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Strategic Management

Chapter 1: Introduction to Strategic Management

1. Strategy is a game plan used-

a. To take market position
b. To attract and satisfy customers
c. To respond to dynamic and hostile environment
d. All of the above

2. Which of the following is correct?

a. Strategy is always pragmatic and not flexible
b. Strategy is not always perfect, flawless and optimal
c. Strategy is always perfect, flawless and optimal
d. Strategy is always flexible but not pragmatic

3. Strategy is-
a. Proactive in action c. A blend of proactive and reactive actions
b. Reactive in action d. None of the above

4. Reactive strategy can also be termed as-

a. Planned strategy c. Sound strategy
b. Adaptive strategy d. Dynamic strategy

5. Formulation of strategies and their implementation in a strategic management process is undertaken by-
a. Top level executives c. Lower level executives
b. Middle level executives d. All of the above

6. Which of the following are responsible for formulating and developing realistic and attainable strategies?
a. Corporate level and business level managers
b. Corporate level and functional level managers
c. Functional managers and business level managers
d. Corporate level managers, business level managers and functional level managers

7. Which of the following managers’ role is to translate the general statements/ strategies into concrete
strategies of their individual businesses-
a. Supervisor c. CEO of the company
b. Functional Manager d. All of the above

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8. Strategic management can be effectively used by NGOs to-

a. Use resource effectively c. Achieve goals
b. Raise funds d. All the above

9. Strategic management enables an organization to _________, instead of companies just responding to

threats in their business environment.
a. Be proactive c. Avoid the threats
b. Determine when the threat will subside d. Defeat their competitors

10. Read the following three statements:

i) Strategies have short-range implications.
ii) Strategies are action oriented.
iii) Strategies are rigidly defined.
From the combinations given below select an alternative that represent statements that are true:
a. (i) and (ii) b. and (iii) c. and (iii) d. (i), (ii) and (iii)

11. What involves formulating, implementing and evaluating cross-functional decisions that enable an
organization to achieve its objectives?
a. Strategy formulation c. Strategy implementation
b. Strategy evaluation d. Strategic management

12. Strategic management allows an organization to be more

a. Authoritative b. Participative c. Commanding d. Proactive

13. The origin of business policy can be traced back to _________, when Harvard Business School
introduced an integrative course in management.
a. 1911 b. 1921 c. 1931 d. 1941

14. Strategy’ as a long range blueprint of an organization’s _________.

a. Intent b. Mission c. Vision d. Goal

15. _________ integration strategies that some hospitals are pursuing.

a. Horizontal b. Forward c. Vertical d. Backward

16. The whole strategic landscape of healthcare is changing because of the_________.

a. Internet b. Transport c. Finance d. Technology

17. _________ recently began offering a new secure medical service.

a. Dell b. Google c. Intel d. HP

18. Strategy is _________for sound, alert and responsible management.

a. Substitute b. Not a substitute c. Alternative d. None of the above

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19. The overall objectives of strategic management are _________ fold.

a. Two b. Four c. Three d. One

20. Strategic management serves as a corporate _________against mistakes and pitfalls.

a. Defence mechanism c. Substitute
b. Attack mechanism d. None of the above

21. Strategic management helps the organisation to develop _________and _________.

a. Core competencies; Competitive advantage c. Defence mechanism; emergency action plan
b. Vision; Mission d. All of the above

22. A typical large organization is a _________ organisation.

a. Functional divisional c. Centralised
b. Multi divisional d. Uni- divisional

23. A strategic business unit is a _________ division.

a. Dependent b. Self- Conatined c. Functional d. None of the above

24.Strategic management seeks to prepare the organisation to face the future and act as _________to
various business opportunities.
a. Direction b. Guide book c. Pathfinder d. Planning

25. There are _________ main levels of management.

a. Two b. Four c. Three d. One

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Chapter 2: Dynamics of Competitive Strategies

1. The process of strategic management can be made effective by building-

a. Product advantage c. Competitive advantage
b. Market advantage d. Price advantage

2. Competitive landscape requires the application of-

a. Competitive advantage c. Competitive acumen
b. Competitive strategy d. Competitive intelligence

3. ‘Strategic group mapping’ helps in-

a. Identifying the strongest rival companies
b. Identifying weakest rival companies
c. Identifying weakest and strongest rival companies
d. None of the above

4. ‘Attractiveness of firms’ while conducting industry analysis should be seen in-

a. Relative terms c. Comparative terms
b. Absolute terms d. All of the above

5. “Competitor’s Differentiation’, Customer Value’ and ‘Application of Competitiveness’ are the three
important areas of:
a. Value Chain Analysis c. Competitor Analysis
b. Business Process Re-engineering d. Core Competencies

6. A tool by which management identifies and evaluates the various businesses that make up a company is
termed as:
a. Value Chain Analysis c. Competition Analysis
b. Portfolio Analysis d. Strategic Analysis

7. ‘Build,’ ‘Hold,’ ‘Harvest,’ and ‘Divest’ are the strategies explained by:
a. Boston Consulting Group Growth Share Matrix
b. Value chain Analysis
c. Managerial Grid Matrix
d. Ansoff’s Product Matrix Growth Matrix

8. The low growth, low share businesses in BCG matrix are:

a. Cows b. Dogs c. Cats d. Question Marks

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9. An advertisement says, ‘Have Roohafza with milk and lassi too’. Which strategy is the company trying to
use:
a. Market Development c. Market Penetration
b. Product Development d. All of the above

10. KSFs stand for:

a. Key strategic factors c. Key success factors
b. Key supervisory factors d. Key sufficient factors

11. Competitive landscape requires the application of-

a. Competitive advantage c. Competitive acumen
b. Competitive strategy d. Competitive intelligence

12. The goal of SWOT analysis is to __________ the organization's opportunities and strengths while
__________ its threats and __________ its weaknesses.
a. Avoid; Neutralizing; Correcting c. Avoid; Capitalizing; Neutralizing
b. Exploit; Neutralizing; Correcting d. Exploit; Avoiding; Ignoring

13. SWOT analysis is an evaluation of the organization's __________ strengths and weaknesses and its
__________ opportunities and threats.
a. External; Internal c. External; External
b. Internal; Internal d. Internal; External

14. External opportunities and threats are usually:

a. the minor cause of organizational demise or success
b. least important for CEOs and the board of directors
c. not as important as internal strengths and weaknesses
d. largely uncontrollable activities outside the organization

15. The sustainability of competitive advantage and a firm’s ability to earn profits from its competitive
advantage depends upon:
a. Durability, reliability, transferability, approximately
b. Appropriability, durability, transferability, imitability
c. Transferability, imitability, reliability, approximately
d. Imitability, durability, reliability, appropriability

16. Internal __________ are activities in an organization that are performed especially well.
a. Opportunities b. Competencies c. Strengths d. Management

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17. Anything that a firm does especially well compared to rival firms is referred to as __________.
a. Competitive advantage c. Opportunity cost
b. Comparative advantage d. Sustainable advantage

18. In long run, when the growth rate slows down stars become
a. Cash Cows b. Tortoise c. Dogs d. Question Marks

19. The emphasis on product design is very high, the intensity of competition is low, and the market growth
rate is low in the __________ stage of the industry life cycle.
a. Maturity b. Introduction c. Growth d. Decline

20. GE Nine-cell Matrix is based on

a. Market attractiveness and business strength
b. Market growth rate and business strength
c. Market attractiveness and relative market share
d. Market growth rate and relative market share

21. The __________is highly dynamic and continuously evolving.

a. Business environment c. Culture of the organisation
b. Mind set of employees d. None of the above

22. __________ and __________ are highly relevant and important for all the managers in organisations
in order to achieve competitive advantage, high performance for success and to ensure company's survival
and growth.
a. Strategic thinking and strategic management
b. Internal and external Environment
c. Core competition and competitive advantage
d. All of the above

23. The external environment affects the __________.

a. Culture of the firm c. Objective of the firm
b. Internal environment of the firm. d. Employees of the firm

24.The __________ components of the external environment are considered as major factors leading to
__________ for the organization and also creating threats.
a. Plan and policies, challenges c. Economic and technical, new opportunities
b. Plan and objectives, business environment d. Leader and challenger, Follower

25. The objective of a competitive strategy is to generate competitive advantage.

a. Core competition c. Customers response
b. Corporate strategy d. Competitive advantage

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26.Having a competitive advantage is necessary for a firm to __________.

a. Compete in the market c. Prosper in the market
b. Survive in the market d. Efficient in the market

27. Competitive advantage comes from a firm's ability to perform activities more __________.
a. Efficiently than its rivals. c. Technically than its rivals.
b. Collectively than its rivals. d. Effectively than its rivals.

28.By knowing if it is a leader, challenger, or follower, it can adopt appropriate __________.

a. Collective strategy. c. Consider strategy.
b. Competitive strategy. d. Perfect strategy.

