Assignment 1:

5th question:
A(n) _____ reflects a company's awareness of how, when and where is
shouldcompete, against whom it should compete and for what purpose it should
compete.
A.Vision
B.Organizational structure
C.Strategy
D.Long-term objective

6th question:
Investors in a company judge the adequacy of the returns on their
investment in relation to:
a. the returns on other investments of similar risk..
b. the stock market's overall performance.
c. the initial size of the investment.
d. the prime interest rate.
7th question:
Intangible assets include:
a. the firm's reputation.
b. a firm's borrowing capacity.
c. depreciated capital assets.
d. manufacturing facilities.

8th question:
Suppliers are powerful when:
a. satisfactory substitutes are available.
b. they sell a commodity product.
c. they offer a credible threat of forward integration.
d. they are in a highly fragmented industry.

9th question:
The terms strategic management and strategy implementation are synonymous.
(False)

10th question:
Which of the following is an element of a firm's remote external environment?
A. Competition
B. Suppliers
C. Government agencies
D. Economic and social conditions.

11th question
Strategic issues require which level of management decisions?
A. Operative
B. Top
C. Front-line
D. Middle
12th question:
A strategic manager that seeks to reach acceptable profit targets as opposed to making as much
profit as possible is making decisions of which type?
a) Satisfactory
b) Satisfying
c) Irrational
d) Optimal

13th question: An integral part of strategy implementation must be to

evaluate the quality of the strategic-management process.
Ans: False

14th question:The changes that occurred at Disney after Robert Iger took
over as CEO exemplifies the fact that more and more organizations are
centralizing the strategic-management process.
Ans: False

15th question: 'Reputation' in the context of an organization's resources can provide

competitive advantage because:
a) It is difficult to copy
b) It is based on word-of-mouth
c) It is a threshold resource
d) It is explicit
Feedback:
A good reputation is a strategic resource (as long as it is valuable) because it is
difficult to copy.
16th question: An integrated and coordinated set of commitments and
actions designed to exploit core competencies and gain a competitive
advantage in a specific product market is a definition of:
a. business strategy.
b. core competencies.
c. sustained competitive advantage.
d. strategic mission.
17th question: What is the recommended length of an effective mission
statement?
a. One page
b. Less than 200 words
c. One sentence of 10 to 20 words.
d. There is no recommendation. It can be as long as the management
wants.
18th question : Buyers are powerful when:
a. there is not a threat of backward integration.
b. they are not a significant purchaser of the supplier's output.
c. there are no switching costs.
d. the buyers' industry is fragmented.

19th question:
Analytical and intuitive thinking should complement each other.
Ans: True.

20th question: (Page no: 210 in our Textbook)

BCG Matrix
BCG matrix has four cells, 1. Stars 2. Cash cows 3.Question marks and 4. Dogs
1. Stars represent business units having large market share in a fast growing
industry. The may generate cash but because of fast growing market, stars
require huge investments to maintain their lead. Net csh flow is usually
modest. SBUs located in this cell are attractive as they are located in a
robust industry and these business units are highly competatibe in the
industry. If successful, a star will become a cash cow when the industry
matures.
2. Cash cows: Cash cows represent business units having large market share in
a mature, slow growing industry, Cash cows require little investment and
generate cash that can be utilized for investment in other business units.
These SBUs are the corporations key source of cash, and are specifically the
core business. They are the base of the organixation these businesses usually
follow stability strategies. When cash cows loose their appeal and move
towards deterioration then retrenchment policy may be pursued.
3. Question marks:
What does Dog symbolize in BCG matrix?
a) Growth
b) Decline
c) Maturity
d) Introduction.

