1. What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives?  a.       Strategy formulation

b.      Strategy evaluationc.       Strategy implementationd.      Strategic management

e.   Strategic leading 2. Which of the following is not a cultural product?  

a.       Ritesb.      Emotionsc.       Ritualsd.      Sagase.       Symbols

  3. Which individuals are most responsible for the success and failure of an organization?  

a.      Strategistsb.      Financial plannersc.       Personnel directorsd.      Stakeholderse.       Human resource managers

 4. Which sector of the economy would be most impacted by technological developments?  

a.                   forestryb.                  pharmaceuticalsc.                   textilesd.                  metalse.                   paper

  5. Long-term objectives should be all of the following except:  

a.       measurable.b.      continually changing.c.       reasonable.d.      challenging.e.       consistent.

  6. What are guides to decision making?  

a.                       lawsb.                      rulesc.                       policies d.                      procedurese.                       goals7. According to Greenley, strategic management offers all of these benefits except that  a.       it provides an objective view of management problems.b.      it creates a framework for internal communication among personnel.c.       it encourages a favorable attitude toward change.d.      it maximizes the effects of adverse conditions and changes.e.       it gives a degree of discipline and formality to the management of a business. 8. The vision and mission statement can often be found  a.                       in the SEC report.b.                      in annual reports.c.                       on customer receipts.d.                      on supplier invoices.                    e.           on community news bulletins

 9. Which group would be classified as a stakeholder?

a.                       Communitiesb.                      Banksc.                       Suppliersd.                      Employees

e.                      All of these 

10. The process of performing an external audit needs to include:  

a.                       only top level managers, as it’s a planning function.b.                      as many managers and employees as possible.c.                       primarily front-line supervisorsd.                      between 15 to 20 managers for it to be valide.                       stockholders and external government agencies 

11.The first step for using Porter’s Five-Forces Model is to evaluate the relative strength of each competitive force.  True            False               12. Bargaining power of consumers is usually the most powerful of Porter’s five competitive forces.

 TrueFalse                                        

13. Significant barriers to entry are not always sufficient to keep some new firms from entering industries with higher-quality products, lower prices and substantial marketing resources.

 True            False     14. Forward integration is used by firms to gain control or ownership of suppliers.

 True

            False    

15. In an EFE Matrix, opportunities often receive higher weights than threats, but threats too can receive high weights if they are especially severe or threatening.

 True            False  16. Opportunities are a firm’s distinctive competencies that cannot be easily matched or imitated by competitors. True

            False    

17. The process of performing an internal audit, compared to the external audit, provides more opportunity for participants to understand how their jobs, departments and divisions fit into the whole organization. True            False             18. Cultural products include values, beliefs, stories, and language. 

True            False  19. Allocating resources is one of the five basic activities (functions) performed by managers. True

            False   20. Planning should be performed mostly by middle management and then presented to top management for analysis and approval. True            False  

 21. Which of the following is not a stage of strategy formulation techniques?

a.       Formulation Frameworkb.      Matching stagec.       External factor evaluation d.      Decision stage

 22. ST Strategies is an important strategy to

a.      Match weakness with opportunities of the firmb.      Overcome external threatsc.       Obtain benefit form its resourcesd.      Overcome its weakness and reducing threats

23. Strategic Position and Action Evaluation Matrix is used ina.       Formulation Frameworkb.      Matching stage c.       External factor evaluation d.      Decision stage

 24. Cash cows are always in

a.       Introductory industryb.      Growing industryc.       Mature industryd.      Declining industry

 25. In BCG matrix, the reason for choosing relative market share, rather than just profits, is that

a.      It carries more information than just cash flowb.      It shows where the brand is positioned against its main competitorsc.       It indicates where it might be likely to go in the futured.      All of the mentioned options

  26. Those firms must make some drastic changes quickly to avoid further demise and possible liquidation that fall in__________ of grand strategy matrix

a.      Qurdant-1b.      Qurdant-2c.       Qurdant-3d.      Qurdant-4

 27. Strategy-formulation concepts and tools

a.      Do not differ greatly for different size and type of organizationsb.      Differ greatly for different size and type of organizationsc.       Do not differ greatly for profit or nonprofit organizations but differ in small and large

organizationsd.      None of the mentioned options

 

28. Annual objectives a.      Are not critical to successb.      Serve as guidelines for action, directing and channeling efforts and activities of

organization membersc.       Are not important for employee motivation and identificationd.      Do not provide a basis for organizational design

 29. Annual objectives

a.      Need not to be consistent b.      Should be easily achievablec.       Should be measurabled.      Should be confidential and not to be communicated throughout the organization

 30. Which of the following resources is used by all organizations to achieve desired objectives?

a.      Financial resources, b.      Physical resources, c.       Human resourcesd.      All of the mentioned options

 31. Matching Stage consists of the EFE Matrix, the IFE Matrix, and the Competitive Profile Matrix.TrueFalse 32. Strengthsare external conditions that are helpful to the achievement of the objective.TrueFalse 33. All nine techniques included in the strategy-formulation framework require integration of intuition and analysis.TrueFalse 34. Many businesses fall right in the middle of the Grand strategy matrix and thus are not easily classifiedTrueFalse 35. Only a diversified company with a balanced portfolio can use its strengths to truly capitalize on its growth opportunities.TrueFalse 36. Viewing every business as a star, cash cow, dog, or question mark is overly complicated.

True

False 37. Many companies repeatedly fail to truly motivate their people to work with enthusiasm

TrueFalse

 38. Strategy implementation varies substantially among different types and sizes of organizations.

TrueFalse 

39. Annual objectives, stated in terms of profitability, growth, and market share by business segment, geographic area, customer groups, and product are not common in organizations.

TrueFalse 

40. Resource allocation is a major management activity that allows for strategy executionTrueFalse  41.Strategic management is

 a. A pure science. b. Based mainly on intuition. c. Needed mainly when organizational performance falls. d. Based on the use of quantitative and qualitative information.

 42. Business week reports that firms using mission statements have a __________ return on certain financial measures than those without such statements. 

a.      30%b.      35%c.       40%d.      45%

43. What is the best time to develop a mission statement? 

a.       Before a business is openedb.      When the firm is successfulc.       When the firm is in financial troubled.      When the firm is in legal trouble

 44. Which of these basic questions should a vision statement answer? 

a.       What is our business?b. Who are our employees?

c. Why do we exist? d. What do we want to become?

 45.__________ is not part of an external audit. 

a. Analyzing competitors b. Analyzing financial ratios c. Analyzing available technologies d. Studying the political environment

   46). Strategic management process activate in the sequence of _____________ 

a)      Environmental scanning, Strategy formulation, Implementation, control and evaluation

b)      Strategy formulation, Environmental scanning, Implementation, control and evaluation

c)      Environmental scanning, Strategy Implementation, formulation, control and evaluation

d)      Strategy formulation, Implementation, control, evaluation, Environmental scanning

 47). KAPKAL Power’s interested to achieve a 10 percent return on equity (ROE) in their core

electric utility, 14 percent ROE on water resource operations, and 15 percent ROE on support businesses. It is _________________  

a)      Mission

b)      Strategy

c)      Objective

d)      Policy

 

48). “A possible and desirable future state of an organization” is called:

 

a)      Mission

b)      Vision

c)      Strategy implementation

d)      None of above  

 

 

49). “Walls” ice cream purchase “Polka” in order to capture the market. Such kind of

integration is called:

 

a)      Forward Integration

b)      Backward Integration

c)      Horizontal Integration

d)      Product Development

 

50). “To improve economic strength of society and function as a good corporate citizen on a

local, state, and national basis in all countries in which we do business”. This is a mission

statement that contains:

 

a)      Self-concept

b)      Economic concern

c)      Products or Services

d)      Concern for Public Image

 

51). Strategic-management audit is known as:

 

a)      Environmental scanning

b)      Strategy formulation

c)      Strategy control

d)      Strategy evaluation

 

52). Forecasting tools can be broadly categorized into two groups. Those are:

a)      Qualitative, Operational

b)      Quantitative, Operational

c)      Qualitative, Quantitative

d)      Regression and time series analysis

 

 

53). ______________ identifies a firm's major competitors and their particular strengths and

weaknesses in relation to a sample firm's strategic position.

 

a)      Competitive Profile Matrix

b)      External Factor Evaluation matrix

c)      Internal Factor Evaluation Matrix

d)      Boston consulting group matrix

 

54). Organizing means an identifiable group of people contributing their efforts towards the attainment of same goal. It is important at the time of:  

a)      Environmental scanning

b)      Strategy formulation

c)      Strategy Implementation

d)      Strategy evaluation

 

55). ____________ involves assessing the costs, benefits, and risks associated with marketing

decisions.

 

a)      Customer analysis

b)      Opportunity analysis

c)      Marketing Research

d)      Product and Service Planning

 

 56. Which statement best describes intuition?         a)  It represents the marginal factor in decision-making.       b) It represents a minor factor in decision-making integrated with analysis.       c) It should be coupled with analysis in decision-making.       d) It is better than analysis in decision-making. e) It is management by ignorance. 57. What are the means by which long-term objectives will be achieved?  

a.      Strategies.b.      Strengths.c.       Weaknesses.d.      Policies.e.       Opportunities.

 

58. Which of these basic questions should a vision statement answer?  

a)      What is our business?b)      Who are our employees?c)      Why do we exist?d)      What do we want to become?e)      Who are our competitors?

 59. When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit.  

a.       economicb.      politicalc.       technologicald.      competitivee.       Multinational

 60.__________ is not part of an external audit.  

a.                   Analyzing competitorsb.                  Analyzing financial ratiosc.                   Analyzing available technologiesd.                  Studying the political environmente.                   Analyzing social, cultural, demographic and geographic forces

 61. Which of the following is not a cultural product?  

a.       Ritesb.      Emotionsc.       Ritualsd.      Sagase.       Symbols

 62. Which individuals are most responsible for the success and failure of an organization?  

a)      Strategistsb)      Financial plannersc)      Personnel directorsd)      Stakeholderse)      Human resource managers

 63. Long-term objectives should be all of the following except:  

a)      Measurable.b)      Continually changing.c)      Reasonable.d)      Challenging.e)      Consistent.

64. What are guides to decision making?       a.   laws

b.      rulesc.       policies d.      procedurese.       goals

 65. Which group would be classified as a stakeholder?

a)      Communitiesb)      Banksc)      Suppliersd)      Employeese)      All of the given options

 66. “If a strategist has identified that the market growth rate is 8 %, thenumber of sellers in industry are 52 and the industry's products aredifferentiated.” Which one of the industry's key success factors he isexploring?a. Economic forcesb. Social forcesc. Competitive forcesd. Social forces 67 The social factors that affect a firm involve all of the following except:a. Per capita incomeb. Lifestyles of peoplec. Attitudes of people in external environmentd. Values & beliefs of people outside the firm 68. Which type of trend can be exemplified by the increasing numbers oftwo-income households in a society?a. Socialb. Economicc. Culturald. Technological 69 External assessment is performed in which of the strategicmanagement phase?

a. Strategy formulation stageb. Strategy implementation stagec. Strategy evaluation staged. All of the given options 70.What will happen to the Pakistani exports in overseas markets when thereis a strong value of Rupee?a. Less expensiveb. More attractivec. Cheaperd. More expensive 71. Political variables have a significant effect ona. Strategy formulation and implementationb. Strategy formulation and evaluationc. Strategy implementation and evaluationd. Strategy formulation, implementation and evaluation 72. Technological advancements can create which of the following advantagebesides many other existing powerful advantages for the businesses?a. Economicb. Socialc. Environmentald. Competitive 73. Which statement about business intelligence is LEAST accurate?a. Intelligence gathering is an unethical business practiceb. Running an intelligence program requires many peoplec. Running an intelligence program requires many computers and otherresources 74. Business intelligence is not equal to espionage9. The competitive threat posed by substitute products is weakened when:a. Buyers that are currently purchasing the product are not relatively loyalb. There are relatively large number of rival sellers that are fairly equal insize and competitive capabilityc. Customers are in a strong bargaining position to win concessions fromsellers d. Buyers' costs of switching to substitutes are relatively high75. Which one of the statements is a good example of the competitivepower of substitute products?a. The competition between cellular phones and computersb. The competition between Coca-Cola, Pepsi and 7upc. The competition between Amazon.com and traditional off-linebookstores

 d. The competition frozen yogurt provides to the producers &marketers of ice cream76. “The perfect search engine would understand exactly what you meanand give back exactly what you want”, this statement is included in themission statement of an online firm and is showing which one of thefollowing components?a. Self conceptb. Concern for public imagec. A declaration of attituded. Philosophy 77. Which of the following are signs of weakness in a company'scompetitive position?a. A return-on-equity is below 25% and earnings per share of less thanRs. 2.00b. A price set by the firm higher than its rivalsc. A declining market share, poor product quality and few sales inmarketd. Lower revenues and profit margin and narrow product line than themarket leader 78. A complex set of basic underlying assumptions and deeply held beliefsshared by all members of the group and drive in important ways thebehavior of individuals in the organizational context is known as:a. Internal auditb. Internal assessmentc. Organizational strategy d. Organizational culture79. Which one of the following best describes “a substitute product orservice”?a. A competitor's product or serviceb. An alternative way of meeting the same needc. A new entrant into the industryd. A less attractive way of meeting the same need 80. Mr. Ghouri assigns a project to be completed by Khalid till the end ofthe month and then holds periodic meetings with him to review hisprogress. Which of the management functions is Mr. Ghouriperforming?a. Planningb. Leadingc. Controllingd. Organizing 

81. The way a company decides to group customers in order to gain acompetitive advantage is calleda. Market segmentationb. Price-level segmentationc. Customer differentiationd. Positioning 82. A company's ROI (Return on Investment) can be algebraicallydecomposed into two major components: return on sales and ________.a. Fixed capitalb. Net profitc. Cost of goods soldd. Total assets 83. The MM equipment firm’s financial statements reveal that its sales are5 million rupees and its finished goods inventory is valued as 2.5 millionrupees. BC Company is one of the competitors of MM equipment with3 times inventory turnover. You have to decide that the inventoryturnover of MM equipment is:a. Better than BC Companyb. Worst than BC Companyc. Equal to BC Companyd. None of the given options 84. It directs at developing new products before competitors do at improvingproduct quality or at improving manufacturing processes to reduce costs.a. Marketingb. Opportunity analysisc. Research and developmentd. Management 85. “Identifying and evaluating key social, political, economic, technologicaland competitive trends and events”. Which of the followings bestdescribes this statement?a. Developing an effective mission statementb. Conducting an internal auditc. Performing an external auditd. Formulating strategy