AURORA’S PG COLLEGE

DEPARTMENT OF MANAGEMENT
YEAR: II SEMESTER: IV
SUBJECT CODE: 4.1 SUBJECT: BUSINESS POLICY AND STRATEGY
UNIT - I
I. Multiple Choice Questions
1) A set of managerial decisions and actions that determines the long run performance of a corporation is
known as
a)Strategic management b) Superior management c) Scientific management d) Simple management
2) A process by which strategies and policies are put into action through the development of programmes,
budgets, and procedures is known as
a) Strategy Development b) Strategy Formulation c) Strategy Evaluation d) Strategy
Implementation
3. A process in which corporate activities and performance results are monitored so that actual
performance can be compared with desired performance is known as
a) Election and Control b) Evaluation and Control c) Elimination d) Event and Control
4. SOP stands for
a) Superior Order Projects b) Success Order Posting c) Standard Operating Procedures d) Similar
Oral Procedures
5. Functional strategies support business strategies which in turn support the
a) Corporate Strategies b) Hierarchy Strategy c) Strategic Fit d) Strategy Decisions
6. The component parts in an organization delivering effectively the corporate and business level
strategies in terms of resources, processes and people is known as
a) Operational b) Turnaround c) Marketing d) Competitive
7. Resources and competencies that an organization can use to provide value to customers or clients is
known as
a) Functional Capability b) Business Capability c) Strategic Capability d) Competitive Capability
8. Strategy concerned with identifying the impact on strategy of the external environment is known as
a) Strategic Choice b) Strategic Decision c) Strategic Corner d) Strategic Position
9. Understanding the underlying bases for future strategy at both the business unit and corporate levels is
known as
a) Strategic Choice b) Strategic Development c) Strategic Issue d) Strategic Control
10. Strategy concerned with ensuring that strategies are working in practice is known as
a) Strategy out of action b) Strategy into action c) Strategy for action d) Strategy to action
11. Different ways of looking at the issues of strategy development for an organization is known as
a) Strategy Design b) Strategy Experience c) Strategy Idea d) Strategy Lenses
12. The basic assumptions and beliefs that are shared by members of an organization is known as
a) Organisation Culture b) Country’s Culture c) Business Culture d) Factories Culture
13. The forces likely to affect the structure of an industry, sector or market is known as
a) Business drivers of change b) Key drivers of change c) Strategic drivers of change d) Success drivers
of change
14. The action plans of specific, step-by-step methods by which strategies are executed is known as
a) Terrain b) Trust c) Tactic d) Type
15. In which of the strategic modes, is a decision made by a powerful individual in the organization?
a) Strategic Mode b) Entrepreneurial Mode c) Adoptive Mode d) Planning Mode

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II. Fill In the Blanks:
1. Strategic Management emphasizes long term performance.
2. Small companies, in particular, may plan informally and irregularly.
3. Globalization is the integrated internationalization of markets and corporations.
4. Projects are proposed on the basis of very little analysis, with most information coming from within
the firm.
5. Environment sustainability refers to the use of business practices to reduce a company’s impact on
natural and physical environment.
6. Environmental scanning is the monitoring, evaluating, and disseminating of information from the
external and internal environments to key people within the corporation.
7. Strategy formulation is the development of long range plans for the effective management.
8. An organization’s mission is the purpose or reason for the organisation’s existence.
9. A mission may be defined narrowly or broadly in scope.
10. Objectives are the end results of planned activity.
11. Goal is an open ended statement of what one wants to accomplish.
12. A Strategy of a corporation forms a comprehensive master plan that states how the corporation will
achieve its mission and objectives.
13. Corporate strategy describes a company’s overall direction in terms of its general attitude toward
growth and the management of its various businesses and product lines.
14. Corporate strategies typically fit within the three main categories of stability, growth, and
retrenchment.
15. Vision describes what the organization would like to become.

III. Short Answer Questions

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1. Strategic Choice
2. Strategic Position
3. Strategic Intent
4. Strategy vs Tactics

UNIT – II
I. Multiple Choice Questions
1. An advanced information discovery system designed to help extract trends is known as
a)Environmental fountain b) Business fountain c) Political fountain d) Web fountain

2. PEST stands for

a)Political, Economic, Socio, Cultural and Technological b) Policy, Economic, Society
and Teaching c) Program, Election, Scrutiny and Telegram d) Procedure, Ethics, Simple and
Transparency
3. The current concerns that arise in response to events and trends are known as
a)Inclusive b) Issues c) Intellectual d) Impact
4. The demands of interested groups in view of their concern for issues is known as
a) Environment b) External c) Expectation d) Extreme
5. The process wherein participants are encouraged to be open, inventive and as imaginative as
possible is known as
a) Brain Storming b) Brain Success c) Brain Superior d) Brain Stride
6. A group of firms producing similar product or service is known as
a) Firm b) Skill c) Industry d) Sector
7. Environment that includes physical resources, wildlife and climate that are an inherent part of
existence on Earth is known as
a) Societal Environment b) Economic Environment c) Cultural Environment d) Natural
Environment
8. Environment that includes mankind’s social system of general forces is known as
a) Political b) Ecological c) Sustainable d) Societal
9. Forces that generate problem-solving inventions are known as
a) Issues b) Challenges c) Expectations d) Technological
10. Forces that allocate power and provide constraining and protecting laws and regulations are
known as
a) Related & Unrelated b) Political & Legal c) Individual & Combined d) Growth &
Competitive
II. Fill in the blanks
1. New Entrants to an industry typically bring to it new capacity, to gain market share, and
substantial resources.
2. An entry barrier is an obstruction that makes it difficult for a company to enter an industry.

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3. A substitute product is a product that appears to be different but can satisfy the same need as
another product.
4. Suppliers can affect an industry through their ability to raise prices or reduce the quality of
purchased goods and services.
5. Buyers can affect an industry through their ability to force down prices, bargain for higher
quality or more services, and play competitors against each other.
6. Multi domestic industries are specific to each country or group of countries.
7. Global industries operate worldwide.
8. A Strategic group is a set of business units or firms that “ pursue similar strategies with
similar resources.
9. Analyzers are corporations that operate in at least two different product-market areas.
10. Reactors are corporations that lack a consistent strategy- structure – culture relationship.
III. Short Answer Questions

1. Core Competencies
2. Distinctive Competencies
3. Environmental Scanning
4. Sociocultural Environment
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