21st question:
In the case where an organization acquires its supplier, this is an example
of:
a) Horizontal integration
b) Forwards vertical integration
c) Backwards vertical integration
d) Downstream vertical integration

22nd question: When a firm seeks the benefits of global integration and local
adaptation, it is best described as which type of strategy?
a) Transnational
b) Global
c) Multi-national
d) Global-local
Feedback:
There are different ways of structuring and controlling an organization according to
what type of international presence is being sought.
23rd question: Strategic decisions are based on what managers _____,
rather than on what they _____.
A. Forecast; know
B. React to; anticipate
C. Know; forecast
D. Compromise with; analyze.
24th question:
The word tactic is most likely to be associated with:
a) Corporate strategy
b) Business Strategy
c) Operational Strategy
d) All of the above.
25th question:
In a turbulent and competitive free enterprise environment, a firm will
succeed only if it takes a(n) ____ stance towards change.
A. Reactive - Given

B. Anti-regulatory or anti-government
C. Proactive
D. Vision and not mission.

26th question:
Strategic management involves the _____, directing, _____ and controlling of
a company's strategy-related decisions and actions.
A. Financing; marketing.
B. Planning; financing
C. Marketing; planning
D. Planning; organizing.

28th question:
Interest rate increases have an ________ impact on the residential home
construction industry and an ___ effect on industries that produce
consumer necessities, such as prescription drugs or basic grocery items.
A) Positive; negligible
B) Positive; negative
C) Negative; positive
D) Negative; negligible.
29th question:
A vision statement answers the question, What is our business?, whereas
a mission statement answers, What do we want to become?
Ans: False
30th question:
The set of decisions and actions resulting in the formulation and
implementation of plans designed to achieve a company's objectives is
defined as:
A. Strategic policy

B. Business policy
C. Strategic management
D. Tactics
31st Question :
Which of these is not a reason why some firms do not have strategic
planning?
a) Laziness
b) Competitive leadership
c) Honest difference of opinion
d) Poor reward structures.
32nd question:
Application of the strategic-management process is typically more formal
in larger and well-established organizations.
Ans: True

33rd Question:
In the middle of the decision-making hierarchy is the _____ level.
A. Corporate
B. Functional
C. Business
D. Strategic
34th question:
Optimizing for tomorrow the trends of today is the purpose of strategic
management.
Ans: False
35th question:
In company's environment, company's customers are part of which of the
following?
a) Internal environment

b) ) Micro environment
c) ) Macro environment.
36th question
Growth, retrenchment and stability are examples of __________________?
a) Corporate strategies
b) Business Strategies can be right and wrong too)
c) Functional Strategies
d) None of the above
37th question:
According to research, a healthier workforce can more effectively and
efficiently implement strategies.
Ans: True

38th question:
The _______ comprises economic and social conditions, political priorities
and technological developments, all of which must be anticipated,
monitored, assessed and incorporated into the executive's decision
making.
A. Remote external environment
B. Task environment
C. Operating environment
D. Internal environment
39th question:

Who determines the basis on which a company can compete in the

selected product-market arena? (Page no 50)
A. Functional-level strategic managers
B. Corporate-level strategic managers
C. Business-level strategic managers
D. Operational managers supervising operative

40th question:

The strategy of TATA Motors would be:

a) Functional Strategy
b) Corporate Strategy
c) Business Strategy.
41st question:
Managers must be very formal in strategic planning because formality induces
flexibility and creativity.

Ans: False
42nd question:
In BCG matrix, what is the label of the horizontal axis?
a) Stage in product life cycle
b) Market share
c) Industry growth rate
d) Business strength
e) Product range
f) Market growth rate
43rd question: Customer needs are related to the:
a. characteristics that can be used to subdivide a large market into segments.
b. set of values exhibited by a group of customers.
c. use of core competencies to implement a strategy.
d. benefits and features of a good or service that customers want to
purchase.

44th question: In contrast to the industrial organization model, in a

resource-based model, which of the following factors would be considered
a key to organizational success?
a. unique market niche.
b. weak competition.
c. economies of scale.
d. loyal employees.

