1.

The term _________ is used to refer to strategy formulation, implementation, and

evaluation, with _________referring only to strategy formulation.

A. Strategic planning; strategic management B. Assessment; planning

C. Strategic management; strategic planning D. Management cycle; brainstorming

2. Which of these requires a firm to establish annual objectives, devise policies, and allocate
resources?

A. Strategy formulation B. Strategy implementation

C. Strategy evaluation D. Strategy manipulation

3. Anything that a firm does especially well compared to rival firms is referred to as:

A. Competitive advantage. B. Comparative advantage.

C. An external opportunity. D. Opportunity cost

4. __________ are the individuals who are most responsible for the success or failure of an
organization.

A. Strategists B. Consultants C. Operatives D. Ethics Officers

5. A disadvantage of international operations is:

A. Competitors in foreign markets may not exist.

B. Language, culture, and value systems differ among countries, causing communication barriers
and problems managing people.

C. Economies of scale can be achieved from operation in global rather than solely domestic
markets.

D. Foreign operations can allow firms to establish low-cost production facilities in locations
close to raw materials and/or cheap labor.

6. The problem of limited resources within a firm makes ___________ particularly

important as the firm decides how to allocate its resources.

A. Long-range planning B. Short-term planning

C. Strategy formulation D. Strategy implementation

7. All of these are pitfalls an organization should avoid in strategic planning except:

A. Using strategic planning to gain control over decisions and resources.

B. Failing to involve key employees in all phases of planning.

C. Hastily moving from mission development to strategy formulation.

D. Using plans as a standard for measuring performance.

8. The process of conducting research and gathering and assimilating external information
is called:

A. Mission development B. Long range planning

C. Industry analysis D. Lobbying

9. The term strategic planning refers only to strategy formulation.

A. True B. False

10. The action stage of strategic management is called strategy formulation.

A. True B. False

11. ________ is the process by which a firm manages the formulation and implementation
of its strategy.

A. Total Quality Management B. Strategic Management

C. Micro Management D. Economic Logic

12.The two most critical questions that __________ strategy must address are how a
company will achieve its objectives today, when other firms may be competing to satisfy the
same customer's needs and how the firm plans to compete in the future.

A. Corporate B. Functional C. Operational D. Business

13. Which of the following is not one of the three fundamental questions addressed by
corporate strategy?

A. In what business will we compete?

B. How can we, as a corporate parent, add value to our various lines of business?
C. How will diversification or our entry into a new industry help us to compete in our other
industries?

D. How can we best position our operations to compete against present and future rivals within a
particular business?

14. Which of the following statements regarding strategy formulation and strategy
implementation is the most accurate?

A. Neither strategy formulation, nor strategy implementation can succeed without the other.

B. Strategy formulation is more important than strategy implementation.

C. Strategy implementation is more important than strategy formulation.

D. Neither strategy formulation, nor strategy implantation can have a significant impact on firm
performance.

15. All of the following are elements of the strategy diamond except

A. Vehicles B. Advantages C. Arenas D. Staging

16. Within the strategy diamond ______ refer(s) to decisions about the areas in which a
firm will be active including its products, services, distribution channels, market segments,
geographic areas, technologies, and even stages of the valuecreation process

A. Vehicles B. Arenas C. Differentiators D. Economic logic

17. The five elements of the strategy diamond are technologies, vehicles, differentiators,
staging, and economic logic.

A. True B. False

18. Which one is not a part of strategy formulation?

A. Business level strategy B. Corporate level strategy

C. Competitive dynamics D. Corporate governance

19. Which is not a part of strategy implementation?

A. Strategic Leadership B. Entrepreneurship & Innovation

C. Structure & Control D. International Strategy

20. Which is not a part of international strategy lifecycle?

A. Product Demand Develops and Firm Exports Products

B. Firm Introduces Innovation in Domestic Market

C. Production becomes standardized and is relocated to Low Cost Countries

D. Diversification Strategy
 Multiple Choice Questions (MCQ) on Strategic Management
1. Horizontal integration is concerned with
(A) Production

