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Compendium of MCQs of Strategic Management




Compendium of MCQs of Strategic Management

1.         Who is responsible for developing, communicating, and enforcing the code of business ethics for a firm?
(a)    Strategists                                      (b) Line managers
(c) Staff managers                              (d) All managers
(Ans -a)

(b)      Strategy-implementation activities include
(a)      conducting research                                 (b) measuring performance
(c)  preparing a TOWS matrix             (d) establishing annual objectives
(Ans -c)

(c)    The three stages of strategic management are
(a)    Strategy formulation, strategy implementation, and strategy execution.
(b)   Strategy formulation, strategy execution, and strategy assessment.
(c)    Strategy formulation, strategy implementation, and strategy evaluation.
(d)   Strategy assessment, strategy execution, and strategy evaluation.
(Ans -c)

(d) Job titles that refer to strategists include which of the following?
(a)    External audit
(b)   Owner, entrepreneur, executive director, and accountant
(c)    Chief executive officer, salesman, dean, and lawyer
(d)   Owner, dean, president, and executive director
(Ans -c)

(e)      Relative deficiency or superiority is important information in performing which activity?
(a)    External audit                                     (b) Allocating resources
(c) Internal audit                                (d) Evaluating strategies
(Ans -a)

(f)       How often should strategic-management activities be performed?
(a)    Annually                                 (b) Quarterly
(c)  Monthly                                       (d) Continuously
(Ans -d)

(g)      In a large organization, strategic management activities occur at what level(s)?
(a)      Corporate and divisional only                        (b) Divisional
(c) Strategic business unit only                  (d) Functional, divisional, and corporate
(Ans -d)

(h)      Conducting research, integrating intuition with analysis, and making decisions are all __________ activities.
(a)      strategy-formulation                           (b) strategy-implementation
(c)  long-range planning                             (d) short-range planning
(Ans -a)

(i)        Which of these questions is addressed by a mission statement?
(a)      What do we want to become?
(b)      What is our business?
(c)      How many employees must we have?
(d)     Who do we want to serve?
 (Ans -a)

(j)     Internal strengths and weaknesses are usually
(a)                            the major cause of organizational demise or success.
(b)                           controllable activities within an organization.
(c)                most important for CEOs and the board of directors
(d)               not as important as external opportunities and threats
(Ans -b)
(k)   An organization's strengths and weaknesses are determined relative to
(a)    its strategic business units.                                                (b) government
(c)  competitors                                                                       (d) external opportunities and threats
(Ans -c)

(l)     __________ are the means by which long-term objectives will be achieved
(a)    Mission statements                                                            (b) Strategies
(c)   Vision statements                                                            (d) Long-term goals
(Ans -b)

(m) Strategic management allows an organization to be more
(a)    complacent                                                                        (b) proactive
(c)   authoritarian                                                                     (d) reactive
(Ans -b)

(n)   __________ may be the most important benefit of strategic management

(a)    Profit                                                                     (b) Commitment
(c) Understanding                                                       (d) Order
(Ans -d)

(o)   __________ is one of the reasons for poor or no strategic planning in organizations.
(a)Prior good experience                                             (b) Fear of success
(c)  Low expense                                                                     (d) Self-interest
(Ans -a)

(p)   Strategic management differs from business policy through its heavier emphasis on
(a)    efficient utilization of assets.                                (b) . scanning the internal environment
(c )       formulating general guidelines                                    (d) historical concerns
(e)    scanning the external environment.
(Ans -e)

(q)   Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is

(a)    basic financial planning                                         (b) internally-oriented planning
(c )       strategic management                                     (d) forecast-based planning
(e)    externally-oriented planning
(Ans -d)

(r)     All of the following reflect trends due to the rise of the Internet except

(a)   changes in market access and branding
(b)   changing competition
(c)   shift of power to the consumer
(d)   the transformation of companies
(e)   protectionist borders
 (Ans -e)

(s)    ________ theory argues that senior executives over time tend to view the corporation as an extension of themselves

(a)   Goal setting                                                                       (b) Motivation
(c )       Agency                                                                                    (d) Stewardship
(e ) Population ecology
(Ans -d)

(t)     The vast majority of inside directors are from all but one of the following:


(a)    lower-level operating employees                     (b) vice-president of operational units
       (c ) chief executive officer                                   (d) president of the corporation
       (e ) vice-president of functional units
     (Ans -a)

(u)   What is codetermination?

