McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Commerce (M.com) .
| 151. |
A firm successfully implementing a differentiation strategy would expect: |
| A. | customers to be sensitive to price increases. |
| B. | to charge premium prices. |
| C. | customers to perceive the product as standa |
| Answer» B. to charge premium prices. | |
| 152. |
A differentiation strategy provides products that customers perceive as having: |
| A. | acceptable features. |
| B. | features of little value relative to the value provided by the low-cost leader's product. |
| C. | features for which the customer will pay a low price. |
| D. | features that are non-standardized for which they are willing to pay a premium. |
| Answer» D. features that are non-standardized for which they are willing to pay a premium. | |
| 153. |
When implementing a focus strategy, the firm seeks: |
| A. | to be the lowest cost producer in an industry. |
| B. | to offer products with unique features for which customers will pay a premium. |
| C. | to avoid being stuck in the middle. |
| D. | to serve the specialized needs of a market segment. |
| Answer» D. to serve the specialized needs of a market segment. | |
| 154. |
----------- is a participative, systematic approach to planning and implementing a constant organizational improvement process. |
| A. | WPM |
| B. | TQM |
| C. | SCM |
| D. | QC |
| Answer» C. SCM | |
| 155. |
SCM Stands for ---------- |
| A. | Suppler-Customer and Money |
| B. | Supply Chain Management |
| C. | Supplier and Customer Management |
| D. | Sales Cost Management. |
| Answer» B. Supply Chain Management | |
| 156. |
VMOST Analysis tool is developed by: |
| A. | C K Prahlad |
| B. | Rakesh Sondhi |
| C. | Michael Porter |
| D. | R S Cooper |
| Answer» B. Rakesh Sondhi | |
| 157. |
VMOST stands for------- |
| A. | Value, Money, Organisation, Sales, Target |
| B. | Vision, Mission, Objective, Strategy, Tactics |
| C. | Value, Mission, Objective, Strategy, Tactics |
| D. | Vision, Money, Objective, Strategy, Technology |
| Answer» B. Vision, Mission, Objective, Strategy, Tactics | |
| 158. |
A ------------ is defined as an organization that has developed the capacity to continuously learn, adapt, and change. |
| A. | Change management |
| B. | Strategic Change |
| C. | Learning organisation |
| D. | Strategic organisation |
| Answer» C. Learning organisation | |
| 159. |
Vertical integration strategies |
| A. | Extend a company's competitive scope within the same industry by expanding its operations across more parts of the industry value chain |
| B. | Are one of the best strategic options for helping companies win the race for global market leadership |
| C. | Offer good potential to expand a company's line up of products and services |
| D. | All of these |
| Answer» A. Extend a company's competitive scope within the same industry by expanding its operations across more parts of the industry value chain | |
| 160. |
The two best reasons for investing company resources in vertical integration (either forward or backward) are to |
| A. | Expand into foreign markets and/or control more of the industry value chain |
| B. | Broaden the firm's product line and/or avoid the need for outsourcing |
| C. | Enable use of offensive strategies and/or gain a first mover advantage over rivals in revamping the industry value chain |
| D. | Strengthen the company's competitive position and/or boost its profitability |
| Answer» D. Strengthen the company's competitive position and/or boost its profitability | |
| 161. |
For backward vertical integration into the business of suppliers to be a viable and profitable strategy, a company |
| A. | Must first be a proficient manufacturer |
| B. | Must be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop-off in quality |
| C. | Must have excess production capacity, so that it has ample in-house ability to undertake additional production activities |
| D. | None of these |
| Answer» B. Must be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop-off in quality | |
| 162. |
The strategic impetus for forward vertical integration is to |
| A. | Gain better access to end users and better market visibility |
| B. | Achieve the same scale economies as wholesale distributors and/or retail dealers |
| C. | Control price at the retail level |
| D. | None of these |
| Answer» A. Gain better access to end users and better market visibility | |
| 163. |
A good example of vertical integration is |
| A. | A global public accounting firm acquiring a small local or regional public accounting firm |
| B. | A large supermarket chain getting into convenience food stores |
| C. | A crude oil refiner purchasing a firm engaged in drilling and exploring for oil |
| D. | All of these. |
| Answer» C. A crude oil refiner purchasing a firm engaged in drilling and exploring for oil | |
| 164. |
A strategic alliance: |
| A. | Is a collaborative arrangement where companies join forces to defeat mutual competitive rivals |
| B. | Involves two or more companies joining forces to pursue vertical integration |
| C. | Is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control and mutual dependence |
| D. | All the above. |
| Answer» C. Is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control and mutual dependence | |
| 165. |
Which of these is/are a basic activity of strategy evaluation? |
| A. | Reviewing the underlying internal and external factors that represent the bases of current strategies |
| B. | Measuring organizational performance |
| C. | Taking corrective actions |
| D. | All of the above |
| Answer» D. All of the above | |
| 166. |
Which of these is the cornerstone of effective strategy evaluation? |
| A. | Adequate and timely feedback |
| B. | Quality and quantity of managers |
| C. | Smaller ratio of top- to lower-level management |
| D. | Evaluation preceding implementation stage |
| Answer» A. Adequate and timely feedback | |
| 167. |
The purpose of strategy evaluation is to |
| A. | increase the budget annually. |
| B. | alert management to problems or potential problems. |
| C. | make budget changes. |
| D. | evaluate employees’ performance. |
| Answer» B. alert management to problems or potential problems. | |
| 168. |
Strategy evaluation is becoming with the passage of time. |
| A. | increasingly difficult |
| B. | much simpler |
| C. | very convenient |
| D. | an unnecessary activity |
| Answer» A. increasingly difficult | |
| 169. |
The overall strategy which is comprehensive in nature and provides the basis for strategic direction is known as---- |
| A. | Corporate strategy |
| B. | Grand strategy |
| C. | General strategy |
| D. | All of these |
| Answer» B. Grand strategy | |
| 170. |
Which of the following is/are stability strategies? |
| A. | No Change strategy |
| B. | Caution Strategy |
| C. | Profit Strategy |
| D. | All of these |
| Answer» D. All of these | |
| 171. |
Which of the following is not Growth/Expansion strategies? |
| A. | Caution strategy |
| B. | Vertical integration |
| C. | Diversification |
| D. | Cooperation |
| Answer» A. Caution strategy | |
| 172. |
Which of the following is retrenchment strategy? |
| A. | Turn around |
| B. | Divestiture |
| C. | Liquidation |
| D. | All of these |
| Answer» D. All of these | |
| 173. |
'Diversification strategy' is used to gain market share in |
| A. | current product in current market |
| B. | new products for new markets |
| C. | new products in new market |
| D. | new products in current markets |
| Answer» B. new products for new markets | |
| 174. |
Défense strategies in which the leader stretches over new market territories using market diversification is classified as |
| A. | mobile defence |
| B. | static defence |
| C. | stable defence |
| D. | unstable defence |
| Answer» A. mobile defence | |
| 175. |
Strategies such as diversification, penetration and market development are the part of |
| A. | extensive growth |
| B. | intensive growth |
| C. | integrative growth |
| D. | disintegrative growth |
| Answer» B. intensive growth | |
| 176. |
Strategies such as diversification, penetration and market development are part of |
| A. | extensive growth |
| B. | intensive growth |
| C. | integrative growth |
| D. | disintegrative growth |
| Answer» B. intensive growth | |
| 177. |
For intensive growth, the company first considers whether it could gain more market share with its current products in their current market, using a |
| A. | Market-penetration strategy |
| B. | Market development strategy |
| C. | Product-development strategy |
| D. | Diversification strategy |
| Answer» A. Market-penetration strategy | |
| 178. |
Select right order of intensive growth strategies: |
| A. | market-development strategy, market-penetration strategy, product development strategy |
| B. | Market-penetration strategy, market development strategy, product development strategy |
| C. | market-penetration strategy, product development strategy, market- development strategy |
| D. | None of the above |
| Answer» B. Market-penetration strategy, market development strategy, product development strategy | |
| 179. |
Market development strategy focuses on |
| A. | Current products and new markets |
| B. | Current products and current markets |
| C. | New products and current markets |
| D. | New products and new markets |
| Answer» A. Current products and new markets | |
| 180. |
Product development strategy for achieving intensive growth focuses on: |
| A. | Current products and new markets |
| B. | Current products and current markets |
| C. | New products and current markets |
| D. | New products and new markets |
| Answer» C. New products and current markets | |
| 181. |
Acquiring one or more suppliers for integrative growth is |
| A. | Horizontal integration |
| B. | Forward integration |
| C. | Backward integration |
| D. | None of the above |
| Answer» C. Backward integration | |
| 182. |
Acquisition of competitors for integrative growth is |
| A. | Horizontal integration |
| B. | Forward integration |
| C. | Backward integration |
| D. | None of the above |
| Answer» A. Horizontal integration | |
| 183. |
In , the company would seek new products that have marketing or technological synergies with existing product lines appealing to a new group of customers. |
| A. | Concentric diversification |
| B. | Horizontal diversification |
| C. | Conglomerate diversification |
| D. | None of the above |
| Answer» A. Concentric diversification | |
| 184. |
In , the company can develop new products that are technologically unrelated to its current product line and still can appeal to its current customers. |
| A. | Concentric diversification |
| B. | Horizontal diversification |
| C. | Conglomerate diversification |
| D. | None of the above |
| Answer» B. Horizontal diversification | |
| 185. |
In , the company may seek new opportunities that have no relation with its current technology, products, or markets. |
| A. | Concentric diversification |
| B. | Horizontal diversification |
| C. | Conglomerate diversification |
| D. | None of the above |
| Answer» C. Conglomerate diversification | |
| 186. |
Gary Hamel believes that |
| A. | Senior management hammers out the strategy and hands it down. |
| B. | Imaginative ideas on strategy exist in many places within a company |
| C. | The strategy comes from outside the organization |
| D. | None of the above |
| Answer» B. Imaginative ideas on strategy exist in many places within a company | |
| 187. |
Redefining how company gets paid or create innovative new revenue streams is of Business innovation. |
| A. | Value capture dimension |
| B. | Brand dimension |
| C. | Networking dimension |
| D. | Offerings dimension |
| Answer» A. Value capture dimension | |
| 188. |
Michael Porter has proposed generic strategies that provide a good starting point for strategic thinking. |
| A. | 3 |
| B. | 5 |
| C. | 4 |
| D. | 6 |
| Answer» A. 3 | |
| 189. |
A target market definition tends to focus on selling a product or service to a |
| A. | Current market |
| B. | Potential market |
| C. | Both a & b |
| D. | None of the above |
| Answer» A. Current market | |
| 190. |
A strategic market definition tends to focus on selling a product or service to a |
| A. | Current market |
| B. | Potential market |
| C. | Both a & b |
| D. | None of the above |
| Answer» B. Potential market | |
| 191. |
General Electric has classified its businesses into strategic business units. |
| A. | 42 |
| B. | 45 |
| C. | 49 |
| D. | None of the above |
| Answer» C. 49 | |
| 192. |
SBU (strategic business unit) is a unit that is usually responsible for its own budgeting, new product decisions, hiring decisions, and price setting. |
| A. | Semi-autonomous |
| B. | Autonomous |
| C. | Non-autonomous |
| D. | None of the above |
| Answer» A. Semi-autonomous | |
| 193. |
The purpose of identifying company's strategic business unit is: |
| A. | Developing separate strategies |
| B. | Assign appropriate funding |
| C. | Both a & b |
| D. | All of above are false |
| Answer» C. Both a & b | |
| 194. |
The BCG's Growth Share matrix uses and of market growth as criteria to make investment decisions. |
| A. | Relative market share and quarterly rate |
| B. | Relative market share and annual rate |
| C. | Absolute market share and annual rate |
| D. | Absolute market share and quarterly rate |
| Answer» B. Relative market share and annual rate | |
| 195. |
Opportunities to achieve further growth within current businesses are: |
| A. | Intensive Opportunities |
| B. | Integrative Opportunities |
| C. | Diversification Opportunities |
| D. | None of the above |
| Answer» A. Intensive Opportunities | |
| 196. |
Opportunities to build or acquire businesses that are related to current businesses: |
| A. | Intensive Opportunities |
| B. | Integrative Opportunities |
| C. | Diversification Opportunities |
| D. | None of the above |
| Answer» B. Integrative Opportunities | |
| 197. |
The useful framework for detecting new is called a "product-market expansion grid" |
| A. | Intensive opportunities |
| B. | Integrative opportunities |
| C. | Diversification opportunities |
| D. | None of the above |
| Answer» A. Intensive opportunities | |
| 198. |
Under ----------- approach of implementation strategies are moving from bottom to upward. |
| A. | Commander approach |
| B. | Organisational change approach |
| C. | Collaborative approach |
| D. | Crescive approach |
| Answer» D. Crescive approach | |
| 199. |
The most complex structure of Strategic organisation is: |
| A. | Functional |
| B. | Transnational |
| C. | Matrix |
| D. | Divisional |
| Answer» C. Matrix | |
| 200. |
Hofer’s Product matrix is also known as: |
| A. | GE Matrix |
| B. | BCG Matrix |
| C. | TOWS matrix |
| D. | Market Evaluation Matrix |
| Answer» D. Market Evaluation Matrix | |
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