29.Competitive landscape is a business analysis which identifies competitors __________.

a. Either direct or indecent. c. Either indirect or direct.
b. Either direct or different. d. Either direct or indirect.

30. Understanding of competitive landscape requires an application of "competitive intelligence".

a. "Collective intelligence". c. "Common intelligence".
b. "Competitive intelligence". d. "Collusive intelligence".

31. An __________ of a firm's competition allows it to assess the competitor's strengths and weaknesses in
the marketplace and helps it to choose and implement effective strategies that will improve its competitive
advantage.
a. In-depth investigation and analysis c. Hollow investigation and analysis
b. Shallow investigation and analysis d. Shallow investigation and analysis

32. Strategy formulation is a task in which managers can get by with intuition, opinions, instincts, and
creative thinking.
a. Right c. Absolutely Wrong
b. Wrong d. Absolutely right and Correct

33. Judgments about what strategies to pursue need to flow directly from __________ of a firm's external
environment and its internal resources and capabilities.
a. Adjustment b. Allocation c. Analysis d. Assumption

34. Accurate __________ of the company's situation is necessary for managerial preparation for deciding
on a sound long-term direction, setting appropriate objectives, and crafting a winning strategy.
a. Dialogue b. Diagnosis c. Dialysis d. Distinguish

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35. There are different forces that drive and constrain strategy and that must be __________ in any
strategic decision.
a. Buttered b. Benefited c. Balanced d. Adjusted

36. An important aspect of strategic analyses is to consider the possible implications of __________.
a. Routine decisions. c. Non-Strategic decisions.
b. Strategic decisions. d. Non routine decisions.

37. Strategy of a firm, at a particular point of time, is result of a series of __________ taken over an
extended period of time.
a. Smell decisions b. Smile decisions c. Smart decisions d. Small decisions

38.External risk is on account of __________ between strategies and the __________ in the
environment.
a. Inconsistencies, forces c. Forces, Consistencies
b. Consistencies, forces d. None of the above

39. Industry and competitive conditions change because forces are in motion that creates incentives or
pressures for changes.
a. Driving forces b. Drive in forces c. Trigger forces d. Well Driving forces

40. All industries are characterized by trends and new developments that gradually produce changes
important enough to require a strategic response from participating firms.
a. Tingles of Change c. Test of change
b. Terminology for change d. Triggers of Change

41. One technique for revealing the competitive positions of industry participants is __________.
a. Strategic group tapping c. Strategic group tracking
b. Strategic group mapping d. Strategic group clapping

42.Rival firms which have similar competitive approaches and positions in the market is known
as__________.
a. Straight group b. Strike group c. Group Strike d. Strategic Group

43. __________ by their very nature are so important that all firms in the industry must pay close attention
to them.
a. KCFs b. KSFs c. KFCs d. KSFCs

44.Attractiveness is __________, not absolute.

a. Real b. Non relative c. Relative d. Superlative

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45. Core competencies are capabilities that serve as a source of __________ for a firm over its rivals.
a. Competitive advantage c. Core Competitive advantage
b. Consumption advantage d. None of the above

46.Core competency as the __________ in the organization, especially coordinating diverse production
skills and integrating multiple streams of technologies.
a. Learning b. Planning c. Collective leaving d. Collective learning

47. Core competencies can be built on one capability or single technological know-how, instead, it has to be
the integration of many resources. Correct or incorrect
a. Incorrect b. Correct c. No idea d. None of the above

48. Core competence must be applicable to the whole organization; it cannot be only one particular skill or
specified area of expertise. Correct or incorrect
a. Correct b. Incorrect c. Semi Correct d. None of the above

49.__________ are the activities concerned with receiving, storing and distributing the inputs to the
product/service.
a. Outbound logistics b. Procurement c. Purchase d. Inbound logistics

50.__________ collect, store and distribute the product to customers. For tangible products this would be
warehousing, materials handling, transport, etc.
a. Inbound logistics b. Logistic Inground c. Operations d. Outbound logistics

51. _____________are all those activities, which enhance or maintain the value of a product/ service, such
as installation, repair, training and spares.
a. Sound service b. Service Sound c. Service d. Self service

52. __________ refers to the processes for acquiring the various resource inputs to the primary activities
(not to the resources themselves).
a. Purchase b. Support Activities c. Procurement d. VCA

53. The period over which a competitive advantage is sustained depends in part on the rate at which a firm's
resources and capabilities deteriorate. This is known as __________.
a. Durability b. Suitability c. Profitability d. Sustainability

54. The concept of value creation was introduced primarily for providing products and services to the
customers __________.
a. with more worth b. with more profit c. with more work d. with more prosperity

55. Competitive advantage leads to superior profitability.

a. True b. False c. Don’t Know d. None of the above

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56. A unit of the company that has a separate mission and objectives and which can be run independently
from other company businesses. This known
a. BABU b. SABU c. SBU d. UBS

57. The __________ can be a company division, a product line within a division, or even a single product
or brand.
a. Small business unit c. Successful business unit
b. Smart business unit d. Strategic business unit

58. SBUs are common in organisations that are located in __________with independent manufacturing
and marketing setups.
a. TNCs b. MNCs c. Multiple countries d. None of the above

59. The experience curve concept is akin to a learning curve which explains the efficiency increase gained by
workers through repetitive nonproductive work. Correct or Incorrect
a. Correctly b. Incorrectly correct c. Incorrect d. None of the above

60. Experience curve is based on the commonly observed phenomenon that __________ decline as a firm
accumulates experience in terms of a cumulative volume of production.
a. Total costs b. Unit costs c. Profit per unit d. Production cost

61. PLC is an S-shaped curve which exhibits the relationship of __________.

a. Cost with respect of time c. Only time
b. Production with respect of time d. sales with respect of time

62.The first stage of PLC is the __________ in which competition is almost negligible, prices are relatively
high and markets are limited.
a. Introduction stage b. Growth stage c. Maturity stage d. Declining stage

63. The second phase of PLC is__________. In the growth stage, the demand expands rapidly, prices fall,
competition increases and market expands.
a. Introduction stage b. Growth stage c. Maturity stage d. Declining stage

64.The third phase of PLC is __________. In this stage, the competition gets tough and market gets
stablised. Profit comes down because of stiff competition. At this stage, organisations have to work for
maintaining stability.
a. Introduction stage b. Growth stage c. Maturity stage d. Declining stage
65. In the __________ of PLC, the sales and profits fall down sharply due to some new product replaces
the existing product. So a combination of strategies canbe implemented to stay in the market either by
diversification or retrenchment.
a. Introduction stage b. Growth stage c. Maturity stage d. Declining stage

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66.In BCG the vertical axis represents __________ rate and provides a measure of market attractiveness.
a. Growth Market b. Market growth c. Market shine d. Market share

67. The horizontal axis represents relative market share and serves as a measure of company strength in the
market.
a. Growth Market b. Market growth c. Market shine d. Market share

68. These are the products or SBUs that are growing rapidly. They also need heavy investment to maintain
their position and finance their rapid growth potential. They represent best opportunities for expansion.
a. Star b. Cash Cow c. Dogs d. Question Mark

69.These are the low-growth, high market share businesses or products. They generate cash and have low
costs. They are established, successful, and need less investment to maintain their market share.
a. Star b. Cash Cow c. Dogs d. Question Mark

70. These are the sometimes called problem children or wildcats, are low market share business in high-
growth markets.
a. Star b. Cash Cow c. Dogs d. Question Mark

71. These should be minimised by means of divestment or liquidation.

a. Star b. Cash Cow c. Dogs d. Question Mark

72. Here the objective is to increase market share, even by forgoing short¬ term earnings in favour of building
a strong future with large market share.
a. Build b. Hold c. Harvest d. Divest

73. Here the objective is to preserve market share.

a. Build b. Hold c. Harvest d. Divest

74. Here the objective is to increase short-term cash flow regardless of long-term effect.
a. Build b. Hold c. Harvest d. Divest

75. Here the objective is to sell or liquidate the business because resources can be better used elsewhere.
a. Build b. Hold c. Harvest d. Divest

76. It is achieved by making more sales to present customers without changing products in any major way.
a. Market Penetration c. Product Development
b. Market Development d. Diversification

77. __________ is also done by effort on increasing usage by existing customers.

a. Market Penetration c. Product Development
b. Market Development d. Diversification

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78. __________ might require greater spending on advertising or personal selling.

a. Market Penetration c. Product Development
b. Market Development d. Diversification

79. __________refers to a growth strategy where the business seeks to sell its existing products into new
markets.
a. Market Penetration c. Product Development
b. Market Development d. Diversification

80. It refers to a growth strategy where business aims to introduce new products into existing markets.
a. Market Penetration c. Product Development
b. Market Development d. Diversification

