STRATEGIC PLANNING AND IMPLEMENTATION – IMT G06

PART – I

1) Quick access to new market, complex negotiation involved, and problems of merging with
domestic operations, are characteristics of
 Exporting
 Licencing
 Strategic alliance
 Acquisition

2) Examples of intangible resources are [P-67]

 Production equipment
 Scientific capabilities, organizational routines
 Formal reporting structures
 Distribution Centres

3) Which of the following question would be redundant for a business strategy?

 Who are the customers to be served?
 What customer needs are to be served?
 Why should these customer’s needs be satisfied?
 None of the above.

4) The five forces of competition model include all except

 Rivalry among competing firms.
 Threat of substitute products and new entrants
 Bargaining power of buyers and suppliers
 None of the above.

5) The fundamental purpose of Strategic management is

 To increase turnover of the firm.
 To reap above average profits
 To maximize efficiency
 All the above.

6) Employees of a firm take a huge loan to purchase all the assets of their employer company. This
process is called
 MBO
 ESOP
 LBO
 EBO

7) Shareholders of an acquired firm generally

 get above average return on their shares
 get below average return on their shares
 get negligible or zero return on their shares
 get average return on their shares.

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 8) As above screenshot

9) Establishing a franchisee in a new market, gain access to a restrict market, and maintain market
stability, are reasons of forming strategic alliance in
 Standard cycle market
 Fast cycle market
 Slow cycle
 Any of the markets

10) Risks involved in differentiation strategy are all except

 Counterfeiting
 Customer perception of erosion of value in differentiated products
 Enhanced customer loyalty
 Imitation

11) Greenfield ventures is

 Strategic alliance
 Export oriented unit
 New wholly owned subsidiary
 None of the above

12) Which of the following is not a reason for acquisitions

 Lower risk compared to developing new products
 Reshaping the firm’s competitive scope
 Large or extraordinary debt
 Overcoming entry barriers

13) According to Raymond Vernon’s International Product Life Cycle Theory, International
diversification is preferable in order to
 Avoid international trade regulations
 Avoid domestic governmental taxation pressures
 Enhance the product’s lift cycle.
 All the above.

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 14) Which of the following pairs of firms has least resource similarity.
 ICICI Pru & Bajaj Allianz
 Frito Lay & coca cola
 Raymond’s & S Kumar’s
 RIL & ONGC

15) Non equality strategic alliance are ________ formal and demand _________ partner commitments
that do JVs.
 Less, fewer
 Less, greater
 More, fewer
 More, greater

16) Broadly speaking, which of the following is true?

 Firms competing in single market have greater rivalry than firms competing in multiple market.
 Firms competing in single market have lesser rivalry than firms competing in multiple market.
 Firms competing in single market have similar rivalry than firms competing in multiple market.
 Firms competing in single market have no correlation with rivalry amongst firms competing in
multiple market.

17) Which of the following measures characterize a cost leadership strategy?

 Formalization is limited so that change is more readily accomplished
 Marketing is the main function.
 Overall structure is organic
 Operations is the main functions; job roles are highly structured.

18) Pharmaceutical market is

 Standard cycle market
 Slow cycle market
 Fast cycle market
 Moderate cycle market

19) A multidivisional strategy and organizational structure is characterized by

 A CEO and corporate staff with functional line managers.
 An owner manager making all major decisions and monitoring all activities.
 A corporate office and operating divisions
 None of the above.

20) A firm competing in a single product market area in a single geographical location may not need a
 Corporate level strategy
 Business strategy
 International strategy
 1&3

21) First movers is a firm

 That takes initial competitive action in order to build or defend its competitive advantage
 That is more cautious than others about the uncertainty, of future cash flow.
 That develops a unique way to enter the market after diligently analysing competitors’ actions
 All the above.

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 22) Cooperative strategic alliances which are less formal contracts with fewer constraints on the
partners behaviours
 Specify how the cooperative strategy is to be monitored & how partner behaviour is to be
controlled.
 Make it possible to explore how their resources and capabilities can be shared in multiple value
creating ways.
 Both the above.
 None of the above.

