On This Page
This set of Advanced Strategic Management Multiple Choice Questions & Answers (MCQs) focuses on Advanced Strategic Management Set 7
Q1 | A firm successfully implementing a differentiation strategy would expect:
- customers to be sensitive to price increases.
- to charge premium prices.
- customers to perceive the product as standa
Q2 | A differentiation strategy provides products that customers perceive as having:
- acceptable features.
- features of little value relative to the value provided by the low-cost leader's product.
- features for which the customer will pay a low price.
- features that are non-standardized for which they are willing to pay a premium.
Q3 | When implementing a focus strategy, the firm seeks:
- to be the lowest cost producer in an industry.
- to offer products with unique features for which customers will pay a premium.
- to avoid being stuck in the middle.
- to serve the specialized needs of a market segment.
Q4 | ----------- is a participative, systematic approach to planning and implementing a constantorganizational improvement process.
- WPM
- TQM
- SCM
- QC
Q5 | SCM Stands for ----------
- Suppler-Customer and Money
- Supply Chain Management
- Supplier and Customer Management
- Sales Cost Management.
Q6 | VMOST Analysis tool is developed by:
- C K Prahlad
- Rakesh Sondhi
- Michael Porter
- R S Cooper
Q7 | VMOST stands for-------
- Value, Money, Organisation, Sales, Target
- Vision, Mission, Objective, Strategy, Tactics
- Value, Mission, Objective, Strategy, Tactics
- Vision, Money, Objective, Strategy, Technology
Q8 | A ------------ is defined as an organization that has developed the capacity tocontinuously learn, adapt, and change.
- Change management
- Strategic Change
- Learning organisation
- Strategic organisation
Q9 | Vertical integration strategies
- Extend a company's competitive scope within the same industry by expanding its operations across more parts of the industry value chain
- Are one of the best strategic options for helping companies win the race for global market leadership
- Offer good potential to expand a company's line up of products and services
- All of these
Q10 | The two best reasons for investing company resources in vertical integration (either forward or backward) are to
- Expand into foreign markets and/or control more of the industry value chain
- Broaden the firm's product line and/or avoid the need for outsourcing
- Enable use of offensive strategies and/or gain a first mover advantage over rivals in revamping the industry value chain
- Strengthen the company's competitive position and/or boost its profitability
Q11 | For backward vertical integration into the business of suppliers to be a viable and profitable strategy, a company
- Must first be a proficient manufacturer
- Must be able to achieve the same scale economies as outside suppliers and match or beat suppliers' production efficiency with no drop-off in quality
- Must have excess production capacity, so that it has ample in-house ability to undertake additional production activities
- None of these
Q12 | The strategic impetus for forward vertical integration is to
- Gain better access to end users and better market visibility
- Achieve the same scale economies as wholesale distributors and/or retail dealers
- Control price at the retail level
- None of these
Q13 | A good example of vertical integration is
- A global public accounting firm acquiring a small local or regional public accounting firm
- A large supermarket chain getting into convenience food stores
- A crude oil refiner purchasing a firm engaged in drilling and exploring for oil
- All of these.
Q14 | A strategic alliance:
- Is a collaborative arrangement where companies join forces to defeat mutual competitive rivals
- Involves two or more companies joining forces to pursue vertical integration
- Is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control and mutual dependence
- All the above.
Q15 | Which of these is/are a basic activity of strategy evaluation?
- Reviewing the underlying internal and external factors that represent the bases of current strategies
- Measuring organizational performance
- Taking corrective actions
- All of the above
Q16 | Which of these is the cornerstone of effective strategy evaluation?
- Adequate and timely feedback
- Quality and quantity of managers
- Smaller ratio of top- to lower-level management
- Evaluation preceding implementation stage
Q17 | The purpose of strategy evaluation is to
- increase the budget annually.
- alert management to problems or potential problems.
- make budget changes.
- evaluate employees’ performance.
Q18 | Strategy evaluation is becoming with the passage of time.
- increasingly difficult
- much simpler
- very convenient
- an unnecessary activity
Q19 | The overall strategy which is comprehensive in nature and provides the basis forstrategic direction is known as----
- Corporate strategy
- Grand strategy
- General strategy
- All of these
Q20 | Which of the following is/are stability strategies?
- No Change strategy
- Caution Strategy
- Profit Strategy
- All of these
Q21 | Which of the following is not Growth/Expansion strategies?
- Caution strategy
- Vertical integration
- Diversification
- Cooperation
Q22 | Which of the following is retrenchment strategy?
- Turn around
- Divestiture
- Liquidation
- All of these
Q23 | 'Diversification strategy' is used to gain market share in
- current product in current market
- new products for new markets
- new products in new market
- new products in current markets
Q24 | Défense strategies in which the leader stretches over new market territories using marketdiversification is classified as
- mobile defence
- static defence
- stable defence
- unstable defence
Q25 | Strategies such as diversification, penetration and market development are the part of
- extensive growth
- intensive growth
- integrative growth
- disintegrative growth