59 MCQZ (50% FROM PAST)
4. Suggest that what can be the best way to overcome individuals' resistance to change while taking corrective actions. (3 marks)
5. Discuss any three guidelines that can be used to determine whether a firm should conduct R&D internally or externally (3 marks)
6. customer orientation and declaration of attitude.Discuss it by keeping in mind mission statement. (5 marks)
7. In IFE matrix if certain factor r assigned to following rating, how would u interpret these rating (3 marks)
Ratio = 2.1
Fall 2011MGT603- Strategic Management (Session - 4)
1. What is meant by Focused Differentiation?
►Concentrating on a particular feature of a product or service to achieve differentiation
►Concentrating on differentiation as the primary means of achieving competitive advantage
►Providing a high perceived value product to a selected market segment which justifies a substantial price premium
►Simultaneously seeking to achieve differentiation and a price lower than that of competitors
2. Waseem & Sons primarily want to gain control over the prices charged to consumers. What strategy will most likely be followed by Waseem & Sons?
► Market penetration
► Product development
► Forward integration p; 62
► Concentric Diversification
3. The company acquires or develops new products that could appeal to its current customer groups even though those new products may be technologically unrelated to the existing product lines. Which of the following best describes the statement?
► Horizontal diversification p; 92
► Market development
► Horizontal integration
4. A mission statement should “reconcile interests among diverse stakeholders”. What does it mean?
►All shareholders must be satisfied
►Shareholders should be given preference over customers
►Firm will devote attention to meeting claims of various stakeholders
►Firm will devote its attention towards the maximization of shareholders value
5. Which of the following statement is correct about distinctive competence?
►Is usually tied closely to the ability of a company's manufacturing capability and/or its proprietary technology and know-how
►Nearly always resides in the ability of the company's assets on its balance sheet rather than in its people
►Is better suited in helping companies defend against external threats than in pursuing external market opportunities
►Is a unique thing that a firm does really well and that quality or attribute sets it aside from its competitors
6. The Web sites that sell products directly to the consumers are the examples of which type of strategy?
7. Which of the following is NOT a situation when an organization should use an unrelated diversification strategy (horizontal diversification)?
►When an organization’s present channels of distribution can be used to market the new products to current customers
►Revenues from current products/services would increase significantly by adding the new related products
►When an organization competes in a highly competitive and/or a no-growth industry
►When the new products have counter-cyclical sales patterns compared to an organization’s present products
8. A series of ratios that measure the extent to which a firm has been financed by debt is known as:
► Activity ratios
► Leverage ratios P; 65
► Profitability ratios
► Liquidity ratios
9. Defensive strategies include all of the following EXCEPT:
► Acquisition p; 92
10. Which of the following statements describes a company's strategic vision?
►Gives a broad, aspiration image of the future that an organization is aiming to achieve
►Sets forth the long-range financial and strategic performance targets that organization seeks to achieve
►Indicates the boundaries of the company's present business
►Reflects how strategic objectives are to be achieved
11. Which of the following business actions is NOT considered to be unethical?
► Poor product or service safety
► Using non-union labor in a union shop
► Misleading advertising
► Too expensive products p; 15
12. Which of the following is the first step in developing an IFE Matrix?
► Summing the weighted scores for each variable
► Identifying the organization’s strengths and weaknesses
► Identifying the organization’s functions of business
► Determining the lead strategist
13. All of the following would be considered an Opportunity to a business EXCEPT which one of the following?
► Removal of international trade barriers
► Emergence of unfulfilled customer need
► Emergence of substitute products
► loosening of regulations
14. Which of the following are the two internal dimensions represented on the axes of the SPACE Matrix?
► Environmental stability and industry strength
► Industry strength and competitive advantage
► Competitive advantage and financial strength p; 100
► Financial strength and environmental stability
15. A good evaluation system must posses various qualities. Which of the following is not a characteristic of a good strategy evaluation system?