(a)    when minority shareholders concentrate their votes
(b)   occurs when one or more individuals on one board also serve on other boards
(c)    process by which both management and the board establish corporate strategic management
(d)   the inclusion of a corporation's employees on its board
(e)    when all board members are also employed by the corporation
     (Ans -a)


(v)   Which societal force regulates the values, mores, and customs of society?

(a)   political-legal forces                (b) economic forces
       (c ) sociocultural forces                (d) labor forces
       (e ) technological forces
               (Ans -c)

(w)  The activities that a corporation does exceedingly well are known as

(a) corporate capabilities         (b) distinctive competencies
             (c ) core competencies            (d) key performance factors
             (e ) critical success factors
               (Ans -c)

(x)    ________ is more valuable because it provides companies with a sustainable competitive advantage that is harder for competitors to imitate.

(a)    Imitable knowledge                      (b) Durable knowledge
            (c ) Tacit knowledge                           (d) Transferable knowledge                                                                                                   (e ) Explicit knowledge
               (Ans -c)

(y)   An organization's structure is

(a)   often represented by an organizational chart.
(b)   the physical building of the organization.
(c)   the acceptable behavior demanded by the organization of its employees.
(d)   the patterns of beliefs of the employees.
(e)   the raw material assets of an organization
(Ans -a)


(z)    All of the following reflect criticisms of the a(n) analysis except

(a)  use of no weights to reflect priorities.
(b)  generation of lengthy lists.
(c)  a rational link to strategy implementation.
(d)  its only requirement is one single level of analysis.
(e)  ambiguity in words and phrases
      (Ans -c)

(aa)The technique that illustrates how management can match the external opportunities and threats with its strengths and weaknesses to yield four sets of strategic alternatives is called a (an)

(a)    EFAS Table                                              (b) SFAS Table
            (c ) IFAS Table.                                              (d) Issues Priority Matrix                                                                                                       (e ) TOWS Matrix
               (Ans -e)

(bb)          In a TOWS Matrix, ST Strategies

(a)    are ways to get strategists to think "out of the box."
(b)   attempt to take advantage of opportunities by overcoming weaknesses.
(c)    are basically defensive and primarily act to minimize weaknesses and avoid threats.
(d)   are generated by thinking of ways in which a company or business unit could use its                                                                             
strengths to take advantage of opportunities.
(e)    consider a company's or unit's strengths as a way to avoid threats
(Ans –d)

(cc) Which of the following is not one of the questions that development of a competitive strategy should raise?
a)      Should we compete by garnering political support of influential leaders?
b)      Should we compete on a cost basis?
c)      Should we compete through differentiation of our products or services?
d)     Should we compete head-to-head with major competitors?
e)      Should we compete by finding a niche market that we can satisfy which is superior to that of the competition?
a.       (Ans -a)

(dd)         Which kind of corporate strategy deals with the manner in which the firm coordinates activities, transfers resources, and cultivates capabilities among product lines and business units?

(a)    functional strategy                                                            (b) portfolio strategy
            (c ) parenting strategy                                                 (d) directional strategy                                                                                                           (e ) cooperative strategy
                   (Ans -b)

(ee)A firm which gets most of its requirements from an outside supplier that is under its partial control is what type of vertical integration?

