Strategic Management Test

Which of these is not a shortcoming of GE Business Screen portfolio analysis?
It can get quite complicated and cumbersome.
The use of highs and lows to form four categories is too simplistic.
It cannot effectively depict the positions of new products or business units in developing industries.
The numerical estimates of industry attractiveness and business strength/competitive position give the appearance of objectively, but they are in reality subjective judgements that may vary from one person to another.
Sometimes called “problem children” or “wildcats”, which of these are new products with a potential success, but need a lot of cash for development?
Cash cows
Question marks
The two basic phases of a turnaround strategy are ________.
bankruptcy and liquidation
Contraction and consolidation
Sell out and divestment
Pause and proceed with caution
________ are typically contracts for the construction of operating facilities in exchange for a free.
Management contracts
Production sharing
Turnkey operation
Green-field development
When a company builds its own manufacturing plant and distribution centre in another country, it is called _________?
Green-field development
Joint venture
The degree to which a firm operates in multiple geographic locations at the same point in an industry’s value chain is referred to as _________.
Forward integration
Horizontal integration
Backward integration
Taper integration
With which of these does a company not make any of its key supplies, but purchase most of its requirement from outside suppliers that are under its partial control?
Forward integration
Taper integration
Quasi integration
Full integration
Taking over a function previously provided by a supplier is part of which of these strategies?
Concentration strategy
Retrenchment strategy
Diversification strategy
Concentric strategy
Corporate strategy deals with all of these except _________.
Portfolio strategy
Directional strategy
Parenting strategy
Functional strategy
Which of these is a partnership of similar companies in similar industries who pool their resources to gain a benefit that is too expensive to develop alone?
Joint venture
Mutual service consortia
Licensing agreement
________is the active cooperation of firms within an industry to reduce output and raise price in order to get around the normal economic law of supply and demand.
Strategic alliance
Joint venture
Mutual service consortia
Which of these is a defensive market location tactic?
Flanking maneuver
First mover
Raise structural barrier
When a firm attacks a part of the market where the competitor is weak, it is called _______.
A frontal assault
An encirclement
A flanking maneuver
A bypass attack
Which of these is a timing tactic to implement competitive strategies?
First mover
Bypass attack
Guerilla warfare
Flanking maneuver
Which of these is not a dimension of Quality?
Perceived quality
Which of these is aimed at the broad mass market and involves the creation of a product or service that is perceived throughout its industry as unique?
Cost focus
Cost leadership
Focused differentiation
Which of these is the ability of a company to design, produce and market a comparable product more efficiently than its competitors?
Lower cost strategy
Differentiation strategy
Corporate strategy
Focused differentiation strategy
TOWS Matrix generates all of these strategies except _______.
WO Strategies
OT Strategies
ST Strategies
SO Strategies
SWOT is an acronym used to describe which of these?
Scenarios with Organizational Technologies
Strengthening Weaknesses Over Threats
Strengths, Weaknesses, Opportunities, and Threats
Strategic workforce through organizational Training
In a process called ________ , the once-isolated specialists now work side-by-side and compare notes constantly in an effort to design cost-effective products with features customers want
Flexible manufacturing
Autonomous work teams
Concurrent engineering
Quality of work life
Which of these is a sub variable of the marketing mix variable- product?
Which of these is the first phase of strategic management?
Externally oriented planning
Basic financial planning
Forecast-based planning
Strategic management
An organization skilled at creating, acquiring and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights is referred to as a (n)__________
Learning organization
Environmental organization
Entrepreneurial organization
Strategic organization
Strategic management consists of all of these basic elements except________.
Strategic myopia
Environmental scanning
Strategy implementation
Evaluation and control
Which of these strategic factors are parts of an external environment of a company?
All of the above
Which of these is an economic variable in a company’s societal environment?
Trade regulations
Currency convertibility
Information flow infrastructure
The key environmental trends that are judged to have both a medium to high probability of occurrence and a medium to high probability of impact on the corporation are called ________.
External strategic factors
Issues priority matrix
Probability myopic factors
The triad factors
According to Porter, forces driving industry competition include all of these except_______.
Threat of new entrants
Bargaining power of employees
Bargaining power of suppliers
Threat of substitute products or services
Which of these, according to the text, is a possible barrier to entry?
Number of competitors
Diversity of rivals
Economies of scale
None of these
When a price cut by one airline is immediately matched by all other airlines, it suggests which of these forces are in action?
Threat of substitute products or services
Threat of new entrants
Bargaining power of suppliers
Rivalry among existing firms
_______ are corporations that operate in at least two different product market areas, one stable and one variable.
Statistical modeling
Expert opinion
Which of these techniques is the extension of present trends into the future?
Statistical modeling
Expert opinion
The corporation is fundamentally governed by_________ overseeing ___________ with the concurrence of __________.
The shareholders; top management; the board of directors
Top management; the board of directors; the employees
The board of directors; top management; the shareholders
Top management; the shareholders; the board of directors
Which of these is the most important responsibility of a board of directors?
Setting corporate strategy, overall direction, mission, or vision.
Caring for shareholder interest
Reviewing and approving the use of resources
Controlling top management
The role of the board of directors in strategic management is to carry out all of these tasks except_______.
Manage the company
Evaluate and influence
Initiate and determine
Which of these, according to the board of directors continuum, represent the highest degree of involvement in strategic management?
Active participation
Rubber stamp
The inclusion of a corporation’s workers on its board refers to___________.
Outside directors
Interlocking directorate
Lead directors
Which of these occurs when two firms share a director?
Direct interlocking directorate
Indirect codetermination
Indirect interlock
Direct codetermination
A description of what a company is capable of becoming is called a(n) _________.
Agency theory
Strategic vision
Executive leadership
Moral relativism
According to Archie Carroll, managers of business organizations have all of these responsibilities except________.
Which of these levels is characterized by considerations of society’s laws and norms?
The principled level
The preconventional level
The conventional level
The internal moral code level
Which of these approaches proposes that actions and plans should be judged by their consequences?
Utilitarian approach
Individual rights approach
Justice approach
None of these
VRIO framework of analysis includes all of these variables except_______.
The rate at which a firm’s underlying resources and capabilities depreciate or become obsolete is referred to as________.
Which of these refers to the ability of competitors to gather the resources and capabilities necessary to support a competitive challenge?
According to Porter, a manufacturing firm’s primary activities usually begin with ______.
Support activities
Outbound logistics
Inbound logistics
Marketing and sales
Which of these, according to Porter, is NOT a support activity in a manufacturing firm’s value chain?
Firm infrastructure
Marketing and sales
Human resource management
In which of these structures do employees tend to be specialists in the business functions important to that industry such as manufacturing, marketing, and finance?
Simple structure
Strategic business units
Divisional structure
Functional structure
Which of these structures is sometimes called a holding company?
Conglomerate structure
Strategic business units
Functional structure
Product structure
The extent to which units throughout an organization share a common culture is called _____.
Cultural integration
Cultural life cycle
Cultural intensity
Cultural segmentation

This test is for students of management and business studies and has questions designed to test you basic strategic business skills.

Vikrama Dhiman
Product Manager + Business Development & Setup + Agile Process Coach
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