Strategic Management Icai Bos App Compiler
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CA INTERMEDIATE
(STRATEGIC MANAGEMENT: SEC-B)
ICAI BOS APP COMPILER
Chapter 1: Introduction To Strategic Management
SIMPLE:
Q:1 Kanchan is the finance head for the marketing strategies of a company. Which level of
management is she working at?
Answer 1: Corporate Level
Answer 2: Functional Level
Answer 3: Shop Floor Level
Answer 4: Consultant Level
Right Answer: 2
Description: Functional Level
0:2 Functional level managers are concerned with-------------
Answer 1: Strategies that are responsible for the operations of specific business
Answer 2: Strategies that span multiple businesses
Answer 3: Strategies that are specific to particular country
Answer 4: Strategies that encourage a favorable attitude toward change
Right Answer: 1
Description: Strategies that are responsible for the operations of specific business
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Q:3 Which one of the following, focuses on present business scope- 'who we are and what we
do?
Answer 1: Mission Statement
Answer 2: Vision Statement
Answer 3: Goals and objectives
Answer 4: Purpose
Right Answer: 1
Description: Mission Statement
Q:4 Formulation of strategies and their implementation in a strategic management process
undertaken by- is
Answer 1: Top level executives
Answer 2: Middle level executives
Answer 3: Lower level executives.
Answer 4: All of the above
Right Answer: 4
Description: All of the above
Q:5 Strategic management allows organization to be more-
Answer 1: Authoritative
Answer 2: Participative
Answer 3: Commanding
Answer 4: Proactive
Right Answer: 4
Description: Proactive
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Q:6 Which statement should be created first and foremost?
Answer 1: Strategy
Answer 2: Vision
Answer 3: Objectives
Answer 4: Mission
Right Answer: 2
Description: Vision
0:7 Strategy is-
Answer 1: Proactive in action
Answer 2: Reactive in action
Answer 3: A blend of proactive and reactive actions
Answer 4: None of the above
Right Answer: 3
Description: A blend of proactive and reactive actions
Q:8 The statement "where we want to go "denotes company
Answer 1: Objective
Answer 2: Policy
Answer 3: Strategy
Answer 4: Vision
Right Answer: 4
Description: Vision
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Q:9 Strategy is a game plan used for which of the following?
Answer 1: To take market position
Answer 2: To attract and satisfy customers
Answer 3: To respond to dynamic and hostile environment
Answer 4: All of the shove
Right Answer: 4
Description: All of the above
0:10 Reactive strategy termed as also
Answer 1: Planned strategy
Answer 2: Adaptive strategy
Answer 3: Sound strategy
Answer 4: Dynamic strategy
Right Answer: 2
Description: Adaptive strategy
0:11 The philosophical philosophy base of strategic management falls within the concept of
Answer 1: Strategic Intent
Answer 2: Portfolio Analysis
Answer 3: Globalization
Answer 4: Vision Statement
Right Answer: 1
Description: Strategic Intent.
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MEDIUM:
Q:1 What involves formulating, implementing, and evaluating cross-functional decisions that
enable an organization to achieve its objectives?
Answer 1: Strategy formulation
Answer 2: Strategy evaluation
Answer 3: Strategy implementation
Answer 4: Strategic management
Right Answer: 4
Description: Strategic management
0:2 Which of the following managers' role is to translate the general statements/ strategies into
concrete strategies of their individual businesses-
Answer 1: Supervisor
Answer 2: Functional Manager
Answer 3: CEO of the company.
Answer 4: All of the above
Right Answer: 2
Description: Functional Manager
Q:3 What is one of the key purposes of having an organizational mission?
Answer 1: Ensuring unanimity of purpose within the organization,
Answer 2: Setting short-term operational goals.
Answer 3: Providing a basis for marketing strategies.
Answer 4: Specifying financial forecasts.
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Right Answer: 1
Description: Ensuring unanimity of purpose within the organization.
0:4 Which of the following are responsible for formulating and developing realistic and attainable
strategies?
Answer 1: Corporate level and business level managers.
Answer 2: Corporate level and functional level managers.
Answer 3: Functional managers and business level managers
Answer 4: Corporate level managers, business level managers. and functional level managers
Right Answer: 4
Description: Corporate level managers, business level managers and functional level managers
Q:5 Shreya, the owner of Kalakaari of boutiques, delegated tasks as per the competencies of her
team. What is she covering here?
Answer 1: Risk
Answer 2: Work Culture
Answer 3: Employee friendly vision
Answer 4: Proper use of mission statement
Right Answer: 4
Description: Proper use of mission statement.
0:6 McDonalds is deciding whether to expand into manufacturing kitchen equipment in China. At
what level is this decision likely to be made?
Answer 1: Business
Answer 2: Corporate
Answer 3: Functional
Answer 4: International
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Right Answer: 2
Description: Corporate
Q:7 Strategic management enables an organization to Instead of companies just responding to
threats in their business environment..
Answer 1: be proactive
Answer 2: determine when the threat will subside
Answer 3: avoid the threats
Answer 4: defeat their competitors
Right Answer: 1
Description: be proactive
0:8 Which of the following is correct?
Answer 1: A Strategy is always
pragmatic and not flexible
Answer 2: Strategy is not always perfect, flawless and optimal
Answer 3: Strategy is always perfect, flawless and optimal
Answer 4: Strategy is always flexible but not pragmatic
Right Answer: 2
Description: Strategy is not always perfect, flawless, and optimal
Q:9 Which one of the following cannot be considered as a part of a proactive approach in
strategy?
Answer 1: Planned strategy
Answer 2: Deliberate management design
Answer 3: Forecast about future market condition
Answer 4: Adaptive reactions to changing circumstances.
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Right Answer: 4
Description: Adaptive reactions to changing circumstances
DIFFICULT:
Q:1 Drishti Care not-for profit eye hospital and research center. Which one of the following
statements is likely to relate to Drishti Careas vision, rather than its mission statement?
Answer 1: Drishti Care places patient care before all else
Answer-2: Drishti Care will be the global leader in cutting edge eye surgery
Answer 3: Drishti Care offers the highest level of patient care throughout country
Answer 4: Drishti Care consultants strive to continually improve surgical techniques
Right Answer: 2
Description: Drishti Care will be the global leader in cutting edge eye surgery.
0:2 Mr. Prakash and Mr. Pal are partners in a thriving business venture. Recently, they have
become aware of their employees' dissatisfaction with their working conditions. Mr. Prakash
believes that the situation should be dealt with before the employees explode. Mr. Pal, on the
other. hand, believes that if the employees have an outburst, then they will handle it. Mr. Prakash
and Mr. Pal business philosophy is:
Answer 1: Reactive, Proactive
Answer 2: Reactive, Reactive.
Answer 3: Proactive, Proactive
Answer 4: Proactive, Reactive
Right Answer:4
Description: Proactive, Reactive
Q:3 Meba Ltd. had huge capacity of 40,000 Kilo Litres products production of Kerosene Oil, and
they were able to achieve 90% of it almost always, while the teams were also aware that they can
achieve 100% capacity with very less efforts, but always kept margins. Further, the business
team was planning to setup more plants of 20,000 Kilo Litre capacity each in the next five years.
This was a welcomed. move from state governments as well. From the above, which of the
following owing aspects of the objective has has not been given much importance?
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Answer 1: They should be clear and quantifiable
Answer 2: They should be concise
Answer 3: They should be challenging
Answer 4: They should provide standard for comparative appraisal
Right Answer: 3
Description: They should be challenging
Q:4 Dee Limited is an international clothing retailer. The company is making the following
decisions:
i. Should another range of shops be established? ii. Should the company float share capital?
iii. How will the premises be fitted out for the new range of shops?
Which of the above decisions will be taken by corporate-level managers?
Answer 1: Only (1)
Answer 3: (1) 4 (1)
Answer 4: (i) & (m)
Right Answer: 3
Description: (i) & (i)
Q:5 Imagine you are part of a strategic planning team for a company. As you work on defining
the company's identity and its current business scope, which of the following elements primarily
concentrates on answering the question, "Who we are and what we do?"
Answer 1: Mission statement
Answer 2: Vision statement
Answer 3: Goals and Objectives
Answer 4: Purpose
Right Answer: 1
Description: Mission statement
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Q:6 Mr. Parek sharing with his friend in an informal discussion that he has to move very
cautiously in his organization as the decisions taken by him have organization wide impact and
involve large commitments of resources. He also said that his decisions decide the future of of
his organization, Where will you place Mr. Parek in the organizational hierarchy?
Answer 1: Middle Level
Answer 2: Low Level
Answer 3: Top Level
Answer 4: A None of the above
Right Answer: 3
Description: Top Level
Q:7 An organization during its strategy planning envisaged the entire situation and created a
strategy framework. But mean time after implementation, it realized that its framework is not
effective in certain unique unplanned situations. What could be the reason for such
ineffectiveness?
Answer 1: Strategy is partly proactive and partly reactive
Answer 2: Lack of analysis and
proper planning.
Answer 3: Strategy is highly reactive and highly proactive
Answer 4: Improper creation of strategic framework.
Right Answer: 1
Description: Strategy is partly proactive and partly reactive.
Q:8 BBL Bank had strategically. decided to set up a separate office in Mumbai back in 2016,
specifically to invest in crypto currencies and in development of robust blockchain facilities.
Which importance of strategic management did BBL Bank make use of?
Answer 1: Gives direction to the management of the company.
Answer 2: Helps to be proactive instead of being reactive.
Answer 3: Provides a framework for all major future decisions.
Answer 4: Supports development of new SBUs like in this case separate office for Blockchain.
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Right Answer: 2
Description: Helps to be proactive instead of being reactive.
Q:9 The following is the message of CEO to all his divisional heads: It is significant to
understand the persisting need for developing new vistas of work, and that, of course, is
preceded by the acute need for the ability to adapt the everchanging external world. We, at Krom
Limited, have identified that embracing to digital technology is where our future lies, and we
shall all pledge to make this transition. transition successful choice which will definitely entail a
few organizational changes."
The underlying message of the CEO in your opinion is that of a
Answer 1: Mission statement
Answer 2: Vision statement
Answer 3: Value/value system
Answer 4 Strategic transformational leadership statement
Right Answer: 2
Description: Vision statement
0:10 Read the statements. following three
(i) Strategies have short- range implications.
(W) oriented. Strategies action
(iii) Strategies defined. rigidly
From the combinations given below select an alternative that represents statements that are
true:
Answer 1: (1) and (1)
Answer 2: A (i) and (iii)
Answer 3: (ii) and (i)
Answer 4: (1), (ii) and (ii)
Right Answer: 1
Description: (i) and (ii)
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Q:11 Ever Grand Group a diversified company active in a wide range of business lines, including
Financial Services, Fertilizers, Information Technology enabled Services (ITS), FMCG and Real
Estate. The Board of Directors understand the need of the hour and are determined to further
develop the ITeS business, whereby they want better allocation of human. resources and
provision of industry- best customer services. To achieve the same, they have suggested
implementing specific business strategies but the managers are facing difficulties in allocating
the responsibility for implementation of the business strategy amongst them. You being a
management expert, indicate the appropriate persons responsible for translating general
statements business strategies pertaining to the ITeS Strategic Business Unit (SBU) and ensure
a smooth implantation.
Answer 1 Corporate level managers
Answer 2: Functional level managers
Answer 3 General level managers
Answer 4 Business level managers.
Right Answer: 2
Description: Functional level managers
0:12 Members of Infinite Care, an NGO, have met and determined that they need to formulate a
philosophical basis for their activities. Thereby they have come with a statement:
"Provide children till age 12, living in homeless or low-income situations, with the essential items
they need to thrive- at home, at school and at play.
Identify the area of strategic intent, which the members have stated?
Answer 1 Vision
Answer 2 Business definition
Answer 3 Goal and Objective
Answer 4: Mission
Right Answer: 4
Description: Mission
0:13 Velvet Limited is a full-service airline. The company is making the following decisions:
1. Should 'no-frills', 'low-fare subsidiary be set-up? if it is how should set-up, how cabin staff be
recruited?
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Which of the above decisions will be taken by corporate level managers?
Answer 1: Only (1)
Answer 2: Only (il)
Answer 3: (i) &()
Answer 4 Neither (i) nor (ii)
Right Answer: 1
Description: Only (1)
Q:14 A Ltd. has recently decided to install a new IT system to improve the efficiency of its payroll
function. A ltd. believes this will reduce the cost of running the payroll system by 20%. Which
one of the following levels of strategy is the above IT system most closely linked to?
Answer 1 Corporate level
Answer 2: Functional level
Answer 3 Business level
Answer 4: Strategic level
Right Answer: 2
Description: Functional level
0:15 Greg was heading the Global Biscuits SBU for Jonky's Ltd. and he got an email
congratulating him for being promoted as the head of entire business of Jonky's in India. Which
of the following statements is true about Greg's position?
a. Greg was a business level manager but now he is corporate level manager
b. Greg was a functional level
manager but now he is
corporate level manager c. Greg was a business level manager and now also he is a business
level manager
Greg was a corporate level manager and now also he is a corporate level manager
Answer 1: Greg was a business level manager but now he is a corporate level manager
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Answer 2. Greg was a functional level manager but now he is a corporate level manager
Answer 3: Greg was a business level manager and now also he is a business level manager.
Answer 4: Greg was a corporate level manager and now also he is a corporate level manager
Right Answer: 1
Description: Greg was a business level manager but now he is a corporate level manager
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Chapter 2: Strategic Analysis External Environment
SIMPLE:
Q:1 Competitive landscape requires the application of
Answer 1: Competitive advantage
Answer 2: Competitive strategy
Answer 3: Competitive acumen
Answer 4: Competitive intelligence
Right Answer: 4
Description: Competitive intelligence
Q:2 Competitive landscape requires the application of-
Answer 1: Competitive advantage
Answer 2: Competitive strategy
Answer 3: Competitive acumen
Answer 4: Competitive intelligence
Right Answer: 4
Description: Competitive intelligence
Q:3 framework for The term PESTLE analysis is used to describe analyzing:
Answer 1: Macro Environment
Answer 2: Micro Environment
Answer 3: Both Macro and Micro Environment
Answer 4: None of above
Right Answer: 1
Description: Macro Environment
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0:4 What is not one of Michael Porter's five competitive forces?
Answer 1: Threat to New entrants
Answer 2: Rivalry among existing firms
Answer 3: Bargaining power of unions
Answer 4: Bargaining power of suppliers
Right Answer:3
Description: Bargaining power of unions
Q:5 The term PESTLE analysis is used to describe a framework for analyzing:
Answer 1: Macro Environment
Answer 2: Micro Environment
Answer 3: Both Macro and Micro Environment
Answer 4: None of above
Right Answer: 1
Description: Macro Environment
0:6 All are elements of Macro environment except:
Answer 1: Society
Answer 2: Government
Answer 3: Competitors
Answer 4: Technology
Right Answer: 3
Description: Competitors
Q:7 The process management of strategic can be made effective by building-
Answer 1: Product advantage
Answer 2: A Market advantage
Answer 3: Competitive advantage
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Answer 4: Price advantage
Right Answer: 3
Description: Competitive advantage
Q:8 KSFs stand for:
Answer 1: Å Key strategic factors
Answer 2: Key supervisory factors
Answer 3: Key success factors
Answer 4: Key sufficient factors
Right Answer: 3
Description: Key success factors
Q:9 'Attractiveness of firms' while conducting industry analysis should be seen in-
Answer 1: Relative terms
Answer 2: Å Å Absolute terms
Answer 3: Comparative terms
Answer 4: All of the above
Right Answer: 1
Description: Relative terms
Q:10 Which of the following constitute the Demographic Environment?
