Multiple Choice Questions (MCQ) on
Strategic Management
Multiple Choice Questions (MCQ) on Strategic Management
1. Horizontal integration is concerned with
(A) Production
(B) Quality
(C) Product planning
(D) All of the above
2. It refers to formal and informal rules, regulations and procedures that complement
the company structure
(A) Strategy
(B) Systems
(C) Environment
(D) All of the above
3. Micro environment is the ………. environment of a company.
(A) Working
(B) Human
(C) External
(D) Internal
4. Techniques used in environmental appraisal are
(A) single-variable extrapolation/multivariable interaction analysis
(B) Structured/ unstructured expert/inexpert opinion
(C) Dynamic modes and mapping
(D) All of the above
5. Match The Following
Question Your Answer
a. Ballast business 1. Give the highest priority
b. Gap analysis 2. Difference between desired and projected performance
c. Corporate parenting 3. Managing SBU’s by a corporate
d. Heartland business 4. Fit well but low opportunities
The correct answer is
(A) a-1, b-3, c-2, d-4
(B) a-2, b-1, c-4, d-3
(C) a-4, b-2, c-3, d-1
(D) a-2, b-3, c-4, d-1
6. It enables the strategists to take corrective action at the right time
(A) Implementation control
(B) Special alert control
(C) Strategic Surveillance control
(D) Premise control
7. Like roots of a tree, ________of organization is hidden from direct view.
(A) Performance
(B) Strategy
(C) Core competence
(D) All of the above
8. Changes in company ………. also necessitates changes in the systems in various
degrees
(A) structure
(B) system
(C) strategy
(D) turnover
9. The actual performance deviates positively over the budgeted performance. This is
an indication of ……….. performance.
(A) superior
(B) inferior
(C) constant
(D) any of the above
10. Criteria for making an evaluation is (are)
(A) Consistency with goals
(B) Consistency with environment
(C) Money
(D) All of the above
11. The ………. of any organization is “the aggregate of all conditions, events and
influences that surround and affect it.”
(A) system
(B) environment
(C) structure
(D) strategy
12. Strategic management is mainly the responsibility of
(A) Lower management
(B) Middle management
(C) Top management
(D) All of the above
13. The major issue(s) of appraisal system is (are)
(A) Factors of appraisal
(B) Relevance of appraisal
(C) Procedure of appraisal
(D) All of the above
14. They have time based utility
(A) Goals
(B) Resources
(C) both ‘A’ and ‘B’
(D) None of the above
15. Formal systems are adopted to bring ________ & amalgamation of decentralized
units into product groups.
(A) Manpower
(B) Co-ordination
(C) Production
(D) All of the above
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 company’s ………. gives rise to problems necessitating a new ……… to
be made
(A) structure, strategy
(B) strategy, structure
(C) structure, structure
(D) strategy, strategy
17. Systems are formal and informal rules and regulations that complement the
company ………..
(A) strategy
(B) structure
(C) system
(D) environment
18. The reasons for acquisition are
(A) Increased market power
(B) Increased diversification
(C) Increased speed to market
(D) All of the above
19. Market research is conducted by
(A) By employees
(B) By research agencies
(C) By consultants
(D) all of the above
20. Vertical integration is concerned with
(A) supply chain
(B) production
(C) Quality
(D) planning
21. ________cost accounting measures the cost of producing and ignores the cost of
non-producing
(A) Lean
(B) Traditional
(C) Environmental
(D) Throughput
22. Match the following
Question Correct Answer
a. Retrenchment Strategies 1. Retrenchments – either internally or externally
2. Contraction of activities through elimination of the
b. Divestment Strategies
scope of one or more of its business
3. Involves the sale or liquidation of a portion of a
c. Turnaround Strategies
business
(A) a-1, b-2, c-3
(B) a-3, b-2, c-1
(C) a-2, b-3, c-1
(D) a-3, b-1, c-2
23. ETOP stands for ________.
(A) environmental threat & opportunity project
(B) environmental threat & opportunity profile
(C) environmental treaty & opportunity profile
(D) environmental threat & optimum profile
24. The control process requires the following types of information
(A) Planned performance
(B) Variances
(C) Reasons
(D) All of the above
25. Financial environment is concerned with
(A) demand & supply of money
(B) capital markets
(C) both ‘A’ and ‘B’
(D) None of the above
26. The process of forecasting an organization’s future demands for and supply of right
type of people in right number is
(A) Product planning
(B) Process planning
(C) Man power planning
(D) All of the above
27. It is designed to monitor a broad range of events inside and outside the company
that are likely to threaten a firm’s strategy
(A) Strategic surveillance
(B) Strategic planning
(C) both ‘A’ and ‘B’
(D) None of the above
28. Harvest strategy is used for
(A) Dogs
(B) Question marks
(C) both ‘A’ and ‘B’
(D) none of the above
29. These are critical situations that occur unexpectedly and threaten the course of a
firm’s strategy
(A) Crisis
(B) Emergency
(C) Shutdown
(D) All of the above
30. Attack strategies are
(A) frontal attack
(B) flank attack
(C) encirclement attack
(D) all of the above
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)
