Strategic Management and Business Policy Semester IV-Common - WK Section - A (1 mark each)

June 25, 2012

1. Question: ________ approach is based on the assumption of the need for incremental processes and the primary mode used in strategy settings. a. Managing organisational mission b. Liberalisation c. Innovation d. Quinn's incremental 2. Question: ________ capabilities becomes necessary to manage the external interface changes. a. Analysing b. Data processing c. Prescribed network d. Organisational process 3. Question: Economic cycle refers to recurring and fluctuating levels of ________ in the organisation. a. Manufacturing b. Economic activity c. Human resource d. Employees 4. Question: ________ approach is based on the assumption of the need for incremental processes and the primary mode used in strategy settings. a. Managing organisational mission b. Liberalisation c. Innovation d. Quinn's incremental 5. Question: ________ capabilities becomes necessary to manage the external interface changes. a. Analysing b. Data processing c. Prescribed network d. Organisational process 6. Question: Economic cycle refers to recurring and fluctuating levels of ________ in the organisation. a. Manufacturing b. Economic activity c. Human resource d. Employees 7. Question: Which among the following types of innovation is involved in the development of new marketing method? a. Architectural innovation
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b. Market niche innovation c. Regular innovation d. Revolutionary innovation 8. Question: Which one the following is a technical language used by a particular profession? a. Metaphor b. Jargon c. Slogan d. Out of the box thinking 9. Question: _______________ is a protective cover which eliminates work pressure and policies that might discourage creativity a. Rewards b. Buffer zones c. Preparation d. Nurturing 10.Question: Which among the following types of innovation is involved in the development of new marketing method? a. Architectural innovation b. Market niche innovation c. Regular innovation d. Revolutionary innovation 11.Question: Which one the following is a technical language used by a particular profession? a. Metaphor b. Jargon c. Slogan d. Out of the box thinking 12.Question: _______________ is a protective cover which eliminates work pressure and policies that might discourage creativity a) Rewards b) Buffer zones c) Preparation d) Nurturing 13.Question: Which one of the following processes involves selecting an appropriate partner? a. Strategic choice b. Partner assessment c. Alliance operation d. Cross functional team 14.Question: ___________ creates synergy among the various brands. a. Top management b. Board of directors c. Customer d. Co-branding
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15.Question: ___________ is the most powerful business concept that has the ability to pool two or more organisations in one project. a. Joint venture b. Technology innovation c. Employability d. External epansion 16.Question: A _____________ is an enterprise operating in different countries but is managed from one home country. a. Private firm b. Planning c. Multi National Corporation d. Government firms 17.Question: MNCs operating in different countries are subjected to numerous __________. a. Host country regulations b. Threats c. Competency d. Regression 18.Question: Some ___________ are active in more than one industrial sector. a. Global companies b. Organisations c. TNCs d. Companies 19.Question: A proper business venture ______________ product offerings by developing new technologies and utilising the resources. a. Diversifies b. Assists c. Assures d. Inhibits 20.Question: Franchising expands without much _____________ and strict quality controls. a. Certification b. Documentation c. Consultation d. Financing 21.Question: One of the factor implemented by an existing business is targeting the _______________ revenue growth. a. Quarterly b. Business c. Long-term d. Profitable 22.Question: _______________ is important to the continued success of an organisation. a. Contingency Planning b. Business Continuity Planning
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c. Business Continuity Management d. Business Continuity Policy 23.Question: _______________of organisations current BCP policy is one of methods of BCP policy. a. Research b. Review c. Analysis d. Identification 24.Question: Ability to _______________ data flow and integrity is one the benefits of Contingency planning. a. Facilitate b. Integrate c. Validate d. Analyses 25.Question: Business policy interrelates to the ____________ of the organisation. a. Resources b. Shareholders c. Objectives d. Managerial actions 26.Question: The policies are altered according to the framed ____________. a. Rules b. Decisions c. Guidelines d. Strategies 27.Question: The __________ are necessary to govern the organisation. a. Resources b. Policies c. Stakeholders d. Shareholders 28.Question: It is important to formulate policies to achieve ______________. a. Organisational goals b. Organisational behaviour c. Coordination d. Decision making 29.Question: One of the main characteristics of ____________ is innovation and risk taking. a. Corporate culture b. Statement c. Culture d. Outcome 30.Question: The ___________ is in written form and is signed and dated by the owner or person who controls the business. a. Budget b. Policy statements
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c. Resource d. Performance 31.Question: Which phenomenon refers to replacing the activities that do not contribute to the goal with the activities that lead to goal accomplishment? a. Short term arrangement b. Goal displacement c. Behavior substitution d. Sub-optimisation 32.Question: __________ guide on how the strategic activities need to be performed through top management orders, standard operating procedures, policies and rules. a. Feedforward controls b. Concurrent controls c. Feedback controls d. Operational controls 33.Question: _______________ is the process of comparing the actual performance of the organisation with the desired performance. a. Strategic control b. Strategic evaluation c. Operational control d. Synergy 34.Question: A company which is interested to develop its core competencies should create an organisational _____________ that sets goal for competence building. a. Certification b. Road map c. Mission statement d. Policy 35.Question: According to Mintzberg, hard data provides information whereas soft data provides ________________. a. Strategy b. Wisdom c. Guideline d. Process 36.Question: Checking of the decisions properly involves ________________ testing of the assumptions and thoroughly reviewing the same. a. Manual b. Software c. Methodical d. Comparative 37.Question: _______________ management is a set of functions to determine quality policy. a. Benchmarking b. Resource audit c. Quality d. Financial analysis

