) 2012/2013 (

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Question one: please indicate or X (20 marks)
1.
)
(
Strategy formulation is often considered to be the most difficult stage in the strategic-
management process because it requires personal discipline, commitment and sacrifice.
2.
)
(
A firms strengths that cannot be easily matched or imitated by competitors are called
competencies.
3.
)
(
To successfully compete in local markets, managers must obtain a better knowledge of historical,
cultural, and religious forces that motivate and drive people in other countries.
4.
)
(
Strategy evaluation should have a long-run focus and avoid a short-run focus
5.
)
(
According to umelt, consistency and feasibility are largely based on a firms internal
assessment.
6.
)
(
The decreasing time span for which planning can be done with any degree of certainty is a
reason strategy evaluation is more difficult today.
7.
)
(
Strategies may be inconsistent if policy problems and issues continue to be brought to the top
for resolution.
8.
)
(
Specific financial ratios are rarely used criteria to evaluate strategies.
9.
)
(
!orrective action in strategy evaluation is necessary to keep an organi"ation on track toward
achieving stated ob#ectives.
10.
)
(
The true measure of a good strategist is not only the ability to fi$ problems
11.
)
(
According to management by ob#ectives approach, the future is full of uncertainty and if first you
dont succeed, then you may on the second or third try.
12.
)
(
%ne of the fundamental strategy evaluation activities is reviewing e$ternal and internal factors
that are the bases for current strategies.
13.
)
(
!ustomer knowledge perspective as a part of &S! is related to meet the e$pectations of the
customer.
14.
)
(
%rgani"ing is the cornerstone of effective strategy formulation.
15.
)
(
'alue !hain Analysis can enable a firm to better identify its own strengths and weaknesses
especially as compared to competitors 'alue !hain Analyses.
16.
)
(
Successful strategy formulation will guarantee successful strategy implementation
17.
)
(
%b#ectives should be measurable, quantitative, challenging, realistic, consistent and prioriti"ed.
18.
)
(
(f an organi"ation chooses to have both a mission and a vision, the mission statement should be
established first.
19.
)
(
)hen developing a mission statement, it is usually advisable to involve as much
managers as possible.
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20.
)
(
According to *ichael +orter, five competitive forces create vital opportunities and threats to
organi"ations, -./ new entrants, -0/ substitute products or services, -1/ bargaining power of
suppliers, -2/ bargaining power of buyers, and -3/ rivalry among e$isting firms.
21.
)
(
The process of performing an internal audit, compared to the e$ternal audit, provides more
opportunity for participants to understand how their #obs, departments and divisions fit into the
whole organi"ation.
22.
)
(
4inkages between a firms culture and strategies often do not determine success.
23.
)
(
%rgani"ing is the cornerstone of effective strategy formulation.
24.
)
(
'alue !hain Analysis can enable a firm to better identify its own strengths and weaknesses
especially as compared to competitors 'alue !hain Analyses.
25.
)
(
Strategic ob#ectives include those associated with growth in revenues, growth in earnings, higher
dividends, larger profit margins and improved cash flow.
26.
)
(
&ackward integration is seeking ownership or increased control over competitors.
27.
)
(
5ivestiture is selling all of a companys assets, for their tangible worth.
28.
)
(
6orward integration strategy is especially effective when the availability of quality distributors is
so limited as to offer a competitive advantage to those firms that integrate forward.
29.
)
(
*arket penetration, market development, product development are intensive strategies.
30.
)
(
+roduct development includes introducing present products into new geographic areas.
31.
)
(
*arket development is a strategy that seeks increased sales by improving or modifying present
products or services.
32.
)
(
etrenchment and turnaround are the same strategy.
33.
)
(
!ontrolling is the management function that is most important for the evaluation stage of the
strategic management process.
34.
)
(
The functions of information systems are growing in importance because organi"ations are
becoming more comple$, decentrali"ed and globally dispersed.
35.
)
(
Strategic management can be formal and informal process.
36.
)
(
(t is always easier to say you are going to do something -strategy implementation/
than to actually do it -strategy formulation/.
37.
)
(
Annual ob#ectives are key components in the strategic-management process because they dictate
how resources will be allocated.
38.
)
(
