Strategic Management MCQ

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Strategic Management MCQ
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10/1/2020 Strategic Management MCQ Questions and Solutions with Explanations | Management
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Strategic Management MCQ Questions and Solutions with Explanations | Management

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Section 1 (https://www.examveda.com/management/practice-mcq-question-on-strategic-management/?section=1)
1. Strategy is developed by the visionary chief executive in ___________ mode of strategic management
A. planning mode
B. adaptive mode
C. strategic mode
D. entrepreneurial mode
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Answer & Solution
Answer: Option D
Solution:
Strategy is developed by the visionary chief executive in entrepreneurial mode of strategic management. In the entrepreneurial mode, strategy is developed mainly by a strong
visionary chief executive who actively searches for new opportunities, is heavily oriented towards growth and is willing to make bold decisions or to shift strategies whenever
necessary.
2. stability strategy is a ____________ strategy 
A. corporate level
B. business level
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C. functional level
D. strategic level
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Answer & Solution
Answer: Option A
Solution:
Stability strategy is a corporate level strategy. A stability strategy refers to a strategy by a company where the company stops the expenditure on expansion, in other words it refers
to situation where company do not venture into new markets or introduce new products.
3. What are the means by which long term objectives will be achieved?
A. Strategies
B. Policies
C. Strength
D. Opportunities
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Answer & Solution
Answer: Option A
Solution:
Strategies are the means by which long term objectives will be achieved. Business strategies may include geographic expansion, diversification, acquisition, product development,
market penetration, retrenchment, divestiture, liquidation, and joint venture.
4. Marketing strategy is a ___________ type of strategy
A. business level
B. Growth strategy
C. corporate strategy
D. functional strategy
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Answer & Solution 
Answer: Option D
Solution:
Marketing strategy is a functional strategy type of strategy. Functional Strategy is the strategy or organisational plan adopted by each functional area, viz. marketing, production,
finance, human resources and so on, in line with the overall business or corporate strategy, to achieve organisational level objectives.
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5. When an industry relies heavily on government contracts, which forecasts can be the most important part of an external
audit
A. Economic
B. Competitive
C. Political
D. Multinational
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Answer & Solution
Answer: Option C
Solution:
When an industry relies heavily on government contracts, Political forecasts can be the most important part of an external audit. Political forecasting provides the contexruulity
needed for decision-making and for forecasting 'non-political' trends.
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10/1/2020 Strategic Management MCQ Questions and Solutions with Explanations | Management Page-1 section-2
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1. The pie slices within the circles of a ________ reveal the percent of corporate profits contributed by each division
A. QSPM
B. BCG matrix
C. SPACE matrix
D. Grand strategy matrix
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Answer & Solution
Answer: Option B
Solution:
The pie slices within the circles of a BCG matrix reveal the percent of corporate profits contributed by each division. BCG matrix is a framework created by Boston Consulting Group
to evaluate the strategic position of the business brand portfolio and its potential. It classifies business portfolio into four categories based on industry attractiveness (growth rate of
that industry) and competitive position (relative market share).
2. Which one of the following is of concern for not-for-profit organizations? 
A. The markets to service
B. Identifying suppliers to deal with
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C. Developing capabilities
D. Building monopolies
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Answer & Solution
Answer: Option A
Solution:
The markets to service of the following is of concern for not-for-profit organizations. Market, a means by which the exchange of goods and services takes place as a result of buyers
and sellers being in contact with one another, either directly or through mediating agents or institutions.
3. Select the statement that best applies to emergent strategies. Emergent strategy...
A. implies an ability to react to events
B. implies strategizing
C. implies no deviation from plans
D. implies constant evaluation of the bigger picture
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Answer & Solution
Answer: Option A
Solution:
Emergent strategy implies an ability to react to events. An emergent strategy is a pattern of action that develops over time in an organization in the absence of a specific mission
and goals, or despite a mission and goals. Emergent strategy is sometimes called realized strategy.
4. The impact of strategies on the general direction and basic character of a company is
A. short range
B. medium range
C. long range
D. minimal
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Answer: Option C
Solution:
The impact of strategies on the general direction and basic character of a company is long range.
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5. Select the most accurate statement. Value
A. means value for money
B. is best described as the benefits the business chooses to give to customers through its product/service
C. is the benefits of a product/service as perceived by the customer
D. does not offer competitive advantage
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Answer & Solution
Answer: Option C
Solution:
Value is the benefits of a product/service as perceived by the customer. A value proposition is a comparison of the benefits offered by a company's products and services to the
price it asks customers to pay.
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1. The strategic management process is
A. a set of activities that is guaranteed to prevent organizational failure
B. a process concerned with a firms resources, capabilities, and competencies, but not the conditions in its external environment
C. a set of activities that to date have not been used successfully in the not-for-profit sector
D. a dynamic process involving the full set of commitments, decisions, and actions related to the firm
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Answer & Solution
Answer: Option D
Solution:
The strategic management process is a dynamic process involving the full set of commitments, decisions, and actions related to the firm. The term ‘strategic management’ is used
to denote a branch of management that is concerned with the development of strategic vision, setting out objectives, formulating and implementing strategies and introducing
corrective measures for the deviations (if any) to reach the organization’s strategic intent.
2. Organizations require good people with appropriate skills and abilities to work together effectively to be successful. Which 
of the following characteristics is not seen as critical for this?
A. Competent
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B. Committed
C. Cost-effective
D. Capable
Answer & Solution
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Answer & Solution
Answer: Option D
Solution:
Organizations require good people with appropriate skills and abilities to work together effectively to be successful. Capable characteristics is not seen as critical for this. Strategic
management makes employees capable of understanding the market reactions to organization's product and taking corrective measures for the organization.
3. Hard human resource management assumes which of the following?
A. Employees are more productive when they are better informed
B. Employees are more productive if they are committed to the organization
C. Employees are resources to be used effectively in the search for competitive advantage
D. Employees have to be trusted to make correct decisions
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Answer & Solution
Answer: Option C
Solution:
Hard human resource management assumes Employees are resources to be used effectively in the search for competitive advantage. Hard human resources management, or
hard HRM is a staff management system in which workers are seen as a resource that needs to be controlled to achieve the highest profit and a competitive advantage. The focus
of hard HRM is on the task that needs to be done, cost control, and achieving organizational goals.
4. Strategic mission
A. is a statement of a firms unique purpose and scope of operations
B. is an internally-focused affirmation of the organization's societal and ethical goals
C. does not limit the firm by specifying the industry in which the firm intends to compete

D. is developed by a firm before the firm develops its strategic intent
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Answer & Solution
Answer: Option A
Solution:
Strategic mission is a statement of a firms unique purpose and scope of operations. Strategic mission is a type of marketing approach which is based on the core philosophy of
organization. It is a long term plan on which the company operates to achieve its mission and vision objectives and goals.
5. Which of these is a characteristic of soft human resource management?
A. Managers are responsible for employees
B. Teams provide increased productivity
C. Managers are responsible for deploying employees
D. Scientific management principles and systems should be used to deal with employees
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Answer & Solution
Answer: Option B
Solution:
Teams provide increased productivity is a characteristic of soft human resource management. Soft human resource management (HRM) is an approach to human resource
management that involves treating employees as one of a company's most important assets. When management uses soft HRM, it views its employees as critical resources who
are key to their long-term business strategies.
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1. __________ are the resources, skills or other advantages a firm enjoys relative to its competitors
A. Weakness
B. Strength
C. Threat
D. Opportunities
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Answer & Solution
Answer: Option B
Solution:
Strength are the resources, skills or other advantages a firm enjoys relative to its competitors. Strategic strength is your ability to set the right goals and to create action plans and
follow them. Strategic strength is the foundation for success.
2. If unprepared, what strategic pressures are recognized as key factors that can weaken the organization?

