http://groups.yahoo.

com/group/itzm3mazha r/
100 Solved MCQs of MG !03
1. Which of the following can be identified as a best statement that represents a firm's big picture statement, describing a desired end-state, general in scope and not restrictive? a. Corporate philosophy statement b. Company creed c. Vision statement d. Mission statement 2. One of the top level manager of a large manufacturing plant uses to spend her da tr ing to ensure that the material wastage is not more than 1!". #he spends her da performing the management process of $$$$$$$$. a. Planning b. Organizing c. Leading d. %ontrolling &. 'll of the following are (e opportunities and threats in e)ternal environment because of political, government * legal forces except+ a. Tax rates b. #ocial securit programs c. Cross boarder relationships d. Patent laws ,. Which of the following statements in relation to the five forces framewor( is correct? a. The framework assists in developing a broad perspective on the environment within which an organization is operating. b. The framework is not appropriate in non profit organizations. c. -he framewor( is a mean of identif ing the forces which affect the level of competition in an industr or sector. d. The framework identifies the ma!or stakeholders of an organization. .. /inancial ratios are helpful in anal 0ing the relationship among+ a. "ll assets and liabilities of a b#siness b. "ll profits and costs of a b#siness c. 'll functional areas of a business d. "ll sales and profitability of a b#siness 1. 2nternal audit is done $$$$$$$$$ a. $efore external a#dit b. "fter external a#dit

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
c. 3arallel to e)ternal audit d. %ertical to external a#dit 4. Which of the following ma not be considered as the component of a mission statement? a. P#rpose and val#es of the organization b. $#siness the organization wants to be in c. Main ob!ectives s#pporting the company in accomplishing its mission d. %oncentrates future and provides clear decision-ma(ing criteria 5. 6argaining power of consumers is high if+ a. 7ifferentiation of competitors8 products is low b. &witching costs are low for s#bstit#te prod#cts c. The b#yer has little information abo#t the market d. The b#yer re'#ires a high '#ality prod#ct for own prod#ction 9. -he magnitude of changes that ma affect an organi0ation8s survival owing to all of the following except: a. Merger mania b. (emographics c. ) commerce d. 7ubious firms 1!. Which of the following re:uires a firm to establish annual ob;ectives, devise policies, motivate emplo ees and allocate resources for the e)ecution of strategies? a. &trategy form#lation b. #trateg implementation c. &trategy eval#ation d. &trategy estimation

11. <2f a strategist has identified that the mar(et growth rate is 5 ", the numbers of sellers in industr are .2 and the industr 's products are differentiated.= Which one of the industr 's (e success factors he is e)ploring? a. >conomic forces b. &ocial forces c. Competitive forces d. &ocial forces 12. -he social factors that affect a firm involve all of the following e)cept+ a. 3er capita income

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
b. Lifestyles of people c. "ttit#des of people in external environment d. %al#es * beliefs of people o#tside the firm 1&. Which t pe of trend can be e)emplified b the increasing numbers of twoincome households in a societ ? a. &ocial b. >conomic c. C#lt#ral d. Technological 1,. >)ternal assessment is performed in which of the strategic management phase? a. #trateg formulation stage b. &trategy implementation stage c. &trategy eval#ation stage d. "ll of the given options 1.. What will happen to the 3a(istani e)ports in overseas mar(ets when there is a strong value of ?upee? a. Less expensive b. More attractive c. Cheaper d. @ore e)pensive 11. 3olitical variables have a significant effect on a. #trateg formulation and implementation b. &trategy form#lation and eval#ation c. &trategy implementation and eval#ation d. &trategy form#lation+ implementation and eval#ation 14. -echnological advancements can create which of the following advantage besides man other e)isting powerful advantages for the businesses? a. )conomic b. &ocial c. )nvironmental d. %ompetitive 15. Which statement about business intelligence is A>'#- accurate? a. ,ntelligence gathering is an #nethical b#siness practice

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
b. -#nning an intelligence program re'#ires many people c. -#nning an intelligence program re'#ires many comp#ters and other reso#rces d. 6usiness intelligence is not e:ual to espionage 19. -he competitive threat posed b substitute products is wea(ened when+ a. $#yers that are c#rrently p#rchasing the prod#ct are not relatively loyal b. There are relatively large n#mber of rival sellers that are fairly e'#al in size and competitive capability c. C#stomers are in a strong bargaining position to win concessions from sellers d. 6u ers' costs of switching to substitutes are relativel high 2!. Which one of the statements is a good e)ample of the competitive power of substitute products? a. The competition between cell#lar phones and comp#ters b. The competition between Coca Cola+ Pepsi and .#p c. The competition between "mazon.com and traditional off line bookstores d. -he competition fro0en ogurt provides to the producers * mar(eters of ice cream 21. <-he perfect search engine would understand e)actl what ou mean and give bac( e)actl what ou want=, this statement is included in the mission statement of an online firm and is showing which one of the following components? a. &elf concept b. Concern for p#blic image c. " declaration of attit#de d. 3hilosoph 22. Which of the following are signs of wea(ness in a compan 's competitive position? a. " ret#rn on e'#ity is below /01 and earnings per share of less than -s. /.22 b. " price set by the firm higher than its rivals c. " declining market share+ poor prod#ct '#ality and few sales in market d. Lower reven#es and profit margin and narrow prod#ct line than the market leader

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
2&. ' comple) set of basic underl ing assumptions and deepl held beliefs shared b all members of the group and drive in important wa s the behavior of individuals in the organi0ational conte)t is (nown as+ a. ,nternal a#dit b. ,nternal assessment c. Organi0ational strateg d. Organizational c#lt#re 2,. Which one of the following best describes <a substitute product or service=? a. " competitor3s prod#ct or service b. 'n alternative wa of meeting the same need c. " new entrant into the ind#stry d. " less attractive way of meeting the same need 2.. @r. Bhouri assigns a pro;ect to be completed b Chalid till the end of the month and then holds periodic meetings with him to review his progress. Which of the management functions is @r. Bhouri performing? a. Planning b. Leading c. %ontrolling d. Organizing 21. -he wa a compan decides to group customers in order to gain a competitive advantage is called a. @ar(et segmentation b. Price level segmentation c. C#stomer differentiation d. Positioning 24. ' compan 's ?O2 D?eturn on 2nvestmentE can be algebraicall decomposed into two ma;or components+ return on sales and $$$$$$$$. a. 4ixed capital b. 5et profit c. Cost of goods sold d. -otal assets 25. -he @@ e:uipment firm8s financial statements reveal that its sales are

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
. million rupees and its finished goods inventor is valued as 2.. million rupees. 6% %ompan is one of the competitors of @@ e:uipment with & times inventor turnover. Fou have to decide that the inventor turnover of @@ e:uipment is+ a. $etter than $C Company b. Worst than 6% %ompan c. )'#al to $C Company d. 5one of the given options 29. 2t directs at developing new products before competitors do at improving product :ualit or at improving manufacturing processes to reduce costs. a. Marketing b. Opport#nity analysis c. ?esearch and development d. Management &!. <2dentif ing and evaluating (e social, political, economic, technological and competitive trends and events=. Which of the followings best describes this statement? a. (eveloping an effective mission statement b. Cond#cting an internal a#dit c. 3erforming an e)ternal audit d. 4orm#lating strategy &1. 7uring which stage of strategic management, the firm8s specific internal
strengths and wea(nesses are determined? a. /ormulation b. ,mplementation c. )val#ation d. 4eedback &2. -he GFH Organi0ation has a statement that describes the needs for which the organi0ation was created to fill and answers the basic :uestion of wh the organi0ation e)ists. GFH is most li(el to have which one of the following? a. &trategy b. %ision statement c. @ission statement d. 4#nctional tactics &&. 2ntuition is based on all of the following >G%>3-+ a. Past experiences

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
b. 6#dgments c. Incertainties d. 4eelings &,. ?easons due to which some firms do <Jo #trategic 3lanning= incorporate all of the following >G%>3-+ a. 7astage of time b. 4ire fighting c. Content with s#ccess d. 3rivileged reward structures &.. #trategist is an individual who is involved in the strategic management process, thus ma be (nown as+ a. Member board of director b. President c. (ivision manager d. 'll of the given options &1. 2nternal strengths and wea(nesses that can significantl benefit or harm an organi0ation ma include all of the following >G%>3-+ a. Prod#ction8 operations b. -esearch * development c. %ompetitors d. Management information system &4. 'll of these are pitfalls an organi0ation should avoid in strategic planning >G%>3-+ a. Ising plans as a standard for measuring performance b. 9sing strategic planning to gain control over decisions and reso#rces c. 4ailing to involve key employees in all phases of planning d. $eing so formal in planning that flexibility and creativity are stifled &5. Which group would be classified as a sta(eholder? a. Comm#nities b. $anks c. &#ppliers d. 'll of these &9. What are the guidelines to decision ma(ing? a. Laws b. -#les

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
c. 3olicies d. :oals ,1!. -he anal sis of industr 8s ma;or competitors8 strengths ma give an insight of which one of these? a. Ce threats for the firm b. ;ey opport#nities for the firm c. $oth opport#nities and strengths for the firm d. 5one of the given options ,1 /or the past four ears, the '6% %orporation has been planning to e)pand its operations in order to reach out to the world mar(et. >ssentiall , the '6% %orporation desires to do what? a. $ecome an online b#siness b. $ecome a brick n mortar b#siness c. >mbrace globali0ation d. $ecome a click n mortar b#siness ,2. Which of the following is best identified as a statement that presents <a firm's big picture statement, describing a desired end-state, general in scope, and not restrictive=? a. Corporate philosophy statement b. Company creed c. Vision statement d. Mission statement ,&. %orporate social polic should be designed and articulated during which phase of strategic management? a. ,mplementation b. /ormulation c. )val#ation d. Management ,,. >thnic balance is affected due to which of the following? a. Change in ethnic val#es b. "wareness of ethnic norms c. @igration of the people towards different areas d. ,ntrod#ction of new laws relating to ethnicity ,.. -he /actors that concern the nature and direction of the econom in which a firm operates are (nown as+ a. Technological b. )cological c. &ocial

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
d. >conomic ,1. K-@A stands for which of the following? a. <ybrid text mark#p lang#age b. K per te)t mar(up Aanguage c. <yper text man#fact#re lang#age d. <ighly technical mark#p lang#age ,4. -he social factors that affect a firm involve all of the following >G%>3-+ a. 3er capita income b. Lifestyles of people c. "ttit#des of people in the external environment d. %al#es and beliefs of persons o#tside the firm ,5. When an industr relies heavil on government contracts, which of the following is important for the firm to foresee as a part of its e)ternal audit? a. )conomic forces b. 3olitical forces c. Technological forces d. Competitive forces ,9. 2n which phase of the strategic management process, annual ob;ectives are especiall important? a. 4orm#lation b. )val#ation c. 2mplementation d. Management .!. %hoose the economic variable from the list. a. "ttit#des toward b#siness b. "ttit#des toward prod#ct '#ality c. Pop#lation changes by race d. #toc( mar(et trends .1. 6u ers can e)ercise high bargaining power over their suppliers under which one of the following conditions? a. -here are few bu ers in the mar(et b. 7hen there are many good s#bstit#tes c. They have few s#ppliers to choose from d. There is a high concentration of s#ppliers .2. -he process of monitoring performance, comparing it with goals, and correcting an significant deviations is (nown as+

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
a. Planning b. %ontrolling c. Organizing d. Leading .&. Which categor of ratios measures a firm8s abilit to meet maturing short-term obligations? a. Profitability b. Leverage c. Ai:uidit d. "ctivity .,. Which of the following directs at developing new products before competitors do at improving product :ualit or at improving manufacturing processes to reduce costs? a. Marketing b. Opport#nity analysis c. Management d. ?esearch and development ... ' planning hori0on of two to five ears applies to which of the following? a. -op management b. Middle management c. Lower management d. "ll levels of management .1. 'ssessment of competitive rivalr 7O># JO- include an understanding of which of the following? a. Mergers and ac'#isitions in ind#stry b. -he management structure of an organi0ation c. Market growth rates d. )xit barriers and operational efficiency of competitor .4. Which of the following mar(eting entit is JO- an intermediar ? a. $rokers b. "gents c. 3roducers d. %endors .5. 2nvestment decisions are also (nown as+ a. Capital str#ct#re b. $#siness finance

