1. The fundamental purpose for the existence of any organization is described by its a. policies b. mission c. procedure

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1. The fundamental purpose for the existence of any organization is described by its a. policies b. mission c. procedures d. strategy 2. The fundamental purpose of an organization"s mission statement is to a. create a good human relations climate in the organization b. define the organization"s purpose in society c. define the operational structure of the organization d. generate good public relations for the organization 3. The acronym SWOT stands for a. Special Weapons for Operations Timeliness b. Services, Worldwide Optimization, and Transport c. Strengths Worldwide Overcome Threats d. Strengths, Weaknesses, Opportunities, and Threats 4. Which of the following is NOT a characteristic of strategic management that makes it different from other types of management? A. It is interdisciplinary. B. It has an external focus. C. It has an internal focus. D. It concerns the present direction of the organization. 5. Which of the following is an issue considered in developing corporate strategies? A. What business(es) are we in? B. What direction are we going? C. What resources do we have to implement our strategies? D. What businesses are we in and what to do with those businesses? 6. Which of the following is NOT a major element of the strategic management process? A. Formulating strategy B. Implementing strategy C. Evaluating strategy D. Assigning administrative tasks 7. Competitive advantage can best be described as: A. increased efficiency. B. what sets an organization apart. C. a strength of the organization. D. intangible resources. 8. American Airlines starting an airfare war by drastically reducing prices is an example of a change in the __________ environment. A. internal B. external C. resource D. modified environment 9. The various organizational routines and processes that determine how efficiently and effectively the organization transforms its inputs into outputs are called: A. strengths. B. core competencies. C. capabilities. D. customer value. 10. When defining strategic management the most important thing to remember is that it is: a. Not as easy as you think b. Mainly the province of senior managers c. A living evolving process d. More conceptual than practical e. A way of determining responsibilities 11. An organisation"s strategy: a. remains set in place longer than the mission and objectives b. generally forms over a period of time as events unfold c. tends to be formed at the same time the mission is developed and objectives are formulated d. is usually conceived at a single time when managers sit down and work out a comprehensive strategic plan for the next 3-5 years 12. The primary focus of strategic management is: a. strategic analysis b. the total organisation c. strategy formulation d. strategy implementation. 13. Which of the following is not an advantage of strategic management? a. It provides organisations with a clearer sense of direction and purpose b. It helps improve the political, economic, social and technological environment of the organisation c. It helps orientate management decisions to relevant environmental conditions d. It helps organisations be proactive rather than reactive 14. Which of the following defines what business or businesses the firm is in or should be in? a. Business strategy b. Corporate strategy c. Functional strategy d. National strategy 15. Which of the following defines how each individual business unit will attempt to achieve its mission? a. Business strategy b. Corporate strategy c. Functional strategy d. National strategy 16 Which of the following focuses on supporting the corporate and business strategies? a. Competitive strategy b. Corporate strategy c. Operational strategy d. National strategy e. Mission strategy 17. Which one of the following is not a primary task of strategic managers? a. Establishing strategic objectives b. Developing the steps to follow in implementing operational level plans c. Defining the business and developing a mission d. Developing a strategy e. Implementing and evaluating the chosen strategy 18 The task of strategy choice involves: a. developing plans and activities which will improve the organisation"s performance and competitive position b. determining how the organisation can be more market and efficiency oriented c. monitoring whether the organisation is achieving good financial performance d. keeping the organisation free of debt 19. Which one of the following is at the core of strategic management? a. Choosing which organisational objectives to focus on b. Being alert for opportunities to change work responsibilities c. Adapting the organisation to a changing external environment d. Choosing whether to make decisions autocratically or on the basis of participation 20 The corporate level is where top management directs: A) all employees for orientation B) its efforts to stabilize recruitment needs C) overall strategy for the entire organization D) overall sales projections 21 The three organizational levels are: A) corporate level, business level, functional level B) corporate level, business unit level, functional level C) corporate strategy level, business unit level, functional level D) corporate strategy level, business level, specialist level 22 Which of the following is an example of competing on quick response? a. a firm produces its product with less raw material waste than its competitors b. a firm offers more reliable products than its competitors c. a firm"s products are introduced into the market faster than its competitors" d. a firm"s research and development department generates many ideas for new products 23. Which one of the following is NOT included in the Porter"s Five Forces model: a.Potential development of substitute products b. Bargaining power of suppliers c. Rivalry among stockholders d. Rivalry among competing firms 24. What is meant by the term "Stakeholder"? a. A person who is not related with a business. b. A person who is related with a business. c. A person who owns a business. d. A person who purchases the shares of a business. 