Strategic Management Test 3 Jan 2022 by SNP

1. Which of the following dimensions are not recommended aspects of a mission statement?
a. Strategies b. Self-concept c. Concern for employees d. Markets
e. Customers

2. . Which question(s) are answered in an effective mission statement?

a. What is the purpose of our organization?
b. What is our company philosophy or self-concept?
c. What technology will we employ to achieve our objectives?
d. Who are the firm’s customers?
e. All of the above

3. . Which component of a mission statement addresses the basic beliefs, values, aspirations,
and ethical priorities of the firm?
a.  Technology b. Philosophy c. Concern for public image d. Customers
e. Self-concept

4. Which component of a mission statement addresses the firm’s distinctive competence or

major competitive advantage?
a. Technology b. Philosophy c. Concern for public image d. Customers
e. Self-concept

5. Effective mission statements can vary in

a. length. b. content. c. format. d. specificity e. all of the above

6. The corporate social policy should be reaffirmed or changed during which phase of strategy
development?
a. strategy implementation b. strategic mission c. strategy formulation
d. strategy evaluation e. strategy control

7. Corporate social policy should be designed and articulated during which phase of strategy
development?
a. implementation b. formulation c. evaluation d. control e. management

8. Good mission statements identify the ______ of a firm’s products to its customers.
a. utility b. price c. profit margin d. demand e. popularity
9. An effective mission statement is all of the following except:
a. It reflects judgments about future growth directions that are based upon forward-looking
external and internal analyses.
b. It provides useful criteria for selecting among alternative strategies.
c.  It provides a basis for generating and screening strategic options.
d. It is static in orientation.
e. It should include options that are considered less promising.

10. The three characteristics of a mission statement are a declaration of attitude, a declaration of
social policy and:
a. an employee orientation. b. a customer orientation. c.  a shareholder orientation.
d. an environmental orientation. e. a profit orientation.

11. What is likely to happen if a mission or vision statement is implemented during troubled
times for a firm?
a. Employees will ignore the new mission or vision statement. b. Profitability will decline.
c. The firm will experience a reverse in the decline of profitability.
d. No change e. Managers will be unable to resolve divergent views.

12. What is the best time to develop a mission statement?

a. before a business is opened b. when the firm is successful
c. when the firm is in financial trouble d. when the firm is in legal trouble
e. when the firm encounters competition

13. A businesses mission is the foundation for all of the following except:
a. priorities. b. strategies. c. plans. d. employee wage rates.
e. work assignments.
14. . After a draft mission statement has been developed, it is important to:
a. ask managers to read several articles about mission statements as background information.
b. vote on the mission statement.
c. ask managers to prepare a mission statement for the organization.
d. ask managers to seek support for the mission statement from their subordinates.
e. provide a request for modifications, additions and deletions to the mission statement.

15. The process of developing a vision and mission statement includes which of these as the first
activity?
a. A request to modify the current document
b. Ask managers to read selected articles about mission statements.
c. Ask managers to prepare a mission statement for the organization.
d. Have a brainstorming session on whether the organization should have a mission
 statement.
e. A merging of several mission statements into one document

16. In the process of developing a mission statement, it is important to involve

a. as few managers as possible. b. as many managers as possible.
c. upper-level management only. d. lower-level management only.
e. the board of directors only.

17. The vision statement answers which question?

a. What is our business? b. How can we improve ourselves?
c. What do we want to become? d. Who are our stakeholders?
e. How can we increase profitability?

18. The mission statement answers which question?

a. What is our business? b. How can we improve ourselves?
c. What do we want to become? d. Who are our stakeholders?
e. How can we increase profitability?

19. A mission statement is sometimes called all of the following except:

a. a statement of intent. b. a statement of purpose. c. a statement of beliefs.
d. a creed statement. e. a statement of business principles.

20. As indicated in the strategic-management model, a clear _______ is needed before alternate
strategies can be formulated and implemented.
a. long-term objective b. short-term objective c.  policy d. mission statement
e. evaluation strategy

21. In which of the following basic categories can business environment be divided
A. . Local and Regional B. Regional and National C. Internal and External

22. Economic Environment refers to all forces which have a _______impact on business
A. political B. natural C. economic D. social

23._______ environment is beyond the control of the business

A. Internal B. External C. Micro D. Macro

24. Micro environment is also called as_______

A. general environment B. operating environment C. economic environment
D. political environment

[Link] environment is also called as_______

A. general environment B. operating environment C. economic environment
D. political environment

26. The environment which is close to business and affects its capacity to work is known as
________environment
A. internal B. external C. micro D. macro

27.. Corporate values are the _______ of the corporate sector

A. shared values B. moral beliefs C. customer satisfaction D. goodwill

28. Porter model is the based on the principle of-----

A. Resource based view B. Conduct Structure performance
C. Structure, conduct, performance D. Econometrics

29. In Porter five forces the threat of new entrants relates to –

A . barriers to entry B. Substitute C. Switching cost D. Buyers power

30. Barrier to entry into industry are likely to be high-

A. Switching cost is low B. Differentiation is low
C. Requirement of economies of scale is high D. Access to distribution channel is high

31. The strategic management process is

A. a set of activities that will assure a temporary advantage and average returns for the firm
B.. a decision-making activity concerned with a firm's internal resources, capabilities, and
competencies, independent of the conditions in its external environment.
C. a process directed by top-management with input from other stakeholders that seeks to
achieve above-average returns for investors through effective use of the organization's resources.
[Link] full set of commitments, decisions, and actions required for the firm to achieve above-
average returns and strategic competitiveness.

32. Internal analysis enables a firm to determine what the firm

a. can do. b. should do. c. will do. d. might do.

33. Product differentiation refers to the:

a. ability of the buyers of a product to negotiate a lower price.
b. response of incumbent firms to new entrants.
c. belief by customers that a product is unique.
d. fact that as more of a product is produced the cheaper it becomes per unit.

34. Switching costs refer to the:

a. cost to a producer to exchange equipment in a facility when new technologies emerge.
b. cost of changing the firm's strategic group.
c. one-time costs suppliers incur when selling to a different customer.
d. one-time costs customers incur when buying from a different supplier.

35. The resource-based model of the firm argues that

A. All resources have the potential to be the basis of sustained competitive advantage.
B. All capabilities can be a source of sustainable competitive advantage.
C. The key to competitive success is the structure of the industry in which the firm competes.
D. Resources and capabilities that are valuable, rare, costly to imitate, and non-substitutable form
the basis of a firm's core competencies.

36. An external analysis enables a firm to determine what the firm

a. can do. b. should do. c. will do. d. might do.

37. Which of the following is a true statement about capabilities?

a. Capabilities emerge over time through complex interactions of tangible and intangible
resources.
b. Valuable capabilities are based almost entirely on tangible resources.
c. Capabilities based on human capital are more vulnerable to obsolescence than other intangible
capabilities because of the tendency for employee knowledge to become outdated.
d. The link between firm financial performance and capabilities is dependent on whether the
capabilities are based on tangible or intangible resources..

38. Capabilities that other firms cannot develop easily are classified as
a. costly to imitate. b. rare. c. valuable. d. non substitutable.

39. Business-level strategies detail commitments and actions taken to provide value to customers
and gain competitive advantage by exploiting core competencies in
a. the selection of industries in which the firm will compete. b. specific product markets.
c. primary value chain activities. d. particular geographic locations

40. The three dimensions of a firm's relationships with customers include all the following
EXCEPT
a. exclusiveness. b. affiliation. c. richness. d. reach.

41. The total profits in an industry at all points along the industry’s value chain is called the
a. Profit maximize b. Revenue enhancer c. Profit outsourcing d. Profit pool

42. The effectiveness of any of the generic business-level strategies is contingent upon
a. customer between the opportunities and threats in its external market and the strengths and
weaknesses of its internal needs and competitors' strategies.
b. the match environment.
c. the trends in the general consumer base and the robustness of the global and industry
economy.
d. the firm's competitive scope and its competitive advantage.

43. Business-level strategies are concerned specifically with:

a. creating differences between the firm's position and its rivals.
b. selecting the industries in which the firm will compete.
c. how functional areas will be organized within the firm.
d. how a business with multiple physical locations will operate one of those locations.
44. A differentiation strategy can be effective in controlling the power of substitutes in an
industry because
a. customers have low switching costs. b. substitute products are lower quality.
c. a differentiating firm can always lower prices. d. customers develop brand loyalty.

45. A joint venture can be defined as:

a. Two firms collaborate together on a specific project
b. One firm licenses its intellectual property to another firm
c. Two firms merge together
d. Two firms come together to form a third legally separate firm

46. Substantial changes to the range of offerings or the markets served or both are known as
a. Differentiation b. Diversification c. Relocation d Brand extension

[Link] GE 9 cell model is based on

a. Industry attractiveness & business strength b. Industry growth rate and business strength
c. Industry attractiveness and relative markets share d. Industry growth rate and relative market
share

48. The BCG Matrix is based on

a. Industry attractiveness & business strength b. Industry growth rate and business strength
c. Industry attractiveness and relative markets share d. Industry growth rate and relative market
share

49. Low cost, Differentiation and Focus are examples of…………………

a. Corporate strategies b. Operational strategies c. Business Strategies d. Functional
Strategies

50. What does star symbolize in BCG matrix?

a. Introduction b. Growth c. Maturity d. Decline