P.C.E.T.

'S
S. B. PATIL INSTITUTE OF MANAGEMENT
301 : STRATEGIC MANAGEMENT

MULTIPLE CHOICE QUESTIONS

Q. NO.

QUESTION

OPTION A

OPTION B

OPTION C

ANSWER

OPTION D

Strategies are formulated in the strategic management stage that occurs immediately after
_________

the assessment of internal strengths and weaknesses

implementation of the strategy

control of the strategy

none of the above

The strategy originally planned by top management is called __________.

grand strategy

realized strategy

emergent strategy

none of the above

The notion that successful firms tend to be the ones that adapt to influences in their
industries is based on __________.

IO theory

resource-based theory

contingency theory

none of the above

The notion of distinctive competence is consistent with __________.

IO theory

resource-based theory

contingency theory

none of the above

In order to contribute to sustained competitive advantage, firm resources should be

__________.

valuable and rare

not subject to perfect imitation

without strategically relevant resources

all of the above

Which of the following is not a characteristic of strategic decisions?

They are long term in nature.

They involve choices.

They do not involve trade-offs.

all of the above

Which of the following is an element of a firm's remote external environment?

Competition

Suppliers

Government agencies

Economic and social conditions

Which of the following is NOT a part of a firm's immediate external environment?

Technological development

Competitors

Suppliers

Government agencies

The immediate external environment includes:

Competitors

S. B. U. s

Divisions

Management

10

The set of decisions and actions resulting in the formulation and implementation of plans
designed to achieve a company's objectives is defined as:

Strategic policy

Business policy

Strategic management

Tactics

11

Strategic management involves the _____, directing, _____ and controlling of a company's
strategy-related decisions and actions.

Financing; marketing

Planning; financing

Marketing; planning

Planning; organizing

12

Large-scale, future-oriented plans, for interacting with the competitive environment to

achieve company objectives refers to its

Strategy

Goals

Competitive analysis

Dynamic policies

13

Strategic issues require which level of management decisions?

Operative

Top

Front-line

Middle

14

Strategic decisions ostensibly commit the firm for

1-2 years

The short term

3-4 years

A long time, typically five years

15

Which of the following applies to strategic issues?

Consider only the firm's internal environment

Are future oriented

Concern allocation of insignificant amounts of company resources

Do not have long-term impact on the firm's prosperity

16

Strategic decisions are based on what managers _____, rather than on what they _____.

Forecast; know

React to; anticipate

Know; forecast

Compromise with; analyze

17

Typically how many strategic decision levels are in the corporate decision-making
hierarchy?

5 or more

18

To a large extent, attitudes at the corporate level reflect the concerns of

Stockholders and society at large

Top managers

The CEO

The government

19

In a multi-business firm, ______ -level executives determine the businesses in which the
firm should be involved.

Business

Functional

Corporate

Operative

20

The strategic management process is:

Stationary

Dynamic

Static

Radical

21

Strategic management processes need which of the following to enhance future decision
making?

Testing

Feedback

Discontinuity

Projecting

22

Influential individuals and groups that are vitally interested in the actions of the business are
Stockholders
called

Stakeholders

Strategists

Customers

23

_____ is concerned with tracking a strategy as it is being implemented, detecting problems

Restructuring strategy
or changes in its underlying premises and making necessary adjustments

Strategic control

Internal analysis

Functional tactics

24

Description of the company's product, market and technological areas of emphasis is

contained in the

Assessment of the external environment

Company profile

Company mission

Interactive opportunity analysis

25

The external environment consists of:

The operating environment

Managers

Employees

Owners

26

Analysis of the quantity and quality of the company's financial, human and physical
resources is a part of

Internal analysis

Mission statement

External environment analysis

Corporate goals

Q. NO.

QUESTION

OPTION A

OPTION B

OPTION C

OPTION D

ANSWER

27

Managers at the _____ level typically have principal responsibilities for developing
environmental analysis and forecasting, establishing business objectives and developing
business plans prepared by staff groups.

Corporate

Functional

Operational

Business

28

The ideal strategic management team includes decision makers from

All three company levels (corporate, business and functional)

Just the functional level since they are closest to the customers

Just the corporate and business levels given that they focus on
doing the right thing

Just the top management since they understand the big picture

29

Decisions concerning plant location, distribution channels, geographic coverage and market
The corporate level
segmentation are typically made at:

The business level

The functional level

The front-line operational level

30

Which level of decisions encompasses greater risk, cost and profit potential?

Business

Corporate

Functional

Operational

31

Which strategic level is typically responsible for developing annual objectives and shortterm strategies?

Functional level

Corporate level

Business level

Board of Directors level

32

The vision and mission statement can often be found

in annual reports

on customer receipts.

on supplier invoices.

on community news bulletins.

33

Which of these basic questions should a vision statement answer?

What is our business?

Who are our employees?

Why do we exist?

What do we want to become?

34

Which statement should be created first and foremost?

Strategic

Vision

Objectives

Mission

35

The ideal length of a vision statement is:

one page.

several paragraphs

one sentence.

as long as necessary to convey the message

36

. What is the first step in the comprehensive strategic-management model?

