FBA411 TEST COMPILATION (check the last page for other question bank incase they

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1. A firm choosing to provide unique product offerings in the industry is adopting a

______________?
a. A cost leadership strategy
b. A market penetration strategy
c. A differentiation strategy
d. A focus strategy

2. Application of the strategic-management process is typically more formal in larger and

well-established organisations?
a. False
b. True

3. The environment of a business consist of_________?

a. Intrinsic and Extrinsic environments
b. Local and external environments
c. Local and international environments
d. Internal and external environments

4. Despite its great popularity in the 1980s, strategic planning by global corporate
enterprises is now a valuable though rare activity?
a. False
b. True

5. Identify the statement(s) that are/is true in the following?

a. All of the above
b. Policies guide the process of carrying out the activities of an organisation.
c. Policies are rules that guide the behavior of the entire staff of an organisation
d. Policies are guidelines that regulate decision making in an organization

6. PEST or PESTLE analysis deals with________________?

a. The political environment
b. The pestle ring environment
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 c. Macro environmental factors
d. Micro environmental factors

7. Which of the following statements is correct about SWOT analysis?

a. Opportunities and threats relate to the international environment of an
organisation
b. Strengths and weaknesses relate to the external environment of an organisation
c. Strengths and weaknesses relate to the internal environment of an
organisation
d. Opportunities and threats relate to the local environment of an organization

8. Which of the following statements about goals and objects is most appropriate?
a. Goals help to measure the level of organisational success
b. Objectives are specific statements about the aim.
c. Goals are specific statements about the aim
d. Objectives cannot be distinguished from goals

9. The strengths and weaknesses of an organization are determined relative to the strengths
and weaknesses of its competitors?
a. True
b. False

10. When a firm enjoys returns that is in excess of what it expects to earn from other
investments with a similar amount of risk, the firm is said to have ___________ ?
a. above-average returns
b. profitability
c. good performance
d. competitive advantage

11. Which of the following statement about organisational Rules is incorrect?

a. Rules specify action
b. All of the above
c. Rules proscribe action
d. Rules give room for very little discretion

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 12. Strategic fit is ____________?
a. Creating resources synergy
b. Creating a match between organisation's opportunities and threats
c. Matching persons and organizational weakness
d. Matching organisational capabilities and opportunities

13. IBM has been in business for over three decades, the company has grown based on using
an absolute measure of performance to measure its competitiveness?
a. False
b. True

14. According to Peter Drucker, without objectives, the efforts of the workforce will
be__________?
a. Synergistic
b. Optimal
c. Misdirected or wasted
d. Consistent in performance

15. One of the major ingredients for an organisation's long-term survival is

________________?
a. capital
b. value creation
c. high profitability
d. sustained performance

16. What can be defined as the art and science of formulating, implementing and evaluating
cross functional decisions that enable an organisation to achieve its objectives?
a. Strategic management
b. Strategy evaluation
c. Strategy implementation
d. Strategy formulation

17. Corporate Leaders use ______ to define, outline and achieve specific business goals?
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 a. Multi-level strategy
b. Corporate – level strategy
c. Functional – level strategy
d. Business-level strategy

18. The strategic-management process is becoming more widely used by ______?

a. non-profit institutions
b. governmental organisations
c. multinational enterprises
d. all of the above

19. The goal of strategic management is to ___________?

a. achieve and maintain competitive advantage.
b. achieve competitive advantage
c. maintain competitive advantage.
d. eliminate competitive advantage.

20. A company employs _______ strategy when it is planning on creating new products and
reaching new audiences?
a. Expansion strategy
b. Stability Strategy
c. Instability strategy
d. Retrenchment strategy

21. One of the following is not a type of corporate level strategy

a. Instability Strategy
b. Retrenchment Strategy
c. Expansion Strategy
d. Stability Strategy

22. One of the strategic choices explored by Amazon that has positioned it well in the e-
commerce industry globally is aiming to be the best?
a. False
b. True

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 23. The strategic-management process _______________?
a. occurs once a year
b. applies mostly to companies with sales greater than $100 million.
c. is a semi-annual process
d. is a continuous process

24. Which of the following statements is incorrect about the purpose of procedures?
a. Procedures provide sequence of action for activities
b. Procedures guide decision making
c. They help to prevent costly mistake by the workforce
d. Procedures help managers to guide activities without constant intervention.

25. A strategic business unit (SBU) describes an autonomous business entity?

a. Neither Truth or False
b. True
c. All of the above
d. False

26. The most effective strategic management is ritualistic, predictable, and formal.
a. False
[Link]

27. Which of the following statements is incorrect about the Mission Statement of an
organisation?
a. It states the purpose of the organisation's existence
b. It creates focus for the workforce
c. It states the desired position of an organisation
d. It defines the business of the organization against its values and stakeholders'
expectations

28. The Objectives set for employees of an organisation should be _____________?

a. Special, Measured, Achievable, Articulated and Time-Bound
b. Special, Measurable, Achievable, Realistic and Time-Bound
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 c. Specific, Measurable, Achievable, Realistic Time-Bound
d. Specific, Measurable, Assignable, Realistic and Time-Bound

29. All firms have a strategy, even if it is informal, unstructured, and sporadic?
a. False
b. True

30. An organisation choosing to offer her products at a lower price than her competitors is
adopting a _____________?
a. A market penetration strategy
b. A differentiation strategy
c. A cost leadership strategy
d. A focus strategy

31. Strategic management focuses on integrating functional areas to achieve organizational

success. Which of the following is NOT one of the functional areas that is the focus of
strategic management
a. Production and operations
b. Research and development
c. Finance and accounting
d. Organizational behaviour

32. A combination strategy is a hybrid of ________strategies

a. Retrenchment, stability and instability
b. Stability, instability and expansion
c. Stability, expansion and retrenchment
d. Expansion, retrenchment and instability

33. Optimising for tomorrow the trends of today is the purpose of strategic management.
a. False
b. True

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 34. An organisation carves out a distinct position in the market, attracts customers, and drives
sustainable growth by adopting _____________?
a. Corporate-level Strategy
b. Market-level Strategy
c. Business-level Strategy
d. Functional-level Strategy

35. An organisation should take a(n) ________ approach in its industry?

a. collegial rather than an adversarial
b. reactive rather than a proactive
c. proactive rather than a reactive
d. adversarial rather than a collegial

36. A corporate-level strategy is ___________?

a. A one-tiered company plan
b. A two-tiered company plan
c. A multi-tiered company plan
d. A three-tiered company plan

37. By occasionally monitoring external events, companies should be able to identify when
change is require
a. True
b. False

38. When a firm formulates and implements a strategy that leads to superior performance
relative to its competitors, it is said to have ____________?
a. core competencies
b. capabilities
c. competitive advantage
d. competitive parity

39. To gain ________ firms need to provide unique products and services?
a. governmental legitimacy
b. competitors

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 c. first position
d. a sustainable competitive advantage

40. An organisation's deliberate action to achieve competitive advantage within her specific
market segment is ____________?
a. Functional-level strategy
b. Corporate-level strategy
c. Market-level strategy
d. Business-level strategy

41. Strategic Management focuses on integrating functional areas to achieve organizational

success. Which of the following is not one of the functional areas that is the focus of
strategic management?
a. Finance and accounting
b. Research and development
c. Production and operations
d. Organizational behavior

42. All firms have strategy, even if it is informal, unstructured and sporadic?
a. True
b. False

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OTHER QUESTION BANK

1. [Link]
2. [Link]
3. [Link]
Management-is-To

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