Quiz-I: Introduction to Strategic Management

Time: 40 mins
Name of the Student: Bishal Sapkota Section: A

Bold and underline the correct option of all the questions and upload in HUB within given time.

1. When the ABC Corporation makes decisions that assist it in formulating and implementing plans that are
designed to achieve its objectives, it is most likely engaging in _________.
A. strategic management
B. strategy utilization
C. strategic processing
D. strategic formality

2. Of the following, which one is least likely to be considered a critical task associated with an organization's
strategic management process?

A. Evaluation of the process for use in future decision making

B. Evaluation of options relative to the company's mission
C. Decreasing the levels of hierarchy present within the company's management structure
D. Developing a set of short-term objectives that are compatible with the company's grand strategies

3. The We Have It Your Way Organization has an established "game plan" for its business operations. This game
plan reflects the company's awareness of how and where it should compete and against whom the competition
should take place. It can be stated this organization has an established _________.
A. level of strategy
B. formality
C. planning mode
D. strategy

4. Of the following, which statement would most likely not be considered a dimension of strategic issues?
A. Strategic issues require large amounts of the firm's resources.
B. Strategic issues always impact the firm's long-term income.
C. Strategic issues require the firm's external environment be considered.
D. Strategic issues are future-oriented.

5. The decision making hierarchy of a firm typically contains _______ levels.

A. 3
B. 4
C. 2
D. Infinite

6. Which level of the decision making hierarchy is best identified as being composed principally of business and
corporate managers who must translate the statements of direction and intent into concrete objectives and
strategies for the individual business units?
A. Corporate level
B. Strategic level
C. Business level
D. Functional level
 7. An organization's board of directors and administrative officers are most likely to be found at the ________ in its
decision making hierarchy.
A. corporate level
B. strategic level
C. business level
D. functional level

8. At which hierarchy level would the decisions made be more value-oriented, more conceptual, and less concrete?
A. Functional level
B. Corporate level
C. Strategic level
D. Business level

9. Common functional-level decisions would include all of the following except ___________.
A. generic versus brand name labeling
B. amount of inventory to keep
C. type of production equipment
D. how to best enhance the firm's image and fulfill its social responsibilities

10. ________ refers to the degree in which participants, responsibilities, authority, and discretion in decision making
are specified.
A. Formality
B. Strategic management
C. Planning mode
D. Company mission

11. At times very large organizations utilize strategic evaluation as part of their comprehensive, formal planning
system. This approach, identified by Henry Mintzberg, is best referred to as the _________.
A. adaptive mode
B. strategic management process
C. entrepreneurial mode
D. planning mode

12. Of the following, which statement regarding the benefits of strategic management is incorrect?
A. An accurate assessment of the impact of strategy formulation requires nonfinancial criteria to be evaluated.
B. The behavioral consequences of strategic management are similar to those found in a firm guided by an
authoritarian leader.
C. Strategy formulation activities enhance the firm's ability to prevent problems.
D. Resistance to change is reduced.

13. Which one of the following would not be considered a type of unintended negative consequence of involvement
in strategy formulation?
A. Management members may become neglectful of their operational responsibilities due to time constraints.
B. Managers may shirk their responsibility for the decisions made.
C. Employees may become disappointed and disillusioned over unattained expectations.
D. The involvement of employees in strategy formulation improves their understanding of the productivity-
reward relationship and thus heightens their motivation.

14. Firms with multiple products, markets, or technologies tend to utilize _______ strategic management systems.
 A. more complex
B. less formal
C. more formal
D. less complex

15. Which one of the following would not be considered a key component of the strategic management model?
A. empowering policies
B. functional tactics
C. corporate level hierarchy
D. company mission

16. When the Somewhat Unique Company analyzes the quantity and quality of its financial, human, and physical
resources, it is most likely conducting a/an _________.
A. internal analysis
B. long-term objective formulation
C. grand strategy formulation
D. external analysis

17. Strategic analysis and choice in single or dominant product/service businesses center on which of the following?
A. Evaluation of the process for use in future decision making
B. Evaluation of options relative to the company's mission
C. Identifying strategies that are most effective in building sustainable competitive advantage
D. Development of short-term objectives to guide the operations