81. It is a strategy for company growth by offering modified or new products to current markets.
a. Market Penetration c. Product Development
b. Market Development d. Diversification

82.It refers to a growth strategy where a business markets new products in new markets.
a. Market Penetration c. Product Development
b. Market Development d. Diversification

83.It is a strategy by starting up or acquiring businesses outside the company's current products and markets.
a. Market Penetration c. Product Development
b. Market Development d. Diversification

84. This strategy is risky because it does not rely on either the company's successful product or its position
in established markets.
a. Market Penetration c. Product Development
b. Market Development d. Diversification

85. The ADL matrix (derived its name from Arthur D. Little) is a portfolio analysis technique that is based on
__________.
a. Product life cycle b. BSG c. ANSOFF d. GE Matrix

86. Competitive position is a measure of business strengths that helps in categorization of products or SBU's
into one of five competitive positions: dominant, strong, favourable, tenable and weak.
a. ADL b. ANSOFF c. BCG d. SWOT

87. This is a comparatively rare position and in many cases is attributable either to a monopoly or a strong
and protected technological leadership.
a. Dominant b. Strong c. Favourable d. Tenable

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88. By virtue of this position, the firm has a considerable degree of freedom over its choice of strategies and
is often able to act without its market position being unduly threatened by its competitions.
a. Dominant b. Strong c. Favourable d. Tenable

89. This position, which generally comes about when the industry is fragmented and no one competitor
stand out clearly, results in the market leaders a reasonable degree of freedom.
a. Dominant b. Strong c. Favourable d. Tenable e. Weak

90. Although the firms within this category are able to perform satisfactorily and can justify staying in the
industry, they are generally vulnerable in the face of increased competition from stronger and more
proactive companies in the market.
a. Dominant b. Strong c. Favourable d. Tenable

91. The performance of firms in this category is generally unsatisfactory although the opportunities for
improvement do exist.
a. Dominant b. Strong c. Favourable d. Weak

92.The strategic planning approach in this model has been inspired from traffic control lights.
a. GE Matrix b. BCG c. TOWS d. SWOT

93. This model uses two factors while taking strategic decisions: Business Strength and Market
Attractiveness.
a. SWOT b. TOWS c. ADL d. GE

94.It is an inherent capability of the organization which it can use to gain strategic advantage over its
competitors.
a. Strength b. Weakness c. Opportunity d. Threat

95. It is an inherent limitation or constraint of the organization which creates strategic disadvantage to it.
a. Strength b. Weakness c. Opportunity d. Threat

96.It is a favourable condition in the organisation's environment which enables it to strengthen its position.
a. Strength b. Weakness c. Opportunity d. Threat

97. It is an unfavourable condition in the organisation's environment which causes a risk for, or damage to,
the organisation's position.
a. Strength b. Weakness c. Opportunity d. Threat

98. Heinz Weihrich developed a matrix called __________ matrix by matching strengths and weaknesses
of an organization with the external opportunities and threats.
a. WOTS b. OTWS c. TOWS d. SWOT

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99.SO is a position that any firm would like to achieve. The strengths can be used to capitalize or build upon
existing or emerging opportunities.
a. SO(Maxi-Maxi) b. ST(Maxi-Mini) c. WO(Mini-Maxi) d. WT(Mini-Mini)

100. It is a position in which a firm strives to minimize existing or emerging threats through its strengths.
a. SO(Maxi-Maxi) b. ST(Maxi-Mini) c. WO(Mini-Maxi) d. WT(Mini-Mini)

101. The firm needs to overcome internal weaknesses and make attempts to exploit opportunities to
maximum.
a. SO(Maxi-Maxi) b. ST(Maxi-Mini) c. WO(Mini-Maxi) d. WT(Mini-Mini)

102. It is a position that any firm will try to avoid. A firm facing external threats and internal weaknesses
may have to struggle for its survival. WT strategy is a strategy which is pursued to minimize or overcome
weaknesses and as far as possible, cope with existing or emerging threats.
a. SO(Maxi-Maxi) b. ST(Maxi-Mini) c. WO(Mini-Maxi) d. WT(Mini-Mini)

103. It is of multiple units (located in different parts of the globe) but all linked by common ownership.
Multiple units draw on a common pool of resources, such as money, credit, information, patents, trade
names and control systems. These are the features of
a. Conglomerate b. MNC c. TNC d. SNC

104. SNC It operates as a private business without direct obligations.

a. True b. False c. Don’t know d. None of the above

105. Multinational companies own a home company and its subsidiaries.

a. True b. False c. Don’t know d. None of the above

106. Transnational companies do not have subsidiaries but just many companies.
a. False b. False c. Don’t know d. None of the above

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Chapter 3: Strategic Management Process

1. The first step in strategic planning is generally:

a. Developing a vision statement c. Developing a mission statement
b. Establishing goals and objectives d. Determining opportunities and threats

2. The strategic-management process:

a. Occurs once a year. c. Is a continuous process.
b. Is a sequential process. d. Applies mostly to small businesses

3. In which phase of strategic management are annual objectives especially important?

a. Formulation b. Control c. Evaluation d. Implementation

4. Which statement should be created first and foremost?

a. Strategic b. Vision c. Objectives d. Mission

5. Specific results an organization seeks to achieve in pursuing its basic mission are:
a. Strategies b. Rules c. Objectives d. Policies

6. Which one is not the element of strategic intent?

a. Business model c. Business definition
b. Vision d. Business standard

7. During what stage of strategic management are a firm’s specific internal strengths and weaknesses
determined?
a. Formulation b. Implementation c. Evaluation d. Feedback

8. Which of these basic questions should a vision statement answer?

a. What is business of firm’s? c. Where we are to go?
b. Who are competitors? d. What are organizational capabilities?

9. What are the means by which long term objectives will be achieved?
a. Policies b. Opportunities c. Vision d. Strategies

10. What is the first step in the comprehensive strategic-management model?

a. Developing vision and mission statements c. Measuring and evaluating performance
b. Performing external audits d. Establishing long-term objectives

11. Developing vision and mission, identifying an organization’s external opportunities and threats, and
determining internal strengths and weaknesses are:
a. SBU Planning c. Strategy Implementation
b. Strategy Formulation d. Business Process Reengineering

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12. Which statement should be created first and foremost?

a. Strategy b. Vision c. Objectives d. Mission

13. __________ means deciding what needs to done in the future.

a. Planning b. Organising c. Directing d. Staffing

14. __________ is a managerial process of selecting the best course of action out of several alternative
courses for the purpose of accomplishment of the organizational goals.
a. Strategy making b. Decision making c. Execution d. Group discussion

15. __________ is defined as a dynamic process of formulation, implementation, evaluation, and control
of strategies to realise the organization’s strategic intent.
a. Strategic Management c. Strategic foundation
b. Strategic decision d. Strategic process

16. Who defines following definition “Strategic decisions encompass the definition of the business, products
to be handled, markets to be served, functions to be performed and major policies needed for the
organisation to execute these decisions to achieve the strategic objectives”.
a. Jauch and Glueck b. Michel Vaz c. Adi Godrej d. C. k. Prahalad

17. Following is the vision statement of which organisation. “To be the most admired and responsible
Integrated Power Company with international footprint, delivering sustainable value to all stakeholder.”
a. Tata Power b. Reliance Energy c. Adani Energy d. None of the above

18. A __________ is an answer to basic question ‘what business are we in and what we do.’
a. Mission b. Vision c. Goals d. Objectives

19. __________ statement should reflect the philosophy of the organizations that is perceived by the senior
managers.
a. Vision c. Organisation goal statement
b. Mission d. None of the above

20. __________ act as “a statement which defines the role that an organizations plays in the society.”
a. Vision b. Mission c. Philosophy d. None of the above

21. __________ environment of a firm consists of economic, social, technological, market and other forces
which affect its functioning.
a. External b. Internal c. Both a & b d. None of the above

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22. __________ provides the framework within which the firm would adopt a predetermined direction and
would operate to achieve strategic objectives.
a. Strategic management c. Strategic mission
b. Strategic Intent d. Strategic vision

23. Select the major dimensions of strategic decisions from following:

a. Requires top level management involvement
b. Future oriented
c. Significant impact on long term prosperity
d. All of the above

24.__________ are open ended attributes that denote the future state or outcomes.
a. Goals b. Objectives c. Mission d. Vision

25. __________ are close-ended attributes which are precise and expressed in specific terms.
a. Goals b. Objectives c. Mission d. None of the Above

26.Organisation need to set __________ objectives.

a. Long term b. Short term c. Both a & b d. None of the above

27. __________ is/are the type(s) of environmental and organisational analysis.

a. Environment scanning c. Both A & C
b. Organisational analysis d. Operational Analysis

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Chapter 4: Corporate Level Strategies

1. Acquisition of IT company by a steel manufacturer is

a. Business level strategy? c. Business decision?
b. Corporate Strategy? d. Functional diversification

2. Which strategy is implemented after the failure of turnaround strategy?

a. Expansion strategy c. Divestment strategy
b. Diversification strategy d. Growth strategy

3. Retrenchment strategy in the organization can be explained as

a. Reducing trenches (gaps) created between individuals.
b. Divesting a major product line or market.
c. Removal of employees from job through the process of reorganization.
d. Removal of employees from job in one business to relocate them in other business.