A. Competitive and environmental pressures
B. Control at the expense of flexibility
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C. Lack of planners
D. Competitive and environmental pressures, and excessive control
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Answer & Solution
Answer: Option D
Solution:
If unprepared, Competitive and environmental pressures, and excessive control strategic pressures are recognized as key factors that can weaken the organization.
3. A _________ is a limitation or deficiency in resources, skills and capabilities that seriously impede effective performance
A. Strength
B. Threat
C. Opportunities
D. Weakness
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Answer & Solution
Answer: Option D
Solution:
A Weakness is a limitation or deficiency in resources, skills and capabilities that seriously impede effective performance. The organizational weaknesses that have the potential to
lead the organization to inefficiency and ineffectiveness should be known and improved.
4. Robert Kalpan and David developed the balanced score card in the early _____ as a performance measurement system
A. 1991
B. 1990
C. 1992
D. 1995
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Answer & Solution


Answer: Option B
Solution:
Robert Kalpan and David developed the balanced score card in the early 1990 as a performance measurement system. Performance measurement is the process of collecting,
analyzing and/or reporting information regarding the performance of an individual, group, organization, system or component.
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5. What is said to be the key factor in maintaining organizational growth (e.g., Hurst 1995)?
A. Entrepreneurial vision
B. Planning
C. Innovation
D. Flexibility
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Answer & Solution
Answer: Option D
Solution:
Flexibility is said to be the key factor in maintaining organizational growth (e.g., Hurst 1995). Strategic flexibility is the organization's. capability to identify major changes in the
external environment, quickly commit. resources to new courses of action in response to those changes, and recognize and act. promptly when it is time to halt or reverse existing
resource commitments.

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1. Which of the following elements of strategy affect the process of strategy creation and implementation?
A. Synergy
B. The strategic leader???s perspective on strategy
C. Structure
D. Strategic paradoxes
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Answer & Solution
Answer: Option D
Solution:
Strategic paradoxes elements of strategy affect the process of strategy creation and implementation. The strategy paradox is a consequence of the conflict between commitment
and uncertainty, i.e., strategic uncertainty. Commitments are what allow an organization to create and capture value. Uncertainty creates risk and opportunity
2. Miles and Snow (1994) identify four main reasons for failure. Which of the following is one of those reasons?

A. Lack of competitive advantage
B. Lack of strategy competency
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C. Lack of strategic resources
D. Poor judgement leading to poor, inappropriate strategic decisions
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Answer & Solution
Answer: Option D
Solution:
Miles and Snow (1994) identify four main reasons for failure. Poor judgement leading to poor, inappropriate strategic decisions is one of those reasons. Miles and Snow suggest
that business level strategies generally fall into one of four categories: prospector, defender, analyzer, and reactor.
3. How does Checkland (1981) describe an organization?
A. A collection of people who are trying to act with purpose
B. Systems that comprise a collection of people who are trying to act with purpose
C. A collection of people that act with little purpose
D. A collection of systems and functions, inclusive of its people
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Answer & Solution
Answer: Option B
Solution:
Checkland (1981) describe an organization as Systems that comprise a collection of people who are trying to act with purpose.
4. How might an organization spot, create, and exploit new opportunities ahead of its rivals?
A. Through managers in the various businesses working together, sharing information and capabilities, helping each other, and creating
synergy
B. Through managers in the various businesses sharing information, capabilities, and creating synergy
C. Through managers in the various businesses working together, sharing information, and sharing capabilities
D. Through managers in the various businesses working together to create strategic competencies for the organization in order to
pursue opportunities
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
Answer & Solution
Answer: Option A
Solution:
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Through managers in the various businesses working together, sharing information and capabilities, helping each other, and creating synergy an organization spot, create, and
exploit new opportunities ahead of its rivals.
5. Which of the following is not a competence recognized by Richardson and Thompson (1994)?
A. Strategic thinking
B. Managing paradoxes
C. Innovative climate
D. Providing excellent quality
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Answer & Solution
Answer: Option B
Solution:
Managing paradoxes is not a competence recognized by Richardson and Thompson (1994). Paradox management describes how a great manager can successfully balance these
paradoxes. By using paradox management, a business can simultaneously encourage both competition and collaboration, rather than being able to have only one of the two.

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6. A possible and desirable future state of an organization is called:
A. Mission
B. Vision
C. Strategy implementation
D. Strategy formulation
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Answer & Solution
Answer: Option B
Solution:
A possible and desirable future state of an organization is called Vision. Vision is a future-oriented concept of the business. Forming a strategic vision is an exercise in thinking
about where a company needs to head to be successful.
7. What does Question mark symbolize in BCG matrix?


A. Remain Diversified
B. Invest
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C. Stable
D. Liquidate
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Answer & Solution
Answer: Option A
Solution:
Question mark symbolize Remain Diversified in BCG matrix. The BCG growth-share matrix is used to help the company decide what it should keep, sell, or invest more in. The
BCG growth-share matrix breaks down products into four categories: dogs, cash cows, stars, and “question marks.”
8. Selling all of a companys assets in parts for their tangible worth is called:
A. Divestiture
B. Concentric Diversification
C. Liquidation
D. Unrelated integration
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Answer & Solution
Answer: Option C
Solution:
Selling all of a companys assets in parts for their tangible worth is called Liquidation. Liquidation in finance and economics is the process of bringing a business to an end and
distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due.
9. What do Cash Cows symbolize in BCG matrix?
A. Remain Diversified
B. Invest
C. Stable
D. Liquidate
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Answer: Option C
Solution:
Cash Cows symbolize Stable in BCG matrix. Cash cows are the leaders in the marketplace and generate more cash than they consume. These are business units or products that
have a high market share but low growth prospects.
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10. The BCG matrix is based on
A. Industry attractiveness and Business strength
B. Industry Growth rate and Business strength
C. Industry Attractiveness and Relative Market share
D. Industry growth rate and relative market share
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Answer & Solution
Answer: Option D
Solution:
The BCG matrix is based on Industry growth rate and relative market share. BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the
business brand portfolio and its potential.
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6. The acronym SWOT stands for
A. Special Weapons for Operations Timeliness
B. Services, Worldwide Optimization and Transport
C. Strengths, Weakness, Opportunities and Threats
D. None of the above
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Answer & Solution
Answer: Option C
Solution:
The acronym SWOT stands for Strengths, Weakness, Opportunities and Threats. It is a way of summarizing the current state of a company and helping to devise a plan for the
future, one that employs the existing strengths, redresses existing weaknesses, exploits opportunities and defends against threats.
7. Which of the following statements best describes strategic management?


