P-9: Operations Management & Strategic Management - Bit Questions

STRATEGIC MANAGEMENT
(I) Choose the most appropriate one from given four alternatives.

1. Benchmarking is
(A) the analytical tool to identify high cost activities based on the 'Pareto Analysis'.
(B) the search for industries best practices that lead to superior performance.
(C) the simulation of cost reduction schemes that helps to build commitment and
improvement of actions.
(D) the process of marketing and redesigning the way a typical company works.
(E) the framework that earmarks a linkage with suppliers and customers.

2. Successful differentiation strategy allows the company to

(A) gain buyer loyalty to its brands.
(B) charge too high a price premium.
(C) depend only on intrinsic product attributes.
ht

(D) have product quality that exceeds buyers' needs.

tp

(E) segment a market into distinct group of buyers.

s:

3. The essential ingredients of Business Process Re-engineering (BPR) are

//m

(A) continuous improvements of products, processes and technologies.

(B) planning for the technologies, processes and strategic partnerships etc.
as

(C) fundamental re-thinking and radical redesign of business process to achieve

dramatic results.
ho

(D) generation, comparison and evolution of many ideas to find one worthy of
or

development.
(E) identification and selection of lay-outs most suited for products and processes.
bo

4. Organisation culture is
ok

(A) appreciation for the arts in the organisation.

(B) ability of the organization to act in a responsible manner to its employees.
s.

(C) combination of (A) and (B) above

bl

(D) deeper level of basic assumptions and beliefs that are shared by the members of
og

the firm.
(E) None of the above
sp

5. Innovation strategy is
ot

(A) defensive strategy

.c

(B) offensive strategy

om

(C) responding to anticipating customers and market demands

(D) guerrilla strategy
(E) harvesting strategy
/

6. A corporate strategy can be defined as:

(A) A list of actions about operational planning and statement of organization
structure and control system:
(B) A statement of how to compete, directions of growth and method o assessing
environment;
(C) Abatement of organization’s activities and allocation of resources;
(D) A course of action or choice of alternatives, specifying the resources required to
achieve certain stated objectives;
(E) A statement or where and how the company will prefer to operate.

7. A strategic business unit (SUB) is defined as a division of an organization:

(A) That help in the marketing operations.
(B) That enable managers to have better control over the resources.

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 P-9: Operations Management & Strategic Management - Bit Questions

(C) The help in the choice of technology.

(D) that help in the allocation of scarce resources.
(E) That help in identifying talents and potentials of people.

8. Indian Airlines decreasing the airfare on the Delhi – Mumbai sector following the
introduction of the no frills airlines would be an example of
(A) Cost leadership
(B) Price leadership
(C) Product differentiate
(D) Focus
(E) Market retention

9. Question mark in BCG Matrix is an investment, which

(A) Yields low current income but has bright growth prospects.
(B) Yields high current income and has bright growth prospects.
(C) Yields high current income and has bleak growth prospects.
ht

(D) Yields low current income and has bleak growth prospects.
tp

10. For an entrepreneur

s:

(A) Vision is before the mission

//m

(B) Mission is before the vision

(C) Both are developed simultaneously
(D) Vision or mission are un-important issue
as

(E) Profitability is most crucial

ho

11. Typically profits are highest in which stage of the industry life-cycle?
or

(A) Introduction
(B) Growth
bo

(C) Maturity
ok

(D) Decline
s.

12. The BCG growth matrix is based on two dimensions:

bl

(A) market size and competitive intensity

(B) relative market share and market/industry growth rate
og

(C) profit margins and market size

(D) market size and market share
sp
ot

13. The strategy of the Reliance Group in India would be a good example of
(A) Conglomerate diversification
.c

(B) Market development

om

(C) Price Transfers

(D) Concentric Diversification
/

14. For an actor in Bollywood, his outstanding performance would be a/an

(A) Asset
(B) Strategic asset
(C) Core competency
(D) Capability

15. In product life cycle, ‘cash cows’ indicates

(A) High share
(B) Low growth and negative cash flow
(C) High share, low growth and large positive cash flow
(D) Low share, high growth and large positive cash flow

