McqMate
Chapters
1. |
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 |
Answer» B. It provides the means for renewing competitive advantage |
2. |
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 semipermanent basis |
D. | The physical assets of the organization |
Answer» D. The physical assets of the organization |
3. |
In the context of strategic management, stakeholders can be defined as: |
A. | An individual or group with a financial stake in the organization |
B. | An external individual or group that is able to impose constraints on the organization |
C. | Internal groups or individuals that are able to influence strategic direction of the organization |
D. | An individual or group with an interest in the organization's activities and who seeks to influence them |
Answer» C. Internal groups or individuals that are able to influence strategic direction of the organization |
4. |
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 |
Answer» D. Downstream vertical integration |
5. |
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 |
Answer» C. Multi-national |
6. |
Knowledge which is difficult to define and codify is known as: |
A. | Explicit |
B. | Tangible |
C. | Tacit |
D. | Random |
Answer» A. Explicit |
7. |
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 |
Answer» C. The resource-based view |
8. |
'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 |
Answer» A. It is difficult to copy |
9. |
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 |
Answer» A. Satisfactory |
10. |
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 |
Answer» B. Riskiness |
11. |
'Logical incrementalism' can be described as: |
A. | Careful design and planning |
B. | Emergent |
C. | Cautious resource allocation |
D. | Top management rational analysis |
Answer» D. Top management rational analysis |
12. |
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 |
Answer» C. The command mode |
13. |
'Influence' is defined as the ability to ____________ someone to something they would not otherwise have done. |
A. | Intimidate |
B. | Force |
C. | Order |
D. | Persuade |
Answer» A. Intimidate |
14. |
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 |
Answer» A. Business |
15. |
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 |
Answer» B. Fit, internal resources, external environment |
16. |
Diversification into many unrelated areas is an example of: |
A. | Risk management |
B. | Good management |
C. | Uncertainty reduction |
D. | Sustainability |
Answer» C. Uncertainty reduction |
17. |
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 |
Answer» C. Lock-out |
18. |
Corporate governance is concerned with: |
A. | Executive remuneration, disclosure of information, auditing and accounting procedures, and organizations' management structures |
B. | Elections to the board of directors |
C. | Relationships with national governments |
D. | Corporate-level strategy |
Answer» C. Relationships with national governments |
19. |
The principal-agent problem is concerned with: |
A. | Procurement |
B. | Appropriation of shareholders' investment by a firm's managers |
C. | How to control a firm's distributors and dealers |
D. | Corporate social responsibility |
Answer» D. Corporate social responsibility |
20. |
Which of the following industries is least likely to follow the conventional life-cycle model? |
A. | Software development |
B. | Coal mining |
C. | Insurance broking |
D. | Hairdressing |
Answer» A. Software development |
21. |
Brandenburger and Nalebuff added a sixth force to Porter's Five Forces. It is known as: |
A. | The threat of substitutes |
B. | The power of complementors |
C. | Seller power |
D. | Government regulation |
Answer» A. The threat of substitutes |
22. |
The Six Forces framework is based on the principle of: |
A. | Resource-based view |
B. | Conduct - structure - performance |
C. | Econometrics |
D. | Structure - conduct – performance |
Answer» A. Resource-based view |
23. |
In the Six Forces, the 'threat of new entrants' relates to: |
A. | Barriers to entry |
B. | Substitutes |
C. | Switching costs |
D. | Buyer power |
Answer» D. Buyer power |
24. |
An industry characterized by irregular patterns of stability, rapid technological change, high uncertainty and global competition can be described as: |
A. | Hypercompetitive |
B. | Hyperactive |
C. | Atypical |
D. | Co-optive |
Answer» D. Co-optive |
25. |
A situation in which the joint moves of two firms can determine how much money each firm can make or lose can be explained using the story of: |
A. | The Trojan Horse |
B. | The Icarus Paradox |
C. | The Prisoner's Dilemma |
D. | The Icarus Dilemma |
Answer» D. The Icarus Dilemma |
26. |
In the context of environmental analysis, 'munificence' means: |
A. | The extent to which resources are freely available to support firms in an industry and enable them to grow |
B. | The extent to which it is diverse |
C. | The extent to which it is stable or turbulent |
D. | The extent to which the industry follows the conventional life-cycle stages |
Answer» C. The extent to which it is stable or turbulent |
27. |
A 'market driven' firm will typically: |
A. | Develop new products and then find someone to sell them to |
B. | Define the target market and produce products that will satisfy those customers' needs |