Answer 1: Nature of economy i.e. capitalism, socialism, MixedÅ
Answer 2: Size, composition, distribution of population, sex ratio
Answer 3: Foreign trade policy of Government
Answer 4: Economic policy i.e. fiscal and monetary policy of Government
Right Answer: 2
Description: Size, composition, distribution of population, sex ratio
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0:11 Which of the following is not an example of socio-cultural environment?
Answer 1: Role of women in society
Answer 2: Rising income
Answer 3: Family structure
Answer 4: Educational levels
Right Answer: 2
Description: Rising income
MEDIUM
Q:1 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.
Answer 1: Maturity
Answer 2: Introduction
Answer 3: Growth
Answer 4: Decline
Right Answer: 2
Description: Introduction
Q:2 A company can reduce the threat of substitutes by:
Answer 1: Increasing product differentiation
Answer 2: Lowering prices
Answer 3: Expanding into new markets
Answer 4: Strengthening supplier relationships
Right Answer: 1
Description: Increasing product differentiation
0:3 Which environment can create new markets and new business segments?
Answer 1: Political environment
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Answer 2: Economic environment
Answer 3: Socio Cultural environment
Answer 4: Technological environment
Right Answer: 4
Description: Technological environment
Q:4 A company can mitigate the threat of new entrants by:
Answer 1: Increasing advertising and marketing efforts
Answer 2: Establishing strong brand loyalty
Answer 3: Building economies of scale
Answer 4: Lowering prices
Right Answer: 3 Description:Building economies of scale
Q:5 When competitive rivalry is high, it means:
Answer 1 There are few competitors in the market
Answer 2: Customers have low bargaining power
Answer 3: There is intense competition among existing firms
Answer 4: Suppliers have high bargaining power
Right Answer: 3
Description: There is intense competition among existing firms
Q:6 The strategic landscape of healthcare sector around the world is changing rapidly because
of-
Answer 1: Doctors Educational Interests
Answer 2: Indian Nurses going to abroad
Answer 3: Internet and Technological advancement
Answer 4. Patients being more aware
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Right Answer: 3
Description: Internet and Technological advancement
Q:7 Which of the following statements is not a factor influencing the socio-cultural environment?
Answer 1: Family structure and changes in it, attitude towards and within the family, and family values.
Answer 2: Educational levels, awareness and consciousness of rights, and work ethics of members. of
society.
Answer 3: Opportunities arising out of technological innovation.
Answer 4: Role of women in society, position of children and adolescents in family and society.
Right Answer: 3
Description: Opportunities arising out of technological innovation.
Q:8 The bargaining power of buyers is high when:
Answer 1: There the market are few w buyers in
Answer 2: There are many sellers in the market
Answer 3: Buyers have limited information about the product
Answer 4: Buyers have many alternatives
Right Answer: 4
Description: Buyers have many alternatives
Q:9 During which stage of the Product Life Cycle will marketing strategies need to concentrate
on differentiating a product from competing products, building brand loyalty and offering
Incentives to attract competitor's customers?
Answer 1: Decline
Answer 2: Growth
Answer 3: Maturity
Right Answer: 3
Answer 4: Introduction
Description: Maturity
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DIFFICULT
Q:1 A newspaper is planning for the next five years. Which of the following demographic
influence(s) should it consider as part of its external environment analysis?
1. Tax on newspapers
ii. Import of raw materials will suffer if domestic currency weakens.
iii. Increased mobility around the world requires different language version
iv. Carbon emissions from the use and products of paper newspaper
Answer 1: (iii) & (iv)
Answer 2: Only (III)
Answer 3: Only (iv)
Answer 4: (ii), (iii), (iv)
Right Answer: 2
Description: Only (iii)
Q:2 Y Mart super market is planned for the next five years. Which of the following economic
influences should it consider?
1. Unemployment rate ii. Internet ordering
iii. Animal welfare
iv. Consumer legislation
Population size vi. Interest rates
Answer 1: (i) & (vi)
Answer 2: (i), (iv) & (vi)
Answer 3: (iv) & (vi)
Answer 4: (i), (iii), (iv), (vi)
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Right Answer: 1
Description: (i) & (vi)
Q:3 Halder & Sons have invested in the latest technology in terms of the latest printing machines
from Germany and Israel. But the recent advent of the internet has posed a big threat to their
printing business as the majority of their clients have now turned to more environmentally
friendly options. They are not able to sell off their machines which are now redundant. What
condition are they facing right now?
Answer 1: Improper market analysis
Answer 2: Exit Barriers
Answer 3. Paralysis of Strategic Vision
Answer 4: Weak SWOT Analysis
Right Answer: 2
Description: Exit Barriers
Q:4 Imagine you are tasked with analyzing the competitive landscape for a new product launch.
In this context, which of the following factors is not relevant to understanding the landscape?
competitive
Answer 1: Identifying the competitor
Answer 2: Understanding the customer
Answer 3: Determining the strength of the competitors
Answer 4: Determining the weakness of the competitors
Right Answer: 2
Description:Understanding the customer
Q:5 Training Co. operates a network of accounting training centers throughout Europe, the US
and Australia. The business intends to enter developing markets in order to drive growth and
has now decided to to enter India which is 7,500 kilometers from the Training Co.s UK
headquarters. The Board has suggested that it will require externally focused management
Information to move into India. Which of the following is an external factor(s) that the Board
should consider while implementing strategy?
Answer 1. Key local rivals and their strengths and weaknesses
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Answer 2: Courses this market. suitable for
Answer 3: Timing of the cor courses (Public holidays, religious festivals, etc to be avoided)
Answer 4: All of the shave
Right Answer: 4
Description: All of the above
0:6 X-Olympus is a gaming software company specializing in developing games for ZBox and
GameStation-4. The company is facing stiff competition due to saturation of market and price.
wars, which excessively favor and highlight their dependence on gaming console manufacturers.
Thereby, the company desires to establish a competitive advantage over Industry rivals by
enhancing the gaming experience by expanding into Edge- Cloud Gaming Service on a monthly
subscription basis. This service offering does not require dedicated gaming consoles yet
provide customers game streaming 4K resolution with an ample range of games selected from.
This move is expected to insulate X-Olympus from price wars and provide a competitive
advantage. Kindly identify which of Michael Porter's forces and generic strategies perfectly suit
X- Olympus?
Answer 1: Threat of new entrants
Anuwar 2: Rivalry amongst existing players
Answer 3: Bargaining power of suppliers
Answer 4: Threat from substitutes.
Right Answer: 2
Description: Rivalry amongst existing players
Q:7 ABC Ltd. has identified that all three of its main products are in the maturity phase of the
product life cycle. Which of the following is ABC Ltd. Ilkely to be experiencing this?
Answer 1: High, but declining sales
Answer 2: Growing numbers of competitors
Answer 3 Product diversification and differentiation strategies.
Answer 4. Adoption of price skimming strategies
Right Answer: 3
Description: Product diversification and differentiation strategies
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Q:8 The directors of Blaina Packaging Co. (BPC), a well-established manufacturer of cardboard
boxes is considering whether to enter the cardboard tube market. Cardboard tubes are
purchased by customers and these products are of various sizes, ranging from large tubes
which are used for carpets to small tubes which are used for films and paper. Another company,
company, Plastic any, Plastic tubes Co. (PTC), produces a narrow, but increasing, range of
plastic tubes which are capable of housing small products such as film and paper-based
products. This is considered as which of the following Porter's forces for BPC?
Answer 1: Threat of new entrant
Answer 2: Threat of substitutes
Answer 3: Bargaining power of customers
Answer 4: Bargaining power of suppliers
Right Answer: 2
Description: Threat of substitutes
Q:9 Nicole has inherited a restaurant from her uncle. The restaurant had been under-performing
and was closed six months ago. Nicole wants to begin a new restaurant in the premises with a
new name and new cuisine.
The following are primary activities of the value chain that Nicole should consider except:
Answer 1: In bound logistics: side of local, high-quality produce for ingredients
Answer 2: Outbound logistics: consider delivery of the bound to table.Â
Answer 3: Marketing: Presentation of meals
Answer 4: Technology: Advanced cooking equipment
Right Answer: 4
Description: Technology: Advanced cooking equipment
Q:10 Raju started a samosa stall in a local market and the existing momos and bhelpuri stall
owners started creating problems for him. This is an example of-
Answer 1: Bargaining power of suppliers
Answer 2: Threat of new entrants
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Answer 3: Substitute products
Answer 4: Nature of rivalry in industry
Right Answer: 2
Description: Threat of new entrants
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Chapter 3: Strategic Analysis Internal Environment
SIMPLE
0:1 Walmart a global giant sells fast moving consumer goods at even less than wholesale prices
to retail customers, this is a strategy of?
Answer 1: Market Penetration
Answer 2: Cost Differentiation
Answer 3: Cost Leadership
Answer 4: Market Development
Right Answer: 3
Description: Cost Leadership
Q:2 In strategic group mapping, what is the typical axis used to represent dimensions of
competition?
Answer 1: Market share and profitability
Answer 2: Cost and revenue
Answer 3: Price and product quality
Answer 4: Innovation and brand reputation
Right Answer: 1
Description: Market share and profitability
Q:3 For a new product, an organization may choose:
Answer 1: Skimming pricing strategy
Answer 2: Penetration pricing strategy
Answer 3: Both (a) and (b)
Answer 4: None of these
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Right Answer: 3
Description: Both (a) and (b)
0:4 The marketing strategy which is used to reduce or shift the demand is:
Answer 1: Enlightened marketing
Answer 2: Synchro-marketing
Answer 3: Place marketing.
Answer 4: Demarketing
Right Answer: 4
Description: Demarketing
0:5 Core competencies are the knowledge, skills, and facilities necessary to design and produce
Answer 1: Core products
Answer 2 End products
Answer 3 Competitive Advantage
Answer 4. All of the above
Right Answer: 1
Description: Core products
0:6 The Niche strategy is the best way
Answer 1: New market
Answer 2: Growing market
Answer 3: Matured market
Answer 4: None of the above
Right Answer: 3
Description: Matured market
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0:7 Competitive Advantages is achieved when
Answer : The firm successfully formulates the value creation strategy.
Answer 2: The firm successfully implements the value creation strategy
Answer 3. Other firms are unable to duplicate it or find it too costly to imitate.
Answer 4: All of the above
Right Answer: 4 Description: All of the above
0:8 Which one out of the following, is not a generic strategy as suggested by Michael Porter?
Answer 1 Focus Strategy
Answer 2 Differentiation Strategyу
Answer 3: Cost Leadership Strategy
Answer 4: A Best Cost Provider Strategy
Right Answer: 4
Description: Best-Cost Provider Strategy
0:9 Internal activities in an organization that are performed especially well.
Answer 1 Opportunities
Answer 2: Competencies
Answer 3: Strengthen
Answer 4 Management
Right Answer: 3
Description: Strengths
0:10 The merging of analysis of internal and external factors influencing the organization's
strategy is known as:
(A) Complete Studies.
(B) Organizational Behavior and Theory
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(C) Definitional Analysis
(D) SWOT Analysis
Answer 1 Complete Studies.
Answer 2: Organizational Behavior and Theory
Answer 3: Definitional Analysis
Answer 4: SWOT Analysis
Right Answer: 4
Description: SWOT Analysis
MEDIUM
Q: 1 DMart sells fast moving consumer goods at wholesale prices to retail customers, is a
strategy of?
Answer 1: Market Penetration
Answer 2: Cost Differentiation
Answer 3: Cost Leadership
Answer 4: Market Development
Right Answer: 3
Description: Cost Leadership
Q:2 What is the primary purpose of strategic group mapping in strategic management?
Answer 1: To identify key competitors in the industry
Answer 2: To determine the market share of each competitor
Answer 3: To categorize firms with similar strategic characteristics and competitive positions
Answer 4: To calculate the industry's growth rate
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Right Answer: 3
Description: To categorize firms with similar strategic characteristics and competitive positions
Q:3 ABC Fashion provides early access and exclusive designs to its exclusive clientele,
emphasizing experiences. personalized Which marketing type does this exemplify?
Answer 1: Augmented marketing
Answer 2: Service marketing
Answer 3: Person marketing
Answer 4: Relationship marketing
Right Answer: 4
Description: Relationship marketing
Q:4 SWOT analysis is an evaluation of the organization's strengths and weaknesses and its
opportunities and threats.
Answer 1: external; internal
Answer 2: internal; internal
Answer 3: external; external
Answer 4: A. internal; external
Right Answer: 4
Description: Å internal; external
Q:5 A firm successfully implementing a differentiation strategy would expect:
Answer 1: Customers to be sensitive to price increases.
Answer 2: To charge premium prices.
Answer 3: Customers perceive the product as standard.
Answer 4: To automatically have high levels of power over suppliers.
Right Answer: 2
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Description: To charge premium prices.
Q:6 In Michael Porter's generic strategy emphasizes producing standardized products at a very
low per unit-cost for consumers who are price sensitive.
Answer 1: Cheap leadership
Answer 2: Inferior product leadership
Answer 3: Cost leadership
Answer 4: Cost benefit
Right Answer: 3
Description: Cost leadership
0:7 The sustainability of competitive advantage and a firm's ability to earn profits from its
competitive advantage depends upon:
Answer 1: Durability, reliability, transferability, approximately
Answer 2: Appropriability, durability, transferability, imitability
Answer 3: Transferability, imitability, reliability, approximately
Answer 4: Imitability, durability, reliability, appropriability
Right Answer: 2
Description: Appropriability, durability, transferability, imitability
Q:8 For an actor in Bollywood, his outstanding performance would be a/an
Answer 1: Asset
Answer 2: Strategic Asset
Answer 3: Core competency
Answer 4: Capability
Right Answer: 3
Description: Core competency
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Q:9 The process of creating, maintaining, and enhancing strong, value- laden relationships with
customers and other stakeholder is:
Answer 1: Social marketing
Answer 2: Augmented marketing
Answer 3: Direct marketing
Answer 4: Relationship marketing
Right Answer: 4
Description: Relationship marketing
Q:10 Best Cost provider strategies:
Answer 1: Seek to attract buyers on the basis of charging low price for low qualityÄ
Answer 2: Aim at giving customers less value for more money
Answer 3: Seek to attract buyers on the basis of charging high price for high qualityÅ
Answer 4: Aim to giving customers low cost and better quality
Right Answer: 4
Description: Aim to giving customers low cost and better quality
Q:11 Best-cost provider strategy involves providing customers more value for the money by
emphasizing on:
Answer 1: Low cost and low-quality difference
Answer 2: Low cost and better- quality difference
Answer 3: High cost and low-quality difference
Answer 4: High cost and better- quality difference
Right Answer: 2 Your Answer:
Description: Low cost and better- quality difference
Q:12 External opportunities and threats are usually:
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Answer 1: the minor cause of organizational demise or success
Answer 2: least important for CEOs and the board of directors
Answer 3: not as important as internal strengths and weaknesses
Answer 4: largely uncontrollable activities outside the organization
Right Answer: 4
Description: largely uncontrollable activities outside the organization
Q:13 How can strategic group mapping help a company in its strategic planning?
