1. The fundamental purpose purpose for the existence of any organization is described by its a. policies b. mission c. procedures d. strategy
2. The fundamental purpose of an organization's mission statement is to a. create a good human relations climate in the organization b. define the organization's purpose in society c. define the operational structure of the organization d. generate good public relations for the organization
3. The acronym SWOT stands for a. Special We Weapons apons for Operations Operat ions Timeliness b. Serices! World"ide World"ide Optimization! Optimization! and Transport Transport c. Strengths World"ide World"ide Oercome Threats d. Strengths, Weaknesses, Opportunities, and Threats
#. Which of the follo"ing is $OT a characteristic of strategic management that ma%es it different from other types of management& A. It is interdisciplinary.
. (t has an external focus. ). (t has an internal focus. *. (t concerns the present direction of the organization.
+. Which of the follo"ing is an issue considered in deeloping corporate strategies& ,. What business-es are "e in& . What direction are "e going& . What resources do !e ha"e to implement our strategies#
*. What businesses are "e in and "hat to do "ith those businesses&
/. Which of the follo"ing is $OT a ma0or element of the strategic management process& ,. ormulating strategy . (mplementing strategy ). aluating strategy $. Assigning administrati"e tasks
. )ompetitie adantage can best be described as4 A. increased efficiency.
. "hat sets an organization apart. ). a strength of the organization. *. intangible resources.
5. ,merican ,irlines starting an airfare "ar by drastically reducing prices is an example of a change in the 6666666666 enironment. ,. internal %. e&ternal
). resource *. modified enironment
7. The arious organizational routines and processes that determine ho" efficiently and effectiely the organization transforms its inputs into outputs are called4 ,. strengths. %. core competencies.
). capabilities. *. customer alue.
18. When defining strategic management the most important thing to remember is that it is4 a.
$ot as easy as you thin%
b.
9ainly the proince of senior managers
c.
A li"ing e"ol"ing process
d.
9ore conceptual than practical
e.
, "ay of determining responsibilities
11. ,n organisation's strategy4 a.
remains set in place longer than the mission and ob0ecties
b.
generally forms o"er a period of time as e"ents unfold
c. tends to be formed at the same time the mission is deeloped and ob0ecties are formulated d. is usually conceied at a single time "hen managers sit do"n and "or% out a comprehensie strategic plan for the next 3:+ years
12. The primary focus of strategic management is4 a.
strategic analysis
b.
the total organisation
c.
strategy formulation
d.
strategy implementation.
13. Which of the follo"ing is not an adantage of strategic management& a.
(t proides organisations "ith a clearer sense of direction and purpose
b. It helps impro"e the political, economic, social and technological en"ironment of the organisation
c.
(t helps orientate management decisions to releant enironmental conditions
d.
(t helps organisations be proactie rather than reactie
1#. Which of the follo"ing defines "hat business or businesses the firm is in or should be in& a.
usiness strategy
b.
orporate strategy
c.
unctional strategy
d.
$ational strategy
1+. Which of the follo"ing defines ho" each indiidual business unit "ill attempt to achiee its mission& a.
%usiness strategy
b.
)orporate strategy
c.
unctional strategy
d.
$ational strategy
1/ Which of the follo"ing focuses on supporting the corporate and business strategies& a.
)ompetitie strategy
b.
)orporate strategy
c.
Operational strategy
d.
$ational strategy
e.
9ission strategy
1. Which one of the follo"ing is not a primary tas% of strategic managers& a.
stablishing strategic ob0ecties
b.
$e"eloping the steps to follo! in implementing operational le"el plans
c.
*efining the business and deeloping a mission
d.
*eeloping a strategy
e.
(mplementing and ealuating the chosen strategy
15 The tas% of strategy choice inoles4 a. de"eloping plans and acti"ities !hich !ill impro"e the organisation's performance and competiti"e position
b.
determining ho" the organisation can be more mar%et and efficiency oriented
c.
monitoring "hether the organisation is achieing good financial performance
d.