4. Select the correct statement:

a. In general, corporate level decisions are costly to take, involve high risk and have large profit
potential.
b. In general, corporate level decisions are costly to take, involve low risk and have large profit
potential.
c. In general, corporate level decisions are costly to take, involve high risk and have low profit
potential.
d. In genera,l corporate level decisions are cheaper to take, involve low risk and have large profit
potential.

5. An organisation diversifies in backward sequence in the product chain and enters specific
product/process to be used in existing products. It is:
a. Forward diversification. c. Horizontal diversification.
b. Vertical diversification. d. Reactive diversification.

6. Corporate strategy includes:

i) expansion and growth, diversification, takeovers and mergers
ii) Vertical and horizontal integration, new investment and divestment areas
iii) determination of the business lines
From the combinations given below select a correct alternative:
a. (i), and (ii) b. (i) and (iii) c. (ii) and (iii) d. (i) (ii) and (iii)

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7. Vertical integration may be beneficial when

a. Lower transaction costs and improved coordination are vital and achievable through vertical
integration.
b. Flexibility is reduced, providing a more stationary position in the competitive environment.
c. Various segregated specializations will be combined.
d. The minimum efficient scales of two corporations are different.

8. Stability strategy is a __________ strategy.

a. SBU level b. Corporate level c. Business level d. Functional level

9. Conglomerate diversification is another name for which of the following?

a. Related diversification c. Portfolio diversification
b. Unrelated diversification d. Acquisition diversification

10. When to organisations combine to increase their strength and financial gains along with reducing
competition is called __________.
a. Hostile takeover b. Liquidation c. Merger d. Acquisition

11. Diversification primarily helps to:

a. Reduce competition b. Reduce risk c. Reduce taxes d. Reduce costs

12. The reasons for acquisition are

a. Increased market power c. Seizing growth opportunities
b. Increased diversification d. All of the these

13. If suppliers are unreliable or too costly, which of these strategies may be appropriate?
a. Horizontal integration c. Market penetration
b. Backward integration d. Forward integration

14. In the introduction phase, which strategy is used by a company.

a. Market Development c. Stability
b. Market penetration d. Turnaround

15. Which strategy is focused on operational efficiency:

a. Growth b. Stability c. Retrenchment d. Liquidation

16. Stability strategy is a “DO nothing “Strategy, this statement is:

a. True b. False c. Hypothetical d. None of the Above

17. On The Maturity Stage, which strategy should be used:

a. Expansion b. Divestment c. Stability d. Combination

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18. Stability Strategy Consists of:

a. Same product, Different market c. Different product, Different Market
b. Same business, Same product d. None of Above

19. Status-Quo Oriented Strategy is:

a. Stability b. Expansion c. Retrenchment d. None

20. Stability Strategy requires:

a. More Investments c. Moderate Investments
b. Less investments d. Inadequate Investments

21. “Redefinition of business” is involved in:

a. Stability Strategy c. Turnaround Strategy
b. Expansion Strategy d. All of Above

22. Intensification & Diversification are routes of:

a. Expansion b. Stability c. Retrenchment d. None

23. When A New Business is initiated which has no affinity with its existing business, is Called:
a. Horizontal Diversification c. Concentric Diversification
b. Vertical Diversification d. Conglomerate Diversification

24.Market Penetration is about:

a. Existing Product, Existing Market c. New Product, Existing Market
b. New Product, New Market d. Existing Product, New Market

25. Market Development Means:

a. Exploring New Product c. Exploring new market
b. Modification in old product d. Modification in Existing Market

26.Product Development Means:

a. New Market c. New Market, New Product
b. New Product d. None

27. Diversification Means:

a. Existing Product b. New Product c. New Market d. A & C

28.A Step towards creation of effective supply of inputs is called.

a. Horizontal Integration c. Backward Vertical Integration
b. Vertical Integration d. Forward Vertical Integration

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29.A Step towards the value chain analysis or distribution channels is called:
a. Forward vertical integration c. Conglomerate Diversification
b. Backward vertical integration d. A & B Both

30. Any Acquisition of similar businesses or making any By-Product or Complementary products is called:
a. Vertical Integration c. Conglomerate Diversification
b. Horizontal Integration d. Intensification

31. When the new business is linked to the existing businesses through process. Technology or marketing is
called:
a. Conglomerate-Diversification c. Market Development
b. Concentric-Diversification d. Product Development

32. Which of the following is the instant means of expansion?

a. Intensification c. Acquisition & Merger
b. Diversification d. Joint Venture

33. When Two companies come together to expand their business operations is called.
a. Acquisition b. Turnaround c. Merger d. All

34. When A Strong Company Takes over the other organization is called.
a. Merger c. Co-genetic Intensification
b. Acquisition d. Concentric Diversification

35. Acquisition often happens in the phase of:

a. Boom b. Expansion c. Recession d. Recovery

36. When the two competitive firms are merged, is called:

a. Vertical Merger c. Horizontal Merger
b. Co-Generic Merger d. Conglomerate Merger

37. Merger of two organizations but at different stages of production or distribution system is called:
a. Vertical Merger c. Co-Generic Merger
b. Horizontal Merger d. Conglomerate Merger

38.When two firms are merged in such a way that is unrelated to each other, is called:
a. Vertical Merger c. Co-Generic Merger
b. Horizontal Merger d. Conglomerate Merger

39. When Two or more businesses create a synergy for achieving certain strategic objectives which neither
would be able to achieve on its own, is called.
a. Merger b. Acquisition c. Strategic Alliance d. Political Alliance

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40. Which of the following is the disadvantage of strategic alliance?

a. Barriers on entry b. Reduction in cost c. Sharing d. Economics of Scale

41. When an organization focuses on ways and means to reverse the process of decline is called.
a. Liquidation b. Turnaround c. Divestment d. Retrenchment

42.When the retrenchment is done internally, is called.

a. Liquidation b. Turnaround c. Divestment d. Retrenchment

43. Which of the following is not a danger signal of turnaround strategy?

a. Declining market share c. High Turnover in terms of revenue
b. Negative cash flow d. Mis-Management

44.Divestment Means:
a. Sale of business c. Re-Definition of business
b. Shut down of a portion of business d. All of Above

45. Which is called last resort & the most extreme strategy?
a. Turnaround b. Divestment c. Liquidation d. None

46.“A dead business is worth more than alive,” this statement is known for:
a. Turnaround b. Divestment c. Liquidation d. None

47. A big organization should use:

a. Stability strategy c. Retrenchment
b. Expansion Strategy d. Combination Strategy

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Chapter 5: Registration of Charges

1. What is not one of Michael Porter’s five competitive forces?

a. New entrants c. Bargaining power of unions
b. Rivalry among existing firms d. Bargaining power of suppliers

2. In Michael Porter’s generic strategy __________ emphasizes producing standardized products at a very
low per unit-cost for consumers who are price sensitive.
a. Cheap leadership. c. Cost leadership.
b. Inferior product leadership. d. Cost benefit.

3. Differentiation Strategy can be achieved by following measures:

1) Match products with tastes and preferences of customers.
2) Elevate the performance of the product.
3) Rapid product innovation
4) Which of the above is true:
a. (1) and (2) b. (1) and (3) c. (2) and (3) d. (1), (2) and (3)

4. What are the three different bases given by Michael Porter’s Generic Strategies to gain competitive
advantage?
a. differentiation, integration and compensation
b. integration, focus and differentiation
c. compensation, integration and focus
d. cost leadership, differentiation and focus

5. A firm successfully implementing a differentiation strategy would expect:

a. Customers to be sensitive to price increases.
b. To charge premium prices.
c. Customers to perceive the product as standard.
d. To automatically have high levels of power over suppliers.

6. Competitive rivalry has the most effect on the firm's __________ strategies than the firm's other
strategies.
a. Business level b. Corporate level c. Functional level d. All of these

7. According to Porter, what is usually the most powerful of the five competitive forces?
a. Rivalry among existing firms
b. Potential development of substitute products
c. Bargaining power of buyers and suppliers
d. Potential entry of new competitors
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8. Suppliers can command bargaining power over a firm when

1) The products are crucial to the buyer
2) Large number of substitutes are available.
3) Suppliers erect high switching costs.
4) Suppliers are more concentrated than their buyers.
All above explain the reasons except:
a. (1) b. (2) c. (3) d. (4)

9. Low cost, differentiation and focus are:

a. SBU level strategies c. Business level strategies
b. Corporate level strategies d. Functional level strategies

10. Best-cost provider strategy involves providing customers more value for the money by emphasizing:
a. Low cost and low quality difference. c. High cost and low quality difference.
b. Low cost and better quality difference. d. High cost and better quality difference.