(a)    long-term contracts                                                           (b) backwards integration
            (c ) taper integration                                                    (d) quasi-integration                                                                                               (e ) full integration
               (Ans -d)

(ff) The controversy surrounding external versus internal growth finds

a.       there appears to be no financial advantage to either.
b.      acquisitions have a lower survival rate than new internally generated business ventures.
c.       strategic alliances are superior to both.
d.      internal growth appears to be superior financially to external growth.
e.       external growth appears to be superior financially to internal growth.
(Ans -e)

(gg)          The first functional areas to be heavily outsourced were

a)      customer service and sales.
b)      management services and information systems.
c)      R&D and customer service.
d)     manufacturing and marketing.
e)      finance and manufacturing.
(Ans -a)

(hh)          Which four parameters appear in the Ashridge Mission Model?

(a)    Policies; plans; controls and constraints
(b)   Aims; goals; objectives; constraints
(c)    Purpose; values, strategy; standards of behaviour
(d)   Environment; resources; beliefs; ethical standards
(e)    Strengths; weaknesses; opportunities; threats
(Ans -d)

(ii)   Which type of pricing takes advantage of the demand curve while the product is still novel and competitors are few?


(a)penetration pricing                                (b) demand pricing
            (c ) competitive pricing                             (d) skim pricing
            (e ) loss-leader pricing
               (Ans -d)


(jj)   Withdrawal, consolidation and building are examples of ....?

(a)Strategy alternatives                       (b) Directional strategies
            (c ) Grand strategies                            (d) Strategic directions
            (e ) Corporate strategies                      (f) None of the above
               (Ans -c)

(kk)          Which statement below is not true of strategy implementation?

(a)    Implementation is often considered after strategy has been formulated.
(b)   It is the process by which strategies and policies are put into action through the development of programs, budgets, and procedures.
(c)    Strategy implementation should be kept separate and distinct from that of strategic management.
(d)   Strategy implementation is the sum total of the activities and choices required for the execution of a strategic plan.
(e)    Strategy formulation and strategy implementation are two sides of the same coin.
(Ans -c)

(ll)   A group of companies pursuing similar strategies is termed as:
a.       Strategic group
b.      Strategic team
c.       Strategic intent
d.      None of the above
(Ans – a)

(mm)      The term core competency was given by:-

(a) Gary Hamel & C.K. prahlad
(b) Peter Drucker
(c) Michael Porter
(d) None of the above
(Ans –a)

(nn)          Which guideline for successful downsizing suggests that the organization does not rely on the simple elimination of postponable expenses in the hope that the environment will improve?
a.       Invest in remaining employees.
b.      Develop value-added jobs to balance out job elimination.
c.       Plan for long-run efficiencies.
d.      Eliminate unnecessary work.
e.       Contract out work that others can do cheaper
                    (Ans - c)

(oo)          Most new developments that threaten existing business practices and technologies come from 

(a) outside one's own industry                        (b) one's current competitors
      (c) within one's own corporation                    (d ) within one's own industry
  (Ans - d)

(pp)          The involvement of the customer in the commercialization of a new technology is known as

(a) technology customization              (b) developmental manufacturing
       (c ) co-development                           (d) lead technology
(e ) technological continuity
  (Ans -d)

(qq)          What is the term that refers to the development of completely new products?

(a) technology customization              (b) flexible manufacturing
       (c ) incremental innovation                (d) innovative technology
(e ) manufacturing technology
  (Ans -c)

(rr)  What term describes the situation where a corporation finances the costs of developing a new technology by coordinating its R&D effort with that of other firms?

(a) vertical integration                         (b) R&D outsourcing
       (c ) corporate entrepreneurship                      (d) strategic alliance
(e ) venture affiliation
             (Ans - e)

(ss) What is the basic difference between the small business firm and the entrepreneurial venture?