31. An approach that strives to follow ethical principles and percepts is
(A) Moral management
(B) Immoral management
(C) Amoral management
(D) None of the above
32. Niche marketing means
(A) End user specialist
(B) Specific customer specialist
(C) Geographic specialist
(D) all of the above
33. Type(s) important managerial skill(s) required for the effective strategic
management
(A) Conceptual skill
(B) Human skill
(C) Intellectual skill
(D) all of the above
34. The model(s) of social responsibility is (are)
(A) Austere Model
(B) Vendors Model
(C) Civic Model
(D) all of the above
35. Delay in ________ measurement defeats the purpose of evaluation.
(A) Time
(B) Quality
(C) Production
(D) All of the above
36. Module of Flotilla strikes an optimum balance of ________ and flexibility
(A) Optimisation
(B) Standardisation
(C) Organization
(D) All of the above
37. The ________ are distinct little business set up as units in a larger company.
(A) Small business Units
(B) Strategic business Units
(C) Internal business Units
(D) All of the above
38. Knowledge of the relationships between choices, environment & outcomes is
(A) Familiarity
(B) Conversancy
(C) Informality
(D) Normality
39. ________ should have the ability to develop a vision to see patterns into the future.
(A) Leaders
(B) Managers
(C) Management
(D) Workers
40. Factors encouraging joint ventures are
(A) Uneconomical separate existence
(B) Risk of business gets shared
(C) Sharing competence of each other
(D) All of the above
41. ________ is the drive to achieve beyond one’s expectations.
(A) Motivation
(B) Training
(C) Development programme
(D) All of the above
42. The decisions which are applied to structured or routine problems are
(A) Semi-programmed decisions
(B) Un-programmed
(C) Programmed
(D) Any of the above
43. Strategic management deals with
(A) Production and quality
(B) Profit and loss
(C) Business process
(D) All of the above
44. Benchmarking is
(A) Historical analysis
(B) Competitive analysis
(C) Re-engineering
(D) All of the above
45. GDP stands for
(A) Gross domestic product
(B) Gross domestic production
(C) Gross daily production
(D) Gross domestic process
Answers:
31-(), 32-(), 33-(D), 34-(D), 35-(A), 36-(B), 37-(B), 38-(A), 39-(A), 40-(D), 41-(A), 42-(C), 43-
(C), 44-(B), 45-(A)
46. Macro environment
(A) Political- legal
(B) socio-cultural
(C) economic-demographic
(D) All of the above
47. Factor(s) determining HRP (Human Resource Planning)
(A) Type & Strategy of organisation
(B) Environmental uncertainties
(C) Type & quality of information
(D) All of the above
48. A major part of strategy implementation is
(A) Planning
(B) Communication
(C) Resource allocation
(D) Monitoring
49. These people are charged with the responsibility of continuous screening of
performance?
(A) Managers
(B) Supervisors
(C) Top management
(D) Audit committee
50. ________ and greater accountability replace formal control.
(A) Self-discipline
(B) Self appraisal
(C) both ‘A’ and ‘B’
(D) None of the above
51. ………….. function applies to all company levels irrespective of levels of hierarchy.
(A) Planning
(B) Organizing
(C) Staffing
(D) Directing
52. Three C’s affecting today’s companies are
(A) Customer, Competition, Change
(B) Cost, Competition, Change
(C) Customer, Competition, Cost
(D) Customer, Cost, Change
53. Strategic management is concerned with
(A) Short range planning
(B) Long range planning
(C) Both ‘A’ and ‘B’
(D) None of the above
54. It provides a way to bring in the people dimension in macro company analysis
without using psychological models of human behaviour.
(A) Environment
(B) Society
(C) Culture
(D) All of the above
55. It is used extensively in organisation and is concerned with action or performance.
(A) Operational control
(B) Production control
(C) Quality control
(D) All of the above
56. Companies employ trained ________ to develop “competency models” to identify
potential leaders.
(A) Consultants
(B) Psychologists
(C) Trainers
(D) All of the above
57. Style of a company are the patterns of actions taken by members of …. management
over a period of time
(A) Top
(B) Middle
(C) Lower
(D) Any of the above
58. It concentrates on organisation design and work flow
(A) Systems approach
(B) Flotilla
(C) Method study
(D) Work study
59. The benefits of a change in process are defined in terms of _______ cost savings
(A) Labour
(B) Infrastructure
(C) Production
(D) Raw material
60. Core ideology
(A) Core values
(B) Core purpose
(C) both ‘A’ and ‘B’
(D) None of the above
Answers:
46-(D), 47-(D), 48-(C), 49-(D), 50-(A), 51-(C), 52-(A), 53-(B), 54-(C), 55-(A), 56-(B), 57-(A),
58-(B), 59-(A), 60-(C)
