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SUBJECT CODE: 7B, MATERIAL NO: 63

STRATEGIC MANAGEMENT_40e (PART - I)
MULTIPLE CHOICE QUESTIONS
(APPLICABLE FROM MAY 2019 EXAMS ONWARDS)

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 INDEX
[Link]. Chapter Name No. of MCQ’s Starting Page

1. Introduction to Strategic Management 20 03

2. Dynamics of Competitive Strategy 45 04

3. Strategic Management Process 20 08

4. Corporate Level Strategies 40 09

Total 125

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1. INTRODUCTION TO STRATEGIC MANAGEMENT

1. What is the earlier name of strategic management subject?
a) Business planning b) Business policy
c) Business philosophy d) Business principles

2. Business policy provides a framework for _____________.

a) Strategic Thinking b) Strategic Decision Making
c) Strategic forecasting d) All of the above

3. Business policy is also known as _____________.

a) Strategic Management
b) Comprehensive management planning and strategy
c) Strategic planning d) All of the above

4. With the help of strategy, the top level management can ____________.
a) Conduct operations smoothly b) Achieve effectiveness
c) Mobilize the resources d) All of the above

5. Decisions related to mergers and acquisitions are usually considered by _________.

a) Business level managers b) Functional level managers
c) Corporate level managers d) All of the above

6. In which type of business firms, strategy will formulated at 3 levels; corporate, Business & functional.
a) Conglomerate firms b) Focused firms c) MNC’s d) None of the above

7. ______ level managers stay close to the ground realities.

a) Corporate b) Business c) Functional d) None of the above

8. In a diversified company, product promotional decisional decisions are usually taken at the
______ level.
a) Corporate b) Business c) Functional d) None of the above

9. In a diversified company _________ level managers are accountable for profit generation.
a) Corporate b) Business c) Functional d) Operational

10. Which one of the following is relatively law of functional level?

a) Flexibility b) Accountability c) Control d) None of the above

11. At which level, the jobs are specialized in nature?

a) Corporate Level b) Business level c) Functional level d) All of the above

12. _________ managers play a broad role in the functioning of a business organization.
a) Corporate Level b) Business Level c) Functional level d) All of the above

13. In a conglomerate company, business level managers are held responsible for _________.
a) Functional Level Mangers b) Profits
c) Production d) General Managers

14. In some organizations ______________ is also known as “Divisional Level”.

a) Corporate Level b) Functional Level
c) Business level d) Operational Level
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15. _________ Managers deal with individual departments such as production, finance, marketing,
R&D etc.
a) Corporate level b) Business Level
c) Financial Level d) None of the above

16. Strategic Management process starts with_______.

a) Allocation of Resources b) Crafting of a strategy
c) Setting up objectives d) Defining vision and Mission

17. Which one of the following is not an objective of strategic management?

a) Achieving a dominant position over the competitors
b) Producing goods at low cost
c) Dealing with the environment changes effectively d) None of the above

18. Which is the correct sequence in strategic management?

a) Strategy execution, strategy control, strategy formulation
b) Strategy formulation, strategy control, Strategy implementation
c) Strategy control, strategy formulation, Strategy implementation
d) None of the above

19. A company needs a Reactive Strategy to ___________.

a) Deal with the sudden changes and developments
b) Achieve its goals
c) Improve its position in the industry d) All of the above

20. A company needs a proactive strategy to ___________.

a) Conduct operations smoothly b) Achieve its goals
c) Improve its financial performance in the market d) All of the above

2. DYNAMICS OF COMPETITIVE STRATEGY

1. Which one of the following is not an objective of competitive strategy?
a) Outperforming rivals b) Increasing sales
c) Achieving Competitive advantage d) None of the above

2. Which one of the following enables an organization in deciding whether an industry is attractive or
unattractive?
a) Competitive Intelligence b) Industry and competition analysis
c) Environmental Analysis d) All of the above

3. Which of the following are known as the basic characteristics of an industry?

a) Key success factors b) Key industry traits
c) Drivers or triggers d) Macro environmental factors

4. Which one of the following can lead to drastic changes in an industry?

a) Driving Forces b) Key success factors
c) Core competencies d) Generic Strategies

5. ________ consists of rival firms which follow similar strategies in an industry.

a) SBU b) Competitive Landscape
c) Strategic Group d) Industry
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6. The number of strategic groups in an industry is equal to the number of rivals if they follow
______ strategies.
a) Similar b) Different c) Generic d) Both (b) and (C)

7. _____ is the knowledge about competitors of an industry.

a) Competitive advantage b) Competitive Scope
c) Competitive Approach d) Competitive Intelligence

8. ______ can help firm in deciding whether to counteract or to protect against the moves of its
competitors.
a) Competitive Strategy b) Competitive Advantage
c) Competitive intelligence d) None of the above