A. A process consisting of determining objectives and strategic actions to achieve those objectives
B. A process consisting of determining objectives, strategic actions to achieve those objectives, the implementation of desired strategy,
and the monitoring of that strategy
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C. A process consisting of the determination of direction, strategic actions to achieve objectives, the implementation of desired strategy,
and monitoring of that strategy
D. A process for determining direction, strategic actions to achieve objectives, and the implementation of desired strategy
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Answer & Solution
Answer: Option C
Solution:
A process consisting of the determination of direction, strategic actions to achieve objectives, the implementation of desired strategy, and monitoring of that strategy statements
best describes strategic management. Strategic management is the ongoing planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its
goals and objectives. Changes in the business environment require organizations to constantly assess their strategies for success.
8. Which of the following is a key external factors that should be taken into account by a corporate strategy?
A. economic conditions
B. political conditions
C. legal environments
D. competition
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Answer & Solution
Answer: Option D
Solution:
Competition is a key external factors that should be taken into account by a corporate strategy. Strategic competition is a commitment within an organization to make a very large
change in competitive relationships.
9. Which one of the following would not be considered a functional strategy?
A. Financial
B. Marketing
C. Product-market
D. Operations
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Answer & Solution
Answer: Option C
Solution:
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Product-market is one of the following would not be considered a functional strategy. A product market refers to a place where goods and services are bought and sold.
10. The two internal elements of SWOT analysis are
A. weaknesses and threats
B. opportunities and threats
C. strength and weaknesses
D. strengths and threats
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Answer & Solution
Answer: Option C
Solution:
The two internal elements of SWOT analysis are strength and weaknesses.
 (https://www.examveda.com:443/management/practice-mcq-question-on-strategic-management/?section=2)
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mcq-question-
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6. The _______________ has its own business strategy, objectives and competitors and these are often differ from parent
company
A. Strategic Business Unit structure
B. Matrix structure
C. Divisional structure
D. None of given option
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Answer & Solution
Answer: Option A
Solution:
The Strategic Business Unit structure has its own business strategy, objectives and competitors and these are often differ from parent company. A strategic business unit, popularly
known as SBU, is a fully-functional unit of a business that has its own vision and direction. Typically, a strategic business unit operates as a separate unit, but it is also an important
part of the company. It reports to the headquarters about its operational status.

7. Which of the following is not an example of a managerial mindset?
A. Analytic
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B. Reflective
C. Competent
D. Co-operative
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Answer & Solution
Answer: Option C
Solution:
Competent is not an example of a managerial mindset. A worldly mindset helps you operate in diverse regions, with the cultural and social insights needed to serve varied
customers. Managing relationships (collaborative mindset).
8. The vision and mission statement can often be found
A. in the SEC report
B. in annual reports
C. on customer receipts
D. on supplier invoices
Answer & Solution Discuss in Board (https://www.examveda.com/the-vision-and-mission-statement-can-often-be-found-33361) Save for Later
Answer & Solution
Answer: Option B
Solution:
The vision and mission statement can often be found in annual reports. A Mission Statement defines the company's business, its objectives and its approach to reach those
objectives. A Vision Statement describes the desired future position of the company. Elements of Mission and Vision Statements are often combined to provide a statement of the
company's purposes, goals and values.
9. Which statement should be created first and foremost?
A. Strategic
B. Vision
C. Objectives
D. Mission
Answer & Solution Discuss in Board (https://www.examveda.com/which-statement-should-be-created-first-and-foremost-33362) Save for Later


Answer & Solution
Answer: Option B
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Solution:
Vision statement should be created first and foremost. A vision statement describes what a company desires to achieve in the long-run, generally in a time frame of five to ten
years, or sometimes even longer.
10. What does the acronym SMART refer to?
A. Superiority, Measurement, Appropriability, Replicability, Transparency
B. Specific, Measurable, Achievable, Realistic, Timescale
C. Substitutability, Measurement, Appropriability, Replicability, Transparency
D. Specific, Measurable, Achievable, Realistic, Timely
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Answer & Solution
Answer: Option B
Solution:
S.M.A.R.T. is an acronym that stands for specific, measurable, achievable, realistic and timescale.
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mcq-question-
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6. ______________ are defined as resources, skills and attributes of an organization that are essential to deliver success in
the market place
A. Balanced score card
B. Industrial analysis
C. Core competencies
D. Critical success factors
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Save for Later
Answer & Solution
Answer: Option D
Solution:
Critical success factors are defined as resources, skills and attributes of an organization that are essential to deliver success in the market place. A critical success factor (often
abbreviated “CSF”) may sound complicated, but it's actually a pretty simple concept.
7. Which of the following is the best reason for why strategic planning is still important today?
A. Without a formal strategic plan a company cannot expect to compete effectively
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B. Without a strategic plan an organization can drift without purpose or definition
C. Without it, companies would exist without cause or co-ordination
D. Because of slower economic growth, globalization and technological change
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Answer & Solution
Answer: Option D
Solution:
Strategic planning is still important today because A critical success factor (often abbreviated “CSF”) may sound complicated, but it's actually a pretty simple concept. Strategic
planning is a process in which organizational leaders determine their vision for the future as well as identify their goals and objectives for the organization.
8. ________ is a widely used framework to summarize a company's situation or current position
A. SWOT analysis
B. TOWS matrix
C. Ansoff's matrix
D. BCG matrix
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Answer & Solution
Answer: Option A
Solution:
SWOT analysis is a widely used framework to summarize a company's situation or current position. SWOT (strengths, weaknesses, opportunities, and threats) analysis is a
framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and
future potential.
9. What is top-down planning?
A. This takes place in someone's head, and the decisions may not be written down in any extensive form It is often practiced by
entrepreneurial managers with real flair
B. This requires managers to spend time discussing the future opportunities and threats and areas in which the organization might
develop
C. This involves managers throughout the organization, and ensures that everyone involved in implementing plans will be consulted
D. This relates to decisions taken at the higher parts of the organization and passed onto other managers for implementation These

managers will have had little or no input into the planning process
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Answer & Solution
Answer: Option D
Solution:
Top-down planning relates to decisions taken at the higher parts of the organization and passed onto other managers for implementation. These managers will have had little or no
input into the planning process. Top-Down Planning is a method of planning, defining objectives and ways to achieve them through the top down. First, global (framework) goals are
set, and ways how to achieve them. They are gradually moved to lower and lower levels of the organizational hierarchy to be developed and specified.
10. Which of the following is true for small businesses in relation to strategic planning?
A. It belongs in all organizations
B. It is too expensive
C. It only belongs in large organizations
D. The benefits are too long term
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Answer & Solution
Answer: Option A
Solution:
It belongs in all organizations is true for small businesses in relation to strategic planning. Strategic planning is a process in which organizational leaders determine their vision for
the future as well as identify their goals and objectives for the organization.
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mcq-question-
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management%2F%

6. If an organization is to survive, which of the following is most essential?
A. Strong financial performance
B. Committed employees
C. High level of service
D. Customer retention
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7. The corporate level is where top management directs:
A. all employees for orientation
B. its efforts to stabilize recruitment needs
C. overall strategy for the entire organization
D. overall sales projections


Answer & Solution Discuss in Board (https://www.examveda.com/the-corporate-level-is-where-top-management-directs-33500) Save for Later
Answer & Solution
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Answer: Option C
Solution:
The corporate level is where top management directs overall strategy for the entire organization. A corporate-level strategy is when a business makes a decision that affects the
whole company. A corporate-level strategy affects a company's finances, management, human resources, and where the products are sold.
8. Value for shareholders of a firm is measured by:
A. customer comments
B. stock performance and profitability
C. sales revenue
D. satisfactory employee targets
Answer & Solution Discuss in Board (https://www.examveda.com/value-for-shareholders-of-a-firm-is-measured-by-33501) Save for Later
Answer & Solution
Answer: Option B
Solution:
Value for shareholders of a firm is measured by stock performance and profitability. Shareholder value is the value enjoyed by a shareholder by possessing shares of a company. It
is the value delivered by the company to the shareholder.
9. The three organizational levels are:
A. corporate level, business level, functional level
B. corporate level, business unit level, functional level
C. corporate strategy level, business unit level, functional level
D. corporate strategy level, business level, specialist level
Answer & Solution Discuss in Board (https://www.examveda.com/the-three-organizational-levels-are-33502) Save for Later
Answer & Solution
Answer: Option A
Solution:
The three organizational levels are corporate level, business level and functional level. The corporate level involves the entire organization. Business units include divisions, product
lines or other centers of business activity within your organization. The functional level refers to organizational departments such as human resources, marketing, operations and IT.
10. Cross-functional teams are: 
A. a small group of people from the same department who work on projects together
B. a small group of people who come together to resolve business unit issues
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C. a small group of specialists who collaborate on a task force
D. a small group of people from different departments who are mutually accountable to a common set of performance goals
Answer & Solution Discuss in Board (https://www.examveda.com/cross-functional-teams-are-33503) Save for Later
Answer & Solution
Answer: Option D
Solution:
Cross-functional teams are a small group of people from different departments who are mutually accountable to a common set of performance goals. A cross-functional team is a
group of people with different functional expertise working toward a common goal. It may include people from finance, marketing, operations, and human resources departments.
Typically, it includes employees from all levels of an organization.