25. Of the following, which one would NOT be considered one of the components of a mission statement? a. The target market for XYZ is oil and gas producers as well as producers of chemicals. b. XYZ shall hire only those individuals who have with sufficient educational levels so as to be of benefit to our customers c. The customers of XYZ shall include global and local consumers of gas and oil products and domestic users of nontoxic chemicals d. The technologies utilized by XYZ shall focus upon development of alternative sources of gas and oil so as to remain competitive within the industry 26. The strategic management process is a. a set of activities that will assure a temporary advantage and average returns for the firm. b. a decision-making activity concerned with a firm"s internal resources, capabilities, and competencies, independent of the conditions in its external environment. c. a process directed by top-management with input from other stakeholders that seeks to achieve above-average returns for investors through effective use of the organization"s resources. d. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness.. 27. The goal of the organization"s ____ is to capture the hearts and minds of employees, challenge them, and evoke their emotions and dreams. a. vision b. mission c. culture d. strategy 28. A firm"s mission a. is a statement of a firm"s business in which it intends to compete and the customers which it intends to serve. b. is an internally-focused affirmation of the organization"s financial, social, and ethical goals. c. is mainly intended to emotionally inspire employees and other stakeholders. d. is developed by a firm before the firm develops its vision. . 29. The environmental segments that comprise the general environment typically will NOT include a. demographic factors. b. sociocultural factors. c. substitute products or services. d. technological factors. 30. An analysis of the economic segment of the external environment would include all of the following EXCEPT a. interest rates. b. international trade. c. the strength of the U.S. dollar. d. the move toward a contingent workforce. 31. Product differentiation refers to the: a. ability of the buyers of a product to negotiate a lower price. b. response of incumbent firms to new entrants. c. belief by customers that a product is unique. d. fact that as more of a product is produced the cheaper it becomes per unit. 32. Which of the following is NOT an entry barrier to an industry? a. expected competitor retaliation b. economies of scale c. customer product loyalty d. bargaining power of suppliers 33. 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. 34. New entrants to an industry are more likely when (i.e., entry barriers are low when...) a. it is difficult to gain access to distribution channels. b. economies of scale in the industry are high. c. product differentiation in the industry is low. d. capital requirements in the industry are high. 35. 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. 36. The highest amount a firm can charge for its products is most directly affected by a. expected retaliation from competitors. b. the cost of substitute products. c. variable costs of production. d. customers" high switching costs. 37. All of the following are forces that create high rivalry within an industry EXCEPT a. numerous or equally balanced competitors. b. high fixed costs. c. fast industry growth. d. high storage costs. 38. According to the five factors model, an attractive industry would have all of the following characteristics EXCEPT: a. low barriers to entry. b. suppliers with low bargaining power. c. a moderate degree of rivalry among competitors. d. few good product substitutes. 39. Internal analysis enables a firm to determine what the firm a. can do. b. should do. c. will do. d. might do. 40. An external analysis enables a firm to determine what the firm a. can do. b. should do. c. will do. d. might do. 41. ____ is/are the source of a firm"s ____, which is/are the source of the firm"s ____. a. Resources, capabilities, core competencies b. Capabilities, resources, core competencies c. Capabilities, resources, above average returns d. Core competencies, resources, competitive advantage 42. In the airline industry, frequent-flyer programs, ticket kiosks, and e-ticketing are all examples of capabilities that are a. rare. b. causally ambiguous. c. socially complex. d. valuable. . 43. Firms with few competitive resources are more likely a. to not respond to competitive actions. b. respond quickly to competitive actions. c. delay responding to competitive actions. d. respond to strategic actions, but not to tactical actions. 44. Competitors are more likely to respond to competitive actions that are taken by a. differentiators. b. larger companies. c. first movers. d. market leaders. 