9. _______ are the elements which can significantly influence firm to flourish in an industry.
a) Key Industry Traits b) Key success factors
c) Key Result areas d) Key performance indicators

10. ______ serves prerequisites for the success of a firm in an industry.

a) Key industry Traits b) Competitive Intelligence
c) Both (a) and (b) d) None of the above

11. How do you identity the key success factors of an industry?

a) By studying the consumer Behaviour b) Through Research
c) By studying about the successful firms in the industry
d) All of the above

12. An industry is said to be not attractive, it is profit prospects are ________.

a) Below average b) Above average c) Average d) None of the above

13. Which one of the following is the final step of industry and competitive analysis?
a) Drawing conclusions about the moves of rivals
b) Drawing conclusions about the industry’s key traits
c) Drawing Conclusions about the industry’s attractiveness or unattractiveness
d) Drawing Conclusions about the industry’s competitive intensity

14. A firm can curtail its spending an expansion, if its industry is_______.
a) Attractive b) Unattractive
c) Both (a) and (b) d) None of the above

15. ____ is the position of superiority of firms enjoys over its rivals in the industry.
a) Competitive Scope b) Competitive Landscape
c) Competitive intelligence d) Competitive Advantage

16. Competitive Advantage is of the following types:

a) Low cost Advantage and pioneer Advantage
b) First mover Advantage and low cost competitive Advantages
c) Differentiation Advantage and low cost advantage d) All of the above

17. A core competence acts as an immense source of _____ to the finance

a) Competitive Advantage b) Unique strength
c) Reputation d) Value
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18. ________ is the one which can’t be copied by competitors easily.

a) Competitive Advantage b) Value chain
c) Competitive intelligence d) Core Competence

19. Which one of the following is not a support activity of VCA framework?
a) Firms Infrastructure b) Procurement
c) R& D d) None of the above

20. Which one of the following doesn’t come under the primary activities?
a) Marketing b) HRM c) Operations d) Services

21. Which one of the following functions deals with Recruitment, Selection, training and development
of personnel?
a) Operations b) Services
c) Procurement d) Human Resource Development

22. Which one of the following deals with receiving, storing and distributing the inputs to the product?
a) Inbound logistics b) Out bound logistics
c) Both (a) and (b) d) None of the above

23. Which one of the following enables a firm in allocating its resources to various businesses in an
analytical manner?
a) Strategic Analysis b) Portfolio Analysis
c) Value chain Analysis d) Internal Analysis

24. Which one among the following is not a portfolio planning model?
a) Hober’s matrix b) ADL matrix c) BCG matrix d) None of the above

25. SBUs can be seen in case of a ______.

a) Domestic Company b) Focused Company
c) Diversified Company d) Government Company

26. Which type of company doesn’t possess experience curve benefit?

a) New Entrant b) Existing Company
c) Global Company d) Diversified Company

27. Experience curve benefit allows a firm to _________.

a) Charge low prices for its products b) Increase its market share
c) Block the entry of new competitors d) All of the above

28. Portfolio planning models are based on which one of the following concept?
a) Industry life cycle b) Business life cycle
c) Economic life cycle d) Product life cycle

29. In which stage of the life cycle, the sales of a product reach the peak stage?
a) Introduction b) Growth c) Maturity d) Decline

30. In which stage of the life cycle, the competition for a product very intense?
a) Introduction b) Growth c) Maturity d) Decline

31. In which of the following SBU’s should a company invest cautiously?

a) Stars b) Question Marks c) Cash cows d) Dogs
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32. According to BCG matrix, high market share SBU’s operating in low growth industries are known
as______.
a) Cash Cows b) Question Marks c) Dogs d) Stars

33. Which one of the following is not a correct combination?

a) Harvest- Dogs b) Divest- Cash cows
c) Build- Question Marks d) All of the above

34. Which one of the following portfolio planning models is an extension of BCG matrix?
a) Hober’s Matrix b) ADL Matrix
c) Both (a) and (b) d) None of the above

35. Which one of the following strategies does require greater spending on promotional activities?
a) Market Penetration b) Product Development
c) Diversification d) None of the above

36. Which one of the following strategies does require greater spending on R & D?
a) Market Development b) Market penetration
c) Diversification d) None of the above

37. Which strategy does not involve major changes in the product?
a) Market Penetration b) Market Development
c) Product Development d) All of the above

38. ______ is known as an inherent constrain of a firm, which creates strategic disadvantage to it.
a) Strength b) Weakness c) Opportunity d) Threat

39. A multinational Company is also known as a_______.

a) Global Company b) Domestic Company
c) Diversified Company d) None of the above

40. Which type of companies locates their units in different parts of the globe?
a) Domestic b) Regional c) Transnational d) Transactional

41. Which ideology corresponds to a transnational Company?

a) Thinking Globally, Acting Globally b) Thinking locally, Acting Globally
c) Thinking locally, Acting locally d) Thinking Globally, Acting locally

42. In TOWS matrix, which strategy is maxi-mini?

a) SO strategy b) ST strategy c) WO strategy d) WT strategy

43. In TOWS matrix, which strategy is maxi-maxi?

a) SO strategy b) WO strategy c) WT strategy d) ST strategy

44. In TOWS matrix, which strategy is corresponds to ‘Defensive Strategy’.

a) SO strategy b) WO strategy c) ST strategy d) WT strategy

45. Pick the odd one from the following:

a) BCG matrix b) Hober’s matrix c) ADL matrix d) TOWS matrix
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3. STRATEGIC MANAGEMENT PROCESS

1. Which type of plans deals with day to day issues of an organization?
a) Strategic Plans b) Long range plans c) Operational plans d) Both (a) and (b)

2. Which type of decisions will have effect on the long term prosperity of an organization?
a) Tactical Decisions b) Operational Decisions
c) Function Decisions d) None of the above

3. The results of which type of decisions can be seen immediately?

a) Operational Decisions b) Strategic Decisions
c) Functional Decisions d) None of the above

4. Which type of decisions affect different sections of the organization?

a) Strategic Decisions b) Operational Decisions
c) Functional Decisions d) Middle level management decisions

5. Which one of the following is not an element of strategic intent?

a) Business Definition b) Vision c) Mission d) None of the above

6. Which is the last stage in the strategic management process?

a) Strategic Analysis b) Strategy control
c) Strategy Implementation d) Strategy Formulation

7. _______ refers to the position a firm would like to attain in the long run.
a) Vision b) Mission c) Objectives d) Goals

8. ________ is closer to the hearts of employees of an organization.

a) Vision b) Vision shared c) Shared vision d) Mission

9. ________ is an enduring statement of purpose of an organization.

a) Vision b) Mission c) Shared vision d) Vision shared

10. Mission is associated with ___________.

a) A goal b) An ambition
c) A way of behaving d) None of the above

11. Which one is more precise and specific?

a) Goals b) Objective c) Ambition d) All of the above

12. Which one of the following is not false about strategic management?
a) Strategic Management is one-time process
b) Strategic Management is time consuming
c) Strategic Management provides long term direction to a firm
d) Strategic Management ends with strategy implementation

13. ______ are known as the performance targets of an organization.

a) Objectives b) Policies c) Procedures d) None of the above

14. A firm should define its business in a ______ sense.

a) Narrower b) Broader c) Both (a) and (b) d) None of the above
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15. For which type of entities, vision and mission statements are not needed.
a) Sole Proprietor b) Partnership c) Company d) None of the above

16. Which are among the following is more enduring in nature?

a) Vision b) Mission c) Goal d) All of the above

17. Pick the ODD one from the following:

a) Vision b) Mission c) Strategies d) Business definition
18. Vision and mission should be converted into______.
a) Objectives b) Policies c) Procedures d) All of the above

19. Which objective gains more importance during the initial stage of establishment of the business?
a) Increasing market share b) Survival
c) Profitability d) Technological Dynamism

20. Strategic decision making in any organization is taken up by _____.

a) Functional Managers b) Top level Managers
c) Business level general managers d) Supervisors

4. CORPORATE LEVEL STRATEGIES

1. Which one of the following is not a collaborative strategy?
a) Merger b) Start-up c) Take over d) None of the above

2. Which Strategy is best suitable for a fairness cream brand that was launched very recently in the
market?
a) Expansion strategy b) Market development strategy
c) Market skimming strategy d) Market penetration strategy

3. Which strategy you suggest to a business/product, which is in the saturation stage?

a) Stability Strategy b) Divestment strategy
c) Liquidation strategy d) Either (a) or (b)

4. Which of the following is not a less risky strategy?

a) Diversification Strategy b) Product Development strategy
c) Takeover d) All of above
5. Which strategy involves an increase in the scope of the firm’s business?
a) Retrenchment strategy b) Stability strategy
c) Expansion Strategy d) Turnaround Strategy
6. Which strategy involves a redefinition of the business of the firms?
a) Retrenchment strategy b) Expansion Strategy
c) Both (a) and (b) d) None of the above

7. Which strategy doesn’t involve much of the changes in firm’s products, markets of functions?
a) Stability Strategy b) Retrenchment Strategy
c) Both (a) and (b) d) None of the above

8. Which is a more versatile Strategy?

a) Stability Strategy b) Expansion Strategy
c) Both (a) and (b) d) None of the above
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9. Which strategy enables a firm to achieve modest growth in business?

a) Stability Strategy b) Expansion Strategy
c) Market Development strategy d) Diversification Strategy

10. Pick the odd one among the following:

a) Market penetration strategy b) Product Development Strategy
c) Stability Strategy d) Diversification Strategy

11. Which strategy is a ‘status –quo’ oriented strategy?

a) Divestment Strategy b) Acquisition strategy
c) Strategic Alliance Strategy d) None of the above

12. _______ is an instantaneous means of achieving growth in business?

a) Mergers and acquisitions b) Start ups
c) Diversification d) All of the above

13. Pick the odd one among the following:

a) Start ups b) Mergers and acquisitions
c) Joint ventures d) Strategic Alliances

14. In this type of diversification, intermediary activities will become new business to the firm?
a) Conglomerate b) Horizontal c) Concentric d) Vertical

15. Pick the odd one among the following:

a) Concentric Diversification b) Backward Integrated Diversification
c) Forward Integrated Diversification d) Conglomerate Diversification

16. Which type of diversification helps a firm in reducing its dependence on outside suppliers and
distributors?
a) Horizontal Integrated Diversification b) Concentric Diversification
c) Vertically Integrated Diversification d) Conglomerate Diversification

17. Which strategy results in the reduction in the scope of a firms business?
a) Retrenchment Strategy b) Divestment Strategy
c) Liquation Strategy d) All of the above

18. Which strategy involves the sale of a portion of the firms business?
a) Turnaround Strategy b) Divestment Strategy
c) Diversification strategy d) Liquidation strategy

19. Pick the odd one among the following:

a) Combination Strategy b) Turnaround Strategy
c) Divestment Strategy d) Liquidation Strategy

20. Which strategy is best suited for a firm during the economic recession?
a) Retrenchment b) Expansion c) Stability d) All of the above

21. Merger between two direct competitors is known as ____.

a) Vertical merger b) Co-generic merger
c) Conglomerate Merger d) Horizontal merger
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22. In which strategy, a company puts major emphasis on improving its internal efficiency?
a) Diversification b) Liquidation c) Turnaround d) None of the above

23. Merger between a manufacturing company and a chain of retail stores is known as ______.
a) Concentric Merger b) Vertical Merger
c) Conglomerate Merger d) None of the above

24. Merger between a life insurance Company and a batteries manufacturing comes under____.
a) Co-generic Merger b) Horizontal merger
c) Vertical merger d) None of the above

25. In which kind of arrangement, no new entity is created and firms extend cooperation to each other
in certain aspects of doing business?
a) Strategic alliance b) Acquisition c) Take over d) None of the above

26. Which Strategy is also known as Internal Retrenchment?

a) Divestment b) Diversification c) Liquidation d) None of the above

27. Which is the most unpleasant strategic alternative in business?

a) Diversification b) Stability c) Liquidation d) All of the above

28. Which strategy is relatively more risky to implement?

a) Diversification b) Market Penetration
c) Stability d) Market Development

29. Which one of the following is the major disadvantage of strategic Alliances?
a) Profit sharing b) Loss of competitive Advantage
c) Revealing of trade secrets d) All of the above

30. In which type of diversification, there are no linkages among the business of the company?
a) Vertical b) Horizontal c) Concentric d) Conglomerate

31. Which type of diversification strategy involves starting new business at the same stage of the
production marketing chain?
a) Vertical b) Horizontal c) Concentric d) Conglomerate

32. What is motive of companies in going for mergers of acquisitions?

a) To achieve synergy benefits b) to achieve quick growth
c) To utilize surplus funds d) All of the above

33. Which of the following strategy is best suited to a Conglomerate company?

a) Stability Strategy b) Diversification Strategy
c) Combination Strategy d) Retrenchment strategy

34. Sometimes, the option of ______ may be ignored if divestment is the only answer.
a) Turnaround b) Expansion
c) Liquidation d) None of the above

35. Pick the odd one among the following:

a) Highly versatile b) Status quo oriented
c) Risk Seeking d) Highly Ambitious
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36. ______ strategy may be considered by a firm it one of its newly diversified businesses does not fit
into its overall portfolio.
a) Diversification b) Divestment c) Disinvestment d) All of the above

37. Which one of the following is not a Directional Strategy?

a) Liquidation b) Stability c) Disinvestment d) Diversification

38. Pick the odd one among the following:

a) Diversification b) Disinvestment c) Divestment d) Liquidation

39. Pick the odd one among the following:

a) Generic strategies b) Master Strategies
c) Directional Strategies d) Grand Strategies

40. Selling out one of the loss incurring divisions of a company can be termed as_______.
a) Divestment strategy b) Liquidation Strategy
c) Restructuring d) Wind up

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