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Mgt603 Strategic Management Mcqs Vuabid
Mgt603 Strategic Management Mcqs Vuabid
Mgt603 Strategic Management Mcqs Vuabid
2.
3.
Which strategies aim at improving internal weaknesses by taking advantage of external
opportunities?
a. SO
b. WO
c. SW
d. ST
e. WT
a. Two
b. Four
c. Six
d. Eight
e. Nine
6. In the SPACE analysis, what does a (+6, +3) strategy profile portray?
a. A strong industry
b. An unstable environment
c. A stable environment
d. A weak industry
e. A weak financial position
7. Selling all of a company’s assets in parts for their tangible worth is called
a. Joint venture.
b. Divestiture.
c. Concentric diversification.
d. Liquidation.
e. Unrelated integration
8. Which stage of the strategy-formulation framework involves the Quantitative Strategic
Planning Matrix?
a. Stage 1
b. Stage 2
c. Stage 3
d. Stage 4
e. Stage 5
9.
10. Which strategy should be implemented when a division is responsible for an organization’s
overall poor performance?
a. Backward integration
b. Divestiture
c. Forward integration
b. Cost leadership
c. Related diversification
11. What analytical tool has four quadrants based on two dimensions: competitive position and
market growth?
13. _______ is not a major factor that commonly prohibits effective resource allocation.
a. Starting over.
b. De-layering.
c. Diversifying.
d. Job security
a. Employee involvement.
b. Cost reduction.
c. Increased morale.
d. Increased number of hierarchical levels in the organization.
a. Production/operations
b. Human resource
c. Accounts
d. Sales
9) A well-designed strategic-management system can fail
a. If insufficient attention is given to the human resource
dimension
b. When actively involve as many managers and employees as possible
in the process
c. Both of the mentioned options
d. None of the mentioned options
a. Strategies.
b. Strengths.
c. Weaknesses.
d. Policies.
e. Opportunities.
4. When an industry relies heavily on government contracts, which forecasts can be the
most important part of an external audit.
a. economic
b. political
c. technological
d. competitive
e. Multinational
a. Analyzing competitors
b. Analyzing financial ratios
c. Analyzing available technologies
d. Studying the political environment
e. Analyzing social, cultural, demographic and geographic forces
a. Rites
b. Emotions
c. Rituals
d. Sagas
e. Symbols
7. Which individuals are most responsible for the success and failure of an organization?
a. Strategists
b. Financial planners
c. Personnel directors
d. Stakeholders
e. Human resource managers
a. Measurable.
b. Continually changing.
c. Reasonable.
d. Challenging.
e. Consistent.
a. laws
b. rules
c. policies
d. procedures
e. goals
Opportuni
ty
pa
ra
me
ter
s
Opportuni
ty
ide
nti
fic
ati
on
Opportuni
ty
cir
cul
ati
on
Question No: 2 ( Marks: 1 ) - Please choose one
New business venturing refers to the:
Cr
eat
io
n
of
ne
w
bu
sin
ess
wi
thi
n
an
exi
sti
ng
or
ga
niz
ati
on
Tr
an
sfo
rm
ati
on
of
or
Question No: 3 ( Marks: 1 ) - Please choose one
Internal beliefs appear to differentiate entrepreneurs from the general public, but not from:
Au
dit
ors
M
an
ag
ers
Mentors
Tycoons
Question No: 4 ( Marks: 1 ) - Please choose one
Germany
Pakistan
France
Argentina
Return on
eq
uit
y
Return on
in
ve
st
me
nt
Net profit
ma
rgi
n
rat
io
Acid test
Question No: 6 ( Marks: 1 ) - Please choose one
The ---------------indicates whether the business plan is economically feasible.
Fi
na
nci
al
pla
n
M
ar
ket
in
g
Pl
an
Or
ga
niz
ati
on
al
Pl
an
Question No: 7 ( Marks: 1 ) - Please choose one
If a new venture is a manufacturing operation, a -------------------is necessary.
M
ar
ket
in
g
Pl
an
Or
ga
niz
ati
on
al
Pl
an
Pr
od
uct
io
n
pla
n
Question No: 8 ( Marks: 1 ) - Please choose one
Which of the following is not the characteristic of a marketing plan?
Pr
ov
ide
a
str
ate
gy
to
ac
co
m
pli
sh
the
in
di
vi
du
al’
s
mi
ssi
on
.
Be
ba
se
d
on
fac
Question No: 9 ( Marks: 1 ) - Please choose one
In pricing strategy, -------------------- is one of the many factors is to be considered:
Costs
Dollars
Rupees
None of
the
ab
ov
e
Question No: 10 ( Marks: 1 ) - Please choose one
In a --------------------------, the death of the owner results in the termination of the business.