18. The XYZ Organization has a statement of means for how it will accomplish its objectives. XYZ is most likely to
have a package of long-term objectives known as its ___________.
A. generic strategy
B. grand strategy
C. mission statement
D. functional tactics

19. ___________ is concerned with tracking a strategy as it is being implemented so as to detect problems in its
underlying premises.
A. Continuous improvement
B. Empowerment
C. Strategic control
D. Strategic management

20. When a firm is facing conditions that are constantly changing and those conditions can and do affect the
interrelated and interdependent strategic activities of that firm, it can be stated the business is most likely
operating in a/an _______ environment.

A. dynamic
B. grand strategy
C. isolated
D. static

21. The process of strategic analysis is aided by a number of tools. These tools include:
A. SWOT analysis
 B. Porters Five Forces Analysis
C. PEST analysis
D. All of the above

22. According to Michael Porter, what are the two main factors which can lead to a significant competitive advantage?
A. Higher costs and differentiated products
B. Lower costs or differentiated products
C. Lower costs or homogeneous products
D. Lower costs or economies of scale.

23. Which of the following should be associated with a core competence?

A. Provide recognizable benefits to consumers
B. Not be easy for other firms to copy - eg: a patented design.
C. Be applicable to a range of different products and markets
D. All of the above.

24. Strategic choice is concerned with:

A. Identifying strategic options and deciding on one strategy that is best.
B. Identifying strategic options, evaluating them and then choosing between them.
C. Identifying strategic options, analyzing them, in order to avoid making mistakes.
D. None of the above.

25. The process of allocating and controlling resources to support the chosen strategies is called:
A. Strategic choice
B. Strategic analysis
C. Strategic implementation
D. All of the above.

26. Which of the following statements most accurately defines 'corporate strategy'?
A. Corporate strategy is the organisation's long-term plan
B. Corporate strategy can be described as an organisation's sense of purpose
C. Corporate strategy can be described as the identification of the purpose of the organisation and the plans and
actions to achieve that purpose
D. Corporate strategy is an organisation's attempt to add value to its inputs while matching its internal activities
to evolving environmental conditions

27. What is meant by the term 'competitive advantage'?

A. The strength of the brand
B. A skill or attribute that will allow the organisation to survive and prosper against the competition
C. A unique ability
D. An organisation's ability to differentiate itself

28. What do strategists mean when they talk about 'adding value'?
A. Transforming inputs into outputs whose value exceeds the combined cost of those inputs
B. An increase in share price
C. Re-valuing fixed assets
D. Cutting prices to offer better value for money

29. Which of the following is not a key element of strategic decisions?

 A. Sustainability
B. Offers competitive advantage
C. Clear accountability
D. Vision

30. Which of the following statements best describes an 'emergent approach' to strategy development?
A. An approach to strategy development based on consensus emerging from ongoing dialogue
B. An approach whereby strategy is unplanned and can only be understood by looking at patterns in past actions
C. A view of strategy development characterized by luck rather than effective management
D. A view of strategy development characterized by small steps and continuous revision as new learning is
acquired about a continuously changing environment

31. John Kay draws an important distinction between two types of management issues - what are they?
A. Strategic and operational
B. Production scheduling and inventory control
C. Financial and people issues
D. Employee motivation and employee rewards

32. _________means performing these activities better - that is, faster, or with fewer inputs and defects - than rivals.
A. Productivity Frontier
B. Operational Effectiveness
C. Strategic Positioning
D. Operational Excellence

33. __________attempts to achieve sustainable competitive advantage be preserving what is distinctive about a company
it means performing different activities from rivals, performing similar activities in different ways.
A. Strategic Implementation
B. Strategic Options
C. Strategic Positioning
D. Strategic Advantage

34. The __________ is constantly shifting outward as new technologies and management approaches are develpoed and
as new inputs become available.
A. Productivity Frontier
B. Operational Effectiveness
C. Strategic Positioning
D. Operational Excellence

35. The entire system of activities

A. Competitive advantage grows out of?
B. Why is OE alone not sufficient?
C. What is strategy (complete answer)?
D. Productivity frontier