Answer 1: By identifying opportunities for cost-cutting
Answer 2: By highlighting areas for vertical integration
Answer 3: By revealing gaps in the market that can be exploited
Answer 4: By determining the best pricing strategy for a product
Right Answer: 3
Description: By revealing gaps in the market that can be exploited
Q:14 An airline operator is providing special lounge at major airports for its frequent flyers. This
marketing technique is known as :-
Answer 1: Relationship Marketing
Answer 2: Augmented Marketing
Answer 3: To Social Marketing
Answer 4: Synchro Marketing
Right Answer: 1
Description: Relationship Marketing
Q:15 The activity of identifying the strongest and weakest companies is known as:
Answer 1: A Strategic Audit
Answer 2: Portfolio Analysis
Answer 3: Strategic Surveillance
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Answer 4: Strategic Group mapping
Right Answer: 4
Description: Strategic Group mapping
Q:16 In case of home appliances, the concept of offering additional customer services. and
benefits to customers, can considered as the be
Answer 1: Social Marketing
Answer 2: Augmented Marketing
Answer 3: Concentrated Marketing.
Answer 4: Differential Marketing
Right Answer: 2
Description: Augmented Marketing
Q:17 When two or more firms are located close together on a strategic group map, what does
this indicate?
Answer 1: They are direct competitors with similar strategies.
Answer 2: They are in completely different industries.
Answer 3: They are pursuing unrelated diversification.
Answer 4: They have a low market share and profitability.
Right Answer: 1
Description: They are direct competitors with similar strategies
Q:18 The goal of SWOT analysis is to the organization's opportunities and strengths while its
threats and weaknesses. its
Answer 1: avoid; neutralizing; correcting
Answer 2: exploit; neutralizing: correcting
Answer 3: avoid; capitalizing; neutralizing
Answer 4: exploit; avoiding; ignoring
Right Answer: 2
Description: exploit; neutralizing; correcting
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0:19 What are the three different bases given by Michael Porter's Generic Strategies to gain
competitive advantage?
Answer 1: differentiation, integration and compensation
Answer 2: integration, focus and differentiation
Answer 3: compensation, integration and focus
Answer 4: cost leadership, differentiation and focus
Right Answer: 4
Description: cost leadership, differentiation and focus
Q: 20 'Strategic group mapping' helps in-
Answer 1: Identifying the strongest rival companies
Answer 2: Identifying weakest rival companies
Answer 3: Identifying weakest and strongest rival companies
Answer 4: None of the above
Right Answer: 3
Description: Identifying weakest and strongest rival companies
DIFFICULT
Question - 1: Match the core competencies for the following industry:
1. Automobile Industry A. Styling, efficient dealer network performance new policies
2. Food Processing B. Reputation, innovative new policies
3. Life Insurance C. Right mix available in each store, pricing
4. Super Market Industry D. Health Aspects, New Product development, good distribution
channel
Answer - 1 : 1-A, 2-D, 3-B, 4-C
Answer - 2: 1-D, 2-A, 3-C, 4-B
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Answer - 3: 1-A, 2-B, 3-C, 4-D
Answer - 4 1-B, 2-C, 3-D, 4-A
Right Answer: 1
Description: 1-A, 2-D, 3-B, 4-C
Question - 2: Perscopter, a manufacturer of private helicopters, offers unique features that fulfill the
demands of a narrow market. It competes in the market based on its uniqueness and custom-oriented
private helicopters. Perscopter provides a limited number of high-end helicopters with ultimate
features. Which business strategy is being followed by Perscopter?
Answer 1: Differentiation
Answer - 2: Focused cost leadership
Answer - 3 Cost leadership.
Answer - 4: Focused differentiation
Right Answer: 4
Description: Focused differentiation
Question - 3: An advertising company has 12 staff - 4 of whom are joint owners. It has a strong client
base across many industries such as healthcare, training, publishing and sports. However, it has never
taken working capital management and the financial side of the business seriously even to the extent
that it can never be sure that the clients are billed properly. It now has a chance to bid for a new large,
national contract from a major company.
Match the columns in respect of the following elements of SWOT analysis:
Column A Column B
1. Tender for a major contract a. Strength
2. Rival companies in the industry trying to pitch b. Weakness
for and recruit the key staff
3. Well diversified client portfolio C. Opportunities
4. High level of receivables D. Threats
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Answer - 1 : 1-a, 2-b, 3-c, 4-d
Answer - 2: 1-c, 2-d, 3-a, 4-b
Answer - 3: 1-c, 2-b, 3-a, 4-b
Answer - 4 : 1-a, 2-d, 3-c, 4-b
Right Answer : 2
Description: 1-c, 2-d, 3-a, 4-b
Q:4 Trekking Poles is a small company based in the Himalayan ranges in India. It is known in the
region for its hill walking sticks. Trekking Poles sell specialist walking equipment in their small
shop at the foot of the mountains. They do not have a website yet have been able to sell their
products at premium prices. Which of the following one of Porter's generic strategies best fits
Trekking Poles?
Answer 1: Cost leadership
Answer 2: Differentiation
Answer 3: Focused cost leadership
Answer 4: Focused differentiation
Right Answer: 4
Description: Focused differentiation
Q:5 Indian Company plans to offer snacks during travel through ropeways and two free movie
tickets on completion of the trip. This marketing technique is known as
Answer 1: Augmented marketing
Answer 2: Synchro marketing
Answer 3: Social marketing
Answer 4: Demarketing
Right Answer: 1
Description: Augmented marketing
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Q:6 Big retail stores (e.g., Big Bazaar) and supermarkets have special core competencies in the
areas of:
A. Merchandising
B. Securing supplies at lower cost
C. In-house activity management
D. Computerized stock ordering and billing systems
E. Own brand labels
Select the correct options:
Answer 1: A, C, D
Answer 2: B, D, E
Answer 3: A, B, C, D
Answer 4: A, B, D, E
Right Answer: 4
Q:7 Sanjivni Pharmaceuticals Limited manufacturers a cough syrup Zenus. It has modified Zenus
syrup, claiming that the Zenus cough syrup is sugar-free, and the consumer will not feel
drowsiness after consuming this cough syrup. Consumers found this product as unique. The
sales of Zenus cough syrup have increased as expected. The price of this sugar-free syrup is
higher by 20% than the earlier syrup. Identify the strategy adopted by Sanjivni Pharmaceuticals
Limited.
Answer 1: Focus strategy
Answer 2: Best cost provider strategy
Answer 3: Differentiation strategy
Answer 4: Cost leadership strategy
Right Answer: 3
Description: Differentiation strategy
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0:8 Tomtom a sneaker brand wanted to understand their competitive landscape and thus were
looking for the weakest competitors to buy them and thereby decrease competition. Which of the
following will be most helpful for them to begin with their plans?
Answer 1: Mergers and Acquisition Planning
Answer 2: BCG Growth Matrix
Answer 3: Strategic Group Mapping
Answer 4: GE Stop Light Matrix
Right Answer: 3
Description: Strategic Group Mapping
Q:9 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. innovation Rapid product
Which of the above is true:
Answer 1: (1) and (2)
Answer 2: (1) and (3)
Answer 3: (2) and (3)
Answer 4: (1), (2) and (3)
Right Answer: 4 Description: (1), (2) and (3)
Q:10 A famous restaurant enjoys full occupancy during the lunch and dinner time for last few
months. In fact, many customers go back as they have to wait for their turn. Between 15:00 hours
to 18:00 hours, the occupancy rate is near to nil. To raise the footfalls of customers during this
lean time, the owner offers a discount of 20% on total bill if a customer comes in these 3 hours.
Which type of marketing strategy does the restaurant follow to attract the customers in the lean
period?
Answer 1: Differential Marketing
Answer 2: Synchro-marketing
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Answer 3: Place Marketing
Answer 4: Concentrated Marketing
Right Answer: 2
Description: Synchro-marketing
Q:11 A renowned coffee chain offers a loyalty program where customers earn points for every
purchase, which can be redeemed for free drinks or snacks. This marketing technique is known
as:
Answer 1: Augmented Marketing
Answer 2: Synchro Marketing
Answer 3: Social Marketing
Answer 4: Relationship Marketing
Right Answer: 4
Description: Relationship Marketing
Q:12 Adolf Play Sportswear sells a variety of sportswear under its own well-known brand name.
In order to have detailed strategies for the company's objectives, which of the following cannot
be considered as a "Strength" as per SWOT analysis?
Answer 1: High market share
Answer 2: Excellent brand awareness
Answer 3: Strong revenue growth (compared to industry average of 10%)
Answer 4: Possibility of new product to be introduced in the market for new sport at the world
championship.
Right Answer: 4
Description: Possibility of new product to be introduced in the market for new sport at the world
championship.
Q:13 ABC is a marketing consultancy business. ABCas most recent corporate analysis has
identified that three new businesses have recently entered its market and started aggressively
targeting ABC’s key client. As part of ABCs corporate analysis, these three new businesses
would be a -
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Answer 1: Strength
Answer 2: Opportunity
Answer 3: Weakness
Answer 4: Threat
Right Answer: 4
Description: Threat
Q:14 AB is a supermarket chain operating in North India. Currently, AB is seeking to enhance its
shareholder value as its main objective. Therefore, the SWOT analysis can be used to identify
how the business can build on its strengths and take corrective action for its weakness.
Match the columns in respect of the following elements of SWOT analysis:
(i) Well-established in the North (A) Strength
(ii) Not much opportunity for further organic growth in the North (B) Weakness
(iii) Reduction in competitiveness as well as losing market share due (C) Opportunities
to the recent merge of two rivals
(iv) Possibility of increasing the use of debt, in turn resulting in lower (D) Threats
costs as debt is cheaper than equity
Answer 1: (i) A (ii) B (iii) D (iv) C
Answer 2: (i) C (ii) D (iii) A (iv) B
Answer 3: (i) A, (ii) C (iii) В (iv) D
Answer 4: (i) C (ii) D (iii) B (iv) A
Right Answer: 1
Description: (i) A, (ii) B (iii) D (iv) C
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Q:15 XYZ is a high-end department store chain that is struggling to survive. A number of other
department store chains compete with it and are also struggling. How should XYZ best analyze
the industry in order to work out how to increase performance?
Answer 1: Identify groups of department stores that compete in a similar way.
Answer 2: Show the competitive pathways that various competitors will adopt.
Answer 3: Determine the combined effect of all the storeså strategies. different
Answer 4: Ignore key success factors that affect discount stores,
Right Answer: 1
Description: Identify groups of department stores that compete in a similar way.
Q:16 Dharam, an organic farming expert, was consulting a group of farmers to build a
sustainable brand of their corn produce. He suggested following the strategy of the biggest
player in this business. Which of the following can be used to identify such a player?
Answer 1: BCG Matrix
Answer 2: ADL Matrix
Answer 3: Dominant Force Analysis of the Industry
Answer 4: Strategic Group Mapping
Right Answer: 4
Description: Strategic Group Mapping
Q:17 We have heard countless, heartbreaking stories from companies that are facing immense
pressure on their cash flow due to the economic crisis brought on by the COVID-19 pandemic. To
adapt to the changing environment, companies should undertake SWOT analysis. Which of the
following is a "Threat" affecting the companies?
Answer 1: Customers are likely to cut back on discretion any expenditure and may move to lower cost
rivals
Answer 2: Loss of key staff
Answer 3: Tender for new client
Answer 4: Both a & b
Right Answer: 4
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Description: Both a & b
Q:18 Trekking Poles is a small company based in the Himalayan ranges in India. It is known in
the region for its hill walking sticks. Trekking Poles sell specialist walking equipment in their
small shop at the foot of the mountains. They do not have a website yet have been able to sell
their products at premium prices. Which of the following one of Porter's generic strategies best
fits Trekking Poles?
Answer 1: Cost leadership
Answer 2: Differentiation
Answer 3: Focused cost leadership
Answer 4: Focused differentiation
Right Answer: 4
Description: Focused differentiation
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Chapter 4: Strategy Choice
SIMPLE
Q:1 Merger of two organizations that are operating in the same industry but at different stages of
production and distribution system is called:
Answer 1: Horizontal Merger
Answer 2: Vertical Merger
Answer 3: Co-generic Merger
Answer 4: Conglomerate Merger
Right Answer: 2
Description: Vertical Merger
Q:2 Conglomerate diversification is another name for which of the following?
Answer 1: Related diversification
Answer 2: Unrelated diversification
Answer 3: Portfolio diversification
Answer 4: Acquisition diversification
Right Answer: 2
Description: Unrelated diversification
Q:3 Stability strategy is a strategy.
Answer 1: SBU level
Answer 2: Corporate level
Answer 3: Business level
Answer 4: Functional level
Right Answer: 2
Description: Corporate level
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Q:4 In context to BCG matrix, which of the following statements is not correct?
Answer 1: The BCG assumes that all products will grow and mature.
Answer 2: The BCG can be used to examine a companyâs current product portfolio.
Answer 3: A company with only cash cows and dogs has limited long-term prospects.
Answer 4: All of the above
Right Answer: 1
Description: The BCG assumes that all products will grow and mature.
Q:5 In the GE Matrix, which axis represents industry attractiveness?
Answer 1: Horizontal axis
Answer 2: Vertical axis
Answer 3: Diagonal axis
Answer 4: Radial axis
Right Answer: 2
Description: Vertical axis
Q:6 Dogs in BCG Matrix can be minimized through?
Answer 1: Converting to Cash Cows
Answer 2: Liquidating or Divesting
Answer 3: Foreign Direct Investment Opportunity
Answer 4: Bad Debt Writing off
Right Answer: 2
Description: Liquidating or Divesting
Q:7 Diversification primarily helps to:
Answer 1: Reduce competition
Answer 2: Reduce risk
Answer 3: Reduce taxes
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Answer 4: Reduce costs
Right Answer: 2
Description: Reduce risk
Q:8 Which strategy is implemented after the failure of the turnaround strategy?
Answer 1: Å Expansion strategy
Answer 2: Diversification strategy
Answer 3: Divestment strategy
Answer 4: Growth strategy
Right Answer: 3
Description: Divestment strategy
MEDIUM
Q:1 Retrenchment strategy in the organization can be explained as-
Answer 1: Reducing trenches (gaps) created between individuals.
Answer 2: Divesting a major product line or market.
Answer 3: Removal of employees from job through the process of reorganization.
Answer 4: Removal of employees from job in one business to relocate them in other businesses.
Right Answer: 2
Description: Divesting a major product line or market.
Q:2 The business news anchor said that "chillflix's dead business is worth more than alive".
What did she hint at?
Answer 1: Restructuring Business
Answer 2: Liquidation Strategy
Answer 3: Business Process Re- engineering
Answer 4: Divestment
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Right Answer: 2
Description: Liquidation Strategy
Q:3 One of the primary advantages of diversification is sharing core competencies. In order
diversification to for be most successful, it is important that
Answer 1: The target market is the same, even if the products are very different.
