Section A

Q no.1 Objective when stated in specific terms

become
0.75 Marks
Targets
Rules
Aims
Goals

Q no.2 Large business generally devise strategies at
three levels (tick wrong one)
0.75 Marks
Company(corporate)level
Division level
Functional level
Field level

Q no.3 A good mission statement invariably includes
the firms
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Vision
Business Definition
Corporate Plan
Strategy

Q no.4 A broad term which includes goals,
procedures, rules and steps to be taken in putting a
plan into action is
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Project
Plan
Budget

Program

Q no.5 Divisional strategies flow from
0.75 Marks
Corporate strategy
Functional strategy
Government strategy
Marketing strategy

Q no.6 An Executive Assistant has a generalist
orientation and excellent communication skills. He
assists the
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CEO
Chairman
Executive Director
Company secretary

Q no.7 Good strategies give rise to good
0.75 Marks
Policies
Procedures
Tactics
Projects

Q no.8 Strategy implementation means
0.75 Marks
Resource allocation
Valuation of strategy
Control of strategy
Environmental assessment

Q no.9 Contingency planning comes into operation
due to changes in a firms
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Organisational set-up
External Environment
Board of Directors
CEOs Dismissal

Q no.10 The terms long range planning, corporate
planning and are used synonymously
0.75 Marks
Contingency Planning
Strategic Planning
Short-term Planning
Project Planning

Q no.11 The basic purpose of strategic planning
is(tick wrong one)
0.75 Marks
To protect the organization against environmental
threats
Ensure its long term survival
Enable management to combat threats
Plan day to day activities

Q no.12 The definition of business along the three
dimensions of customer groups, customer functions
and alternate technologies was given by
0.75 Marks
Abell
Glueck
Porter
Mckinsey

Q no.13 The implementation of functional policies is
the main role of
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Junior Managers
Senior Managers
Supervisors
Middle Managers

Q no.14 Implementation may involve
0.75 Marks
Possible structural changes
Detailed allocation of resources
Coordination of activities
Change the mission of the company

Q no.15 Operational planning is concerned with(tick
wrong one)
0.75 Marks
Managing the day to day affairs of the company
scheduling
Internal coordination
Long range resource allocation

Q no.16 Strategy mostly follows structure in firms
which
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Are start-ups
Have been in existence for some time
Are in export business
Implement multi-strategies

Q no.17 Planning covering a period of 3 to5 years is
referred to as
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Operational Planning
Short-term Planning
Medium term Planning
Long-term Planning

Q no.18 A matrix structure violates the principle of
0.75 Marks
Unity of command
Unity of direction
Scalar chain
Centralization

Q no.19 The functional structure promotes
0.75 Marks
Good Coordination
Narrow Specialisation
Line-staff harmony
Inefficient distribution of work

Q no.20 Steps involved in contingency plan are (tick
wrong one)
0.75 Marks
Coordination and control of activities
Assessment of risk levels
Identification of possible contingent situations
Formulation of contingency plan



Section B
Q no.1 The adaptive form of structure is referred to
as
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Entrepreneurial
Functional
Matrix
Divisional

Q no.2 Vertical integration means
0.75 Marks
Firm expanding in similar business
Expanding to unrelated business
Starting a new business
Expanding in related business

Q no.3 The gaps between potential and performance
could occur due to the following( tick the wrong one)
0.75 Marks
Heavy expenditure in R & D failing to yield results
Planned market share being achieved
Decline in profits
Deterioration in quality

Q no.4 Concentric diversification involves taking up
activity that is
0.75 Marks
Related to the existing business definition of the

firm
Unrelated to the existing business definition of the
firm
Related to the existing business definition of the
competitor
Unrelated to the existing business definition of the
competitor

Q no.5 Business firms undertake SWOT analysis to
asses the
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Internal environment
International environment
National environment
Internal and external environment

Q no.6 Is not a performance indicator
0.75 Marks
Sales volume
Return on investment
Value chain
Market share

