Strategic Management Quiz! Test MCQ

20 Questions | Total Attempts: 361

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Strategic Management Quiz! Test MCQ

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Questions and Answers
  • 1. 
    “Knowing the other and knowing oneself, in one hundred battles no danger. Not knowing the other and knowing oneself, one victory for one loss. Not knowing the other and not knowing oneself, in every battle certain defeat.” Whose famous words are these?
    • A. 

      Niccolo Machiavelli in The Prince

    • B. 

      Chanakya in Arthasasthra

    • C. 

      Vikram Chandra in The Big Fight

    • D. 

      Sun Tzu in The Art of War

  • 2. 
    Which of the following cases does BEST illustrate the Economic Value Add (generation of economic profits)?
    • A. 

      A firm's revenues exceed its costs

    • B. 

      A firm has higher returns than an investment of similar risk

    • C. 

      A firm has higher returns than an established, less risky competitor

    • D. 

      A firm has the greatest market share in its industry

  • 3. 
    Who said “Before you start some work, always ask yourself three questions - Why am I doing it, What the results might be and Will I be successful. Only when you think deeply and find satisfactory answers to these questions, go ahead."
    • A. 

      Abraham Maslow

    • B. 

      A. P.J. Abdul Kalam

    • C. 

      Chanakya

    • D. 

      Sun Tzu

  • 4. 
    For a capability to provide a sustained competitive advantage, it must be...
    • A. 

      Aligned with the organization’s value proposition

    • B. 

      Difficult for competitors to imitate

    • C. 

      Durable over time

    • D. 

      All of the above

  • 5. 
    As proposed by Mc Kinsey, in order to understand the strategic characteristics of a company, the following seven elements of an organization need detailed analysis...
    • A. 

      Structure, Strategy, Systems, Strengths, Skills, Style and Staff

    • B. 

      Shared values, Skills, Style, Staff, Structure, Strategy, and Systems

    • C. 

      Strategy, Systems, Systems, Style, Staff, Scope and Skills

    • D. 

      Style, Staff, Structure, Strategy, Shared values, Strengths and Social Responsibility

  • 6. 
    Who is considered as an authority in Competitive Strategy and Competitive Advantage?
    • A. 

      Henry Mintzberg

    • B. 

      Bruce Henderson

    • C. 

      Michael Eugene Porter

    • D. 

      Gary Hamel

  • 7. 
    A firm whose return on equity is higher than its opportunity cost of capital…
    • A. 

      Necessarily operates at the bottom of its average cost curve

    • B. 

      Definitely earns positive accounting profits and positive economic profits

    • C. 

      Definitely earns positive economic profits, but maybe not positive accounting profits

    • D. 

      Gary Hamel

  • 8. 
    "Core Competence", ”The Future of Competition: Co-creating Unique Value with Customers,  and “The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits” are the contributions made by which Indian Management Guru?
    • A. 

      C. K. Prahalad

    • B. 

      Deepak Chopra

    • C. 

      Udai Pareekh

    • D. 

      Amartya Sen

  • 9. 
    An analysis of industry median returns of various industries would reveal that in the real world...
    • A. 

      Profits are consistent over time

    • B. 

      Businesses rarely have a competitive advantage

    • C. 

      Product markets are perfectly competitive

    • D. 

      Average industry returns vary even after controlling for risk, in any industry

  • 10. 
    The following parameters are analyzed in VRIN analysis...
    • A. 

      Vision, Rare, Inimitable and Non-substitutable

    • B. 

      Valuable, Rare, Inspiration and Non-substitutable

    • C. 

      Valuable, Rare, Inimitable and Non-substitutable

    • D. 

      Valuable, Rare, Inimitable and Non-standardised

  • 11. 
    The major steps in the Strategic Management process are....
    • A. 

      Environmental analysis, Strategy formulation, Strategic Power, Strategy evaluation and control

    • B. 

      Environmental analysis, Strategic leadership, Strategy implementation, Strategy evaluation and control

    • C. 

      Environmental analysis, Strategy formulation, Strategy implementation, Strategy evaluation and control

    • D. 

      Environmental analysis, Strategy formulation, Strategy implementation, Strategic conflict management

  • 12. 
    The following analysis models are used for the Internal environment analysis of a firm...
    • A. 

      SWOT analysis, Mc Kinsey 7-S framework, Capability analysis on Processes, People and Systems, Company Value Chain

    • B. 

      SWOT analysis, Porter’s Five Forces, Capability analysis on Processes, People and Systems, Company Value Chain

    • C. 

      SWOT analysis, Mc Kinsey 7-S framework, BCG Matrix, Company Value Chain

    • D. 

      SWOT analysis, BCG Matrix, GE Stoplight Matrix, Company Value Chain

  • 13. 
    The primary activities analyzed in Value Chain Analysis are...
    • A. 

      Inbound and Outbound Logistics, Operations, Human Resource Management, Sales and Marketing, Service

    • B. 

      Inbound Logistics, Operations, Outbound logistics, Sales and Marketing, Service

    • C. 

      Inbound and Outbound Logistics, Technology Operations, Outbound logistics, Sales and Marketing

    • D. 

      Inbound logistics, Procurement, Operations, Outbound Logistics, Marketing and Service

  • 14. 
    Which of the following is a tool used for analyzing the portfolio of business to decide on strategies for each of the SBUs?
    • A. 

      Generic Value Chain

    • B. 

      Porter's Five Forces framework

    • C. 

      BCG Matrix

    • D. 

      McKinsey's 7-S framework

  • 15. 
    Core Competency is something that a firm can do well and that meets the following 3 conditions:
    • A. 

      It provides Customer Benefits.

    • B. 

      It is hard for Competitors to imitate.

    • C. 

      It can be leveraged widely to many products and markets.

    • D. 

      All of the above

  • 16. 
    "Question marks" in a BCG Matrix is characterized by the following situations:
    • A. 

      Low market share/ low impact, High market growth

    • B. 

      High market share/ low impact, High market growth

    • C. 

      Low market share/ low impact, Low market growth

    • D. 

      None of the above

  • 17. 
    The purpose of  _______________ is to diagnose the principal competitive pressures in a market and assess how strong and important each one is.
    • A. 

      Value Chain Analysis

    • B. 

      Competitor Analysis

    • C. 

      Five Forces Analysis

    • D. 

      Capability Analysis

  • 18. 
    __________ is the purpose or reason for the firm’s existence.
    • A. 

      Vision

    • B. 

      Mission

    • C. 

      Goal

    • D. 

      Objective

  • 19. 
    Which of the following is NOT a limitation of BCG Matrix?
    • A. 

      Market growth is not the only indicator of the attractiveness of a market.

    • B. 

      Low share businesses can be profitable too

    • C. 

      High market share is not the only success factor.

    • D. 

      It is applicable to large companies that seek volume and experience effects.

  • 20. 
    If a company is able to Create, Capture and Manage Value that yields the firm a long-term advantage, then it is said to have ______________
    • A. 

      Core Competence

    • B. 

      Competitive Advantage

    • C. 

      Long-term Niche Advantage

    • D. 

      Sustainable Competitive Advantage

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