%eeping the organisation free of debt
17. Which one of the follo"ing is at the core of strategic management& a.
)hoosing "hich organisational ob0ecties to focus on
b.
eing alert for opportunities to change "or% responsibilities
c.
Adapting the organisation to a changing e&ternal en"ironment
d.
)hoosing "hether to ma%e decisions autocratically or on the basis of participation
28 The corporate leel is "here top management directs4 ,
all employees for orientation
its efforts to stabilize recruitment needs
)
o"erall strategy for the entire organization
*
oerall sales pro0ections
21 The three organizational leels are4 A
corporate le"el, business le"el, functional le"el
corporate leel! business unit leel! functional leel
)
corporate strategy leel! business unit leel! functional leel
*
corporate strategy leel! business leel! specialist leel
22 Which of the follo"ing is an example of competing on ;uic% response& a. a firm produces its product "ith less ra" material "aste than its competitors b. a firm offers more reliable products than its competitors c. a firm's products are introduced into the mar%et faster than its competitors' d. a firm's research and de"elopment department generates many ideas for ne! products
23. Which one of the follo"ing is $OT included in the
2+. Of the follo"ing! "hich one "ould $OT be considered one of the components of a mission statement& a. The target mar%et for >?@ is oil and gas producers as "ell as producers of chemicals.
b. >?@ shall hire only those indiiduals "ho hae "ith sufficient educational leels so as to be of benefit to our customers c. The customers of >?@ shall include global and local consumers of gas and oil products and domestic users of nontoxic chemicals d. The technologies utilized by >?@ shall focus upon deelopment of alternatie sources of gas and oil so as to remain competitie "ithin the industry
)*. The strategic management process is a. a set of actiities that "ill assure a temporary adantage and aerage returns for the firm. b. a decision:ma%ing actiity concerned "ith a firm's internal resources! capabilities! and competencies! independent of the conditions in its external enironment. c. a process directed by top:management "ith input from other sta%eholders that see%s to achiee aboe:aerage returns for inestors through effectie use of the organization's resources. d. the full set of commitments, decisions, and actions re+uired for the firm to achie"e abo"ea"erage returns and strategic competiti"eness. .
)-. The goal of the organization's is to capture the hearts and minds of employees, challenge them, and e"oke their emotions and dreams. a. "ision b. mission c. culture d. strategy )/. A firm's mission a. is a statement of a firm's business in !hich it intends to compete and the customers !hich it intends to ser"e. b. is an internally:focused affirmation of the organization's financial! social! and ethical goals. c. is mainly intended to emotionally inspire employees and other sta%eholders. d. is deeloped by a firm before the firm deelops its ision.
. )0. The en"ironmental segments that comprise the general en"ironment typically !ill 1OT include a. demographic factors. b. sociocultural factors. c. substitute products or ser"ices. d. technological factors.
23. An analysis of the economic segment of the e&ternal en"ironment !ould include all of the follo!ing 4546T a. interest rates. b. international trade. c. the strength of the A.S. dollar. d. the mo"e to!ard a contingent !orkforce. 27. 6roduct differentiation refers to the8 a. ability of the buyers of a product to negotiate a lo"er price. b. response of incumbent firms to ne" entrants. c. belief by customers that a product is uni+ue. d. fact that as more of a product is produced the cheaper it becomes per unit. 2). Which of the follo!ing is 1OT an entry barrier to an industry# a. expected competitor retaliation b. economies of scale c. customer product loyalty d. bargaining po!er of suppliers 22. S!itching costs refer to the8 a. cost to a producer to exchange e;uipment in a facility "hen ne" technologies emerge. b. cost of changing the firm's strategic group. c. one:time costs suppliers incur "hen selling to a different customer. d. onetime costs customers incur !hen buying from a different supplier . 29. 1e! entrants to an industry are more likely !hen :i.e., entry barriers are lo! !hen... a. it is difficult to gain access to distribution channels.