Q no.7 Firms adopt stability strategy because
0.75 Marks
It is a conservative approach
Divestment strategy is not feasible
The environment faced is relatively stable
Advantage may accrue from the experience curve

Q no.8 Examples of performance standards include
0.75 Marks
Average sales revenue per month
Percentage of defective goods produced
Productivity of each worker
Number of holidays declared in a year

Q no.9 PESTLE analysis does not include
0.75 Marks
Legal aspects
Political aspects
People working in the company
Environmental aspects

Q no.10 Merger and acquisition strategies basically
involve
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Internal dimension of expansion
Backward integration
External dimension
Forward dimension

Q no.11 The PLC curve exhibits the relationship of
sales with respect to time as the product passes
through
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Introductory stage
Growth stage
Declining stage
All stages

Q no.12 The experience curve is a commonly used
concept in
0.75 Marks
SWOT analysis
Corporate portfolio analysis
Organisational structure analysis
Environmental analysis

Q no.13 Stars operate in a high-growth industry
and have
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High market share
Low market share
High cash generation
Low cash generation

Q no.14 Examples of sources of strength
0.75 Marks
Customer relation
Production efficiency
R & D skills
Competitors rivalry

Q no.15 The BGC matrix enables assessment of
individual businesses on the basis of industry growth
rate and
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Firms overall growth rate
Competitors growth rate
Relative market share
Industrys growth rate

Q no.16 The five forces model of competition which
helps to determine the intensity of industry
competition and profitability was developed by
0.75 Marks
Mintzberg
Porter
Kotler
Ansoff

Q no.17 In terms of product life cycle (PLC),
products in the late maturity or declining stage are
referred to as
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Stars
Dogs
Question marks
Cash cows

Q no.18 internal environmental analysis is done to
understand
0.75 Marks
Political factors
Social factors
Resources and capabilities
Competitive factors

Q no.19 The only responsibility of business is to
perform its economic functions efficiently and
provide goods and services for society and earn
maximum profits. The above view has been
propounded by which of the following luminaries:
0.75 Marks
P.F. Drucker
D.F. Abell
Adam Smith
A. Ginsberg

Q no.20 A leader ensures effective and smooth
implementation of strategy by overcoming
0.75 Marks
Line and staff conflict
Barriers to communication
Communal tension
Resistance to change



Section C
Q no.1 Capital budgeting is used by firms to allocate
resources for
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Mergers
Takeovers
Joint ventures
New projects or products

Q no.2 Liquidity ratio indicate a firms ability to
meet its short term obligations( means)
0.75 Marks
Current assets/current liabilities
Total debt/Total assets
Sales/Total assets
Sales/net fixed assets

Q no.3 statements indicating the desired strategic
future for the firm
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Purpose
Vision
Mission
Objective

Q no.4 Is not a item of 7 S framework
0.75 Marks
Structure
system
sympathy
Staff

Q no.5 In the strategic evaluation and control
process, operational control is exercised through
0.75 Marks
Momentum control
Premise control
Action control
Leap control

Q no.6 Is not part of grand strategies
0.75 Marks
Vertical integration
diversification
destabilization
Concentric diversification

Q no.7 Strategic management process include(tick
wrong one)
0.75 Marks
Strategy development
Strategy evaluation
Strategy formulation
Strategy implementation

Q no.8 The price of a product is determined by
0.75 Marks
Producer
Consumer
Retailer
Competitor

Q no.9 A firms adopts an expansion strategy
when(tick the wrong one)
0.75 Marks
Environment presents expansion opportunities
An increase in size will create competitive
advantage
It expects to derive economies of scale
Resources are required to invest in new ventures

Q no.10 Mckinseys 7 S framework denotes seven
policy areas that affect long-term organisational
success. Of these skills refers to
0.75 Marks
Managers skills in motivating employees
Workers skills in absorbing new technology
Organisational and individual capabilities
Managers skills in decision making