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 P-9: Operations Management & Strategic Management - Bit Questions

16. If an organisation acquires its supplier, it is an example of:

(A) Horizontal integration
(B) Forwards vertical integration
(C) Backwards vertical integration
(D) Downstream vertical integration

17. Delphi Technique:

(A) is an attempt to describe a sequence of events that demonstrates how a
particular goal might be reached
(B) is a method of obtaining a systematic refined consensus from a group of experts
(C) is assessing the desirability of future goals and thereafter selecting those areas of
development that are necessary to achieve the desired goals
(D) is concentrating on the impact which various forecasted technological
developments might have on particular industries

18. Board of directors has certain basic tasks as follows:

ht

(A) To monitor plans and programs of production.

(B) To design the course of strategic options and appointment of top management.
tp

(C) To control utilization of resources.

s:

(D) To monitor courses of actions for marketing management.

//m

19. Mckinsey's 7-s framework consists of:

(A) Structure, Strategy, Software, Skills, Styles, Staff and Supervision
as

(B) Structure, Strategy, Systems, Skills, Styles, Syndication and Shared values
ho

(C) Structure, Strategy, Systems, Skills, Steering power, Styles and Shared values
(D) Structure, Strategy, Staff, Skills, Systems, Shared values, Style
or

(e) None of the above

bo

20. What are enduring statements of purpose that distinguish one business from other
ok

similar Firms?
(A) Policies
s.

(B) Mission statements

bl

(C) Objectives
(D) Rules
og

(E) Nature of ownership

sp

21. Outsourcing is the

ot

(A) spinning off of a value-creating activity to create a new firm.

(B) selling of a value-creating activity to other firms.
.c

(C) purchase of a value-creating activity from an external supplier.

om

(D) use of computers to obtain value-creating data from the Internet.

/

22. For an actress in Bollywood, her pretty face would be a/an

(A) Asset
(B) Strategic asset
(C) Core competency
(D) Capability
(E) All of the above

23. Strategic analysis is concerned with stating the position of the organisation in terms of:
(A) Mission, choice of market segments, product selection, financial targets, external appraisal;
(B) Mission, goals, corporate appraisal, position audit and gap analysis;
(C) Mission goals, identification of key competitors, SWOT and environmental appraisal;
(D) Mission, targeted ROI, manpower planning, position audit;
(E) Mission, SWOT, competitive strategies, stakeholders position and institutional goal.

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 P-9: Operations Management & Strategic Management - Bit Questions

24. Strategic choice makes a statement about the corporate strategy as well as business
strategy:
(A) They are one and the same
(B) One is an external planning and another resource planning statement
(C) Corporate strategy is a general statement and business strategy defines how a
SBU shall operate
(D) Both states certain course of action - one for the total unit and another for a
particular business
(E) One refers to the whole business and another helps in the formulation of marketing
decisions

25. Degree of involvement of Board of Directors may vary from passive to active level. It
may participate in one or more of the following activities (state which ones are more
appropriate as a judicious mix) :
(A) It constantly oversees the company’s mission, objectives and policies
(B) It approves issues like R&D, foreign collaborations, linkages with financial
ht

institutions
(C) Capital budgeting, new product launch and competitive strategy building
tp

(D) It tries to ensure that the company remains aligned with changing social, political
s:

and economic.
//m

(E) Oversees only the financial performance of the company.

26. Offensive strategy is a strategy:

as

(A) For small companies that consider offensive attacks in the market.
ho

(B) For those companies that search for new inventory opportunities to create
competitive advantage.
or

(C) For the market leader who should attack the competitor by introducing new
products that make existing ones obsolete.
bo

(D) For those companies who are strong in the market but not leaders and might
ok

capture a market share from the leader.

