BUSINESS POLICY and STRATEGIC MANAGEMENT

Business Policy & Strategic Management- Multiple Choice Questions

1. BCG stands for
A. Boston Calmette Group
B. British Consulting Group
C. Boston Corporate Group
D. Boston Consulting Group
ANSWER: D
2. What does Dog symbolize in BCG matrix?
A. Introduction
B. Growth
C. Maturity
D. Decline
ANSWER: D
3. What does Stars symbolize in BCG matrix?
A. Introduction
B. Growth
C. Maturity
D. Decline
ANSWER: B
4. What does Question mark symbolize in BCG matrix?
A. Remain Diversified
B. Invest
C. Stable
D. Liquidate
ANSWER: A
5. What do Cash Cows symbolize in BCG matrix?
A. Remain Diversified
B. Invest
C. Stable
D. Liquidate
ANSWER: C
6. The BCG matrix is based on
A. Industry attractiveness and Business strength
B. Industry Growth rate and Business strength
C. Industry Attractiveness and Relative Market share
D. Industry growth rate and relative market share
ANSWER: D
7. In strategic thinking, how long is the long term, approximately?
A. 1 month to 1 year
B. 2 to 3 years
C. 3 to 5 years
D. More than 5 years
ANSWER: D
8. Low cost, Differentiation and Focus are examples of
A. Corporate strategies
B. Operational strategies
C. Business strategies
D. Functional strategies
ANSWER: C
9. The word tactics is most likely to be associated with
A. Business strategy
B. Corporate strategy
C. Operational strategy
D. All of the abvoe
ANSWER: C
10. How many cells are in a SWOT matrix?
A. 9
B. 6
C. 3
D. 2
ANSWER: A
11. What are the means by which long term objectives will be achieved?
A. Strategies
B. Policies
C. Strength
D. Opportunities
ANSWER: A
12. A possible and desirable future state of an organization is called
A. Mission
B. Vision
C. Strategy implementation
D. Strategy formulation
ANSWER: B
13. What are the guides to decision making?
A. Rules
B. Procedures
C. Goals
D. Policies
ANSWER: D
14. Buying another company by one company means
A. Joint venture
B. Acquisition
C. Amalgamation
D. Merger
ANSWER: B
15. Strategic Management handles
A. External issues
B. Management issues
C. Internal issues
D. Administrational issues
ANSWER: A
16. What is the starting point of strategic intent?
A. Objectives
B. Goals
C. Mission
D. Vision
ANSWER: D
17. Corporate level strategy deals with
A. Objectives of the firm
B. Objective for Single strategic Business Unit (SBU) allocation of resources
C. Objectives for specific function allocation of resources among different operations
D. With in that functions
ANSWER: A
18. Which of the following can be identified as a best statement that represents a firms big picture
statements, describing a desired end state.
A. Corporate philosophy statement
B. Company creed
C. Vision statement
D. Mission statement
ANSWER: C
19. Which of the following requires a firm to establish annual objectives, devise policies, motivates
employees and allocate resources for the execution of strategies?
A. Strategy formulation
B. Strategy evaluation
C. Strategy implementation
D. Strategy estimation
ANSWER: C
20. In the sketch of the BCG matrix, what is the label of the horizontal axis?
A. Industry growth rate
B. Market share
C. Market growth rate
D. Business strength
ANSWER: B
21. In the sketch of the BCG matrix, what is the label of the vertical axis?
A. Market growth rate
B. Business strength
C. Market share
D. Industry growth rate
ANSWER: D
22. A company offers unique products that are widely valued by customers, it is likely to follow a
A. Differentiation strategy
B. Combination strategy
C. Focus strategy
D. Cost-leadership strategy
ANSWER: A
23. The following are considered grand strategies, except for
A. A retrenchment strategy
B. Strategic business units
C. A growth strategy
D. Related diversification
ANSWER: B
24. Which of the following is not one of Porters five competitive forces?
A. Bargaining power of suppliers
B. Threats of new entrants and barriers to entry
C. Threats of technological advances
D. Threats of substitutes
ANSWER: C
25. Strategic business units
A. Are found in one-business organisations
B. Carry out strategies assigned by the CEO
C. Develop their own unique way of competing
D. Implement the marketing function's strategic planning and management decisions
ANSWER: C
26. McDonalds is deciding whether to expand into manufacturing kitchen equipment in China. At what
level is this decision likely to be made?
