Tuesday, June 14, 2011

MGT603 FINAL TERM SOLVED PAPER-1


 FINALTERM  EXAMINATION
Fall 2008
MGT603- Strategic Management (Session - 1)
Marks: 81

Question No: 1      ( Marks: 1 ) - Please choose one


   
Strategic management integrates all of the following areas EXCEPT:   
         Management 
         Marketing 
         Research and development 
         Human resource management  
Ref:
The study of strategic management integrates different  topics. Different courses are integrated due to the study of this course so that businesses become successful in every sector. It integrates the following:
¾  Marketing 
¾  Management
¾  Finance
¾  Research and development

Question No: 2      ( Marks: 1 ) - Please choose one
   
Strategist is an individual who is involved in the strategic management process, thus
may be known as:  
         Member board of director 
         President 
         Division manager  
         All of the given options 
Ref:
Strategists have various job titles, such as chief executive officer, president,
and owner, chair of the board, executive director, chancellor, dean, or entrepreneur. 
                                                                                                           
Question No: 3      ( Marks: 1 ) - Please choose one
   
A desired future state that the organization attempts to realize . Identify the term
relevant to the given statement.  
         Policy 
         Procedure 
         Goal 
         Strategy  
Question No: 4      ( Marks: 1 ) - Please choose one
   
Which of the following business actions is NOT considered to be unethical?  
         Poor product or service safety 
         Using non-union labor in a union shop 
         Misleading advertising  
         Too expensive products  
Ref:
Some business actions always considered to be unethical include misleading advertising or labeling, causing environmental harm, poor product or service safety, padding expense accounts, insider trading, dumping banned or flawed products. In foreign markets, lack of equal opportunities for women and minorities, overpricing, hostile takeovers, moving jobs overseas, and using nonunion labor in a union shop.

Question No: 5      ( Marks: 1 ) - Please choose one
   
Which type of trend can be exemplified by the increase in average level of education
in a society?   
         Cultural 
         Technological 
         Economic 
         Social  

Question No: 6      ( Marks: 1 ) - Please choose one


   
Allocation and reallocation of capital and resources to projects, products, assets,
and divisions of an organization is known as:  
         Investment decisions 
         Financing decisions 
         Restructuring decisions 
         Strategic decision 
Ref:
The  investment decision, also called capital budgeting, is the allocation and reallocation of capital and resources to projects, products, assets, and divisions of an organization. Once strategies are formulated, capital budgeting decisions are required to implement strategies successfully. The  financing decision concerns determining the best capital structure for the firm and includes examining various methods by which the firm can raise capital (for example, by issuing stock, increasing debt, selling assets, or using a combination of these approaches). The financing decision must consider both short-
term and long-term needs for working capital. Two key financial ratios that indicate whether a firm's financing decisions have been effective are the debt-to-equity ratio and the debt-to-total-assets ratio.

Question No: 7      ( Marks: 1 ) - Please choose one
   
All of the following fall under the category of  Process  function of production
management EXCEPT:
 
         Choice of technology  
         Quality assurance 
         Process flow analysis 
         Transportation analysis 
Ref:
Process decisions concern the design of the physical production
system. Specific decisions include choice of technology, facility
layout, process flow analysis, facility location, line balancing,
process control, and transportation analysis.

Question No: 8      ( Marks: 1 ) - Please choose one


   
A planned activity aimed at discovery of new knowledge with the hope of developing
new or  improved products and services and translation of  its findings  into a plan or
design of new or improved products and services is known as:  
         Marketing 
         Research and development 
         Production 
         Management information system  
Question No: 9      ( Marks: 1 ) - Please choose one
   
________________ become/s  information only when  it/they  is/are  evaluated,  filtered,
condensed,  analyzed  and  organized  for  a  specific  purpose,  problem,  individual,  or
time.  
         Material 
         Data 
         Competitive advantages 
         Competitor analysis  
Ref:
Data becomes information only when it is evaluated, filtered, condensed, analyzed, and organized for a specific purpose, problem, individual, or time.

Question No: 10      ( Marks: 1 ) - Please choose one
   
The Web sites that sell products directly to the consumers are the examples of which
type of strategy?  
         Backward integration
         Product development 
         Forward integration 
         Horizontal integration  
Ref:
Product Development
Product development is a strategy that seeks increased sales by improving or modifyingpresent products or services. Product development usually entails large  research and development  expenditures. The U.S. Postal Service now offers stamps and postage via the Internet, which represents a product development strategy. Called PC Postage, stamps can now be obtained online from various Web sites such as
stamps.com and then printed on an ordinary laser or inkjet printer. E-Stamp Corporation, Neopost, and Pitney Bowes, too, are actively pursuing product development by creating their own versions of digital stamps.