(a) the type of operation
(b)the fundamental views on growth and innovation
(c) the amount of market share controlled by the business
      (d )the types of goods or services provided by the business
(Ans -b)


(tt)  A key change in the decision-making process for new-ventures as contrasted with the decision-making process for established companies is the addition to

(a)    the scanning of the external environment
(b)   the implementation step
(c)    the scanning of the internal environment
(d)   the analysis of strategic factors
(e)    the development of the basic business idea
(Ans - d)

(uu)          According to Drucker's definitions, which one of the following is NOT one of the industry sources of innovation?

(a)  the unexpected                                          (b) process need
       (c ) technological discontinuity                                  (d) incongruity
(e ) changes in industry or market structure
  (Ans -c)

(vv)          Strategic management has dealt primarily with what type of organization in the past?

(a)    socialistic organizations                            (b) profit-making firms
       (c ) government organizations                       (d) nonprofit organizations
(e ) none of these
  (Ans -b )

(ww)      Which one of the following is not true of the relationship between the not-for-profit organization and the    person receiving the service?

(a)    Sponsors provide partial to total funding of needed revenues
(b)  Not-for-profit organizations can be partially or totally dependent on sponsors for funding.
(c)  Not-for-profit organizations tend to be totally dependent on sales of its products or services, and are therefore extremely interested in pleasing its customers
(d)  In most instances, the sponsors receive none of the services
(e)  The recipient of the service typically does not pay the entire cost of the services thus requiring a sponsor to contribute funds
(Ans -c)

(xx)          Which one of the following is not one of the four complications to strategy formulation?
(a)    Professionalism simplifies detailed planning but adds rigidity
(b)   An integrated planning focus tends to shift from results to resources
(c)    External environmental factors cannot be predicted
(d)   Goal conflicts interfere with rational planning
(e)    Ambiguous operating objectives create opportunities for internal politics and goal displacement.
(Ans -b)





Work Sheet  2

OBJECTIVE TYPE QUESTIONS

1. Which of the following is true about business strategies?
 a. An organization should stick with its strategy for the life of the business.
 b. All firms within an industry will adopt the same strategy.
 c. Well defined missions make strategy development much easier.
 d. Strategies are formulated independently of SWOT analysis.
 e. Organizational strategies depend on operations strategies.

2. The fundamental purpose for the existence of any organization is described by its
a. policies
b. mission
c. procedures
d. strategy
e. tactics

3. Which of the following activities takes place once the mission has been developed?
 a. The firm develops alternative or back-up missions in case the original mission fails.
 b. The functional areas develop their functional area strategies.
 c. The functional areas develop their supporting missions.
 d. The ten OM decision areas are prioritized.
 e. Operational tactics are developed.

4. Which of the following statements about organizational missions is false?
 a. They reflect a company's purpose.
 b. They indicate what a company intends to contribute to society.
 c. They are formulated after strategies are known.
 d. They define a company's reason for existence.
 e. They provide guidance for functional area missions.

5. The impact of strategies on the general direction and basic character of a company is
a. short ranged
b. medium range
c. long range
d. temporal
e. minimal

6. 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
e. define the functional areas required by the organization

7. Which of the following is true?
 a. Corporate mission is shaped by functional strategies.
 b. Corporate strategy is shaped by functional strategies.
 c. Functional strategies are shaped by corporate strategy.
 d. External conditions are shaped by corporate mission.
 e. Corporate mission is shaped by functional strategies.

8. According to the authors, which of the following strategic concepts allow firms to achieve their missions?
a. productivity, efficiency, and quality leadership
b. differentiation, cost leadership, and quick response
c. differentiation, quality leadership, and quick response
d. distinctive competency, cost leadership, and experience
e. differentiation, distinctive competency, quality, leadership, and capacity

9. A firm can effectively use its operations function to yield competitive advantage via all of the following except
a. customization of the product
b. set equipment utilization goals below the industry average
c. speed of delivery
d. constant innovation of new products
e. maintain a variety of product options

10. Which of the following is not an operations strategy?
a. response
b. low-cost leadership
c. differentiation
d. technology
e. marketing

11. Which of the following is not a key way in which business organizations compete with one-another?
a. production cost
b. quality
c. product duplication
d. flexibility
e. time to perform certain activities