b. economies of scale in the industry are high. c. product differentiation in the industry is lo!. d. capital re;uirements in the industry are high. 2;. Suppliers are po!erful !hen8 a. satisfactory substitutes are aailable. b. they sell a commodity product. c. they offer a credible threat of for!ard integration. d. they are in a highly fragmented industry. 2*. The highest amount a firm can charge for its products is most directly affected by a. expected retaliation from competitors. b. the cost of substitute products. c. ariable costs of production. d. customers' high s"itching costs. 2-. All of the follo!ing are forces that create high ri"alry !ithin an industry 4546T a. numerous or e;ually balanced competitors. b. high fixed costs. c. fast industry gro!th . d. high storage costs. 2/. According to the fi"e factors model, an attracti"e industry !ould ha"e all of the follo!ing characteristics 4546T8 a. lo! barriers to entry . b. suppliers "ith lo" bargaining po"er. c. a moderate degree of rialry among competitors. d. fe" good product substitutes. 20. Internal analysis enables a firm to determine !hat the firm a. can do. b. should do. c. "ill do. d. might do. 93. An e&ternal analysis enables a firm to determine !hat the firm a. can do. b. should do. c. "ill do. d. might do. 97. is
b. causally ambiguous. c. socially complex. d. "aluable. . 92. =irms !ith fe! competiti"e resources are more likely a. to not respond to competitie actions. b. respond ;uic%ly to competitie actions. c. delay responding to competiti"e actions. d. respond to strategic actions! but not to tactical actions. ##. ompetitors are more likely to respond to competiti"e actions that are taken by a. differentiators. b. larger companies. c. first moers. d. market leaders. #+. What can be defined as the art and science of formulating, implementing and e"aluating crossfunctional decisions that enable an organization to achie"e its ob>ecti"es#
b. c. d.
a. Strategy formulation Strategy ealuation Strategy implementation Strategic management e. Strategic leading #/ Which of the follo!ing is not a cultural product# a. b. c. d. e.
=ites 4motions =ituals Sagas Symbols # Which indi"iduals are most responsible for the success and failure of an organization#
a. b. c. d. e.
Strategists inancial planners
a. b. c. d. e.
forestry pharmaceuticals textiles metals paper
#7?ongterm ob>ecti"es should be all of the follo!ing e&cept8 a. b. c. d. e.
measurable. continually changing. reasonable. challenging. consistent. +8 What are guides to decision making# a. b. c. d. e.
la"s rules policies procedures goals
+1. According to @reenley, strategic management offers all of these benefits e&cept that a. b. c. d. e.
it proides an ob0ectie ie" of management problems. it creates a frame"or% for internal communication among personnel. it encourages a faorable attitude to"ard change. it ma&imizes the effects of ad"erse conditions and changes. it gies a degree of discipline and formality to the management of a business.
+2. The "ision and mission statement can often be found a. b. c. d.
in the S) report. in annual reports. on customer receipts. on supplier inoices. e. on community ne"s bulletins
+3. Which group !ould be classified as a stakeholder# a. )ommunities b. an%s c. Suppliers d. mployees e. All of these ;;. The process of performing an e&ternal audit needs to include8
a. b. c. d. e.
only top leel managers! as itCs a planning function. as many managers and employees as possible. primarily front:line superisors bet"een 1+ to 28 managers for it to be alid stoc%holders and external goernment agencies
;*. Which of the follo!ing is not a stage of strategy formulation techni+ues#
a. b. c. d.
ormulation rame"or% 9atching stage 4&ternal factor e"aluation *ecision stage
a. b. c. d.
+. ST Strategies is an important strategy to 9atch "ea%ness "ith opportunities of the firm O"ercome e&ternal threats Obtain benefit form its resources Oercome its "ea%ness and reducing threats
a. b. c. d.
