KARPAGAM ACADEMY OF HIGHER EDUCATION

Department of Management
Unit 1- Strategic Management-Multiple Choice Questions- Each Question Carry ONE Mark
S.No Questions Opt 1 Opt 2 Opt 3 Opt 4 Answer

administrational
1 Strategic Management handles: external issues management issues internal issues external issues
issues

objectives for
objective for Single
specific function
strategic Business
objectives of the allocation of With in that objectives of the
2 Corporate level strategy deals with: Unit
firm resources functions firm
(SBU) allocation of
among different
resources
operations

corporate strategy
corporate level, corporate level, corporate strategy corporate level,
level, business unit
3 The three organizational levels are: business level, business unit level, level, business level, business level,
level, functional
functional level functional level specialist level functional level
level

situation analysis, situation analysis,

strategy formulation, strategy formulation,
development,
The basic activities of strategic offense, defense, strategy ethics, management, strategy
4 control, and
management include: and control. implementation, and practice. implementation,
management.
and strategy and strategy
evaluation. evaluation.

The origins of business policy and

5 1930 1911 1879 1938 1911
strategic management can be traced to
 Which of the following is not a
Competitive Competitive
6 recognized element of corporate Closure Acquisition Divestment
advantage advantage
strategy?

Which one of the following would not be

7 Financial Marketing Product-market Operations Product-market
considered a functional strategy?

The means by which long-term

8 mission statements strategies. vision statements. long-term goals. strategies.
objectives will be achieved are

A strategic decision can be distinguished

from other types of decisions by three
9 Commitment Riskiness Impact Longevity Commitment
factors,
these are magnitude, time-scale and:

Strategy creation involves three strands.

10 Which of the following is not one Planning Vision Entrepreneurship Emergent strategies Entrepreneurship
of the three stands?

11 Strategy analysis is also referred to as: SWOT analysis Strategy diagnosis Rational analysis Situation analysis Situation analysis
 only traditional opportunities,
An organization's strategies should be opportunities and resources and resources and
12 values of past threats, resources,
designed so that they incorporate: threats. capabilities. capabilities.
organizations. and capabilities.

Competitive Corporate level Business level Business level

13 Competitive strategy is also known as: Industry strategy
positioning strategy strategy strategy

how a business with

creating differences multiple physical creating differences
the industries in how functional areas
Business-level strategies are concerned between the firm's locations will between the firm's
14 which the firm will will be organized
specifically with: position and its operate position and its
compete. within the firm.
rivals. one of those rivals.
locations.

Which of the following is NOT a major

Implementing Assigning Assigning
15 element of the strategic management Formulating strategy Evaluating strategy
strategy administrative tasks administrative tasks
process?

Which would be classified as a Communities, Banks Communities, Banks

16 Communities Banks Suppliers
stakeholder? & Suppliers & Suppliers

17 What are the guides to decision making? Rules Procedures Goals Policies Policies
 Which of these is not a reason why some Competitive Honest difference of Poor reward Competitive
18 Laziness
firms do no strategic planning? leadership opinion structures leadership

What is the key variable in executing Seizing the

19 visionary strategy creation at the opportunities Formalized planning Innovation Learning Innovation
competitive strategy level? presented

Without a formal Without a strategic Without it, Because of slower Because of slower
Why of the following is the best reason strategic plan a plan an organization companies would economic growth, economic growth,
20 for why strategic planning is still company cannot can drift without exist without cause globalization and globalization and
important today? expect to purpose or or technological technological
compete effectively definition co-ordination change change

There is no There is no
What is the recommended length of an Less than 200 One sentence of 10 recommendation. It recommendation. It
21 One page
effective mission statement? words to 20 words. can be as long as the can be as long as the
management wants. management wants.

Which of the following does Campbell Differentiates the Meaningful and

States the objectives States the values of States the values of
22 (1989) suggest to be a dimension of business from relevant to
of the organization the organization the organization
valuable mission statements? competitors stakeholders

marketing, mission, business business mission, mission, business

The business unit strategy has three mission, business,
23 advertising and unit goals, and department mission, unit goals, and
major components: and SBU goals
pricing objectives competencies and daily plans competencies
 The constraints
Which one of these would not be a applied by key The personal The varying Conflicts between Conflicts between
problem for an organization attempting stakeholders upon objectives of those expectations of the product and its the product and its
24
to the within the external desired target desired
establish a unified vision or direction? organizations organization stakeholders market target market
management

A possible and desirable future state of Strategy

25 Mission Vision Strategy formulation Vision
an organization is called: implementation

What is the starting point of strategic

26 Objectives Goals Mission Vision Vision
intent?

Determining the
Analysing the ext environment and the Functional level Financial planning Strategic planning Strategic planning
27 mission of the
organisations resources are part of the: planning process process process process
business

Kets de Vries (1996) suggested strategic

Transformational Charismatic and Transformational Charismatic and Charismatic and
28 leaders have two key roles to play.
and Effective Effective and Charismatic Architectural Architectural
Which two roles are they?

Becoming blinkered Becoming blinkered

What must the strategic visionary leader Depending too
by the success of Becoming too by the success of
29 avoid in order to ensure the prolonged heavily on Being adaptable
one strategy to the ambitious one strategy to the
success of a strategy? colleagues
detriment of others detriment of others
 To help managers
To concentrate on
Which of these is not a role for a planner make decisions To enable good
30 To state objectives understanding the To state objectives
as discussed by Robinson (1986) regarding managers to plan
future
strategic changes

Which of the following is one of the

Skills and resources, Levels of return Finance and other Effect on strategic Finance and other
31 factors related to the issue of the
available and needed expected resource availability perspective resource availability
feasibility of a strategy?

