830001-Strategic Management 2010 Module-1 Short Question 1. What is strategic management? 2. What are the major 4 steps in strategic management process? 3. List down various stakeholders. 4. Explain how community as a market related stakeholder would affect to the business? 5. Assumptions of I/O model 6. Explain the meaning of purpose/objective with suitable examples. 7. Differentiate between financial objectives and strategic objectives. 8. Explain the relationship between strategy and business model. 9. “A picture of a future path which indicates what the firm wants to be…” – explain. 10. How a firm can assess the impact of the driving forces? 11. Discuss common guidelines for choosing variables for strategic group mapping. 12. Why it is important to study the external environment for every business firm? 13. What is KSF? 14. Give an example of strategic group mapping. 15. When bargaining power of buyer becomes strong? 16. How seller and supplier partnerships can create competitive pressures. 17. Enumerate the major threats of entry for new entrants in an industry. 18. List various industries’ dominant economic features. 19. Give the components of a company’s macro environment. 20. Draw the diagram of porter’s five force model and explain one force in detail. 21. What is strategic inflection point?
Long Question 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
What is strategy? How the firm can achieve above average return? Explain the assumptions of I/O model. According to I/O model, what should a firm do to earn above-average return? What is resource based model of achieving average above return? Explain with the help of suitable diagram. “Good strategy + Good management = Good Management” – Explain. What are stakeholders? How do three primary stakeholder groups influence or affect to the organization? What are the elements of strategic management process? Explain the hierarchy of strategic decision making levels. What are vision, mission and objective? Also explain the characteristics of vision and mission. Give minimum three real world examples of each. “Business strategies are partly proactive and partly reactive” – Explain. Why it is important for a firm to study and understand the external environment? What is the external environmental analysis process? What does the firm wants to
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830001-Strategic Management 2010 13. 14. 15. 16. 17. 18. 19. 20.
learn when using this process? What are the major segments of general environment? “The external environment is the set of factors that directly influences the firm” – explain it with the help of PEST model. How the five forces of competition in an industry do affects its profit potential? Explain. What are the basic steps in positioning on a strategic group map? What are the common types of key success factors found in an industry? Distinguish on major points between vision and mission. Explain the role of corporate decision making in making strategic formulation. What factors are driving industry changes and what impacts will they have? Explain in detail.
Multiple Choice Questions 1. In strategic thinking, how long is the strategic thinking period that can be best implemented, approximately? a) A week to a month b) 1 to 12 months c) 1 to 5 years d) More than 5 years e) None of the above f) All of the above 2. What are next 3 steps after strategic analysis in strategy process? a) Deliberate strategy, emergent strategy, realized strategy b) Appraisal of strength and weaknesses, choice and implementation c) Strategy selection, strategy implementation and strategic control d) None of the above 3. Which of the following parameters appears in the mission model? a) Purpose, Values, Strategy and Standards of behavior b) Aims, Goals, Objectives and Constraints c) Policies, Plans, Controls and Constraints d) Environment, Resources, Beliefs and Ethical Standards e) Strength, Weakness, Opportunity and Threats 4. Withdrawal, consolidation and building are examples of.... what? a) Corporate Strategies b) Directional Strategies c) Strategy Alternatives d) Grand Strategies e) Strategic Direction f) None of the above 5. I/O model and resource based model is aiming at…. a) Core Competency b) Competitive Advantage c) Above Average Return d) Nominal Return Sanjay Joshi SRIMCA
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e) None of the above To find out what a strategy is, you should… a) Read the mission Statement b) Look at what the organization actually does c) Read the strategic Plan d) Ask to the CEO or any Employee. Which of the following statement is NOT true when describing a successful strategy? a) It provides some property that is unique b) Provides means for renewing competitive advantage c) Addresses changes in the environment d) It guarantees long term survival In the context of strategic management, resources can be defined as… a) The knowledge and skills within the organization b) Sometimes organization owns and controls that cannot be copied c) Sometimes organization owns, controls or has access to on a semi-permanent basis d) The physical assets of the organization In the context of strategic management, stakeholders can be defined as… a) An individual or group with a financial stake in the business b) An external individual which is able to impose constraints c) Internal group or individual that influence strategic direction d) An individual and group with an interest in the organizations activity who seeks to influence them In the case, where an organization acquires its supplier, then it is the example of… a) Horizontal Integration b) Forward Vertical Integration c) Backward Vertical Integration d) Downstream Vertical Integration In terms of PEST analysis, the liberalization of international trade and tariff regimes could go in which section? a) Political and Legal b) Economical c) Socio-cultural d) Technological e) All of the above f) A and B both Typically profits are highest in which stage of the industry life cycle? a) Introduction b) Growth c) Maturity d) Decline e) All of the above The resource based view of the firm can also be described as… a) The outside-in approach
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830001-Strategic Management 2010
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b) The inside-out approach c) The outsider approach d) The insider approach If resource is INIMITABLE then a competitor finds it… a) Easy to copy b) Easy to acquire c) Difficult to copy d) A and B both Which type of assets can be considered as the most heterogeneous? a) Human b) Physical c) Financial d) Intangible The essence of strategy is… a) to capitalize on rival’s weaknesses b) to match the firm’s internal strength to the opportunities available c) to control the firms industry environment d) to develop as may distinctive competency as possible A vision statement says… a) Sets the firm’s boundary and provides a sense of direction b) Sets the specific results to be obtained within a given period of time c) States what business the firm is in d) Describes the firms aspirations to achieve some higher purposes Corporate strategies for diversified firm… a) Entails extensive portfolio analysis b) Asks how to build competitive advantages c) Asks what sets of business the firm should operate d) Seeks to mitigate over weaknesses
19. Which of the following tends to decrease the degree of rivalry within an industry? a) the absence of clear industry leader b) a low cost fixed structure c) slow growth within the industry d) undifferentiated products 20. Strategic groups are… a) Firms within an industry that pursue similar strategy b) Firms within an industry that form alliances with each other c) Firms within an industry that agree not to compete with each other d) Relatively fixed
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830001-Strategic Management 2010 True FALSE 1. The company’s strategy partly proactive actions to improve the company’s financial performance and secure competitive edge. 2. Strategic thinking is a continuous process. 3. When buyer demand is weak or declining, buyer bargaining power is also weak. 4. Proven ability to improve production processes is the example of manufacturing related Key Success Factors. 5. Corporate level strategies are generally consists daily routine thinking and require more of technical skills. 6. A firm’s distinctive competency arises out of competitive advantages it holds over its rival. 7. Senior management is usually the group in a firm that is most responsible for the company’s strategic management. 8. Stakeholders are the owners of a corporation. 9. Changes in the general environment tend to have different implications for different industry. 10. Barriers to entry are legal prohibitions to expansion of the number of competitors in an industry. 11. Competition among the firms in a strategic group is usually more intense than that between strategic groups. 12. Competitive intelligence gathering is a form of environmental scanning that seeks to identify the changes in the macro environment. 13. Carbonated soft drinks would have the lowest threats of substitute product. 14. A strategic group mapping can shift over a period of time. 15. Absence of a clear industry leader tends to decrease the decrease the rivalry within an industry. 16. Business Model and strategy is no longer interrelated with each other. 17. Financial institution are comes under product market stakeholder in business. 18. The variable must be identical while mapping a firm’s competitiveness in an industry. 19. Key Success Factors are attributes that spell the difference between profit and loss and competitive success and failure. 20. Supply chain management is the manufacturing related key success factors.