Partnershi
p
Corporati
on
pr
op
rie
tor
shi
p
Li
mi
ted
pa
rtn
ers
Question No: 11 ( Marks: 1 ) - Please choose one
In the corporation, new capital can be raised by:
St
oc
k
ma
y
be
sol
d
as
eit
he
r
vo
tin
g
or
no
nv
oti
ng
Bo
nd
s
ma
y
be
sol
d
Question No: 12 ( Marks: 1 ) - Please choose one
The financial plan provides the ------------basis for budgeting.
Both of the
op
tio
ns
gi
ve
n
None of the
op
tio
ns
gi
ve
n
Question No: 13 ( Marks: 1 ) - Please choose one
Large positive cash flows may need to be invested in:
Sh
ort
ter
m
so
ur
ce
s
Lo
ng
ter
m
so
ur
ce
s
Bo
th
of
the
op
tio
ns
are
Question No: 14 ( Marks: 1 ) - Please choose one
As long as the selling price is greater than the variable costs per unit, some contribution can be
made to cover:
Va
ria
ble
co
sts
Fi
xe
d
co
sts
Costs
ass
oci
ate
d
wi
th
ass
ets
Question No: 15 ( Marks: 1 ) - Please choose one
Three
►
1). Strategic management process activate in the sequence of _____________
2). KAPKAL Power’s interested to achieve a 10 percent return on equity (ROE) in their
core electric utility, 14 percent ROE on water resource operations, and 15 percent
ROE on support businesses. It is _________________
a) Mission
b) Strategy
c) Objective
d) Policy
a) Mission
b) Vision
c) Strategy implementation
d) None of above
4). “Walls” ice cream purchase “Polka” in order to capture the market. Such kind of
integration is called:
a) Forward Integration
b) Backward Integration
c) Horizontal Integration
d) Product Development
5). “To improve economic strength of society and function as a good corporate citizen
on a local, state, and national basis in all countries in which we do business”.
This is a mission statement that contains:
a) Self-concept
b) Economic concern
c) Products or Services
d) Concern for Public Image
a) Environmental scanning
b) Strategy formulation
c) Strategy control
d) Strategy evaluation
7). Forecasting tools can be broadly categorized into two groups. Those are:
a) Qualitative, Operational
b) Quantitative, Operational
c) Qualitative, Quantitative
d) Regression and time series analysis
8). ______________ identifies a firm's major competitors and their particular strengths
and weaknesses in relation to a sample firm's strategic position.
9). Organizing means an identifiable group of people contributing their efforts towards
the attainment of same goal. It is important at the time of:
a) Environmental scanning
b) Strategy formulation
c) Strategy Implementation
d) Strategy evaluation
10). ____________ involves assessing the costs, benefits, and risks associated with
marketing decisions.
a) Customer analysis
b) Opportunity analysis
c) Marketing Research
d) Product and Service Planning
a. Stage-1
b. Stage-2
c. Stage-3
d. Stage-4
a. Two
b. Three
c. Four
d. Five
a. BCG Matrix
b. IE Matrix
c. SPAC E matrix
d. None of given option
4). A strong financial position utilizes to improve the working condition of the firm;
such strategy is called _______________.
a. SO Strategy
b. SW Strategy
c. TW Strategy
d. None of given option
a. Weakness; Opportunities
b. Weakness; Operations
c. Wealth; Opportunities
d. None of given option
9). Space Matrix contains four quadrants framework, the upper left quadrant contain
____________ strategy.
a. Aggressive
b. Conservative
c. Defensive
d. Competitive
10) By using the given table what will be the correct average score of industrial strength
in “SPACE” matrix?
a. (3+2+4) / 3
b. (5+3+3) / 3
c. (5+3+2+4) / 4
d. (5+4) / 2
e. III, V, or VII
f. V, or VII
g. II, V, or VII
h. I, II, or IV
e. Hundred
f. One
g. Ten
h. None of given option
Most companies have strategies, but according to recent studies, between 70% and 90%
of organizations that have formulated strategies fail to execute them.
A firm desire to increase profit at least 15% every year for the foreseeable future is
________________ objective.
a. Corporate level
b. Functional level
c. Overall organizational
d. Both a and b
a. Conflict
b. Stress
c. Functional stress
d. None of given option
a. Divisionally
b. Decentralized
c. Centralized
d. Both a and b
The _______________ has its own business strategy, objectives and competitors and
these are often differ from parent company.
a. Gain sharing
b. Profit sharing
c. Employee stock ownership plan
d. Non of given option
1. What analytical tool has four quadrants based on two dimensions: competitive position and
market growth?
2. For companies located in Quadrant III of the Grand Strategy Matrix, the first strategy
recommended is
e. Starting over.
f. Delayering.
g. Diversifying.
h. Job security.
i. Integrating.
e. Employee involvement.
f. Cost reduction.
g. Increased morale.
h. Increased number of hierarchical levels in the organization.
i. Increased innovation.
