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1 MGT603 - Strategic Management Question No: 1 ( Marks: 1 ) - Please choose one Various job titles of a strategist may include all of the following EXCEPT: 1. Owner 2. Foreman P6 3. Chancellor 4. Chief executive officer Question No: 2 ( Marks: 1 ) - Please choose one According to Peter Drucker, what is the prime task of strategic management? 1. To develop the vision of the business 2. Effectively evaluate the strategies 3. To think through the overall mission of a business P4 4. Develop alternative set of strategies Question No: 3 ( Marks: 1 ) - Please choose one Strategist is an individual who is involved in the strategic management process, thusmay be known as: 1. Member board of director 2. President P6 3. Division manager 4. All of the given options Question No: 4 ( Marks: 1 ) - Please choose one External opportunities and threats that can significantly benefit or harm an organization may include all of the following EXCEPT: 1. Demographics 2. Competitive trends 3. Technological changes 4. Research and development P7 Question No: 5 ( Marks: 1 ) - Please choose one the S & T Organization has an established "game plan" for its business operations. This game plan reflects the company's awareness of how and where it should compete and against whom the competition should take place. It can be stated that this organization has an established Goal 1. Formality 2. Policy 3. Strategy Page 1 of 7
2 Question No: 6 ( Marks: 1 ) - Please choose one Identify the term that is known as a mean of providing guidance to actions and procedures, including how resources are to be allocated and how tasks assigned to the organization might be accomplished. 1. Policies 2. Objectives 3. Aspirations 4. Goals Question No: 7 ( Marks: 1 ) - Please choose one All of the following statements are true about a firm s mission statement EXCEPT: 1. A mission statement directly contributes positively to financial performance 2. A mission statement does not directly contribute positively to financial performance 3. A mission statement should not provide useful criteria for selecting among alternative strategies 4. Primary reason to develop a mission statement is not to attract the customers Question No: 8 ( Marks: 1 ) - Please choose one All of the following external forces directly affect an organization EXCEPT: 1. Market segmentation strategies 2. Types of products/services offered 3. Management structure of an organization P28 4. Choice of businesses to acquire or sell Question No: 9 ( Marks: 1 ) - Please choose one If a strategist has identified that the market growth rate is 8 %, the number of sellers in industry are 52 and the industry's products are differentiated. Which of the following industry's success factor he is exploring? 1. Social forces 2. Competitive forces 3. Social forces 4. Economic forces Question No: 10 ( Marks: 1 ) - Please choose one Suppose, the value of the currency of a certain country falls, what can be the effecton companies in Different Industries and in Different Locations in that country respectively? 1. Significant and equal 2. Marginal and equal Page 2 of 7
3 3. Significant and unequal 4. Insignificant and unequal Question No: 11 ( Marks: 1 ) - Please choose one Which one variable falls under the category of the Social, Cultural, Demographic, and Environmental Variable? 1. Propensity of people to spend 2. Buying habits P34 3. Level of disposable income 4. Income differences by region Question No: 12 ( Marks: 1 ) - Please choose one Local, state, and national elections, world oil, currency, and labor markets, number of patents, special tariffs are the examples of which one of the following? 1. Economic forces 2. Political, governmental, and legal forces P37 3. Social, cultural and, demographic forces 4. Competitive forces Question No: 13 ( Marks: 1 ) - Please choose one Which of the following best describes this statement; A systematic and ethical process for gathering and analyzing information about the competition s activitiesand general business trends to further a business own goals? 1. External assessment 2. Industry analysis 3. Competitive intelligence program P43 4. Business ethics Question No: 14 ( Marks: 1 ) - Please choose one Which of the following can be considered as barriers to entering a market or industry? 1. The lack of economies of scale and experience and low levels of brand loyalty 2. The presence of large number of rivals already in the industry 3. Relatively large capital requirements and industry have economies of scale 4. The absence of tariffs, trade restrictions, and/or government-mandated regulations Page 3 of 7
