Strategic Management- I (B.Com- III Group- B) MCQ
Module 1 - Introduction of Strategic
Management
A. Multiple Choice
Questions (MCQs) – 15
- Strategic management is primarily
concerned with:
a) Day-to-day operations
b) Long-term objectives and plans
c) Employee attendance
d) Routine task scheduling
Answer: b) Long-term objectives and plans - Which of the following is NOT a
level of strategy?
a) Corporate-level strategy
b) Business-level strategy
c) Functional-level strategy
d) Operational-level strategy
Answer: d) Operational-level strategy - Tactics differ from strategy in
that they are:
a) Long-term plans
b) Short-term actions
c) Focused on mission statements
d) Determined by corporate goals
Answer: b) Short-term actions - The first step in the strategic
management process is:
a) Strategy formulation
b) Strategy implementation
c) Setting objectives
d) Evaluation and control
Answer: c) Setting objectives - Which of the following is a benefit
of strategic management?
a) Helps in resource allocation
b) Guarantees profit
c) Eliminates risk
d) Reduces employee training needs
Answer: a) Helps in resource allocation - Strategic management process
involves all EXCEPT:
a) Environmental scanning
b) Strategy formulation
c) Day-to-day payroll management
d) Strategy evaluation
Answer: c) Day-to-day payroll management - TQM in strategic management
emphasizes:
a) Increasing short-term profits
b) Total quality in all processes
c) Reducing strategic planning
d) Limiting employee involvement
Answer: b) Total quality in all processes - Corporate-level strategy primarily
focuses on:
a) Overall organization direction
b) Daily employee tasks
c) Marketing campaigns only
d) Inventory management
Answer: a) Overall organization direction - Business-level strategy is mainly
concerned with:
a) How a business competes in a particular market
b) Financial accounting
c) Government regulations
d) Supplier selection only
Answer: a) How a business competes in a particular market - Functional-level strategy focuses
on:
a) Overall corporate mission
b) Departmental or operational efficiency
c) Market expansion only
d) Strategic alliances
Answer: b) Departmental or operational efficiency - Which of the following is a
component of strategic management?
a) Planning, Organizing, Controlling
b) Environmental scanning, Strategy formulation, Implementation, Evaluation
c) Recruitment, Training, Payroll
d) Marketing, Production, Accounting
Answer: b) Environmental scanning, Strategy formulation, Implementation, Evaluation - Strategic management ensures:
a) Long-term success of the organization
b) Daily task completion
c) Eliminating all competition
d) Ignoring environmental changes
Answer: a) Long-term success of the organization - The difference between strategic
management and tactics is that strategy is:
a) Short-term, specific
b) Long-term, broad
c) Focused on execution only
d) Not related to objectives
Answer: b) Long-term, broad - Strategic evaluation in the
management process involves:
a) Setting new objectives
b) Monitoring implementation and correcting deviations
c) Hiring new employees
d) Deciding salaries
Answer: b) Monitoring implementation and correcting deviations - A key benefit of TQM in strategic
management is:
a) Reducing quality standards
b) Continuous improvement in processes
c) Avoiding employee feedback
d) Limiting market research
Answer: b) Continuous improvement in processes
B. True / False
Questions
- Strategic management and tactics
are exactly the same.
Answer: False - There are three levels of strategy:
corporate, business, and functional.
Answer: True - Strategic management only focuses
on short-term objectives.
Answer: False - TQM emphasizes quality improvement
at all levels of an organization.
Answer: True - Strategy formulation is the last
step of the strategic management process.
Answer: False - Strategic management helps in
effective resource allocation.
Answer: True - Functional-level strategy deals
with the overall mission of the organization.
Answer: False - Strategic evaluation helps in
correcting deviations from the plan.
Answer: True - Environmental scanning is an
optional part of the strategic management process.
Answer: False - Implementing strategy is not
necessary for achieving organizational goals.
Answer: False
Module 2
- Corporate Mission and SWOT Analysis
A. Multiple Choice
Questions (MCQs) – 15
- The corporate mission primarily
defines:
a) Day-to-day tasks
b) Organization’s purpose and direction
c) Marketing strategies only
d) Employee salaries
Answer:b) Organization’s purpose and direction - Corporate mission is important
because it:
a) Guides strategy formulation
b) Ensures higher salaries
c) Limits market research
d) Focuses on short-term profits only
Answer: a) Guides strategy formulation - Which of the following is NOT a
component of mission formulation?
a) Purpose of the organization
b) Business scope
c) Financial accounting policies
d) Core values
Answer: c) Financial accounting policies - Objectives in strategic management
are:
a) Broad statements of desired outcomes
b) Specific, measurable steps to achieve goals
c) Irrelevant to mission
d) Only financial targets
Answer: b) Specific, measurable steps to achieve goals - Which of the following is a
guideline for setting objectives?
a) Objectives should be vague
b) Objectives should be realistic and achievable
c) Objectives must ignore resources
d) Objectives should be contradictory
Answer: b) Objectives should be realistic and achievable - Goals differ from objectives in
that:
a) Goals are more general, long-term
b) Goals are more specific
c) Goals are only financial
d) Goals are unrelated to mission
Answer: a) Goals are more general, long-term - Environmental scanning primarily
involves:
a) Internal and external analysis of factors affecting strategy
b) Employee performance reviews
c) Budget allocation only
d) Payroll management
Answer: a) Internal and external analysis of factors affecting strategy - The need for environmental scanning
arises because:
a) Organizations operate in dynamic environments
b) Employees require supervision
c) Accounting standards are fixed
d) Strategy formulation is unnecessary
Answer: a) Organizations operate in dynamic environments - SWOT analysis identifies:
a) Strengths, Weaknesses, Opportunities, Threats
b) Sales, Workforce, Operations, Targets
c) Strategy, Work, Objectives, Tactics
d) Short-term, Weak, Ordinary, Tactical elements
Answer: a) Strengths, Weaknesses, Opportunities, Threats - Which of the following is an
internal factor in SWOT analysis?
a) Competitor strategies
b) Organizational strengths
c) Market trends
d) Government regulations
Answer: b) Organizational strengths - Which of the following is an external
factor in SWOT analysis?
a) Employee skills
b) Company culture
c) Market opportunities
d) Internal processes
Answer: c) Market opportunities - Value chain analysis is used to:
a) Identify value-creating activities
b) Determine employee salaries
c) Set short-term objectives only
d) Reduce strategic planning
Answer: a) Identify value-creating activities - Classification of objectives can be
done based on:
a) Time horizon, nature, and priority
b) Employee preferences
c) Accounting methods
d) Marketing campaigns only
Answer: a) Time horizon, nature, and priority - Corporate mission and goals help
in:
a) Aligning all organizational activities toward strategic objectives
b) Ignoring external opportunities
c) Limiting employee involvement
d) Focusing only on short-term profits
Answer: a) Aligning all organizational activities toward strategic objectives - A guideline for setting goals
includes:
a) They must be broad and general
b) They should be measurable and time-bound
c) They should ignore the mission
d) They must be unrealistic to challenge employees
Answer: b) They should be measurable and time-bound
B. True / False
Questions
- Corporate mission defines the
purpose and scope of an organization.
Answer: True - Objectives are broader than goals
and less specific.
Answer: False - Environmental scanning is
unnecessary for large organizations.
Answer: False - SWOT analysis helps in identifying
both internal and external factors.
Answer: True - Opportunities and threats are
considered internal factors in SWOT.
Answer: False - Value chain analysis examines
activities that create value for customers.
Answer: True - Goals must be vague and flexible to
adapt to changes.
Answer: False - Corporate mission is irrelevant to
strategy formulation.
Answer: False - Environmental scanning includes
monitoring competitors, market trends, and regulations.
Answer: True - A well-defined mission improves
coordination across organizational functions.
Answer: True
Module 3 - Types of
strategies and Implementation
A. Multiple Choice
Questions (MCQs)
1. Which
of the following is a corporate-level strategy?
a) Stability
b) Differentiation at product level
c) Functional optimization
d) Employee training
Answer: a) Stability
2. BCG
Matrix classifies businesses based on:
a) Market share and market growth
b) Profit margin and ROI
c) Employee satisfaction and cost
d) Product lifecycle only
Answer: a) Market share and market growth
3. In
the BCG Matrix, a “Star” represents:
a) High market growth, high market share
b) Low market growth, high market share
c) Low market growth, low market share
d) High market growth, low market share
Answer: a) High market growth, high market share
4. A
“Cash Cow” in the BCG Matrix indicates:
a) Low market growth, high market share
b) High market growth, low market share
c) High market growth, high market share
d) Low market growth, low market share
Answer: a) Low market growth, high market share
5. Expansion
strategy involves:
a) Increasing market share, introducing new products, or entering new markets
b) Reducing production costs only
c) Downsizing or retrenchment
d) Focusing on current stable operations only
Answer: a) Increasing market share, introducing new products, or entering new
markets
6. Retrenchment
strategy is used when:
a) The company wants to grow aggressively
b) The company reduces scope or scales down operations
c) The company is expanding globally
d) The company invests in new technology
Answer: b) The company reduces scope or scales down operations
7. Combination
strategy involves:
a) Using multiple strategies like expansion in one area, retrenchment in
another
b) Focusing only on retrenchment
c) Avoiding any strategic plan
d) Implementing only functional strategies
Answer: a) Using multiple strategies like expansion in one area, retrenchment
in another
8. Top
management’s role in strategy implementation includes:
a) Providing leadership and guidance
b) Ignoring resource allocation
c) Focusing only on daily operations
d) Avoiding communication with employees
Answer: a) Providing leadership and guidance
9. Resource
allocation in implementation involves:
a) Assigning necessary financial, human, and technological resources to
strategic initiatives
b) Ignoring budgeting requirements
c) Delaying projects indefinitely
d) Limiting employee participation
Answer: a) Assigning necessary financial, human, and technological resources to
strategic initiatives
10. McKinsey’s
7S Framework includes all EXCEPT:
a) Strategy
b) Structure
c) Sales
d) Shared Values
Answer: c) Sales
11. Which
of the following is NOT one of McKinsey’s 7S?
a) Systems
b) Style
c) Skills
d) Security
Answer: d) Security
12. Four
routes to competitive advantage include all EXCEPT:
a) Cost leadership
b) Differentiation
c) Focus
d) Retrenchment
Answer: d) Retrenchment
13. Cost
leadership strategy aims to:
a) Become the lowest-cost producer in the industry
b) Offer unique products at premium prices
c) Focus on a niche market
d) Reduce employee involvement
Answer: a) Become the lowest-cost producer in the industry
14. Differentiation
strategy focuses on:
a) Offering unique products/services that command premium prices
b) Minimizing costs only
c) Avoiding product innovation
d) Standardizing operations only
Answer: a) Offering unique products/services that command premium prices
15. Focus
strategy involves:
a) Targeting a specific market segment
b) Competing across all markets
c) Reducing workforce
d) Ignoring competitor strategies
Answer: a) Targeting a specific market segment
B. True / False
Questions
- BCG Matrix uses market share and
market growth to classify business units.
Answer: True - Retrenchment strategy is used to
expand the company into new markets.
Answer: False - Combination strategy can involve
different strategies for different business units.
Answer: True - Top management plays a minor role
in strategy implementation.
Answer: False - McKinsey’s 7S Framework helps in
aligning strategy with organizational elements.
Answer: True - The four routes to competitive
advantage include cost leadership, differentiation, focus, and
retrenchment. Answer:
False
- Cost leadership aims at being the
lowest-cost producer in the industry.
Answer: True - Differentiation strategy focuses on
offering unique products or services.
Answer: True - Resource allocation is not
important for strategy implementation.
Answer: False - Strategy implementation includes
communication, leadership, and monitoring.