12. A strategy is a(n)
a. set of opportunities in the marketplace
b. broad statement of purpose
c. simulation used to test various product line options
d. plan for cost reduction
e. action plan to achieve the mission

13. Which of the following statements best characterizes delivery reliability?
a. a company that always delivers on the same day of the week
b. a company that always delivers at the promised time
c. a company that delivers more frequently than its competitors
d. a company that delivers faster than its competitors
e. a company that has a computerized delivery scheduling system



14. Which of the following is an example of competing on the basis of differentiation?
 a. A firm manufactures its product with less raw material waste than its competitors.
 b. A firm's products are introduced into the market faster than its competitors'.
 c. A firm's distribution network routinely delivers its product on time.
 d. A firm offers more reliable products than its competitors.
 e. A firm advertises more than its competitors.

15. Which of the following statements best characterizes delivery speed?
a. a company that uses airlines, not trucks, to move its goods
b. a company that delivers frequently
c. a company that delivers faster than its competitors
d. a company that always delivers on the promised due date
e. a company that has a computerized delivery scheduling system


16. Which of the following is the best example of competing on low-cost leadership?
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
e. a firm advertises more than its competitors

17. 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
e. a firm advertises more than its competitors

18. Which of the following influences layout design?
a. inventory requirements
b. capacity needs
c. personnel levels
d. purchasing decisions
e. all of the above influence layout decisions

19. Response-based competitive advantage can be
a. flexible response
b. reliable response
c. quick response
d. all of the above
e. none of the above

20. Which of these organizations is most apt to have quality standards that are relatively objective?
a. a university
b. a discount retailer
c. a law firm
d. a car manufacturer
e. a bookstore

21. Which of the following is not an operations decision?
a. maintenance
b. price
c. layout design
d. quality
e. inventory

22. Which of these companies is most apt to have quality standards that are relatively subjective?
 a. Chrysler
 b. Dell Computer
c. Sanyo Electronics
d. Harvard University
 e. Whirlpool

23. Which of the following will more likely locate near  their customers?
a. an automobile manufacturer
b. an aluminum manufacturer
c. an insurance company headquarters
d. a medical clinic
e. all of the above will tend to locate near their customers

24. Which of the following statements concerning the operations management decision is relevant to services?
 a. There are many objective quality standards.
 b. The customer is not involved in most of the process.
 c. The work force's technical skills are very important.
 d. Labor standards vary depending on customer requirements.
 e. Ability to inventory may allow the leveling of the output rates.

25. Which of these organizations is likely to have the most important inventory decisions?
a. a marketing research firm
b. a lobbying agency
c. a management consulting firm
d. a restaurant
e. a law firm

26. The PIMS program has identified
a. the operations decisions all organizations must make
b. the distinctive competencies any company needs
c. the characteristics of firms with high "ROI"
d. the corporate decisions any company needs to make
e. all of the above

27. Which of the following is not one of the five PIMS characteristics of high Return on Investment
organizations?
a. high product quality
b. high capacity utilization
c. low investment intensity
d. low direct cost per unit
e. all of the above are PIMS characteristics

28. Optimizing capacity would be most appropriate for which stage in the product life cycle?
a. introduction
b. growth
c. maturity
d. decline
e. retirement

29. Standardization is an appropriate strategy in which stage of the product life cycle?
a. introduction
b. growth
c. maturity
d. decline
e. retirement


30. Cost minimization is an appropriate strategy in which stage of the product life cycle?
a. introduction
b. growth
c. maturity
d. decline
e. retirement

31. Which of the following preconditions does not affect the formulation of an OM strategy?
a. knowledge of each product's life cycle
b. external economic and technological conditions
c. the company's employment benefits
d. competitors' strengths and weaknesses
e. knowledge of the company's strategy

32. Competitive product improvements and options are best introduced in the _____ stage in the product life
cycle.
a. introduction
b. growth
c. maturity
d. decline
e. incubation