Fill in the blanks: 1. Strategy is generally understood as __________________ and __________________ to compete successfully in the market place. 2. ___________________ have much more interest in the business relate to some form of return on their investments. 3. Rightfully except the business to be good citizens in their society are known as________________. 4. How do we make money in this business is a _________________________. 5. Generally ____________________________ analysis makes good business sense or business model. Sanjay Joshi SRIMCA
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830001-Strategic Management 2010 6. ____________ deals with company’s competitive initiatives and business approaches while ________________________ whether revenues and costs flowing is viable. 7. Good strategy + Good strategic execution = _______________________________ 8. Identifying the specific competitive pressures is the first step in analyzing ___________________________. 9. _________________________ are the major underlying causes of changing industry and competitive conditions. 10. One technique to reveal different competitive positions of industry rivals is known as________________________________. 11. Identifying the competitive characteristics is the first step in ____________________. 12. Two variables chosen for strategic group mapping do not have to be either_________________ or __________________. 13. Strong distribution channel is the example of _____________________________ KSFs. 14. PEST model aims at __________________________ analysis. 15. ________________________ level strategic decision making is of daily and require technical knowhow. 16. ______________________ a powerful source of competition in the market place. 17. Quite often supplier, exercise considerable bargaining power over companies is the situation when _________________________ 18. _________________________ are totally uncontrollable by the individual firm. 19. __________________________ is the major threats to entry for new entrants in an industry. 20. ___________ and ______________ model aimed at above average return in the business.
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830001-Strategic Management 2010 MODULE-2
Short Question 1. List the various components of internal analysis. 2. Explain the concept of value chain. 3. Differentiate between primary activities and supportive activities. 4. What do you mean by resource in strategic context? 5. Explain the term Capabilities. 6. What is a functional area capability? 7. Explain marketing related capabilities with the help of example. 8. Differentiate between tangible and intangible resources. 9. What do you mean by Core competency? 10. What do the SWOT listings reveal? 11. Enumerate 4 major strengths for automobile industry in India. 12. Identify three steps for SWOT analysis. 13. Why the value chain activities differ among the industry firms. 14. What do you mean by competitive advantage? 15. Explain the concepts of sustainable competitive advantage. 16. Discuss four major criteria for sustainable competitive advantage. 17. What is a non substitutable capability? 18. Explain the term procurement given in supportive activities of value chain. 19. What do you mean by outsourcing? 20. “Human Resource is considered as an intangible asset” explain.
Long Question 1. How to gain competitive edge over rival? Discuss in detail. 2. “Should a strategy be deliberately planned or should it be allowed to be emerging?” Discuss. 3. Why it is important for a firm to study and understand its internal environment? 4. Are tangible resources linked more closely to the creation of competitive advantages than are intangible resources, if yes, Why? 5. What are capabilities? What must firm do to create capabilities? 6. Why firm need to outsource? Will outsourcing important in the 21 st century? If yes then why? 7. How do firm identify internal strengths and weaknesses? Why it is vital for managers to have a clear understanding of their firm’s strengths and weaknesses? 8. Discuss the application of internet in value chain activities. 9. Explain competency, core competency and competitive advantage with suitable examples. 10. What are the company’s resource strengths and weaknesses and its external opportunities and threats? Sanjay Joshi SRIMCA
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830001-Strategic Management 2010 11. Why the value chain activities of rival companies often differ? 12. Explain the value chain system for entire industry in detail. 13. Does the growing popularity of downloading music from the internet give rise to a new music industry value chain? Explain why? 14. Why business firm needs to make SWOT analysis? 15. Do the SWOT analysis for SUGAR industry in India. 16. Do the value chain analysis for any of your liking firm with suitable example. 17. Is a value chain, supply chain and demand chain management the same? Explain. 18. Explain how your business can gain competitive advantage? 19. “A company’s primary and secondary activities identify the major components of cost structure” – explain. 20. What do you mean by benchmarking? “A tool for assessing whether a company’s value chain costs are in line” – explain.