A. Business
B. Corporate
C. Functional
D. International
ANSWER: B
27. Which of the following is not a recognized element of corporate strategy?
A. Competitive advantage
B. Closure
C. Acquisition
D. Divestment
ANSWER: A
28. Which of the following is associated with successful strategies?
A. Creating superior value to customers
B. Exploitation of key success factors
C. Creating and maintaining strategic fit
D. All of the above
ANSWER: D
29. Which type of strategies are of particular importance to global companies?
A. Corporate
B. Functional
C. Competitive
D. Corporate and competitive
ANSWER: D
30. Which one of the following would not be considered as a functional strategy?
A. Financial
B. Marketing
C. Product-market
D. Operations
ANSWER: C
31. Which of the following would you not expect to see in a vision statement?
A. Descriptions of desirable future situations
B. Motivational terminology
C. Focus on the values to which the organization is committed
D. What the organization seeks to do to reach desirable future states
ANSWER: D
32. Which of the following is not one of the three elements of strategy creation?
A. Sales
B. Innovation
C. Planning
D. Leadership
ANSWER: A
33. What is the key variable in executing visionary strategy creation at the competitive strategy level?
A. Seizing the opportunities presented
B. Formalized planning
C. Innovation
D. Learning
ANSWER: C
34. The corporate level is where top management directs
A. All employees for orientation
B. Its efforts to stabilize recruitment needs
C. Overall strategy for the entire organization
D. Overall sales projections
ANSWER: C
35. The three organizational levels are
A. Corporate level, business level, functional level
B. Corporate level, business unit level, functional level
C. Corporate strategy level, business unit level, functional level
D. Corporate strategy level, business level, specialist level
ANSWER: A
36. The basic activities of strategic management include
A. Offense, defense, and control
B. Situation analysis, strategy formulation, strategy implementation, and strategy evaluation
C. Development, control, and management
D. Ethics, management, and practice
ANSWER: B
37. An organizations strategies should be designed so that they incorporate
A. Opportunities and threats
B. Resources and capabilities
C. Only traditional values of past organizations
D. Opportunities, threats, resources, and capabilities
ANSWER: B
38. Situation analysis involves the process of
A. Designing and choosing appropriate organizational strategies
B. Analyzing the current environment of the organization
C. Analyzing the external environment only
D. Evaluating the internal aspects of the organization
ANSWER: B
39. Situation analysis allows the organization to examine
A. External factors only
B. Internal factors only
C. The organizations top management only
D. Both external and internal factors
ANSWER: D
40. Which of the following is an issue considered in developing corporate strategies?
A. What business(es) are we in?
B. What direction are we going?
C. What resources do we have to implement our strategies?
D. What businesses are we in and what to do with those businesses?
ANSWER: D
41. Which of the following is NOT a major element of the strategic management process?
A. Formulating strategy
B. Implementing strategy
C. Evaluating strategy
D. Assigning administrative tasks
ANSWER: D
42. Environmental scanning occurs in what phase of strategic conflict management?
A. Reactive
B. Proactive
C. Recovery
D. Strategic
ANSWER: B
43. Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats)
analysis?
A. Organizational strengths may not lead to competitive advantage
B. SWOT gives a one-shot view of a moving target
C. SWOT focus on the external environment is too broad and integrative
D. SWOT overemphasizes a single dimension of strategy
ANSWER: C
44. The competencies or skills that a firm employs to transform inputs into outputs are
A. Tangible resources
B. Intangible resources
C. Organizational capabilities
D. Reputational resources
ANSWER: C
45. How often should strategic-management activities be performed?
A. Annually
B. Quarterly
C. Monthly
D. Continuously
ANSWER: D
46. Who is most responsible for developing, communicating, and enforcing the code of business ethics for a
firm?