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
c. (ividend policy d. %apital budgeting .9. Which one of the following area can be the wea(ness of a firm? a. 2neffective @ar(eting b. Changing lifestyle c. <igh oil prices d. ,ncreasing poll#tion 1!. What is the s stematic gathering, recording, and anal 0ing of data about problems relating to the mar(eting of goods and services? a. Management b. @ar(eting ?esearch c. Planning d. Market segmentation 11. Which of the following are repetitive and s mbolic activitiesLevents used to strengthen culture in organi0ations? a. 4olktales b. -ites c. ?ituals d. %al#es 12. 7epartmentali0ation can be done on the basis of man factors >G%>3-+ a. 4#nctions b. &trategic b#siness #nits c. (ivisions d. Jumber of emplo ees 1&. -he general condition for competition that influences business firms which provide similar products and services is (nown as+ a. ,nd#stry environment b. -emote environment c. ,nternational environment d. )xternal environment 1,. 2n %ompetitive 3rofile @atri), the rating <,= indicates what? a. Ma!or weakness b. @a;or strength c. Minor strength d. Minor weakness

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
1.. Which of the following ties all business functions together and provides the basis for all managerial decisions? a. Marketing b. Technology c. 2nformation d. 7orkforce 11. Which of the following refers to determining the best capital structure for the compan ? a. -estr#ct#ring decisions b. &trategic decision c. ,nvestment decision d. /inancing decisions 14. 'll of the following are the outputs of a s stem >G%>3-+ a. 7ata b. Tables c. Charts d. :raphs 15. Aac( of access to (e distribution channels indicates which of the following? a. &trength b. Wea(ness c. Opport#nity d. Threat 19. Which of the following mar(eting functions includes test mar(eting? a. &elling prod#cts8services b. C#stomer analysis c. 3roductLservice planning d. (istrib#ting 4!. -he total weighted score of 2/> matri) below <2..= characteri0es an organi0ation as+ a. Organization is externally weak b. Organization is internally strong c. Organization is externally strong d. Organi0ation is internall wea( 41. Which of the following is not a stage of strateg formulation techni:ues? a. 4orm#lation 4ramework b. Matching stage c. >)ternal factor evaluation d. (ecision stage

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
42. #- #trategies is an important strateg to a. Match weakness with opport#nities of the firm b. Overcome e)ternal threats c. Obtain benefit form its reso#rces d. Overcome its weakness and red#cing threats 4&. #trategic 3osition and 'ction >valuation @atri) is used in a. 4orm#lation 4ramework b. @atching stage c. )xternal factor eval#ation d. (ecision stage 4,. %ash cows are alwa s in a. ,ntrod#ctory ind#stry b. :rowing ind#stry c. @ature industr d. (eclining ind#stry 4.. 2n 6%B matri), the reason for choosing relative mar(et share, rather than ;ust profits, is that a. ,t carries more information than !#st cash flow b. ,t shows where the brand is positioned against its main competitors c. ,t indicates where it might be likely to go in the f#t#re d. 'll of the mentioned options 41. -hose firms must ma(e some drastic changes :uic(l to avoid further demise and possible li:uidation that fall in$$$$$$$$$$ of grand strateg matri) a. =#rdant > b. =#rdant / c. Murdant-& d. =#rdant ? 44. #trateg -formulation concepts and tools a. 7o not differ greatl for different si0e and t pe of organi0ations b. (iffer greatly for different size and type of organizations c. (o not differ greatly for profit or nonprofit organizations b#t differ in small and large organizations d. 5one of the mentioned options 45. 'nnual ob;ectives a. "re not critical to s#ccess