Multiple Choice Questions 1. SWOT analysis is an evaluation of the organization’s______________ strengths and weaknesses and its ____________________ opportunities and threats. f) External; internal g) Internal; internal h) External; external i) Internal; external 2. The goal of SWOT analysis is to ____________ the organization’s opportunities and strengths while _____________ its threats and _________________ its weaknesses. a) Avoid; Neutralizing; correcting b) Exploit; neutralizing; correcting c) Avoid; capitalizing; neutralizing d) Exploit; avoid; ignoring 3. What is core competency? a) Resources which critically underpin competitive advantage and that other cannot obtain b) Activities and processes needed to meet customer’s minimum requirements and therefore to continue to exist c) Key skills required for success in a particular business d) Activities that underpin competitive advantages and are difficult for competitors to imitate 4. The value chain attempts to identify those activities which add value to… a) The organization’s stakeholders b) The senior strategic managers in the organization c) the organization’s shareholders d) the customer or final user
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830001-Strategic Management 2010 5. The value chain composed of primary and supportive activities. Which answer below provides the correct components for primary activities? a) Services, HRM, marketing and sales, operations and outbound logistics b) Marketing and sales, operation, operations and outbound logistics c) Procurement, firm infrastructure, HRM, technology d) Inbound logistics, operations, outbound logistics marketing and sales, services 6. Robustness for strategic capabilities is more likely when… a) Linkages in the value network are exploited b) Core competencies are complex, ambiguous and dependent on culture c) Competences lie with specific individuals d) Core competences lie in the separate parts of the organization’s value chain 7. Which type of organizational knowledge is a source of competitive advantage? a) Explicit knowledge which is classified and formalized in a planned and systematic way b) Personal knowledge which is hard to communicate and formalize c) Customer database, market research report, management reports d) Collective and shared experience accumulated through systems, routines and activities of sharing across the organization 8. In a resource based view of strategy, what type of strategic capabilities are the source of sustainable competitive advantage? a) Unique resource and core competences b) Dynamic capabilities c) Operational excellence d) Strategic capabilities which are valuable to buyers, rare, robust and non substitutable 9. What are the three criteria for the robustness of strategic capabilities? a) Core competences, unique resources and dynamic capabilities b) Complexity, casual ambiguity and value to customer c) Complexity, casual ambiguity and rarity d) Complexity, casual ambiguity and culture/history 10. The purpose of SWOT analysis is to analyze… a) The business environment in which a firm is operating b) The strategic capabilities of an organization c) External and organizational environment d) A and B both 11. It is a simple but powerful tool for sizing up a company’s resource capabilities, deficiencies, its market opportunities and the external drivers which affects the firm’s future well being… a) Core competency b) Competitive advantage c) SWOT analysis d) Sustainable competitive advantage
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830001-Strategic Management 2010 12. An activity that a company has learned to perform well is known as… a) Core competences b) Competences c) Competitive advantage d) All of the above 13. Which of the following is the basis for competitive advantage for the firm? a) Competences b) Core competences c) Competitive advantage d) Empowered human resource 14. Online sales are the example of….. a) Potential resource strength b) Competitive advantage c) Market opportunity d) External threat 15. Which of the following identifies the primary activity that creates customer value with relates to support of other resources? a) SWOT analysis b) Competitive advantage] c) Value chain d) Supply chain e) C and D both 16. Financial activities are fall under which of the following value chain activity? a) Primary b) Secondary c) A and B both d) None of the above 17. Which of the following is a tool for assessing a company’s cost competitiveness? a) SWOT analysis b) Value chain analysis c) Activity based costing d) Procurement cost e) None of the above 18. Benchmarking is BEST defined as… a) A tool for learning which companies are best at performing particular activity b) A tool for assessing a company’s cost competitiveness c) A lowest performance of a firm in a particular activity d) All of the above e) None of the above
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830001-Strategic Management 2010 19. In value chain activity, inbound logistics are… a) Assets associated with converting inputs into final product b) Assets associated with purchasing fuel, energy, parts and components c) Assets related to sales force d) A and B both e) None of the above 20. Slowdown in market growth is …. a) A resource strength b) An external threats c) A market opportunity d) All of the above e) A and B both
True FALSE 1. A firm SWOT analysis consists of internal as well as external elements. 2. The stronger the company’s financial performance and market position, the more likely it has a well-conceived strategy. 3. Value chain analysis is simple but powerful tool for sizing up a company’s resources capabilities and deficiencies. 4. Valuable physical assets are identified as company’s resource strength. 5. Core competences are that a company has learned to perform well. 6. Competitive advantage is a competitively important activity that a company performs better than its rivals. 7. Core competence is knowledge based, residing in people and in a company’s intellectual capital and not in the balance sheets. 8. Distinctive competence is a basis for sustainable competitive advantage. 9. A company’s resource strength and resource weaknesses represent a company’s competitive assets. 10. Integrating forward or backward linkages can be a potential market opportunities. 11. Simply making lists of a company’s strengths, weaknesses, opportunities and threats is enough for SWOT analysis. 12. A company’s value chain identifies the primary activities that create wholesales and retailer value and related support activities. 13. Primary activities are those which facilitate and enhance the performance of human resources available in the organization. 14. A company’s primary and supportive activities identify the major components of its cost structure. 15. Biggest threat for the organization is in the wrong strategic group map. 16. Value chain analysis consists of three steps of identify, draw conclusion and translate into strategic action. 17. When farmer looses the fertility of the land, it is biggest weakness for the upcoming output. 18. Certain factors in a company’s external environment pose threats to its profitability and competitive well being. Sanjay Joshi SRIMCA
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830001-Strategic Management 2010 19. The value chain activities are differing among the rival companies in an industry. 20. Benchmarking entails how different company performs various value chain activities.
Fill in the blanks: 1. The goal of SWOT analysis is to ____________ the organization’s opportunities and strengths while _____________ its threats and _________________ its weaknesses. 2. SWOT analysis is an evaluation of the organization’s______________ strengths and weaknesses and its ____________________ opportunities and threats. 3. ______________________are the sources of capabilities, some of which leads to the development of the firm’s core competences or its competitive advantage. 4. ____________ is measured by a product’s performance characteristics and by its attributes for which customers are willing to pay. 5. Resources are the basic component of internal analysis leading to __________________ and ________________________. 6. _____________________ are assets that can be seen and quantified while _____________________assets that are rooted deeply in the firm’s history. 7. Knowledge, trust, managerial capability and organizational routines are the __________________________ resources. 8. Effective use of logistics management techniques would leads to __________________ functional area capability. 9. Marketing capabilities are _______________ and __________________. 10. _________________ helps a firm in neutralizing threats or exploit opportunity. 11. ______________ are capabilities that few, that if, any competitor possess. 12. Organization culture is a set of _______________ that are shared by ________________ in the organization. 13. __________________________ are involved with a product’s physical creation, its sale and distribution to buyers and its services after the sale. 14. _______________________ allows the firm to understand the part of its operations that create value and those that do not. 15. The value chain shows how a product moves from the ________________ stage to______________________. 16. Online sales channels, including websites and market places are the _____________________ related value chain activities. 17. ___________________________ is the purchase of a value creating activity from the external suppliers. 18. Firms must outsource only activities where they cannot _______________________ or where they are at ______________________ compared to competitors 19. ______________________ Capabilities do not have any strategic equivalents. 20. Carbonated soft drinks have _______________ degree of substitution effect.
