Strategic Management MCQ Exam: Quiz!

Cultural values are part of the social factor in the macro-environment. The social factor refers to the beliefs, attitudes, and behaviors of a society, which includes cultural values. Cultural values are the shared beliefs and norms that shape the behavior and preferences of individuals within a society. These values can influence various aspects of society, such as consumer behavior, social norms, and business practices. Therefore, cultural values fall under the social factor in the macro-environment.

The correct answer is Boston Consulting Group. BCG in BCG matrix stands for Boston Consulting Group. The BCG matrix is a strategic management tool used to analyze a company's portfolio of products or business units. It categorizes products or business units into four quadrants based on their market growth rate and relative market share. The Boston Consulting Group developed this matrix in the 1970s as a framework to help companies make strategic decisions about their product portfolio.

The macro environment refers to the external factors that can impact an organization's business operations and strategies. These factors include economic, political, social, and technological influences. Suppliers, on the other hand, are considered a part of the micro environment as they directly affect the organization's supply chain and operations. Therefore, suppliers are not a part of the macro environment.

In strategic thinking, the long term refers to a time frame that extends beyond 5 years. This means that when making strategic decisions or plans, organizations should consider a time horizon that is greater than 5 years in order to anticipate and prepare for future changes and challenges. By taking a longer-term perspective, organizations can better align their goals, resources, and actions to achieve sustainable success in the future.

In the BCG matrix, the Dog symbolizes a product or business unit that is in the decline stage of its life cycle. This means that the product or business unit has low market share and operates in a slow-growth or declining market. Dogs typically generate low or negative cash flow and require minimal investment. They may not have a promising future and often need to be either divested or managed for cash generation rather than growth.

Green symbolizes "Invest & Expand" in the GE 9 Cell matrix. This means that the company should invest in and expand the business units or products that fall under this category. It indicates that these units have high market growth potential and strong competitive position, making them attractive for further investment and expansion.

The BCG Matrix is based on the industry growth rate and relative market share. This matrix is used to analyze and categorize a company's products or services into four quadrants: stars, cash cows, question marks, and dogs. The industry growth rate represents the market's potential for growth, while the relative market share indicates the company's competitive position within that market. By considering these two factors, the BCG Matrix helps companies make strategic decisions regarding resource allocation and portfolio management.

The micro environment consists of factors that are close to the organization and have a direct impact on its operations. These factors include competitors, shareholders, and the public. Technology, on the other hand, is considered part of the macro environment as it is an external factor that affects the industry as a whole, rather than just one organization. Therefore, technology is not part of the micro environment.

Stakeholders in strategic management are individuals or groups who have an interest in the organization's activities and seek to influence them. This definition encompasses both internal and external stakeholders. Internal stakeholders can include employees, managers, and shareholders who have a direct influence on the organization's strategic direction. External stakeholders can include customers, suppliers, government agencies, and community groups who have an indirect influence on the organization's activities. By considering the interests and influence of stakeholders, organizations can make more informed decisions and effectively manage their relationships with various stakeholders.

To find out what an organization's strategy is, reading the strategic plan is the most effective approach. The strategic plan outlines the organization's long-term goals, objectives, and the actions needed to achieve them. It provides a comprehensive overview of the organization's strategy, including its mission, vision, values, and key initiatives. By reading the strategic plan, one can gain insights into the organization's priorities, target markets, competitive advantages, and plans for growth and development. This information is crucial for understanding the organization's strategy and aligning efforts accordingly.

The correct answer is 1911. This is the year when the origins of Business Policy & Strategic Management can be retraced to.

Reputation is difficult to copy because it is built over time through consistent delivery of high-quality products or services, strong customer relationships, and positive brand image. It cannot be easily replicated by competitors as it requires a significant investment of time, effort, and resources. A strong reputation enhances customer trust and loyalty, attracts new customers, and differentiates the organization from its competitors, thereby providing a competitive advantage.

Yellow symbolizes "Select & Earn" in the GE 9 Cell matrix. This means that the business unit falls under the category of having high market attractiveness and strong competitive position, indicating that it should be selected for further investment and expansion to maximize its earnings potential.

The company's customers are part of the micro environment because they directly interact with the company and have a significant impact on its operations and success. The micro environment includes stakeholders who are closely connected to the company, such as customers, suppliers, competitors, and distributors. These stakeholders have a direct influence on the company's ability to meet its objectives and satisfy customer needs.

The word "tactic" refers to a specific action or approach used to achieve a particular goal or objective. Operational strategy focuses on the day-to-day activities and decisions that are necessary to achieve operational efficiency and effectiveness. It involves the implementation of specific tactics to optimize processes, resources, and performance at the operational level. Therefore, "tactic" is most likely to be associated with operational strategy rather than business strategy, corporate strategy, or functional strategy, which focus on broader and higher-level planning and decision-making.

Backwards vertical integration refers to when an organization acquires a supplier in its supply chain. This allows the organization to have more control over its inputs and ensure a stable supply of resources. In this case, the organization is moving upstream in the supply chain by acquiring its supplier, which is an example of backwards vertical integration.

The GE 9 cell model is based on industry attractiveness and business strength. This model is used to analyze a company's portfolio of businesses and determine their potential for growth and profitability. Industry attractiveness refers to the overall attractiveness of the industry in terms of market growth, competition, and other factors. Business strength refers to the company's competitive position within the industry, including factors such as market share, brand reputation, and financial performance. By assessing both industry attractiveness and business strength, the GE 9 cell model helps companies make strategic decisions about resource allocation, investment, and divestment.

A successful strategy does not necessarily have to provide some property that is unique or distinctive. Many successful strategies are built on existing ideas or concepts and focus on execution and implementation rather than being completely unique. What matters more is the effectiveness of the strategy in achieving the desired goals and objectives.

When a firm seeks the benefits of both global integration and local adaptation, it is referred to as a glocal strategy. This approach allows the firm to take advantage of global economies of scale and efficiencies while also tailoring its products or services to meet the specific needs and preferences of local markets. By combining global and local elements, the firm can achieve a balance between standardization and customization, maximizing its competitiveness in different markets.

Low cost, Differentiation, and Focus are examples of corporate strategies. Corporate strategies are the overall plans and actions taken by a company to achieve its long-term objectives and gain a competitive advantage in the market. These strategies involve making decisions at the highest level of the organization and are focused on issues such as market positioning, resource allocation, and diversification. Low cost, Differentiation, and Focus are three common types of corporate strategies that companies can adopt to achieve their goals and outperform their competitors.