(E) None of the above.
s.
bl

27. SAIL’s famous advertising campaign of “there is a bit of steel in everyone’s life was
meant to:
og

(A) gain buyers awareness about its versatile product range

(B) create an image of superior performance
sp

(C) inform new buyers about its special products

ot

(D) enhance product quality perception

(E) achieve its mission
.c
om

28. Marketing Research studies are undertaken :

(A) to measure brand loyalty of a class of consumers
/

(B) to predict market potential of a product on a future date

(C) to understand product-price relationships
(D) to make out a case for revision of an existing strategy
(E) all of the above

29. Intensity of competition is ____ in low return industries.

(A) low
(B) non-existent
(C) high
(D) not important
(E) dependant on industry nature

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 P-9: Operations Management & Strategic Management - Bit Questions

30. Ansoff proposed that for filling the corporate planning gap, one follows four strategies
namely-
(A) market penetration, product differentiation, market identification and
diversification
(B) market penetration, product development, marketing research and diversification
(C) market penetration, product development, market development and
diversification
(D) market identification, product development, positioning and diversification
(E) differentiation, product innovation, market opportunity and diversification

31. Directional Policy Matrix is the same as

(A) the BCG model
(B) the 9-cell GE matrix
(C) the Life cycle portfolio analysis
(D) the PIMS matrix
(E) the 3 X 3 competitive positioning matrix
ht

32. Which of the following market structures would be commonly identified with FMCG
tp

products?
s:

(A) Monopoly
//m

(B) Monopolistic competition

(C) Oligopoly
(D) Perfect competition
as

(E) N one of the above

ho

33. A Product line is a group of products that

or

(A) are closely related

(B) are marketed through the same channel
bo

(C) Perform a similar function for being sold to the same customers
ok

(D) All of the above

s.

34. New entrants to an industry are more likely when.

bl

(A) It is difficult to gain access to distribution channels

(B) Economies of scale in the industry are high
og

(C) Product differentiation in the industry is low

(4) Capital requirement in the industry are high
sp
ot

35. The managerial task of implementing strategy primarily falls upon the shoulders of:
(A) The Chief Executive Officer (CEO)
.c

(B) First line supervisors, who have day-to-day responsibility for seeing that key
om

activities are done properly

(C) All managers, each attending to what needs to be done in their respective areas
/

of authority and responsibility

(D) All of the above

36. The strategy which concentrates around a production market is:

(A) Vertical Integration
(B) Niche
(C) Horizontal Expansion
(D) Diversification

37. ‘Corporation vision’ is the same as

(A) Corporate dream
(B) Corporate mission
(C) Corporate goal
(D) Corporate strategy

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 P-9: Operations Management & Strategic Management - Bit Questions

38. ‘Niche’ is similar to the

(A) Growth strategy
(B) Milking strategy
(C) Flanking strategy
(D) Survival strategy

39. A supplier group is powerful if

(A) It is not concentrated
(B) Offers unique products
(C) Its customers can backward integrate
(D) There are no switching costs

40. A company’s actual strategy is

(A) mostly hidden to outside view and is known only to top-level managers
(B) typically planned well in advance and usually deviates little from the planned set
of actions and business approaches because of the risks of making on-the-spot
ht

changes
(C) partly proactive and partly reactive to changing circumstances
tp

(D) mostly a function of the strategies being used by rival companies(particularly

s:

those companies that are industry leaders)

//m

41. The reason for failure of Strategic Management may be described to

(A) Over-estimation of resource competence
as

(B) Failure to obtain senior management commitment

ho

(C) Failure to obtain employee commitment

(D) All of the above
or

42. Blue Ocean Strategy is concerned with

bo

(A) moving into new market with new products

ok

(B) creating a new market places where there is no competition

(C) developments of products and markets in order to ensure survival
s.

(D) making the product unique in terms of attributes

bl

43. The strategy of the TATA group in India could be viewed as a good example of
og

(A) Conglomerate diversification

sp

(B) Market development

(C) Cost Leadership
ot

(D) Concentric diversification.

