McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Business Administration (MBA) .
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. | |
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