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38.Question: The process to formulate and implement strategy is known as _____________. a. Strategy implementation b. Strategy planning c. Strategy management d. Strategy analysis 39.Question: Value chain analysis concept was introduced by ___________. a. Michael Porter b. Prahalad c. Robert Kaplan d. Gary Hamel 40.Question: Passive management leads to the lack of proper follow-up in the __________________ phase. a. Implementation b. Planning c. Certification d. Replacement
Section - B (2 marks each)

1. Question: The advancement of the technology leads to increase in the cost of the ____________ and requires _____________ for the employees. a. Machinery and training b. Design and implementation c. Analysis and design d. Machinery and implementation 2. Question: What is strategic intelligence? a. It is the process of identifying and analysing the defined objectives of the organisation. b. It is the process of creating space for understanding the need for policy change. c. It is the process of detailed description of what the company is and assessing its sphere of operations. d. It is the process of applying the drafted policies in situations that are in compliance between the organisation and the employees. 3. Question: Which of the following is true? a. Policy does not identify the company rules. b. Procedure identifies the specific actions and explains when an action needs to be taken. c. Programme is not a concrete scheme of activities designed to accomplish a specific objective. d. Process is not intended to achieve organisational goals. 4. Question: Corporate culture is the common set of ____________, ____________ and ____________ that are accepted among organisational members. a. Goals, values and lessons b. Attitude, values and skills c. Standards, skills and resource
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d. Attitude, value and standards 5. Question: State whether the following statements are true or false. 1. EVA measures the post-strategy value of a business. 2. MVA is the market value of an organisation and the capital contributed by the shareholders and lenders. a. 1T, 2T b. 1T, 2F c. 1F, 2F d. 1F, 2T 6. Question: State whether the following statements are true or false. 1. Timely evaluations can alert the management about potential problems before the situation becomes critical. 2. Allot authority to exercise command over subordinates. a. 1T, 2T b. 1T, 2F c. 1F, 2T d. 1F, 2F 7. Question: Balance Scorecard concept was introduced by ___________ and ___________ a. Michael Porter, Gary Hamel b. Prahalad, Gary Hamel c. Robert Kaplan, David Norton d. Prahalad, Michael Porter 8. Question: Internal process perspective covers ___________ and outlines the processes to deliver ___________ objectives. a. Operational goals, customer b. Customer perspective c. Customer satisfaction, market share goals d. Financial success, shareholder 9. Question: ___________ and ____________ activities in business plays a major impact on the utilisation of resources. a. Choosing and implementing. b. Analysing and framing. c. Planning and scheduling. d. Planning and choosing. 10.Question: Choose the correct answer. According to Porters generic strategy, the organisation that succeeds in cost leadership and differentiation often has the following internal strengths. a. High level of expertise in the manufacturing process, Industry reputation for quality and innovation. b. Low level expertise and low quality products. c. The company does not possess skills in designing modules. d. Do not have expertise for industry reputation in quality and innovation. 11.Question: Which amongst the below is the correct concept of Strategy?
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a. A pattern to improve the performance over time. b. Not a framework for guiding project. c. Profit loss. d. Unrealistic goals. 12.Question: Which amongst the following is not the characteristics of core competency? a. Should provide access to a wide range of markets. b. Should be difficult for the competitors to imitate. c. Should make considerable contribution to customers. d. Should be timely. 13.Question: The National Innovation Initiative (NII) defines innovation as "The _______________ of invention and _______________, leading to the creation of social and economic value. a. Implementation, insight b. Intersection, insight c. Innovation, production d. Identification, prototyping 14.Question: Which among the following statements is true? a. Creativity and innovation can provide competitive advantage to an organisation b. Creativity discourages active interaction in the organisation c. A flexible culture prevents an organisation from responding to a rapidly changing marketplace or to new business opportunities d. Creativity increases strategic barriers 15.Question: An increasing desire of global operations requires strategic alliances to converge the __________ in many _______________ . a. Unemployment, employment sectors b. Industry, international markets c. Stakeholders, single departments d. Resources, shared resources 16.Question: State whether the following statements are true or false. 1. Contract negotiation is the process of determining the two parties realistic objectives such that a high calibre is formed in negotiating between the two organisations. 2. Strategy development is the process of combining two or more organisations to form a single organisation and achieve greater efficiencies of scale and productivity. a. 1T, 2F b. 1T, 2T c. 1F, 2T d. 1F, 2F 17.Question: Multi National Corporations help to ___________and improve ___________ in countries that are in need of development. a. Schedule and budget b. Create jobs and Technology
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c. Cost and values d. Organisation and goals 18.Question: The political risk will not be there in countries whose governments are ___________ and tend to ___________. a. Unstable, tend to change b. Hard working, stable c. Flexible, uncertain d. Stable and unchanged 19.Question: Which among the following choices are the steps for creating a marketing strategy for a business? a. Qualifying the best target markets, Resolving the financial matters b. Defining the business vision, Testing the market strategy c. Understanding the customer, Making a list of goals d. Identifying all the target markets, Identifying the tools and strategies 20.Question: Which of the following statements is correct? a. A proper business venture helps in identifying the market strategy b. A proper business venture improves distribution channels by extending market positions. c. A proper business venture helps in resolving the financial matters. d. A proper business venture helps in understanding the customer.
Section - C (4 marks each)