45. What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives? a. Strategy formulation Strategy evaluation Strategy implementation Strategic management e. Strategic leading 46 Which of the following is not a cultural product? b. c. d. a. b. c. d. e. Rites Emotions Rituals Sagas Symbols 47 Which individuals are most responsible for the success and failure of an organization? a. b. c. d. e. Strategists Financial planners Personnel directors Stakeholders Human resource managers 48. Which sector of the economy would be most impacted by technological developments? a. b. c. d. e. forestry pharmaceuticals textiles metals paper 49Long-term objectives should be all of the following except: a. b. c. d. e. measurable. continually changing. reasonable. challenging. consistent. 50 What are guides to decision making? a. b. c. d. e. laws rules policies procedures goals 51. According to Greenley, strategic management offers all of these benefits except that a. b. c. d. e. it provides an objective view of management problems. it creates a framework for internal communication among personnel. it encourages a favorable attitude toward change. it maximizes the effects of adverse conditions and changes. it gives a degree of discipline and formality to the management of a business. 52. The vision and mission statement can often be found a. b. c. d. in the SEC report. in annual reports. on customer receipts. on supplier invoices. e. on community news bulletins 53. Which group would be classified as a stakeholder? a. Communities b. Banks c. Suppliers d. Employees e. All of these 55. The process of performing an external audit needs to include: a. b. c. d. e. only top level managers, as it’s a planning function. as many managers and employees as possible. primarily front-line supervisors between 15 to 20 managers for it to be valid stockholders and external government agencies 56. Which of the following is not a stage of strategy formulation techniques? a. b. c. d. Formulation Framework Matching stage External factor evaluation Decision stage a. b. c. d. 57. ST Strategies is an important strategy to Match weakness with opportunities of the firm Overcome external threats Obtain benefit form its resources Overcome its weakness and reducing threats a. b. c. d. 58. Strategic Position and Action Evaluation Matrix is used in Formulation Framework Matching stage External factor evaluation Decision stage a. b. c. d. 59. Cash cows are always in Introductory industry Growing industry Mature industry Declining industry a. b. c. d. 60. In BCG matrix, the reason for choosing relative market share, rather than just profits, is that It carries more information than just cash flow It shows where the brand is positioned against its main competitors It indicates where it might be likely to go in the future All of the mentioned options a. b. c. d. a. b. c. d. 61. Those firms must make some drastic changes quickly to avoid further demise and possible liquidation that fall in__________ of grand strategy matrix Qurdant-1 Qurdant-2 Qurdant-3 Qurdant-4 62 . Strategy-formulation concepts and tools Do not differ greatly for different size and type of organizations Differ greatly for different size and type of organizations Do not differ greatly for profit or nonprofit organizations but differ in small and large organizations None of the mentioned options 63. Annual objectives Are not critical to success Serve as guidelines for action, directing and channeling efforts and activities of organization members c. Are not important for employee motivation and identification a. b. d. Do not provide a basis for organizational design a. b. c. d. 64. Annual objectives Need not to be consistent Should be easily achievable Should be measurable Should be confidential and not to be communicated throughout the organization a. b. c. d. 65. Which of the following resources is used by all organizations to achieve desired objectives? Financial resources, Physical resources, Human resources All of the mentioned options 66.Strategic management is a. b. c. d. A pure science. Based mainly on intuition. Needed mainly when organizational performance falls. Based on the use of quantitative and qualitative information. 67 . Business week reports that firms using mission statements have a __________ return on certain financial measures than those without such statements. a. b. c. d. 30% 35% 40% 45% 68. What is the best time to develop a mission statement? a. b. c. d. Before a business is opened When the firm is successful When the firm is in financial trouble When the firm is in legal trouble 69. Which of these basic questions should a vision statement answer? a. b. c. d. What is our business? Who are our employees? Why do we exist? What do we want to become? 70.__________ is not part of an external audit. a. b. c. Analyzing competitors Analyzing financial ratios Analyzing available technologies d. Studying the political environment 71. Strategic management process activate in the sequence of _____________ a) Environmental scanning, Strategy formulation, Implementation, control and evaluation b) Strategy formulation, Environmental scanning, Implementation, control and evaluation c) Environmental scanning, Strategy Implementation, formulation, control and evaluation d) Strategy formulation, Implementation, control, evaluation, Environmental scanning 72). KAPKAL Power’s interested to achieve a 10 percent return on equity (ROE) in their core electric utility, 14 percent ROE on water resource operations, and 15 percent ROE on support businesses. It is _________________ a) b) c) d) Mission Strategy Objective Policy 73). “A possible and desirable future state of an organization” is called: a) b) c) d) Mission Vision Strategy implementation None of above 74). “Walls” ice cream purchase “Polka” in order to capture the market. Such kind of integration is called: a) b) c) d) Forward