Question No: 11      ( Marks: 1 ) - Please choose one
   
The  extent  to which a business  concentrates on a narrowly defined market  is best
referred to as:   
         Niche strategy  
         Cost leadership strategy 
         Differentiation strategy  
         Segmentation  
Question No: 12      ( Marks: 1 ) - Please choose one
   
Under  which  of  the  following  conditions,  Concentric  Diversification  would  be
particularly an effective strategy to pursue?  
         When an organization has grown so large so quickly that major internal
reorganization is needed 
         When sales of current products would increase intensively by adding the new
related products  
         When revenues from current products/services would increase significantly by
adding the new unrelated products 
         When current products are in maturity stage of the product life cycle 
Ref:
Concentric Diversification
Adding new, but related, products or services
Adding new, but related, products or services is widely called  concentric diversification.

Question No: 13      ( Marks: 1 ) - Please choose one
   
Which of the following stages in the strategy-formulation framework focuses on summarizing the basic information needed to formulate strategies?  
         Output 
        Input 
         Decision 
         Matching 
Ref:
Stage 1 of the formulation framework consists of the EFE Matrix, the IFE Matrix, and the Competitive Profile Matrix. Called the Input Stage, Stage 1 summarizes the basic input information needed to formulate strategies.

Question No: 14      ( Marks: 1 ) - Please choose one
   
Which of the following stages of  Strategy Formulation Framework  involves
development of Internal-Factor Evaluation Matrix?   
         Input stage 
         Output stage 
         Matching stage 
         Decision stage
Ref:
Stage 1 of the formulation framework consists of the EFE Matrix, the IFE Matrix, and the Competitive Profile Matrix. Called the Input Stage,
 
Question No: 15      ( Marks: 1 ) - Please choose one
   
Which of the following stages of strategy formulation framework involves
development of Internal External Matrix?   
         Input stage 
         Output stage 
         Matching stage 
         Decision stage
Ref:
Stage-2 (Matching stage) 
1.  TWOS Matrix (Threats-Opportunities-Weaknesses-Strengths)
2.  SPACE Matrix (Strategic Position and Action Evaluation)
3.  BCG Matrix (Boston Consulting Group)
4.  IE Matrix (Internal and external) 
5.  GS Matrix (Grand Strategy)
 
Question No: 16      ( Marks: 1 ) - Please choose one
   
In order to avoid the emergence of substitute products, AF & Z Corporation has an
access and control over the scarce natural resources necessary for the production of
their products, Which of the following strategies AF & Z is using?  
         SO 
         WO 
         SW
         ST  
Question No: 17      ( Marks: 1 ) - Please choose one
   
What type of strategies would you recommend when a firm s SPACE Matrix
directional vector has the coordinates (-2, +3)?   
         Aggressive 
         Conservative 
         Competitive 
         Defensive  
Question No: 18      ( Marks: 1 ) - Please choose one
   
Which of the following is NOTa step for the preparation of a SPACE matrix?  
         Select a set of variables to relating to financial strength, competitive advantage,
environmental stability, and industry strength 
         Assign a numerical value ranging from +1 (worst) to +6 (best) to each of the
variables that make up the financial strength and industry strength dimensions 
         Assign weights to the variables according to their relative importance for the firm 
         Compute an average score and dividing by the number of variables   
Ref:
Steps for the preparation of SPACE Matrix
 The steps required to develop a SPACE Matrix are as follows:
1.  Select a set of variables to relating to financial strength, competitive advantage, environmental stability, and industry strength.
2.  Assign a numerical value ranging from +1 (worst) to +6 (best) to each of the variables that make up the financial strength and industry strength dimensions. Assign a numerical value ranging from -1 (best) to -6 (worst) to each of the variables that make up the environmental stability and competitive advantage dimensions.
3.  Compute an average score and dividing by the number of variables 
4.  Plot the average scores in the SPACE Matrix.
5.  Add the two scores on the x-axis and plot the resultant point on X. Add the two scores on the y-axis and plot the resultant point on Y. Plot the intersection of the new xy point.
6.  Draw a directional vector from the origin of the SPACE Matrix through the new intersection point. This vector reveals the type of strategies  recommended for the organization: aggressive, competitive, defensive, or conservative.

