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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? b. c. d. a. Strategy formulation Strategy evaluation Strategy implementation Strategic management e. Strategic leading 2. Which of the following is not a cultural product? a. b. c. d. e. Rites Emotions Rituals Sagas Symbols 3. Which individuals are most responsible for the success and failure of an organization? a. b. c. d. e. Strategists Financial planners Personnel directors Stakeholders Human resource managers 4. Which sector of the economy would be most impacted by technological developments? a. b. c. d. e. forestry pharmaceuticals textiles metals paper 5. Long-term objectives should be all of the following except: a. b. c. d. e. measurable. continually changing. reasonable. challenging. consistent. 6. What are guides to decision making?

a. laws b. rules c. policies d. procedures e. goals 7. 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. b. c. d. in the SEC report. in annual reports. on customer receipts. on supplier invoices. e. on community news bulletins

9. Which group would be classified as a stakeholder? a. Communities b. Banks c. Suppliers d. Employees e. All of these

10. The process of performing an external audit needs to include: a. b. c. d. e. only top level managers, as its a planning function. as many managers and employees as possible. primarily front-line supervisors between 15 to 20 managers for it to be valid stockholders and external government agencies

11.The first step for using Porters 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 Porters five competitive forces. True False

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 firms 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

a. b. c. d. a. b. c. d. a. b. c. d. a. b. c. d.

21. Which of the following is not a stage of strategy formulation techniques? Formulation Framework Matching stage External factor evaluation Decision stage 22. ST Strategies is an important strategy to Match weakness with opportunities of the firm Overcome external threats Obtain benefit form its resources Overcome its weakness and reducing threats 23. Strategic Position and Action Evaluation Matrix is used in Formulation Framework Matching stage External factor evaluation Decision stage 24. Cash cows are always in Introductory industry Growing industry Mature industry Declining industry 25. In BCG matrix, the reason for choosing relative market share, rather than just profits, is that It carries more information than just cash flow It shows where the brand is positioned against its main competitors It indicates where it might be likely to go in the future 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 Qurdant-1 Qurdant-2 Qurdant-3 Qurdant-4

a. b. c. d.

a. b. c. d. a. b. c.

27. Strategy-formulation concepts and tools Do not differ greatly for different size and type of organizations Differ greatly for different size and type of organizations Do not differ greatly for profit or nonprofit organizations but differ in small and large organizations d. None of the mentioned options

a. b. c. d. a. b. c. d.

28. Annual objectives Are not critical to success Serve as guidelines for action, directing and channeling efforts and activities of organization members Are not important for employee motivation and identification Do not provide a basis for organizational design 29. Annual objectives Need not to be consistent Should be easily achievable Should be measurable 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? Financial resources, Physical resources, Human resources All of the mentioned options 31. Matching Stage consists of the EFE Matrix, the IFE Matrix, and the Competitive Profile Matrix. True False 32. Strengthsare external conditions that are helpful to the achievement of the objective. True False 33. All nine techniques included in the strategy-formulation framework require integration of intuition and analysis. True False 34. Many businesses fall right in the middle of the Grand strategy matrix and thus are not easily classified True False 35. Only a diversified company with a balanced portfolio can use its strengths to truly capitalize on its growth opportunities. True False 36. Viewing every business as a star, cash cow, dog, or question mark is overly complicated. True

a. b. c. d.

False 37. Many companies repeatedly fail to truly motivate their people to work with enthusiasm True False 38. Strategy implementation varies substantially among different types and sizes of organizations. True False 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. True False 40. Resource allocation is a major management activity that allows for strategy execution True False 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. b. c. d. a. b. c. d. 30% 35% 40% 45% 43. What is the best time to develop a mission statement? Before a business is opened When the firm is successful When the firm is in financial trouble 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) b) c) d) Environmental scanning, Strategy formulation, Implementation, control and evaluation Strategy formulation, Environmental scanning, Implementation, control and evaluation Environmental scanning, Strategy Implementation, formulation, control and evaluation Strategy formulation, Implementation, control, evaluation, Environmental scanning

47). KAPKAL Powers 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) b) c) d) Mission Strategy Objective Policy 48). A possible and desirable future state of an organization is called: a) b) c) d) Mission Vision Strategy implementation None of above

49). Walls ice cream purchase Polka in order to capture the market. Such kind of integration is called: a) b) c) d) Forward Integration Backward Integration Horizontal Integration 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) b) c) d) Self-concept Economic concern Products or Services Concern for Public Image 51). Strategic-management audit is known as: a) b) c) d) Environmental scanning Strategy formulation Strategy control Strategy evaluation 52). Forecasting tools can be broadly categorized into two groups. Those are: a) b) c) d) Qualitative, Operational Quantitative, Operational Qualitative, Quantitative 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) b) c) d) Competitive Profile Matrix External Factor Evaluation matrix Internal Factor Evaluation Matrix 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) b) c) d) Environmental scanning Strategy formulation Strategy Impl