Strategic Management & Business Policy, 12e (Wheelen Hunger) PDF

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Strategic Management & Business Policy - MCQs 1. The concept of ‘Strategic window’ was introduced by ___. A. Michael Porter B. Peter Drucker C. Hamel D. Abell 2. In what type of organisation there is a greater focus on growth and development and also diversification in terms of both products and markets? A. Multinational companies B. Public sectors C. Small businesses D. Non-profit organisations 3. In what type of organisations, the focus is more on ideology, social responsibilities and underlying values rather than revenue generation? A. Multinational companies B. Public sectors C. Small businesses D. Non-profit organisations 4. Functional strategies are sometimes called as ___. A. Process strategies B. Corporate strategies C. Business-unit level strategies D. Operational strategies 5. ___ is concerned with overall purpose or objective of the organisation; for example, making decision such as mergers, acquisition or going for joint ventures. A. Business-unit level strategies B. International strategies C. Corporate strategies D. Operational strategies 6. The formal-structured approach of SMP is also sometimes called as ___ mode. A. execution B. planning C. adaptive D. opportunistic 7. A basic advantage of ___ approach is that it generates enough information and employs scientific tools of analysis which enable planners and decision makers to find solutions even in complex situations A. formal-structured B. adaptive C. entrepreneurial-opportunistic D. combination 8. The system by which business corporations are directed and controlled is called ___ A. Corporate Governance B. Corporate Social Responsibility C. Strategic Management D. Organisational Planning 1

9. Corporate governance is primarily guided by ___. A. Customers B. Shareholders C. Employees D. Board of Directors 10. The affairs of the company are directed and controlled through the ___ who represent the shareholders of the company A. Board of Directors B. Senior managers C. Middle management D. Managing Director and the Chief Executive Officer 11. The ___ system should clearly address the three major issues of an organisation – the corporate objective, whom the organisation should be serving and finally how best to serve their interests. A. Corporate Governance B. Policy making C. Strategic D. Planning 12. The interrelationship or interdependence between governance and strategy can be seen through ___ in the organisation. A. tasks and practices B. a chain in the reporting system C. structure D. processes adopted 13. ___ is a new tool for systematic review of strategy by board members without directly involving themselves with management of companies. A. Strategic review B. Management review C. Strategic planning D. Strategic audit 14. In governed corporation, the focus is not on power (i.e., not on monitoring or controlling the managers) but on___. A. improving decision making B. talent retention C. social responsibility D. sustainability 15. Management thinkers like Peter Drucker feel that business definition should strongly focus on the ___. A. Shareholders B. Suppliers C. Customers D. Employees 16. The ___ of a company is variously called a statement of philosophy, a statement of beliefs and a statement of purpose. A. mission statement B. vision statement C. quality principles D. policy 2

17. ___ involves setting goals or targets which demand stretching of the present resource base and capabilities for their fulfillment. A. Strategic intent B. Strategic objectives C. Social audit D. Strategic plan 18. ___ can be defined as the alignment of business operations with social values. A. Corporate Governance B. Corporate Social Responsibility C. Business policy D. Sustainability 19. ___ evaluates or measures a company’s performance against planned or laid down social objectives or goals. A. Social audit B. Strategic intent C. Strategic audit D. Strategic review 20. ___ of a company is one of its special or unique competence which gives that company a clear competitive advantage over its competitors. A. Distinctive competence B. Core competence C. Strategic competence D. Threshold competence 21. Xerox’s competence in photo copying and Canon’s competence in optics, imaging and laser control are examples of ___ competence. A. Strategic B. Threshold C. Distinctive D. Core 22. ___ is the unique capability that helps an organisation in capitalizing upon a particular opportunity. A. Core competence B. Distinctive competence C. Strategic competence D. Threshold competence 23. Various competencies and resources of an organisation can be integrated into a chain of activities which an organisation performs to meet customer demand. This is called as ___. A. value chain B. product life cycle C. innovation D. business process 24. In order to secure or sustain competitive advantage, ___ may have to be continuously developed and adjusted to competence levels. A. skills B. talent C. resources D. equipments 3