What are designed to guide managers in

32 the pursuit and achievement of Procedures Budgets Policies Plans Policies
strategies and objectives?

---- is Greek word from which strategy is

33 Strategies Strategia Stratgia Strategya Strategies
coined

What are the means by which long term

34 Strategies Policies Strength Opportunities Strategies
objectives will be achieved?

External Internal
Structural planning involves through the External& Internal External& Internal
35 environmental environmental Outside
study of environmetal factors environmetal factors
factors factors
 Implement the
Are found in one- Develop their own marketing function's Develop their own
Carry out strategies
36 Strategic business units business unique way of strategic planning unique way of
assigned by the CEO
organisations competing and management competing
decisions

The slowest way to grow a business is Internal Internal

37 A merger outsourcing A strategic alliance
likely to be through: development development

Strategic decisions are affected by the Business ethics and CEO of the Business ethics and
38 Board of directors Management
value system including ---- philosophy company philosophy

The value chain is subdivided into two

Outsourced
39 main headings. These are Peripheral activities Support activities Secondary activities Support activities
activities
primary activities and:

should develop clear should develop clear

implies determined
Which of the following statements is is a time consuming and rigid plans for is most applicable in and rigid plans for
40 actions for achieving
false? Formal strategic planning process the organization stable environments the organization to
objectives
to implement implement

Managers
Managers Managers Managers
understanding of the Managers
Which of the following statements best understanding of the understanding the understanding the
organizations understanding of
41 describes the concept of strategic strategic options organizations organizations
history, current strategy and
awareness? available strategy, its strategy, its
competencies, and its effectiveness
to the organization effectiveness effectiveness
current strategy
 Creating superior Creating superior
value to customers; value to customers;
Creating and
Which of the following is associated Creating superior Exploitation of key Exploitation of key Exploitation of key
42 maintaining strategic
with successful strategies? value to customers success factors success factors; success factors;
fit
Creating and Creating and
maintaining strategic maintaining strategic

Which one of the following would not be

43 Financial Marketing Product-market Operations Product-market
considered a functional strategy?

Ensure consistency Ensure consistency

Which of the following is not suggested between desired between desired
Careful evaluation Active opportunity
44 by Markides (1999) as a factor for Synergy strategic position strategic position
of strategic options searching
competitive and strategic success? and the and the
chosen strategy chosen strategy

Which one of the following criteria does

45 not provide a means to assess Sustainability Scarcity Inimtability Synergy Synergy
strategic resources?

Which of the following is not one of the

Competitive Stakeholder Research and Organization Research and
46 four key strategic elements linked to
environment expectations development structure development
corporate objectives?

Understanding the
The understanding of what key element Understanding the Understanding the
needs and Understanding Understanding how
47 is essential for successful strategic processes of processes of
expectations of competencies to plan
planning? strategic change strategic change
stakeholders
 Which of these is not a reason for why
Anxiety regarding Lack of necessary Poor strategic Lack of necessary
48 employees resist the implementation of Lack of knowledge
jobs strategic resources leadership strategic resources
strategic changes?

Meeting stakeholder Meeting financial Meeting stakeholder

If an organization is to survive, which of
49 Supernormal profits Market share needs and targets and needs and
the following is most essential?
expectation satisfying investors expectation

its efforts to overall strategy for overall strategy for

The corporate level is where top all employees for overall sales
50 stabilize recruitment the entire the entire
management directs: orientation projections
needs organization organization

Coping with Problem solving to

Which of the following activities is most Planning and
51 organizational Formulating strategy ensure strategy is Formulating strategy
likely to be a leadership activity? budgeting
complexity implemented

Organizational, Operational, Organizational, Operational, Organizational,

Cyert (1990) argues that leaders perform
52 interpersonal, interpersonal, intervention, intervention, interpersonal,
three broad functions. These are:
decision decision decision decision decision

The ---- is an expression of the growth,

53 Planning Mission Vision Range Mission
ambition of a firm
 Increasing market Competitive Competitive
54 Strategy aims at ------- Maximising profit Growth
Share advantage advantage

Heller (1998) suggested organizations

must address seven key issues effectively
55 to sustain competitive advantage. Which Effectiveness Innovation Costs Speed Speed
of the following is not one of those
issues?

Becoming blinkered Becoming blinkered

What must the strategic visionary leader Depending too
by the success of Becoming too by the success of
56 avoid in order to ensure the prolonged heavily on Being adaptable
one strategy to the ambitious one strategy to the
success of a strategy? colleagues
detriment of others detriment of others

The primary and support activities Direct activities, Direct activities, Direct activities,
Direct activities, Direct activities,
contain a further subdivision of activities indirect activities indirect activities indirect activities
57 indirect activities indirect activities
that impact and quality and peripheral and quality
and learning and development
on competitive advantage. These are: assurance activities assurance

Threats of new Threats of Threats of

Which of the following is not one of Bargaining power of Threats of
58 entrants and barriers technological technological
Porters five competitive forces? suppliers substitutes
to entry advances advances

Which type of strategies are of particular Corporate and Corporate and

59 Corporate Functional Competitive
importance to global companies? competitive competitive
 All of these, except__________, are part
potential entry of bargaining power of development of bargaining power of bargaining power of
60 of Porter's competitive forces in
new competitors suppliers substitute products union union
industry analysis.