► Strategy-evaluation activities must be economical
► Strategy-evaluation activities should be meaningful
► Strategy-evaluation activities should dominate the decisions
► Strategy-evaluation activities should provide timely information
16. Identify which of the following are mostly based on a firm's internal assessment according to Richard Rumelt.
► Consistency and consonance
► Consonance and advantage
► Advantage and feasibility
► Feasibility and consistency
17. Which one of the following is an example of place decisions?
► Safety and packaging
► Personal selling
► Public relations & publicity
► Order processing
18. Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding environmental threats?
19. Which of these is TRUE about strategy implementation?
► It refers to positioning forces before the action
► It focuses on effectiveness
► It is primarily an operational process
► It is primarily an intellectual process
20. SPACE matrix has four quadrants. All of the following are SPACE Matrix quadrants EXCEPT:
21. After completing an EPS/EBIT analysis, what conclusions would you make?
► Debt appears to be the best financing alternative
► Stock would be the best financing alternative
► Combination of debt and stock is the best financial alternative
► Dividends must be considered before concluding
22. What is a central strategy-implementation technique that allows an organization to examine the expected results of various actions and approaches?
► Financial budgeting
► TOWS analysis
► Projected financial statement
► External analysis
23. Which of the following is NOT a major factor that commonly prohibits effective resource allocation?
► Overprotection of resources
► Organizational politics
► Vague strategy targets
► Ability to take risks
24. All of the following are strategic responsibilities of the human resource manager EXCEPT:
► Assessment of staff needs
► Assessment of costs for alternative strategies
► Development of staffing plan
► Development of financial plan
25. Which of the following is the first step in preparing a pro forma financial analysis?
► Prepare the projected balance sheet
► Perform EPS/EBIT analysis
► Calculate the projected net income
► Prepare the projected income statement
26. All of the following are primary activities of Porter’s supply chain model EXCEPT:
► Marketing and Sales
► Outbound Logistics
► Firm Infrastructure
► Inbound Logistics
27. How can an ESOP empower employees?
► It empowers employees to work as owners
► It empowers employees to make financial plan
► It empowers employees to assess customer’s needs
► It empowers employees to give training to other workers
28. What is the appropriate time frame for strategy-evaluation activities?
► At the beginning of a problem
► On a continuous basis
► Upon completion of major projects
► After the closing of financial year
29. In the Boston Consulting Group (BCG) growth-share matrix, which strategy in the matrix describes large generation of cash and heavy investment needed to grow and maintain competitive positioning but net cash flow is usually modest?
► Cash cows
► Question marks
30. What type of strategies would you recommend when a firm’s SPACE Matrix directional vector has the coordinates (-2, +3)?
31. Managerial disorder and strategic deviation will appear if there is power struggle and conflicts among the departments of organization. The situation negates which one of the Rumelt’s criteria?
Q1.What is the four ways of Divisional structure? Explain them?? 3marks
A divisional structure by geographic area
The divisional structure by product
Divisional structure by customer
Q2.What do you understand by the term Product and what can be the possible considerations that you will take into account while making decisions regarding a product or service? Marks: 3
The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:
• Brand name
Q3.Compare and contrast External opportunity and threat? 3marks
Q4.What is Contingency planning and its advantages? 3marks
It permitted quick response to change
it prevented panic in crisis situations
It made managers more adaptable by encouraging them to appreciate just how variable the future can be.
Q5. Why the worth of the business is important in successful strategy implantation? Marks: 5
Evaluating the Worth of a Business
Evaluating the worth of a business is central to strategy implementation because integrative, intensive, and diversification strategies are often implemented by acquiring other firms. Other strategies, such as retrenchment and divestiture, may result in the sale of a division of an organization or of the firm itself.
Q6.Describe 2 types of Integrative strategy with example? 5marks
Q7.Seymour Tilles acknowledged six qualitative questions that are practical in evaluating strategies. You are required to identify any five of them. Marks: 5
Seymour Tilles identified six qualitative questions that are useful in evaluating strategies:
1. is the strategy internally consistent?
2. Is the strategy consistent with the environment?
3. Is the strategy appropriate in view of available resources?
4. Does the strategy involve an acceptable degree of risk?
5. Does the strategy have an appropriate time framework?
6. is the strategy workable?
What are appropriate strategies for Quadrant II? 5marks