Strategic Management MCQ Exam: Quiz!
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Cultural values would be part of which of the following factor in macro-environment?
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Social
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Demographic
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Ecological
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Natural
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Dive into the essentials of strategic management with this MCQ exam quiz! Explore the origins of business policy, understand the BCG matrix, and distinguish between micro and macro environments. Perfect for students and professionals aiming to sharpen their strategic thinking skills.
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- 2.
BCG in BCG matrix stands for?
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Boston Calmette Group
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Boston Corporate Group
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Boston Consulting Group
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British Consulting Group
Correct Answer
A. Boston Consulting GroupExplanation
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.Rate this question:
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- 3.
Which of the following is not a part of the Macro Environment?
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Laws & Policies
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Suppliers
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Demographics
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Social Values
Correct Answer
A. SuppliersExplanation
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.Rate this question:
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- 4.
What does Dog symbolize in the BCG matrix?
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Introduction
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Maturity
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Growth
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Decline
Correct Answer
A. DeclineExplanation
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.Rate this question:
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- 5.
In strategic thinking, how long is the long term, approximately?
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1 Month to 1 year
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3 to 5 years
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More than 5 years
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2 to 3 years
Correct Answer
A. More than 5 yearsExplanation
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.Rate this question:
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- 6.
What does Green symbolize in GE 9 Cell matrix?
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Select & Earn
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Invest & Expand
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Harvest & Divest
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Both a & b
Correct Answer
A. Invest & ExpandExplanation
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.Rate this question:
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- 7.
Which of the following is not part of the micro environment?
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Shareholders
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Technology
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Competitors
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Public
Correct Answer
A. TechnologyExplanation
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.Rate this question:
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- 8.
The BCG Matrix is based on?
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Industry attractiveness & Business Strength
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Industry Growth rate & Relative market share
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Industry Growth rate & Business strength
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Industry Attractiveness & Relative market share
Correct Answer
A. Industry Growth rate & Relative market shareExplanation
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.Rate this question:
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- 9.
In the context of strategic management, stakeholders can be defined as:
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An individual or group with a financial stake in the organization
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An individual or group with an interest in the organization's activities and who seeks to influence them
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An external individual or group that is able to impose constraints on the organization
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Internal groups or individuals that is able to influence strategic direction of the organization
Correct Answer
A. An individual or group with an interest in the organization's activities and who seeks to influence themExplanation
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.Rate this question:
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- 10.
The origins of Business Policy & Strategic Management can be retraced to?
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1911
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1930
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1879
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1938
Correct Answer
A. 1911Explanation
The correct answer is 1911. This is the year when the origins of Business Policy & Strategic Management can be retraced to.Rate this question:
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- 11.
To find out what an organization's strategy is, you should:
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Read the mission statement
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Look at what the organization actually does
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Ask the CEO
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Read the strategic plan
Correct Answer
A. Read the strategic planExplanation
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.Rate this question:
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- 12.
'Reputation' in the context of an organization's resources can provide a competitive advantage because:
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It is difficult to copy
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It is based on word-of-mouth
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It is a threshold resource
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It is explicit
Correct Answer
A. It is difficult to copyExplanation
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.Rate this question:
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- 13.
What does Yellow symbolize in GE 9 Cell matrix?
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Select & Earn
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Invest & Expand
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Harvest & Divest
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Both a & b
Correct Answer
A. Select & EarnExplanation
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.Rate this question:
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- 14.
The word tactic is most likely to be associated with:
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Business Strategy
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Operational Strategy
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Corporate strategy
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Functional Strategy
Correct Answer
A. Operational StrategyExplanation
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.Rate this question:
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- 15.
In the company’s environment, the company’s customers are part of which of the following?
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Micro environment
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Internal environment
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Macro environment
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External environment
Correct Answer
A. Micro environmentExplanation
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.Rate this question:
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- 16.
In the case where an organization acquires its supplier, this is an example of:
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Horizontal integration
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Backwards vertical integration
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Forwards vertical integration
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A and b
Correct Answer
A. Backwards vertical integrationExplanation
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.Rate this question:
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- 17.
Which of the following statements is not true when describing a successful strategy?
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It provides some property that is unique or distinctive
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It provides the means for renewing competitive advantage
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It addresses changes in the external environment
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It guarantees long term survival
Correct Answer
A. It provides some property that is unique or distinctiveExplanation
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.Rate this question:
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- 18.
The GE 9 cell model is based on?
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Industry Growth rate & Business strength
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Industry Attractiveness & Relative market share
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Industry Growth & Relative market share
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Industry attractiveness & Business Strength
Correct Answer
A. Industry attractiveness & Business StrengthExplanation
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.Rate this question:
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- 19.
When a firm seeks the benefits of global integration and local adaptation, it is best described as which type of strategy?
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Transnational
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Global
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Multi-national
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Glocal
Correct Answer
A. GlocalExplanation
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.Rate this question:
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- 20.
Low cost, Differentiation and Focus are examples of __________________
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Corporate strategies
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Operational Strategies
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Business Strategies
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Functional Strategies
Correct Answer
A. Corporate strategiesExplanation
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.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Oct 13, 2015Quiz Created by
Umesh Kollimath
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