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
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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