(B) Quality

(C) Product planning

(D) All of the above

2. It refers to formal and informal rules, regulations and procedures that

complement the company structure
(A) Strategy

(B) Systems

(C) Environment

(D) All of the above

3. Micro environment is the . environment of a company.

(A) Working

(B) Human

(C) External

(D) Internal

4. Techniques used in environmental appraisal are

(A) single-variable extrapolation/multivariable interaction analysis

(B) Structured/ unstructured expert/inexpert opinion

(C) Dynamic modes and mapping

(D) All of the above

5. Match The Following

 Question Your Answer

a. Ballast business 1. Give the highest priority

b. Gap analysis 2. Difference between desired and projected performance

c. Corporate parenting 3. Managing SBUs by a corporate

d. Heartland business 4. Fit well but low opportunities
The correct answer is

(A) a-1, b-3, c-2, d-4

(B) a-2, b-1, c-4, d-3

(C) a-4, b-2, c-3, d-1

(D) a-2, b-3, c-4, d-1

6. It enables the strategists to take corrective action at the right time

(A) Implementation control

(B) Special alert control

(C) Strategic Surveillance control

(D) Premise control

7. Like roots of a tree, ________of organization is hidden from direct view.

(A) Performance

(B) Strategy
 (C) Core competence

(D) All of the above

8. Changes in company . also necessitates changes in the systems in

various degrees
(A) structure

(B) system

(C) strategy

(D) turnover

9. The actual performance deviates positively over the budgeted

performance. This is an indication of .. performance.
(A) superior

(B) inferior

(C) constant

(D) any of the above

10. Criteria for making an evaluation is (are)

(A) Consistency with goals

(B) Consistency with environment

(C) Money

(D) All of the above

11. The . of any organization is the aggregate of all conditions,

events and influences that surround and affect it.
(A) system

(B) environment

(C) structure
 (D) strategy

12. Strategic management is mainly the responsibility of

(A) Lower management

(B) Middle management

(C) Top management

(D) All of the above

13. The major issue(s) of appraisal system is (are)

(A) Factors of appraisal

(B) Relevance of appraisal

(C) Procedure of appraisal

(D) All of the above

14. 14. They have time based utility

(A) Goals

(B) Resources

(C) both A and B

(D) None of the above

15. Formal systems are adopted to bring ________ & amalgamation of

decentralized units into product groups.
(A) Manpower

(B) Co-ordination

(C) Production

(D) All of the above

Answers:
1-(A), 2-(B), 3-(D), 4-(D), 5-(C), 6-(D), 7-(C), 8-(B), 9-(A), 10-(D), 11-(B), 12-
(C), 13-(D), 14-(C), 15-(B)
16. Change in companys . gives rise to problems necessitating a
new to be made
(A) structure, strategy

(B) strategy, structure

(C) structure, structure

(D) strategy, strategy

17. Systems are formal and informal rules and regulations that
complement the company ..
(A) strategy

(B) structure

(C) system

(D) environment

18. The reasons for acquisition are

(A) Increased market power

(B) Increased diversification

(C) Increased speed to market

(D) All of the above

19. Market research is conducted by

(A) By employees

(B) By research agencies

(C) By consultants

(D) all of the above

20. Vertical integration is concerned with

(A) supply chain
 (B) production

(C) Quality

(D) planning

21. ________cost accounting measures the cost of producing and

ignores the cost of non-producing
(A) Lean

(B) Traditional

(C) Environmental

(D) Throughput

22. Match the following

Question
a. Retrenchment Strategies
b. Divestment Strategies
c. Turnaround Strategies
(A) a-1, b-2, c-3
Correct Answer
1. Retrenchments either internally or externally
2. Contraction of activities through elimination of the
scope of one or more of its business
3. Involves the sale or liquidation of a portion of a
business

(B) a-3, b-2, c-1

(C) a-2, b-3, c-1

(D) a-3, b-1, c-2

23. ETOP stands for ________.

(A) environmental threat & opportunity project

(B) environmental threat & opportunity profile

(C) environmental treaty & opportunity profile

 (D) environmental threat & optimum profile

24. The control process requires the following types of information

(A) Planned performance

(B) Variances

(C) Reasons

(D) All of the above

25. Financial environment is concerned with

(A) demand & supply of money

(B) capital markets

(C) both A and B

(D) None of the above

26. The process of forecasting an organizations future demands for

and supply of right type of people in right number is
(A) Product planning

(B) Process planning

(C) Man power planning

(D) All of the above

27. It is designed to monitor a broad range of events inside and outside

the company that are likely to threaten a firms strategy
(A) Strategic surveillance

(B) Strategic planning

(C) both A and B

(D) None of the above

28. Harvest strategy is used for
(A) Dogs

(B) Question marks

(C) both A and B

(D) none of the above

29. These are critical situations that occur unexpectedly and threaten
the course of a firms strategy
(A) Crisis

(B) Emergency

(C) Shutdown

(D) All of the above

30. Attack strategies are

(A) frontal attack

(B) flank attack

(C) encirclement attack

(D) all of the above

Answers:
16-(B), 17-(B), 18-(D), 19-(D), 20-(A), 21-(B), 22-(C), 23-(B), 24-(D), 25-(C), 26-
(C), 27-(A), 28-(C), 29-(A), 30-(D)