4 Question No: 15 ( Marks: 1 ) - Please choose one Supplier bargaining power is not likely to pose strong competitive pressure whenwhich of the following situation is prevailing? 1. Buying firms are looking for suppliers with superior just-in-time supply 2. capabilities and low prices 3. The suppliers furnish a critical part or component that is in relatively short supply 4. Buying firms collaborate closely with their key suppliers to achieve mutual benefits 5. The products of alternative suppliers are highly differentiated, making the cost of switching relatively high Question No: 16 ( Marks: 1 ) - Please choose one Which of the following is a collection of firms that offers similar products or services? such as IBM, Apple, and Dell? 1. Concentration 2. Industry 3. Corporation 4. Alliances Question No: 17 ( Marks: 1 ) - Please choose one While preparing an External Factor Evaluation Matrix, a total score of 0.8 indicatesthat: 1. Firm is taking advantages of strengths and avoiding threats 2. Firm is taking no advantage of opportunities and is avoiding threats 3. Firm is not taking advantages of opportunities and is not avoiding threats P45 4. Firm is taking advantage of opportunities and is avoiding the threats Question No: 18 ( Marks: 1 ) - Please choose one Assigning rating '2' to an internal factor in IFE matrix indicates what? 1. Major weakness 2. Minor weakness P47 3. Minor strength 4. Major strength Question No: 19 ( Marks: 1 ) - Please choose one Which of the following is the first step in developing an IFE Matrix? Summing the weighted scores for each variable Identifying the organization s strengths and weaknesses Identifying the organization s functions of business Determining the lead strategist Page 4 of 7
5 Question No: 20 ( Marks: 1 ) - Please choose one What is the essential bridge between the present and the future that increases thelikelihood of achieving desired results 1. Motivating 2. Planning P54 3. Controlling 4. Organizing Question No: 21 ( Marks: 1 ) - Please choose one Sana has spent a day in a session where the future of her company was discussed. The people involved were trying to determine what the role of their company was asthe 21st century approaches. Goals were then developed based upon their vision ofthe company's mission. Sana spent her day on which of the following process? 1. Planning 2. Organizing 3. Leading 4. Controlling Question No: 22 ( Marks: 1 ) - Please choose one How Synergy can numerically be expressed? =3 (NAGATIVE) = = =5 Question No: 23 ( Marks: 1 ) - Please choose one Which of the following can reveal the demographic characteristics of an organization s? Customers? 1. Test marketing 2. Customer profiling 3. Market development 4. Vision statement Question No: 24 ( Marks: 1 ) - Please choose one Test marketing is commonly applied by which of the following companies? 1. Industrial goods companies 2. Consumer goods companies P62 3. Public sector companies 4. Private sector companies Page 5 of 7
6 Question No: 25 ( Marks: 1 ) - Please choose one All of the following are the consideration for a company when conducting test marketing EXCEPT: 1. What advertising channel should be used for test? P61 2. How many cities to include for test? 3. What information to collect during the test? 4. What action to take after the test has been completed? Question No: 26 ( Marks: 1 ) - Please choose one Which of the following ratios is least likely to be helpful in evaluating a firm s decision? 1. Regarding dividend? 2. Earnings-per-share ratio 3. Long-Term Debt-to-Equity Ratio 4. Dividends-per-share ratio Question No: 27 ( Marks: 1 ) - Please choose one Debt-to-equity ratio is one of the types of which ratios? 1. Profitability 2. Leverage P65 3. Liquidity 4. Activity Question No: 28 ( Marks: 1 ) - Please choose one In strategy formulation phase, what can be the problem when only financial ratios are used to measure organizational performance? 1. They need to be compared with competitors 2. They are only understandable by accountants 3. There are many different measures available 4. The measures are usually inconsistent Question No: 29 ( Marks: 1 ) - Please choose one All of the following are functional support roles of Management Information System EXCEPT: 1. Recording and storing accounting records 2. Recording and storing inventory data 3. Recording and storing business intelligence data 4. The enhanced ability to explore "what if" Page 6 of 7
7 Question No: 30 ( Marks: 1 ) - Please choose one become/s information only when it/they is/are evaluated, filtered, condensed, analyzed and organized for a specific purpose, problem, individual, or time. 1. Material 2. Data 3. Competitive advantages 4. Competitor analysis Question No: 31 ( Marks: 5 ) A good mission statement should include Customer orientation, what does it mean? Explain it with the help of simple examples. Question No: 32 ( Marks: 5 ) What are strengths and weaknesses of an organization? Explain with the help of examples. Page 7 of 7
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