Answer 2: The products use similar distribution channels.
Answer 3: The methods of production are the same.
Answer 4: The similarity required for sharing core competencies must be in the value chain, not in the
product.
Right Answer: 4
Description: The similarity required for sharing core competencies must be in the value chain, not in the
product.
Q:4 What is the significance of businesses located in the "Invest/Grow" quadrant of the GE
Matrix?
Answer 1: They have low industry attractiveness and competitive position.
Answer 2: They require further analysis and consideration for investment.
Answer 3: They are well-established cash cows.
Answer 4: They should be divested immediately.
Right Answer: 2
Description: Businesses located in the "Invest/Grow" quadrant of the GE Matrix have high industry
attractiveness but may have varying competitive positions. They require further analysis and
consideration for potential investment to capitalize on their growth potential.
0:5 In the ADL Matrix, which quadrant represents businesses with high market attractiveness
and a strong competitive position?
Answer 1: Build
Answer 2: Harvest
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Answer 3: Divest
Answer 4: Maintain
Right Answer: 1
Description: In the ADL Matrix, the "Build quadrant represents businesses with high market
attractiveness and strong competitive positions. These businesses have the potential for growth and
should be invested in to maximize their potential..
0:6 The most probable time to pursue a harvest strategy is in a situation of
Answer 1: High growth
Answer 2: Decline in the market life. cycle
Answer 3: Strong competitive advantage
Answer 4: Mergers and acquisitions
Right Answer: 2
Description: Decline in the market life cycle
0:7 If suppliers are unreliable or too costly, which of these strategies. may be appropriate?
Answer 1: Horizontal integration
Answer 2: Backward integration
Answer 3: Market penetration
Answer 4: Forward integration
Right Answer: 2
Description: Backward integration
Q:8 What refers to a strategy of seeking ownership of taking over a competitor's product?
Answer 1: Backward integration
Answer 2: Forward integration
Answer 3: Concentric diversification
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Answer 4: Horizontal integration
Right Answer: 4
Description: Horizontal integration
Q:9 A company that produces and sells athletic shoes may acquire merge with another athletic
shoe manufacturer in order to increase their market share and reduce competition is an example
of-
Answer 1: Horizontal integration
Answer 2: A Backward integration
Answer 3: Market penetration
Answer 4: A Forward integrationÅ Å ÃA
Right Answer: 1
Description: Horizontal integration
Q:10 Vertical Integration may be beneficial when-
Answer 1: Lower transaction costs and improved coordination are vital and achievable through vertical
integration.
Answer 2: Flexibility is reduced, providing a more stationary position in the competitive environment.
Answer 3: Various segregated specializations will be be combined.
Answer 4: The minimum efficient. scales of two corporations are different
Right Answer: 1
Description: Lower transaction costs and improved coordination are vital and achievable through vertical
integration.
Q:11 What is the strategic approach for businesses in the "Harvest" quadrant of the ADL Matrix?
Answer 1: Invest for growth
Answer 2: Maximize short-term cash flow
Answer 3: Divest immediately.
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Answer 4: Maintain current operations
Right Answer: 2
Description: The strategic approach for businesses in the "Harvest quadrant of the ADL Matrix is to
maximize short-term cash flow. These businesses may have declining market attractiveness or
competitive positions, so the focus is on extracting maximum value before potential divestment.
0:12 What is the primary focus of managing "Stars" in the BCG Matrix?
Answer 1: Invest heavily to maintain market leadership
Answer 2: Harvest cash flow
Answer 3: Consider divestment
Answer 4: Maintain the status quo
Right Answer: 1
Description: The primary focus for "Stars" in the BCG Matrix is to invest heavily in order to maintain or
increase market share and leadership. This is because Stars have high growth potential and should be
nurtured to become future Cash Cows.
Q:13 An organization diversifies in backward sequence in the product chain and enters specific
product/process to be used in existing products. It is:
Answer 1: Forward diversification,
Answer 2: Vertical diversification.
Answer 3: Horizontal diversification.
Answer 4: Reactive diversification.
Right Answer: 2
Description: Vertical diversification.
Q:14 Which quadrant of the BCG Matrix represents businesses or products with low market
share in a slow- growing market?
Answer 1: Stars
Answer 2: Cash Cows
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Answer 3: Question Marks
Answer 4: Dogs
Right Answer: 4
Description: Dogs in the BCG Matrix represent businesses or products with a low market share in a
slow-growing market. They typically generate limited profits and are not expected to show significant
growth.
Q:15 A rubber manufacturer starts making shoe soles and gum can be termed as?
Answer 1: Conglomerate Diversification
Answer 2: Concentric Diversification
Answer 3: Horizontal Integration
Answer 4: Vertical Integration
Right Answer: 2
Description: Concentric Diversification
Q:16 Match the following:
Question Answer
(i) Retrenchment strategy 1. Retrenchment may be done either internally or externally.
(ii) Divestment strategy 2. Divesting a major product line or market.
(iii) Turnaround strategy 3. Involves the sale or liquidation of a portion of a
business.
Answer 1: i-1, ii-2, iii-3
Answer 2: i-3, ii-2, iii-1
Answer 3: i-2, ii-3, iii-1
Answer 4: i-3, ii-1, iii-2
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Right Answer: 3
Description: i-2, ii-3, iii-1
DIFFICULT
Q:1 Spark Pvt. Ltd., an automobile seat manufacturing company has been witnessing superior
growth compared to its competitors due to management's greater emphasis quality of
production. In the previous Board Meeting, the management has decided to expand the existing
business. The CEO will be travelling to south-east Asia and Africa for identifying new
geographical places and new product dimensions and will try to establish new distribution
channels to attract new customers abroad. Based on the Igor Ansoff's product market growth
matrix, identify which of the growth strategy Strategy the company is employing in the current
case.
Answer 1: Market penetration.
Answer 2: Product development
Answer 3: Market development
Answer 4: Diversification
Right Answer: 3
Description: Market development
Q:2 The Specialist Clothing Company (SCC) Is a manufacturer of a wide range of clothing.
Fashion is one of the five divisions of SCC. Fashion is operating in a market with high growth
and is al market leader. By the next year, it is predicted to have 10% of the market share in
growing market. Fashion should be classified as which of the following according to the BCG
matrix.
Answer 1: Star
Answer 2: Dog
Answer 3: Cash cow
Answer 4: Question mark
Right Answer: 1
Description: Star
0:3 Mixfix was having a tough time with its operations and wanting to restructure itself from
scratch. For this, they consult a veteran in business strategy, Mrs. Sunita K, who post analysis of
their business said, "your dead business is worth more than alive". What did Mrs. Sunita hint at?
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Answer 1: Restructuring Business
Answer 2: Liquidation
Answer 3: Business Process Re- engineering
Answer 4: Divestment
Right Answer: 2
Description: Liquidation
0:4 Sumedha has a home-grown brand which makes traditional lehengas. She thought of
expanding her business and added linen jackets and cotton trousers to her product line. Which
strategy is she working on?
Answer 1: Backward integration
Answer 2: A Intensification
Answer 3: Diversification
Answer 4: Horizontal Diversification
Right Answer: 2
Description: Intensification
Q:5 Sanjay guided the team of young entrepreneurs to hold the current position in the market till
they get a big opportunity. What could be their business termed as basis Sanjay's advice?
Answer 1: Question Mark
Answer 2: Cash Cow
Answer 3: Star
Answer 4: Dog
Right Answer: 1
Description: Question Mark
0:6 Freshy Drinks provides fruit juices to a number of super market chains that sell them under
their own label. Its marketing manager explains, 'We' have got a large number of products. Our
freshly squeezed orange juice is doing fine (high market share). The market for orange juice
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appears to be matured (low growth). We've got advanced production and bottling equipment and
long-term contracts with some of the major growers.
Which position best fits the "orange juice product as per BCG matrix?
Answer 1: Cash cow
Answer 2: Question mark
Answer 3: Star
Answer 4: Dog
Right Answer: 1
Description: Cash cow
0:7 Nom-Nom is a fast-food brand and has been facing a lot of competition from American
brands and has decided to NOT go very aggressive but to just preserve market share? Which of
the strategy Nom-Nom is following?
Answer 1: Build
Answer 2: Hold
Answer 3: Harvest
Answer 4: Divest
Right Answer: 2
Description: Hold
Q:8 Hupo a honey brand decided to start a new brand for making honey ginger candies to meet
the rising demand. Identify their growth strategy?
Answer 1: Conglomerate Diversification
Answer 2: Concentric Diversification
Answer 3: Vertical Integration
Answer 4: Horizontal Integration
Right Answer: 2
Description: Concentric Diversification
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0:9 Stylish Fabric Ltd., a clothes manufacturer is buying up a chain of retail outlets to
differentiate its clothes. from those of its competitors through branding. This gives an
opportunity for higher margins. Stylish Fabric Ltd. will also be able to produce clothes as the
shop demands them (JIT) leading to reductions in inventory levels.
Which strategy has Stylish Fabric Ltd. adopted?
Answer 1: Backward integration
Answer 2: Forward integration
Answer 3: Conglomerate diversification
Answer 4. Horizontal integrated diversification
Right Answer: 2
Description: Forward integration
Q:10 You have been appointed as a strategic manager at ABC Company, which is currently
facing a situation where one of its products has entered the maturity stage of its Product Life
Cycle (PLC). The company has made a deliberate decision to maintain its existing business
operations and is content with achieving incremental growth for this product aligns with which
of the following strategies?
Answer 1: Expansion strategy
Answer 2: Stability strategy
Answer 3: Retrenchment strategy
Answer 4: Combination strategy
Right Answer: 2
Description: Stability strategy
0:11 A tea farm owners plan to open tea cafes in tourist spots and to sell their own premium tea
to build a brand. Which of the following can this be termed as?
Answer 1: Backward Integration
Answer 2: Forward Integration
Answer 3: Diversification
Answer 4: Horizontal Integration
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Right Answer: 2
Description: Forward Integration
0:12 Beta Company, a car manufacturer is buying supplier that it gets a dedicated supplier with
both guaranteed quality and price. The material could be manufactured when required by Beta
Company leading to lower inventory levels.
Which strategy has Beta Company adopted?
Answer 1: Backward integration
Answer 2: Forward integration
Answer 3: Conglomerate diversification
Answer 4: Horizontal integrated diversification
Right Answer: 1
Description: Backward integration
Q:13 XYZ Corporation is a multinational conglomerate operating in various industries. They have
a diverse portfolio businesses, including of a leading consumer electronics division, an
e-commerce platform, a mature industrial machinery division, and a newly established growing
and software development unit. Which division of XYZ Corporation would most likely be
classified as a "Star" in the BCG Growth-Share Matrix?
Answer 1: Consumer Electronics Division
Answer 2: E-commerce Platform
Answer 3: Industrial Machinery Division
Answer 4: A Software Development Unit
Right Answer: 4
Description: Software Development Unit
Q:14 Baba Pvt Ltd has seventeen factories, nine of which they re recently gave to other
producers on lease. This has Increased their cash inflows to a great extent, and they are
enjoying this surplus by investing the same in financial assets. Such a strategy can be termed as
which of the following?
Answer 1: Divest
Answer 2: Harvest
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Answer 3: Hold
Answer 4: Build
Right Answer: 2
Description: Harvest
Q:15 T Ltd. is a Delhi based super market, which has grown from a position where 30 years ago it
had a revenue of around 50 crores p.a. to position today where revenue exceeds 5000 crores p.a.
and profit exceed 1000 crores p.a. It has achieved this growth through a combination of
strategies many of which can be plotted on to the Ansoff matrix?
New products Existing products
Existing markets A C
New markets B D
i. Expansion into clothing and electrical sales
ii. 24-hour opening
iii. Selling its products on internet
iv. Overseas expansion
Answer 1: A(ii) D-(ii) B-(iii) C-(iv)
Answer 2: B-(i) C-(ii) A-(iii) D-(iv)
Answer 3: C-(1), A-(ii) D-(iii) B-(iv)
Answer 4: D-(1) B-(ii) C-(iii) A-(iv)
Right Answer: 3
Description: C-(i), A-(ii) D-(iii) B-(iv)
Q:16 Catalyst Polymers, a textile producing firm, has witnessed unprecedented sales growth in
the last few years due to favorable market conditions abroad. As a result, the company
diversified Its activities to Chemical Manufacturing, Steel Forging and Metal Dye Manufacturing.
The investment in steel forging in particular has not been successful due to strict environmental
laws enacted by the Government. The saId strategic business unit (SBU) though generates
enough cash to sustain but does not have much future and sometimes requires cash for
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survival. Consequently, the management has engaged an expert in the field to help them classify
the SBUs. Employing the Boston Consulting Group (BCG) Growth-Share Matrix, the expert
advised the company to disinvest or liquidate Steel Forging SBU. Classify the Steel Forging SBU
into the most appropriate matrix.
Answer 1: Star
Answer 2: Cash cow
Answer 3: Question mark
Answer 4: Dog
Right Answer: 4
Description: Dog
Q:17 General public is discerning from buying air conditioning units based on the Health
Ministry guidelines regarding emergence of a contagious viral pandemic. Consequently, Nebula
Pvt Ltd, a manufacturer of evaporation. coils used in air conditioning units has faced significant
loss in working capital due to sharp fall in demand. The company conducted financial
assessment and developed a workable action plan based on short and long term financial needs.
But for immediate needs, an emergency plan has been implemented. It includes selling scrap,
asset liquidation and overheads cost reduction. Further, to avoid any such untoward event in
future, they plan to diversify into newer business areas along with its core business. Identify the
strategy opted by M/s. Nebula Pvt Ltd?
Answer 1: Retrenchment strategy.
Answer 2: Liquidation strategy
Answer 3: Turnaround strategy
Answer 4: Divestment strategy
Right Answer: 3
Description: Turnaround strategy
Q:18 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
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From the combinations given below select a correct alternative:
Answer 1: (i), and (ii)
Answer 2: (i) and (iii)
Answer 3:(ii) and (iii)
Answer 4: (i) (ii) and (iii)
Right Answer: 4
Description: (i) (ii) and (iii)
Q:19 You have been appointed as a strategic manager at ABC Company, which is currently
facing a situation where one of its products has entered the maturity stage of its Product Life
Cycle (PLC). The company has made a deliberate decision to maintain its existing business
operations and is content with achieving incremental growth for this product aligns with which
of the following strategies?
Answer 1: Expansion strategy
Answer 2: Stability strategy
Answer 3: Retrenchment strategy
Answer 4: Combination strategy
Right Answer: 2
Description: Stability strategy
Q: 20 A beverage company has more than 500 soft drink brands, but none of them is anywhere
close to its premium brand One Sip in awareness, revenue and profits. As per BCGs Matrix, One
Sip brand for the beverage company is?
Answer 1: Star
Answer 2: Dog
Answer 3: Cash cow
Answer 4: Question mark
Right Answer: 3 Description: Cash cow
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Chapter 5: Strategy Implementation And Evaluation
SIMPLE
0:1 Which one is not a type of strategic control?