Question No: 19      ( Marks: 1 ) - Please choose one
   
The business has a strong competitive position but is in a slow-growth industry.
Further, the business typically has high cash flow levels and limited internal growth
needs.  The statement refers which of the following?  
         The firm falling in Quadrant I of Grand Strategy Matrix 
         The firm falling in Quadrant II of Grand Strategy Matrix 
         The firm falling in Quadrant III of Grand Strategy Matrix 
         The firm falling in Quadrant IV of Grand Strategy Matrix 
Ref:
Qurdant-4  contains that company’s strong competitive situation and slow market growth. Finally, Quadrant IV businesses have a strong competitive position but are in a slow-growth industry. These irms have the strength to launch diversified programs into more promising growth areas. Quadrant IV irms have characteristically high cash flow levels and limited internal growth needs and often can pursue concentric, horizontal, or conglomerate diversification successfully. Quadrant IV firms also may pursue joint ventures

Question No: 20      ( Marks: 1 ) - Please choose one


   
What is the product of weights and attractiveness scores for each strategy in
QSPM?  
         Sum total attractiveness scores 
         Total attractiveness scores 
         Weighted scores 
         Total weighted scores  
Question No: 21      ( Marks: 1 ) - Please choose one
   
Which of the following is a Functional level objective?  
         Achieving return on investment of at least 15% 
         Aiming to achieve a market share of 10% 
         Attaining operating profit of over Rs.10 million  
         Increase earnings per share by at least 10% every 
Ref:
(2) Functional level
E.g. specific objectives for marketing activities
Examples of functional marketing objectives” might include:
• We aim to build customer database of at least 250,000 households within the next 12 months
• We aim to achieve a market share of 10%
• We aim to achieve 75% customer awareness of our brand in our target markets 
Both corporate and functional objectives need to conform to the commonly used SMART criteria.

Question No: 22      ( Marks: 1 ) - Please choose one


   
Which of the following is a Corporate level objective?   
         Getting 75% customer awareness of company s brand in target markets  
         Increasing earnings per share by at least 10%  
         Building customer database of at least 250,000 companies 
         Achieving a 10% share of International market 
Ref:
(1) Corporate level
These are objectives that concern the business or organization as a whole
Examples of “corporate objectives might include:
• We aim for a return on investment of at least 15%
• We aim to achieve an operating profit of over £10 million on sales of at least £100 million
• We aim to increase earnings per share by at least 10% every year for the foreseeable future
 
Question No: 23      ( Marks: 1 ) - Please choose one
   
The manager  of MZ  firm  has  defined  the  goal  that  the  firm wants  to  increase  its
production by at least 200 units in size.  Thus, which part of the SMART criteria has
been focused by the firm through this goal statement?  
         Specific 
         Measurable 
         Achievable 
         Relevant  
Ref:
Specific - the objective should state exactly what is to be achieved.

Question No: 24      ( Marks: 1 ) - Please choose one


   
Mr. Ali, the operations manager of ABC Company did not agree with the proposal of
marketing manager - Mr. Zeeshan at the meeting regarding launch of a new product. 
There was an exchange of hot word among them. The matter was referred to CEO, so
that the conflict could be resolved, but the CEO did not take any action in the hope
that the conflict will resolve itself. The statement describes which of the conflict
resolution mood?   
         Avoidance 
         Compliance 
         Diffusion 
         Confrontation  
Question No: 25      ( Marks: 1 ) - Please choose one
   
Ahmad fisheries is going to arrange a meeting with AH& T distributors so that the
matters regarding wrong delivery by AH & T and conflict arising from it can be
settled. Which of the following conflict resolving approach is followed in the situation?  
         Avoidance 
         Confrontation 
         Resistance 
         Diffusion   
Question No: 26      ( Marks: 1 ) - Please choose one
   
Why do changes in company strategy often require changes in the way an organization
is structured?  
         Because structure depicts how goals will be established 
         Because structure dictates how authorities will be delegated 
         Because structure dictates how resources will be obtained 
         Because structure dictates how financial resources are spent   
Question No: 27      ( Marks: 1 ) - Please choose one
   
Which one of the following is the organizational structure that most of the medium-
size organizations follow?  
         Divisional structure  
         Strategic business unit 
         Functional structure 
         Matrix structure 
Ref:
Medium-size firms tend to be divisionally structured (decentralized).