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url=https%3A%2F%
mcq-question-
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11. What are the guides to decision making?
A. Rules
B. Procedures
C. Goals
D. Policies
Answer & Solution Discuss in Board (https://www.examveda.com/what-are-the-guides-to-decision-making-33224) Save for Later
Answer & Solution
Answer: Option D
Solution:
Policies are the guides to decision making. Policies are standing plans that provide guidelines for decision making. They are guides to thinking that establish the boundaries or
limits within which decisions are to be made.
12. In strategic thinking, how long is the long term, approximately?


A. 1 month to 1 year
B. 2 to 3 years
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C. 3 to 5 years
D. More than 5 years
Answer & Solution Discuss in Board (https://www.examveda.com/in-strategic-thinking-how-long-is-the-long-term-approximately-33225) Save for Later
Answer & Solution
Answer: Option D
Solution:
In strategic thinking, more than 5 years long is the long term, approximately. Most strategic plans look about 3 to 5 years into the future.
13. Buying another company by one company means:
A. Joint venture
B. Acquisition
C. Amalgamation
D. Merger
Answer & Solution Discuss in Board (https://www.examveda.com/buying-another-company-by-one-company-means-33226) Save for Later
Answer & Solution
Answer: Option B
Solution:
Buying another company by one company means acquisition. An acquisition is when one company purchases most or all of another company's shares to gain control of that
company. Purchasing more than 50% of a target firm's stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the
company's shareholders.
14. Low cost, Differentiation and Focus are examples of
A. Corporate strategies
B. Operational strategies
C. Business strategies
D. Functional strategies
Answer & Solution Discuss in Board (https://www.examveda.com/low-cost-differentiation-and-focus-are-examples-of-33227) Save for Later
Answer: Option C
Solution:
Low cost, Differentiation and Focus are examples of Business strategies. A low-cost provider seeks to sell its products at the lowest price it can, while still making a profit so that it
can draw customers to the market. This is the broad version of the low-cost strategy because such companies try to appeal to a broad market.
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15. Which environment can create new market and new business segments?
A. Political environment
B. Economic environment
C. Socio cultural environment
D. Technological environment
Answer & Solution Discuss in Board (https://www.examveda.com/which-environment-can-create-new-market-and-new-business-segments-33228) Save for Later
Answer & Solution
Answer: Option D
Solution:
Technological environment can create new market and new business segments. Technological environment refers to the state of science and technology in the country and related
aspects such as rate of technological progress, institutional arrangements for development and application of new technology, etc.
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1 (https://www.examveda.com:443/management/practice-mcq-question-on-strategic-management/)
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mcq-question-
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11. Porter's generic strategies are
A. Low price, differentiation, focus
B. Cost leadership, differentiation, cost focus, focus differentiation
C. Price leadership, differentiation, focus
D. Low cost, differentiation, focus differentiation
Answer & Solution Discuss in Board (https://www.examveda.com/porters-generic-strategies-are-33294) Save for Later
Answer & Solution
Answer: Option B
Solution:
Porter's generic strategies are cost leadership, differentiation, cost focus, focus differentiation. Porter's generic strategies describe how a company pursues competitive advantage
across its chosen market scope. There are three/four generic strategies, either lower cost, differentiated, or focus.
12. Which of these is not a key stakeholder that an organization must seek to satisfy?

A. Managers
B. Shareholders
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C. Employees
D. Customers
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Answer & Solution
Answer: Option A
Solution:
Managers is not a key stakeholder that an organization must seek to satisfy. A manager is a person who is responsible for a part of a company, i.e., they 'manage' the company.
13. Who can be considered as the main stakeholders for London Zoo?
A. Research groups
B. Visitors
C. The government
D. Private investors
Answer & Solution Discuss in Board (https://www.examveda.com/who-can-be-considered-as-the-main-stakeholders-for-london-zoo-33296) Save for Later
Answer & Solution
Answer: Option B
Solution:
Visitors can be considered as the main stakeholders for London Zoo.
14. In Porter's generic strategies model, a focus strategy involves
A. selling a limited range of products
B. selling to a narrow customer segment
C. selling to one region only
D. selling simple products that are cheap to produce
Answer & Solution Discuss in Board (https://www.examveda.com/in-porters-generic-strategies-model-a-focus-strategy-involves-33297) Save for Later
Answer & Solution
Answer: Option B 
Solution:
In Porter's generic strategies model, a focus strategy involves selling to a narrow customer segment. Porter's generic strategies describe how a company pursues competitive
advantage across its chosen market scope. There are three/four generic strategies, either lower cost, differentiated, or focus.
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15. What common, related problem do for non-profit organizations such as the British Museum and the National History
Museum often face?
A. Costs associated with repairs and maintenance
B. The need to be educational and adhere to their scientific/research orientation whilst addressing commercial issues (e g , admission
charges to cover costs)
C. The need to be educational and adhere to their scientific/research orientation whilst satisfying main stakeholders
D. The conflict between pursuing organizational objectives and resource availability constraints
Answer & Solution Discuss in Board (https://www.examveda.com/what-common-related-problem-do-not-for-profit-organizations-such-as-the-british-museum-and-the-national-history-museum-often-face-33298)
Save for Later
Answer & Solution
Answer: Option A
Solution:
Costs associated with repairs and maintenance are common, related problem do for non-profit organizations such as the British Museum and the National History Museum often
face.
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mcq-question-
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11. The purpose of a mission statement is to declare all of these except
A. a reason for being
B. an annual financial plan
C. a statement of purpose
D. a statement of beliefs
Answer & Solution Discuss in Board (https://www.examveda.com/the-purpose-of-a-mission-statement-is-to-declare-all-of-these-except-33364) Save for Later
Answer & Solution
Answer: Option B
Solution:
The purpose of a mission statement is to declare all of these except an annual financial plan. The sole purpose of a mission statement is to serve as a company's goal/agenda, it
outlines clearly what the goal is.
12. Which of the following is not a characteristic of the Internet?