11. A successful __________ strategy usually permeates the entire firm, as evidenced by high efficiency,
low overhead, limited perks, intolerance of waste, intensive screening of budget requests, wide spans of
control, rewards linked to cost containment, and broad employee participation in cost control efforts.
a. Cost leadership b. Differentiation c. Both d. None of the above

12. __________ does not guarantee competitive advantage, especially if standard products sufficiently
meet customer needs or if rapid imitation by competitors is possible.
a. Differentiation b. Similarities c. Managerial skills d. None of the above

13. A __________ strategy requires competing based on price to target a narrow market.
a. Focused cost leadership c. Both
b. Focused differentiation d. None of the above

14. __________ defines “strategy is a pattern in a stream of decision”.

a. Henry Ford b. Henry Mintzberg c. Henry Fayol d. Michael Porter

15. __________ which one is not a barrier to entry.

a. Capital requirement c. Product differentiation
b. Brand identity d. Brand loyalty

16. __________ had given five forces model- competitive analysis.

a. Michael Ford b. Henry Mintzberg c. Henry Fayol d. Michael Porter

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17. Broad target 0f competitive scope and low cost product of competitive advantage reflects __________
strategy.
a. Differentiation c. Focused cost leadership
b. Cost leadership d. Focused differentiation

18. Narrow target 0f competitive scope and low cost product of competitive advantage reflects __________
strategy.
a. Differentiation c. Focused cost leadership
b. Cost leadership d. Focused differentiation

19. Broad target 0f competitive scope and differentiated product of competitive advantage reflects
__________ strategy.
a. Differentiation c. Focused cost leadership
b. Cost leadership d. Focused differentiation

20. Narrow target 0f competitive scope and differentiated product of competitive advantage reflects
__________ strategy.
a. Differentiation c. Focused cost leadership
b. Cost leadership d. Focused differentiation

21. __________ helps to achieve cost leadership strategy.

a. Optimum utilization of resources c. Standardization of product
b. Economies of scale d. All of the above

22. __________ not a basis of differentiation.

a. Product b. Pricing c. Organisation d. Rivalry

23. __________ offers differentiation strategy in organisation.

a. Offers utility to customer c. Enhancing brand value
b. Product innovation d. All of the above

24.__________ strategy involves providing customer more value for the money by emphasizing low cost
and better quality difference.
a. Best – cost provider strategy c. Focused cost leadership
b. Cost leadership d. Focused differentiation

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Chapter 6: Management & Administration

1. A campaign advocating the message of ‘SAVE WATER’ is:

a. Services Marketing c. Social Marketing
b. Holistic marketing d. Direct Marketing

2. The Niche strategy is the best way to enter a:

a. New market c. Matured market
b. Growing market d. None of the above

3. Supply chain refers to the linkages between:

a. Suppliers b. Customers c. Manufacturers d. All the above

4. The process of creating, maintaining, and enhancing strong, value- laden relationships with customers
and other stakeholder is:
a. Social marketing c. Direct marketing
b. Augmented marketing d. Relationship marketing

5. For a new product, an organization may choose:

a. Skimming pricing strategy c. Both (a) and (b)
b. Penetration pricing strategy d. None of these

6. The marketing strategy which is used to reduce or shift the demand is:
a. Enlightened Marketing c. Place Marketing
b. Synchro-Marketing d. Demarketing

7. Read the following statements:

i) Functional-level managers are responsible for the specific business functions.
ii) Functional-level managers take decisions related to human resources, purchasing, product
development, customer service, and so on.
Select the correct alternative:
a. Both (i) and (ii) truly explain features of functional-level manager.
b. Only (i) truly explains features of functional-level manager.
c. Only (ii) truly explains features of functional-level manager.
d. None of (i) and (ii) truly explains features of functional-level manager.

8. Evaluating the worth of a business is determining its-

a. Fixed Assets b. Net worth c. Goodwill d. None of these

9. Which of the following variables are not directly affected by marketing mix?
a. Product b. Place c. Process d. Promotion

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10. Which variable would be considered part of the product element of the marketing mix?
a. Advertising b. Packaging c. Publicity d. Personal Selling

11. Marketing Process is:

a. Analyzing c. Developing marketing opportunities
b. Selecting d. All of Above

12. Marketing mix consists__________:

a. 1 b. 2 c. 3 d. 4

13. 4 Ps are from __________ angle:

a. Customer’s b. Marketer’s c. Both d. None

14. 4 Cs are from __________ angle:

a. Customer’s b. Marketer’s c. Both d. None

15. Product Stands for-:

a. Cost c. Communication
b. Customer’s Solution d. Convenience

16. Price Stands for:

a. Cost c. Communication
b. Customer’s Solution d. Convenience

17. Place Stands for:

a. Cost c. Communication
b. Customer’s Solution d. Convenience

18. Promotion Stands for:

a. Cost c. Communication
b. Customer’s Solution d. Convenience

19. Skimming Price policy stands for:

a. Very high Level b. Very Law Level c. Moderate Level d. Free of Cost

20. Promotion includes:

a. Advertisement b. Personal Selling c. Sales Promotion d. All

21. Face to Face Interaction Means:

a. Advertisement b. Personal Selling c. Sales Promotion d. All

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22. Non-Personal Promotional Method is:

a. Sales Promotion b. Advertisement c. Publicity d. B & C

23. A Method which has no cost content:

a. Sales Promotion b. Advertisement c. Publicity d. B & C

24.Exhibition is an example of:

a. Sales Promotion b. Personal Selling c. Advertisement d. All

25. How many expanded marketing mixes are there:

a. 1 b. 2 c. 3 d. 4

26.People Stands for:

a. Caring b. Co-Ordination c. Communication d. All

27. Process Stands for:

a. Caring b. Co-Ordination c. Communication d. All

28.Physical Evidence Stands for:

a. Co-Ordination d. Communication c. Confirmation d. Caring

29.Marketing which is done for social purpose/Campaign:

a. Augmented Marketing c. Relationship Marketing
b. Social Marketing d. Direct Marketing

30. Tourism marketing is an example of:

a. Synchro – Marketing c. Place-Marketing
b. De-marketing d. Service-Marketing

31. Marketing-Technique is used to reduce the demand for product:

a. Synchro – Marketing c. Place-Marketing
b. De-marketing d. Service-Marketing

32. Sense of Mission marketing is a part of:

a. Place Marketing c. Enlightened Marketing
b. Person Marketing d. All

33. Source of funds means:

a. Net Profits b. Sale of assets c. Debt d. All of Above

34. Budget is:

a. End b. Tool c. Both d. None

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35. Net worth is the sum of:

a. Common Stock c. Retained Earnings
b. Additional paid in Capital d. All

36. Logistics Management is related to:

a. Competitive Management c. Both
b. Customer Satisfaction d. None

37. Supply chain management Consists the process from:

a. Manufacturing to Customers c. Sourcing to End Users
b. Sourcing to Manufacturing d. Retailer to Customers

38.__________ involves delivering the right product at right time to right place and at right price.
a. Logistics Management c. Supply Chain Management
b. Sales Management d. Stock Management

39. Supply Chain Management stresses on __________ manufacturing process:

a. Fixed b. Flexible c. Rigid d. Blank

40. Just in time is a Feature of:

a. Logistics Management c. Supply Chain Management
b. Sales Management d. Stock Management

41. Physical Distribution Means:

a. Right place at right time c. Right time at inappropriate place
b. Right time at right cost d. Not fix place &Time

42.When the technical progress is low & The rate of market growth is moderate, which one is preferable:
a. No Change in Technology c. Acquisition of R & D Firm
b. Exclusive Outsourcing d. In house R & D.

43. If Technology is Changing Rapidly and market is growing slowly, which one is preferable:
a. No Change in Technology c. Acquisition of R & D Firm
b. Exclusive Outsourcing d. In house R & D.

44.If the technological change is slow but market is growing quickly, than which one is preferable.
a. No Change in Technology c. Acquisition of R & D Firm
b. Exclusive Outsourcing d. In house R & D.

45. If Both technical progress and market growth are fast. Then which situation is preferable:
a. No Change in Technology c. Acquisition of R & D Firm
b. Exclusive Outsourcing d. In house R & D.