1. Question: Choose the correct statements from the following. 1. Organisational design and modification deals with re-engineering or modifying existing organisation according to the new policy. 2. Constituency structure is the process of marketing the policy such a way that it promotes the relationship between the beneficiaries. 3. Reviewing policy is a proposed policy which must obtain authenticity from the team implementing the policy. 4. Resource allocation is the process of allocating the resources that are supporting the implementation of policy depending on the implementation of strategy. a. 1,2,4 b. 1,2,3 c. 2,3,4 d. 1,3,4 2. Question: State whether the following statements are true or false. 1. Step four involves implementing policy change which in turn involves top level management initialising to form a policy developing team after the decision makers informs regarding the policy change. 2. Policies do not act as guidelines in framing the decisions that are vital to the directing principles of the strategic management. 3. Policies are laid down abiding to the factors of the government.

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3.

4.

5.

6.

4. Selecting the most suitable policy and evaluating the impact of policy mainly lies with the board of directors. a. 1F, 2T, 3F, 4T b. 1F, 2T, 3T, 4F c. 1T, 2F, 3T, 4F d. 1F, 2T, 3F, 3T Question: State whether the following statements are true or false. 1. Critical Success Factors are associated to the strategic goals of an organisation. 2. Critical Success Factors does not refer to main areas which ensure successful competitive performance of an organisation. 3. Identifying Critical Success Factors helps to ensure that the business is focused and thus avoids wasting effort on insignificant areas. 4. Critical Success Factors should be specific and should be communicated to everyone involved. a. 1T, 2F, 3T, 4T b. 1F, 2F, 3T, 4T c. 1T, 2T, 3F, 4F d. 1T, 2T, 3T, 4F Question: State whether the following statements are true or false. 1. Goals are statements that provide an overview about what the project should achieve. 2. Goals are not long-term targets that should be achieved in a business. 3. Goals are definable. 4. Goals are hard to measure and do not have a definite timeline. a. 1T, 2F, 3T, 4T b. 1F, 2F, 3T, 4F c. 1F, 2F, 3T, 4F d. 1T, 2T, 3F, 4T Question: State whether the following statements are true or false. 1. The strategic management process requires competent individuals to ensure its success. 2. Top management are elected by stakeholders of the organisation. 3. Profit strategy is the process of reducing the amount of investments and short term discretionary expenditures in the organisation. 4. The organisation adopts conglometric diversification when it takes up an activity that relates to the characteristics of its current business activity. a. 1F, 2T, 3T, 4T b. 1T, 2F, 3T, 4F c. 1F, 2F, 3T, 4T d. 1T, 2T, 3F, 4T Question: What is the reason for adopting vertical expansion in the organisation? a. It is adopted in the organisation when it takes over the activity to make its own supplies.

