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 PAGE 2
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 PAGE 6
► Division manager
► All of the given options
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 PAGE 15
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
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
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
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
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 PAGE 91
► 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
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 PAGE 97 STAGE 1
► Decision
► Matching
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 PAGE 97
► Decision 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 PAGE 105
► Decision stage
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 PAGE 100
Question No: 18 ( Marks: 1 ) - Please choose one
Which of the following is NOT a 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 fir PAGE 102
► Compute an average score and dividing by the number of variables
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 PAGE 108
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
REF:
Total weighted scores = total weighted score for the organization.
Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average = 2.5
Question No: 21 ( Marks: 1 ) - Please choose one
Which of the following is a Functional Q objective?
► Achieving return on investment of at least 15%
► Aiming to achieve a market share of 10% PAGE 113
► Attaining operating profit of over Rs.10 million
► Increase earnings per share by at least 10% every
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% PAGE 113
► Building customer database of at least 250,000 companies
► Achieving a 10% share of International market
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
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 PAGE 117
► Strategic business unit
► Functional structure
► Matrix structure
Question No: 28 ( Marks: 1 ) - Please choose one
Of the following, which one is least likely to be considered an advantage presented b 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 PAGE 120
► It provides excellent training ground for strategic managers
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: Restructuring INCLUDE reducing the size of the firm in terms of number of employees
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 PAGE124
► Developing biodegradable products and packages
► Waste management to clean air and water
Question No: 32 ( Marks: 1 ) - Please choose one
Production processes typically constitute of what percentage of firm's total assets?
► More than 70 % ;PAGE 126
► More than 65 %
► More than 60 %
► More than 55 %
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 PAGE 130
► Psychographic
► Behavioral
► Geographic
Question No: 35 ( Marks: 1 ) - Please choose one
Which variable would be considered as a part of pricing decisions?
► Warranty
► Bundling PAGE 133
► Safety
► Functionality
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 PAGE 147
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 PAGE 58
► It includes general management, planning management, legal, finance, accounting, public affairs
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 PAGE 147
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 PAGE 149
► 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 PAGE 154
► They are control-oriented
► They are information-oriented
Question No: 41 ( Marks: 1 ) - Please choose one
A good evaluation system must posses various qualities. Which of 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 PAGE 154
► Strategy-evaluation activities should provide timely information
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 PAGE 155
► Government auditors
► 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?
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