33. Which of the following changes does not result in strategy changes?
a. change in the company's financial situation
b. a company's adoption of new technology
c. change in the product life cycle
d. change in the competitive environment
e. change in job scheduling techniques

34. 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
 e. None of the above

35. Which of the following is a key external factor that should be taken into account by a corporate strategy?
a. economic conditions
b. political conditions
c. legal environments
d. competition
e. financial resources

36. All of these preconditions affect an operations management strategy except
a. external economic and technological conditions
b. competitors' strengths and weaknesses
c. accounting policies
d. knowledge of the company's strategy
e. knowledge of each product's life cycle


37. Which of the following statements is true about operations strategy?
 a. It should support the corporate strategy.
 b. It should help achieve the operation's mission.
 c. It should be integrated with the other functional areas' strategies.
 d. It should promote competitive advantage.
 e. All of the above are true.

38. The two internal elements of SWOT analysis are
a. weaknesses and threats
b. opportunities and threats
c. strengths and opportunities
d. strengths and weaknesses
e. strengths and threats

39. Which of these organizations is likely to have the most complex inventory decisions?
a. a marketing research firm
b. a stock brokerage firm
c. a management consulting firm
d. a computer manufacturing company
e. a high school

40. The three steps of the operations manager's job, in order, are
a. develop the strategy, establish the organizational structure, find the right staff
b. develop the strategy, find the right staff, establish the organizational structure
c. find the right staff, establish the organizational structure, develop the strategy
d. find the right staff, develop the strategy, establish the organizational structure
e. establish the organizational structure, find the right staff, develop the strategy

41. When developing the operations strategy for a new manufacturing organization, one of the most important
considerations is that
a. it requires minimal capital investment
b. it utilizes as much automation as possible
c. it utilizes an equal balance of labor and automation
d. it supports the overall competitive strategy of the company
e. none of the above

42. The "new standards of global competitiveness" include all of the following except
a. quality
b. maquiladora
c. timeliness
d. customization

43. "Coca-Cola" is described in the textbook as a _______ product.
a. global
b. domestic
c. service
d. none of the above

44. Cost cutting in international operations can take place because of
a. lower taxes and tariffs
b. lower wage scales
c. lower indirect labor costs
d. less stringent regulations
e. all of the above

45. Which of the following is not a reason for globalizing operations?
a. reduce costs
b. improve supply-chain
c. stockholder approval ratings
d. attract new markets

46. Multinational organizations can shop from country to country and cut costs through
a. lower wage scales
b. lower indirect labor costs
c. less stringent regulations
d. lower taxes and tariffs
e. all of the above

47. The term maquiladora is most synonymous with
a. cheap labor zones
 b. Chinese forced labor camps
c. free trade zones
d. areas that do not meet U.S. standards for  workplace safety and pollution
e. none of the above

48. Which of the following represent reasons for globalizing operations?
a. reduce costs
b. improve supply-chain
c. attract new markets
d. attract and retain global talent
e. all of the above are valid


49. Which of the following does not represent reasons for globalizing operations?
a. reduce costs
b. improve supply-chain
c. reduce responsiveness
d. attract and retain global talent

50. NAFTA seeks to
a. substitute cheap labor in Mexico for expensive labor in the United States
b. curb illegal immigration from Mexico to the United States
c. phase out all trade and tariff barriers between the United States and Mexico
d. phase out all trade and tariff barriers between the United States, Canada, and Mexico

51. Which of the following are typical of the Critical Success Factors used for international facility location
decisions?
a. political and legal factors
b. availability of technology
c. economic factors
d. culture and ethics
e. all of the above

 52. Which of the following is true regarding Critical Success Factors (CSFs)?
 a. The list of critical success factors is the same from one organization to another.
 b. Use of CSFs is one method of determining the country in which to locate a new facility.
 c. The critical success factors must be weighted equally.
d. Critical Success Factors are relevant for strategic planning, but not for Global Operations.