Developing vision and mission statements

Performing external audits

Performing internal audits

Measuring and evaluating performance

37

According to the comprehensive strategic-management model, which step needs to be

completed immediately following the establishment of long-term objectives?

Developing vision and mission statements

Performing external audits

Performing internal audits

Generating, evaluating, and selecting strategies

38

The purpose of a mission statement is to declare all of these except:

a reason for being

an annual financial plan

a statement of purpose.

whom it wants to serve

39

As indicated in the strategic-management model, a clear _______ is needed before

alternate strategies can be formulated and implemented.

long-term objective

short-term objective

policy

mission statement

40

A businesses mission is the foundation for all of the following except:

priorities

strategies.

plans.

employee wage rates

41

The mission statement answers which question?

What is our business?

How can we improve ourselves?

What do we want to become?

Who are our stakeholders?

42

The vision statement answers which question?

What is our business?

How can we improve ourselves?

What do we want to become?

Who are our stakeholders?

43

The process of developing a vision and mission statement includes which of these as the
first activity?

A request to modify the current document

Ask managers to read selected articles about mission statements.

Ask managers to prepare a mission statement for the organization

Have a brainstorming session on whether the organization should

have a mission statement.

44

All stakeholders:

have claims and concerns about an organization, but these claims

and concerns vary.

have the same claims and concerns about an organization.

have ownership rights in an organization.

have the same voting rights in an organization.

45

Which group would be classified as a stakeholder?

Banks

Suppliers

Employees

All of these

46

In the BCG approach, ________ are high-share, high-growth businesses or products. They
need heavy investment to finance rapid growth. When their growth slows down, they turn
into ________.

stars; cash cows

cash cows; stars

dogs; cash cows

stars; question marks

47

Management must think hard about which ________ it should try to build into stars, and
which should be phased out.

question marks

dogs

cash cows

stars

48

Unlike strategic-planning efforts of the past, which were conducted primarily by senior
managers, today's strategic planning is ________.

limitation-free

product oriented

centralized

decentralized

49

Which component in a mission statement represents an organization's basic beliefs, values,

Self-concept
aspirations, and ethical priorities?

Culture

Philosophy

Concern for public image

50

_______ is the task of developing and maintaining an overall company strategy for long-run
Long-range planning
survival and growth.

Annual market planning

Strategic planning

Short-term planning

value-delivery network

mission statement

strategic plan

mission; vision

objectives; strategies

short-term objectives; long-term objectives

51

52

Caffe Nero has an annual plan in place to deal with the company's current SBUs and their
operations. However, as a growth-oriented firm, Cafe Nero is interested in both domestic
profit analysis
and international markets. This requires Cafe Nero to constantly monitor the environment
and adapt to the opportunities with which it is presented. To take advantage of its constantly
The _________ answers the question "What do we want to become?" whereas
vision statement; mission statement
_________answers the question "What is our business?"

53

BCG in BGC Matrix stands for:

Boston Calmette Group

British Consulting Group

Boston Consulting Group

Boston Corporate Group

54

What does DOG symbolize in BGC matrix:

Introduction

Growth

Maturity

Decline

55

What does STAR symbolize in BGC matrix:

Introduction

Growth

Maturity

Decline

Q. NO.

QUESTION

OPTION A

OPTION B

OPTION C

OPTION D

ANSWER

56

What does QUESTION MARK symbolize in BGC matrix:

Remain Diversified

Invest

Stable

Liquidated

57

What does CASH COW symbolize in BGC matrix:

Remain Diversified

Invest

Stable

Liquidated

58

The BCG matrix is based on:

Industry Attractiveness & Business Strength

Industry Growth Rate & Business Strength

Industry Attractiveness & Relative Market Share

Industry Growth Rate & Relative Market Share

59

The GE 9 CELL MODEL is based on:

Industry Attractiveness & Business Strength

Industry Growth Rate & Business Strength

Industry Attractiveness & Relative Market Share

Industry Growth Rate & Relative Market Share

60

In BCG Matrix, what is the label of the Horizontal Axis

Relative Market Share

Business Strength

Industry Growth Rate

Market Growth Rate

61

In BCG Matrix, what is the label of the Vertical Axis

Relative Market Share

Business Strength

Industry Growth Rate

Market Growth Rate

62

In GE 9 Cell Model, what is the label of the Horizontal Axis

Relative Market Share

Industry Attractiveness

Industry Growth Rate

Market Growth Rate

63

Another name for GE 9 Cell Model is:

Three Colour Matrix

Stop Light Matrix

Strategic Portfolio Matrix

Colour Light Matrix

64

The term 'corporate strategy' concerns strategy and strategic decisions:

In certain types of organisations

At all levels in an organisation

Developed by the senior management in an organisation

In the private sector only

65

A key characteristic of strategic decisions is:

They are likely to be concerned with, or affect, the long-term

direction of an organisation

They are normally definite decisions about the future of the

organisation

They identify specific areas of strategic interest for the

management of an organisation

They result in better organisational performance

66

Strategic fit means:

Creating opportunities by building on resources and competences

Having a balanced portfolio which meets customer requirements

Having a balanced portfolio which meets customer requirements

Meeting the expectations of stakeholders

67

The purpose of strategy is to provide:

Direction and scope of an organisation over the long-term, which

The strategic direction for an organisation in the foreseeable future achieves advantage for an organisation within a changing
environment to meet the needs of markets

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

A set of standards which all employees in an organisation should

strive to attain

68

It is possible to identify different levels of strategy in an organisation, these are:

Corporate; strategic business unit; operational

Corporate and functional

Strategic and tactical

Corporate and business unit

69

All of the following would be steps or concerns in the process of strategic planning EXCEPT: Designing a sound business portfolio

Setting supporting objectives

Checking to see if an advertising spot had been run in its allotted

time slot

Defining a clear company mission

70

The process of developing and maintaining a strategic fit between the organization's goals
and capabilities and its changing marketing opportunities is called:

Tactics

Strategic planning

Market segmentation

The marketing concept

71

With respect to the steps in the strategic planning model, which of the following steps
follows "defining the company mission"?

Planning marketing and other functional strategies

Designing the business portfolio

Setting company objectives and goals

Examining the global strategies of the firm

72

If an SBU were to be characterized as one that showed low-growth and had a low-share of
the business and products in its industry, this SBU would be classified as a ____________
according to the BCG growth-share matrix.

Cash Cow

Dog

Question Mark

Star

73

What is the BCG Matrix ideal for analyzing?

Companies with more than one division

All companies

Companies with annual sales greater than $1 million

Companies with annual sales of less than $1 million

74

Most likely, a cash cow was what in the past?

Cash Cow

Dog

Question Mark

Star

Both A & B

being a time-consuming and costly analysis

75

The BCG Matrix limitations include

not reflecting divisional or industry growth over time

not allowing a company to be classified as somewhere in between

two categories

76

A possible and desirable future state of an organization is called:

Mission

Vision

Strategy implementation

Strategy formulation

objectives of the firm

objective for Single strategic Business Unit (SBU) allocation of

resources

objectives for specific function allocation of resources among

different operations

With in that functions

Marketing and sales

Services

77

Corporate level strategy deals with:

From the following activity which does not comes under the primary activities of value Chain
analysis:
Operations

Technology development

79

Which of the following can be identified as a best statement that represents a firms big
picture
statements, describing a desired end state, general in scope and not restrictive?

Corporate philosophy statement

Company creed

Vision statement

Mission statement

80

Bargaining power of customers is high if:

Differentiation of competitors product is low

Switching costs are low for substitute products

The buyer has little information about the market

The buyer requires a high quality product for own production

81

Which would be classified as a stakeholder?

Communities

Banks

Suppliers

All of them

82

What is the most appropriate method of categorizing stakeholders?

Relative power only

Relative level of interest only

Relative power and interest

Relative power, interest, and amount of stock held

83

Which of the following statements best describes scenario planning?

Exploring future possibilities by looking at potential outcomes from

Considering three likely scenarios for future developments, and
particular causes and
devising a strategy according to the likeliest outcome
seeking to explain why things might occur

Helping managers come to terms with the threats and

opportunities within the company by devising a possible scenario
to eliminate the threats and capitalize on the opportunities

Planning the best way to secure the scenario outcome that would
benefit the company most

84

How is an organization most likely to secure and sustain a position of strength in its
associated
environment?

By seeking to influence and manage their external environment

By seeking to influence and manage their internal environment

By seeking to restrict changes within their environment

78

By seeking to influence their competitors' environment

Q. NO.

85

86

87

88

89

QUESTION

Which of the following would not be considered a barrier to entry?

Which of the following factors does not increase the bargaining power of a supplier?

Which of the following is NOT a major element of the strategic management process?

Which of the following statements is NOT true regarding corporate strategies?

Strategic stretch involves:

OPTION A

OPTION B

OPTION C

OPTION D

ANSWER

High innovation

Concentration of distribution channels

Steep experience curves

Concentration of suppliers

Substitutability

Concentration of suppliers

A buyer is important to the supplier

High switching costs

Formulating strategy

Implementing strategy

Evaluating strategy

Assigning administrative tasks

They are concerned with the direction the organization is headed

They are concerned with the business(es) that the organization is

in and the businesses they
want to be in

They are concerned with the broad and more long-term issues of
the organization

They are concerned with how the organization is going to compete

in a specific business or industry

The fit between the organisation and its environment

Creating new opportunities by stretching and exploiting capabilities

The skills of the senior management
in new ways

Utilising all the resources of an organisation to their full capacity

Key skills required for success in a particular business

Activities that underpin competitive advantage and are difficult for

competitors to imitate or
obtain

Question Mark

Star

90

What are core competences?

Resources which critically underpin competitive advantage and

that others cannot obtain

Activities and processes needed to meet customers' minimum

requirements and therefore to
continue to exist

91

Under which cell would SBU's (Strategic Business Units) with high growth rate but low
relative market share come under?

Cash Cow

Dog