C. | Operate in a product-oriented fashion |
D. | Suffer from market-myopia |
Answer» B. Define the target market and produce products that will satisfy those customers' needs |
28. |
Segmentation is a way of: |
A. | Subdividing markets |
B. | Subdividing industries |
C. | Differentiating products |
D. | Subdividing organizations into departments |
Answer» A. Subdividing markets |
29. |
A B2C market is: |
A. | Business to commercial |
B. | Business to consumer |
C. | Business to contract |
D. | Business to corporate |
Answer» D. Business to corporate |
30. |
Segmentation is a compromise between two ideals: mass marketing and: |
A. | Customization |
B. | Uniformity |
C. | Innovation |
D. | Convergence of tastes |
Answer» B. Uniformity |
31. |
Porter's generic strategies are: |
A. | Low price, differentiation, focus |
B. | Cost leadership, differentiation, cost focus, focus differentiation |
C. | Price leadership, differentiation, focus |
D. | Low cost, differentiation, focus differentiation |
Answer» B. Cost leadership, differentiation, cost focus, focus differentiation |
32. |
According to Porter, if an organization does not follow either a cost leadership strategy or a differentiation strategy they are: |
A. | Hybrid |
B. | Stuck in the middle |
C. | Typical |
D. | No frills |
Answer» C. Typical |
33. |
Subsidiaries consider regional environment for policy / Strategy formulation is known as |
A. | Polycentric Approach |
B. | Regiocentric Approach |
C. | Ethnocentric Approach |
D. | Geocentric Approach |
Answer» B. Regiocentric Approach |
34. |
According to this theory the holdings of a country’s treasure primarily in the form of gold constituted its wealth. |
A. | Gold Theory |
B. | Ricardo Theory |
C. | Mercantilism |
D. | Hecksher Theory |
Answer» C. Mercantilism |
35. |
Which is not an Indian Multinational Company? |
A. | Unilever |
B. | Asian Paints |
C. | Piramal |
D. | Wipro |
Answer» A. Unilever |
36. |
Globalization refers to: |
A. | Lower incomes worldwide |
B. | Less foreign trade and investment |
C. | Global warming and their effects |
D. | A more integrated and interdependent world |
Answer» D. A more integrated and interdependent world |
37. |
A likely consequence of rationalization is: |
A. | Lower number of employees |
B. | Lower revenues |
C. | Higher costs |
D. | Price decrease |
Answer» C. Higher costs |
38. |
A likely consequence of merger and acquisition is: |
A. | Lower revenues |
B. | Price increase |
C. | Higher costs |
D. | Price decrease |
Answer» B. Price increase |
39. |
All the following statements are correct except: |
A. | Case studies examine specific mergers and look for firm specific examples of merger benefits. |
B. | Stock market studies tend to suggest that most of the stock market gains from merger accrue to shareholders of target firms. |
C. | Financial and accounting studies typically conclude that mergers benefit shareholders |
D. | Case studies, the stock market and financial accounting based studies typically conclude that mergers are not always a good idea. |
Answer» C. Financial and accounting studies typically conclude that mergers benefit shareholders |
40. |
All of the following examples are hypothetical cases of horizontal growth except: |
A. | Coca Cola and Pepsi Cola merge |
B. | Manchester United and Manchester City merge |
C. | British Airways and Easyjet merge |
D. | Ford and Michelin merge |
Answer» D. Ford and Michelin merge |
41. |
In 90’s the global management perception was based on |
A. | Standardization v/s adaptation |
B. | Globalization v/s localization |
C. | Global integration v/s Local Responsiveness |
D. | Local responsiveness |
Answer» C. Global integration v/s Local Responsiveness |
42. |
Which of the following is an advantage of turnkey projects? |
A. | Can earn a return on knowledge asset |
B. | Will not create a competitor |
C. | Tight control of operations |
D. | All the above |
Answer» A. Can earn a return on knowledge asset |
43. |
The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of |
A. | Subsidiary |
B. | Joint venture |
C. | Strategic International Alliance |
D. | License agreement |
Answer» C. Strategic International Alliance |
44. |
CISF pricing includes the following |
A. | Commission is paid to the agent involved in the transaction |
B. | Cost of the goods exported |
C. | Freight & Insurance charges for the goods exported |
D. | All of the above |
Answer» D. All of the above |
45. |
When the transaction is of high value, complex In nature and more technical __________ method of export sales contract is used. |
A. | Performa invoice |
B. | Purchase order |
C. | Sales contact |
D. | None of the above |
Answer» C. Sales contact |
46. |
Vertical mergers are those in which the participants are |
A. | In the same industry. |
B. | In different industries |
C. | In different phases of the value chain |
D. | None of the above. |
Answer» C. In different phases of the value chain |
47. |
Which of the following are commonly cited reasons for M&As? |
A. | Synergy |
B. | Market power |
C. | Strategic realignment |
D. | All of the above |
Answer» D. All of the above |
48. |
A merger is a combination of businesses in which |
A. | Two businesses combine to form a new business. |
B. | The participants are necessarily comparable in size, competitive position, Profitability, and market capitalization. |