A. Provides information
B. Facilitates communication
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C. Provides competitive advantage
D. Enables electronic trading
Answer & Solution Discuss in Board (https://www.examveda.com/which-of-the-following-is-not-a-characteristic-of-the-internet-33365) Save for Later
Answer & Solution
Answer: Option A
Solution:
Providing information is not a characteristic of the Internet. The Internet is essentially a decentralized, self-maintained telecom-munications network. It is made up of inter-linking
small networks from all parts of the world. It is ubiquitous, borderless, global and ambient in its nature. Hence the term “cyberspace.”
13. As indicated in the strategic-management model, a clear _______ is needed before alternate strategies can be formulated
and implemented.
A. long-term objective
B. short-term objective
C. policy
D. mission statement
Answer & Solution Discuss in Board (https://www.examveda.com/as-indicated-in-the-strategic-management-model-a-clear-is-needed-before-alternate-strategies-can-be-formulated-and-implemented-33366)
Save for Later
Answer & Solution
Answer: Option D
Solution:
As indicated in the strategic-management model, a clear mission statement is needed before alternate strategies can be formulated and implemented. The strategic management
model provides managers and strategists a greater comprehension of the iterative approach in conducting real strategic management in the organizational setting. The strategic
management model begins with the development of the organizational mission and vision.
14. Which one of the following criteria does not provide a means to assess strategic resources?
A. Sustainability
B. Scarcity
C. Inimtability
D. Synergy
Answer & Solution Discuss in Board (https://www.examveda.com/which-one-of-the-following-criteria-does-not-provide-a-means-to-assess-strategic-resources-33367) Save for Later 
Answer & Solution
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Answer: Option D
Solution:
Synergy criteria does not provide a means to assess strategic resources. Synergy is the concept that the combined value and performance of two companies will be greater than
the sum of the separate individual parts. Synergy is a term that is most commonly used in the context of mergers and acquisitions (M&A).
15. Innovation and quality can be seen as which form of management?
A. Marketing management
B. Financial management
C. Operations management
D. Human resource management
Answer & Solution Discuss in Board (https://www.examveda.com/innovation-and-quality-can-be-seen-as-which-form-of-management-33368) Save for Later
Answer & Solution
Answer: Option C
Solution:
Innovation and quality can be seen as Operations management. Operations management is the administration of business practices to create the highest level of efficiency
possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization.
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mcq-question-
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11. The concept Core competence was developed by
A. Schwiz Marker
B. Peter Schiffman
C. Prahalad and Gary
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Answer & Solution
Answer: Option C
Solution:
The concept Core competence was developed by Prahalad and Gary. It can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the
marketplace" and therefore are the foundation of companies' competitiveness.
12. In __________ strategy firms try to achieve a high levels of local responsiveness by making their product or service

offering to the requirement of the countries they operate
A. Global
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B. Multidomestic
C. International
D. Transnational
Answer & Solution
Discuss in Board (https://www.examveda.com/in-strategy-firms-try-to-achieve-a-high-levels-of-local-responsiveness-by-making-their-product-or-service-offering-to-the-requirement-of-the-countries-they-operate-

33435)
Save for Later
Answer & Solution
Answer: Option B
Solution:
In Multidomestic strategy firms try to achieve a high levels of local responsiveness by making their product or service offering to the requirement of the countries they operate. A
multidomestic strategy is an international marketing approach that chooses to focus advertising and commercial efforts on the needs of a local market rather than taking a more
universal or global approach.
13. According to Ringbakk (1971) and Steiner (1972) which of the following should be avoided when creating a formal plan?
A. Seeing planning as a support activity in strategic decision making
B. Seeing planning as a once-a-year ritual
C. Flexibility
D. Involving implementers in planning
Answer & Solution Discuss in Board (https://www.examveda.com/according-to-ringbakk-1971-and-steiner-1972-which-of-the-following-should-be-avoided-when-creating-a-formal-plan-33436) Save for Later
Answer & Solution
Answer: Option B
Solution:
According to Ringbakk (1971) and Steiner (1972) Seeing planning as a once-a-year ritual should be avoided when creating a formal plan. In formal planning, the managers look
forward for a change when it is to be made use of.
14. In __________ strategy assumptions are made that consumers needs are similar worldwide
A. Global
B. Multidomestic
C. International

D. Transnational
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Answer & Solution
Answer: Option A
Solution:
In Global strategy assumptions are made that consumers needs are similar worldwide. A global strategy refers to the plans an organization has developed to target growth beyond
its borders. Specifically, it aims to increase the sales of goods or services abroad. 'Global strategy' is, in fact, a shortened term that covers three strategies: international,
multinational, and global.
15. What does SPACE stand for?
A. Sales, Position, and ACtion Evaluation
B. Strategic Profit And Credit Evaluation
C. Sales, Profit, ACtion and Evaluation
D. Strategic Position and ACtion Evaluation
Answer & Solution Discuss in Board (https://www.examveda.com/what-does-space-stand-for-33438) Save for Later
Answer & Solution
Answer: Option D
Solution:
SPACE stand for Strategic Position and Action Evaluation. It is “an approach to hammer out an appropriate strategic posture for a firm and its individual business.”

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mcq-question-
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11. The business unit strategy has three major components:
A. mission, business, and SBU goals
B. marketing, advertising and pricing objectives
C. mission, business unit goals, and competencies
D. business mission, department mission, and daily plans
Answer & Solution Discuss in Board (https://www.examveda.com/the-business-unit-strategy-has-three-major-components-33504) Save for Later
Answer & Solution
Answer: Option C
Solution:
The business unit strategy has three major components mission, business unit goals, and competencies. The major parts of a standard strategic plan include the following: Mission,
vision, and aspirations, Core values, Strengths, weaknesses, opportunities, and threats, Objectives, strategies, and operational tactics, Measurements and funding streams.
12. Disney is in the business of:


A. theme parks or movies
B. creating entertainment, fun and fantasy
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C. building theme parks
D. designing new imaginative characters
Answer & Solution Discuss in Board (https://www.examveda.com/disney-is-in-the-business-of-33505) Save for Later
Answer & Solution
Answer: Option B
Solution:
Disney is in the business of creating entertainment, fun and fantasy. The Walt Disney Company is one of the most creative and successful forces in the entertainment industry. The
company is best known for bringing decades of fantasy to families through its motion pictures, television series, and amusement parks.
13. The Holiday Inn, Burlington statement, "If a customer has a need or want, we fill it." is an example of a:
A. Business unit goals
B. Marketing objectives
C. Business unit mission
D. Goal of a business segment
Answer & Solution Discuss in Board (https://www.examveda.com/the-holiday-inn-burlington-statement-if-a-customer-has-a-need-or-want-we-fill-it-is-an-example-of-a-33506) Save for Later
Answer & Solution
Answer: Option B
Solution:
The Holiday Inn, Burlington statement, "If a customer has a need or want, we fill it." is an example of a Marketing objectives. Marketing objectives are goals set by a business when
promoting its products or services to potential consumers that should be achieved within a given time frame.
14. A useful framework used to assess a company's investments/divisions is called:
A. unit production analysis
B. corporate insight analysis
C. company productivity analysis
D. business portfolio analysis
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Answer: Option D
Solution:
A useful framework used to assess a company's investments/divisions is called business portfolio analysis. A business portfolio analysis is essentially a process of looking at a
company's products and services and categorizing them based on how well they're performing and their competitiveness.
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15. Cash cows are SBU's that typically generate:
A. problems for product managers
B. paper losses in the long run
C. large awareness levels but few sales
D. a lot of competition
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Answer & Solution
Answer: Option D
Solution:
Cash cows are SBU's that typically generate a lot of competition. A Cash Cow is a metaphor used for a business or a product, which exhibits a strong potential in terms of returns in
a low-growth market. The rate of return from this business is usually greater than the market growth rate. A company does not have to invest much in the business apart from the
initial outlay. Once the company recovers its initial investment, it does not have to put in more cash to keep the business growing.
13 (https://www.examveda.com:443/management/practice-mcq-question-on-strategic-management/?section=5&page=13) 
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16. The word tactics is most likely to be associated with
A. Business strategy
B. Corporate strategy
C. Operational strategy
D. All of the abvoe
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Answer & Solution
Answer: Option C
Solution:
The word tactics is most likely to be associated with Operational strategy. Operational strategies refers to the methods companies use to reach their objectives. By developing
operational strategies, a company can examine and implement effective and efficient systems for using resources, personnel and the work process.
17. Buyers market exist when:


A. few suppliers in the market
B. buyers purchases in small volume
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C. buyers purchases in large volume
D. product of suppliers are unique and differentiated
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Answer & Solution
Answer: Option C
Solution:
Buyers market exist when buyers purchases in large volume. A buyer's market refers to a situation in which supply exceeds demand, giving purchasers an advantage over sellers
in price negotiations.
18. How many cells are in a SWOT matrix?
A. 9
B. 6
C. 3
D. 2
Answer & Solution Discuss in Board (https://www.examveda.com/how-many-cells-are-in-a-swot-matrix-33231) Save for Later
Answer & Solution
Answer: Option A
Solution:
SWOT Matrix contains nine cells in which four are key factor cells, four strategy cells and one blank cell.
19. The Reasons for diversification is:
A. to reduce competition
B. to increase organizational capabilities
C. to get tax advantage
D. to get quick entry into a business
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Answer & Solution


Answer: Option B
Solution:
The Reasons for diversification is to increase organizational capabilities. Diversification strategies are used to expand firms' operations by adding markets, products, services, or
stages of production to the existing business. The purpose of diversification is to allow the company to enter lines of business that are different from current operations.
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20. Strategic Management handles:
A. external issues
B. management issues
C. internal issues
D. administrational issues
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Answer & Solution
Answer: Option A
Solution:
Strategic Management handles external issues. Strategic management is the ongoing planning, monitoring, analysis and assessment of all that is necessary for an organization to
meet its goals and objectives. Changes in the business environment require organizations to constantly assess their strategies for success.
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16. A question for business level strategy would be
A. Which industries do we want to be in?
B. How should the businesses be related?
C. How should the business compete in its market?
D. How should resources be shared amongst the businesses?
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Answer & Solution
Answer: Option C
Solution:
A question for business level strategy would be How should the business compete in its market?
17. Which of the following is not a way in which organizations can behave more ethically and socially responsibly?

A. By avoiding discrimination and improving working conditions
B. By lowering prices to their targeted market, to stimulate demand and increasing profit by increases in productivity to meet customer
demands
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C. By ensuring product safety
D. By avoiding pollution and safely disposing of waste
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Answer & Solution
Answer: Option B
Solution:
By lowering prices to their targeted market, to stimulate demand and increasing profit by increases in productivity to meet customer demands is not a way in which organizations
can behave more ethically and socially responsibly.
18. The term corporate strategy concerns strategy and strategic decisions
A. In certain types of organization
B. At all levels in an organization
C. Developed by the senior management in an organization
D. In the private sector only
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Answer & Solution
Answer: Option B
Solution:
The term corporate strategy concerns strategy and strategic decisions at all levels in an organization. Corporate strategy is hierarchically the highest strategic plan of the
organization, which defines the corporate overall goals and directions and the way in which will be achieved within strategic management activities. It is a long-term, clearly defined
vision of the direction of a company or organization.
19. Ansoff's growth vector matrix is used for
A. analyzing the different strategic directions an organization can pursue
B. analyzing the balance of the portfolio
C. assessing whether the corporate parent is adding value
D. assessing the market share of a business
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
Answer & Solution
Answer: Option A
Solution:
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Ansoff's growth vector matrix is used for analyzing the different strategic directions an organization can pursue. The Ansoff Matrix, also called the Product/Market Expansion Grid, is
a tool used by firms to analyze and plan their strategies for growth.
20. Which one of these would not be a problem for an organization attempting to establish a unified vision or direction?
A. The constraints applied by key stakeholders upon the organizations management
B. The personal objectives of those within the organization
C. The varying expectations of external stakeholders
D. Conflicts between the product and its desired target market
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Answer & Solution
Answer: Option D
Solution:
Conflicts between the product and its desired target market would not be a problem for an organization attempting to establish a unified vision or direction.

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16. The mission statement answers which question?
A. What is our business?
B. How can we improve ourselves?
C. What do we want to become?
D. Who are our stakeholders?
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Answer & Solution
Answer: Option A
Solution:
The mission statement answers- What is our business?. A mission statement is a brief description of a company's fundamental purpose.
17. Which of the following is not one of the four key strategic elements linked to corporate objectives?

A. Competitive environment
B. Stakeholder expectations
C. Research and development
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D. Organization structure
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Answer & Solution
Answer: Option C
Solution:
Research and development is not one of the four key strategic elements linked to corporate objectives. Research and development (R&D) refers to the activities companies
undertake to innovate and introduce new products and services. It is often the first stage in the development process. The goal is typically to take new products and services to
market and add to the company's bottom line.
18. The vision statement answers which question?
A. What is our business?
B. How can we improve ourselves?
C. What do we want to become?
D. Who are our stakeholders?
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Answer & Solution
Answer: Option C
Solution:
The vision statement answers- What do we want to become?
19. In the process of developing a mission statement, it is important to involve
A. as few managers as possible
B. as many managers as possible
C. upper-level management only
D. lower-level management only
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Answer & Solution
Answer: Option B 
Solution:
In the process of developing a mission statement, it is important to involve as many managers as possible. The mission statement allows everyone in an organization to clearly
understand why they are doing their work. An organization's mission also guides its operational plans and describes the organization to potential funders, clients and beneficiaries.
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20. Information is defined by Lucas (1976) as
A. some tangible or intangible entity that creates certainty about a state or event
B. some tangible or intangible entity that reduces uncertainty about a state or event
C. some tangible or intangible entity that leads to understanding
D. some tangible or intangible entity that leads to knowledge
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Answer & Solution
Answer: Option B
Solution:
Information is defined by Lucas (1976) as some tangible or intangible entity that reduces uncertainty about a state or event.

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16. What is the planning gap?
A. A concept that is used to clarify the extent of revenue or profits gap that might emerge if current strategies are left unchanged
B. The time between the strategic plan being devised and the time it is actually implemented
C. The time between the conception of a strategic plan and the formalization of it
D. Any part of a plan that has not been formalized which allows for flexibility and the introduction of any new developments that could
enhance the current strategy
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Answer & Solution
Answer: Option A
Solution:
The planning gap is a concept that is used to clarify the extent of revenue or profits gap that might emerge if current strategies are left unchanged. Gap analysis can identify gaps in
the market. Thus, comparing forecast profits to desired profits reveals the planning gap. This represents a goal for new activities in general, and new products in particular. The
planning gap can be divided into three main elements: usage gap, existing gap, and product gap.