Question No: 28      ( Marks: 1 ) - Please choose one
   
Of the following, which one is least likely to be considered an advantage presented by a
matrix organizational structure?   
         It facilitates the use of highly specialized staff and equipment  
         It minimizes the project cost because the key people can be shared 
         It can raise dual reporting and communication problems 
         It provides excellent training ground for strategic managers  
Ref:
Some advantages of a matrix structure are that project objectives are clear, there are many channels of communication,  workers can see visible results of their work, and shutting down a project can be accomplished relatively easily.

Question No: 29      ( Marks: 1 ) - Please choose one
   
Zairian Corporation has streamlined its operations by cutting costs, such as decrease
in payroll or reduction in its size through the sale of assets. In which of the following
activity Zaria Corporation is involved?  
         E-Engineering 
         Re-engineering 
         Restructuring 
         Benchmarking  
Ref:
Benchmarking simply involves comparing a firm against the best firms in
the industry on a wide variety of performance-related criteria. Some benchmarking ratios commonly used in rationalizing the need for restructuring are headcount-to-sales-volume, or corporate-staff-to-operating-employees, or span-of-control figures.
The primary benefit sought from restructuring is cost reduction.

Question No: 30      ( Marks: 1 ) - Please choose one


   
Which of these is not one of the tests used to determine whether a performance-pay
plan will benefit an organization?  
         Do employees understand the plan? 
         Is the plan improving communications? 
         Does the plan pay out when it should? 
         Does the plan reduce management layers?  
Question No: 31      ( Marks: 1 ) - Please choose one
   
All of the following are the managerial issues for managing natural environment
EXCEPT:  
         Global warming- depletion of rain forests 
         Employee understanding about environment 
         Developing biodegradable products and packages 
         Waste management to clean air and water
Ref:
Special natural environmental issues include ozone depletion, global warming, depletion of rain forests, destruction of animal habitats, protecting endangered species, developing biodegradable products and packages, waste management, clean air, clean water, erosion, destruction of natural resources, and pollution control.   

Question No: 32      ( Marks: 1 ) - Please choose one


   
Production processes typically constitute of what percentage of firm s total assets?  
         More than 70 % 
         More than 65 % 
         More than 60 % 
         More than 55 %   
Ref:
Production processes typically constitute more than 70 percent of a firm's total assets

Question No: 33      ( Marks: 1 ) - Please choose one


   
Which one of the following is TRUE about two different market segments?  
         They can be served with the same marketing strategy 
         They usually require different marketing strategies 
         They are always in different geographic locations 
         There is heterogeneity within the segment in its needs  
Question No: 34      ( Marks: 1 ) - Please choose one
   
XYZ Company has segmented its market by keeping in view occupation and
education level of customers. Which of the following bases of segmentation the
company has used?  
         Demographic 
         Psychographic 
         Behavioral  
         Geographic
Ref:
Demographic Segmentation
Some demographic segmentation variables include: 
•  Age
•  Gender
•  Family size
•  Family lifecycle
•  Generation: baby-boomers, Generation X, etc. 
•  Income
•  Occupation
•  Education
•  Ethnicity
•  Nationality
•  Religion
•  Social class 

Question No: 35      ( Marks: 1 ) - Please choose one


   
Which variable would be considered as a part of pricing decisions?  
         Warranty 
         Bundling 
         Safety
         Functionality  
Ref:
Price Decisions
Some examples of pricing decisions to be made include:
•  Pricing strategy (skim, penetration, etc.)
•  Suggested retail price
•  Volume discounts and wholesale pricing
•  Cash and early payment discounts
•  Seasonal pricing
•  Bundling
•  Price flexibility
•  Price discrimination

Question No: 36      ( Marks: 1 ) - Please choose one
   
Which of the following statement is TRUE about 'firm infrastructure' as a support
activity of Michael Porter's value chain model?  
         It includes procurement of raw materials, servicing, spare parts, buildings,
machines 
         It Includes technology development to support the value chain activities like
Process automation 
         It includes the activities associated with recruiting and development of employees
and managers 
         It includes general management, planning management, legal, finance, accounting,
public affairs
Ref:
•  Support activities (Staff functions, overhead)
o  Procurement. Procurement of raw materials, servicing, spare parts, buildings, machines, etc.
Technology Development. Includes technology development to support the value chain
activities. Such as: Research and Development, Process automation, design, redesign.
o  Human Resource Management. The activities associated with recruiting, development
(education), retention and compensation of employees and managers.
·                                 Firm Infrastructure. Includes general management, planning management, legal, finance, accounting, public affairs, quality management, etc. 