Answer 1: Operational control
Answer 2: Strategic surveillance
Answer 3: Special alert control
Answer 4: Premise control
Right Answer: 1
Description: Operational control
0:2 Mckinsey's 7-s framework consists of:
Answer 1: Structure, Strategy, Software, Skills, Styles, Staff and Supervision
Answer 2: Structure, Strategy, Systems, Skills, Styles, Syndication and Shared values
Answer 3: Structure, Strategy, Systems, Skills, Steering power,
Styles and Shared values Answer 4: Structure, Strategy,
System, Skilla, Staff, Shared values, Style
Right Answer: 4
Description: System, Structure, Strategy, System, Skills, Staff, Shared values, Style
0:3 In which type of organization are Strategic Business Units (SBUS) commonly found?
Answer 1: Sole proprietorships
Answer 2 One-business organizations
Answer 3: Non-profit organizations
Answer 4: Multi-business organizations
Right Answer: 4
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Description: Multi-business organizations
0:4 leadership style may be appropriate turbulent environment.
Answer 1: Transactional
Answer 2: Transformational
Answer 3: Autocratic
Answer 4: None of these.
Right Answer: 2
Description: Transformational
0:5 Corporate culture refers to:
Answer 1: Companyälls values and beliefs
Answer 2: A Companyällis business
principles Answer 3: Internal work environment
Answer 4: All the above
Right Answer: 4
Description: All the above
0:6 Which one is NOT a type of strategic control?
Answer 1: Operational control
Answer 2: Strategic surveillance
Answer 3: Special alert control
Answer 4: Premise control
Right Answer: 1
Description: Operational control
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MEDIUM
Q:1 Which of the following situations will most likely suit a transformational leader?
Answer 1: An organization that is in trouble
Answer 2: A growing organization
Answer 3: An organization in a stable environment
Answer 4: An organization at maturity stage of product life cycle
Right Answer: 1
Description: An organization that is in trouble
0:2 What is the second phase of Matrix. structure proposed by Davis and Lawrence?
Answer 1: Cross functional task forces
Answer 2: Product/brand management
Answer 3: Cross fertilized projects
Answer 4: Mature matrix
Right Answer: 2
Description: Product/brand management
0:3 Systematic and continuous monitoring of the business environment to verify the accuracy of
assumptions on which strategy is built is achieved by?
Answer 1: Premise Control
Answer 2: Special Alert Control
Answer 3: Implementation Control
Answer 4: Strategic Surveillance
Right Answer: 1
Description: Premise Control
Q:4 A corporation organized in a network. structure is often called-
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Answer 1: Virtual organization
Answer 2: Hierarchical organization
Answer 3: Structured organization
Answer 4: Å Simple organization
Right Answer: 1
Description: Virtual organization
0:5 When there is impact of strategy implementation on strategy formulation it can be referred
as?
Answer 1: Backward Linkages
Answer 2: Forward Linkages
Answer 3: Vertical Linkages
Answer 4: Horizontal Linkages
Right Answer: 1
Description: Backward Linkages
Q:6 Which of the following is more radical organization design and is also called as
non-structure which virtually eliminates in house business functions and outsources many of
them?
Answer 1: Network Structure
Answer 2: Strategic Business Unit
Answer 3: Hourglass Structure
Answer 4: Divisional Structure
Right Answer: 1
Description: Network Structure
Q:7 Compliance, Identification and Internalization are the three processes involved in:
Answer 1: Refreezing
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Answer 2: Defreezing
Answer 3: Changing behavior patterns
Answer 4: Breaking down old attitudes
Right Answer: 3
Description: Changing behavior patterns
0:8 Which is true Hourglass Structure? for Organization
Answer 1: Wide at the bottom and widest at the top.
Answer 2: Middle level managers are generalist and perform wide variety of tasks
Answer 3: Decision making is slow
Answer 4: Difficult to keep motivation level high among lower- level staff
Right Answer: 2
Description: Middle level managers are generalist and perform wide variety of tasks.
0:9 Which of the following would be chosen by the core strategist to implement operational
control:
Answer 1: Premise Control
Answer 2: Special Alert Control
Answer 3: Implementation Control
Answer 4: A Budgetary Control
Right Answer: 4
Description: Budgetary Control
Q:10 Technique to cope up with sudden change in Government, natural calamities, terrorist
attacks, industrial disasters etc. is called
Answer 1: Special Alert Control
Answer 2: Strategic Surveillance
Answer 3: Premise Control
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Answer 4: Implementation Control
Right Answer: 1
Description: Special Alert Control
0:11 As a strategist, what is your understanding of how strategies are put into action?
Answer 1: Strategies are statements of Intent realized through Implementation.
Answer 2: Strategies are statements of Intent that are automatically activated.
Answer 3: Strategies, by themselves, lead into action.
Answer 4: By strategy formulation and not through implementation.
Right Answer: 1
Description: Strategies are statements of Intent realized through Implementation.
Q:12 Which of the following situation will most likely suit a transformational leader?
Answer 1: A An organization that is in trouble
Answer 2: A growing organization
Answer 3: An organization in a stable environment
Answer 4: An organization at maturity stage of product life cycle
Right Answer: 1
Description: An organization that is in trouble
Q:13 An organizational structure with constricted middle level is:
Answer 1: Divisional structure
Answer 2: A Network structure
Answer 3: Hourglass structure
Answer 4: Matrix structure
Right Answer: 3
Description: Hourglass structure
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DIFFICULT
Q:1 Abhishek a freelancer writes promotional materials. He decided to collaborate without
requiring the physical presence of an employee, and hired virtual assistants to transcribe voice
mail, update his website, and design PowerPoint graphics. What kind of structure is he using for
his business?
Answer 1: Functional structure
Answer 2: Divisional structure
Answer 3: Network structure
Answer 4: Multidivisional structure
Right Answer: 3
Description: Network structure
Q:2 Swabhaav, a social media marketing firm, introduced an Al based management tool that has
the capabilities of managing teams across functions all while being creative. What is the most
likely organizational structure post this implementation?
Answer 1: Divisional Structure
Answer 2: Matrix Structure
Answer 3: Hourglass Structure
Answer 4: Network Structure
Right Answer: 3
Description: Hourglass Structure
Q:3 Maadhyam, manufacturer a hearing aid recently introduced an Al based management tool
that has the capabilities of managing teams across functions. What could be their new
organizational structure implementation?
Answer 1: Divisional Structure
Answer 2: Matrix Structure
Answer 3: Hourglass Structure
Answer 4: Network Structure
Right Answer: 3
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Description: Hourglass Structure
Q:4 Last year, as a part of the organisational change process, Project Zeta was implemented by
the CTO of Omega Private Limited. Zeta being an Artificial Intelligence enabled tool uses
machine learning technology to speed up operations by transformation of various business
processes and operations across finance, sales, delivery, human resources and other
departments. Likewise, the unfreezing phase of the change process has been successfully
completed by the company and the employees wholly recognize and accept the need for change.
The company now wishes to reassign new patterns of behavior based on the three processes of
compliance, identification and internalization. Kindly identify and mark the correct person who
propounded this
Answer 1: Kurt Lewin
Answer 2: Richard Rumelt
Answer 3: H.C. Kellman
Answer 4: William F Glueck
Right Answer: 3
Description: H.C. Kellman
Q:5 The employees of XYZ Itd 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 implementation focuses effectiveness.
strategy on
(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.
(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?
Answer 1:1, 3 & 4
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Answer 2: 1, 2 & 3
Answer 3: 1, 2 & 4
Answer 4: 1, 2, 3 & 4
Right Answer: 3
Description: 1, 2 & 4
Q:6 Select a distinguishing feature between divisional and functional structure?
Answer 1: Both functional departments and divisional process departments are accountable for profits or
revenues.
Answer 2: Functional departments are not accountable for profits or revenues, whereas divisional
process departments are evaluated on these criteria.
Answer 3: None of functional departments and divisional process departments are accountable for
profits or revenues.
Answer 4: Both the structures are same.
Right Answer: 2
Description: Functional departments are not accountable for profits or revenues, whereas divisional
process departments are evaluated on these criteria.
Q:7 Delta is an organization specializing in Information Technology enabled Services (ITeS) and
Communications business. Last year, the organization had successfully integrated an Artificial
Intelligence (Al) tool named 'Zeus' into the existing ERP system. The Al tool, using Deep
Learning technique, provided a digital leap transformation in various business processes and
operations. It has significantly diminished the role played by specialist managers of the middle
management. This technological tool in addition to saving organizational costs by replacing
many tasks of the middle management has also served as a link between top and bottom levels
in the organization and assists in quick decision making. The skewed middle level managers
now perform cross- functional duties. Which type of organizational structure is the company
transitioning into?
Answer 1: Strategic business unit structure
Answer 2: Matrix structure
Answer 3: Network structure
Answer 4: Hourglass structure
Right Answer: 4
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Description: Hourglass structure
Q:8 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"?
Answer 1: Promoting new ideas throughout the organization
Answer 2: Promoting compliance throughout the organization
Answer 3: Promoting change in process throughout the organization
Answer 4: None of the above
Right Answer: 1
Description: Promoting new ideas throughout the organization
Q:9 TechNo Solutions, a dynamic tech company, is considering a shift in its organizational
structure to enhance efficiency. The management team is evaluating various strategies and
decided to virtually eliminate in-house business functions. Which of the following organizational
structures is TechNo Solutions shifting towards?
Answer 1: Network Structure
Answer 2: Matrix structure
Answer 3: Hourglass Structure
Answer 4: SBU Structure
Right Answer: 1
Description: Network Structure
Q:10 GetWellSoon Limited is a health provider and has only large, edge of town hospitals. It is
considering setting-up additional small city centre clinics capable of treating less-serious day
cases. Which of the following will fall under "Strategy Implementation"?
(1) clinics Acquiring and fitting out
(2) staff Hiring and/or transferring
(3) Publicity, so that patients know where and when to go
(4) Liaison with general practitioners and the main hospitals
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Answer 1: Only (4)
Answer 2: (2) & (4)
Answer 3: (1), (2) & (4)
Answer 4: (1), (2), (3) & (4)
Right Answer: 4
Description: (1), (2), (3) & (4)
Q:11 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
departmental, you are practicing:
Answer 1: Strategic control
Answer 2: Management control
Answer 3: Administrative control
Answer 4: Operations control
Right Answer: 2 Description: Management control
Q:12 Aditya Swaroop is the head of operations of Bindal & Sons private limited. He is focussing
on total or aggregate management functions in the sense of embracing the integrated activities
of a complete department. He assures the resources are obtained and used effectively and
efficiently in the accomplishment of the organisation's objectives. He is practicing as: -
Answer 1: Strategic control
Answer 2: Management control
Answer 3: Administrative control
Answer 4: Operations control
Right Answer: 2
Description: Management control
Q:13 Davis and Lawrence have proposed three distinct phases for development of matrix
structure. These phases are (1) Cross-functional task forces (2) Product/brand management and
(3)______
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Answer 1: Market/external management
Answer 2: Functional matrix
Answer 3: Mature matrix
Answer 4: Internal management
Right Answer: 3
Description: Mature matrix
Q:14 Dr. Raman has been running a nursing home for about twenty two years now, and has
gained enormous name for his benevolence in Balram district of Chhattisgarh. Recently, his
daughter, Dr. Radhika completed her medicine degree from the United States of America and
returned to her hometown to be a part of her father's practice. She has been given the baton to
promote modern medicine and retain the local skilled youth in their practice. However, their
nursing home's skilled youth has been more inclined to E-Commerce employment opportunities.
Dr. Radhika has taken it as a challenge to imbibe the very essence of service in them, by being
employed as nurses and caretakers of the ill. This shall be very crucial in growing the practice as
desired. Which of the following phases of Kurt Lewin's Model of Change will be most challenging
for Dr. Radhika to strategically positioning her father's nursing home?
Answer 1: Compliance
Answer 2: Identification
Answer 3: Internalization
Answer 4: Transition
Right Answer: 3
Description: Internalization
Q:15 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?
Answer 1: No problem
Answer 2: Coordination problem
Answer 3: Technical problem
Answer 4: Behavioral problem
Right Answer: 2
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Description: Coordination problem
Q:16 After an earnest attempt to bring in a strategic change in your organization, you the
operational head of XYZ Itd, succeeded but still your organization couldn't achieve the desired
competitive position in the market. Out of the following what could be the reason?
Answer 1: Strategy Formulation
Answer 2: Strategy Model
Answer 3 3: Strategy Implementation
Answer 4: Strategy Decision
Right Answer: 3
Description: Strategy Implementation
Q:17 After an earnest attempt to bring in a strategic change in your organization, you the
operational head of XYZ Itd, succeeded but still your organization couldn't achieve the desired
competitive position in the market. Out of the following what could be the reason?
Answer 1: Strategy formulation
Answer 2: Strategy model
Answer 3: Strategy implementation
Answer 4: Strategy decision
Right Answer: 3
Description: Strategy implementation
Q:18 J&P, a western wear brand has contracted Pee Kaw marketing firm from Singapore, product
design team working as an outsource company from Mexico and Humans branding company
taking care of its people's operations. What kind of structure is this?
Answer 1: Hourglass Structure
Answer 2: Outsourcing
Answer 3: Network Structure
Answer 4: Tree Branch Structure
Right Answer: 3
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Description: Network Structure
Q:19 The management of Vadakara Limited, hitherto a successful ball valves maker
headquartered in Mumbai, is looking to launch a new SBU for its future forward integration plans
abroad in Sudan. The CEO is now faced with the opportunity- cum-challenge to make this foray
into Sudan a successful but time-bound business enterprise. The CEO has already asked his
India Operations Head to make a study of Sudan's present market conditions and territory
specific laws to enable the setup of a local branch office for the proposed SBU. Meantime, the
HR manager has come across a promising resume of a person on LinkedIn, a social networking
platform on internet, who is currently engaged in a similar Deputy CEO position with another
entity. The management is also in touch with a couple of NRI angel investors based out of
Singapore, to arrange for venture capital that would be required for this venture.
From a strategic perspective, Vadakara currently represented strategic time phase? management
Limited is by which
Answer 1: Strategy formulation phase
Answer 2: Strategy change phase
Answer 3: Strategy implementation phase
Answer 4: Strategy internalization phase
Right Answer: 1
Description: Strategy formulation phase
Q: 20 Anshul joined a telecom company after his MBA and started working as market research
analyst. His job included analyzing industry factors like competitors, suppliers and substitutes.
Which of the strategic controls is he working on?
Answer 1: Strategic Surveillance
Answer 2: Special Alert Control
Answer 3: Premise Control
Answer 4: Benchmarking
Right Answer: 3 Description: Premise Control
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CASE SCENARIO ASSESSMENT
CASE 1
Connect Innovations Pvt. Ltd., a Mumbai-based technology company, is entering the competitive
landscape of the Indian smartphone market under its brand name "Poppy." The company is well aware of
the influx of Chinese manufacturers dominating the smartphone industry. Given the recent global
sentiment shift due to the COVID-19 pandemic, Connect Innovations plans to position Poppy as a
patriotic choice, proudly promoting it as the "Desi" smartphone of India.