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46.The second approach of R & D Strategy is to be:

a. First mover c. Law –Cost Provider
b. Innovative Imitator d. Differentiator

47. The First approach of R & D Strategy is to be:

a. First mover c. Law –Cost Provider
b. Innovative Imitator d. Differentiator

48. The third approach of R & D Strategy is to be:

a. First mover c. Law –Cost Provider
b. Innovative Imitator d. Differentiator

49.Job –Analysis is a Practice of:

a. Pre-Selection b. Selection c. Post Selection d. Owner

50.Training is the Example of:

a. Pre-Selection b. Selection c. Post Selection d. Owner

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Chapter 7: Organisation and Strategic Leadership

1. __________ leadership style may be appropriate in turbulent environment.

a. Transactional c. Autocratic
b. Transformational d. None of these

2. A strategic business unit is a grouping of __________ businesses.

a. Unrelated b. Differentiated c. Related d. None of these.

3. An entrepreneur is one who:

a. Initiates and innovates a new concept.
b. Does not recognize and utilizes opportunities.
c. Does not want to face risks and uncertainties.
d. None of these.

4. An organizational structure with constricted middle level is:

a. Divisional structure c. Hour Glass structure
b. Network structure d. Matrix structure

5. Change in company’s __________ requires re allocation of resources necessitating need for changes in
__________.
a. Structure, Strategy c. Structure, Structure
b. Strategy, Structure d. Strategy, Strategy

6. In strategic management, there are two main styles of leadership. These are transformational and:
a. Transparent b. Transitional c. Translational d. Transactional

7. A person who searched for business opportunity and starts a new enterprise to make use of that
opportunity called
a. Employee b. Entrepreneur c. Intrapreneur d. Investor

8. Select a distinguishing feature between divisional and functional structure?

a. Both functional departments and divisional process departments are accountable for profits or
revenues.
b. Functional departments are not accountable for profits or revenues, whereas divisional process
departments are evaluated on these criteria.
c. None of functional departments and divisional process departments are accountable for profits or
revenues.
d. Both the structures are same.

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9. Which of the following situation will most likely suit a transformational leader?
a. An organization that is in trouble.
b. A growing organization.
c. An organization in a stable environment.
d. An organization at maturity stage of product life cycle.

10. Corporate Culture refers to:

a. Company’s values and beliefs c. Internal work environment
b. Company’s business principles d. All the above.

11. __________ may result in company rigidity and red tapism, given the complexity and need for rapid
changes in today's competitive landscape.
a. Destructive planning c. Organised structure
b. Demand and supply d. Ineffective strategy/structure

12. Structure can also __________ strategy.

a. Influence b. Injects c. Plan d. Adjust

13. Simple organizational structure is most appropriate for companies that follow a __________ and offer
a line of products in a __________.
a. single business strategy, single geographic market
b. Multiple business strategy, Multiple geographic market
c. Digital business strategy, multiple geographic market
d. single geographic market, single business strategy

14. The __________ also is appropriate for companies implementing focused cost leadership or focused
differentiation strategies.
a. Simple structure c. Hourglass structure
b. Matrix structure d. Division structure

15. A simple structure is an organizational form in which the owner-manager makes all major decisions
directly and monitors all activities, while the company's staff merely serves as an executor. Correct or
Incorrect
a. Incorrect c. Both of the above
b. Correct d. None of the above

16. In the simple structure, communication is __________, and new products tend to be introduced to the
market quickly, which can result in a competitive advantage.
a. Slow b. Indirect c. A and B d. frequent and direct

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17. A widely used structure in business organisations is functional type because of its __________.
a. Simplicity and realistic cost c. Simplicity and low cost
b. Simplicity and average cost d. Simplicity and high cost

18. Differences in functional specialization and orientation may __________ communications and
coordination.
a. Correct b. Improve c. Adjust d. Impede

19. Who often may develop a myopic (or narrow) perspective, losing sight of the company's strategic vision
and mission.
a. Target Specialists c. Related specialists
b. Functional specialists d. Non Functional specialists

20. In which structure, functional activities are performed both centrally and in each division separately.
a. Divisional structure c. Simple structure
b. Functional structure d. Matrix structure

21. When a few major customers are of paramount importance and many different services are provided to
these customers, then which structure can be the most effective way to implement strategies.
a. Divisional structure by process c. Divisional structure by area
b. Divisional structure by customer d. Divisional structure by product

22. Which structure was developed in the 1920s, in response to coordination- and control related problems
in large firms.
a. Simple structure or S-form c. Divisional or D-form
b. Multidivisional or M-form d. Classical or C-form

23. When the firm is __________, strategic controls are used to manage divisions.
a. More developed c. More diversified
b. Less diversified d. Diversified

24.__________ refers to the operational understanding by corporate officers of the strategies being
implemented within the firm's separate business units.
a. Implementation control c. Strategic alliance
b. Special alert control d. Strategic control

25. Which is the most complex of all designs because it depends upon both vertical and horizontal flows of
authority and communication.
a. Divisional structure c. A matrix structure
b. Hour glass structure d. A detailed structure

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26.Functional and divisional structures depend primarily on vertical flows of authority and communication.
Is this statement correct?
a. Partially correct b. Correct c. Not correct d. None of the above

27. The matrix structure is widely used in many industries, including construction,
a. Healthcare, research and defence. c. Educational industries
b. Cement d. Healthcare, research and defence.

28.Cross-functional task forces, (B) Mature matrix and (C) Product/brand management, as per Davis and
Lawrence arrange in order of preference.
a. B, C, A b. A, C, B c. B, A, C d. C, A, B

29.The network structure is an example of what could be termed a "__________"

a. Wrong structure b. Non-structure c. Full structure d. True-structure

30. The network structure becomes most useful when the environment of a firm is __________ and is
expected to remain so.
a. The stable b. Well stable c. Unstable d. Stable

31. The role played by __________ is diminishing as the tasks performed by them are increasingly being
replaced by the technological tools.
a. Middle management c. Corporate level management
b. Top management d. Functional management

32. Hourglass organization structure consists of three layers with constricted middle layer.
a. Constricted means Shrunken c. Constricted means very large
b. Constricted means Large d. Constricted means tiny

33. Which structure has a short and narrow middle-management level.

a. Multi divisional structure c. Hourglass structure
b. Functional structure d. None of the above

34. A strategic leader is a change agent to initiates strategic changes in the organisations and ensure that the
changes successfully implemented. Correct or Incorrect?
a. Correct b. Incorrect c. Can’t say d. None of the above

35. Transformational leadership style uses __________ to inspire people to exert them for the good of the
organization.
a. Authority and responsibility c. Carrot and stick formula
b. Charisma and enthusiasm d. Law and order

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36. Transformational leadership style may be appropriate in turbulent environments, in industries at the very
start or end of their life-cycles, in poorly performing organizations when there is a need to inspire a
company to embrace major changes. Correct or Incorrect
a. Incorrect b. Correct c. Can’t say d. None of the above

37. Which type of __________ leaders offer excitement, vision, intellectual stimulation and personal
satisfaction.
a. Modern c. Transformational
b. Traditional d. Non Transformational

38.Which style of leadership focuses more on designing systems and controlling the organization's activities
and are more likely to be associated with improving the current situation.
a. Accounting leadership c. Both
b. Transformational d. Transactional leadership

39. Transactional leadership style may be appropriate in __________ environment.

a. Static b. Non Static c. Very Static d. Volatile

40. An organization's __________ is either an important contributor or an obstacle to successful strategy

execution.
a. Plan and policies c. Terminologies
b. Traditions and Legends d. Culture

41. The person who perceives the business idea and take steps to implement the idea is known as an
__________.
a. Entrepreneur b. Intrapreneur c. Both d. None of the above

42.An __________ is a person who searched for business opportunity and starts a new enterprise to make
use of that opportunity.
a. Intrapreneur b. Entrepreneur c. Both d. None of the above

43. __________ latter represents an employee who promotes innovation within the limits of the
organisation.
a. Intrapreneur b. Entrepreneur c. Both d. None of the above

44.An __________ is nothing but an entrepreneur who operates within the boundaries of an organisation.
a. Intrapreneur b. Entrepreneur c. Both d. None of the above

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45. It has now become a trend that large corporations appoint entrepreneur within the organisation, to bring
operational excellence and gain competitive edge in the market. Correct or Incorrect?
a. Correct c. Absolutely Correct
b. Incorrect d. None of the above

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Chapter 8: Strategic Implementation and Control

1. You are working as a senior manager of a company. You are entrusted with the task of putting a strategy
in place and see that it is implemented properly. Out of the following, what is the most important thing
that you will have to prepare your organization for?
i) Strategic Audit
ii) Business process reengineering
iii) Strategic Change
iv) Strategic Control
a. i & iii b. iii & ii c. i & iv d. i & ii

2. You are the operations manager and your top management wants to adopt a strategy that you don’t
endorse, what problems would this lead to in implementation of the strategy?
a. No problem c. Technical problem
b. Coordination problem d. Behavioural problem

3. After an earnest attempt to bring in a strategic change in your organization, you the operational head of
XYZ ltd, succeeded but still your organization couldn’t achieve the desired competitive position in the
market. Out of the following what could be the reason?
a. Strategy Formulation c. Strategy Implementation
b. Strategy Model d. Strategy Decision

4. As a strategist, what is your understanding of how strategies are put into action?
a. Strategies are statements of Intent realized through Implementation.
b. Strategies are statements of Intent that are automatically activated.
c. Strategies, by themselves, lead into action.
d. By strategy formulation and not through implementation.