53. Which of the following are not typical of the Critical Success Factors used for international facility location
decisions?
a. political and legal factors
b. location planning
c. economic factors
d. culture and ethics
e. technology

54. Which of the following represent issues of culture and ethics in international operations?
a. bribery
b. supplier punctuality
c. employee stealing
d. protection of intellectual property rights
e. all of the above are culture and ethics issues

55. Which of the international operations strategies involves high cost reductions and high local
responsiveness?
 a. International strategy
 b. Global strategy
 c. Transnational strategy
 d. Multidomestic strategy

56. Which of the international operations strategies involves low cost reductions and low local responsiveness?
 a. International strategy
 b. Global strategy
 c. Transnational strategy
 d. Multidomestic strategy

57. Which of the international operations strategies uses import/export or licensing of existing products?
 a. International strategy
 b. Global strategy
 c. Transnational strategy
 d. Multidomestic strategy
 e. None of the above

58. Which of the international operations strategies uses the existing domestic model globally?
 a. International strategy
 b. Global strategy
 c. Transnational strategy
 d. Multidomestic strategy
 e. None of the above

59. Nestlœ is described in the textbook as a ______ firm.
a. domestic
b. global
c. subsidiary
d. transnational

60. The acronym MNC stands for
a. Mexican National Committee (for international trade)
 b. Maquiladora Negates Competition
c. Maytag-Nestlœ Corporation
d. Multinational Corporation

Answers
1. c

2. b

3. c

4. c

5. c

15. c

16. a

17. c

18. e

19. d

20. d



21. b

22. d

23. d

24. d

25. d

26. c

27. e

28. c

29. c

20. d

31. c

32. b

33. e

34. d

35. d

36. c

37. e

38. d

39. d

40. a


9
41. d

42. b

43 b

44. e

45. c

46. e

47. c

48. e

49. c

50. d

51. e

52. b

53. b

54. e

55. c

56. a

57. a

58. d

59. d

60. d






State whether the following statements are true or false.
a.       The three stages of strategic management are strategy formulation, strategy implementation, and strategy evaluation.
b.      Internal strengths and weaknesses are usually not as important as external opportunities and threats.
c.       Organisations are mostly closed systems that periodically or sporadically interact with the outside environment.
d.      Industry analysis is a part of corporate level strategic analysis.
e.       Policies, procedures, rules and regulations provide guideline to strategy implementation.
f.       Resource is generally allocated from downward to upward.
g.       It is desirable to build in corrective action into strategy implementation.
h.      A challenge of implementing control successfully is that control carries status and power implications.
i.        The nature of strategic evaluation is judgmental.
j.        The increasing use of the internet by customers and businesses poses a threat to firms competing on cost leadership.
k.      Positioning of the firm in an industry is depends upon competitive advantage and competitive scope.
l.        Value is calculated by tabulating all tangible assets of a firm.
m.    In GE nine cell matrix Yellow zone means to “go ahead”.
n.      Competitor analysis deals with the actions and reactions of individual firms within an industry.
o.      For successful strategy implementation there should be contrast between strategy and structure.
p.      A matrix structure is a combination of project and functional structures.
q.      Consonance refers to a strategy delivering specific competitive advantages.
r.        Since evaluation of a strategy is expensive, it should be done only when necessary, and particularly when problem occur.
s.       Generic strategy is a technique of strategic leap control.
t.        Inbound activities and outbound activities are both part of support activities for a firm.


KEY
a)      TRUE
b)      FALSE
c)      FALSE
d)      FALSE
e)      TRUE
f)       FALSE
g)      TRUE
h)      TRUE
i)        TRUE
j)        TRUE
k)      TRUE
l)        FALSE
m)    FALSE
n)      TRUE
o)      FALSE
p)      TRUE
q)      FALSE
r)       FALSE
s)       FALSE
t)        FALSE





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