23) __________ Strategy is to continue doing what the company has been doing, just doing it better.
 Grand
 Stability
 Growth
 Recovery.

24) Agency problem can be understood and managed by realizing that both owners as well as manager
seek to reduce difference is that
 Owners seeks diversification somewhere between dominant business and unrelated businesses.
 Owners seeks diversification somewhere between dominant business and related constrained.
 Managers seeks diversification somewhere between related linked and unrelated business.
 2&3

25) Which of the following orientations does not comprise the entrepreneurial mind-set?
 Proactiveness
 Autonomy
 Competitive aggressiveness.
 Risk aversion

26) All except ________ are support activities in the basic value chain are given by Michael E Porter
 HRM
 Outbound logistics.
 Firm infrastructure
 Technological development.

27) Disruptive technologies destroy

 Tax evasions
 Value of an existing technology
 Scrap & obsolete materials in an operating facility
 NPD process

28) Greater acquisition success accrues to firms which are able to

 Select the ‘right’ target
 Avoid paying too high a premium
 Avoid getting trapped in the ‘bidding war’
 All the above.

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 29) Tacit collusion exists
 When several firms in an industry indirectly coordinate their production and pricing divisions by
observing each competitive actions and responses
 When two or more firms negotiate directly with the intension of jointly agreeing about the
amount to produce and the product
 When firms use business level strategies to hedge against risk & uncertainty, specially in fast
cycle markets
 1&2

30) The world famous company which used the slogan “Always low prices” for 19 years, has recently
changed to a new
 Save money, live better.
 Sabse sasta
 We understand you pocket.
 We reduce your costs.

31) Scanning, monitoring, forecasting, and assessing are

 Components of external environment analysis.
 Contemporary business level strategies.
 International diversification strategies.
 Methods of strategic alliances formation.

32) Business-level-strategies are generic because.

 They can be used across international borders.
 They can be used by any organization competing in any industry.
 They can be used without regard to organization structure
 All the above.

33) Managerial opportunism is

 Is seeking of self-interest with guile
 That have a small share of a fast growing market
 That have a small share of a slow growing market
 That have a large share of a fast growing market.

34) Value neutral diversification is characterized by

 Uncertain future cash flows
 Vertical integration
 Both the above
 None of the above

35) XYZ Limited has businesses in crude oil extraction, pharmaceuticals, textiles and cement
manufacturing. Recently it has been decided that XYZ Ltd would sell its cement business. This
measure can be termed as:
 Downsizing
 Downscoping
 Restructuring
 None

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 36) Internal CEO succession in a heterogeneous top management team results in
 Stability strategy with innovation.
 Stable strategy
 Ambiguity in team & strategy.
 Strategic change.

37) Unicorn Buildtech Ltd manufactures tyres (3% of revenue), garments (2% of revenue) and construct
buildings (95% of revenue). The company is a
 Conglomerate of various firms.
 Diversified firm.
 Single business firm.
 None of the above.

38) Haldiram, the Indian ready to eat snack must remain engaged in incremental innovation and
extension of its product line
 Ready to eat snacks market is standard cycle market
 Ready to eat snacks market is a fast cycle market.
 Ready to eat snacks market is a slow cycle market.
 None of the above.

39) Which of the following is true about strategic alliance?

 It is unlikely to succeed if partnering firms are headquartered in the same country.
 It may be too restrictive to facilitate entry into new markets.
 It generally increases the ICOR
 It is more frequent than other types of cooperative strategies.

40) A firm that generates less than 70% of its revenue from its dominant business and has a vertical
integrations with its own business is said to be engaged in ____________
 Dominant business consolidation.
 Related linked diversification.
 Related constrained diversification.
 Unrelated diversification.
41) Awareness, as a prerequisite to any competitive action or response taken by a firm refers to
 The extent to which competitors recognize the degree of their mutual interdependence that
results from market and resource similarity.
 The firm’s incentive to take action or to respond to a competitor attack, related to perceived gain
or loss.
 The firm’s resources and the flexibility arising from those resources.
 None of the above.