.c

44. Risk Management Strategies are

om

(A) Avoid Risk, Reduce Risk, Retain Risk, Combine Risk

(B) Transfer Risk, Share Risk and Hedge Risk
/

(C) Both (A) and (B)

(D) None of the above.

45. The best test of a successful strategy implementation is

(A) Whether the structure is well matched to strategy
(B) Whether the strategies and procedures are observed in a strategy supportive
fashion
(C) Whether actual organizational performance matches or exceeds the targets spelt
out in the strategic plan
(D) Whether it is made after the strategy is formulated, so that it is supportive to the
strategy

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 P-9: Operations Management & Strategic Management - Bit Questions

46. Which one of the following does NOT seem to be an advantage of the strategic
management?
(A) Discharges board responsibility
(B) Provides a framework for decision-making
(C) Forces an objective assessment
(D) It can be expensive

47. Which of the following analyses 'products and businesses by market share and
market growth'?
(A) SWOT Analysis
(B) BCG Matrix
(C) PEST Analysis
(D) Portfolio Analysis

48. Which one of the following is NOT part of the McKinsey's 7-S framework?
(A) Skills
ht

(B) Staff
(C) Systems
tp

(D) Supervision
s:
//m

49. Which one of the following statement is NOT correct?

(A) Vision is the statement of the future.
(B) The corporate mission is the purpose or reason for its existence.
as

(C) Targets are formed from vision and mission statement of organizations.
ho

(D) Goals are objectives that are scheduled for attainment during planned period.
or

50. Which of the following can NOT be the called as a strength of an organization?
(A) Good Industrial relations
bo

(B) Incentives from State Government

ok

(C) Financially very sound

(D) Raw materials source at a distance
s.
bl

51. Strategic Business Unit (SBU) structure does NOT experience one of the following as an
advantage:
og

(A) Higher career development opportunities

sp

(B) Better control of categories of products manufacturing, marketing and distributions

(C) High cost approach
ot

(D) Help in expanding in different related and unrelated businesses

.c

52. The existence of price-wars in the airline industry in India indicates that
om

(A) customers are relatively weak because of the high switching costs created by
frequent flyer programmes.
/

(B) the industry is moving towards differentiation of services.

(C) the competitive rivalry in the industry is severe.
(D) the economic segment of the external environment has shifted, but the airline
strategies have not changed.

53. Business Process Re-engineering is

(A) eliminating loss-making process.
(B) redesigning operational processes.
(C) redesigning the product and services.
(D) recruiting the process engineers.

54. Which one or more of the following are appropriate as a judicious mix for a Product
line, which is a group of products?
(A) That are closely related.

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 P-9: Operations Management & Strategic Management - Bit Questions

(B) That are marketed through the same channel.

(C) That perform a similar function for being sold to the same customers.
(D) All of the above

55. The Product Market matrix comprising of Strategies of Market Penetration, Market
Development, Product Development, and Diversification was first formulated by
(A) Ansoff
(B) Drucker
(C) Porter
(D) Prahlad

56. Price fixation for the first time takes place when
(A) a company develops or acquires a new product.
(B) introducing existing product into a new geographic area or a new distribution
channel.
(C) a service, the company bids for a new contract work.
ht

(D) All of the above

tp

57. Intensity of competition is in low return industries.

s:

(A) low
//m

(B) non-existent
(C) high
(D) not important
as
ho

58. Which of the following statements can be closely related with the Mission?
(A) It includes definition of products & services the organization provides.
or

(B) It specifies management policies towards customers and societies.

(C) It provides a roadmap to company’s future.
bo

(D) It indicates the kind that company management is trying to create for future.
ok

59. Portfolio Analysis is a term used

s.

(A) to identify what strategy is needed to maintain a strong position or improve a

bl

weak one.
(B) to find out a best alternative out of various alternatives available.
og

(C) to analyse products and business by market share and market growth.
(D) to make managers more adaptable to unforeseen changes.
sp
ot

60. Which one of the following is NOT a role of Marketing?

(A) It helps in sustaining and improving the existing levels of employment.
.c

(B) It helps in the economic growth of a country.

om

(C) It helps in the discovery of entrepreneurial talent.