Question No: 37      ( Marks: 1 ) - Please choose one


   
Which of the following statement is correct about human resource management?  
         It includes procurement of raw materials, servicing, spare parts, buildings,
machines 
         It Includes technology development to support the value chain activities like
Process automation 
         It includes the activities associated with recruiting and development of employees and managers 
         It includes general management, planning management, legal, finance, accounting,
public affairs  
Ref:
·                                 Human Resource Management. The activities associated with recruiting, development (education), retention and compensation of employees and managers

Question No: 38      ( Marks: 1 ) - Please choose one


   
All of the following are the cost drivers of Porter s supply chain activities EXCEPT:  
         Capacity utilization 
         Timing of market entry
         Economies of scale 
         Firm's infrastructure  
Ref:
Porter identified 10 cost drivers related to value chain activities:
1.  Economies of scale.
2.  Learning.
3.  Capacity utilization.
4.  Linkages among activities.
5.  Interrelationships among business units.
6.  Degree of vertical integration.
7.  Timing of market entry.
8.  Firm's policy of cost or differentiation.
9.  Geographic location.
10.  Institutional factors (regulation, union activity, taxes, etc.).

Question No: 39      ( Marks: 1 ) - Please choose one
   
Which one of the following is NOT considered as a difficulty in evaluation of
strategies?  
         Increase in environment s complexity 
         Difficulty predicting future with accuracy 
         Decreasing number of variables 
         Rate of obsolescence of plans  
Question No: 40      ( Marks: 1 ) - Please choose one
   
Which of the following statement is TRUE about  Controls  which are used in
strategy evaluation stage?  
         They are strategy-oriented 
         They are action-oriented  
         They are control-oriented  
         They are information-oriented  
Ref:
Controls need to be action-oriented rather than information-oriented.

Question No: 41      ( Marks: 1 ) - Please choose one


   
A good evaluation system must posses various qualities. Which of the following is
not a characteristic of a good strategy evaluation system?  
         Strategy-evaluation activities must be economical 
         Strategy-evaluation activities should be meaningful 
         Strategy-evaluation activities should dominate the decisions 
         Strategy-evaluation activities should provide timely information
Ref:
. First, strategy-evaluation activities must be economical; too much information can be just as bad as too little information; and too many controls can do more harm than good. Strategy-evaluation activities also should be meaningful; they should specifically relate to a firm's objectives. They should provide managers with useful information about tasks over which they have control and influence.
Strategy-evaluation activities should provide timely information; on occasion and in some areas, managers may need information daily.

Question No: 42      ( Marks: 1 ) - Please choose one
 The people who perform audit can be categorized as all of the following EXCEPT:  
         Independent auditors 
         Financial auditors 
         Government auditors 
         Internal auditors  
Ref:People who perform audits can be divided into three groups: independent auditors, government auditors, and internal auditors.
Question No: 43      ( Marks: 3 )
If you construct a SPACE Matrix and the directional vector points to the lower left
quadrant, what type of strategies would you recommend?  
Question No: 44      ( Marks: 3 )
Define Functional level objectives. Provide at least two statements exemplifying such objectives.   
Question No: 45      ( Marks: 3 )
Auditors who perform audit can be divided  into  three groups? Identify and define  each of them.  
Question No: 46      ( Marks: 5 )
Identify the five steps that must be followed while developing an IE Matrix. 
Question No: 47      ( Marks: 5 )
Positioning is actually the way that a product is introduced to its market audience.
What are the five steps required for effective product positioning?  
Question No: 48      ( Marks: 10 )
You are the business executive of Omar textiles Mills. You are asked to evaluate the
strengths, weaknesses, opportunities and threats of the firm and develop altogether
different strategies by using different combinations of any two of these.  
Question No: 49      ( Marks: 10 )
Quantitative Strategic Planning Matrix (QSPM) is a high-level strategic
management approach for evaluating possible strategies. You are required to
prepare a (QSPM) of XYZ Manufacturing Company for evaluating any two
strategies?
http://www.vustudycorner.blogspot.com/

No comments:

Post a Comment

Contact Form

Name

Email *

Message *