MCQs in SM 1
MCQs in SM 1
MCQs in SM 1
2. Which of these requires a firm to establish annual objectives, devise policies, and allocate
resources?
3. Anything that a firm does especially well compared to rival firms is referred to as:
4. __________ are the individuals who are most responsible for the success or failure of an
organization.
B. Language, culture, and value systems differ among countries, causing communication barriers
and problems managing people.
C. Economies of scale can be achieved from operation in global rather than solely domestic
markets.
D. Foreign operations can allow firms to establish low-cost production facilities in locations
close to raw materials and/or cheap labor.
8. The process of conducting research and gathering and assimilating external information
is called:
A. True B. False
A. True B. False
11. ________ is the process by which a firm manages the formulation and implementation
of its strategy.
12.The two most critical questions that __________ strategy must address are how a
company will achieve its objectives today, when other firms may be competing to satisfy the
same customer's needs and how the firm plans to compete in the future.
13. Which of the following is not one of the three fundamental questions addressed by
corporate strategy?
B. How can we, as a corporate parent, add value to our various lines of business?
C. How will diversification or our entry into a new industry help us to compete in our other
industries?
D. How can we best position our operations to compete against present and future rivals within a
particular business?
14. Which of the following statements regarding strategy formulation and strategy
implementation is the most accurate?
A. Neither strategy formulation, nor strategy implementation can succeed without the other.
D. Neither strategy formulation, nor strategy implantation can have a significant impact on firm
performance.
15. All of the following are elements of the strategy diamond except
16. Within the strategy diamond ______ refer(s) to decisions about the areas in which a
firm will be active including its products, services, distribution channels, market segments,
geographic areas, technologies, and even stages of the valuecreation process
17. The five elements of the strategy diamond are technologies, vehicles, differentiators,
staging, and economic logic.
A. True B. False
D. Diversification Strategy
Multiple Choice Questions (MCQ) on Strategic Management
1. Horizontal integration is concerned with
(A) Production
(B) Quality
(B) Systems
(C) Environment
(B) Human
(C) External
(D) Internal
(B) Strategy
(C) Core competence
(B) system
(C) strategy
(D) turnover
(B) inferior
(C) constant
(C) Money
(B) environment
(C) structure
(D) strategy
(B) Resources
(B) Co-ordination
(C) Production
Answers:
1-(A), 2-(B), 3-(D), 4-(D), 5-(C), 6-(D), 7-(C), 8-(B), 9-(A), 10-(D), 11-(B), 12-
(C), 13-(D), 14-(C), 15-(B)
16. Change in companys . gives rise to problems necessitating a
new to be made
(A) structure, strategy
17. Systems are formal and informal rules and regulations that
complement the company ..
(A) strategy
(B) structure
(C) system
(D) environment
(C) By consultants
(C) Quality
(D) planning
(B) Traditional
(C) Environmental
(D) Throughput
(B) Variances
(C) Reasons
29. These are critical situations that occur unexpectedly and threaten
the course of a firms strategy
(A) Crisis
(B) Emergency
(C) Shutdown
Answers:
16-(B), 17-(B), 18-(D), 19-(D), 20-(A), 21-(B), 22-(C), 23-(B), 24-(D), 25-(C), 26-
(C), 27-(A), 28-(C), 29-(A), 30-(D)