive diversification
17. The pie slices within the circles of a _________ reveal the percent of corporate profits contributed by each division. a. b. c. d.
QSPM BCG Matrix SPACE Matrix Grand Strategy Matrix
18. All of the following are stated advantages of a divisional structure except a. b. c. d.
it allows local control of local situations. it leads to a competitive climate within a firm. accountability is clear. it promotes specialization of labor.
19. The average employee performance bonus is __________ percent of pay for individual performance, _________ percent of pay for group productivity, and __________ percent of pay for company-wide profitability. a. b. c. d.
10.5; 5.5; 2.8 6.8; 5.5; 6.4 10.8; 8.5; 12.4 15.4; 12.4; 10.4
20. __________ approach involves delivering parts and materials as needed rather than being stockpiled
a. b. c. d.
JIT MBO PERT CAD-CAM
Answer of MCQ 1-b
2-a 14-a
3-b 15-b
4-a 16-b
5-d 17-b
6-c 18-d
7-d 19-b
8-c 20-a
9-a
10-a
11-c
12-b
13-d
1. The three stages of strategic management are a. b. c. d.
strategy formulation, strategy implementation, and strategy execution. strategy formulation, strategy execution, and strategy assessment. strategy formulation, strategy implementation, and strategy evaluation. stratify assessment, strategy execution, and strategy evaluation.
2. Job titles that refer to strategists include which of the following? a. b. c. d.
External audit Owner, entrepreneur, executive director, and accountant Chief executive officer, salesman, dean, and lawyer Owner, dean, president, and executive director
3. Relative deficiency or superiority is important information in performing which activity? a. b. c. d.
External audit Allocating resources Internal audit Evaluating strategies
4. How often should strategic-management activities be performed? a. Annually
b. Quarterly c. Monthly d. Continuously
5. Who is most responsible for developing, communicating, and enforcing the code of business ethics for a firm? a. b. c. d.
Strategists Line managers Staff managers All managers
6. Strategy-implementation activities include a. b. c. d.
conducting research. measuring performance. preparing a TOWS matrix. establishing annual objectives.
7. In a large organization, strategic management activities occur at what level(s)? a. b. c. d.
Corporate and divisional only Divisional Strategic business unit only Functional, divisional, and corporate
8. Conducting research, integrating intuition with analysis, and making decisions are all __________ activities. a. b. c. d.
strategy-formulation strategy-implementation long-range planning short-range planning
9. Which of these questions is addressed by a mission statement?
a. b. c. d.
What do we want to become? What is our business? How many employees must we have? Who do we want to serve?
10. Internal strengths and weaknesses are usually a. b. c. d.
the major cause of organizational demise or success. controllable activities within an organization. most important for CEOs and the board of directors. not as important as external opportunities and threats.
11. An organization's strengths and weaknesses are determined relative to a. b. c. d.
its strategic business units. government competitors external opportunities and threats.
12. __________ are the means by which long-term objectives will be achieved a. b. c. d.
Mission statements Strategies Vision statements Long-term goals
13. Strategic management allows an organization to be more a. b. c. d.
complacent proactive authoritarian reactive
14. __________ may be the most important benefit of strategic management. a. Profit
b. Commitment c. Understanding d. Order
15. __________ is one of the reasons for poor or no strategic planning in organizations. a. b. c. d.
Prior good experience Fear of success Low expense Self-interest
Answer of MCQ 1-c
2-d 14-c
3-c 15-d
4-d
5-a
6-d
7-d
8-a
9-b
10-b
1. Matching of internal resources against external demands forms part of: a. b. c. d. e.
strategic objectives. strategic definition. strategic implementation. strategic analysis. none of the above.
2. Auditing the existing applications portfolio is part of: a. b. c. d. e.
strategic analysis. strategic definition. strategic implementation. strategic objectives. none of the above.
11-c
12-b
13-b
3. Strategic option selection forms part of: a. b. c. d. e.
strategic analysis. strategic objectives. strategic definition. strategic implementation. none of the above.
4. An example of a metric from the process component of the balanced scorecard is: a. b. c. d. e.
procurement lead times. customer satisfaction index. margin. training hours per employee. none of the above.
5. For an existing organization, typical stages of e-commerce development are: a. b. c. d. e.
image and product information, customer support, transactions, information collection. information collection, image and product information, customer support, transactions. transactions, image and product information, information collection, customer support. image and product information, information collection, customer support, transactions. none of the above.
6. The most appropriate order to conduct these planning activities is: a. b. c. d. e.
situation analysis, strategy, objective setting, tactics. situation analysis, objective setting, tactics, strategy. situation analysis, objective setting, strategy, tactics. situation analysis, objective setting, tactics, strategy. none of the above.
7. The emergent approach to strategy entails: a. largely sequential development of strategy analysis and development. b. an interrelated development of strategy analysis and development. c. an unrelated development of strategy analysis and development.
d. both the first and third answer above. e. none of the above.
8. A buy-side supplier threat of e-commerce is: a. b. c. d. e.
drives down cost of commoditized products. reduction in customer loyalty. less flexibility in switching procurement. increase in cost of supplies. none of the above.
9. Developing new digital products is: a. b. c. d. e.
a product development strategy. a market development strategy. a market penetration strategy. both the first and third answers above. none of the above.
10. The online revenue contribution indicates: a. b. c. d. e.
the proportion of online sales in a market. the actual audience of a website. the number of visitors a site receives. the potential audience of a website. none of the above.
Answer of MCQ 1-d
2-a
3-c
4-a
5-d
6-c
7-b
8-c
9-a
10-a
1 The term 'corporate strategy' concerns strategy and strategic decisions:
A) In certain types of organisations. B) At all levels in an organisation. C) Developed by the senior management in an organisation. D) In the private sector only.
2 A key characteristic of strategic decisions is: A) They are likely to be concerned with, or affect, the long-term direction of an organisation. B) They are normally definite decisions about the future of the organisation. C) They identify specific areas of strategic interest for the management of an organisation. D) They result in better organisational performance..
3 Strategic fit means: A) Creating opportunities by building on resources and competences. B) Having a balanced portfolio which meets customer requirements. C) Tailoring strategies to address forces in the business environment. D) Meeting the expectations of stakeholders.
4 The purpose of strategy is to provide: A) The strategic direction for an organisation in the foreseeable future. B) Direction and scope of an organisation over the long-term, which achieves advantage for an organisation within a changing environment to meet the needs of markets. C) Direction and scope of an organisation over the long-term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations. D) A set of standards which all employees in an organisation should strive to attain.
5 It is possible to identify different levels of strategy in an organisation, these are: A) Corporate; strategic business unit; operational. B) Corporate and functional. C) Strategic and tactical. D) Corporate and business unit.
6 An organisation's mission can be defined as: A) The overriding purpose in line with the values or expectations of stakeholders. B) The overriding purpose regardless of the values or expectations of stakeholders. C) The organisation's business plan. D) The desired future state of the organisation.
7 The purpose of analysing an organisation's strategic position is: A) To understand the operational and corporate requirements of an organisation. B) To understand the strategic position of the organisation in terms of its strategic capability and the expectations and purposes of stakeholders. C) To understand the strategic position of the organisation in terms of its external environment, the strategic capability of the organisation and the expectations and purposes of stakeholders. D) To evaluate the resources necessary to translate strategy into action.
8 Strategic choices require an understanding of: A) the underlying bases for future strategy at business unit and corporate levels; the options for developing strategy in terms of directions and methods of development. B) the business environment, the competition and the strategic capability of the organisation.
C) The key drivers of change. D) The organisational strengths and weaknesses.
9 Strategy in a public sector organisation differs from a private sector company because: A) Planning horizons are determined by political considerations, rather than market conditions. B) They do not have customers. C) They do not have to make a profit. D) They do not have stakeholders.
10 Strategic drift, where strategies progressively fail to address the strategic position of the organisation, is frequently followed by: A) Transformational change. B) Demise. C) Transformational change or demise. D) A change of CEO.
11 A design view of strategy refers to: A) The systematic, rational way in which strategy is always developed in organisations. B) The pulling together of ideas that develop from different parts of the organisation. C) Pulling together the different decisions made throughout an organisation so as to develop a coherent overall strategy. D) The deliberate positioning of the organisation through a rational, analytic, structured and directive process.
12 The experience lens suggests that strategies develop. A) Through the individual experience of a few top managers or strategic planners.
B) Through the shared assumptions in the organisation often thought of as the organisational culture. C) Through the shared assumptions across similar sorts of organisations within an industry (or organisational field). D) All of the above.
13 The ideas lens suggests that ideas for new strategies develop as a result of: A) The ideas of top managers and strategic planners. B) The variety and diversity of ideas competing with each other within an organisation. C) A fast changing and often unpredictable environment requiring new responses from organisation. D) B and C above.
14 The ideas lens suggest that new strategies take shape in organisations: A) Because the new ideas that develop from within the organisation are selected by formal evaluation through strategic planning systems. B) Because new ideas are tried out in the market and either succeed or don’t. C) Because there are sufficient people in the organisation that find a new strategy attractive. D) All of the above.
15 Which of the following statements describes how the design, experience and ideas lenses help explain strategy development processes? A) Strategic planning processes are explained through the design lens. The experience lens and ideas lens are not relevant. B) The way in which organisational politics contributes to strategy development is explained through the experience lens. C) Logical incrementalism is best understood in terms of the ideas lens.
D) All three lenses help explain different strategy development processes that are observable in organisations.
Answer of MCQ 1-b
2-a 14-d
3-c 15-d
4-c
5-a
6-a
7-c
8-a
9-a
10-c
11-d
12-d
13-d
1 Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis? A) Organizational strengths may not lead to competitive advantage B) SWOT gives a one-shot view of a moving target C) SWOT's focus on the external environment is too broad and integrative D) SWOT overemphasizes a single dimension of strategy
2 A marketing department that promises delivery quicker than the production department's ability to produce is an example of a lack of understanding of the A) synergy of the business units. B) need to maintain the reputation of the company. C) organizational culture and leadership. D) interrelationships among functional areas and firm strategies.
3 XYZ Corp. is centering on the objective of low-cost, high quality, on-time production by curtailing idle productive facilities and workers. The XYZ Corp. is taking advantage of a ____________ system. A) Just-In-Time (JIT) B) Last In, First Out (LIFO) C) First In, First Out (FIFO) D) Highly mechanized
4 Which of the following lists is comprised of support activities: A) human resource management, information systems, procurement, and firm infrastructure B) customer service, information systems, technology development, and procurement C) human resource management, technology development, customer service, and procurement D) human resource management, customer service, marketing and sales, and operations
5 Although firm infrastructure is quite frequently viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following except: A) negotiating and maintaining ongoing relations with regulatory bodies. B) marketing expertise increasing a firm's revenues and enabling it to enter new markets. C) effective information systems contributing significantly to a firm's overall cost leadership strategy. D) top management providing a key role in collaborating with important customers.
6 The competencies or skills that a firm employs to transform inputs into outputs are: A) tangible resources.
B) intangible resources. C) organizational capabilities. D) reputational resources.
7 An array of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its customers and suppliers. Such competitive advantages are based upon A) physical uniqueness. B) path dependency. C) social complexity. D) tangible resources.
8 A company's ability to meet its short-term financial obligations is measured by which of the following categories? A) liquidity ratios B) profitability ratios C) activity ratios D) leverage ratios
9 The "balanced scorecard" supplies top managers with a _____________ view of the business. A) long-term financial B) detailed and complex C) simple and routine D) fast but comprehensive
Answer of MCQ 1-c
2-d
3-a
4-a
5-b
6-c
7-c
8-a
9-d
1 Which of the following is NOT an influence on organisational purposes? A) Minor stakeholders. B) Business ethics. C) Corporate governance. D) The organisational mission.
2 The governance framework determines: A) Whom the organisation is there to serve. B) Whom the organisation is there to serve and how the purposes and priorities of the organisation should be decided. C) The legal framework for the administration of the organisation. D) The regulatory framework in which the organisation operates.
3 The main purpose of corporate governance is: A) To separate ownership and management control of organisations. B) To maximise shareholder value. C) To separate ownership and management control of organisations and to make organisations more visibly accountable to a wider range of stakeholders. D) To ensure that regulatory frameworks are adhered to.
4 The two-tier board of an organisation is particularly useful:
A) In ensuring that the there is a counterbalance to the power of managers. B) For managers to assert their power. C) In improving operational efficiency. D) In ensuring that employees can determine strategies for the organisation.
5 The desire for more accountability of public sector organisations has resulted in: A) Pressure on all public sector organisations to be operated on a profit making basis. B) Public sector managers to become more professional. C) Public sector organisations to develop plans for their strategic development. D) An increased proportion of independent members on governing bodies.
6 Stakeholders are the individuals or groups who: A) Depend on the organisation to fulfil their own goals and on whom the organisation depend. B) Are shareholders in key competitors. C) Dominate the strategy development process in an organisation. D) Determine operational issues.
Answer of MCQ 1-d
2-b
3-c
4-a
5-d
6-a
