QUESTION BANK Course: BBA Semester: IV Paper: Strategic Management Paper Code:401 Faculty—Samar Reyaz Section A: Very Short Answer / Multiple Choice Questions Marks: 2 marks each 1. A SWOT analysis is an example of a: customer profitability analysis. strategic analysis. position analysis. shareholder value analysis. 2. What is the validity of the following statements, relating to a SWOT analysis? (1) Strengths and opportunities relate to internal factors. (2) Weaknesses and threats relate to external factors. Statement (1) (2) True True True False False True False False A B C D A B C D 3. Which one of the following is not an aspect of profit or contribution arising from a change in strategy? Price aspect Growth aspect Effectiveness aspect Usage (or productivity) aspect 4. What is the validity of the following statements? (1) A customer profitability analysis seeks to establish how much profit each customer makes for itself. (2) A competitor profitability analysis seeks to establish how profitable each competitor is and each one's cost structure. Statement (1) (2) True True True False False True False False A B C D A B C D 5. Strategic management is generally accepted as having five steps. These are (not in the correct order): 1. Establish mission and objectives; 2. Identify and assess the strategic options; and 3. Undertake a position analysis. Which is the correct order in which these three would be carried out? 2, 1, 3 2, 3, 1 3, 2, 1 3, 1, 2 1, 3, 2 1, 2, 3 6. Creating shareholder value is a four-stage process. The four stages are (not in the correct order): 1, Generate shareholder returns; 2, Set objectives; 3, Measure shareholder returns; and 4, Select an appropriate measure. Which is the correct order in which these four would be carried out? 3, 2, 4, 1 4, 1, 3, 2 2, 4, 1, 3 1, 3, 4, 2 7. The factors that generate shareholder wealth are usually called: key factors. present values. free cash flows. value drivers. 8. What does EVA® stand for? Economic value analysis Expected value arising Employee value analysis Economic value added 9. Which one of the following is not one of the four main areas of the Balanced Scorecard? Customer External business process Financial Internal business process 10. What is the validity of the following statements? (1) The information used in a competitor profitability analysis comes from a wide variety of external sources. (2) Shareholder value analysis is based on seeking to generate as high a percentage return on capital employed as possible. Statement (1) (2) True True True False False True False False A B C D A D B C 11. Which of these is not a reason why some firms do no strategic planning? a. Laziness b. Competitive leadership c. Honest difference of opinion d. Poor reward structures 12 .Developing a vision and mission, identifying an organization's external opportunities and threats, and determining internal strengths and weaknesses are all __________ activities. a. strategy-formulation b. strategy-implementation c. long-range planning d. short-range planning 13 . The means by which long-term objectives will be achieved are a. mission statements b. strategies. c. vision statements. d. long-term goals. 14. The _________ answers the question "What do we want to become?" whereas _________answers the question "What is our business?" a. vision statement; mission statement b. short-term objectives; long-term objectives c. objectives; strategies d. mission; vision 15. What is the recommended length of an effective mission statement? a. One page b. Less than 200 words c. One sentence of 10 to 20 words. d. There is no recommendation. It can be as long as the management wants. 16. __________ represents the average score in both EFE and CPM. a. 2.0 b. 3.0 c. 2.5 d. 4.0 17. All of these, except__________, are part of Porter's competitive forces in industry analysis. Strategic Management a. potential entry of new competitors b. bargaining power of suppliers c. development of substitute products d. bargaining power of union 18. __________ is based on the assumption that the future will be just like the past. [Hint] a. Delphi forecasts b. Econometric models c. Linear regression d. Scenario forecasts 19. Shorthand words use to capture a vision or to reinforce old or new values in a firm's culture are called a. Metaphors b. Sagas c. Rituals d. Symbols 20. In an IFE Matrix, the weight range is from __________ and the ratings range from _________. a. to 1.0; 1.0 to 4.0 b. to 1.0; 0.0 to 4.0 c. to 3.0; 1.0 to 2.0 d. to 4.0; 0.0 to 1.0 21. An effective information system collects, codes, stores, synthesizes, and _________ information in such a manner that it answers important operating and strategic questions. a. Prints b. Distributes c. Presents d. Filters 22. __________ is adding new, unrelated products or services for present customers. a. Concentric diversification b. Horizontal diversification c. Conglomerate diversification d. Product development 23. Two reasons for mergers and acquisitions are a. to increase managerial staff and to minimize economies of scale. b. to reduce tax obligations and increase managerial staff. c. to create seasonal trends in sales and to make better use of a new sales force. d. to provide improved capacity utilization and to gain new technology. 24. Which strategy would be effective when the new products have a counter cyclical sales pattern compared to an organization's present products? Strategic Management a. Forward integration b. Retrenchment c. Horizontal diversification d. Market penetration 25. The pie slices within the circles of a _________ reveal the percent of corporate profits contributed by each division. a. QSPM b. BCG Matrix c. SPACE Matrix d. Grand Strategy Matrix 26. All of the following are stated advantages of a divisional structure except a. it allows local control of local situations. b. it leads to a competitive climate within a firm. c. accountability is clear. d. it promotes specialization of labor. 