Q no.11 The marketing mix is said to consist of 4 Ps
i.e.; product, pricing, promotion and place. The term
place is also referred to as
0.75 Marks
Warehousing
Retailing
Distribution
Company Showroom

Q no.12 Is not a prescription of Ansoff matrix
0.75 Marks
Market penetration
Product development
Market development
Financial restructuring

Q no.13 In a firm the most important strategist
responsible for formulation and evaluation of
strategy is the
0.75 Marks
Board chairman
Executive director
CEO
SBU head

Q no.14 The management function of directing is
performed through exercise of leadership functions of
0.75 Marks
Planning and organizing
Staffing and motivating
Coordinating and communicating
Leading and motivating

Q no.15 Diversification is adopted due to following
reasons
0.75 Marks
Firms seeks growth in assets
Firm seeks flexibility in portfolio
Firm has surplus resources
Firm has no resources so I it is selling off one loss
making unit

Q no.16 Which out of these is not prescribed as a
part of Generic strategies by Porter
0.75 Marks
Cost leadership
Differentiation
Focus
Segmentation

Q no.17 Is not a point of :Threat of New Entrants
under Five Forces model
0.75 Marks
Product differentiation
Economies of scale
Capital requirement
Bargaining power of suppliers

Q no.18 Frito lays acquiring another potato chip
manufacturing unit is an example of
0.75 Marks
Divestment
Horizontal diversification
Vertical integration
Combination strategy

Q no.19 Tick the wrong one: Under TOWS matrix
0.75 Marks
SO strategy prescribe :use strength to advantage of
opportunities
ST strategy prescribes use strength to avoid threat
WO strategy prescribe be use of opportunities by
overcoming weakness
WT strategy prescribe use strength to overcome
threats

Q no.20 7 S framework was suggested by
0.75 Marks
Mckinsey
FW Taylor
Henry Fayol
Adam smith




Section D
Q no.1 Strategy operates at three levels: Corporate,
divisional / SBU and
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Regional
Functional
Plant
Local

Q no.2 Is not a Form of diversification
0.75 Marks
Diagonal diversification
Concentric diversification

Conglomerate diversification
Vertical integration

Q no.3 The retrenchment strategy is implemented
when(tick the wrong one)
0.75 Marks
The firm wants to acquire new resources
The sale is not picking up
Product has declined due to PLC
Firm has no interest in continuing

Q no.4 Is not a portfolio analysis technique
0.75 Marks
SWOT matrix
BCG matrix
GE Matrix
Hofers product market evaluation matrix

Q no.5 Is not a stage in Product life cycle
0.75 Marks
Growth
introduction
diversification
maturing

Q no.6 Is not a quardrantt of BCG matrix
0.75 Marks
STAR
LION
DOG
COW

Q no.7 In the Porters five force model we dont
consider
0.75 Marks
Bargaining power of supplier
Bargaining power of buyers
Bargaining power of government
Threat of subsitutes

Q no.8 In value chain concept support activities are
(tick the wrong one)
0.75 Marks
Firm infrastructure
Human resources management
procurement
operations

Q no.9 Tick the wrong one(in BCG Matrix)
0.75 Marks
Star is high growth high market share
Dog is low growth low market share
Cow is high market share high growth
Question mark is low share high growth segment

Q no.10 SWOT means
0.75 Marks
Strength, weakness, opportunity, threats
Strength, worship, opportunity, threats
Strength, weakness, opposition, threats
Strength, weakness, opportunity, turnover

Q no.11 Managerial attitude towards risk involves 3
postures(tick the wrong one)
0.75 Marks
Risk neutraliser
Risk averter
Risk taker
Risk posers

Q no.12 Strategy implementation process consist of
0.75 Marks
Management orientation
Structural aspects
Functional aspects
Cultural aspects