The company's strategic arm conducted a thorough industry analysis, revealing that Chinese brands had
completely captured the budget phone segment. However, there was still an untapped opportunity in the
lower segment of smartphones. To address this, Connect Innovations is introducing two models: Poppy
A and Poppy B, priced at 4,499 and 5,499, respectively. Recognizing the risk of imitation by competitors,
Connect Innovations has assembled a team of marketing professionals to devise a strategy. Their
proposed solution is to capitalize on the first-mover advantage by investing significant sums in
advertising and promotions.
Additionally, to safeguard their business from potential disruption, Connect Innovations decided to
expand their product line to include "desi" themed smartphone covers and accessories alongside Poppy
smartphones. They made substantial investments in the manufacturing of these accessories. The
company's investors set a target of achieving annual sales volumes of 15,000 handsets and 70,000
pieces of accessories.
While the accessory sales exceeded expectations, Poppy A and Poppy B did not receive the anticipated
response. As a result, the leadership has decided to shift their focus, scaling back on smartphone
production and concentrating primarily on the accessories business.
With this new direction, the "Desi" tag remains vital for success. Connect Innovations aims to establish
strong barriers to entry for other domestic players. They plan to ramp up production significantly, driving
down unit costs and enabling cost leadership through volume.
Question - 1: Connect Innovations Pvt. Ltd. entered a saturated market of smartphones, after a due
market study of understanding the competitive landscape. Put the below steps in correct sequence of
understanding the competitive landscape.
I. Understand the competitors
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II. Determining strengths and weaknesses of the competitors
III. Identify the competitors
IV. Put all information gathered together
Answer 1: (I), (III), (II), (IV)
Answer - 2: (III), (1), (11), (IV)
Answer 3 (II), (III), (IV), (1)
Answer - 4: (I), (III), (II), (IV)
Right Answer: 2
Description: The correct sequence for understanding the competitive landscape is to first identify the
competitors (III), then understand the competitors (1),
Determine their strengths and weaknesses (II), and finally put all of the information together (1). This
ensures a comprehensive understanding
of the competitive environment.
Question - 2: In which stage of strategic management are annual sales volume objectives especially
important in this case?
Answer - 1 Formulation
Answer - 2: Control
Answer - 3: Evaluation
Answer - 4: Implementation
Right Answer: 4
Description:Annual sales volume objectives are crucial during the implementation stage of strategic
management. This is the phase where the company translates its formulated strategies into actions.
Setting specific sales volume objectives provides a clear target to work towards and helps in evaluating
the success of the implemented strategies.
Question - 3: The decision of Connect Innovations to shift to a new core business with a focus on more
profitable ventures falls under which category of business strategy?
Answer - 1: Retrenchment strategy
Answer - 2: Strategic alliance
Answer - 3: Diversification strategy
Answer - 4: Market development
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Right Answer: 1
Description: A retrenchment strategy involves reducing the scope of business operations, often by
divesting or reducing the focus on certain products or
markets. In this case, Connect Innovations is reducing the scope of smartphone production and
focusing on more profitable accessories. This
aligns with the concept of a retrenchment strategy.
Question - 4: Considering the results from the market, which category of BCG's growth share matrix
does the accessories business of Connect Innovations fall into?
Answer - 1: Star
Answer - 2: Question mark
Answer - 3: Cash cow
Answer - 4 : Dog
Right Answer: 4
Description: The accessories business of Connect Innovations, which has surpassed expectations, can
be categorized as a cash cow in the BCG growth share matrix. Cash cows are products or business units
with high market share in a low-growth market. They generate steady cash flows that can be used to
support other parts of the business.
Question - 5: In phase two of shifting the business focus to peripheral accessories production, Connect
Innovations has planned to implement which barrier to discourage potential competitors?
Answer - 1: Capital requirement
Answer - 2: Product differentiation
Answer - 3: Access to distribution channels
Answer - 4: Economies of scale
Right Answer: 4
Description: By planning to augment production to enormous levels, Connect Innovations aims to benefit
from economies of scale. This allows them to reduce the unit cost of production as the volume
increases, making it difficult for potential competitors to match their cost structure. This acts as a
barrier to entry, creating a competitive advantage based on cost efficiency.
CASE 2
KingLike WLL, a renowned Dubai-based construction company, has carved a niche for itself in the
real estate market by specializing in residential complexes. It's now poised to introduce a
groundbreaking concept called "Vilartment" — a unique blend of private villas and apartments tailored to
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meet the growing demand of married couples seeking to cohabit with their parents, offering spacious
living within a single residential unit.
The company's impressive competitive advantage lies in its substantial land purchasing power, setting it
apart from its rivals. Furthermore, King Like engages top-tier Italian designers, whose exceptional work
is safeguarded by patents, making the replication of KingLike's properties a formidable challenge.
Recognizing the potential of this innovative concept, King Like positions the Vilartment project as a
distinct business unit within its operations. A talented workforce, strategically placed at various levels, is
dedicated to overseeing the unit's functions. The ambitious plan aims to construct approximately 15,000
Vilartments over the next three years, with 50% of them immediately ready for occupancy upon
completion.
The marketing team has taken an ingenious approach, enlisting major Bollywood and Hollywood
celebrities to grace the foundation stone ceremony of the Vilartment, scheduled for next month. This
event will receive extensive coverage from global media outlets, including print and social media
platforms, a move aimed at attracting potential buyers worldwide.
With meticulous planning and efficient teams prepared for execution, the management exudes
confidence in the project's success. The Vilartment initiative aspires to solidify KingLike WLL's position
as a leading global real estate company.
Q:1 Vilartment shall function as a strategic business unit (SBU), being one of the key businesses of the
company. Which of the following is not a characteristic of a strategic business unit?
Answer 1: It is a combination of two or more independent businesses.
Answer 2: The planning for the business is done separately.
Answer 3: It has its own set of competitors.
Answer 4: It has its own manager responsible for strategy and profits.
Right Answer: 1
Description: It is a combination of two or more independent businesses.
0:2 Igor Ansoff gave a framework which describes the intensification options available to a firm. Which
of them did KingLike use for its intensification strategy?
Answer 1: Market penetration
Answer 2: Product development
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Answer 3: Market development
Answer 4: Diversification into new products
Right Answer: 2
Description: Product development
Q:3 Core competency is built on multiple know-hows and is an integration of many resources. As per
C.K. Prahalad and Gary Hamel. KingLike has expert teams and a huge buying capacity. Which amongst
the following is not an area where core competency is identified?
Answer 1: Customer value
Answer 2: Application of competencies
Answer 3: Market development
Answer 4: Competitor differentiation
Right Answer: 3
Description: Market development.
0:4 Different personnel have been deployed at respective levels in the project working as a business
unit. Answer, Divisional managers and staff are a part of which of the following strategic levels in the
organization?
Answer 1: Corporate level
Answer 2: Functional level
Answer 3: Business level
Answer 4: Consultant level
Right Answer: 3
Description: Business level
Q:5 ___________ is the answer to the basic question "what business we are and what we do". Many
businesses fail to conceptualize this, and it requires clarity. The company, however, has clarity on the
same. Fill in the blank with the correct option.
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Answer 1: Vision
Answer 2: Mission
Answer 3: Strategy
Answer 4: Planning
Right Answer: 2
Description : Mission
CASE 3
Hareeyali Pvt. Ltd. is a pioneering company dedicated to transforming corporate spaces into greener
environments through innovative infrastructural designs and products. Established recently, it boasts six
visionary founders. While the company's middle management team consists of just four individuals, over
fifty dedicated professionals operate on the ground, specializing in client relationship management and
delivery coordination.
In this emerging industry, GreenZone Pvt. Ltd. is currently at the forefront. With an impressive portfolio
of 800 designs catering to fifty clients, GreenZone's production facility churns out an astounding 3000
units per day. While GreenZone has enjoyed a monopoly for some years, the industry anticipates
significant growth as more corporations adopt eco-friendly initiatives.
Hareeyali has made commendable strides in its operations but faces a challenge in securing a suitable
production facility. The key to unlocking its potential lies in formulating a strategic approach that
addresses industry gaps and explores untapped opportunities. The founders are resolutely committed to
making their mark in every corporate entity across India.
The expansion plan is divided into three phases, beginning with the targeted markets of Delhi NCR and
Mumbai. Recognizing the unique needs of the working class in these cities, the strategy team has
identified a crucial aspect-personalization. This insight has led Hareeyali to focus on tailor-made designs
for companies, setting them apart from standardized offerings provided by competitors.
Additionally, Hareeyali has introduced the Green Card Points System, an innovative initiative where
employees who choose to incorporate their products into their workspaces accumulate points. These
points can be redeemed for purchases of herbal and organic products from leading online platforms.
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The company has experienced robust growth in the past year and now aims to expand its reach through
both online and offline channels. This multifaceted approach positions Hareeyali for even greater
success in the coming years.
Question - 1: GreenZone has been the leader in the industry and has deployed some barriers to entry
on new players wanting to tap into this new growing industry. Apparently, Hareeyali has been struggling
on the very same front and thus, the barrier's magnitude increases. Which of the following is a barrier
to entry used by GreenZone?
Answer - 1 : Product differentiation
Answer - 2: Switching costs
Answer - 3: Economies of scale
Answer - 4: Brand identity
Right Answer: 3
Description: Economies of scale
Question - 2: Hareeyali's Green points system falls under which strategic marketing technique?
Answer - 1: Service marketing
Answer - 2: Person marketing
Answer - 3: Direct marketing
Answer - 4: Augmented marketing
Right Answer: 4
Description: Augmented marketing
Question - 3: What demonstrates the strategic intent of Hareeyali's founders in their commitment to
make their mark in every corporate entity across India?
Answer - 1: Setting specific financial goals
Answer - 2: Focusing on tailored designs for companies
Answer - 3: Formulating a strategic approach to address industry gaps
Answer - 4: The vision to reach every corporate entity
Right Answer: 4
Description: The vision to reach every corporate entity
Question - 4: The management structure of Hareeyali is apparently like any other company with a lot of
founders/top management, as the middle office work is undertaken by business automation. It does
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reduce costs, but the lower management has fewer opportunities to grow. Based on that, which of the
following is the organizational structure of Hareeyali?
Answer - 1 : Network structure
Answer - 2 : Matrix structure
Answer - 3: Divisional structure
Answer - 4: Hourglass structure
Right Answer: 4
Description: Hourglass structure
Question - 5: Intensity of rivalry determines the attractiveness and profitability of an Industry. The
rivalry between the two companies is furious and the profitability shall be low because of all the below
factors, except:
Answer - 1 : Variable costs of business
Answer - 2: GreenZone is currently the industry leader
Answer - 3: The industry s growth is slow
Answer - 4 : Companies are planning product differentiation
Right Answer: 1
Description: Variable costs of business
CASE 4
LUXHEAL is a cutting-edge healthcare equipment design and manufacturing company founded by
esteemed Indian medical academicians. The company secured a substantial investment of
approximately 115 crores from a Pune-based venture capital firm to meet its capital requirements.
Recently, LUXHEAL unveiled its groundbreaking automated mind-mapped wheelchair, WHEELIX, which
garnered recognition and accolades worldwide. The product earned the prestigious Industry
Differentiator Award at an international conclave, solidifying its position as an industry innovator.
Dr. Budhiraja assumed the role of CEO last year, steering the company from a challenging position to a
leadership position in innovation. His transformative leadership style fostered a culture of unity and
inspiration among employees. Notably, he initiated a company-wide competition to encourage and
recognize exceptional innovations.
One of the company's key strategic strengths lies in its advanced benchmarking processes. However, in
their
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eagerness to enter the market and showcase their product range, LUXHEAL overlooked implementing
some of the valuable insights and conclusions derived from these processes.
WHEELIX is poised to establish LUXHEAL as a specialized player in the market catering to affluent
elderly individuals. The company has received interest from WeGO, a global leader in wheelchair
production, proposing a partnership involving shared branding and facilities. The Board is inclined
towards accepting this offer.
Nevertheless, WeGO is entangled in a legal dispute with its distribution partners, necessitating LUXHEAL
to invest considerable effort into building its own distribution channels.
Given the rising population of affluent elderly individuals and the escalating demand for high-end
medical equipment, LUXHEAL is well-positioned to realize its visionary goals. The company's success
hinges on effectively executing its innovative ideas.
Q:1 The recent international recognition that the company has got for WHEELIX, has turned around its
strategy all together. Which of the following Michael Porter's generic strategies should LUXHEAL
follow?
Answer 1: Cost leadership
Answer 2: Focused differentiation
Answer 3: Differentiation
Answer 4: Focused cost leadership
Right Answer: 2
Description: Focused differentiation
Q:2 Which of the following is a key entry barrier for LUXHEAL?
Answer 1: Brand identity
Answer 2: Capital requirement
Answer 3: Access to distribution channels
Answer 4: Product differentiation
Right Answer: 3
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Description: Access to distribution channels, Rest all are amply covered for LUXHEAL except access to
distribution channels.
Q:3 Dr. Budhiraja has been instrumental in bringing about monumental changes in the company's
structure and working culture. He has been very approachable yet feared by employees at all levels.
What kind of leadership style can his style be termed as?
Answer 1: Transactional leadership style
Answer 2: Autocratic leadership style
Answer 3: Diplomatic leadership style
Answer 4: Transformational leadership style
Right Answer: 4
Description: Transformational leadership style
0:4 Considering the need for LUXHEAL to build its own distribution channels due to WeGO's legal
dispute, which category in the BCG matrix might be relevant for this effort?
Answer 1: Star
Answer 2: Dogs
Answer 3: Cash Cows
Answer 4: Question Mark
Right Answer: 4
Description: Question Mark
Q:5 LUXHEAL envisages to be the most admired and responsible healthcare equipment company with
international footprint. Is this a vision or a mission? If this is LUXHEAL's vision, then which of the
following is not essential while drafting the strategic vision?
Answer 1: It should clearly illuminate the direction in which the organisation is headed.
Answer 2: It should create enthusiasm among members of the organization.
Answer 3: It should be rigidly defined to prepare the organisation for the future.
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Answer 4: This is a mission statement and not a vision statement.
Right Answer: 3
Description: It should be rigidly defined to prepare the organization for the future.
CASE 5
Introducing Strong Girls Private Limited, a pioneering early-stage health beverage company
headquartered in
Bangalore, led exclusively by a dynamic team of women. Recognizing two crucial facets of their industry,
the
company understood the heightened health consciousness among the youth and the abundance of
options
available in the market to meet their demands.
With these insights in mind, they unveiled their flagship product, Avajuice, a health drink made from
Amla,
Papaya, Aloe Vera, and Neem, meticulously designed to bolster the immunity of young teenage girls.
What sets Avajuice apart is its unique value proposition of delivering both health benefits and delectable
flavors through organic ingredients.
To gain a competitive edge in their market segment, the company implemented a standardized
production process. This strategic move translated into augmented profit margins and increased
bargaining power. Avajuice has been strategically classified as a "Star" in BCG's growth matrix due to its
rapid growth trajectory and substantial funding requirements.