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
b. #erve as guidelines for action, directing and channeling efforts and activities of organi0ation members c. "re not important for employee motivation and identification d. (o not provide a basis for organizational design 49. 'nnual ob;ectives a. 5eed not to be consistent b. &ho#ld be easily achievable c. #hould be measurable d. &ho#ld be confidential and not to be comm#nicated thro#gho#t the organization 5!. Which of the following resources is used b all organi0ations to achieve desired ob;ectives? a. 4inancial reso#rces+ b. Physical reso#rces+ c. <#man reso#rces d. 'll of the mentioned options 51.Which statement best describes intuition? ,t represents the marginal factor in decision making. ,t represents a minor factor in decision making integrated with analysis. 2t should be coupled with anal sis in decision-ma(ing. ,t is better than analysis in decision making. ,t is management by ignorance. 52.What are the means b which long-term ob;ectives will be achieved? #trategies. &trengths. 7eaknesses. Policies. Opport#nities.

5&.Which of these basic :uestions should a vision statement answer? hat is o#r b#siness@ 7ho are o#r employees@ 7hy do we exist@ What do we want to become? 7ho are o#r competitors@

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
5,.When an industr relies heavil on government contracts, which forecasts can be the most important part of an e)ternal audit. economic political technological competitive M#ltinational

5..$$$$$$$$$$ is not part of an e)ternal audit. o o o o o "nalyzing competitors 'nal 0ing financial ratios "nalyzing available technologies &t#dying the political environment "nalyzing social+ c#lt#ral+ demographic and geographic forces

51.Which of the following is not a cultural product? -ites >motions -it#als &agas &ymbols 54.Which individuals are most responsible for the success and failure of an organi0ation? o #trategists o 4inancial planners o Personnel directors o &takeholders o <#man reso#rce managers 55.Aong-term ob;ectives should be all of the following e)cept+ o Meas#rable. o %ontinuall changing. o -easonable. o Challenging. o Consistent. 59.What are guides to decision ma(ing?

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
laws r#les policies proced#res goals

9!.Which group would be classified as a sta(eholder? o Comm#nities o $anks o &#ppliers o )mployees o 'll of the given options 91.#trateg -formulation concepts and tools do not differ greatl o 4or small+ large+ for profit+ or nonprofit organizations o "mong different types and sizes of organizations o 6oth of the options mentioned options o 5one of the mentioned options 92.Which of the following statement is true about strateg implementation? o The role of managers and employees in strategy implementation sho#ld not b#ild #pon prior involvement in strategy form#lation activities o @anagers and emplo ees in an organi0ation should participate earl and directl in strateg -implementation decisions o &trategists3 gen#ine personal commitment to implementation is not a necessary thing for employees. o "ll of the mentioned options are tr#e abo#t strategy implementation 9&.>stablishing annual ob;ectives is a o Centralized activity o Controlled activity o 7ecentrali0ed activit o 5one of the mentioned options 9,.?estructuring is also referred to as o o &tarting over. o 7e-la ering. o (iversifying. o 6ob sec#rity

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
9..-he primar benefit sought from restructuring is o o o o )mployee involvement. %ost reduction. ,ncreased morale. ,ncreased n#mber of hierarchical levels in the organization. prohibits effective resource

91.$$$$$$$ is not a ma;or factor that commonl allocation. o o o o Inder protection of resources Organizational politics %ag#e strategy targets -el#ctance to take risks

94.Which of the following is not true about ob;ectives? o o o o They sho#ld be comm#nicated thro#gho#t the organization They sho#ld have an appropriate time dimension -he should incorporate policies They sho#ld be meas#rable mainl concern with the achievement of

95.$$$$$$$$$$$$$ 7epartment organi0ation goals and targets 3roductionLoperations <#man reso#rce "cco#nts &ales

99.' well-designed strategic-management s stem can fail 2f insufficient attention is given to the human resource dimension 7hen actively involve as many managers and employees as possible in the process $oth of the mentioned options 5one of the mentioned options

1!!.'2O D'ctivities, interest, opinionsE are the basis of

Regards: - lz rk
"#$3%&'#3'3&0

http://groups.yahoo.com/group/itzm3mazha r/
$ehavioralistic &egmentation 3s chographic #egmentation (emographic &egmentation :eographic &egmentation

Regards: - lz rk
"#$3%&'#3'3&0