Q no.13 The various methods employed for
allocation of resources are
0.75 Marks
BCG model
Capital budgeting
GE model
Zero based budgeting

Q no.14 Strategy implementation does not consider
0.75 Marks
Structure
Control
planning
Culture of the organization

Q no.15 Kurt lewin has suggested three stages for
overcoming resistance to change
0.75 Marks
Unfreezing
changing
refreezing
defreezing

Q no.16 An effective control system results in (tick
the wrong one)
0.75 Marks
Removes conflict among staff members
Improves operational efficiency
Facilitates management of change
Develops common culture with the firm

Q no.17 Is not a type of strategic control
0.75 Marks
Premise control
Implementation control
Strategic alert control
Sales control

Q no.18 Structuring an Organization consist of
0.75 Marks
Listing of activities and tasks
Bringing in people
Assigning task to people
Not allowing group members to form teams

Q no.19 Strategic leaders (tick the wrong one)
0.75 Marks
Spell out vision of the company
Participates in analytical processes
Distance himself from the functional teams
Ready to explain the strategic intent

Q no.20 Is not a Basic structure for strategy
0.75 Marks
Entrepreneurial structure
Functional structure
People structure
Divisional structure

Section A Section B Section C Section D Section E
case study



Section E case study
Toyota is japans number one car manufacturer.Its
competitive advantages over other car manufacturers
from Japan,Europe and United states are the firms
distinctive competencies in cost reduction and high
quality materials and service. Upstream in the value
chain to bring new models to market more quickly
and cheaply,Toyota combines manufacturing and
production engineering. This eliminates mistakes in
production design and reduces cost. Designing a new
model takes only 18 months whereas many companies
take upto 30 months. Toyota designs cars with an
objective of fewer partsfewer production machines,
and faster production times. When Toyota redesigned
its Corolla model,it had 25% fewer parts, was 10%
lighter and was more feul efficient.Of the one
billiondollars necessary to design a new model and
build the plants to produce it, tools and machinery can
account for three quarters of the cost. The mastery of

Kanban,the JIT production system, provides basis of
cost reduction and customer service. NOT ONLY DO
SUPPLIERS DELIVER MATERIALS JUST IN
TIME AS NOW HAPPENS FOR MANY us
MANUFACTURERS, but the whole value chain also
works just in time. In the downstream , in the
marketing and sales,Toyota dealers use online
computers to order models directly from the factory,
A can can now be built on a five day basis.Toyota now
uses only 14 person hours to assemble a car compared
to 22 hours at Honda and Ford. Toyotas average
profit per car is 9.4% compared to GMs 3%Thus
Toyota has the advantage of being a leader and is
perceived as a high quality cars.
Q no.1 Which model by redisigned by Toyota
1.00 Marks
Maruti
Corolla
Korolla
Cortina

Q no.2 Toyota adopted
1.00 Marks
5 S
TQM
Kanban
ISO 9000

Q no.3 Toyota earned profits per car
1.00 Marks
0.08
0.094
0.034
0.14


Q no.4 Sales calls done by Toyota was supported by
1.00 Marks
Online computers
Online production staff
management
suppliers

Q no.5 Designing a new model of car at Toyota takes
1.00 Marks
12 months
15 months
18 months
30 months

Q no.6 Toyota combines
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Selling and marketing
Manufacturing and production engineering
Finance and material management
Designing and manufacturing

Q no.7 Distinctive competitive advantage of Toyota
corporation
1.00 Marks
Cost reduction and high quality materials
Best customer service and design of cars
Colour and design of cars
Delivery time.

Q no.8 Toyota is manufactured at
1.00 Marks
USA
Europe
Japan
India

Q no.9 New model Corolla was
1.00 Marks
Cheaper
Lighter and fuel efficient
Costlier than previous model
Colourful and efficient on road

Q no.10 Toyota was successful due to
1.00 Marks
Distinctive competencies in cost and high quality
material
Aggressive marketing
Low price
Costly product