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b. It is adopted in the organisationto make a fundamental change in the current strategy and direction of the organisation. c. It is adopted to combine stability, expansion and retrenchment strategies. d. It is adopted in the organisation when it takes over the activity to expand into other geographical locations. 7. Question: State whether the following statements are true or false. 1. Procurement is one of the secondary activity. 2. Industry analysis is an examination of key aspects within an organisation's task environment. 3. Quality management aims to increase cost and reduce the quality. 4. Components of strategic management model are environmental scanning analysis, strategy formulation, strategy implementation and strategy evaluation control. a. 1T, 2T, 3T, 4T b. 1F, 2T, 3F, 4T c. 1F, 2T, 3T, 4F d. 1T, 2T, 3F, 4T 8. Question: Identify the correct statement from the following. a. Tall structure has clear progression, but flat structure has better team spirit. b. Tall structure has better team spirit whereas flat structure has lesser team spirit. c. Tall structure has clear progression but flat structure has lesser team spirit. d. Tall structure does not have clear progression whereas flat structure has better team spirit. 9. Question: State whether the statements are true or false. 1. Henry Mintzberg is a well-known generalist writer who wrote about strategy and organisational management. 2. Henry Mintzberg believes that management is about applying system to people but not human skills to systems. 3. Mintzberg stated processes, data and detachment as the reasons for planning failure. 4. Mintzberg concluded that planning is complex process to produce incoherent result. a. 1F, 2T, 3F, 4T b. 1T, 2F, 3T, 4F c. 1T, 2T, 3F, 4F d. 1F, 2F, 3T, 4T 10.Question: Which among the following information should be included in a stakeholder table? 1. Identify the different unconcealed and hidden interests of the stakeholders that could affect the objectives of the project. 2. Briefly analyse the impact of their interests on the project. 3. Brief information on how to communicate with each stakeholder 4. Specify the relative importance of each stakeholders interests. a. 2, 3 and 4
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b. 1, 2 and 3 c. 1, 2 and 4 d. 1, 3 and 4 11.Question: Which of the following sentences are true? 1. The term goal displacement is given when the activities to achieve the goals gain more importance when compared to the actual goal. 2. The three most widely used techniques for international performance evaluation are return on investment, budget analysis and historical comparisons. 3. Robert Kaplan and David Nortons approach of balanced scorecard is especially useful when the non-financial assets contribute 20 to 30 percent of a firms value. a. 2 and 3 b. 1 and 2 c. 1 and 3 d. 1, 2 and 3 12.Question: The term balanced in balanced scorecard approach indicates that the system is balanced between: 1. Financial and non-financial measures 2. Stakeholders and shareholders 3. Lagging and leading indicators 4. Internal and external performance perspectives a. 1T, 2T, 3F, 4T b. 1T, 2F, 3T, 4T c. 1T, 2T, 3T, 4F d. 1T, 2T, 3T, 4T 13.Question: State whether the following statements are true or false. 1. Policy should be not be uniform and consistent. 2. Policy should be aimed at achieving the organisational objectives. 3. Policy should be flexible to ensure that it is followed in the routine scenario. 4. Policy should be stable. a. 1F, 2T, 3T, 4T b. 1T, 2T, 3F, 4F c. 1F, 2F, 3F, 4T d. 1F, 2F, 3T, 4F 14.Question: State whether the following statements are true or false. 1. Joint venture reduces production time and helps in gaining new customers. 2. Outsourcing can be analysed by systematic scheduling of the process involved in manufacturing product without any hindrances to both the organisations. 3. The concept of outsourcing existed from the era of work specialisation. 4. Franchising is the process of setting up strategic alliances to venture into research field. a. 1F, 2T, 3F, 4T b. 1T, 2F, 3T, 4F c. 1T, 2T, 3F, 4F d. 1F, 2F, 3T, 4T
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15.Question: State whether following statements are true or false? 1. The firm identifies its potential market, locates the available resources, hire personnel, develop a marketing plan and identify retail outlets 2. The firm establishes management controls and feedback system 3. The international sales in countries cannot be generated with the help of Internet 4. Technology plays an important part in the decision making in an organisation a. 1-T, 2-T, 3-F, 4-T b. 1-F, 2-F, 3-T, 4-F c. 1-F, 2-F, 3-T, 4-T d. 1-T, 2-F, 3-F, 4-T

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