Integration Backward Integration Horizontal Integration Product Development 75). “To improve economic strength of society and function as a good corporate citizen on a local, state, and national basis in all countries in which we do business”. This is a mission statement that contains: a) b) c) d) Self-concept Economic concern Products or Services Concern for Public Image 76). Strategic-management audit is known as: a) b) c) d) Environmental scanning Strategy formulation Strategy control Strategy evaluation a) b) c) d) 77). Forecasting tools can be broadly categorized into two groups. Those are: Qualitative, Operational Quantitative, Operational Qualitative, Quantitative Regression and time series analysis 78). ______________ identifies a firm"s major competitors and their particular strengths and weaknesses in relation to a sample firm"s strategic position. a) b) c) d) Competitive Profile Matrix External Factor Evaluation matrix Internal Factor Evaluation Matrix Boston consulting group matrix 79). Organizing means an identifiable group of people contributing their efforts towards the attainment of same goal. It is important at the time of: a) b) c) d) Environmental scanning Strategy formulation Strategy Implementation Strategy evaluation 80). ____________ involves assessing the costs, benefits, and risks associated with marketing decisions. a) b) c) d) Customer analysis Opportunity analysis Marketing Research Product and Service Planning 81. Which statement best describes intuition? a) It represents the marginal factor in decision-making. b) It represents a minor factor in decision-making integrated with analysis. c) It should be coupled with analysis in decision-making. d) It is better than analysis in decision-making. e) It is management by ignorance. 82. What are the means by which long-term objectives will be achieved? a. b. c. d. e. Strategies. Strengths. Weaknesses. Policies. Opportunities. 83. Which of these basic questions should a vision statement answer? a) b) c) d) e) What is our business? Who are our employees? Why do we exist? What do we want to become? Who are our competitors? 84. When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit. a. b. c. d. e. economic political technological competitive Multinational 85.__________ is not part of an external audit. a. b. c. d. e. Analyzing competitors Analyzing financial ratios Analyzing available technologies Studying the political environment Analyzing social, cultural, demographic and geographic forces 86. Which individuals are most responsible for the success and failure of an organization? a) b) c) d) e) Strategists Financial planners Personnel directors Stakeholders Human resource managers 87. Long-term objectives should be all of the following except: a) b) c) d) e) b. c. d. e. Measurable. Continually changing. Reasonable. Challenging. Consistent. 88. What are guides to decision making? a. laws rules policies procedures goals a) b) c) 89. Which group would be classified as a stakeholder? Communities Banks Suppliers d) e) Employees All of the given options 90. “If a strategist has identified that the market growth rate is 8 %, the number of sellers in industry are 52 and the industry"s products are differentiated.” Which one of the industry"s key success factors he is exploring? a. Economic forces b. Social forces c. Competitive forces d. Social forces 91. Which type of trend can be exemplified by the increasing numbers of two-income households in a society? a. Social b. Economic c. Cultural d. Technological 92 External assessment is performed in which of the strategic management phase? a. Strategy formulation stage b. Strategy implementation stage c. Strategy evaluation stage d. All of the given options 93. Political variables have a significant effect on a. Strategy formulation and implementation b. Strategy formulation and evaluation c. Strategy implementation and evaluation d. Strategy formulation, implementation and evaluation 94. Technological advancements can create which of the following advantage besides many other existing powerful advantages for the businesses? a. Economic b. Social c. Environmental d. Competitive 95. Which one of the statements is a good example of the competitive power of substitute products? a. The competition between cellular phones and computers b. The competition between Coca-Cola, Pepsi and 7up c. The competition between Amazon.com and traditional off-line bookstores 96. “The perfect search engine would understand exactly what you mean and give back exactly what you want”, this statement is included in the mission statement of an online firm and is showing which one of the following components? a. Self concept b. Concern for public image c. A declaration of attitude d. Philosophy 97. Which of the following are signs of weakness in a company"s competitive position? a. A return-on-equity is below 25% and earnings per share of less than Rs. 2.00 b. A price set by the firm higher than its rivals c. A declining market share, poor product quality and few sales in market d. Lower revenues and profit margin and narrow product line than the market leader 98. It directs at developing new products before competitors do at improving product quality or at improving manufacturing processes to reduce costs. a. Marketing b. Opportunity analysis c. Research and development d. Management 99. “Identifying and evaluating key social, political, economic, technological and competitive trends and events”. Which of the followings best describes this statement? a. Developing an effective mission statement b. Conducting an internal audit c. Performing an external audit d. Formulating strategy