The marketing team has played a pivotal role in charting the success of Avajuice. Recognizing the
historically low customer loyalty and retention rates in the health beverage industry, the company took
proactive steps to address this challenge. They established collaborations with prominent schools in
Karnataka and forged an agreement with the State Government of Karnataka to offer Avajuice to girls in
government schools at a highly subsidized rate of just one rupee each.
This strategic move not only garnered invaluable free publicity from both local and national media
outlets but also allowed the company to introduce their compelling tagline, 'We Offer Tasty Health for
our Teens.' This tagline was strategically propagated as a trending topic on social media, significantly
amplifying brand Awareness.
Effectively, the company has carved out a distinctive position in the niche market segment, yielding
impressive profit margins as a result. Strong Girls Private Limited stands as a beacon of innovation and
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empowerment in the health beverage industry, setting a new standard for quality and purpose-driven
products.
Question - 1: As per Peter Drucker, it is important to have a meaningful answer to the question, 'what
business are we in?'. Through Avajuice, the company answered the following as 'We Offer Tasty Health
for our Teens'. Among which of the following does this statement fall?
Answer - 1 : Vision
Answer - 2: Mission
Answer - 3: Business definition
Answer - 4: Action plan
Right Answer: 2
Description: Mission
Question - 2: The processes have been standardized as a strategy to improve margins and gain more
negotiation power in the market. Which of the generic strategies by Michael Porter has the company
deployed to create a favorable scenario for itself?
Answer - 1 : Differentiation
Answer - 2: Focussed differentiation
Answer - 3: Cost leadership
Answer - 4: Focussed cost leadership
Right Answer: 4
Description: Focussed cost leadership
Question - 3: Igor Ansoff developed a framework which describes the intensification options available
to a firm. Which of the following did Strong Girls Private Ltd. use for intensifying Avajuice?
Answer - 1: Market penetration
Answer - 2:
Product development
Answer - 3: Market development
Answer - 4: Diversification strategy
Right Answer: 3
Description: Market development
Question - 4: Which factor from the PESTLE analysis played a crucial role in the company's decision to
focus exclusively on the health beverage market for teenage girls?
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Answer - 1: Social
Answer 2: Technological
Answer - 3: Economic
Answer - 4 : Legal
Right Answer: 1
Description: Social
Question - 5: Avajuice can be identified as a Star as per BCG's Growth Matrix, based on the rapid
growth it has shown and the enormous funds it demanded to maintain the market and fuel the growth
potential. What would Avajuice turn into, as per the matrix, when its growth slows down?
Answer - 1: Dog
Answer - 2: Question mark
Answer - 3: Will remain a star
Answer - 4: Cash cow
Right Answer: 4
Description: Cash cow
CASE 6
MidoriTech, a Japanese information technology giant recently got into a multi-million dollar deal with Dezyner
Pvt. Ltd. of Bangalore, a user interface designing company. MidoriTech is a leader in developing firewall for
cloud security services and this deal would help it leverage the latest user-friendly designs of Dezyner Pvt.
Ltd. to be incorporated in its own systems. The major motive of both the companies is to capture the budding
segments of the market, which is very difficult to do given one's own isolated operations.
The second important aspect of the deal is a shared Research and Development Centre in Bangalore with a
70:30 investment in R&D over the period of the next five years. The advancements in cloud computing are to
be matched with other global giants, and this Centre will provide world class excellence for the requisite. Mr.
B. K. Suman, the erstwhile head of Dezyner Pvt. Ltd., has been appointed as the General Manager of the R&D
Centre, and will report directly to the CEO of MidoriTech.
MidoriTech has been in the industry for over thirty years and has over five hundred clients. For better control
and ease of business, it has divided its business segments as per the clients' industry. Thus, it has four major
segments: Robotics, E-Commerce, Energy and Others.
The company had been eyeing five probable Indian companies for a design-oriented deal. Over the course of
one year, they ran multiple financial models to find the most suitable synergy and finally zeroed in with
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Dezyner Pvt. Ltd. This was covered by all major media houses, as this is one of the biggest Indo-Japan Deal
in the last decade.
The future is uncertain, but the companies, through combined synergies have a stable market standing
and growth-oriented future in purview.
Q:1 Mr. B. K. Suman shall work as general manager of the R&D center for the two companies. At which
strategic level will he be working as a General Manager?
Answer 1: Corporate level
Answer 2: Corporate and business level
Answer 3: Functional and business level
Answer 4: Functional level
Right Answer: 2
Description: Corporate and business level
Q:2 Robotics, E-Commerce, Energy and Others, are separate units of MidoriTech, that have been
devised for ease of control. Which of the following is not characteristic that would have helped them
identify and separate. units for better strategic management?
Answer 1: Distinct markets.
Answer 2: Customer's preference
Answer 3: Similar technologies.
Answer 4: Identical competitive advantage
Right Answer: 2
Description: Customer's preference
0:3 Dezyner Pvt. Ltd. and MidoriTech's deal fall under which type of Expansion Strategy?
Answer 1: Conglomerate merger
Answer 2: Concentric diversification
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Answer 3: Horizontal merger
Answer 4: Strategic alliance
Right Answer: 4
Description: Strategic alliance
0:4 MidoriTech's division of its business segments. into Robotics, E- Commerce, Energy, and Others
aligns with which element of the 7S McKinsey model?
Answer 1: Strategy
Answer 2: Structure
Answer 3: Systems
Answer 4: Style
Right Answer: 2
Description: Structure
Q:5 The R&D centre at Bangalore will be a game changer for both the companies. Which of the
following is not an approach for implementation that Mr. Suman can deploy?
Answer 1: First firm to market new technology
Answer 2: Innovative imitator of successful products
Answer 3: Being a mediator in trading of new technology
Answer 4: Low-cost mass producer of tested products
Right Answer: 3
Description: Being a mediator in trading of new technology
CASE 7
Sukh Pvt. Ltd. has been importing Italian crockery under the brand name of 'Facile' since 2017.
The company was amongst the first ones in India to introduce the innovative unbreakable crockery. Their
affiliate, an Italian company, which owns Facile, had entered into a progressive deal, wherein, products
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would be sourced to India via their logistics and all marketing spend would be covered by them.
However, customer management and nationwide distribution would be taken care of by Sukh Pvt. Ltd.
This required English speaking skilled workforce, which has been a constant challenge for the company
in India.
The owners of Sukh Pvt. Ltd. have been regular at attending industry relevant conclaves, both national
and international. Leaders of the company are avid readers of business magazines. Following that, it
was observed that the recent sentiment of the country towards 'Vocal for Local' could disrupt their
Italian brand's marketability. An extraordinary meeting was set up and the steps ahead were planned.
The outcome of the meeting was to partner with local producers of earthen utensils in phase one of the
change strategy. For this, seven state governments were approached. The team was successful in
bagging contracts from all the government departments of these seven states and could position
themselves fairly in the market. To fund this new investment, they have planned to slowly sell off their
Italian business assets as well as the brand, to probable buyers.
This timely shift is proving to be a game changer for the company and the leadership is quite happy with
better than before earnings and a much greater response from the customers. They find it easier to
operate with domestic producers and vendors, and a sense of patriotism is instilled in the consumers'
mind.
Question - 1: Which of the following best represents an opportunity for Sukh Pvt. Ltd. in the current
scenario?
Answer - 1 : Increasing competition from local producers
Answer - 2: Growing sentiment for imported goods
Answer - 3: Partnership with local producers of earthen utensils
Answer - 4 : Decline in customer sentiment towards Vocal for Local
Right Answer: 3
Description: Partnership with local producers of earthen utensils
Question - 2: Which of the following types of strategic control did the owners and leadership of Sukh
Pvt. Ltd. Deploy, that eventually turned out to be one of the most effective strategic decisions for the
company?
Answer - 1: Premise control
Answer - 2 : Special alert control
Answer - 3: Implementation control
Answer - 4: Strategic surveillance
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Right Answer: 3
Description: Implementation control
Question - 3: 'Vocal for Local' is a market sentiment that changed customer's preferences for the
majority of products of all industries. Based on that, Sukh Pvt. Ltd. gauged the competition it might
face in the coming months and agreed to change its own product. Which of the following forces, as per
Michael Porter's five forces of competitive analysis, is most relevant in this case?
Answer - 1 : Threat of new entrants
Answer - 2: Nature of rivalry in the industry
Answer - 3: Threat of substitutes
Answer - 4: Bargaining power of the buyer
Right Answer:3
Description: Threat of substitutes
Question - 4:Which of the following aspects of value chain analysis was the most challenging for Sukh
Pvt. Ltd. at the time of selling Facilebrand crockery?
Answer - 1: Manufacturing
Answer 2: Outsourcing
Answer - 3: Customer service
Answer - 4: Procurement
Right Answer: 2
Description: Outsourcing
Question - 5: To strategically revamp their business, partnerships were done with Indian local
producers from seven states and to fund it, the existing arm of business was to be sold off. Which of
the following strategies has Sukh Pvt. Ltd. opted for?
Answer - 1: Turnaround strategy
Answer - 2: Divestment strategy
Answer - 3: Liquidation strategy
Answer - 4 Intensification strategy
Right Answer: 2
Description: Divestment strategy
CASE 8
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Dr. Mikesh Gupta, Agriculture Management Guru at a leading management school in Patna, has been driving
the business of E-Bandhu with seven of his students since 2017. This business has two core objectives: first,
sustainable farming awareness and second, seasonal availability of agricultural inputs. It is a technology
driven business wherein they have a one stop shop for all agricultural products available to farmers at
competitive prices. Business is quite challenging, given the fact that farmers in the region are not well aware
of the use of technology.
In the summer of 2019, the team decided to redefine their business strategy to succeed in the agricultural
sector. They formulated a new definition and made strategic decisions to leverage their core competencies.
Firstly, they shifted their target market from directly serving farmers to onboarding wholesalers and retailers
into the system and selling products to them. This strategic move was based on the understanding that
wholesalers and retailers could influence technology adoption among farmers.
Secondly, they outsourced logistics to MaalGaadi, a rural supply chain management company. This decision
helped E-Bandhu reduce asset procurement costs and corresponding debt, thus strengthening their position
in the market.
Thirdly, they introduced a new service-based product, ChaaraVidya, in their application. ChaaraVidya aims to
educate farmers about the latest sustainable farming practices being implemented around the world. This
addition could potentially be a game-changer for E-Bandhu in the agro startup circle, further enhancing their
core competency in promoting sustainable farming practices and technology adoption.
The team is enthusiastic about the strategic changes brought in by Dr. Mikesh and anticipates a more
sustainable future for their idea.
Q:1 One of the most strategically advantageous decisions. for E-Bandhu was to get into a contract with
MaalGaadi. Which of the following could not be an advantage for E-Bandhu. from this alliance?
Answer 1: Cost savings
Answer 2: Reduced delivery time satisfaction
Answer 3: Improved customer
Answer 4: Increased Inventory of products
Right Answer: 4
Description: Increased inventory of products
Q:2 Switching from direct selling to marketing through wholesalers and retailers was a strategic decision
taken by the management. Such decisions help an organization to be more of which of the following?
Answer 1: Authoritative
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Answer 2: Futuristic
Answer 3: Proactive
Answer 4: Regularized.
Right Answer: 3
Description: Proactive
Q:3 How does E-Bandhu utilize Michael Porter's. Five Forces model in its strategic decision- making
process?
Answer 1: By focusing on industry rivalry and competitive pricing
Answer 2: By analyzing the bargaining power of suppliers and buyers
Answer 3: By assessing the threat of new entrants and substitutes
Answer 4: All of the above
Right Answer: 2
Description: By analyzing the bargaining power of suppliers and buyers.
0:4 Chaara Vidya was brought into the market to increase farmer awareness of soil quality and the latest
sustainable farm practices from around the world? What kind of growth strategy will it fall under?
Answer 1: Market penetration
Answer 2: Market development
Answer 3: Product development
Answer 4: Diversification of business
Right Answer: 3
Description: Product development
Q:5 What are the core objectives of E-Bandhu, as mentioned in the case study?
Answer 1: Sustainable farming awareness and seasonal availability of agricultural inputs
Answer 2: Technology-driven solutions and competitive pricing
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Answer 3: Onboarding wholesalers and retailers into the system
Answer 4: All of the above
Right Answer: 1
Description: Sustainable farming awareness and seasonal availability of agricultural inputs
CASE 9
LactoQalci is a family run company engaged in the business of manufacturing packaged sweetened pro-
biotic milk beverage. The management envisions a potential future in the health and fitness industry. It
thereby adopted a new statement "Ensuring Health for Everyone" to uplift the company's business makeup
and market position.
LactoQalci introduced a new product for its existing customers, a range of sugar-free milkshakes. The
company initiated an advertisement campaign with the tag line "Now enjoy the goodness of LactoQalci in
sugar-free milkshakes". It is anticipated to become the most selling product of the company.
Further, to make the product unique, they adopted a distinctive product packaging design. The milkshake
tetra packs came with a 'calories saved' scale printed on them. It was designed to motivate the consumers to
a healthier life. As a result, the company was able to sell these milkshakes at a higher price.
The company saw a decent response from the market and were planning to scale up operations, when
suddenly, political disturbance in the state pulled their sales to rock bottom. Several warehouses of the
company had to be temporarily shut down.
However, Mr. Rohatgi, the passionate operations head of the company, responded swiftly, and reengineered
the business processes. He automated inventory management and outsourced logistical support. Small
investments in IT infrastructure in troubled times reaped higher returns. The company was able to achieve
better than before efficiency at all levels of operations and ensured regular sales.
Q:1 LactoQalci's introduction of a new product, sugar- free milkshakes, aligns with which element of the 7S
Framework? McKinsey
Answer 1: Skills
Answer 2: Staff
Answer 3: Strategy
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Answer 4: Style
Right Answer: 3
Description: Strategy
Q:2 Which strategic intent is expressed in the statement "Ensuring Health for Everyone" by LactoQalci?
Answer 1: Vision
Answer 2: Mission
Answer 3: Goals and Objectives
Answer 4: Business definition
Right Answer: 1
Description: Vision
Q:3 Introducing Sugar-Free milkshakes by LactoQalci, falls under which Product-Market strategy as given
by Ansoff?
Answer 1: Product development
Answer 2: Market penetration
Answer 3: Market development
Answer 4: Diversification
Right Answer: 1
Description: Product development
0:4 What kind of leadership did Mr. Rohatgi portray to pull out LactoQalci from the disruption? sudden
Answer 1: Transactional leadership
Answer 2: Transformational
leadership
Answer 3: Transparent leadership
Answer 4: Translational leadership
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Right Answer: 2
Description: Transformational leadership
Q:5 Which of the Michael Porter's Generic Strategies was adopted by LactoQalci to gain competitive
advantage?
Answer 1: Cost leadership strategy
Answer 2: Differentiation strategy
Answer 3: Focussed cost leadership strategy
Answer 4: Focussed differentiation strategy
Right Answer: 2
Description: Differentiation strategy
CASE 10
After graduating from IIT in computer science, sisters, Shakti and Stuti, following their passion for computers,
started "Code Consulting". They faced innumerable survival challenges in a highly dynamic IT market. But
with the combined efforts of a highly dedicated team of data scientists, their core business of big data
analytics gained a prominent market presence.