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830001-Strategic Management 2010 MODULE - 3 Short Question 1. What do you mean by strategy formulation? 2. Describe three phases of strategic management process and explain where strategic formulation lies. 3. “Integrated hierarchy of strategic formulation” – Explain. 4. Give the 2 major differentiating points between corporate level strategy and business level strategy. 5. What is LOB (Line of Business)…? 6. Enlist major strategy components at corporate level decision making. 7. Define the term ‘Diversification’. 8. What is market niche? 9. Give five companies that have revamped their value chains to reduce the costs. 10. What are the key points where the firm can achieve low cost leadership successfully? 11. What is portfolio strategy and parenting strategy at corporate level? 12. Define is BCG matrix and GE multi factor matrix. 13. What is parenting strategy? What are the major decisional elements of this strategy? 14. Enlist various international strategies. 15. What do you mean by internationalization of business strategy? 16. Differentiate between merger and acquisition. 17. Why firm wants to expand their business in international market? 18. Explain the curvilinear relationship between diversification and performance. 19. What are the major reasons for acquisition? 20. What is restructuring? Discuss upon three major restructuring strategies.
Long Question 1. Define Strategic Formulation in your words. Explain business level strategy in detail. 2. What is the relationship between a firm’s customers and its business level strategy in terms of whom, what and how? Why this relationship is important? 3. What are the differences among the cost leadership, differentiation, focused cost leadership, focused differentiation and integrated cost leadership business level strategies? 4. What are the specific risks associated with using each business level strategy? 5. What do you mean by corporate level strategy? What are the major initiatives that require for it? 6. Define growth strategy. Explain each growth strategies in detail. 7. What is Low cost producer and explain the characteristics of that firm. Identify five companies which are pursuing this strategy.
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830001-Strategic Management 2010 8. “Managers at different companies have a slightly different spin on future market conditions” – Explain this by taking two valuable parameter that is company’s market target and type of competitive advantage being pursued by the firm. 9. Explain low cost provide strategy. What are the two major ways for achieving a cost advantage? 10. When low cost provider strategy works best? Explain the pitfalls of low cost provider strategy. 11. What is corporate level strategy? Why it is important for any business. 12. What are the different levels of diversification of firms can pursue by using different corporate level strategies? 13. What are three reasons firms choose to diversify their operations? And how firms do create value when using a related diversification strategy? 14. What are the two ways to obtain financial economies when using an unrelated diversification strategy? 15. Explain the term diversification in your own words. What are the incentives and resources encourage diversification? 16. What do you mean by merger and acquisition? Why are acquisition strategies popular in many firms competing in the global economy? 17. What are the traditional and emerging motives that cause firms to expand internationally? Also discuss on primary benefits of an international strategy. 18. What five modes of international expansion are available, and what is the normal sequence of their use? 19. What are the risks of international diversification? What are the challenges of managing multinational firms? 20. Identify 3 firms of your choice and write down the international strategies they have adopted.
Multiple Choice Questions 1. Strategic formulation includes which of the following elements? a) Resource allocation to define the organization relationship with its environment b) Guidelines and procedures to be used in carrying out a strategy c) A mission statement which encapsulates the philosophy and objectives of the organization d) The creation of a business vision e) All of the above 2. Corporate-level strategy addresses which of the following two related issues? a) How to compete in a given business; the application of technology b) What businesses to compete in; how these businesses can achieve synergy c) How to integrate primary activities; increase shareholder wealth d) How to improve a firm's infrastructure; how to maintain ethical behavior
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830001-Strategic Management 2010 3. Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input into its manufacturing process. This is an example of… a) Leveraging core competencies b) Sharing activities c) Vertical integration d) Pooled negotiating power 4. The risks of vertical integration include all of the following except a) Costs and expenses associated with increased overhead and capital expenditures b) Lack of control over valuable assets c) Problems associated with unbalanced capacities along the value chain d) Additional administrative costs associated with managing a more complex set of activities 5. A firm should consider vertical integration when a) The competitive situation is highly volatile b) b. Customer needs are evolving c) c. The firm's suppliers willingly cooperate with the firm d) d. The firm's suppliers of raw materials are often unable to maintain quality standards 6. __________ is when a firm's corporate office helps subsidiaries make wise choices in their own acquisitions, divestures, and new ventures. a) Parenting b) Restructuring c) Leveraging core competencies d) Increasing market power 7. __________ is when a firm tries to find and acquire either poorly performing firms With unrealized potential or firms in industries on the threshold of significant, positive change. a) Parenting b) Restructuring c) Leveraging core competencies d) Sharing activities 8. Portfolio management matrices are applied to what level of strategy? a) Departmental level b) Business level c) Corporate level d) International level
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830001-Strategic Management 2010 9. When using a BCG matrix, a business that currently holds a large market share in a rapidly growing market and that has minimal or negative cash flow would be known as a a) Cow b) Dog c) Problem child d) Star 10. 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 11. A differentiation strategy offers which of the following..? a) A broad segment something unique b) A narrow segment something unique c) A broad segment something more expensive d) A narrow segment something more expensive 12. A cement producer would be advised to follow which of the following international strategies? a) A Global strategy b) A Transnational strategy c) A local strategy d) None of these 13. If pressures to adapt to local tastes are high and pressures to lower costs are low, a firm should follow which international strategy? a) International b) Global c) Multi-domestic d) Transnational 14. The three objectives of the transnational organization are efficiency, responsiveness and: a) Flexibility b) Quality c) Adaptability d) Learning 15. Which of the followings are three major components of business units strategy? a) mission, business, and SBU goals b) marketing, advertising and pricing objectives c) mission, business unit goals, and competencies d) business mission, department mission, and daily plans e) competencies, abilities, and problem statements
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830001-Strategic Management 2010 16. Cash cows are SBU's that typically generate… a) problems for product managers b) paper losses in the long run c) large awareness levels but few sales d) a lot of competition e) large amounts of cash 17. Which of the following are mechanisms to expanding the total market? a) More overall general usage of product b) New users for existing products. c) New uses for existing products. d) All of the above. e) None of the above. 18. The goals of international marketing are to… a) Expand business activities abroad. b) Eliminate competition in international markets. c) Gain market share and increase profit. d) Create and retain customers in global markets. 19. Being a global organization means… a) Customizing the product range for each segment in part. b) Creating standardized products for homogeneous markets. c) Creating both standardized and customized products. d) Any of the above. 20. The form of a strategic alliance is likely to be influenced by… a) The market, capabilities and stakeholder expectations b) The power of each partner c) CEO discussions on the golf course d) The legal frameworks in which the alliance is established