5. The employees of XYZ ltd have been facing problems regarding the difference between the understanding
of strategy formulation and strategy implementation. In order to address this problem, you, the president
operations, made four groups and asked each group to write in points their understanding of the same.
The following points were compiled from their knowing of strategy formulation and implementation.
1. Strategy Formulation focuses on efficiency while Strategy Implementation focuses on effectiveness.
2. Strategy Formulation requires motivation and leadership Skills while Strategic Implementation
require conceptual intuitive and analytical skills.
3. Strategy Formulation is an intellectual process while Strategy Implementation is primarily an
operational process.

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4. Strategy Formulation requires coordination between Executives at middle and lower level while
Strategy Implementation requires coordination among the executives at the top levels. Out of the
following views, what all needs to be corrected?
a. 1,3 &4 b. 1& 2 & 3 c. 1,2 &4 d. 1,2,3 & 4

6. You being the core strategist of your company, entrusted with bringing about strategic change in your
company, how will you initiate “unfreezing of the situation”?
a. Promoting new ideas throughout the organization
b. Promoting compliance throughout the organization
c. Promoting change in process throughout the organization
d. None of the above

7. You are the head of operations of a company. When you focus on total or aggregate management functions
in the sense of embracing the integrated activities of a complete department et al, you are practicing:
a. Strategic Control c. Administrative Control
b. Management control d. Operations Control

8. Which of the following would be chosen by the core strategist to implement operational control:
a. Premise Control c. Implementation Control
b. Special Alert Control d. Budgetary Control

9. In which of the following circumstances would you initiate a strategic audit in your company?
i) When top management feels the need
ii) When the goals and objectives of the strategy are not being accomplished
iii) When a major change takes place in the external environment of the organization
When the performance indicators reflect that a strategy is not working properly or is not producing the
desired outcome.
a. I, II, IV b. II, III, IV c. I, II, III d. All of the above

10. When it comes to identifying problem areas and correct the strategic approaches that have not been
effective so far, what should a strategic manager choose to do out of the following:
a. BPR b. Benchmarking c. Strategic Change d. Strategic Audit

11. With reference to Richard Rumelt’s criteria for Strategic Audit, what out of the following is the first
limitation against which strategy is audited?
a. Financial Resource b. Human Resource c. Physical Resource d. All of the above

12. The model of change has been propounded by:

a. Michael Hammer b. Michael Porter c. Kurt Lewin d. Kurt Louis

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13. Compliance, Identification and Internalization are the three processes involved in:
a. Refreezing c. Changing behavior patterns
b. Defreezing d. Breaking down old attitudes

14. As the head of an MNC, you have been asked to bring in radical changes in your organisation through
BPR. Which of these is the thrust area you would focus on reducing:
a. Total cycle time c. Total inventory time
b. Total order time d. None

15. Business Process Reengineering involves:

a. Partial Modification c. Massive Improvement
b. None of the two d. Replacing Engineers

16. Strategy evaluation is more difficult today due to the following trends except:
a. A dramatic increase in the environment’s complexity.
b. The increasing difficulty of predicting the future with accuracy.
c. The increasing number of variables in the environment.
d. Firms have unlimited resources.

17. With reference to benchmarking, select the correct statement out of the following:
a. The focus of benchmarking is to study existing processes and eliminate the ones that are redundant.
b. Traditional controlling has been rephrased as benchmarking.
c. Benchmarking helps in setting goals and measuring productivity based on best industry practices.
d. Benchmarking solves all business problems.

18. BPR is an unusual improvement in operating effectiveness through the redesigning of __________.
business process and supporting business systems.
a. Usual b. Common c. Critical d. None of these

19. The purpose of strategy evaluation is to

a. Increase the budget annually.
b. Alert management to problems or potential problems.
c. Make budget changes.
d. Evaluate employees’ performance.

20. Which one is not the basic activity of Strategy Audit?

a. Examining the underlying bases of a firm’s strategy.
b. Setting the goals and objectives of the firm.
c. Comparing expected results with actual results.
d. Taking corrective actions to ensure that performance conforms to plans.

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21. Which one is NOT a type of strategic control?

a. Operational control c. Special alert control
b. Strategic surveillance d. Premise control

22. __________ concerns the managerial exercise of putting a freshly chosen strategy into action.
a. Strategy implementation c. Strategy evaluation
b. Strategy Planning d. None of the above

23. __________is concerned with translating a strategic decision into action, which presupposes that the
decision (i.e, the strategic choice) was made with some thought being given to feasibility and acceptability.
a. Strategy implementation c. Strategy evaluation
b. Strategy Planning d. None of the above

24.A company will be successful only when the __________is sound and implementation is excellent.
a. Strategy formulation c. None of the above
b. Management d. Strategy evaluation

25. Successful strategy formulation does not guarantee successful __________.

a. Strategy implementation c. Strategy planning
b. Strategy evaluation d. None of the above

26.Strategy formulation focuses on __________.

a. Effectiveness b. Efficiency c. Both d. None of the above

27. Strategy implementation focuses on __________.

a. Effectiveness b. Efficiency c. Both d. None of the above

28.Strategy formulation is primarily an __________ process.

a. Intellectual b. Operational c. Activity d. None of the above

29.Strategy implementation is primarily an __________ process.

a. Operational b. Intellectual c. Action d. None of the above

30. __________ requires conceptual intuitive and analytical skills.

a. Strategy formulation c. Both
b. Strategy implementation d. None of the above

31. __________ requires motivation and leadership skills.

a. Strategy formulation c. Both
b. Strategy implementation d. None of the above

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32. __________ requires coordination among the executives at the top level.
a. Strategy formulation c. Both
b. Strategy implementation d. None of the above

33. __________ requires coordination among the executives at the middle and lower levels.
a. Strategy formulation c. Both
b. Strategy implementation d. None of the above

34. __________ has proposed three methods for reassigning new patterns of behaviour
i) Compliance
ii) Identification
iii) Internalization.
a. H.C. Kellman b. Michel Porter c. C. K. Prahalad d. None of the above

35. __________ occurs when the new behaviour becomes a normal way of life. The new behaviour must
replace the former behaviour completely for successful and permanent changes to take place.
a. Refreezing b. Freezing c. Change d. None of the above

36. __________ process is not one-time application but a continuous process due to dynamism and ever
changing environment.
a. Change b. Refreezing c. Freezing d. None of the above

37. According to __________ “Strategic control focuses on the dual questions of whether: 1) the strategy is
being implemented as planned; 2) the results produced by the strategy are those intended”
a. Michel Porter c. H. C. Kellman
b. Schendel and Hofer d. None of the above

38.__________ is a tool for systematic and continuous monitoring of the environment to verify the validity
and accuracy of the premises on which the strategy has been built.
a. Special Alert Control c. Both
b. Premise Control d. Strategy control

39. __________ At times, unexpected events may force organizations to reconsider their strategy.
a. Special Alert Control c. Both
b. Premise Control d. Strategy control

40. Strategic implementation control is not a replacement to__________.

a. Operational control c. Strategy audit
b. Strategy management d. None of the above

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41. A __________ is an examination and evaluation of areas affected by the operation of a strategic
management process within an organization.
a. Strategy audit c. None of the above
b. Strategy management d. Control

42.__________ refers to the need for strategists to examine sets of trends, as well as individual trends, in
auditing strategies.
a. Consonance b. Core process c. Creativity d. None of the above

43. __________ business process are critical in a company’s evaluation by its customers.
a. Core b. Non-core c. Procurement d. None of the above

44.__________ refers to the analaysis and redesign of workflows and processes both within and between
the organizations
a. BPR c. Strategy implementation
b. Strategy performance d. None of the above

45. __________ means starting all over, starting from scratch.”

a. BPR b. Benchmarking c. Core d. None of the above

46.__________ is an approach of setting goals and measuring productivity based on best industry
practices.
a. BPR b. Benchmarking c. Core d. None of the above

47. __________ helps in improving performance by learning from best practices and the processes by
which they are achieved.
a. BPR b. Benchmarking c. Core d.None of the above

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Additional MCQs

1. Which of the following statements correctly explain strategic management?

i) Strategic management provides framework for major decisions.
ii) Strategic management helps to enhance the longevity of the business.
iii) Strategic management is an inexpensive process.
iv) Strategic management helps organisation to be more reactive than proactive.
a. (i) and (ii) b. (i), (ii) and (iii) c. (i), (ii) and (iv) d. (i), (iii) and (iv)

2. Which of the following is not true for core competency:

a. It distinguishes a company competitively.
b. It is a source of competitive advantage.
c. It is an individual skill and separate technique.
d. It is often visible in the form of organizational functions.