8. What pay strategy requires employees or departments to establish performance targets, such as
“if actual results exceed objectives then all members get bonuses.”
a. Profit sharing
b. Bonus system
c. Salary
d. Gain sharing
e. Hourly wage system
9. Although Quadrant _____ companies are growing, according to the Grand Strategy Matrix,
they are unable to compete effectively, and they need to determine why the firm’s current
approach is ineffective and how the company can best change to improve its
competitiveness.
a. I
b. II
c. III
d. IV
e. V
10. The top row of a QSPM consists of alternative strategies derived from all of these except:
Q1: What are the characteristics of restructuring? List any five characteristics.
5 Marks
5. What category of ratios includes return on total assets and return on stockholders’ equity?
a. leverage
b. activity
c. profitability
d. growth
6. Which of the following is not a key question that can reveal internal strengths and
weaknesses of the marketing department?
e. Does the firm have an effective sales organization?
f. Are markets segmented effectively?
g. Are the firm’s products and services priced appropriately?
h. Does the firm have good liquidity?
10. What are historical narratives describing the unique accomplishments of a group and
its leaders, usually in heroic terms.
a. rites
b. sagas
c. stories
a. R&D partnerships.
b. Joint-bidding consortia.
c. Cross-licensing agreements.
d. Cross-manufacturing agreements.
e. Marketing plans.
2. Strategy analysis and choice largely involves making __________ decisions based on
__________ information.
f. Long-term; Short-term
g. Subjective; Objective
h. Short-term; Long-term
i. Subjective; Short-term
j. Objective; Subjective
3. Which stage of the strategy formulation framework contains the Internal-Factor Evaluation
Matrix?
a. Input stage
b. Analysis stage
c. Matching stage
d. Decision stage
a. Output stage
o. SO
p. WO
q. SW
r. ST
s. WT
a. Two
a. Four
b. Six
c. Eight
d. Nine
7. In the SPACE analysis, what does a (+6, +3) strategy profile portray?
f. A strong industry
g. An unstable environment
h. A stable environment
i. A weak industry
j. A weak financial position
8. Selling all of a company’s assets in parts for their tangible worth is called
a. Joint venture.
b. Divestiture.
c. Concentric diversification.
d. Liquidation.
e. Unrelated integration.
f. Stage 1
g. Stage 2
h. Stage 3
i. Stage 4
j. Stage 5
10. Which strategy should be implemented when a division is responsible for an organization’s
overall poor performance?
a. Backward integration
b. Divestiture
c. Forward integration
d. Cost leadership
e. Related diversification
1. What can be defined as the art and science of formulating, implementing and evaluating
cross-functional decisions that enable an organization to achieve its objectives?
a. Strategy formulation
b. Strategy evaluation
c. Strategy implementation
d. Strategic management
e. Strategic leading
v. Rites
w. Emotions
x. Rituals
y. Sagas
z. Symbols
3. Which individuals are most responsible for the success and failure of an organization?
f. Strategists
g. Financial planners
h. Personnel directors
i. Stakeholders
j. Human resource managers
a. forestry
b. pharmaceuticals
c. textiles
d. metals
e. paper
f. measurable.
g. continually changing.
h. reasonable.
i. challenging.
j. consistent.
a. laws
b. rules
c. policies
d. procedures
e. goals
7. According to Greenley, strategic management offers all of these benefits except that
f. Communities
g. Banks
h. Suppliers
i. Employees
j. All of these
5. In BCG matrix, the reason for choosing relative market share, rather than just profits, is that
a. It carries more information than just cash flow
b. It shows where the brand is positioned against its main competitors
c. It indicates where it might be likely to go in the future
d. All of the mentioned options
6. Those firms must make some drastic changes quickly to avoid further demise and possible
liquidation that fall in__________ of grand strategy matrix
a. Qurdant-1
b. Qurdant-2
c. Qurdant-3
d. Qurdant-4
8. Annual objectives
a. Are not critical to success
b. Serve as guidelines for action, directing and channeling efforts and activities of
organization members
c. Are not important for employee motivation and identification
d. Do not provide a basis for organizational design
9. Annual objectives
a. Need not to be consistent
b. Should be easily achievable
c. Should be measurable
d. Should be confidential and not to be communicated throughout the organization
10. Which of the following resources is used by all organizations to achieve desired objectives?
a. Financial resources,
b. Physical resources,
c. Human resources
d. All of the mentioned options
Strategic management is
a. A pure science.
b. Based mainly on intuition.
c. Needed mainly when organizational performance falls.
d. Based on the use of quantitative and qualitative information.
Business week reports that firms using mission statements have a __________ return on
certain financial measures than those without such statements.
a. 30%
b. 35%
c. 40%
d. 45%
a. Analyzing competitors
b. Analyzing financial ratios
c. Analyzing available technologies
d. Studying the political environment