True FALSE 1. Strategic formulation is supplies the various strategies to accomplish the necessary mission and objectives of the organization. 2. Strategic implementation is aiming at modifying the current objectives and strategies in ways to make organization successful. 3. Functional level strategies are very essential for every business which are more specific than corporate level strategies. 4. Initiating actions to boost the combined performance of the businesses the company is
the objectives of corporate level strategies. 5. A firm pursuing low level of diversification uses either a single or a dominant business. 6. Level of diversification and business performance has positive relationship. 7. When corporate relatedness is low and operational relatedness is low then it is related linked diversification. 8. The differentiation strategy is an integral set of actions taken to produce goods or services then customers perceives as being different. 9. IKEA, a global furniture retailer follows focused cost leadership strategy. Sanjay Joshi SRIMCA
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830001-Strategic Management 2010 10. Continuous success with the differentiation strategy results when the firm consistently upgrades differentiated features. 11. A flexible manufacturing system increases the rigidity of human, physical and informational resources. 12. Synergy exists when the value created by business working together exceeds the value that those same units create working independently. 13. Unrelated diversification is when a company expands into a related industry, one having synergy with the company's existing lines of business. 14. Pause strategy refers to the need for an opportunity to rest, digest, and consolidate after growth or some turbulent events - before continuing a growth strategy. 15. When a company has been unsuccessful in or has none of the strategic alternatives available, the only remaining alternative is liquidation. 16. Parenting strategies falls under business level strategies. 17. According to porter’s generic strategies,” weather to compete primarily on price or providing some distinctive points of differentiation. 18. Focused differentiation is a strategy of trying to give customers the best cost/value combination, by incorporating key good-or-better product characteristics at a lower cost than competitors. 19. According to porter, “Best cost provider strategy is often temporary and firm needs to choose accordingly. 20. Cost conscious corporate culture found in best cost provider strategy.
Fill in the blanks: 1. __________________________________ strategy establishes investment priorities and moving more resources in to the most attractive business. 2. LOB stands for _______________________________________-. 3. The three sets of recommendations must be internally ________________and fit together in a mutually supportive manner that forms an ____________________________________of strategy. 4. The purpose of all ______________________________ is to help a company understand and consider changes in its portfolio of businesses, and also to think about allocation of resources among the different business elements. 5. The BCG Growth-Share Matrix model considers two relatively simple variables like _____________________________ and ____________________________respectively. 6. ____________________________________focus on how to compete successfully in each of the lines of business the company has chosen to engage in. 7. High costs and low control is the characteristics of _______________________ as a choice of entry in global market. 8. The firm uses a __________________________strategy to offer standardized products across country markets. 9. A transnational strategy is an international strategy through which the firm seeks to achieve both ___________________________ and ________________________. 10. _____________________________ strategy in which the country manager have the autonomy to customize the firm’s product. Sanjay Joshi SRIMCA
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830001-Strategic Management 2010 11. ______________________using domestic plants as a production base goods to foreign market is an excellent initial strategy. 12. A company is said to be _________________ when it sells its goods in foreign markets at prices that are well below at which it sells domestically. 13. Business risk is scattered over a set of truly diverse industries is the advantage for ______________________________strategy. 14. __________________strategies aimed at retrenching to a narrower diversification base. 15. Vertical integration exists when a company produces its ______________________ or its ___________________________. 16. ____________________________strategy through which one firm buys a controlling or 100% interest in another firm. 17. _______________________is a strategy through which two firms agrees to integrate their operations on a relatively coequal basis. 18. The acquisition of a firm in a highly related industry is referred to as a __________________________________. 19. Increased market size, Economies of scale learning, location advantages and increasing ROI are the reasons for ________________________________________. 20. __________________has characteristics of low cost, low risk, little control and low return as a global market entry choice. 21. International diversification carries majorly two risks that is _____________________ and _____________________________.
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830001-Strategic Management 2010 MODULE - 4 Short Question 1. Enlists the principal of managerial components of the strategy execution process. 2. What are the various nuances of strategic implementation? 3. What do you mean by operationalsing the strategy? 4. Explain three components of building an organization capable of proficient strategy execution. 5. Differentiate between vertical and horizontal fit. 6. What do functional strategies and policies essentially deal with? 7. Why does the need for functional plan and policies arise? 8. What is operational implementation and operational effectiveness? 9. How well conceived policies and procedures aid or facilitate strategic execution? 10. Explain organization structure and control in brief. 11. What does it mean to say that strategy and structure have a reciprocal relationship? 12. Draw a strategic business unit form of the multi divisional structure for implementing a related linked strategy. 13. What is strategic leadership? In what ways are top executives considered important resources for an organization? 14. Why is change management different than other recent management revolution? 15. What are the most important things to do to get my managers and supervisors supporting change management? 16. What is the ROI of change management? 17. What role does leadership play for a manager? How have you demonstrated this with your managers? 18. “Strategic leadership – a dynamic balancing act” – explain. 19. How a company’s culture can promote better strategy execution? 20. Explain strong versus weak cultures.
Long Question 1. What is organization structure and control? What are the difference between strategic control and financial control? What is the importance of this difference? 2. What are the characteristics of functional structures used to implement the cost leadership, differentiation and focused business level strategy? 3. What is top management team, and how does it affect the firm’s performance and its ability to innovate and make effective strategic changes? 4. What is organizational culture? What strategic leaders must do to develop and sustain an effective organizational culture? 5. As a strategic leader, what actions could you take to establish and emphasize ethical practices in your firm?
