Strategic Management

1st Quiz February 24, 2021

Name __________________________________ Roll No.____________________

1. 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) stratify assessment, strategy execution, and strategy evaluation.

2. The primary focus of strategic management is:

a) strategic analysis
b) the total organization
c) strategy formulation
d) strategy implementation
e) competitive advantage.

3. 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.

4. 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

5. The fundamental purpose for the existence of any organization is described by its
a) policies
b) mission
c) procedures
d) strategy
e) tactics
6. The _________ answers the question "What do we want to become?" whereas _________answers
the question "What is our business?"
a) vision statement; mission statement
b) short-term objectives; long-term objectives
c) objectives; strategies
d) mission; vision

7. 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.
8. 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.

9. 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

10. 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

11. Which of these is not a reason why some firms do no strategic planning?
a) Laziness
b) Competitive leadership
c) Honest difference of opinion
d) Poor reward structures

12. Which of the following groups represents the stakeholders of a company?

a) The owners of the company
b) The people who purchases the shares of the company
c) The people who have a special stake or claim on the company
d) Are the people who are in the management a company

13. 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

14. An organization’s strategy:

a) remains set in place longer than the mission and objectives
b) generally forms over a period of time as events unfold
c) tends to be formed at the same time the mission is developed and objectives are formulated
d) is usually conceived at a single time when managers sit down and work out a
comprehensive strategic plan for the next 3-5 years
e) none of these is true
15. Developing a vision and mission, identifying an organization's external opportunities and threats,
and determining internal strengths and weaknesses are all __________ activities.
a) strategy-formulation
b) strategy-implementation
c) long-range planning
d) short-range planning

16. 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

17. 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

18. __________ are the means by which long-term objectives will be achieved
a) Mission statements
b) Strategies
c) Vision statements
d) Long-term goals

19. 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?

20. 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.

21. An organization's strengths and weaknesses are determined relative to

a) its strategic business units.
b) government
c) competitors
d) external opportunities and threats.

22. Who is most 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

23. Strategy-implementation activities include

 a) conducting research.
b) measuring performance.
c) preparing a TOWS matrix.
d) establishing annual objectives.

24. Two reasons for mergers and acquisitions are

a) to increase managerial staff and to minimize economies of scale.
b) to reduce tax obligations and increase managerial staff.
c) to create seasonal trends in sales and to make better use of a new sales force.
d) to provide improved capacity utilization and to gain new technology.

25. When the Chief Executive of a chain of pharmacies decided to sell off or close some of the
locations that were not profitable, he was performing which of the management function?
a) Leading
b) Planning
c) Controlling
d) Organizing
e) Taking any corrective action is a part of controlling function.

26. __________ 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

27. Emergent strategy comes about through:

a) Implementing new ideas.
b) Leveraging core competences into new markets.
c) Strategic plans.
d) Everyday routines, activities and processes in organizations.

28. Organizations in complex situations are most likely to succeed if they use:
a) Top down strategic planning.
b) Strategies which have been successful in the past.
c) Different processes for different purposes.
d) Different processes for different purposes and different strategy development roles at
different organizational levels.

29. Buyer switching costs is an important factor for which of the following forces?
a) The intensity of competitive rivalry
b) The bargaining power of suppliers
c) The threat of new entrants
d) The threat of substitute products

30. How often should strategic-management activities be performed?

a) Annually
b) Quarterly
c) Monthly
d) Continuously