C. | One of the two firms becomes a wholly owned subsidiary of the other firm. |
D. | None of the above. |
Answer» D. None of the above. |
49. |
All of the following are common motives for a merger or acquisition except for |
A. | Operating synergy. |
B. | Financial synergy. |
C. | Raising the cost of capital. |
D. | Buying undervalued assets. |
Answer» C. Raising the cost of capital. |
50. |
Buyers can exercise high bargaining power over their suppliers if |
A. | The volume they buy accounts for a large percentage of their suppliers sales. |
B. | There are few buyers in the market. |
C. | They have many suppliers to choose from. |
D. | There is a high concentration of suppliers. |
Answer» A. The volume they buy accounts for a large percentage of their suppliers sales. |
51. |
The generic competitive strategies are |
A. | Overall Cost Leadership |
B. | Cost Focus |
C. | Differentiation and Focused Differentiation |
D. | All the above |
Answer» D. All the above |
52. |
What are core competences? |
A. | Resources which critically underpin competitive advantage and that others cannot obtain. |
B. | Activities and processes needed to meet customers' minimum requirements and therefore to continue to exist. |
C. | Key skills required for success in a particular business. |
D. | Activities that underpin competitive advantage and are difficult for competitors to imitate or obtain. |
Answer» D. Activities that underpin competitive advantage and are difficult for competitors to imitate or obtain. |
53. |
Synergy' can best be explained by which of the sums below? |
A. | 2+2=5. |
B. | 2+2=4. |
C. | 2-2=1. |
D. | 2-2=0. |
Answer» A. 2+2=5. |
54. |
What do you mean by the term “holding company” is: |
A. | organization with a balanced portfolio of individual businesses |
B. | decentralized organization with a small head office that organizes finance for the subsidiaries |
C. | centralized organization with a small head office that helps subsidiaries develop and finance their strategies |
D. | decentralized organization with a large head office that offers a broad range of advice and services to subsidiaries |
Answer» B. decentralized organization with a small head office that organizes finance for the subsidiaries |
55. |
A firm with a functional director for 6 areas with an area director for 3 functions. There, staff at each area will be reporting to 2 bosses. This firm has which type of structure? |
A. | Project structure |
B. | Matrix structure |
C. | Divisionalized structure |
D. | Front-back structure |
Answer» B. Matrix structure |
56. |
Organization structure that is a functional or divisional structure but at the same time also includes project teams for dealing with specific issues is called: |
A. | An M-form structure |
B. | A front-back structure |
C. | A networked structure |
D. | A hybrid structure |
Answer» D. A hybrid structure |
57. |
Organization whose structure is divided into two main parts - one dealing with product groups and one dealing with customer segments is called: |
A. | A front-back structure |
B. | A product-customer structure |
C. | A back to back structure |
D. | A matrix structure |
Answer» A. A front-back structure |
58. |
Choose the right sentence |
A. | Organization's structure would be expected to evolve as it grew larger and more diverse |
B. | Every organization starts out with a simple structure, then moves to a functional structure before becoming divisionalized |
C. | Network structures are superior to functional ones |
D. | Organizational performance will suffer if the structure is not stable |
Answer» A. Organization's structure would be expected to evolve as it grew larger and more diverse |
59. |
Format of reporting and for decision making relationships can be defined as the organizational: |
A. | Span of control |
B. | Architecture |
C. | Hierarchy |
D. | Chain of command |
Answer» C. Hierarchy |
60. |
Main component of Organization's architecture are structural hierarchy, values and belief systems, contracts and relationships and (two more): |
A. | Control systems and ways of working |
B. | Information infrastructure and power structures |
C. | Control systems and power structures |
D. | Control systems and information infrastructure |
Answer» D. Control systems and information infrastructure |
61. |
‘Vertical architecture' is the one which has: |
A. | Has a tall hierarchy |
B. | Has many layers of management |
C. | Extends beyond the boundaries of legal ownership |
D. | Is very bureaucratic |
Answer» C. Extends beyond the boundaries of legal ownership |
62. |
Five dimensions are used to judge Organizational structures and systems (ABCDE) to assess whether they are achieving an appropriate balance. These five dimensions are Autonomy, Bureaucracy, Cultural Control, Decentralization and: |
A. | Equal Opportunities |
B. | Economic Incentives |
C. | Equality and Diversity |
D. | Evidence of Learning |
Answer» B. Economic Incentives |
63. |
Those Organizations that are relatively good at developing some relevant capabilities to respond to a changing context are known as: |
A. | Knowing organizations |
B. | Stretch organizations |
C. | Learning organizations |
D. | Absorptive organizations |
Answer» C. Learning organizations |
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