;/. Strategic 6osition and Action 4"aluation atri& is used in ormulation rame"or% atching stage xternal factor ealuation *ecision stage
a. b. c. d.
;0. ash co!s are al!ays in (ntroductory industry Dro"ing industry ature industry *eclining industry
a. b. c. d.
*3. In %@ matri&, the reason for choosing relati"e market share, rather than >ust profits, is that (t carries more information than 0ust cash flo" (t sho"s "here the brand is positioned against its main competitors (t indicates "here it might be li%ely to go in the future All of the mentioned options
a. b. c. d. a. b. c. d.
*7. Those firms must make some drastic changes +uickly to a"oid further demise and possible li+uidation that fall in of grand strategy matri& Eurdant:1 Eurdant:2 Burdant2 Eurdant:# /2 . Strategyformulation concepts and tools $o not differ greatly for different size and type of organizations *iffer greatly for different size and type of organizations *o not differ greatly for profit or nonprofit organizations but differ in small and large organizations $one of the mentioned options
*2. Annual ob>ecti"es a. ,re not critical to success b. Ser"e as guidelines for action, directing and channeling efforts and acti"ities of organization members ,re not important for employee motiation and identification c.
d.
*o not proide a basis for organizational design
a. b. c. d.
*9. Annual ob>ecti"es $eed not to be consistent Should be easily achieable Should be measurable Should be confidential and not to be communicated throughout the organization
a. b. c. d.
*;. Which of the follo!ing resources is used by all organizations to achie"e desired ob>ecti"es# inancial resources!
a. b. c. d.
, pure science. ased mainly on intuition. $eeded mainly "hen organizational performance falls. %ased on the use of +uantitati"e and +ualitati"e information. *- . %usiness !eek reports that firms using mission statements ha"e a return on certain financial measures than those !ithout such statements.
a. b. c. d.
23C 3+F #8F #+F
*/. What is the best time to de"elop a mission statement#
a. b. c. d.
efore a business is opened When the firm is successful When the firm is in financial trouble When the firm is in legal trouble
*0. Which of these basic +uestions should a "ision statement ans!er#
a. b. c. d.
What is our business& Who are our employees& Why do "e exist& What do !e !ant to become#
-3. is not part of an e&ternal audit.
a. b. c.
,nalyzing competitors Analyzing financial ratios ,nalyzing aailable technologies
d.
Studying the political enironment 1. Strategic management process acti"ate in the se+uence of
a
4n"ironmental scanning, Strategy formulation, Implementation, control and e"aluation b Strategy formulation! nironmental scanning! (mplementation! control and ealuation c nironmental scanning! Strategy (mplementation! formulation! control and ealuation d Strategy formulation! (mplementation! control! ealuation! nironmental scanning -). DA6DA? 6o!erEs interested to achie"e a 73 percent return on e+uity :(O4 in their core electric utility, 79 percent (O4 on !ater resource operations, and 7; percent (O4 on support businesses. It is
a b c d
9ission Strategy Ob>ecti"e
-2. FA possible and desirable future state of an organizationG is called8
a b c d
9ission Hision Strategy implementation $one of aboe -9. FWallsG ice cream purchase F6olkaG in order to capture the market. Such kind of integration is called8
a b c d
or"ard (ntegration ac%"ard (ntegration orizontal Integration
-;. FTo impro"e economic strength of society and function as a good corporate citizen on a local, state, and national basis in all countries in !hich !e do businessG. This is a mission statement that contains8
a b c d
Self:concept conomic concern
a b c d
4n"ironmental scanning Strategy formulation Strategy control Strategy ealuation
a b c d
--. =orecasting tools can be broadly categorized into t!o groups. Those are8 Eualitatie! Operational Euantitatie! Operational Bualitati"e, Buantitati"e =egression and time series analysis
-/. identifies a firm's ma>or competitors and their particular strengths and !eaknesses in relation to a sample firm's strategic position. a b c d
ompetiti"e 6rofile atri& xternal actor aluation matrix (nternal actor aluation 9atrix oston consulting group matrix
-0. Organizing means an identifiable group of people contributing their efforts to!ards the attainment of same goal. It is important at the time of8
a b c d
nironmental scanning Strategy formulation Strategy Implementation Strategy ealuation
/3. in"ol"es assessing the costs, benefits, and risks associated !ith marketing decisions.
