CHRISTIAN COLLEGES OF SOUTHEST ASIA

Ma-a, Davao City

MIDTERM EXAMINATION IN STRATEGIC MANAGEMENT

1ST SEMESTER
by Elizabeth G. Pasion, PhD Candidate

NAME OF STUDENT: ______________________________Section: ____ Date: _____

I. Multiple Choice. Select the most appropriate out of the various alternatives
given in each of the following questions (1 point each correct answer).

1. It is a continuous process of strategy creation

A. Marketing management
B. Strategic management
C. Production management
D. Creativity and innovation

2. It defines the current purpose of an organization

A. Vision
B. Goals
C. Target
D. Mission statement

3. The type of strategy that differentiate the company’s product or service from rivals in
ways that will appeal to a broad spectrum of buyers..
A. Focused low cost strategy
B. Low-cost provider strategy
C. Broad differentiatio strategy
D. Focused differentiation strategy

4. The study and inetrpretation of the forces existing in the internal and external
environment:
A. Environmental scanning
B. Political analysis
C. Marketing analysis
D. Biologocal scanning

5. These are social forces that influences organizational direction.

A. Changing social structures
B. Cross-cultural diversity
C. Sophisticated lifestyle of people
D. All of these

6. These are some of the economic forces of externl environment, except:

A. Globalization
B. Competitors and suppliers
C. Communication technology
D. Emerging markets

7. Environmental forces includes:

A. Climate change
B. Environment waste and management
C. Preservation of rainforest and marime life
D. All of these
8. Its primary concern is building competitive advantage in a single business unit of a
diversified company
A. Business strategy
B. Corporate strategy
C. Supplier’s strategy
D. Customer’s strategy

9. It is a mode of strategy adopted by organization to achieve its main objectives of in

creasing in volume and turnover.
A. Competitive strategies
B. Life cycle strategies
C. Stability Strategies
D. Growth strategies

10. A share paradigm started to make its impact on corporate strategy.

A. Boston consulting groth model
B. General electric model
C. Global strategies
D. None of these

11. The most common structure that divides the organization to its main activities.
A. Vertical structure
B. Horizontal structure
C. Functional structure
D. Multi structure

12. One of the store strategy mix that provides one service or product line to attract
same line of customers.
A. Variery store
B. Convenience store
C. Conventional supermarket
D. Specialty store

13. This consist mainly of public warehouses that provide great flexibility in performing
the tasks.
A. Advertising agencies
B. Order processing agencies
C. Storage agencies
D. Financial agencies

14. It provides the channel manager with a means for shifting some of the risks inherent
in any business venture.
A. Third party logistics
B. Insurance companies
C. Order processing agencies
D. Marketing research firm

15. The moest obvious and persistent category of variables affecting all members and
participants in the channels.
A. Economic environment
B. Competitive environment
C. Technological environment
D. Legal environment

1
Test II. True or False. Write the word TRUE if the statement is correct and write
the CORRECT ANSWER if it is FALSE/WRONG (1 point each correct answer).

1. A business plan is a comprehensive plan guiding resource allocation to achieve

long-term organization goals.

2. A corporate strategy sets long-term direction for the total enterprise

3. Expansion occurs by entering new business areas in a diversification strategy

4. Retrenchment strategies changes operations to correct weaknesses.

5. Downsizing reduces the scale or mix of operations.

6. Legal environment consists of legislation that has been passed such as

environmental protection, worker safety, etc.

7. Technical component consists of new approaches to producing goods and services

including new procedures as well as new equipment.

8. Internal environment has an immediate impact on the firm’s operations and

profitability.

9. Labor is made up of the factors that influence the supply of workers that are available
and able to perform specific organizational tasks.

10. Objectives are measurable targets to track the growth of the business.

III. ESSAY. Read and understand well the question below before answering and explain
in your own words.

Content Development (5)

Organization of Ideas (5)
Control of Mechanics (5)
TOTAL (15)

1. Why environmental scanning is important (15 points)

2. If you are part of the top management and you want to pursue international
expansion, what global strategies will you recommend and why? (15 Points)

3. Given the three types of retrenchment strategies (restructuring, downsizing and

divestiture), what are the advantages and disadvantages implementing liquidation
and divestment?