42) A firm’s relationship with customers is characterised by all dimensions, except

 Richness
 Reach
 Anticipation
 Affiliation.

43) Globalization has resulted in

 Increased loyalty of customers
 Enhanced quality of goods and services
 Diminishing efficiency
 Diminishing returns on investments.

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 44) Likelihood of attack & likelihood of response are features of ____________ aspect of competitive
rivalry
 Outcomes
 Interfirm rivalry
 Drivers of competition.
 Competitive analysis.

45) Differential strategy offers

 A broad segment something unique based on easy to manufacture technologies.
 A broad segment something unique based on strong capability in basic research.
 A narrow segment something unique based on easy to manufacture technologies.
 A narrow segment something unique based on strong capability in basic research.

46) The T series sold its cassettes for less than Rs 20 while market leader HMV was selling for Rs. 50.
As a res existence. This event is most likely an example of
 Identifying opportunity.
 Generic strength
 Response to threat
 Scanning the environment.

47) None of the following elements belong to political / legal segment of general government, except
 Critical global market
 Inflation
 Labour training laws.
 Trade deficit or surplus

48) A firm characterized by less than 70% of revenue coming from the dominant business and only
exhibits
 Very high level of unrelated diversification.
 Moderate to high level of diversification.
 Low level of diversification
 1&2
49) Which of the following is NOT an economic task?
 Increasing trend of counterfeit products.
 Tax rebates to domestic firms engaged in exports
 Institutional instability in government.
 Exchange rate

50) Benefit segmentation is based on

 Demographic factors
 Socioeconomic factors
 Consumption patterns
 Perceptual factors.

51) In BCG matrix, “Question Marks” are those products/companies.

 That have a large share of a fast growing market.
 That have a small share of a fast growing market.
 That have a large share of a slow growing market.
 That have a small share of a slow growing market.

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 52) Agency costs include
 Cost of goods sold
 Incentive costs
 Monitoring costs
 Enforcement costs

53) Maruti Udyog Ltd is most likely an example of _________based on the fact that the company every
segment except the ultra-luxury segment.
 Cost leadership
 Focused cost leadership.
 Focused differentiation.
 Integrated cost leadership/differentiation strategy.

54) Licensing is an increasingly common form of organizational network, particularly among ______
 Larger.
 Smaller
 Medium sized.
 All the above.

55) Which of the following is NOT a business level strategy.

 Differentiation.
 Focussed differentiation.
 Integrated cost leadership/differentiation.
 None of the above.

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 PART - II

By the time Michael Dell enrolled at the University of Texas in 1983 he was already a successful
entrepreneur. Although his initial academic interest was not business he, launched a venture selling random
access memory (RAM) and disc drivers for IBM PCs out of his dorm room. When his business grossed $80000
a month the following year , Dell decided to drop out of college and focus on his new enterprise full time.
Dell started selling IBM PC clones directly to consumers, resulting in 40% drop in prices. However profits
declined by 1990 & Dell responded by reducing inventories drastically. By 1996 Dell started selling its PCs
through its website. In 1999 Dell launched $999 PC. However by 2001 it cut 5000 jobs to cut costs. Eventually
Dell has become truly global with desktop PC's accounting for 50% of revenues. By 2003, Michael Dell owned
12% of the firm.

1) Michael Dell started business in

 1980
 1983
 1990
 1999

2) Why was reduction in Dell’s profits observed by 1990’s?

 Diminishing competitive advantage
 Counterfeiting
 Recession in economy
 All the above.

3) What type of strategy was adopted by Michael Dell to become global?

 Merger
 Acquisition.
 Expansion
 Diversification

4) Dell resorted to _________ in response to reducing profits

 Reducing inventory cost
 Reducing R&D
 E-Commerce
 All of the above.

5) Dell started by selling

 Software
 Hardware
 E-commerce
 None of the above.

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