a b c d
)ustomer analysis Opportunity analysis 9ar%eting =esearch
/7. Which statement best describes intuition#
a (t represents the marginal factor in decision:ma%ing. b (t represents a minor factor in decision:ma%ing integrated "ith analysis. c It should be coupled !ith analysis in decisionmaking. d (t is better than analysis in decision:ma%ing. e (t is management by ignorance. /). What are the means by !hich longterm ob>ecti"es !ill be achie"ed# a. b. c. d. e.
Strategies. Strengths. Wea%nesses.
a b c d e
What is our business& Who are our employees& Why do "e exist& What do !e !ant to become# Who are our competitors& /9. When an industry relies hea"ily on go"ernment contracts, !hich forecasts can be the most important part of an e&ternal audit.
a. b. c. d. e.
economic political technological competitie 9ultinational /;. is not part of an e&ternal audit.
a. b. c. d. e.
,nalyzing competitors Analyzing financial ratios ,nalyzing aailable technologies Studying the political enironment ,nalyzing social! cultural! demographic and geographic forces /*. Which indi"iduals are most responsible for the success and failure of an organization# a b c d e
Strategists inancial planners ecti"es should be all of the follo!ing e&cept8
a b c d e
b. c. d. e.
9easurable. ontinually changing. =easonable. )hallenging. )onsistent. //. What are guides to decision making# a. la"s rules policies procedures goals
/0. Which group !ould be classified as a stakeholder# a )ommunities b an%s c Suppliers
d e
mployees All of the gi"en options 03. FIf a strategist has identified that the market gro!th rate is / C, the number of sellers in industry are ;) and the industry's products are differentiated.G Which one of the industry's key success factors he is e&ploring# a. 4conomic forces b. Social forces c. )ompetitie forces d. Social forces
07. Which type of trend can be e&emplified by the increasing numbers of t!oincome households in a society# a. Social b. 4conomic c. )ultural d. Technological 0) 4&ternal assessment is performed in !hich of the strategic management phase# a. Strategy formulation stage b. Strategy implementation stage c. Strategy ealuation stage d. ,ll of the gien options
73. 6olitical "ariables ha"e a significant effect on a. Strategy formulation and implementation b. Strategy formulation and ealuation c. Strategy implementation and ealuation d. Strategy formulation! implementation and ealuation 09. Technological ad"ancements can create !hich of the follo!ing ad"antage besides many other e&isting po!erful ad"antages for the businesses# a. conomic b. Social c. nironmental d. ompetiti"e 0;. Which one of the statements is a good e&le of the competiti"e po!er of substitute products# a. The competition bet"een cellular phones and computers b. The competition bet"een )oca:)ola!
b. )oncern for public image c. , declaration of attitude d. 6hilosophy 0-. Which of the follo!ing are signs of !eakness in a company's competiti"e position# a. , return:on:e;uity is belo" 2+F and earnings per share of less than =s. 2.88 b. , price set by the firm higher than its rials c. A declining market share, poor product +uality and fe! sales in market d. Go"er reenues and profit margin and narro" product line than the mar%et leader 0/. It directs at de"eloping ne! products before competitors do at impro"ing product +uality or at impro"ing manufacturing processes to reduce costs. a. 9ar%eting b. Opportunity analysis c. (esearch and de"elopment d. 9anagement 00. FIdentifying and e"aluating key social, political, economic, technological and competiti"e trends and e"entsG. Which of the follo!ings best describes this statement# a. *eeloping an effectie mission statement b. )onducting an internal audit c. 6erforming an e&ternal audit d. ormulating strategy