Answer: True
Module 4 - Strategy
Evaluation and Control
A. Multiple Choice
Questions (MCQs)
- Strategy evaluation is important
because it:
a) Ensures objectives are achieved
b) Focuses only on short-term tasks
c) Reduces employee participation
d) Ignores environmental changes
Answer: a) Ensures objectives are achieved - Which of the following is a
criterion for effective strategy evaluation?
a) Timeliness of information
b) Ignoring competitor actions
c) Focusing only on cost reduction
d) Avoiding resource allocation
Answer: a) Timeliness of information - Quantitative
factors in strategy evaluation include:
a) Profit, ROI, market share
b) Employee motivation, leadership style
c) Company culture
d) Mission and vision
Answer: a) Profit, ROI, market share - Qualitative
factors include:
a) Customer satisfaction, employee morale, leadership effectiveness
b) Sales figures only
c) Profit margins only
d) Market share only
Answer: a) Customer satisfaction, employee morale, leadership effectiveness - Which
of the following is the first step in the strategic evaluation process?
a) Establishing performance standards
b) Taking corrective action
c) Measuring actual performance
d) Analyzing external threats
Answer: a) Establishing performance standards - Measuring actual
performance involves:
a) Comparing outcomes with planned objectives
b) Ignoring results
c) Only setting new goals
d) Avoiding data collection
Answer: a) Comparing outcomes with planned objectives - Comparison
of actual performance with standards helps in:
a) Identifying deviations
b) Reducing employee morale
c) Ignoring strategic objectives
d) Minimizing communication
Answer: a) Identifying deviations - Taking corrective action is
necessary when:
a) Performance deviates from standards
b) Performance exceeds expectations
c) There is no deviation
d) Strategy is perfect
Answer: a) Performance deviates from standards - Premise control in strategic
evaluation involves:
a) Monitoring assumptions underlying the strategy
b) Employee payroll management
c) Advertising campaigns
d) Customer feedback only
Answer: a) Monitoring assumptions underlying the strategy - Implementation control focuses on:
a) Ensuring the strategy is executed properly
b) Avoiding employee training
c) Ignoring internal processes
d) Only analyzing financial ratios
Answer: a) Ensuring the strategy is executed properly - Strategic surveillance refers to:
a) Continuous monitoring of external and internal changes
b) Employee attendance tracking
c) Budget allocation
d) Payroll management
Answer: a) Continuous monitoring of external and internal changes - Special alert control is used when:
a) Immediate action is required due to unforeseen events
b) Routine tasks are performed
c) Performance is satisfactory
d) Standards are met exactly
Answer: a) Immediate action is required due to unforeseen events - Essentials of an effective
evaluation and control system include:
a) Timeliness, flexibility, accuracy, and economy
b) Only cost reduction
c) Ignoring qualitative factors
d) Avoiding communication with employees
Answer: a) Timeliness, flexibility, accuracy, and economy - Strategy evaluation is a continuous
process because:
a) Business environments are dynamic
b) Organizations do not change
c) Employee roles are static
d) Financial data never changes
Answer: a) Business environments are dynamic - Effective control systems help in:
a) Correcting deviations and improving performance
b) Avoiding feedback
c) Ignoring organizational objectives
d) Reducing monitoring
Answer: a) Correcting deviations and improving performance
B. True / False
Questions
- Strategy evaluation ensures that
objectives are achieved efficiently.
Answer: True - Only quantitative factors are
important in strategy evaluation.
Answer: False - Corrective action is taken when
performance deviates from standards.
Answer: True - Premise control monitors
assumptions underlying the strategy.
Answer: True - Implementation control ensures that
strategy execution aligns with plans.
Answer: True - Strategic surveillance involves
one-time monitoring of external changes.
Answer: False - Special alert control is used for
sudden, unexpected changes requiring immediate action.
Answer: True - Timeliness and flexibility are not
essential for effective control systems.
Answer: False - Strategy evaluation is a one-time
activity.
Answer: False - An effective evaluation and control
system improves organizational performance.
Answer: True
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