17. ______________ strategy involves adopting a combined approach of low costs and high local respnsiveness
simultaneously by the firms for their products and services
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A. Global
B. Multidomestic
C. International
D. Transnational
Answer & Solution
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Answer & Solution
Answer: Option D
Solution:
Transnational strategy involves adopting a combined approach of low costs and high local respnsiveness simultaneously by the firms for their products and services. A
transnational strategy is a set of planned actions defined by a company to have operations in markets abroad. This term generally applies to the methods and structures that allow
a firm to initiate and maintain functions in foreign countries while preserving central coordination at one specific location.
18. ___________ is also known as corporate appraisal, appraisal of internal factors and audit of organizational competence
A. Organizational analysis
B. Environmental analysis
C. Industry analysis
D. Business analysis
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Answer & Solution
Answer: Option A
Solution:
Organizational analysis is also known as corporate appraisal, appraisal of internal factors and audit of organizational competence. Organizational analysis is the process of
appraising the growth, personnel, operations, and work environment of an entity. Undertaking an organizational analysis is beneficial as it enables management to identify areas of
weakness, and then find approaches for eliminating the problems.
19. The understanding of what key element is essential for successful strategic planning?
A. Understanding the needs and expectations of stakeholders
B. Understanding competencies

C. Understanding the processes of strategic change
D. Understanding how to plan
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Answer & Solution
Answer: Option C
Solution:
Understanding the processes of strategic change is essential for successful strategic planning. Strategic planning is a process in which organizational leaders determine their vision
for the future as well as identify their goals and objectives for the organization.
20. _________________ is the process through which an organization evaluates its capability so as to have competitive
advantage at market place
A. Environmental analysis
B. Organizational analysis
C. Industry analysis
D. Business analysis
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Save for Later
Answer & Solution
Answer: Option B
Solution:
Organizational analysis is the process through which an organization evaluates its capability so as to have competitive advantage at market place. Organizational analysis is the
process of appraising the growth, personnel, operations, and work environment of an entity. Undertaking an organizational analysis is beneficial as it enables management to
identify areas of weakness, and then find approaches for eliminating the problems.
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16. Business unit competencies should be distinctive enough to provide a(n):
A. clear understanding of who you want to lead the company
B. competitive advantage
C. opportunity to compete on a productivity basis
D. additional strategic mission
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Answer & Solution
Answer: Option B
Solution:
Business unit competencies should be distinctive enough to provide a competitive advantage. Business competency is a set of particular abilities and knowledge that sets a
company apart from its competitors. In highly successful companies, core competencies have most likely developed in areas where they add the most value to products.
17. TQM is a strategy that is designed to change the quality of a product to satisfy customer needs by using the concept of

_________:
A. benchmarking
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B. brainstorming
C. reverse brainstorming
D. product maintenance
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18. Firms may view growth opportunities in these terms:
A. Current markets and current products
B. Current and new markets, and current products
C. New markets and new products
D. Current and new markets, and current and new products
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Answer & Solution
Answer: Option D
Solution:
Firms may view growth opportunities in these terms Current and new markets, and current and new products. A growth company tends to have very profitable reinvestment
opportunities for its own retained earnings. Thus, it typically pays little to no dividends to stockholders opting instead to put most or all of its profits back into its expanding business.
19. The strategic marketing process is how an organization allocates its marketing mix resources to reach its:
A. stated business ideas
B. potential
C. target markets
D. competition
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Answer & Solution
Answer: Option C
Solution:
The strategic marketing process is how an organization allocates its marketing mix resources to reach its target markets. Strategic Marketing is a process of planning, developing
and implementing maneuvers to obtain a competitive edge in your chosen niche. This process is necessary to outline and simplify a direct map of the company's objectives and
how to achieve them.

20. An effective short-hand summary of the situation analysis is a:
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A. BCG analysis
B. SWOT analysis
C. SBU analysis
D. Competition analysis
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Answer & Solution
Answer: Option A
Solution:
An effective short-hand summary of the situation analysis is a BCG analysis. BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of
the business brand portfolio and its potential. It classifies business portfolio into four categories based on industry attractiveness (growth rate of that industry) and competitive
position (relative market share).
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21. What is the starting point of strategic intent?
A. Objectives
B. Goals
C. Mission
D. Vision
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Answer & Solution
Answer: Option D
Solution:
Vision is the starting point of strategic intent. The fundamental purpose of strategic planning is to align a company's mission with its vision. Without mission and vision, the plan
exists in a vacuum, as the mission is the starting point for planning, the vision is the destination, and the strategic plan is the roadmap that helps you navigate from one to the other.
22. Corporate level strategy deals with:


A. objectives of specific functions
B. objective of Single strategic Business Unit
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C. objectives of the corporate
D. objectives of specific operations
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Answer & Solution
Answer: Option C
Solution:
Corporate level strategy deals with objectives of the corporate. we can simply say that corporate level strategies are concerned with questions about what business to compete in.
Corporate Strategy involves the careful analysis of the selection of businesses the company can successful compete in. Corporate level strategies affect the entire organization and
are considered delicate in the strategic planning process.
23. From the following activity which does not comes under the primary activities of value Chain analysis:
A. Operations
B. Technology development
C. Marketing and sales
D. Services
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Answer & Solution
Answer: Option B
Solution:
Technology development activity does not comes under the primary activities of value Chain analysis. Value chain analysis is a strategy tool used to analyze internal firm activities.
Its goal is to recognize, which activities are the most valuable (i.e. are the source of cost or differentiation advantage) to the firm and which ones could be improved to provide
competitive advantage.
24. 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?
A. Corporate philosophy statement
B. Company creed
C. Vision statement
D. Mission statement

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restrictive-33237)
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Answer & Solution
Answer: Option C
Solution:
Vision statement 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. A vision
statement is an organization's declaration of its mid-term and long-term goals, stating what they want to become in the future. Vision statements act as a goal for a company to
strive toward.
25. One of the top level manager of a large manufacturing plant uses to spend her day trying to ensure that the material waste
is not more than 10% , she spends her day performing the management process of:
A. Planning
B. Organizing
C. Leading
D. Controlling
Answer & Solution
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Answer & Solution
Answer: Option D
Solution:
One of the top level manager of a large manufacturing plant uses to spend her day trying to ensure that the material waste is not more than 10% , she spends her day performing
the management process of controlling. Control is a primary goal-oriented function of management in an organisation. It is a process of comparing the actual performance with the
set standards of the company to ensure that activities are performed according to the plans and if not then taking corrective action.
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21. In Ansoff's matrix, product development involves going in the direction of
A. present products to present markets
B. present products to new markets
C. new products to present markets
D. new products to new markets
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Answer & Solution
Answer: Option C
Solution:
In Ansoff's matrix, product development involves going in the direction of new products to present markets. The Ansoff Matrix is a strategic planning tool that provides a framework
to help executives, senior managers, and marketers devise strategies for future growth.
22. Which of these questions is not addressed by an effective business model?
A. What do customers value today?
B. Who are our customers?
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C. What does the organization produce?
D. None of the above All are essential questions for effective business models
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Answer & Solution
Answer: Option D
Solution:
A business model typically includes a description of your customers, how customers use your product, how you distribute your product and details about how you promote your
business. The model also describes key operational tasks, staffing and other resource requirements as well as details about how business is conducted. A business model
describes your business using visual images, typically on a single page, while a business plan describes your business in a more lengthy document.
23. Which of the following would you not expect to see in a vision statement?
A. Descriptions of desirable future situations
B. Motivational terminology
C. Focus on the values to which the organization is committed
D. What the organization seeks to do to reach desirable future states
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Answer & Solution
Answer: Option D
Solution:
What the organization seeks to do to reach desirable future states is not expected to see in a vision statement.
24. What are the decisions and actions that determine long-run performance of an organization?
A. strategies
B. missions
C. goals
D. opportunities
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Answer & Solution
Answer: Option A
Solution:
Strategies are the decisions and actions that determine long-run performance of an organization. Strategic management therefore emphasizes the monitoring and evaluating of
external opportunities and threats in lights of a corporation's strengths and weaknesses.
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25. Which of the following does Campbell (1989) suggest to be a dimension of valuable mission statements?
A. Differentiates the business from competitors
B. States the objectives of the organization
C. Meaningful and relevant to stakeholders
D. States the values of the organization
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Answer & Solution
Answer: Option D
Solution:
Campbell (1989) suggestion to be a dimension of valuable mission statements states the values of the organization.
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21. The process of developing a mission statement includes which of these as the first activity?
A. A request to modify the current document
B. Ask managers to read selected articles about mission statements
C. Ask managers to prepare a mission statement for the organization
D. A merging of several mission statements into one document
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Answer & Solution
Answer: Option B
Solution:
The process of developing a mission statement includes ask managers to read selected articles about mission statements. A mission statement defines what an organization is,
why it exists, its reason for being. At a minimum, your mission statement should define who your primary customers are, identify the products and services you produce, and
describe the geographical location in which you operate.
22. Which of the following is a skill required by organizations to deal with competitive chaos? 
A. The ability to share information among all managers
B. The ability to operate efficiently and effectively
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C. The ability to discern patters in the dynamic environment and competitive chaos, and spot opportunities ahead of rivals
D. The ability to benchmark competitors
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Answer & Solution
Answer: Option C
Solution:
The ability to discern patters in the dynamic environment and competitive chaos, and spot opportunities ahead of rivals is a skill required by organizations to deal with competitive
chaos.
23. What can be used to promote unbiased views and to manage the development of the mission and vision statement more
effectively?
A. an internal group
B. a committee of managers
C. command-and-control
D. a facilitator
Answer & Solution Discuss in Board (https://www.examveda.com/what-can-be-used-to-promote-unbiased-views-and-to-manage-the-development-of-the-mission-and-vision-statement-more-effectively-33376)
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Answer & Solution
Answer: Option D
Solution:
A facilitator can be used to promote unbiased views and to manage the development of the mission and vision statement more effectively. Facilitation is defined as an activity
designed ‘to make easier, to promote or help forward’. In business, it is about helping people to solve their problems using their own solutions.
24. Which of the following is a characteristic of a customer-driving organization?
A. Innovative
B. Conservative
C. Responsive
D. Unresponsive
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
Answer & Solution
Answer: Option C
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Solution:
Responsive is a characteristic of a customer-driving organization. Customer responsiveness measures the speed and quality at which your company provides customer service and
communication.
25. An effective mission statement is all of the following except
A. It reflects judgments about future growth directions that are based upon forward-looking external and internal analyses
B. It provides useful criteria for selecting among alternative strategies
C. It provides a basis for generating and screening strategic options
D. It is static in orientation
Answer & Solution Discuss in Board (https://www.examveda.com/an-effective-mission-statement-is-all-of-the-following-except-33378) Save for Later
Answer & Solution
Answer: Option D
Solution:
An effective mission statement is all of the following except it is static in orientation. To be effective, mission statements need to clarify the intentions of the business while being
inspirational and meaningful to customers and employees. Successful mission statements may take time to create, but when they are developed correctly, they provide a company
with clear direction and purpose.

