Strategic Management
M.COM PART 1
Question Bank 2020 ( MCQ PART 2 )
150 + Importance Strategic Management MCQ PDF
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1. 'Influence' is defined as the ability to ____________ someone to something they would not otherwise have done.
a) Intimidate
b) Force
c) Order
d) Persuade
ANS: D
2. McDonalds is deciding whether to expand into manufacturing kitchen equipment in China. At what level is this decision likely to be made?
a) Business
b) Corporate
c) Functional
d) International
ANS: B
3. The authors believe there are three tests that can be applied to judge whether a strategy is 'good'. These are:
a) Fit, distinctiveness, sustainability
b) Fit, internal resources, external environment
c) Distinctiveness, internal resources, fit
d) Sustainability, distinctiveness, external environment
ANS: A
4. Diversification into many unrelated areas is an example of:
a) Risk management
b) Good management
c) Uncertainty reduction
d) Sustainability
ANS: A
5. According to Porter, dealing with the paradox of premature commitment versus not enough commitment involves some kind of:
a) Trade-off
b) Lock-in
c) Lock-out
d) Diversification
ANS: A
6. 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
ANS: C
7. 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
ANS: A
8. Knowledge which is difficult to define and codify is known as:
a) Explicit
b) Tangible
c) Tacit
d) Random
ANS: C
9. Competitive advantage based on the creation of opportunities using internal resources is characterized by which approach/view?
a) The positioning approach
b) The outside-in approach
c) The resource-based view
d) The knowledge-management approach
ANS: C
10. 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
ANS: A
11. 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) Satisficing
c) Irrational
d) Optimal
ANS: B
12. A strategic decision can be distinguished from other types of decisions by three factors, these are magnitude, time-scale and:
a) Commitment
b) Riskiness
c) Impact
d) Longevity
ANS: A
13. Logical incrementalism' can be described as:
a) Careful design and planning
b) Emergent
c) Cautious resource allocation
d) Top management rational analysis
ANS: B
14. An organization in which strategy development is characterized by internal political negotiation and self-interest is operating in which strategy-making mode?
a) The transactive mode
b) The muddling through mode
c) The command mode
d) The emotional mode
ANS: B
15. 'Influence' is defined as the ability to ____________ someone to something they would not otherwise have done.
a) Intimidate
b) Force
c) Order
d) Persuade
ANS: D
16. McDonalds is deciding whether to expand into manufacturing kitchen equipment in China. At what level is this decision likely to be made?
a) Business
b) Corporate
c) Functional
d) International
ANS: B
17. The authors believe there are three tests that can be applied to judge whether a strategy is 'good'. These are:
a) Fit, distinctiveness, sustainability
b) Fit, internal resources, external environment
c) Distinctiveness, internal resources, fit
d) Sustainability, distinctiveness, external environment
ANS: A
18. Diversification into many unrelated areas is an example of:
a) Risk management
b) Good management
c) Uncertainty reduction
d) Sustainability
ANS: A
19. According to Porter, dealing with the paradox of premature commitment versus not enough commitment involves some kind of:
a) Trade-off
b) Lock-in
c) Lock-out
d) Diversification
ANS: A
20.
Vertical integration is concerned with
(A) supply chain
(B) production
(C) Quality
(D) planning
ANS: A
21.
________cost accounting measures the cost of producing and
ignores the cost of non-producing
(A) Lean
(B) Traditional
(C) Environmental
(D) Throughput
ANS: B
22.
ETOP stands for ________.
(A) environmental threat & opportunity project
(B) environmental threat & opportunity profile
(C) environmental treaty & opportunity profile
(D) environmental threat & optimum profile
ANS: B
23.
The control process requires the following types of
information
(A) Planned performance
(B) Variances
(C) Reasons
(D) All of the above
ANS: D
24.
Financial environment is concerned with
(A) demand & supply of money
(B) capital markets
(C) both ‘A’ and ‘B’
(D) None of the above
ANS: C
25.
The process of forecasting an organization’s 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
ANS: C
26.
It is designed to monitor a broad range of events inside
and outside the company that are likely to threaten a firm’s strategy
(A) Strategic surveillance
(B) Strategic planning
(C) both ‘A’ and ‘B’
(D) None of the above
ANS: A
27.
Horizontal
integration is concerned with
(A) Production
(B) Quality
(C) Product planning
(D) All of the above
ANS: A
28.
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
ANS: B
29.
Micro
environment is the ………. environment of a company.
(A) Working
(B) Human
(C) External
(D) Internal
ANS: D
30.
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
ANS:
31.
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
ANS: D
32. Like roots of a tree, ________of organization is hidden from direct view.
(A) Performance
(B) Strategy
(C) Core competence
(D) All of the above
ANS: C
33.
Changes
in company ………. also necessitates changes in the systems in various degrees
(A) structure
(B) system
(C) strategy
(D) turnover
ANS: B
34.
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
ANS: A
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35.
Criteria
for making an evaluation is (are)
(A) Consistency with goals
(B) Consistency with environment
(C) Money
(D) All of the above
ANS: D
36.
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
ANS: B
37.
Strategic
management is mainly the responsibility of
(A) Lower management
(B) Middle management
(C) Top management
(D) All of the above
ANS: C
38.
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
ANS: D
39.
They
have time based utility
(A) Goals
(B) Resources
(C) both ‘A’ and ‘B’
(D) None of the above
ANS: C
40.
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
ANS: B
41.
Change in company’s ………. gives rise to problems
necessitating a new ……… to be made
(A) structure, strategy
(B) strategy, structure
(C) structure, structure
(D) strategy, strategy
ANS: B
42.
Systems are formal and informal rules and regulations that
complement the company ………..
(A) strategy
(B) structure
(C) system
(D) environment
ANS: B
43.
The reasons for acquisition are
(A) Increased market power
(B) Increased diversification
(C) Increased speed to market
(D) All of the above
ANS: D
44.
Market research is conducted by
(A) By employees
(B) By research agencies
(C) By consultants
(D) all of the above
ANS: D
45.
Harvest strategy is used for
(A) Dogs
(B) Question marks
(C) both ‘A’ and ‘B’
(D) none of the above
ANS: C
46.
These are critical situations that occur unexpectedly and
threaten the course of a firm’s strategy
(A) Crisis
(B) Emergency
(C) Shutdown
(D) All of the abovE
ANS: A
47.
Attack strategies are
(A) frontal attack
(B) flank attack
(C) encirclement attack
(D) all of the above
ANS: D
48. To find out what an organization's strategy is, you should:
a) Read the mission statement
b) Look at what the organization actually does
c) Read the strategic plan
d) Ask the CEO
ANS: B
49. 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
ANS: D
50. In the context of strategic management resources can be defined as:
a) The knowledge and skills within the organization
b) Something that an organization owns or controls that cannot be copied
c) Something that an organization owns, controls or has access to on a semi-permanent basis
d) The physical assets of the organization
ANS: C