27. The average employee performance bonus is __________ percent of pay for individual performance, _________ percent of pay for group productivity, and __________ percent of pay for company-wide profitability. a. 10.5; 5.5; 2.8 b. 6.8; 5.5; 6.4 c. 10.8; 8.5; 12.4 d. 15.4; 12.4; 10.4 28. __________ approach involves delivering parts and materials as needed rather than being stockpiled a. JIT b. MBO c. PERT d. CAD-CAM Section B: Short Answer Questions Marks: 4 marks Write a short note on the nature of strategic decisions. 2. Discuss the advantages and disadvantages of strategic management. 3. What are the steps involved in the strategic management process. 4. What are the various processes involved in strategic management? 5. What are the characteristics of a mission statement? 6. Define the term ‘business’. What are the objectives of a business? 7. Define strategic intent. 8. Define the concept of environmental scanning. 9. Why external environment analysis is neglected? 10. What environmental variables affect the environmental scanning? 11. Discuss the SWOT analysis technique. 12. Why forecasting is used as the strategy technique? 13. How Economic policy affects the business environment? 14. Briefly explain the concept of corporate level of strategy 1. 15. Give recent examples of market penetration, market development, and Product development. 16. What are the guidelines of effective strategy management? 17. State various corporate strategies 18. What are the benefits of cost leadership strategy? 19. List the conditions that support differentiation strategy. 20. List the risks associated with focus strategy. 21. Explain the methods of defensive tactics 22. How does Peter Drucker defines a business ? 23. How would you develop a set of objectives for your school (?) of business? 24. How would you develop a set of objectives for the neighbourhood Provision store? 25. How would the application of a strategy formulation framework differ from a small to a large organisation? 26. What do you think is the appropriate role of a board of directors in strategic management? Why? 27. How marketing issues are related with strategy evaluation? 28. What are financial budgets? 29. How information system is important in Strategy evaluation? 30. What are the types of strategic control? 31. Define business ethics? Section C: Long Answer Questions Marks: 12 marks each 1. Explain the activities involved in business level strategy and briefly describe The process of strategic management in Small Business Units (SBUs) 2. Explain the role of a strategist in the development and growth of the organisation. 3. What are the techniques for improving strategic decisions. 4. Explain the process of strategy formulation. 5. Define the term strategic management and explain its scope and importance. 5a) Explain BCG matrix with one example. Also mention it’s limitations. 5b) Define GE matrix and its advantages over BCG matrix. 6. Explain Mc Kinsey’s framework of the 7-S’s and describe its relevance in strategic management. 7. Mention the various levels at which strategic management can be practiced. 8. Define the term strategy and explain its scope and importance. 9. What is the importance of creating a sense of vision? 10. A Mission Statement defines the company’s business, its objectives and its approach to attain the objectives. Explain this statement. 11. What is the responsibility of a business towards various interest groups? 12. Explain how to conduct an external strategic management audit. 13. Identify a recent economic, social, political or technological trend in India That has significantly affected financial institutions. 14. “Major opportunities and threats usually result from an interaction among key environmental trends, rather than from a single external event or factor”. Discuss with suitable examples from recent events in India. 15. What are the different environmental scanning techniques? 16. Identify two industries experiencing rapid technological changes and three Industries experiencing slow or little technological change. Compare and contrast the environmental factors in these industries. 17. Use Porter’s five-forces model to evaluate competitiveness in the following Indian industries: (a) Information Technology; (b) Biotechnology; (c) Pharmaceuticals; (d) Banking; (e) Insurance and financial services; (f) Airlines; (g) Power generation, transmission and distribution. 18. Explain the concept of corporate restructuring. What do you understand by ‘corporate strategies in action.’ 19. Explain the concept of synergy. 20. Explain various strategies that an organisation can use depending on different Situations 21. Explain the importance of business level strategies. 22. How can the long-term objectives of an organisation be translated into a work structure? 23. How do we identify all the stakeholders in a business? Do this for three businesses that you are familiar with. 24. Explain in brief porter’s framework of competitive strategies. 25. Explain the location and timing tactics. 26. What do you mean by core competency? Explain it in brief. 27. Explain the process of assessing core competencies by performing an internal audit? 28. Discuss the limitations of various strategy formulation analytical techniques. 29. Explain why cultural factors should be an important consideration in analysing and choosing among alternative strategies. 30. How would profit and non-profit organisations differ in their applications of the strategy formulation framework? 31. Explain Strategic control and operational control? 32. What are the various techniques used for strategic evaluation? 33. Explain the evaluation of strategies in non-profit and Government organisations. 34. Explain the differences between strategic control and operational control. 35. Explain the BCG matrix in detail. 36. Explain the GE matrix in detail. 37. Explain the ETOP and Quest with the help of examples. 38.What is Corporate Restructuring and type of Corporate Strategies. 39.What is meant by Expansion strategy with the help of an example? 40. What is stability strategy? Explain with the help of an example.