A. Strategists
B. Line managers
C. Staff managers
D. All managers
ANSWER: A
47. Strategy-implementation activities include
A. conducting research
B. measuring performance
C. preparing a TOWSmatrix
D. establishing annual objectives
ANSWER: D
48. In a large organization, strategic management activities occur at what level(s)?
A. Corporate and divisional only
B. Divisional
C. Strategic business unit only
D. Functional, divisional, and corporate
ANSWER: D
49. Conducting research, integrating intuition with analysis, and making decisions are all__________
activities
A. Strategy-formulation
B. Strategy-implementation
C. Long-range planning
D. Short-range planning
ANSWER: A
50. ___________ are short-term milestones or benchmarks that organizations must achieve in order for
longer term objectives are to be reached
A. Vision
B. Mission
C. Plans
D. Goals
ANSWER: D
51. __________ refers to the purposes an organization strives to achieve
A. Strategic Intent
B. Strategic Formulation
C. Strategic Implementation
D. Strategic Control
ANSWER: A
52. __________ strategy may require a firm to redefine its business and may involve divestment of a major
product line or an SBU, abandon some markets or reduce its functions
A. Expansion Strategy
B. Retrenchment Strategy
C. Combination Strategy
D. Stability Strategy
ANSWER: B
53. __________ strategy is often considered as entrepreneurial strategy where firm develops and introduce
new products and markets or penetrate markets to build share
A. Expansion Strategy
B. Retrenchment Strategy
C. Combination Strategy
D. Stability Strategy
ANSWER: A
54. What is the recommended length of an effective mission statement?
A. One page
B. Less than 200 words
C. One sentence of 10 to 20 words
D. There is no recommendation. It can be as long as the management wants
ANSWER: D
55. Two reasons for mergers and acquisitions are
A. to increase managerial staff and to minimize economies of scale
B. to reduce tax obligations and increase managerial staff
C. to create seasonal trends in sales and to make better use of a new sales force
D. to provide improved capacity utilization and to gain new technology
ANSWER: D
56. The pie slices within the circles of a ________ reveal the percent of corporate profits contributed by
each division
A. QSPM
B. BCG matrix
C. SPACE matrix
D. Grand strategy matrix
ANSWER: B
57. The impact of strategies on the general direction and basic character of a company is
A. short range
B. medium range
C. long range
D. minimal
ANSWER: C
58. The acronym SWOT stands for
A. SpecialWeapons for Operations Timeliness
B. Services, Worldwide Optimization and Transport
C. Strengths, Weakness, Opportunities and Threats
D. None of the above
ANSWER: C
59. Which of the following is a key external factors that should be taken into account by a corporate
strategy?