!onflict of any kind is avoidable in organi"ations.
39.
)
(
7$changing members of conflicting parties so each can gain an appreciation of the others point
of view e$emplifies a confrontation approach.
40.
)
(
The most comple$ of all designs is a matri$ structure.
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31 32 33 34 35 36 37 38 3 40
Question !"o: #$oose t$e ri%$t ans"er& (15 'arks)
1. Who should perform an internal audit?
a. A private auditing firm
b. The organi"ations accounting department
c. *anagers from different units of the organi"ation
d. A team of top-level managers .
e. The chief e$ecutive officer
2. The initial step to implementing value chain analysis is
a. Attaching a cost to each discrete activity.
b. 7stablishing costs in terms of time.
c. 7stablishing costs in terms of money.
d. !onverting the cost data into information by looking for competitive cost strengths and
weaknesses.
e. 5ividing a firms operations into specific activities or business processes.
3. Which of the following is the first step in developing an IFE atri!?
a. 5etermining the organi"ations structure
b. Summing the weighted scores for each variable
c. (dentifying the organi"ations strengths and weaknesses
d. (dentifying the organi"ations functions of business
e. 5etermining the lead strategist
". What principle is #uilt on the idea that there is no general plan for which way to go and
what to do?
a. *anaging by crisis
b. *anaging by e$trapolation
c. *anaging by ob#ectives
d. *anaging by hope
e. *anaging by e$ception
$. Which level of strategy is most li%ely not present in small firms?
a. !orporate8company
b. 6unctional
c. 5ivisional
d. %perational
e. All of these are present in small firms
&. ac'onald opening its first restaurant in (apan is an e!ample of which type of strategy?
a. forward integration
b. backward integration
c. hori"ontal integration
d. market development
e. product development
). We# sites to sell products directly to consumers are e!amples of which type of strategy?
a. backward integration
b. product development
c. forward integration
d. hori"ontal integration
e. conglomerate diversification
*. What refers to a strategy of see%ing ownership of or increased control over distri#uters?
a. 6orward integration
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b. !onglomerate diversification
c. &ackward integration
d. 9ori"ontal integration
e. !oncentric diversification
+. What term refers to ,dding new- unrelated products or services for present customers
a. :oint venture
b. 5ivestiture
c. !oncentric diversification
d. 4iquidation
e. 9ori"ontal diversification
1.. What occurs when two or more companies form a temporary partnership or consortium for
the purpose of capitali/ing on some opportunity.
a. etrenchment
b. A #oint venture
c. 4iquidation
d. 6orward integration
e. 5ivestiture
11. 0trategy formulation
a. (s managing forces during the action.
b. 6ocuses on efficiency.
c. (s primarily an operational process.
d. equires coordination among many people.
e. all of the above
12. Which of these is true a#out strategy implementation?
a. (t is positioning forces before the action.
b. (t focuses on effectiveness.
c. (t is primarily an operational process.
d. (t is primarily an intellectual process.
e. (t requires intuitive skills.
13. Which approach for managing and resolving conflict involves ignoring the pro#lem in
hopes that the conflict will resolve itself?
a. Avoidance
b. esistance
c. !ompliance
d. 5iffusion
e. !onfrontation
1". What is the cornerstone of effective strategy evaluation?
a. Adequate and timely feedback
b. ;uality and quantity of managers
c. Smaller ratio of top- to lower-level management
d. 7valuation preceding implementation stage
e. Taking corrective actions
1$. ,ll of the following are reasons strategy evaluation is more difficult today except:
a. A dramatic increase in the environments comple$ity.
b. The increasing number of variables.
c. The increase in the number of both domestic and world events affecting organi"ations.
d. The decreasing difficulty of predicting the future with accuracy.
e. The rapid rate of obsolescence of even the best plans.
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Question t$ree
,1 5efine the following concepts,
Strategy
Strategy evaluation
Strategy implementation
+olicy
%utsourcing
21 5escribe the process of performing internal audit<

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3uestion Three ,, )hat are the main obstacles facing the effective implementation of
the strategy<
21 +ropose five questions for management Audit<


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3uestion for students who did not do the mid e!am 456789 :;<=>?@ A9 BC< D:EF9: :GH I8J KLM@
5efine strategic management and mention five benefits of employing this technique<

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