(D) It diminishes potential aggregate demand and thus reduces the size of the market
/

61. Which one of the following in NOT the benefit of a Vision?

(A) It helps in the creation of common identity and a shared sense of purpose.
(B) It fosters risk taking and experimentation.
(C) It fosters short-term thinking.
(D) It represents integrity.

62. The competitive position of a company’s SBU or product line can NOT be classified as
one of the following:
(A) Dominant
(B) Strong
(C) Favourable
(D) Volatile

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 P-9: Operations Management & Strategic Management - Bit Questions

Answer Key:

(1) (b) the search for industries best practices that lead to superior performance
(2) (a) gain buyer loyalty to its brands
(3) (c) fundamental re-thinking and radical redesign of business process to achieve
dramatic results
(4) (d) deeper level of basic assumptions and beliefs that are shared by the members of
the firm
(5) (c) responding to anticipating customers and market demands
(6) (d) A course of action or choice of alternatives, specifying the resources required to
achieve certain stated objectives
(7) (b) That enable managers to have better control over the resources
(8) (b) Price leadership
(9) (a) Yields low current income but has bright growth prospects
(10) (a) Vision is before the mission
(11) (b) Growth
ht

(12) (b) relative market share and market/industry growth rate

(13) (a) Conglomerate diversification
tp

(14) (c) Core competency

s:

(15) (c) High share, low growth and large positive cash flow
//m

(16) (c) Backwards vertical integration

(17) (b) is a method of obtaining a systematic refined consensus from a group of experts
(18) (b) To design the course of strategic options and appointment of top management
as

(19) (d) Structure, Strategy, Staff, Skills, Systems, Shared values, Style
ho

(20) (b) Mission statements

(21) (c) purchase of a value-creating activity from an external supplier
or

(22) (b) Strategic asset

(23) (b) Mission, goals, corporate appraisal, position audit and gap analysis
bo

(24) (a) They are one and the same

ok

(25) (b)It approves issues like R&D, foreign collaborations, linkages with financial institutions
(26) (d) For those companies who are strong in the market but not leaders and might
s.

capture a market share from the leader

bl

(27) (e) achieve its mission

(28) (e) all of the above
og

(29) (c) high

(30) (d) market identification, product development, positioning and diversification
sp

(31) (b) the 9-cell GE matrix

ot

(32) (b) Monopolistic competition

(33) (d) All of the above
.c

(34) (c) Product differentiation in the industry is low

om

(35) (c) All managers, each attending to what needs to be done in their respective areas
of authority and responsibility
/

(36) (b) Niche

(37) (a) Corporate dream
(38) (c) Flanking strategy
(39) (b) Offers unique products
(40) (c) partly proactive and partly reactive to changing circumstances
(41) (d) All of the above
(42) (b) creating a new market places where there is no competition
(43) (a) Conglomerate diversification
(44) (c) Both (A) and (B)
(45) (c) Whether actual organizational performance matches or exceeds the targets spelt
out in the strategic plan
(46) (d) It can be expensive
(47) (b) BCG Matrix
(48) (d) Supervision

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 P-9: Operations Management & Strategic Management - Bit Questions

(49) (c) Targets are formed from vision and mission statement of organizations
(50) (d) Raw materials source at a distance
(51) (c) High cost approach
(52) (c) the competitive rivalry in the industry is severe
(53) (b) redesigning operational processes
(54) (d) All of the above
(55) (a) Ansoff
(56) (d) All of the above
(57) (c) high
(58) (a) It includes definition of products & services the organization provides
(59) (a) to identify what strategy is needed to maintain a strong position or improve a
weak one
(60) (d) It diminishes potential aggregate demand and thus reduces the size of the market
(61) (c) It fosters short-term thinking
(62) (d) Volatile
ht
tp
s:
//m
as
ho
or
bo
ok
s.
bl
og
sp
ot
.c
om
/

The Institute of Cost Accountants of India 38