25. In order to improve the competitive position, companies are adopting ___, that is, moving one or more of the functions in the value chain outside. A. strategic outsourcing B. Business process re-engineering C. Corporate restructuring D. subcontracting 26. The national income, the manufacturing and service sector, capital or financial sector, investment, savings, etc., constitute the ___ environment. A. Economic B. Sociological C. Micro D. political 27. Prevailing tendencies, course of action or events taking place over time like movements in national income, inflationary tendencies, growth in industrial production, etc., are known as ___. A. Patterns B. macro activities C. Trends D. fluctuations 28. A ___ is a detailed and probable view of how the business environment of an organisation may develop in the future based on the analysis of key environmental influences and factors of change about which there is a high degree of uncertainty. A. Scenario B. Vision C. Mission D. Policy 29. In addition to environmental analysis, organisations need to assess their internal strengths and weaknesses. This is done through ___. A. SWOT analysis B. Scenario building C. PEST analysis D. Benchmarking 30. The focus of ___ is on developing and maintaining competitive advantage consistent with present resources and market requirements. A. dynamic strategy B. stability strategy C. competitive strategy D. generic strategy 31. In the BCG model, ‘BCG’ stands for ___. A. Boston Consulting Group B. Business Communication Group C. Business Consulting Group D. Benchmark Consulting Group

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32. The BCG model is also known as ___. A. Johari Window B. evaluation matrix C. Generic strategy model D. portfolio matrix 33. In Michael Porter’s theory, the four generic strategic options available to companies are cost leadership, focused cost leadership, differentiation and ___. A. diversification B. focused differentiation C. uniqueness D. mass customization 34. Porter’s theory is based on the concepts of ___ and mass marketing and product proposition to be offered by different companies. A. niche marketing B. differentiated marketing C. customised marketing D. innovation 35. The manner in which the corporate headquarters manages and nurtures individual businesses or SBUs is called__. A. Corporate parenting B. Management nurturing C. Corporate cultivation D. Corporate education 36. ___ businesses fit well with parenting characteristics but do not provide enough opportunities to the parent for improvement. A. Value trap B. Ballast C. Heartland businesses D. Alien territory 37. To ascertain the acceptability and commercial viability of a new product, it is necessary to conduct ___ before launching the product. A. User Acceptability test B. test marketing C. pilot study D. survey 38. Market development for existing products can take place in two ways: first is through geographic expansion in the existing market segments and second is through ___. A. coming up with new features for existing products B. new marketing techniques C. developing new market segments D. more advertisements 39. The kind of diversification in which new business has commonalities with the core business or core competence of the company is called ___. A. Related diversification B. unrelated diversification C. concentric diversification D. conglomerate diversification 5

40. ___ is less related to the present business and skills and resources (except financial) and may mean venturing into an entirely new area. A. Related diversification B. Unrelated diversification C. concentric diversification D. conglomerate diversification 41. ___ is defined as cooperation between two or more organisations with a common objective, shared control and contributions (in terms of resources, skills and capabilities) by the partners for mutual benefits. A. Strategic alliance B. Joint venture C. Merger D. Acquisitions 42. A ___ may be defined as a business venture in which two or more independent companies join together, contribute to equity capital in equal or agreed proportion and establish a new company. A. Strategic alliance B. Joint venture C. Merger D. Acquisitions 43. The basic objective behind all strategic alliances is to ___. A. secure competitive advantage in the market B. increase sales C. increase market share D. improve operational processes 44. ___ is a type of merger which takes place when there is combination of two or more companies in the same business or product group or product. A. Vertical merger B. Horizontal merger C. Synergic merger D. Concentric merger 45. ___ is a type of merger which takes place when there is a combination of two or more companies which are NOT in the same business but in related businesses or products. A. Horizontal merger B. Vertical merger C. Synergic merger D. Concentric merger 46. ___ takes place when a company enters into a downstream activity with respect to the same product line/ flow – for example, a garment manufacturer starts its own retail chain. A. Backward integration B. Horizontal integration C. Acquisition D. Forward integration

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47. ___ takes place when a company acquires a competing business or when two or more companies in competing businesses merge. A. Forward integration B. Joint venture C. Horizontal integration D. Vertical integration 48. A ___ is characterized by the existence of a large number of small and medium units and no single company has any significant market share. A. Emerging industry B. Mature industry C. Declining industry D. Fragmented industry 49. A ___ is one which has passed through transition from period of fast growth to more modest or stable growth. A. Fragmented industry B. Emerging industry C. Mature industry D. Declining industry 50. The competitive threat model or the five forces model was developed by ___ A. Michael E Porter B. Hamel C. C K Prahlad D. Peter Drucker

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