DEPARTMENT OF

BUSINESS ADMINISTRATION

Registration #:______________Name:________________________

SUBJECT: STRATEGIC MANAGEMENT

Attempt all questions. MID TERM Total: 30 Marks
Time: 30 Hours

Part I 10 Marks Time: 30 Min

Please encircle the correct answer

Part I-A TRUE/ FALSE

1 Strategic management is one decision that determines the short-term T F

performance of a corporation.
2 One of the benefits of strategic management is a clearer sense of T F
vision for the firm.

3 The internal environment includes the variables of opportunities and T F

threats.
4 A business strategy may include competitive or cooperative T F
strategies.

5 A strategic decision is rare, consequential, and directive. T F

6 To be effective, strategic management must be a formal process. T F

7 Environmental sustainability reflects business practices to reduce a T F

firm's impact on the physical environment.

8 The term corporate governance refers to the relationship among the T F

board of directors, top management, and the shareholders in
determining the direction and performance of the corporation.

9 Environmental scanning is the monitoring, evaluating, and T F

disseminating of information from the external and internal
environments to key people within the corporation

10 The corporate culture generally reflects the values of the founder(s) T F

and the mission of the firm.
 DEPARTMENT OF
BUSINESS ADMINISTRATION

Part I-B MULTIPLE CHOICE

11 The emphasis of strategic management is on

A monitoring and evaluating external opportunities and threats in light of a

corporation's strengths and weaknesses.
B first line managers.
C the short-run performance of the corporation.
D an examination of the organization's internal environment.
E an investigation of competitor actions.

12 In the final phase of strategic management, strategic information is available

to
A people throughout the organization.
B the top management responsible for decision making.
C middle management.
D operational personnel.
E only those responsible for implementing the strategy.

13 Strategic planning within a small organization

A may be informal and irregular

B must be elaborate to allow for future growth.
C should always be formalized and explicitly stated.
D should be done by the president only.
E is unnecessary and a waste of time.

14 The ability of an organization to reshape its environment is described by

A population ecology theory.
B theory institution.
C the strategic choice perspective.
D organizational learning theory.
E organizational citizenship theory.

15 The S in S.W.O.T. stands for

A strategies.
B scanning.
C strengths.
D societal.
E sociocultural
 DEPARTMENT OF
BUSINESS ADMINISTRATION

16 The variables structure, culture, and resources pertain to the

A external environment.
B internal environment.
C sociocultural forces.
D task environment.
E societal environment.

17 Which of the following is NOT a task of the board of directors in strategic

management?
A to monitor
B to implement
C to influence
D to initiate and determine
E to evaluate

18 The ________ boards typically never initiate or determine strategy unless a

crisis occurs.
A rubber stamp
B active participation
C catalyst
D nominal participation
E minimal review

19 When a board of directors is involved to a limited degree in the performance

or review of selected key decisions, indicators, or programs of management,
there is a ________ degree of involvement.
A rubber stamp
B nominal participation
C active participation
D minimal review
E phantom

20 Which of the following is NOT an element of the organization's task

environment?
A local communities
B trade associations
C governments
D technological developments
E special interest groups
 DEPARTMENT OF
BUSINESS ADMINISTRATION

Part II 20 Marks Time 60 Min

Short answers

Each question carries 5 marks

1 Describe the environmental scanning?

2 Explain the strategy formulation and its elements?

3 Describe Porter's generic strategies?

4 Explain the types of strategies?