45th question: One of the fundamental strategy evaluation activities is

reviewing external and internal factors that are the bases for current
strategies.
Ans: True
46th question: The top of the decision-making hierarchy comprises all of
these EXCEPT

A. Board of directors
B. Front-line managers
C. The CEO
D. Administrative officers
47th question: Strategic-management must be a self-reflective learning
process that familiarizes managers and employees in the organization
with key strategic issues and feasible alternatives for resolving those
issues.
Ans: True

48th question The competencies or skills that a firm employs to transform

inputs into outputs are:
A) Tangible resources.
B) Intangible resources.
C) Organizational capabilities.
D) Reputational resources.
49th question: A vision statement is, in essence, a companys game plan.
Ans: False
50th question
51st question: To find out what an organization's strategy is, you should:
a) Read the mission statement
b) Look at what the organization actually does( Acc to internet)
c) Read the strategic plan( According to UPES site)
d) Ask the CEO.
52nd question: When implementing a focus strategy, the firm seeks:

a. to be the lowest cost producer in an industry.

b. to offer products with unique features for which customers will pay a premium.
c. to avoid being stuck in the middle
d. to serve the specialized needs of a market segment.
53rd question: A firm successfully implementing a differentiation strategy
would expect:
a.
b.
c.
d.

customers to be sensitive to price increases

to charge premium prices
customers to perceive the product as standard.
to automatically have high levels of power over suppliers.

54th question: Once a firm acquires a competitive advantage, they are

usually able to sustain the competitive advantage for an extended period
of time.
Ans: False
55th question:
56th question: A clear mission statement describes the values and priorities of an
organization.
Ans: False
57th question:

58th question: As of 2004, Wal-Mart was the largest corporation in the

world.
Ans True
59th question: According to Albert Einstein, Knowledge is far more
important than intuition.
Ans: False
60th question: A company's ability to meet its short-term financial
obligations is measured by which of the following categories?

A)liquidity ratios
B)profitability ratios
C)activity ratios
D)leverage ratios
61st question A cost leadership strategy provides goods or services with
features that are:
a. acceptable to customers.
b. unique to the customer.
c. highly valued by the customer.
d. able to meet unique needs of the customer

62nd question: Today, managers and employees can be found personally

liable if they ignore, conceal, or disregard a pollution problem.
Ans True
63rd question: By monitoring external events, companies should be able to
identify when change is required.
Ans False
64th Question: The __________ environment is composed of elements in the
broader society that can influence an industry and the firms within it
.a. general
b. competitor
c. sociocultural
d. industry.
65th question: In the last five years, the position of chief strategy officer
(CSO) has diminished in comparison to other top management ranks of
many organizations.

Ans False
66th question: The interests of an organization's stakeholders often
conflict, and the organization must prioritize its stakeholders because it
cannot satisfy them all. The ________ is the most critical criterion in
prioritizing stakeholders.
a. power of each stakeholder
b. urgency of satisfying each stakeholder
c. importance of each stakeholder to the firm
d. influence of each stakeholder
67th question: An industry is defined as:
a group of firms producing the same item.
b. firms producing items that sell through the same distribution channels.
c. firms that have the same seven digit standard industrial code.
d. a group of firms producing products that are close substitutes.
68th question: An objective, logical, systematic approach for making major decisions in an
organization is a way to describe the strategic-management process.
Ans: True
69th question: Although the Internet has increased in popularity, it has actually led to increases in
company expenses
Ans False

70th question:
Upper limits on the prices a firm can charge are impacted by:
a. expected retaliation from competitors. According to internet

b. the cost of substitute products.(as per UPES site)

c. variable costs of production.d. customers' high switching costs

71st question:

The doubling of EPS within 5 years with increases in each intervening year is called a(n):
A. Long-term goal(Acc to internet)
B. Long-term objective (Acc to UPES website)
C. Short-term goal
D. Short-term objective
Question 72: Resource allocation is included in strategy-formulation activities. True

Question 73: The poor reward structure is one reason managers do not engage in
strategic planning. Ans True
Question 74: 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.
Question 75: A company using a narrow scope in its business strategy is:
a. following a cost leadership business strategy.
b. focusing on a broad array of geographic markets.
c. limiting the group of product segments served.
d. likely to earn only average returns.

Question 76: Investors in a company judge the adequacy of the returns on their investment in
relation to:
a. the returns on other investments of similar risk.
b. the stock market's overall performance.
c. the initial size of the investment
.d. the prime interest rate.
Question 78: Which of the following statements is not true when describing a successful
strategy?

a) It provides some property that is unique or distinctive

b) It provides the means for renewing competitive advantage
c) It addresses changes in the external environment
d) It guarantees long term survival

Question 79: