McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Commerce (M.com) .
| 1. |
The word “strategy” is derived from the Greek word “------" |
| A. | Strategos |
| B. | Stratum |
| C. | Strategy |
| D. | All of these |
| Answer» A. Strategos | |
| 2. |
---------- can also be defined as “a general direction set for the company and its various components to achieve a desired state in the future. |
| A. | Goal |
| B. | Objectives |
| C. | Mission |
| D. | Strategy |
| Answer» D. Strategy | |
| 3. |
----------- is concerned with the determination of the basic long-term goals and the objectives of an enterprise, and the adoption of courses of action and allocation of resources necessary for carrying out these goals. |
| A. | Policies framing |
| B. | Mission statement |
| C. | Target setting |
| D. | Strategic Management |
| Answer» D. Strategic Management | |
| 4. |
Which of the following is not a characteristic of strategic Management? |
| A. | Strategic issues require top-management decisions |
| B. | Strategic issues involve the allocation of large amounts of company resources |
| C. | Strategic issues are future oriented |
| D. | None of these |
| Answer» D. None of these | |
| 5. |
------------ strategy occupies the highest level of strategic decision making and covers actions dealing with the objective of the firm, acquisition and allocation of resources and coordination of strategies of various SBUs for optimal performance. |
| A. | SBU |
| B. | Corporate level |
| C. | Functional |
| D. | Operational |
| Answer» B. Corporate level | |
| 6. |
The fundamental purpose for the existence of any organization is described by its |
| A. | policies |
| B. | mission |
| C. | procedures |
| D. | strategy |
| Answer» B. mission | |
| 7. |
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 |
| Answer» B. Define the organization’s purpose in society | |
| 8. |
The acronym SWOT stands for |
| A. | Strategic Weakness Overcoming Tools |
| B. | Services, Works, Operation and Tools |
| C. | Strengths, weakness, Overcome and Threats |
| D. | Strengths, Weaknesses, Opportunities, and Threats |
| Answer» D. Strengths, Weaknesses, Opportunities, and Threats | |
| 9. |
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. |
| Answer» D. It concerns the present direction of the organization. | |
| 10. |
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? |
| Answer» C. What resources do we have to implement our strategies? | |
| 11. |
Which of the following is NOT a major element of the strategic management process? |
| A. | Formulating strategy |
| B. | Implementing strategy |
| C. | Assigning administrative tasks |
| D. | Evaluating strategy |
| Answer» C. Assigning administrative tasks | |
| 12. |
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. |
| Answer» A. increased efficiency. | |
| 13. |
is the foundation of blue ocean strategy. |
| A. | Innovation |
| B. | Value creation |
| C. | Value innovation |
| D. | value cost trade-off |
| Answer» C. Value innovation | |
| 14. |
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. |
| Answer» B. core competencies. | |
| 15. |
When defining strategic management, the most important thing to remember is that itis: |
| A. | Not as easy as you think |
| B. | Mainly the province of senior managers |
| C. | A living evolving process |
| D. | More conceptual than practical |
| Answer» C. A living evolving process | |
| 16. |
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 |
| Answer» B. generally, forms over a period of time as events unfold | |
| 17. |
The primary focus of strategic management is: |
| A. | strategic analysis |
| B. | the total organisation |
| C. | strategy formulation |
| D. | strategy implementation. |
| Answer» B. the total organisation | |
| 18. |
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 |
| Answer» B. It helps improve the political, economic, social and technological environment of the organisation | |
| 19. |
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 |
| Answer» B. Corporate strategy | |
| 20. |
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 |
| Answer» A. Business strategy | |
| 21. |
---------- strategy defines the uses of corporate strategy and specific tactics for each market. |
| A. | Business strategy |
| B. | Corporate strategy |
| C. | Functional strategy |
| D. | Operational strategy |
| Answer» A. Business strategy | |
| 22. |
----------- strategy defines the day to day actions need to deliver the corporate and business strategies. |
| A. | Core strategy |
| B. | Operational Strategy |
| C. | Corporate strategy |
| D. | Functional strategy |
| Answer» D. Functional strategy | |
| 23. |
Which of the following focuses on supporting the corporate and business strategies? |
| A. | Competitive strategy |
| B. | Corporate strategy |
| C. | Operational strategy |
| D. | Mission strategy |
| Answer» C. Operational strategy | |
| 24. |
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 |
| Answer» B. Developing the steps to follow in implementing operational level plans | |
| 25. |
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 |
| Answer» A. developing plans and activities which will improve the organisation’s performance and competitive position | |
| 26. |
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 |
| Answer» C. Adapting the organisation to a changing external environment | |
| 27. |
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 |
| Answer» C. overall strategy for the entire organization | |
| 28. |
The three main 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 |
| Answer» A. corporate level, business level, functional level | |
| 29. |
The functional level strategy of marketing function is divided into various operating levels such as marketing research, sales promotion, etc. these types of strategies are called. |
| A. | Business strategy |
| B. | Corporate strategy |
| C. | Functional strategy |
| D. | Operational strategy |
| Answer» D. Operational strategy | |
| 30. |
Which of the following is/are not an element/s of strategic management Process? |
| A. | Scanning |
| B. | Formulation |
| C. | Implementation |
| D. | None of these |
| Answer» D. None of these | |
| 31. |
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 |
| Answer» C. Rivalry among stockholders | |
| 32. |
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. |
| Answer» B. A person who is related with a business. | |
| 33. |
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. |
| Answer» D. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness. | |
| 34. |
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 |
| Answer» A. vision | |
| 35. |
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. |
| Answer» A. is a statement of a firm’s business in which it intends to compete and the customers which it intends to serve. | |
| 36. |
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. |
| Answer» C. substitute products or services. | |
| 37. |
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. |
| Answer» D. the move toward a contingent workforce. | |
| 38. |
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. |
| Answer» C. belief by customers that a product is unique. | |
| 39. |
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 |
| Answer» D. bargaining power of suppliers | |
| 40. |
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. |
| Answer» D. one-time costs customers incur when buying from a different supplier. | |
| 41. |
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. |
| Answer» C. product differentiation in the industry is low. | |
| 42. |
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. |
| Answer» C. fast industry growth. | |
| 43. |
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 products substitute. |
| Answer» A. low barriers to entry. | |
| 44. |
Internal analysis enables a firm to determine what the firm: |
| A. | can do. |
| B. | should do. |
| C. | will do. |
| D. | might do. |
| Answer» A. can do. | |
| 45. |
An external analysis enables a firm to determine what the firm: |
| A. | can do. |
| B. | should do. |
| C. | will do. |
| D. | might do. |
| Answer» D. might do. | |
| 46. |
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 |
| Answer» A. Resources, capabilities, core competencies | |
| 47. |
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. |
| Answer» D. valuable. | |
| 48. |
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. |
| Answer» C. delay responding to competitive actions. | |
| 49. |
Competitors are more likely to respond to competitive actions that are taken by |
| A. | differentiators. |
| B. | larger companies. |
| C. | first movers. |
| D. | market leaders. |
| Answer» D. market leaders. | |
| 50. |
------- 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 |
| B. | Strategy evaluation |
| C. | Strategy implementation |
| D. | Strategic management |
| Answer» D. Strategic management | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.