From inception, Code Consulting has been a women-centric organization. The sisters ensured that women
were provided with ample opportunities in the organization. Given the option of Work From Home (WFH) as
mandated by recent legal regulations, majority of the female workforce availed the option. To avoid a drop in
sales, the sisters expeditiously lead a crisis management team to accommodate adoption of the required
technology to meet the changes of time.
Code Consulting, having reached a reputable market standing, was now observing cut-throat competition
from foreign giants in its niche. The sisters resolved to make an effort into their long aspired dream to
diversify into the innovative market space of 3D printing. Code Consulting, lacking the requisite experience,
went for a merger with a startup named "CreatyVT" known for its technical know- how. They have a strong
skill-based team, but the long-standing startup had a relatively small market share in the 3D printing arena.
Early on, the management observed that the businesses of big data analytics and 3D printing had distinct
markets. So, they split the company into different business units to independently identify their performance.
Separation into business units helped in simplifying the control-related problems too.
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Whereas the challenge to increase the company's market share was successfully met by introducing
ingenious 3D printers with easily refillable cartridges. The new product was supported by an aggressive
online advertising campaign. The customers pleased by the products helped reach the desired sales targets
in no time.
Having shown a never giving up attitude coupled with wise leadership skills, the business of Code Consulting
sustained a turbulent patch and placed itself as a renowned brand in the Indian IT.
Q:1 Mark the correct growth and expansion strategy employed by Code Consulting in merging with the
startup named "CreatyVT"?
Answer 1: Horizontal merger
Answer 2: Vertical merger
Answer 3: Co-generic merger
Answer 4: Conglomerate merger
Right Answer: 3
Description: Co-generic merger
Q:2 Which type of strategic control was adopted by Code Consulting when a new legal regulation proposed
that women workers shall have the option to work from home?
Answer 1: Premise control
Answer 2: Special alert control
Answer 3: Strategic surveillance
Answer 4: Implementation control
Right Answer: 2
Description: Special alert control
Q:3 Which strategy has been adopted by Code Consulting to overcome the difficulties of low- market share
for its "3D printing" business?
Answer 1: Dynamic strategy
Answer 2: Adaptive strategy
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Answer 3: Intended strategy
Answer 4: Sound strategy
Right Answer: 3
Description: Intended strategy
Q:4 Applying BCG matrix, identify the correct investment category for the new "3D printing" business of
Code Consulting, at the time of merger?
Answer 1: Star
Answer 2: Cash cow
Answer 3: Dog
Answer 4: Question mark
Right Answer: 4
Description: Question mark
Q:5 What has been the rationale behind Code Consulting's management for treating big data business and
3D printing business amenable to separate strategic treatment?
Answer 1: The businesses were unrelated
Answer 2: The businesses were unmanageable
Answer 3: The businesses were related
Answer 4: The businesses were identical
Right Answer: 1
Description: The businesses were unrelated
CASE 11
Swasthya, a rising star in India's dynamic healthcare sector, stands out as a prime example of smart strategic
management.
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At Swasthya, the compass guiding their endeavors is a compelling thought: to emerge as the finest
healthcare provider renowned for delivering accessible, top-notch healthcare services. This overarching goal
is not an isolated vision, but a thread woven into the very fabric of the organization, driving every facet of their
operations. The people of the organization play a pivotal role in this journey. They are entrusted with
translating this vision into tangible outcomes at the grassroots level, ensuring that local operations are
aligned with the grand aspiration of becoming a healthcare leader.
Swasthya works meticulously towards optimizing each link of the patient experience. From streamlining
appointment scheduling to expediting test result delivery, every facet of the healthcare journey is scrutinized.
Swasthya's strategy is not merely about being a player in the market but about strategically positioning
themselves as leaders. They proactively recognize the constant innovations that could disrupt their areas of
expertise. To counter this, they introduced value-added offerings such as telemedicine and wellness
programs. This addition not only mitigates the risk but also fortifies their long-term viability.
Beyond competition, ensuring the quality and safety of patient care is paramount at Swasthya. Stringent
hygiene protocols, equipment maintenance regimens, and adherence to healthcare regulations form the
cornerstone of their business. In parallel, the organization meticulously undertakes regular assessment as a
central element of its decision-making apparatus. This forward- looking exercise encompasses identifying
and assessing potential risks such as regulatory changes, medical malpractice vulnerabilities, or shifts in
market dynamics, all of which could have far-reaching consequences for their long-term objectives.
The implementation of Swasthya's strategy is steered by the McKinsey 75 model, which ensures a
harmonious alignment of seven critical elements: strategy, structure, systems, shared values, skills, style, and
staff. It emphasizes that the success of a long-term objective is contingent on the synchronization of these
seven elements, reinforcing the idea that strategic management is not a compartmentalized process but a
comprehensive activity.
Swasthya's strategic journey through India's healthcare landscape is a testament to the seamless integration
of core management concepts, guiding its actions and strategies, while keeping the visionand intent at the
core.
0:1 Why is the McKinsey 7S model significant in Swasthya's strategic management approach, and which
elements of the model ensure a holistic alignment of their strategy?
Answer 1: It facilitates short-term profit maximization, with a focus on structure and style.
Answer 2: It emphasizes a compartmentalized approach to strategy, focusing on shared values and skills.
Answer 3: It ensures a comprehensive alignment of strategy, structure, systems, shared values, skills, style,
and staff.
Answer 4: It prioritizes immediate cost reduction by aligning systems and strategy.
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Right Answer: 3
Description: It ensures a comprehensive alignment of strategy, structure, systems, shared values, skills, style,
and staff.
Q:2 Why is the focus on local operations essential for Swasthya in the context of their long-term objective,
and how does it contribute to their overall strategy?
Answer 1: It reduces strategic risk by minimizing the need for strategic risk assessment.
Answer 2: It aligns with their commitment to immediate profitability.
Answer 3: It translates the organizations vision into tangible outcomes and aligns with their long- term
objective.
Answer 4: It diversifies their portfolio and aligns with competitive landscape analysis.
Right Answer: 3
Description: It translates the organization's vision into tangible outcomes and aligns with their long-term
objective.
0:3 The case talks about scrutiny of every facet of the healthcare journey and emphasizes the fact that
people of the organization play a pivotal role in this journey. Based on your reading, which level of
management has the most crucial part to play here to ensure the sense of customer-first imbibed in
organization? is the
Answer 1: Top Management (C- Suite) which sets the tone and strategy of the organization.
Answer 2: Middle Management (Divisional Managers) who have the responsibility of translating strategy to
real-time objectives.
Answer 3: Functional Managers who actually do the work in the field.
Answer 4: Board of Directors who are responsible for wealth creation of the shareholders.
Right Answer: 2
Description: Middle Management (Divisional Managers) who have the responsibility of translating strategy to
real-time objectives.
0:4 How does Swasthya counter the risk posed. by constant innovations. and disruptions in their areas of
expertise?
Answer 1: By aggressively acquiring innovative startups.
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Answer 2: By introducing value- added services like telemedicine. and wellness programs.
Answer 3: By downsizing their operations,
Answer 4: By focusing exclusively on urban healthcare markets.
Right Answer: 2
Description: By introducing value-added services like telemedicine and wellness programs.
Q:5 How does Swasthya's approach to premise. control, including stringent hygiene protocols and
equipment maintenance, contribute to their long-term objectives and which concept does it align with?
Answer 1: it reduces immediate costs and aligns with strategic risk assessment
Answer 2: It safeguards quality and aligns with strategic risk assessment.
Answer 3: It enhances immediate profitability and aligns with shared values.
Answer 4: It streamlines. administrative processes and aligns with value chain analysis.
Right Answer: 2
Description: It safeguards quality and aligns with strategic risk assessment.
CASE 12
In the fiercely competitive automotive industry, Zing, a promising newcomer, set out on a strategic journey
with
ambitions of making a substantial impact. Recognizing the significance of a robust distribution network early
on, Zing forged partnerships with established dealerships, offering them attractive margins. This strategic
move
significantly enhanced Zing's reach, with a presence in 80% of the nation's dealerships by 2022, expanding its
coverage significantly.
To differentiate themselves from competitors, Zing adopted two key strategies. Firstly, they prioritized
product
design, investing heavily in aesthetics and incorporating innovative features and environmentally friendly
technologies. This focus on design led to their vehicles receiving excellent reviews and achieving an
impressive
15% year-on-year growth in sales.
Secondly, Zing implemented switching costs to discourage customers from switching to other brands. Their
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vehicles featured branded software, making it both expensive and cumbersome for customers to transition to
alternative brands. This strategic move effectively protected Zing's market share.
Zing's overarching goal was to position itself as a premium automotive brand, blending luxury with
sustainability. However, their execution fell down as they challenged with maintaining consistent quality and
service levels, resulting in mixed customer reviews.
Despite their best efforts, Zing's differentiation strategy fell short due to issues with inconsistent quality
and service. Negative word-of-mouth and declining customer satisfaction scores tarnished their brand image,
leading to stagnating sales. This failure to deliver on their brand promise proved to be a significant setback.
As Zing's reputation suffered from execution failures, securing additional funds for international expansion
became challenging. Consequently, they made the difficult decision to postpone their global ambitions for the
next five years, focusing instead on stabilizing their finances and rebuilding their brand image.
In summary, Zing's strategic journey illustrates the importance of not only crafting a compelling
differentiation
strategy but also executing it flawlessly. In the competitive automotive landscape, maintaining consistent
quality
and service is paramount to sustaining brand loyalty and achieving long-term success.
Question - 1: What key strategic approach did Zing use to expand its market presence in the
automotive industry?
Answer - 1: Product innovation and design
Answer 2: Cost leadership strategy
Answer - 3: Entering new international markets
Answer - 4: Vertical integration
Right Answer: 1
Description: Product innovation and design
Question - 2: How did Zing protect its market share from potential competitors?
Answer - 1 Price-cutting strategy
Answer - 2: Branded software and switching costs
Answer - 3: Aggressive marketing campaigns
Answer - 4: International expansion
Right Answer: 2
Description: Branded software and switching costs
Question - 3: Why did Zing's differentiation strategy fall short in the market?
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Answer - 1 : Intense price competition
Answer - 2: Poor marketing strategy
Answer - 3: Inconsistent quality and service
Answer - 4: Lack of international expansion
Right Answer: 3
Description: Inconsistent quality and service
Question 4: Forging partnerships with established dealerships to enhance its distribution network falls
under which level of strategy?
Answer - 1: Corporate level strategy
Answer - 2 Business level strategy
Answer 3: Functional level strategy
Answer - 4: Competitive level strategy
Right Answer: 2
Description: Business level strategy
Question - 5: How did Zing initially expand its market presence across the nation?
Answer - 1: Aggressive marketing campaigns
Answer - 2: Developing low-cost vehicles
Answer - 3: Partnering with established dealerships
Answer - 4: Launching a luxury brand
Right Answer: 3
Description: Partnering with established dealerships
CASE 13
Café Delight, a thriving restaurant chain known for its unique blend of Australian and Indian culinary
experiences, embarked on a remarkable journey from its humble beginnings as a small café in Australia to
becoming a renowned player in the Indian restaurant industry. This case study digs into the strategic
decisions and market dynamics that fueled Café Delight's growth, highlighting its transition from a single café
in Powai, Mumbai, to a flourishing chain with a presence in five cities and over 25 stores. It explores how Café
Delight effectively leveraged social media and adapted its pricing strategy to compete with global brands
while maintaining a healthy profit margin.
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In 2005, Café Delight was founded in Melbourne, Australia, by a passionate entrepreneur with a vision to bring
the flavors of Australia and India together. The first café established in Powai, Mumbai, received accolades
for its unique menu, blending Australian coffee culture with Indian culinary traditions. Over the course of five
years, Café Delight expanded to three stores in Mumbai, driven by exceptional mouth publicity, customer
loyalty, and consistent quality.
As the social media landscape evolved, Café Delight recognized the power of online platforms in reaching a
wider audience. By effectively utilizing social media and online marketing, Café Delight expanded its presence
to five cities across India and established over 25 stores. Customer engagement through social media
platforms enabled the brand to create a strong and vibrant community, driving organic growth.
Café Delight's customer-centric approach involved continuously evolving its menu to cater to the changing
tastes and dietary preferences of its patrons. By understanding the evolving needs of its customers, Café
Delight could offer personalized menu items, seasonal specials, and dietary alternatives. This approach
created a sense of loyalty and engagement among customers, strengthening the brand's appeal. Not just
customers but High-power, low-interest stakeholders, including regulatory authorities, were addressed with
careful compliance and adherence to industry standards. Low-power, high-interest stakeholders, like potential
customers and local communities, were engaged through targeted marketing campaigns and community
involvement initiatives. This meticulous stakeholder analysis allowed Café Delight to build and maintain
strong relationships with each group,
effectively managing their influence and impact on the brand.
With its expanding presence and increasing popularity, Café Delight underwent a shift in its pricing strategy. It
transitioned from a pocket-friendly pricing model to a skimming strategy, capitalizing on its unique blend of
Australian and Indian flavors to position itself as a premium restaurant. Café Delight faced stiff competition
from global brands entering the Indian market but maintained a profit margin of approximately 30% through
menu engineering and targeted pricing.
In one of its kind, using strategic tools enabled Café Delight to identify and act on opportunities while
mitigating threats, contributing to its long-term success in the highly competitive restaurant industry.
Q:1 What type of strategy did Café Delight use to differentiate itself from competitors in the Indian
restaurant industry?
Answer 1: Cost leadership strategy
Answer 2: Focused differentiation strategy
Answer 3: Cost focus strategy
Answer 4: Hybrid strategy
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Right Answer: 2
Description: Focused differentiation strategy
Q:2 At which level of strategic management does Café Delight's transition from a pocket-friendly pricing
model to a skimming strategy fit?
Answer 1: Corporate level
Answer 2: Business level
Answer 3: Functional level
Answer 4: Operational level
Right Answer: 2
Description: Business level
Q:3 What best describes Café Delight's initial expansion strategy when it expanded from one café to three in
Mumbai.
Answer 1: Aggressive price reduction
Answer 2: Leveraging customer loyalty and word-of-mouth publicity
Answer 3: Extensive online marketing
Answer 4: Embracing global branding strategies
Right Answer: 2
Description: Leveraging customer loyalty and word- of-mouth publicity
Q:4 What stakeholder group did Café Delight engage through targeted marketing campaigns and
community involvement initiatives?
Answer 1: High-power, high-interest stakeholders
Answer 2: Low-power, low-interest stakeholders
Answer 3: Low-power, high-interest stakeholders
Answer 4: High-power, low-interest stakeholders
Right Answer: 3
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Description: Low-power, high-interest stakeholders
Q:5 Café Delight effectively leveraged social media and adapted its pricing strategy as it stepped into which
phase of business life cycle of operations?
Answer 1: Introduction Stage
Answer 2: Growth Stage
Answer 3: Maturity Stage
Answer 4: Decline Stage
Right Answer: 2
Description: Growth Stage
ICAI BOS App MCQs & Case Scenarios
Compiled by: Aditya Das
Team - EliteCA
For guaranteed Important Questions, Classes or other queries,
Contact Us: 8017506379/9007746507
Mail: eliteca096@gmail.com
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