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830001-Strategic Management 2010 6. What are the issues involved in development of functional plan and policies? What are the precaution that should be taken in implementing functional plans and policies? 7. Describe the strategic approaches that Japanese companies have adopted in terms of total quality management, zero defect management and continuous improvement. 8. Discuss the ways in which various functional policies and strategies can be integrated. 9. What organizational structures are used to implement the multi domestic, global and transnational international strategies? 10. Why is it important to study organization's culture? How will you study the culture of a manufacturing unit? 11. Compare newer form of organizational structure with the traditional structure. 12. Explain the concept of backward linkages in strategy formulation and implementation. 13. What is strategic implementation? How far is it different from strategy formulation? 14. What are the additional five managerial actions that promote the success of a company’s strategic execution efforts? 15. Do internets search on “six sigma” quality program and identify at least three companies that offer six sigma training and also find the lists of companies that have implemented six sigma programs in their pursuit of operational excellence. 16. Do an internet search to identify at least five companies that have experienced a failure of strategic leadership on the part of the CEO. 17. Dell inc. has been listed as one of Fortune’s most admiring companies for several years. What is your assessment of the company’s extensive discussion of accountability, concern for the environment, and community involvement? 18. Explain in detail the evolutionary pattern of strategy and organizational structure. 19. Discuss three important structural characteristics in detail. 20. Compare characteristics of a structures necessary to implements the related constrained, related linked and unrelated diversification.
Multiple Choice Questions 1. Select a distinguishing feature between divisional and functional structure? a) Both functional departments and divisional process departments are accountable for profits or revenues. b) Functional departments are not accountable for profits or revenues, whereas divisional process departments are evaluated on these criteria. c) None of functional departments and divisional process departments is accountable for profits or revenues. d) Both the structures are same. 2. Strategy formulation is primarily a _______________ process and strategy implementation is primarily a _____________ process. a) intellectual, operational b) operational, intellectual c) intelligent; interim d) intellectual; intellectual Sanjay Joshi SRIMCA
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830001-Strategic Management 2010 3. When strategic Management is ineffective and operational management is efficient, organization will: a) Thrive. b) Survive. c) Die Slowly. d) Die Quickly. 4. When a set of product groups are superimposed across functional departments, this creates a ________ type of organization design. a) Matrix b) M-form c) U-form d) Virtual 5. The importance of leadership as a source of organizational culture was stressed by… a) Schein b) Davis c) Selznick d) Warren Bennis 6. Some of the more significant sources of an organizations culture include all but one? a) Stakeholders b) Competitors c) Professional associations d) Strategic issues 7. Organizational culture is seen to have tremendous impact on all but one of the following… a) Commitment to distinctive ideology b) Motivation c) Performance d) Productivity 8. Individual autonomy, structure, reward orientation, consideration and conflicts are the five characteristics tapping the essence of organization’s… a) Power b) Culture c) Size d) Resources 9. Culture is so important to an organization because it helps to… a) Attract customers b) Retain customers c) Cope with the environment d) Create leaders
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830001-Strategic Management 2010 10. A leader's success will depend, to a great extent, upon which of the following... \ a) Practicing organizational culture b) Communicating OC c) Handing over OC d) Understanding OC 11. Which of the following is a change lever? a) Employee acquisition and retention b) Employee ownership c) The market and business models d) Project management e) None of the above 12. A leadership style in managing change where the management team takes the decisions, with the employees generally trusting them to do so and generally informed. a) Coercive b) Directive c) Consultative d) Collaborative 13. When there is a fit between the goals of the organization and the goals of individuals, this is known as… a) Goal fit b) Goal congruence c) Goal hierarchy fit d) Goal coordination 14. Which of the following is correct about organizational structure? a) An organization's structure would be expected to evolve as it grew larger and more diverse b) Every organization starts out with a simple structure, then moves to a functional structure before becoming divisionalised c) Network structures are superior to functional ones d) Organizational performance will suffer if the structure is not stable 15. Goffee and Jones use two variables to classify organizational cultures. These are… a) Sociability and Synergy b) Cohesion and Synergy c) Sociability and Solidarity d) Solidarity and Cohesion 16. Which of the following triggers for change is likely to be most easily accepted? a) A change in stakeholder demands b) A decline in performance c) A change in the business environment d) A change in management
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830001-Strategic Management 2010 17. When an individual exhibits 'discarding' behavior in reaction to organizational change they… a) Start to sell the benefits of the change to other employees b) Acknowledge that some of the old ways had flaws and accept that the new way needs to be adopted c) Cling to the old way of doing things although they recognize that a change has happened d) Are in total denial that any change has happened 18. Two types of activity that might be expected to occur close to the beginning of most successful change programmes are… a) 'Mergers' and 'acquisitions' b) 'Empowering and building competence and confidence' and 'Spreading and consolidating change' c) 'Institutionalizing the new routines' and 'preparing for the next round of change' d) 'Building a sense of need, urgency, and commitment' and 'Developing and communicating a shared vision of change' 19. A change agent can be defined as… a) A top management expert who knows all parts of the organization b) External consultants who analyze the organization and recommend the changes that need to take place c) The person or group in an organization that people try to influence in order to get their personal concerns addressed within the organization's strategy d) A person or group of people who take on the role of promoting change within an organization 20. Buchanan and Boddy suggest fifteen roles for a change agent which they have classified into five 'clusters'. These are goals, roles, communication, negotiation and… a) Managing up b) Managing down c) Managing outward d) Managing inward
True FALSE 1. The funding requirement of a new strategy must drive how capital allocations are made and the size of each unit’s budgets. 2. Well conceived policies and procedures aids strategy execution. 3. Organizational climate specifies the firm’s formal reporting relationship, procedures, controls and authority and decision making processes. 4. A firm’s strategy specifies the work to be done and how to do it, given the firm’s strategy and strategies. 5. Strategic controls guide the use of strategy, indicate how to compare actual results, and suggest corrective actions. 6. Financial controls are largely subjective criteria intends to verify that the firm is using appropriate strategies for the conditions in the external environment. 7. Strategy and its control have a reciprocal relationship. Sanjay Joshi SRIMCA
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830001-Strategic Management 2010 8. The multi divisional structure consists of operating division, each representing a separate business or profit center. 9. The worldwide product divisional structure supports use of the global strategy. 10. The competitive form is a structure drawing characteristics and mechanisms from both worldwide geographic area and the worldwide product divisional structure. 11. The ability to attract and then manage human capital may be the most critical of the strategic leader’s skills. 12. The primary responsibility of effective leadership rests at any level of the level of organization structure. 13. Tolerance of ambiguity, commitment to the firm and degree of self confidence is the characteristics of the organization as a whole. 14. Determining the strategic direction involves specifying the image and character the firm seeks to develop over a time. 15. Effective strategic leadership is no more interested in sustaining organizational culture. 16. Shareholders capital involves relationship inside and outside the firm that help the firm accomplish task and create value for customers and society. 17. Organizational culture is composed of the key individuals who are responsible for selecting and implementing the complex ideologies. 18. Structural modifications entail the creation or disbandment of departments or managerial position. 19. Business level strategy deals with a relatively restricted plan which provides the objectives for specific functions for the allocation of resources. 20. The process of developing functional plan and policies may range from the formal to the informal.
Fill in the blanks: 1. ____________________________specifies the firm’s formal reporting relationships, procedures, controls and authority and decision making processes. 2. A company’s ___________________________________ can either assist the cause of good strategy execution or be a barrier. 3. Policies and procedures promote the creation of a ________________________ that facilitate good strategic execution. 4. _________________________________provides the opportunity to explore to competitive possibilities and then allocate resources to activities. 5. BMW stands for_________________________________________. 6. ____________________________________guide the use of strategy, indicate how to compare actual results with expected results. 7. _______________________are largely subjective criteria intended to verify that the firm is using appropriate strategies for the conditions in the environment. 8. __________________________are largely objective criteria used to measure the firm’s performance against previously established quantitative standards. 9. _______________________________is a structure in which the owner-manager makes all major decisions and monitors all activities. 10. ________________________________consists of operating divisions, each representing Sanjay Joshi SRIMCA
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830001-Strategic Management 2010 a separate business or profit center. 11. This structure allows for functional specialization, thereby facilitating active sharing of knowledge within each _______________________________. 12. In the ______________________________________________, decision making authority is centralized in the world wide divisions’ headquarters to coordinate and integrate decisions and actions. 13. ______________________________is taking entrepreneurial actions using a strategic perspective. 14. _____________________is ability to anticipate, envisions, maintain flexibility and empower others to create strategic change as necessary. 15. The ability to attract and then manage human capital may be the most critical of ____________________________________. 16. The top management team is composed of the key individuals who are responsible for ______________________and ______________________the firm’s strategy. 17. _____________________________________is composed of individuals with different functional backgrounds, experience and educations. 18. _____________________________refers to the knowledge and skills of a firm’s entire workforce. 19. At McDonald’s, the firm us trying to build an _____________________________, which suggests that individuals can begin their career as a teenager. 20. ____________________________________is defined as a complex set of ideologies, symbols, and core values that are shared throughout the firm and influence the way business is conducted.
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830001-Strategic Management 2010 MODULE - 5 Short Question 1. What is the basic nature of strategic evaluation? 2. Differentiate between strategic control and operational control? 3. Explain the basic approach used in strategic control. 4. How can strategic control help in resource allocation? 5. “Companies should evaluate performance on the basis of a combination of quantitative and qualitative criteria”. Why? 6. What issues are important in measuring performance? 7. In what different forms may deviation between actual performance and standards occur? How can they be checked? 8. How strategists initiate corrective actions? 9. How can a memorandum of understanding are used as an evaluation technique for performance of public enterprise? 10. What do we mean by business ethics? Where do ethical standards come from? 11. Differentiate between ethical universalism and ethical relativism. 12. “Ethical relativism equates to multiple set of ethical standards” – explain. 13. What do you by moral? Explain three categories of management morality. 14. Do companies strategies need to be ethical? Explain. 15. “Company culture that puts the bottom line ahead of ethical behavior” – Explain. 16. What do we mean by social responsibility? 17. What is the relationship between strategy and social responsibility? 18. How much attention to social responsibility is enough for any business organization? 19. What do you mean by the damage control approach? 20. What is corporate governance? Why it is necessary to control managers’ decisions?
Long Question 1. Write a descriptive note on nature and importance of strategic evaluation. 2. How will a comprehensive system of strategic control operate in a large sized business organization? 3. Describe the different element in detail that constitutes the evaluation process for operational control. 4. Write a short note on: evaluation techniques for strategic control. 5. Consider the case of any service institution of your choice, and suggests how a system of operational control will work in such an institution? 6. Describe and explain the application of the techniques for strategic control. 7. How is performance evaluation done in public enterprises in India? 8. Propose a system to be adopted for evaluating the performance of your B school. Identify the parts that relate to strategic and operational control respectively. 9. Define the term balance scorecard. Explain four key performance measures of balance Sanjay Joshi SRIMCA
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830001-Strategic Management 2010 scorecard in detail. 10. Where do ethical standards come from? Are they universe or dependent on local norms and situational circumstances? 11. Explain integrative social contracts theory in detail. 12. What are the drivers of unethical strategies and business behavior? Explain each in detail. 13. What is company’s ethical conduct? Describe and discuss four approaches to manage a company’s ethical conduct. 14. Define corporate governance in your own words. What factors account for the considerable amount of attention corporate governance receives from several parties? 15. What is an agency relationship? What is managerial opportunism? What assumptions do owners of modern corporations make about managers as agents? 16. How can corporate governance foster ethical strategic decisions and behaviors on the part of managers as an agent? 17. What is the nature of corporate governance in Germany and Japan as well as in emerging economies? 18. How is each of three internal governance mechanisms used to align the interests of managerial agents with those of the firm’s owners? 19. What is the market for corporate control? What conditions generally cause this external governance mechanism to become active? 20. Explain five components of socially responsible business behavior in detail.
