Strategic Management

1. It is generally agreed that the role of strategy is to:

A.

Make best use of resources

B.

Achieve competitive advantage

C.

Make pr profits fo for th the or organization

.

Make ake the best est produ oducts and services

Correct answer

!. "ay #1$$%& sees the strategy of an organization as matching internal capabilities 'ith:

A.

(he industry life cycle

B.

(he e)ternal environment

C.

Its e) e)ternal re relationships

.

Its customer needs

Correct answer

%. *trategy formulation takes place at t'o levels. (hese are:

A.

Conscious an and su sub+conscious

B.

Implicit and e)plicit

C.

Corporate and business

.

Business and operational

Correct answer

,. (he statement of an organization-s aspirations can be found in the organization-s:

A.

ision statement

B.

Mission statement

C.

*trategic ob/ectives

.

Actions

0. ecisions regarding 'hich industries to compete in are the concern of:

A.

Business level strategy

B.

Corporate level strategy

C.

Mergers and acuisitions

.

2unctional level strategy

Correct answer

3. At corporate level4 the scope of an organization relates to:

A.

(he number of customers served

B.

(he breadth of the portfolio of *B5s

C.

(he number of *B5s

Correct answer

.

(he size of the *B5s

6. A decision made at the business level of a firm 'ould be:

A.

(he degree of synergy bet'een the businesses in the portfolio

B.

7hich industries to enter  

C.

8o' to compete in a given market

.

8o' to add value to the businesses in the portfolio

9. (he purpose of strategy is to provide:

A.

A set of standards 'hich all employees in an organisation should strive to attain.

B.

(he strategic direction for an organisation in the foreseeable future.

C.

irection and scope of an organisation over the long+term4 'hich achieves advantage for an o changing environment to meet the needs of markets.

.

irection and scope of an organisation over the long+term4 'hich achieves advantage in a cha through its configuration of resources and competences 'ith the aim of fulfilling stakeholder e)pe

$. An organisation-s mission can be defined as:

A.

(he overriding purpose in line 'ith the values or e)pectations of stakeholders.

Correct ans

B.

(he overriding purpose regardless of the values or e)pectations of stakeholders.

C.

(he organisation-s business plan.

.

(he desired future state of the organisation.

 1. (he fundamental purpose of an organization-s mission statement is to:

A.

efine the operational structure of the organization

B.

Create a good human relations climate in the organization

C.

efine the organization-s purpose in society

.

efine the functional areas reuired by the organization

;.


 11. 7hich of the follo'ing is true regarding Critical *uccess 2actors #C*2s&=

A.

(he list of critical success factors is the same from one organization to another.

B.

5se of C*2s is one method of determining the country in 'hich to locate a ne' facility.

C.

(he critical success factors must be 'eighted eually.

.

Critical *uccess 2actors are relevant for strategic planning4 but not for perations.

C

 1!. 7hich level of strategy impacts the operating staff to the greatest degree d uring their daily 'ork e)perie

A.

?one of these

B.

Corporate *trategy

C.

Business *trategy

.

2unctional *trategy

Correct answer

 1%. (he Boston
A.

(he size of a portfolio of businesses

B.

(he e)tent to 'hich the corporate centre can add value to the businesses

C.

(he balance of the portfolio of businesses

.

(he scope of the portfolio

Correct answer

 1,. According to
A.

Capabilities

B.

A 'ell+chosen generic strategy

C.

8aving the correct mi) of businesses

.

esources

Correct answer

 10. (he -transparency- of competitive advantage refers to the e)tent to 'hich of the follo'ing=

A.

Competitors can identify the reason for the competitive advantage

B.

Competitors can access the same resources and capabilities

C.

Competitors can copy the resources and capabilities

.

Competitors can find substitute resources and capabilities

 13. (hree 'ays of sustaining competitive advantage are:

A.

Monopoly4 cartel and market sharing

B.

@rice+based strategies4 differentiation and diversification

C.

@rice+based strategies4 differentiation and lock+in

.

Change4 adaptation and efficiency

Correct answer

 16. *trategic fit means:

A.

Creating opportunities by building on resources and competences.

B.

8aving a balanced portfolio 'hich meets customer reuirements.

C.

(ailoring strategies to address forces in the business environment.

Correct answer

.

Meeting the e)pectations of stakeholders.

 19. esponse+based competitive advantage can be

A.

All of these

B.

2le)ible response

C.

eliable response

.

uick response

 1$. A core competence can be defined as:

A.

A cluster of attributes that confers competitive advantage

B.

A cluster of resources that confers competitive advantage

C.

A uniue 'ay of configuring an activity

.

Configuration of the value chain

Correct answer

 !. 7hich of the follo'ing are the three areas from 'hich the core competences or distinctive capabilities ar 

A.

Architecture4 innovation and operation

B.

Architecture4 fle)ibility and reputation

C.

Infrastructure4 innovation and reputation

.

Architecture4 innovation and reputation

 !1. (he resource+based vie' is also kno'n as:

A.

(he outside+in approach

B.

(he positioning approach

C.

(he value chain approach

.

(he inside+out approach

 !!. eputationD in the conte)t of an organization-s resources can provide competitive advantage because:

A.

It is e)plicit

B.

It is difficult to copy

C.

It is based on 'ord+of+mouth

.

It is a threshold resource

Correct answer

 !%. (he I> frame'ork serves as a useful operational control techniue b y helping the organisation to:

A.

;valuate capabilities in critical functional areas.

Correct answer

B.

iscover intangible assets lying unutilised 'ithin.

C.

Eocate the likely areas of continual improvements.

.

Create synergies across different departments.

 !,. 7hich of the follo'ing uestions is not an integral part of analyzing a company-s resources and competi

A.

Are the company-s prices and costs competitive=

B.

7hat does the company-s value chain look like=

C.

Is the company competitively stronger or 'eaker than key rivals=

.

7hat are the company-s resource strengths and 'eaknesses and its e)ternal opportunities and

Correct answer

!0. A core competence:

A.

8olds the potential for being a cornerstone of a company-s strategy because it gives a compan and ualifies as a genuine company strength and resource.

B.

?early al'ays resides in the caliber of the company-s assets on its balance sheet rather than in intellectual capitalF furthermore4 balance sheet+related core competencies tend to b e competitively competencies grounded in intellectual capital. Correct answer

C.

Is better suited to helping a company defend against e)ternal threats than in pursuing e)ternal

.

Is usually tied closer to the calibre of the companyDs manufacturing capability andGor its propr  kno'+ho'.