3. Statement that is typically focused on present business scope and broadly describes an organizations
present capabilities, customer focus, activities, and business makeup is:
a. Vision b. Mission c. Strategy d. Goals

4. Arrange divestment, liquidation, stability and turnaround strategies in order of preference for adoption
by a typical organisation.
a. Turnaround, stability, liquidation and divestment.
b. Divestment, liquidation, stability and turnaround.
c. Stability, turnaround, liquidation and divestment.
d. Stability, turnaround, divestment and liquidation.

5. Which of the following is not true for SBUs

a. It is relevant for multi-product, multi-business enterprises.
b. It provides for more control at enterprise level with centralised strategic planning.
c. A SBU has its own set of competitors.
d. SBUs can be created for units at distant geographical locations.

6. Acquisition of another organisation that was using your product in their manufacturing is:
a. Horizontal integrated diversification
b. Forward integrated diversification
c. Backward integrated diversification
d. conglomerate diversification

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7. Porter’ cost leadership is a __________ strategy

a. Functional level b. Business level c. Corporate level d. Implementation

8. Which of the following statement is not true with regards to strategy?

a. Strategy reduces uncertainty.
b. Strategy is long range blueprint of desired position.
c. Strategy relates organisations to the external environment.
d. Strategy is perfect and flawless.

9. The strategic management process is:

a. A solution that guarantees prevention of organizational failure.
b. Concerned with a resources, capabilities, and competencies, but not the conditions in its external
environment.
c. Not to be used in the not-for-profit organisations.
d. Full set of commitments, decisions, and actions related to the firm.

10. Mission:
a. Is an internally-focused definition of the organization's societal goals.
b. Is a statement of a firms unique purpose and scope of operations.
c. Does not relate to the industry in which the firm intends to compete.
d. Is developed by a firm before the firm develops its strategic intent.

11. A __________ consists of those rival firms which have similar competitive approaches and positions in
the market.
a. BCG Matrix. b. Strategic group. c. Strategy Map. d. Industry.

12. According to C.K. Prahalad and Gary Hamel, major core competencies are identified in three areas -
__________, __________, and application to other markets.
a. Competitor differentiation, customer value. c. Cost leadership, differentiation.
b. Competitor differentiation, focus. d. Profits, growth.

13. Which of the following statement is not true about strategic decisions?
a. They need top-management involvement.
b. Involve commitment of organisational resources.
c. They are based on external environment
d. They have insignificant impact on the long-term prosperity

14. Strategic decision making can take place at three common levels of an organisation as follows:
a. Divisional, group and individual. c. Corporate, business and functional.
b. Executive, leader and manager. d. Strategic, tactical and operational.

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15. Which of the following is not a type of diversification strategy?

a. Vertical diversification. c. Conglomerate diversification.
b. Concentric diversification. d. Co-generic diversification.

16. A thing that a firm does especially well in comparison to the rival firms is:
a. Opportunity availed. c. Competitive advantage.
b. Successful leadership. d. Comparative advantage.

17. Stability strategy is a __________ strategy.

a. Functional level. c. Corporate level.
b. Business level. d. Implementation.

18. Under BCG an SBU with products having little market share but in an attractive industry is referred to
as:
a. Cash cow. b. Star. c. Dog. d. Question mark.

19. Which of the following does not form part of Richard Rumelt’s criteria for strategy audit?
a. Adaptation. b. Consistency. c. Consonance. d. Feasibility.

20. According to Porter, which of the following is important to achieve competitive advantage?
a. Differentiation and cost advantage.
b. Outsourcing activities.
c. Having strong relationship with buyer and sellers.
d. Focus on most competitive businesses.

21. What will happen in case many new businesses enter a market?
a. Barriers to entry will rise. c. Capacity of industry will fall.
b. Competitive rivalry will intensify. d. Industry will become more lucrative.

22. Marketing Strategy is the following type of strategy:

a. Business Strategy. c. Growth Strategy.
b. Functional Strategy. d. Product Strategy.

23. Which of the following situation will most likely suit a transformational leader?
a. An organization that is in trouble.
b. A growing organization.
c. An organization in a stable environment.
d. An organization at maturity stage of product life cycle.

24.Which of the following is not a phase in Kurt Lewin’s Model of Change?

a. Changing. b. Deep freezing. c. Refreezing. d. Unfreezing.

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25. An organization acquires its supplier is an example of:

a. Horizontal integrated diversification. c. Backward integrated diversification.
b. Forward integrated diversification. d. Conglomerate diversification.

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Answer to MCQs

Chapter 1 Chapter -2 Chapter 3 Chapter 4

1. d 1. c 41. b 81. c 1. a 1. b 41. b
2. b 2. d 42. d 82. d 2. c 2. c 42. b
3. c 3. c 43. b 83. d 3. d 3. b 43. c
4. b 4. a 44. c 84. d 4. b 4. a 44. b
5. d 5. d 45. a 85. a 5. c 5. b 45. c
6. d 6. b 46. d 86. a 6. d 6. d 46. c
7. b 7. a 47. a 87. a 7. a 7. a 47. d
8. d 8. b 48. a 88.b 8. c 8. b
9. a 9. c 49. d 89. c 9. d 9. b
10. a 10. c 50. d 90. d 10. a 10. c
11. d 11. d 51. c 91. e 11. b 11. b
12. d 12. b 52. c 92. a 12. b 12. d
13. a 13. d 53. a 93. d 13. a 13. b
14. c 14. d 54. a 94. a 14. b 14. b
15. d 15. b 55. a 95. b 15. a 15. b
16. a 16. c 56. c 96. c 16. a 16. b
17. c 17. a 57. d 97. d 17. a 17. c
18. b 18. a 58. c 98. c 18. a 18. b
19. a 19. b 59. a 99. a 19. a 19. a
20. a 20. a 60. b 100. b 20. b 20. b
21. d 21. a 61. d 101. c 21. a 21. b
22. b 22. a 62. a 102. d 22. b 22. a
23. b 23. b 63. b 103. a 23. a 23. d
24. c 24. c 64. c 104. a 24. a 24. a
25. c 25. d 65. d 105. a 25. b 25. c
26. a 66. b 106. b 26. c 26. b
27. d 67. d 27. c 27. d
28. b 68. a 28. c
29. d 69. b 29. a
30. b 70. d 30. b
31. a 71. c 31. b
32. a 72. a 32. c
33. c 73. b 33. c
34. b 74. c 34. b
35. c 75. d 35. c
36. a 76. a 36. c
37. d 77. a 37. a
38. a 78. a 38. d
39. a 79. b 39. c
40. d 80.c 40. c

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Chapter 5 Chapter 6 Chapter 7 Chapter 8 Additional Questions

1. c 1. c 41. a 1. b 41. a 1. c 41. a 1. a
2. c 2. c 42. d 2. c 42. b 2. b 42. a 2. c
3. d 3. d 43. a 3. a 43. a 3. c 43. a 3. b
4. d 4. d 44. b 4. c 44. a 4. a 44. a 4. d
5. b 5. c 45. c 5. b 45. b 5. c 45. a 5. b
6. a 6. d 46. b 6. d 6. a 46. b 6. b
7. a 7. a 47. a 7. b 7. b 47. b 7. b
8. a 8. b 48. c 8. b 8. d 8. d
9. b 9. c 49. a 9. a 9. d 9. d
10. b 10. b 50. c 10. d 10. d 10. b
11. a 11. d 11. d 11. a 11. b
12. a 12. d 12. a 12. c 12. a
13. c 13. b 13. a 13. c 13. d
14. b 14. a 14. a 14. a 14. c
15. d 15. b 15. b 15. c 15. d
16. d 16. a 16. d 16. d 16. c
17. b 17. d 17. c 17. c 17. c
18. c 18. c 18. d 18. c 18. d
19. a 19. a 19. c 19. b 19. a
20. d 20. d 20. a 20. b 20. a
21. d 21. b 21. b 21. a 21. b
22. d 22. d 22. b 22. d 22. b
23. d 23. c 23. b 23. a 23. a
24. a 24. a 24. d 24. a 24. b
25. c 25. c 25. a 25. c
26. a 26. b 26. a
27. b 27. d 27. b
28. c 28. b 28. a
29. b 29. b 29. a
30. c 30. c 30. a
31. b 31. a 31. b
32. c 32. a 32. a
33. d 33. c 33. b
34. b 34. a 34. a
35. d 35. b 35. a
36. b 36. b 36. a
37. c 37. c 37. b
38. c 38. d 38. b
39. b 39. a 39. a
40. c 40. d 40. a

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