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mcq-question-
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21. Which of these is not a role for a planner as discussed by Robinson (1986)
A. To help managers make decisions regarding strategic changes
B. To enable good managers to plan
C. To state objectives
D. To concentrate on understanding the future
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Answer & Solution
Answer: Option C
Solution:
To state objectives is not a role for a planner as discussed by Robinson (1986).
22. ______________ is called as a bundle of resources


A. Industry
B. Unit
C. Organization
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D. Management
Answer & Solution Discuss in Board (https://www.examveda.com/is-called-as-a-bundle-of-resources-33445) Save for Later
Answer & Solution
Answer: Option C
Solution:
Organization is called as a bundle of resources. An organization is a group of people who work together, like a neighborhood association, a charity, a union, or a corporation.
Organization is also the act of forming or establishing something (like an organization).
23. Which of the following is not en element of the growth/market options matrix developed by Ansoff (1987)?
A. Market development
B. Diversification
C. Product development
D. Market segmentation
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Answer & Solution
Answer: Option D
Solution:
Market segmentation is not en element of the growth/market options matrix developed by Ansoff (1987). The Ansoff Matrix was developed by H. Igor Ansoff and first published in
the Harvard Business Review in 1957, in an article titled "Strategies for Diversification." It has given generations of marketers and business leaders a quick and simple way to think
about the risks of growth.
24. Which of the following is not a key planning element of spheres of influence?
A. Buffer zones
B. Forward positions
C. Cost base
D. Vital interests
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Answer & Solution


Answer: Option C
Solution:
Cost base is not a key planning element of spheres of influence. The cost base of a capital gains tax (CGT) asset is generally the cost of the asset when you bought it, plus certain
other costs associated with acquiring, holding and disposing of the asset.
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25. ____________ assesses the whole strategic management process
A. Strategic audit
B. Company audit
C. Business audit
Answer & Solution Discuss in Board (https://www.examveda.com/assesses-the-whole-strategic-management-process-33448) Save for Later
Answer & Solution
Answer: Option A
Solution:
Strategic audit assesses the whole strategic management process. A strategic audit is an in-depth review to determine whether a company is meeting its organizational objectives
in the most efficient way. Additionally, it examines whether the company is utilizing its resources fully. A successful strategic audit is beneficial to any company.
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21. In the strategic marketing process, once you get results you go into the:
A. control phase
B. marketing plan
C. planning phase
D. marketing program
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Answer & Solution
Answer: Option A
Solution:
In the strategic marketing process, once you get results you go into the control phase. The evaluation phase is the checking phase. This process involves ensuring that the results
of the program are in line with the goals set. The marketing team, especially the manager will need to observe any deviations in the plan and quickly correct negative deviations to
get back on course.
22. Ben & Jerry had four market-product strategies to expand sales. They included (1) market penetration, (2) product 
development, (3) market development and:
A. current customer retention
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B. defensive synergy
C. diversification
D. product simplification
Answer & Solution
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Answer & Solution
Answer: Option C
Solution:
Ben & Jerry had four market-product strategies to expand sales. They included (1) market penetration, (2) product development, (3) market development and (4) diversification.
23. Aggregating prospective buyers into groups is called:
A. market categorization
B. market segmentation
C. modeling
D. BCG matrix analysis
Answer & Solution Discuss in Board (https://www.examveda.com/aggregating-prospective-buyers-into-groups-is-called-33516) Save for Later
Answer & Solution
Answer: Option B
Solution:
Aggregating prospective buyers into groups is called market segmentation. Market segmentation is the process of dividing a market of potential customers into groups, or
segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as
similar interests, needs, or locations.
24. cohesive marketing mix consists of the product, promotion, price, and
A. personnel
B. production
C. advertising
D. communication

Answer & Solution Discuss in Board (https://www.examveda.com/cohesive-marketing-mix-consists-of-the-product-promotion-price-and-33517) Save for Later
Answer & Solution
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Answer: Option D
Solution:
Cohesive marketing mix consists of the product, promotion, price, and communication. A cohesive marketing strategy is one that takes all your different platforms of promoting your
business and aligns them to the same strategy.
25. One key to effective implementation is setting:
A. schedule of events
B. deadlines
C. milestones
D. good managers in motion
Answer & Solution Discuss in Board (https://www.examveda.com/one-key-to-effective-implementation-is-setting-33518) Save for Later
Answer & Solution
Answer: Option D
Solution:
One key to effective implementation is setting good managers in motion. Implementing Effective Interventions is a process of assuring that key aspects of promising approaches are
put into practice as intended and to meet local needs.

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2. stability strategy is a ____________ strategy 

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4. Marketing strategy is a ___________ type of strategy

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D. Grand strategy matrix

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2. Which one of the following is of concern for not-for-profit organizations? 

A. The markets to service

B. Identifying suppliers to deal with

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A. implies an ability to react to events

C. implies no deviation from plans

D. implies constant evaluation of the bigger picture

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5. Select the most accurate statement. Value

A. means value for money

C. is the benefits of a product/service as perceived by the customer

D. does not offer competitive advantage

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