A. economic conditions
B. political conditions
C. legal environments
D. competition
ANSWER: D
60. The two internal elements of SWOT analysis are
A. weaknesses and threats
B. opportunities and threats
C. strength and weaknesses
D. strengths and threats
ANSWER: C
61. Porter's generic strategies are
A. Low price, differentiation, focus
B. Cost leadership, differentiation, cost focus, focus differentiation
C. Price leadership, differentiation, focus
D. Low cost, differentiation, focus differentiation
ANSWER: B
62. In Porter's generic strategies model, a focus strategy involves
A. selling a limited range of products
B. selling to a narrow customer segment
C. selling to one region only
D. selling simple products that are cheap to produce
ANSWER: B
63. A question for business level strategy would be
A. Which industries do we want to be in?
B. How should the businesses be related?
C. How should the business compete in its market?
D. How should resources be shared amongst the businesses?
ANSWER: C
64. The term corporate strategy concerns strategy and strategic decisions
A. In certain types of organization
B. At all levels in an organization
C. Developed by the senior management in an organization
D. In the private sector only
ANSWER: B
65. Ansoff's growth vector matrix is used for
A. analyzing the different strategic directions an organization can pursue
B. analyzing the balance of the portfolio
C. assessing whether the corporate parent is adding value
D. assessing the market share of a business
ANSWER: A
66. In Ansoff's matrix, product development involves going in the direction of
A. present products to present markets
B. present products to new markets
C. new products to present markets
D. new products to new markets
ANSWER: C
67. What are the decisions and actions that determine long-run performance of an organization?
A. strategies
B. missions
C. goals
D. opportunities
ANSWER: A
68. ______ is the collection of managerial decisions and actions that determine the long-run performance of
an organization
A. planning
B. goal-oriented management
C. strategic management
D. leadership
ANSWER: C
69. Why is strategic management important?
A. It has little impact on organizational performance
B. It is involved in many of the decisions that managers make
C. Most organizations do not change
D. Organizations are composed of similar divisions and functions
ANSWER: B
70. ______ and ______ are outcomes from a study of the external environment
A. Threats and Weaknesses
B. Strengths and Weaknesses
C. Weights and Measures
D. Opportunities and Threats
ANSWER: D
71. _______ are the organizations major value creating skills, capabilities and resources that determine the