Multiple Choice Questions 1. From the process point of view, which is the best statement of the purpose of control? a) To enable the system to adapt to environmental changes b) To know in advance what is likely to happen c) To minimize change from predetermined standards d) To ensure that the plan is achieved e) To provide information for managers to act 2. Schemes such as the Balanced Scorecard have been proposed to reduce the dominance of which type of measures? a) Quantitative b) Feedback c) Finance and accounting d) Customer satisfaction e) Productivity and other operations measures 3. According to Cadbury (2002), corporate governance is an issue of power and… a) Rights b) Accountability c) Profit d) Appropriability
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830001-Strategic Management 2010 4. The OECD argues that corporate governance problems arise because… a) Ownership and control is separated b) Managers always act in their own self interest c) Profit maximization is the main objective of organizations d) Stakeholders have differing levels of power 5. An organization that is owned by shareholders but managed by agents on their behalf is conventionally known as the modern: a) Conglomerate b) Corporation c) Company d) Firm 6. The term 'asymmetry of information' means information in a corporation is… a) Transferable to all stakeholders b) Not transferable to all stakeholders c) Not equally transparent to all stakeholders d) Equally transparent to all stakeholders 7. Where an organization takes into account the effect its strategic decisions have on society, this is known as: a) Corporate governance b) Business policy c) Business ethics d) Corporate social responsibility 8. The balanced scorecard approach is a framework for measuring performance based on four factors. These are 'innovation and learning', 'the customer perspective', 'the internal perspective' and… a) The key shareholder perspective b) The external perspective c) The financial perspective d) The helicopter perspective 9. The Balanced Scorecard approach has been criticized for leaving out certain measures. One of these is: a) Financial measures b) Employee satisfaction measures c) Customer satisfaction measures d) Technological innovation measures 10. How many measures do Kaplan and Norton recommend an organization should include when using the balanced scorecard approach? a) 10-20 b) 20-30 c) 50-100 d) 80-120
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830001-Strategic Management 2010 11. The overall purpose of the balanced scorecard approach is to: a) Help turn strategy into action b) Benchmark against competitors c) Measure financial performance d) Measure product quality 12. In the balanced scorecard approach quality would come under which perspective? a) The internal perspective b) The customer perspective c) The financial perspective d) The innovation and learning perspective 13. Which of the following refers to meeting the needs of the present without compromising the ability of future generations to meet their own needs? a) Corporate Social Responsibility (CSR) b) Sustainability c) Convergence d) Green Economics 14. You have come across several ethical approaches to problem solving in this module. One of those approaches has been the most influential in the history of medicine. Was it a… a) Utilitarian ethical approach b) Deontological ethical approach c) Virtue ethical approach d) Legal approach e) Categorical ethical approach 15. A teleological approach to business ethics proposes that the guiding principle should be which of the following? a) b) c) d)
People Practice Purpose Power
16. Which of the following involves looking at whether a company's basic strategies are well matched to its opportunities? a) Operating control b) Marketing control c) Strategic control d) Distribution e) Market management organization 17. Which of the following is not a type of strategic control? a) Premise control b) Strategic surveillance c) Strategic leader d) Implementable control
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830001-Strategic Management 2010 18. Corporate governance is… a) The set of mechanisms used to manage the relationship among stakeholders b) Exists when one or more persons hire the another person for decision making c) The seeking of self interests with guile. d) None of the above 19. Which of the following is NOT the defense strategy for hostile takeover? a) Poison pill b) Golden parachute c) Litigation d) All of the above e) None of the above 20. Standstill agreement is… a) Lump sum payment that are distributed to a selected group of senior executives b) Contract between parties in which pursuer agrees not to acquire any more stock of the target firm c) Dilution of stock, making it more costly for a bidder to acquire d) None of the above
True FALSE 1. 2. 3. 4.
Business ethics are basically different from personal ethics. Agency theory is same as the stakeholder theory. Ethical behavior is not in the long-term interest of businesses. Ethical business practice requires, above all else, an active awareness and consideration of the likely long-term consequence of any action. 5. Premises control serves the purpose of continually testing the assumptions to find out whether they are still valid or not. 6. Operational control is proactive, continuous questioning of the basic direction of strategy. 7. Strategic controls largely focus on external environment. 8. The measurement of actual performance and its comparison with standard or budgeted performance leads to an analysis of variances. 9. Quantitative analysis supplements the qualitative analysis by including those aspects which is not feasible to measure on the basis of numbers and figures. 10. Corporate governance is the set of mechanisms used to manage the relationship among stakeholders and to determine strategic direction. 11. Managerial opportunism exists when one or more persons hire another person or persons as a decision making. 12. Agency costs are the sum of agent costs, brokers’ costs and financial loss. 13. Typically, stakeholders monitor the managerial decisions and actions of a firm through the board of director. 14. Shareholders are a group of elected individual whose primary responsibility is to act in the management best interests. Sanjay Joshi SRIMCA
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830001-Strategic Management 2010 15. The firm’s CEO and other top level managers are outsider board of director members. 16. Executive compensation that seeks to align the interests of managers and owners through salaries and bonuses. 17. If standards are appropriately set and if means are available for measuring performance then evaluation is fairly easy task. 18. Strategic lead control is aimed at assuring that the assumptions on whose basis strategies were formulated are still valid. 19. Balance scorecard method is based on the identification of four key performance measures of production, external perspective, research and development and investment perspective. 20. According to the school of ethical relativism, the same standards of what’s ethical and what’s unethical resonate with people of most societies.
Fill in the blanks: 1. ___________ refers to meeting the needs of the present without compromising the ability of future generations to meet their own needs. 2. ________ involves looking at whether a company's basic strategies are well matched to its opportunities. 3. According to the school of _________________________ different societal cultures and customs have divergent values and standards of right and wrong. 4. ___________________________concerns the application of general ethical principles and standards to the actions and decisions of companies and the conduct of company personnel. 5. Notions of right and wrong, fair and unfair, moral and immoral, ethical and unethical are present in all ______________________________ and individuals. 6. According to___________________________________________, universal ethical principles or norms based on the collective views of multiple cultures and combine to form a “social contract” that all individuals in all situations have a duty to observe. 7. _____________________that put the bottom line ahead of ethical behavior. 8. The main objective of the damage control approach is to protect against the __________________________. 9. A company’s ______________________________is defined by the specific combination of socially beneficial activities it opts to supports with its contributions of time, money and other resources. 10. _____________________________is a set of mechanisms used to manage the relationship among stakeholders and to determine strategic direction. 11. Although corporate governance reflects company standards, it also collectively reflects country_______________________________. 12. There is considerable gap between the time when the strategy is __________________ and the time when the strategy is _________________________. 13. Standards of performance act as the ______________________against which the actual performance is to be compared. 14. BMC stands for _______________________________________. Sanjay Joshi SRIMCA
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830001-Strategic Management 2010 15. ______________________________forms a core of management control systems and are of four types: revenue, expense, profit and investment centers. 16. ___________________________________where the environment is relatively unstable, organizations are required to make strategic jump in order to make significant changes. 17. Strategic control focus on ________________________________ while operational control focus on ________________________________. 18. Many companies have officially adopted a code of _______________________ and a statement of __________________. 19. Actions to create a work environment that enhances ________________________ for employees and makes company a great place to work. 20. Companies with diversely good reputations for contributing time and money to the betterment of __________________ are better able to retain _____________________ compared to companies with tarnished reputations.
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