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Zubair Hussain, Aniqa Malik, Eemaan Khan

&

Mehreen Humayun

 

Time: 120 min

                                                                                                                    M - 69

MGT603 Strategic Management - Question No: 1    ( M - 1 )   

Concentric Diversification involves heading towards which of the following?

 

       ► Adding new, but related, products or services

       ► Adding new, unrelated products or services

       ► Regrouping through cost and asset reduction

       ► Adding unrelated products or services for new customers

Concentric Diversification: Adding new, but related, products or services.

 

MGT603 Strategic Management - Question No: 2    ( M - 1 )   

Which of the following is often considered the first step in strategic planning?

 

       ► Devising a mission statement

       ► Developing a vision statement

       ► Setting annual objectives

       ► Formulating set of strategies

Developing a vision statement is often considered the first step in strategic planning.

 

MGT603 Strategic Management - Question No: 3    ( M - 1 )   

Which of the following can be considered as a factor of internal strengths and weaknesses of an organization?

 

       ► Technological changes

       ► Production/operations

       ► Demographics

       ► Competitive trends

   

MGT603 Strategic Management - Question No: 4    ( M - 1 )   

Long-term objectives includes all of the following EXCEPT:

 

       ► Measurable

       ► Reasonable

       ► Varying

       ► Consistent

The Nature of Long-Term Objectives: Objectives should be quantitative, measurable, realistic, understandable, challenging, hierarchical, obtainable, and congruent among organizational units.

   

MGT603 Strategic Management - Question No: 5    ( M - 1 )   

All of the following statements are true about a firm’s mission statement EXCEPT:

 

       ► A mission statement directly contributes positively to financial performance

       ► A mission statement does not directly contribute positively to financial performance

       ► A mission statement should not provide useful criteria for selecting among alternative strategies

       ► Primary reason to develop a mission statement is not to attract the customers

A business mission should provide useful criteria for selecting among alternative strategies.

 

MGT603 Strategic Management - Question No: 6    ( M - 1 )   

According to ‘Peter Drucker’, what is the prime task of strategic management?

 

       ► To develop the vision of the business

       ► Effectively evaluate the strategies

       ► To think through the overall mission of a business

       ► Develop alternative set of strategies

Peter Drucker: Think through the overall mission of a business.

 

MGT603 Strategic Management - Question No: 7    ( M - 1 )   

“A complex set of basic underlying assumptions and deeply held beliefs shared by all members of the group and drive in important ways the behavior of individuals in the organizational context” is known as:

 

       ► Internal audit

        Organizational culture

       ► Internal assessment

      ► Organizational strategy

Organizational Culture - Organizational Culture is a complex set of basic underlying assumptions and deeply held beliefs shared by all members of the group that operate at a preconscious level and drive in important ways the behavior of individuals in the organizational context. 

 

MGT603 Strategic Management - Question No: 8    ( M - 1 )   

Which of these is the allocation and reallocation of capital and resources to projects, products, assets and divisions of an organization? 

 

       ► Investment decision

       ► Financing decisions

       ► Restructuring decisions

       ► Strategic decision

The investment decision, also called capital budgeting, is the allocation and reallocation of capital and resources to projects, products, assets, and divisions of an organization. 

 

MGT603 Strategic Management - Question No: 9    ( M - 1 )   

 Amir, a sole proprietor, uses the information system to ask the MGT603 Strategic Management - Question; “What if the prices will decrease by 16% in the next year?” Which of the following functions the information system is performing for Amir?

 

 ► Functional support role

 ► Decisional support role

 ► Managerial support role

 ► Analytical supporting role

The business decision-making support function goes one step further. It becomes an integral part -- even a vital part -- of decision -making. It allows users to ask very powerful "What if…?" MGT603 Strategic Management - Questions: What if we increase the price by 5%? What if we increase price by 10%?

 

MGT603 Strategic Management - Question No: 10    ( M - 1 )   

Which of the following is sometimes referred as “the mystery approach to decision making, when subordinates are left to figure out what is happening and why”?

 

       ► Managing by hope

       ► Managing by extrapolation

       ► Managing by crisis

       ► Managing by subjectives

 Managing by Subjective: Referred to as the mystery approach to decision making because subordinates are left to figure out what is happening and why.

 

MGT603 Strategic Management - Question No: 11    ( M - 1 )     

The purpose of an external audit is to prepare a list of which of the following?   

    

► Opportunities and weaknesses       

► Threats and strengths

   Opportunities and threats

   ► Strengths and weaknesses

 

MGT603 Strategic Management - Question No: 12    ( M - 1 )   

Defensive strategies include all of the following EXCEPT:

 

       ► Retrenchment

       ►  Acquisition

       ►  Divestiture

       ► Liquidation

Defensive Strategies: In addition to integrative, intensive, and diversification strategies, organizations also could pursue retrenchment, divestiture, or liquidation.

 

MGT603 Strategic Management - Question No: 13    ( M - 1 )   

  Smoothies Tire & Rubber Co. is selling its North American tire business to Avinza International, is an example of which type of strategy?

 

       ► Related diversification

       ► Retrenchment

        Divestiture

       ► Liquidation

Selling a division or part of an organization is called divestiture. 

MGT603 Strategic Management - Question No: 14    ( M - 1 )   

Which stage of the “Strategy Formulation Framework” includes an External Factor Evaluation Matrix and a Competitive Profile Matrix?

 

       ► Matching

       ► Decision

       ►  Input

       ► All of the given options

Formulation framework consists of the EFE Matrix, the IFE Matrix, and the Competitive Profile Matrix. Called the Input Stage.

 

MGT603 Strategic Management - Question No: 15    ( M - 1 )   

Which one of the followings is a sign of strength in a company's competitive position?

 

       ► A website with extensive information about the company and its product line

       ► Annual R&D and advertising expenditures greater than Rs.10 million

       ► A strongly differentiated product, a strong or rising market share

      ► A debt-to-asset ratio below 0.50 and a positive net cash flow and higher EPS

Sign of strength in a company’s competitive position: A strongly differentiated product, a strong or rising market share and important resources or capabilities.

 

MGT603 Strategic Management - Question No: 16    ( M - 1 )   

Firm with its SPACE matrix vector in conservative quadrant should peruse all of the following strategies EXCEPT:

 

       ► Market penetration

       ► Product development

       ► Market development

       ► Divestiture

Quadrant II

Market development

Market penetration

Product development

Horizontal integration

 Liquidation 

 

MGT603 Strategic Management - Question No: 17    ( M - 1 )   

 All of the following would be considered while judging the financial strength of an organization EXCEPT:

 

       ► Increase in revenues

       ► Market share

       ► Return on Investment

       ► Cash flow statement

Financial Strength (FS):

  • Risk involved in business
  • Debt to equity ratio
  • Working capital condition
  • Leverage
  • Liquidity
  • Ease of exit from market
  • Cash flow statement
  • Return on investment

Market share is a Competitive Advantage (CA).

 

MGT603 Strategic Management - Question No: 18    ( M - 1 )   

What type of strategies would you recommend when a firm’s SPACE Matrix directional vector has the coordinates (-4, -4)?

 

       ► Aggressive

       ► Conservative

       ► Competitive

       ► Defensive

 

MGT603 Strategic Management - Question No: 19    ( M - 1 )   

 All of the following are the limitations of BCG Matrix EXCEPT:

 

       ► It is one-dimensional to view every business as a star, cash cow, dog or MGT603 Strategic Management - Question mark

       ► BCG can not be developed if a firm has at least less than three years data

       ► The businesses that fall in the centre of BCG matrix can not be classified

       ► Other variables such as size of market and competitive advantages are not considered

Limitations of BCG Matrix:

 1. Viewing every business as a star, cash cow, dog, or MGT603 Strategic Management - Question mark is overly simplistic.

2. Many businesses fall right in the middle of the BCG matrix and thus are not easily classified.

3. The BCG matrix does not reflect whether or not various divisions or their industries are growing over time.

4. Other variables besides relative market share position and industry growth rate in sales are important in making strategic decisions about various divisions.

 

MGT603 Strategic Management - Question No: 20    ( M - 1 )   

 Which one of the following is NOT a major region of IE matrix?

       

       ► Grow and build

       ► Grow and maintain

       ► Hold and maintain

       ► Harvest or divest

IE Matrix divided into three major regions:

Grow and build – Cells I, II, or IV

Hold and maintain – Cells III, V, or VII

Harvest or divest – Cells VI, VIII, or IX

 

MGT603 Strategic Management - Question No: 21    ( M - 1 )   

  Which of the following strategy should be perused first by the Irtiza Insurance Company as it is located in Quadrant III of the Grand Strategy Matrix?

 

       ► Diversification

       ► Liquidation

       ► Retrenchment

       ► Divestiture

Quadrant III

  • Retrenchment
  • Concentric diversification
  • Horizontal diversification
  • Conglomerate diversification
  • Liquidation
  • www.vuzs.net

MGT603 Strategic Management - Question No: 22    ( M - 1 )   

  According to the Grand Strategy Matrix, in which quadrant organizations have a strong competitive position but are in a slow-growth industry?

 

       ► I

       ► II

       ► III

       ► IV

Qurdant-4 contains that company’s strong competitive situation and slow market growth.

 

 MGT603 Strategic Management - Question No: 23    ( M - 1 )   

 Which of the following is TRUE about weights assigned in QSPM?

 

       ► This refers to preference assigned to the internal and external factors

       ► This refers to relative importance of the internal and external factors

       ► This refers to the insignificance of the internal and external factors

       ► This refers to the relative size of the internal and external factors

The weight assigned to a given factor indicates the relative importance of the factor to being successful in the firm's industry.

 

MGT603 Strategic Management - Question No: 24    ( M - 1 )   

  Which of the following is a Functional level objective?

 

       ► Achieving return on investment of at least 15%

       ► Aiming to achieve a market share of 10%

       ► Attaining operating profit of over Rs.10 million

       ► Increase earnings per share by at least 10% every

Examples of functional marketing objectives” might include: We aim to achieve a market share of 10%. 

 

MGT603 Strategic Management - Question No: 25    ( M - 1 )   

  All of the following are the examples of promotion decision EXCEPT:

 

       ► Personal selling

       ► Volume discounts

       ► Public relations

       ► Advertising

Marketing communication decisions include:

• Promotional strategy (push, pull, etc.)

• Advertising

• Personal selling & sales force

• Sales promotions

• Public relations & publicity

• Marketing communications budget 

 

MGT603 Strategic Management - Question No: 26    ( M - 1 )   

 Which alternative becomes more attractive financing technique when cost of capital is high?

 

       ►Debt Financing

       ► Combination financing

       ► Raising equity

       ► Borrowing

 

MGT603 Strategic Management - Question No: 27    ( M - 1 )     

 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

There are six steps in performing pro forma financial analysis:

1. Prepare income statement before balance sheet (forecast sales)

 

MGT603 Strategic Management - Question No: 28    ( M - 1 )   

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

Pro forma (projected) financial statement analysis is a central strategy-implementation technique because it allows an organization to examine the expected results of various actions and approaches.

 

MGT603 Strategic Management - Question No: 29    ( M - 1 )   

In preparing projected statements, to project cost of goods sold and the expense items in the income statement, which of the following is recommended?

 

       ► Use the net worth method

       ► EPS/EBIT analysis

       ► Use percentage-of-sales method

       ► Use price-earnings ratio method

Pro forma financial analysis: Use percentage-of-sales method to project Cost of Goods Sold and selling & administrative expenses.

 

MGT603 Strategic Management - Question No: 30    ( M - 1 )     

 Integrative, intensive, and diversification strategies are often implemented by which one of the followings?

 

       ► Liquidating firms

       ► Acquiring firms

       ► Venturing firms

       ► Small firms

Evaluating the worth of a business is central to strategy implementation because Integrative, intensive, and diversification strategies are often implemented by acquiring other firms.

 

MGT603 Strategic Management - Question No: 31    ( M - 1 )   

At least how many approaches are used for the implementation of strategy?

 

       ► Two

       ► Three

       ► Four

        Five

There are at least three major R&D approaches for implementing strategies.

1. First firm to market new technological products

2. Be an innovative imitator of successful products

3. Low-cost producer of similar but less expensive products

 

MGT603 Strategic Management - Question No: 32    ( M - 1 )   

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?

 

       ► Consistency

       ► Consonance

       ► Feasibility

       ► Advantage

Consistency: Strategy should not present inconsistent goals and policies. Conflict and interdepartmental bickering symptomatic of managerial disorder and strategic inconsistency.

 

MGT603 Strategic Management - Question No: 33    ( M - 1 )   

 While evaluating a strategy, corrective actions are almost always needed EXCEPT:

 

       ► When external and internal factors have not significantly changed

       ► When the firm is not progressing satisfactorily toward objectives

       ► When the firm has not achieved the stated organizational goals

       ► When there are differences between desired results and achieved results

Corrective actions are almost always needed except when External and internal factors have not significantly changed and the firm is progressing satisfactorily toward achieving stated objectives. Comparing expected results with actual results. (vuzs)

 

 MGT603 Strategic Management - Question No: 34    ( M - 1 )     

 All of the following are the examples of service activity of Porter’s supply chain model EXCEPT:

 

       ► Customer support

       ► Packaging

       ► Repair services

       ► Installation

Service: The activities that maintain and enhance the product's value, including: customer support, repair services, installation, training, spare parts management, upgrading, etc.

 

MGT603 Strategic Management - Question No: 35    ( M - 1 )   

 All of the following are primary activities of Porter’s supply chain model EXCEPT:

 

       ► Marketing and Sales

       ► Outbound Logistics

       ► Firm Infrastructure

       ► Inbound Logistics

Firm Infrastructure is included in support activities.

 

MGT603 Strategic Management - Question No: 36    ( M - 1 )   

Which of the following statement is TRUE about Inbound Logistics?

 

       ► It includes receiving, storing, inventory control & transportation planning

       ► It includes machining, packaging, assembly, equipment maintenance & testing

       ► It includes activities required to deliver the finished product to the customers' end

       ► It includes the activities that maintain and enhance the product's value

Inbound Logistics. Includes receiving, storing, inventory control, transportation planning. 

 

MGT603 Strategic Management - Question No: 37    ( M - 1 )   

  A revised EFE Matrix should focus on which of the following?

 

       ► Changes in the organization's management, marketing R & D, computer information system and environment.

       ► Marketing, finance/accounting, production/operations, R&D and computer information systems strengths and weaknesses.

       ► Effectiveness of a firm's strategies in response to key opportunities and threats.

       ► Effectiveness of an organization’s strategy in pursuing the competitive goals and managerial actions.

A revised EFE Matrix should indicate how effective a firm's strategies have been in response to key opportunities and threats.

 

MGT603 Strategic Management - Question No: 38    ( M - 1 )   

 The product design, packaging, product disposal and corporate rewards should reflect which of the following?

 

       ► Product quality consideration

       ► Union consideration

       ► Environmental consideration

       ► Customer consideration

Product design, manufacturing, transportation, customer use, packaging, product disposal, and corporate rewards and sanctions should reflect environmental considerations.

 

MGT603 Strategic Management - Question No: 39    ( M - 1 )   

  Which of the following is TRUE about Vision statement of a company?

 

       ► It defines the customers

       ► It concentrates on future

       ► It identifies critical processes

       ► It informs about the desired level of performance

Many organizations today develop a "vision statement" which answers the MGT603 Strategic Management - Question, what do we want to become?

 

MGT603 Strategic Management - Question No: 40    ( M - 1 )   

  Alternative strategy is decided in decision stage of Strategy-Formulation Framework. Which matrix is used in this stage to serve this purpose?

 

       ► BCG Matrix

       ► SPACE Matrix

       ► IE Matrix

       ► QSPM Matrix

The Quantitative Strategic Planning Matrix (QSPM):  Decision stage: In this stage it is decided that which way is most appropriate or which alternative strategy should be select. This stage contains QSPM that is only tool for objective evaluation of alternative strategies.

 

MGT603 Strategic Management - Question No: 41    ( M - 1 )   

Input stage of strategy formulation framework includes developing which of the following set of matrices?

 

       ► IFE, EFE and QSPM matrix

       ► IFE, IE and BCG matrix

       ► IFE, CPM and EFE matrix

       ► EFE, IE and CPM matrix

Input Stage: Stage 1 of the formulation framework consists of the EFE Matrix, the IFE Matrix, and the Competitive Profile Matrix.

 

MGT603 Strategic Management - Question No: 42    ( M - 1 )   

  Identify a case when a firm should adopt aggressive strategies.

 

        If a firm’s directional vector is located in upper-right quadrant of a SPACE matrix

       ► If a firm’s directional vector is located in upper-left quadrant of a SPACE matrix

       ► If a firm’s directional vector is located in lower-right quadrant of a SPACE matrix

       ► If a firm’s directional vector is located in lower-left quadrant of a SPACE matrix

 

 

MGT603 Strategic Management - Question No: 43    ( M - 1 )   

Firms located in which quadrant of the Grand Strategy Matrix are in an excellent strategic position?

 

       ► I

       ► II

       ► III

       ► IV

Firms located in Quadrant I of the Grand Strategy Matrix are in an excellent strategic position.

 

MGT603 Strategic Management - Question No: 44    ( M - 1 )   

Which of the following is the best divisional structure when a few major customers are of paramount importance and many different services are provided to these customers?

 

       ► By geographic area

       ► By customer

       ► By product

       ► By process

When a few major customers are of paramount importance and many different services are provided to these customers, then a divisional structure by customer can be the most effective way to implement strategies.

 

 

MGT603 Strategic Management - Question No: 45    ( M - 1 )   

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

The ESOP empowers employees to work as owners of those companies.

 

MGT603 Strategic Management - Question No: 46    ( M - 1 )   

 Which of these is not a correct step in product positioning?

 

       ► Select key criteria that effectively differentiate products or services in the industry

       ► Position your firm in the middle of the map

       ► Plot major competitors’ products or services in the resultant matrix

       ► Identify areas in the positioning map where the company’s products or services could be most competitive in the given target market.

The following steps are required in product positioning:

1. Select key criteria that effectively differentiate products or services in the industry.

2. Diagram a two-dimensional product-positioning map with specified criteria on each axis.

3. Plot major competitors' products or services in the resultant four-quadrant matrix.

4. Identify areas in the positioning map where the company's products or services could be most competitive in the given target market. Look for vacant areas (niches).

5. Develop a marketing plan to position the company's products or services appropriately.   

 

MGT603 Strategic Management - Question No: 47    ( M - 1 )   

  Some potential problems associated with using quantitative criteria for evaluating strategies include all of the following EXCEPT:

 

       ► Most quantitative criteria are geared to annual objectives rather than long-term objectives

       ► These ratios use qualitative data for evaluating strategies which often is not available

       ► Different accounting methods can provide different results on many quantitative criteria

       ► Intuitive judgments are almost always involved in deriving quantitative criteria

Rationale: Ratios always use quantitative data for evaluation which is often not available.

There are some potential problems associated with using quantitative criteria for evaluating strategies. 

First, most quantitative criteria are geared to annual objectives rather than long-term objectives.

Also, different accounting methods can provide different results on many quantitative criteria.

Third, intuitive judgments are almost always involved in deriving quantitative criteria. 

 

MGT603 Strategic Management - Question No: 48    ( M - 1 )   

  Which of the following is MOST appropriate about financial ratios?

 

       ► Compare a firm’s performance with competitors

       ► Compare a firm’s performance with suppliers

       ► Compare  a firm’s performance with non-financial ratios

       ► Compare  a firm’s performance with business standards

Quantitative criteria commonly used to evaluate strategies are financial ratios, which strategists use to make three critical comparisons:

(1) comparing the firm's performance over different time periods,

(2) comparing the firm's performance to competitors', and

(3) comparing the firm's performance to industry averages.

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Replies to This Discussion

by Zafar Rehman

Solved by vuZs Team  Simple Look

References & checked by Zubair Hussain & Mehreen Humayun


Strategic Management - MGT603 - Q.No. 1 ( M - 1 ) .

Various job titles of a strategist may include all of the following EXCEPT:

► Owner

► Foreman

► Chancellor

► Chief executive officer

Strategists have various job titles, such as chief executive officer, president, and owner, chair of the board, executive director, chancellor, dean, or entrepreneur.

 

Strategic Management - MGT603 - Q.No. 2 ( M - 1 ) .

Long-term objectives includes all of the following EXCEPT:

► Measurable

► Reasonable

► Varying

► Consistent 

The Nature of Long-Term Objectives: Objectives should be quantitative, measurable, realistic, understandable, challenging, hierarchical, obtainable, and congruent among organizational units. 

 

 

Strategic Management - MGT603 - Q.No. 3 ( M - 1 ) .

All of these are pitfalls of an organization in strategic planning EXCEPT:

► Failing to involve key employees in all phases of planning

► Using strategic planning to gain control over decisions and resources

► Using plans as a standard for measuring performance

► Being so formal in planning that flexibility and creativity are stifled

 

Strategic Management - MGT603 - Q.No. 4 ( M - 1 ) .

The organizations that conduct business operations across national borders are known as:

 

► Multinational corporations

► Domestic firms

► Strategic alliances

► Franchises

A multinational corporation (MNC) or enterprise (MNE), is a corporation or an enterprise that manages production or delivers services in more than one country.

 

Strategic Management - MGT603 - Q.No. 5 ( M - 1 ) .

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

 

Strategic Management - MGT603 - Q.No. 6 ( M - 1 ) .

Which component of a mission statement addresses the basic beliefs, values, aspirations, and ethical priorities of the firm?

► Technology

► Philosophy

► Customers

► Self-concept

Philosophy: What are the basic beliefs, values, aspirations, and ethical priorities of the firm?

 

Strategic Management - MGT603 - Q.No. 7 ( M - 1 ) .

“Identifying and evaluating social, political, economic, technological and competitive trends and events”; which of the followings best describes this statement?

► Developing an effective mission statement

► Conducting an internal audit

► Performing an external audit

► Formulating strategy

External forces can be divided into five broad categories:

  • Economic forces;
  • Social, cultural, demographic, and environmental forces;
  • Political, governmental, and legal forces;
  • Technological forces; and
  • Competitive forces.
  • www.vuzs.net

Strategic Management - MGT603 - Q.No. 8 ( M - 1 ) . vuzs.net

Suppose, the value of the currency of a certain country falls, what can be the effect on companies in Different Industries and in Different Locations in that country respectively?

► Significant and equal

► Marginal and equal

► Significant and unequal

► Insignificant and unequal

Reference by Zia Rasool

If the value of the currency falls for a certain country, it will have over all 
a significant effect. But it is not necessary that this effect will be 
treated equally at the different industries and location of that country.

 

Strategic Management - MGT603 - Q.No. 9 ( M - 1 ) .

What will happen to the Pakistani exports in overseas markets when there is a strong value of rupee?

► Pakistani exports will be less expensive

► Pakistani exports will be more expensive

► Pakistani exports will be more attractive

► Pakistani exports will be desirable

 

Strategic Management - MGT603 - Q.No. 10 ( M - 1 ) .

Use of the Internet and Internet technologies can be integrated into the sales of on-line as well as off-line business and marketing portion of the value chain through which of the following?

► Through software that permits customers to specify build-to-order options

► Through online product catalogs containing rich product information and specifications

► Via online price quotes and online announcements of special sales and promotions

► All of the given options

 

Strategic Management - MGT603 - Q.No. 11 ( M - 1 ) .

Assigning rating '2' to an internal factor in IFE matrix indicates what?

► Major weakness

► Minor weakness

► Minor strength

► Major strength

Assign a 1-to-4 rating to each factor to indicate whether that factor represents a major weakness (rating = 1), a minor weakness (rating = 2).

 

Strategic Management - MGT603 - Q.No. 12 ( M - 1 ) .

As managers move up the organization, they perform which of the management function more?

 Leading

► Controlling

► Organizing

► Planning

In functional terms, as manager’s move up the organization, they do more planning and less direct supervising.

 

Strategic Management - MGT603 - Q.No. 13 ( M - 1 ) .

Sana has spent a day in a session where the future of her company was discussed. The people involved were trying to determine what the role of their company was as the 21st century approaches. Goals were then developed based upon their vision of the company's mission. Sana spent her day on which of the following process?

► Planning

► Organizing

► Leading

► Controlling

 

Strategic Management - MGT603 - Q.No. 14 ( M - 1 ) .

One of the top level manager of a large manufacturing plant uses to spend her day trying to ensure that the material wastage is not more than 10%. She spends her day in performing which of the following management functions?

► Planning

► Organizing

► Leading

► Controlling

 

Strategic Management - MGT603 - Q.No. 15 ( M - 1 ) .

Which of the following allows an organization to test alternative marketing plans and to forecast future sales of new products?

► Marketing

► Advertisement

► Test marketing

► Customer analysis

Test markets allow an organization to test alternative marketing plans and to forecast future sales of new products

 

 

Strategic Management - MGT603 - Q.No. 16 ( M - 1 ) .

Which of the following has/have been successful in determining R&D budget allocations?

► Financing as many project proposals as possible

► Budgeting for R&D about what competitors spend

► Deciding how many successful new products are needed

► All of the given options

 

Strategic Management - MGT603 - Q.No. 17 ( M - 1 ) .

Which of the following is a drawback or limitation of Horizontal Integration?

 

► Synergies may be more imaginary than real

► It can increase suppliers' and buyers' bargaining power

► Economies of scale are likely to be decreased

► Both the first & third options are correct

Disadvantage of Horizontal integration:

  • Synergies maybe more imaginary than real
  • Substitutes market is often very different. Challenge occurs to management during acquisition.
  • Reduction in competition may lead to anti-trust

 

Strategic Management - MGT603 - Q.No. 18 ( M - 1 ) .

In which situation would horizontal integration be an especially effective strategy?

► When an organization can gain monopolistic characteristics without ...

► When decreased economies of scale provide major competitive advantages

► When an organization has neither the capital nor human talent needed to successfully manage an expanded organization

► When competitors are succeeding due to managerial expertise or having particular resources 

 

 

Strategic Management - MGT603 - Q.No. 19 ( M - 1 ) .

Defensive strategies include all of the following EXCEPT:

► Retrenchment

► Acquisition

► Divestiture

► Liquidation

Defensive Strategies: In addition to integrative, intensive, and diversification strategies, organizations also could pursue retrenchment, divestiture, or liquidation.

 

Strategic Management - MGT603 - Q.No. 20 ( M - 1 ) .

Which strategy should be implemented when a division is responsible for an organization’s overall poor performance?

► Divestiture

► Forward integration

► Cost leadership

► Related diversification

 

Strategic Management - MGT603 - Q.No. 21 ( M - 1 ) .

Which of the following is NOT the reason to go for divestiture?

► When firm has pursued retrenchment but failed to attain needed improvements 

► When the availability of quality distributors is too limited

► When a division needs more resources than the firm can provide

 When a division is responsible for the firm’s overall poor performance

Five guidelines when divestiture may be an especially effective strategy to pursue are listed below:

  • When firm has pursued retrenchment but failed to attain needed improvements
  • When a division needs more resources than the firm can provide
  • When a division is responsible for the firm’s overall poor performance
  • When a division is a misfit with the organization
  • When a large amount of cash is needed and cannot be obtained from other sources.

 

Strategic Management - MGT603 - Q.No. 22 ( M - 1 ) .

A joining of two companies through one company buying more than one half of the other company's stocks is known as:

► Monopolization

► A spin-off

► An acquisition

►A Merger

Merger: A joining of two companies through one company buying more than one half of the other company's stocks.

 

 

Strategic Management - MGT603 - Q.No. 23 ( M - 1 ) .

Which of the following statements is TRUE about company’s strategies?

► Company strategies concern how to grow the business, how to out-compete rivals, how to satisfy customers

► Company strategies concern when to change the company's strategic vision and business model

► Company strategies concern whether to focus on achieving short-run performance targets or on long-range

► Company strategies concern performance targets and how much organizational stretch to build in

 

Strategic Management - MGT603 - Q.No. 24 ( M - 1 ) .

Which of the following is a key merit of strategic management?

► Strategic management enables an organization to be proactive

► Strategic management enables an organization to avoid the threats

► Strategic management enables an organization to defeat their competitors

Strategic management enables an organization to foresee into the future

Following are the major benefits of Strategic management:

  • Proactive in shaping firm’s future
  • Initiate and influence actions
  • Formulate better strategies

 

Strategic Management - MGT603 - Q.No. 25 ( M - 1 ) .

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

 

 

Strategic Management - MGT603 - Q.No. 26 ( M - 1 ) .

Which of the following is NOT a key question that can reveal internal strengths and weaknesses of the marketing department?

► Does the firm have effective sales?

► Are markets segmented effectively?

► Are the firm’s products and services priced appropriately?

► Does the firm have good liquidity?

 

Strategic Management - MGT603 - Q.No. 27 ( M - 1 ) .

The corporate social policy should be reaffirmed or changed during which phase of strategic management?

► Strategy control

► Strategy implementation

► Strategy formulation

 Strategy evaluation

Corporate social policy should be designed and articulated during strategy formulation, set and administered during strategy implementation, and reaffirmed or changed during strategy evaluation.

 

Strategic Management - MGT603 - Q.No. 28 ( M - 1 ) .

All of the following are the circumstances when forward integration strategies are beneficial to be practiced EXCEPT:

 Availability of quality distributors is limited

► Existing markets for present products are saturated

► Advantages of stable production are high

► Present distributors have high profit margins

Six guidelines when forward integration may be an especially effective strategy are:

  • Present distributors are expensive, unreliable, or incapable of meeting firm’s needs.
  • Availability of quality distributors is limited.
  • When firm competes in an industry that is expected to grow markedly.
  • Organization has both capital and human resources needed to manage new business of distribution.
  • Advantages of stable production are high.
  • Present distributors have high profit margins.

 

Strategic Management - MGT603 - Q.No. 29 ( M - 3 )

What is the significance of Research and Development for an organization?

 

Answer:

 

Research and Development

The fifth major area of internal operations that should be examined for specific strengths and weaknesses is research and development (R&D). Many firms today conduct no R&D, and yet many other companies depend on successful R&D activities for survival. Firms pursuing a product development strategy especially need to have a strong R&D orientation.

The purpose of research and development are as follows:

  • Development of new products before competition
  • Improving product quality
  • Improving manufacturing processes to reduce costs

 

Strategic Management - MGT603 - Q.No. 30 ( M - 3 )

What should be the characteristics of a firm that is successfully pursuing a Cost Leadership Strategy? Enlist any six of them.

 

Answer:

 

A successful cost leadership strategy usually permeates the entire firm, as evidenced by high efficiency, low overhead, limited perks, intolerance of waste, intensive screening of budget requests, wide spans of control, rewards linked to cost containment, and broad employee participation in cost control efforts.

Some risks of pursuing cost leadership are that competitors may imitate the strategy, thus driving overall industry profits down; technological breakthroughs in the industry may make the strategy ineffective; or buyer interest may swing to other differentiating features besides price. Several example firms that are well known for their low-cost leadership strategies are Wal-Mart, BIC, McDonald's, Black and Decker, Lincoln Electric, and Briggs and Stratton.

 

Strategic Management - MGT603 - Q.No. 31 ( M - 5 )

What are the five forces of Porter’s Five Forces Model?

 

Strategic Management - MGT603 - Q.No. 32 ( M - 5 )

Explain Merger and Acquisition with the help of examples (examples should be related to a multinational or local company operating in Pakistan)? 

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