organizations competitive weapons
A. Strengths
B. Opportunities
C. Core competencies
D. Weaknesses
ANSWER: C
72. An example of a core competency of a firm is
A. the corporate reputation
B. communicating with customers in their own languages worldwide
C. developing least squared exemptions within its accounting system
D. evaluating tangible and intangible assets
ANSWER: B
73. The merging of analysis of internal and external factors influencing the organizations strategy is known
as
A. complete studies
B. organizational behavior and theory
C. definitional analysis
D. SWOT analysis
ANSWER: D
74. Middle level managers typically are responsible for ------ strategies
A. business
B. organizational
C. operational
D. corporate
ANSWER: A
75. _________ strategy determines what businesses an organization should be in
A. Business
B. Organizational
C. Operational
D. Corporate
ANSWER: D
76. An organization that is diversifying its product line is exhibiting what type of growth strategy?
A. stability
B. retrenchment
C. growth
D. maintenance
ANSWER: C
77. A stability strategy is particularly appropriate when
A. the firm is facing rapid growth opportunities
B. the industry is in a state of rapid upheaval
C. an organization is not meeting its goals
D. an organizations performance is declining
ANSWER: B
78. A _______ strategy addresses organizational weaknesses, helps stabilize operations and revitalizes
organizational resources and capabilities
A. unrelated diversification
B. horizontal integration
C. vertical integration
D. retrenchment
ANSWER: D
79. An organization is said to have _______ when it has several different businesses that are independent
and that formulate their own strategies
A. operational units
B. strategic business units
C. competitive advantages
D. legal subunits
ANSWER: B
80. Which of the following is a force in the Porter's five forces model of industry attractiveness?
A. opportunity for new entrants
B. opportunity for substitutes
C. bargaining power of suppliers
D. sustainable competitive advantage for customers
ANSWER: C
81. Functional level strategy directly supports
A. corporate strategy
B. business strategy
C. differentiation strategy
D. focus strategy
ANSWER: B
82. International business transactions include
A. all commercial transactions between two or more countries
B. private, but not governmental, commercial transactions between two or more countries
C. governmental, but not private, commercial transactions between two or more countries
D. only commercial transactions between two or more countries that are entered for the purpose of
making a profit
ANSWER: A
83. Managers should study international business because
A. international business comprises a large and growing portion of the worlds total business
B. global events and competition affect almost all companies
C. a company operating internationally will engage in modes of business that differ from those it is
accustomed to domestically
D. all of the above
ANSWER: D
84. What would NOT be a reason for a company to engage in international business?
A. To maximize competitive risk
B. To acquire resources
C. To expand sales
D. To diversify sources of sales and supplies.
ANSWER: A
85. International business has grown rapidly in recent decades for all the following reasons EXCEPT
A. rapid expansion of technology
B. liberalization of governmental policies on cross-border movement of trade and resources
C. development of institutions to support and facilitate international trade
D. increased cost of labor in both the lesser-developed and developing countries
ANSWER: D
86. International business has recently grown at such a rapid pace because of
A. stricter government policies on cross-border movements
B. development of institutions to support and facilitate trade
C. decreasing global competition
D. companies increased concerns with terrorism
ANSWER: B
87. Which of the following best describes the mode of international business used by most companies?
A. mixed ventures
B. foreign direct investment
C. joint ventures
D. exporting and importing
ANSWER: D
88. Exports and imports apply mostly to which of the following?
A. services
B. merchandise
C. intellectual property
D. licensing
ANSWER: B
89. An investment that gives the investor a controlling interest in a foreign company is known as which of
the following?
A. foreign portfolio investment
B. foreign direct investment
C. mixed venture
D. pure venture
ANSWER: B
90. In order to have controlling interest in a foreign company
A. an investor must have at least 100 % interest in the foreign company
B. an investor must have at least 50% interest in the foreign company
C. an investor may hold a minority stake if the remaining ownership is widely dispersed
D. an investor must make all decisions at headquarters about the foreign company
ANSWER: C
91. The strategic management process is
A. a set of activities that is guaranteed to prevent organizational failure
B. a process concerned with a firms resources, capabilities, and competencies, but not the conditions in
its external environment
C. a set of activities that to date have not been used successfully in the not-for-profit sector
D. a dynamic process involving the full set of commitments, decisions, and actions related to the firm
ANSWER: D
92. Strategic mission
A. is a statement of a firms unique purpose and scope of operations.
B. is an internally-focused affirmation of the organization's societal and ethical goals.
C. does not limit the firm by specifying the industry in which the firm intends to compete.
D. is developed by a firm before the firm develops its strategic intent.
ANSWER: A
93. The _______________ has its own business strategy, objectives and competitors and these are often
differ from parent company
A. Strategic Business Unit structure
B. Matrix structure
C. Divisional structure
D. None of given option
ANSWER: A
94. The vision and mission statement can often be found
A. in the SEC report
B. in annual reports
C. on customer receipts
D. on supplier invoices
ANSWER: B
95. Which statement should be created first and foremost?
A. Strategic
B. Vision
C. Objectives
D. Mission
ANSWER: B
96. The purpose of a mission statement is to declare all of these except
A. a reason for being
B. an annual financial plan
C. a statement of purpose
D. a statement of beliefs
ANSWER: B
97. As indicated in the strategic-management model, a clear _______ is needed before alternate strategies
can be formulated and implemented.
A. long-term objective
B. short-term objective
C. policy
D. mission statement
ANSWER: D
98. The mission statement answers which question?
A. What is our business?
B. How can we improve ourselves?
C. What do we want to become?
D. Who are our stakeholders?
ANSWER: A
99. The vision statement answers which question?
A. What is our business?
B. How can we improve ourselves?
C. What do we want to become?
D. Who are our stakeholders?
ANSWER: C
100. In the process of developing a mission statement, it is important to involve
A. as few managers as possible
B. as many managers as possible
C. upper-level management only
D. lower-level management only
ANSWER: B
101. The process of developing a mission statement includes which of these as the first activity?
A. A request to modify the current document
B. Ask managers to read selected articles about mission statements
C. Ask managers to prepare a mission statement for the organization
D. A merging of several mission statements into one document
ANSWER: B
102. What can be used to promote unbiased views and to manage the development of the mission and
vision statement more effectively?
A. an internal group
B. a committee of managers
C. command-and-control
D. a facilitator
ANSWER: D
103. An effective mission statement is all of the following except
A. It reflects judgments about future growth directions that are based upon forward-looking external and
internal analyses
B. It provides useful criteria for selecting among alternative strategies
C. It provides a basis for generating and screening strategic options
D. It is static in orientation
ANSWER: D
104. Good mission statements identify the ______ of a firms products to its customers
A. utility
B. price
C. profit margin
D. demand
ANSWER: A
105. Effective mission statements can vary in
A. length
B. content
C. format
D. all of the above
ANSWER: D
106. Which component of a mission statement addresses the firms distinctive competence or major
competitive advantage?
A. Technology
B. Philosophy
C. Concern for public image
D. Self-concept
ANSWER: D
107. Which component of a mission statement addresses the basic beliefs, values, aspirations, and ethical
priorities of the firm?
A. Technology
B. Philosophy
C. Concern for public image
D. Customers
ANSWER: B
108. Effective mission statements
A. are usually changed every few months
B. are usually changed every few years
C. never require revision
D. stand the test of time and require little revision
ANSWER: D
109. Developing a vision and mission, identifying an organization's external opportunities and threats, and
determining internal strengths and weaknesses are all __________ activities.
A. Strategy formulation
B. strategy implementation
C. long range planning
D. short range planning
ANSWER: A
110. The means by which long term objectives will be achieved are
A. mission statements
B. strategies
C. vision statements
D. long term goals
ANSWER: B
111. Which type of strategies are of particular importance to global companies?
A. Corporate
B. Functional
C. Competitive
D. Corporate and Competitive
ANSWER: C
112. Which one of the following would not be considered as a functional strategy?
A. Financial
B. Marketing
C. Product-Market
D. Operations
ANSWER: C
113. ____________ refers to the strategies and counter strategies of a firm that compete in a shared market
place
A. Retrenchment strategy
B. Competitive gaming
C. Business strategy
D. Corporate strategy
ANSWER: B
114. ____________ is also referred to as external strategic management audit
A. Organizational analysis
B. Environmental analysis
C. Industry analysis
D. None of the above
ANSWER: C
115. ________ are external forces affecting organizations
A. Technological forces
B. Political forces
C. Economic forces
D. All of the above
ANSWER: D
116. Situation analysis allows the organization to examine
A. external factors only
B. internal factors only
C. the organizations top management only
D. both external and internal factors
ANSWER: D
117. __________ is identifying opportunities and threats affecting their business
A. Organizational analysis
B. Environmental analysis
C. Industry analysis
D. Competitive analysis
ANSWER: B
118. _______helps to perceive opportunities that might be explored and threats that need to be contained
A. Organizational analysis
B. Environmental analysis
C. Industry analysis
D. Competitive analysis
ANSWER: B
119. ___________ involves surveillance of a firm's external environment to predict environmental changes
to come and detect changes already under way
A. Environmental scanning
B. Environmental monitoring
C. Competitive intelligence
D. Environmental forecasting
ANSWER: A
120. _____________ involves the development of projections about the direction, scope, speed and
intensity of environmental change
A. Environmental scanning
B. Environmental monitoring
C. Competitive intelligence
D. Environmental forecasting
ANSWER: D
121. _________ begins with identifying the industry's dominant economic features and forming a picture of
the industry landscape
A. Organizational analysis
B. Industry analysis
C. Environmental analysis
D. Competitive analysis
ANSWER: B
122. In business, __________ generally refers to the fight for market share which serves the same basic
customer needs
A. Competition
B. Composition
C. Rivalry
D. None of the above
ANSWER: A
123. A young industry that is beginning to form is considered to be in __________ stage
A. Introduction
B. Growth
C. Shakeout
D. Maturity
ANSWER: A
124. Explosive growth cannot be maintained indefinitely. Sooner or later, the rate of growth slow and the
industry enters the
A. Embroynic stage
B. Growth stage
C. Shakeout stage
D. Maturity stage
ANSWER: C
125. The five forces model developed by ________ has been the most commonly used analytical tool for
examining competitive environment
A. Michnal E. Porter
B. Lewis Charter
C. Barrywell
D. Schwiz
ANSWER: A
126. The first of Porters Five Forces model is the
A. Intensity of rivalry among industry competitors
B. Threats of new entrants
C. Bargaining power of suppliers
D. Bargaining power of buyers
ANSWER: B
127. __________ refers to the ability of buyers to bargain down prices charged by firms in the industry or
driving up the costs of the firm by demanding better product quality and service
A. Bargaining power of suppliers
B. Threats of new entrants
C. Bargaining power of buyers
D. Threat of substitute products
ANSWER: C
128. __________ are the resources, skills or other advantages a firm enjoys relative to its competitors
A. Weakness
B. Strength
C. Threat
D. Opportunities
ANSWER: B
129. A _________ is a limitation or deficiency in resources, skills and capabilities that seriously impede
effective performance
A. Strength
B. Threat
C. Opportunities
D. Weakness
ANSWER: D
130. Robert Kalpan and David developed the balanced score card in the early _____ as a performance
measurement system
A. 1991
B. 1990
C. 1992
D. 1995
ANSWER: B
131. ______________ are defined as resources, skills and attributes of an organization that are essential to
deliver success in the market place
A. Balanced score card
B. Industrial analysis
C. Core competencies
D. Critical success facotrs
ANSWER: D
132. ________ is a widely used framework to summarize a company's situation or current position
A. SWOT analysis
B. TOWSmatrix
C. Ansoff's matrix
D. BCG matrix
ANSWER: A
133. The concept Core competence was developed by
A. Schwiz Marker
B. Peter Schiffman
C. Prahalad and Gary
D. None of the above
ANSWER: C
134. In __________ strategy firms try to achieve a high levels of local responsiveness by making their
product or service offering to the requirement of the countries they operate
A. Global
B. Multidomestic
C. International
D. Transnational
ANSWER: B
135. In __________ strategy assumptions are made that consumers needs are similar worldwide
A. Global
B. Multidomestic
C. International
D. Transnational
ANSWER: A
136. ______________ strategy involves adopting a combined approach of low costs and high local
respnsiveness simultaneously by the firms for their products and services
A. Global
B. Multidomestic
C. International
D. Transnational
ANSWER: D
137. ___________ is also known as corporate appraisal, appraisal of internal factors and audit of
organizational competence
A. Organizational analysis
B. Environmental analysis
C. Industry analysis
D. Business analysis
ANSWER: A
138. _________________ is the process through which an organization evaluates its capability so as to
have competitive advantage at market place
A. Environmental analysis
B. Organizational analysis
C. Industry analysis
D. Business analysis
ANSWER: B
139. ______________ is called as a bundle of resources
A. Industry
B. Unit
C. Organization
D. Management
ANSWER: C
140. ____________ assesses the whole strategic management process
A. Strategic audit
B. Company audit
C. Business audit
D. None of the above
ANSWER: A
141. __________ of an organization deals with investigation of organizational strengths and weaknesses by
focusing on factors which are relevant to it
A. External analysis
B. Internal analysis
C. Industry analysis
D. Business analysis
ANSWER: B
142. _________ strategies are also known as grand or root strategies
A. Corporate
B. Business
C. Functional
D. Operational
ANSWER: A
143. _________ strategy is much talked and publicized in the present Indian environment
A. Corporate
B. Business
C. Functional
D. Growth
ANSWER: D
144. Developing a __________ is like having a dream to be covered into reality in future
A. Mission
B. Objectives
C. Goals
D. Vision
ANSWER: D
145. First step in developing a vision statement is
A. Targeting the vision
B. Developing future scenarios
C. Setting vision context
D. Conducting vision audit
ANSWER: D
146. ------ arises when a firm is able to perform an activity that is distinct from competitors
A. competitive advantage
B. focus
C. cost leadership
D. logic
ANSWER: A
147. SBU stands for
A. satisfied business unit
B. stratified business unit
C. strategic building unit
D. strategic business unit
ANSWER: D
148. The word strategy originated from----
A. 'stratagos'
B. stratum
C. statistics
D. straight
ANSWER: A
149. ETOP stands for-----
A. Environmental threat and opportunity profile
B. Economic threat and Opportunity profile
C. Enhanced technology and opportunity profile
D. none of these
ANSWER: A
150. Firms that practice unrelated mergers------
A. conglomerate
B. hostile
C. friendly
D. retrenchment
ANSWER: A