Multiple Choice Questions On Business Strategy

Organisational Strategy - MCQs with answers
1. ________ can be defined as the determination of the basic long - term goals and
objectives of an enterprise, the adoption of courses of action and the allocation of
resources necessary for carrying out these goals..
a. Strategy
b. Strategic dimension
c. Business level strategy
d. None of the above
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ANSWER: a. Strategy
2. Which strategy will be used by an organisation that is in more than one line of
business?
a. Business level strategy
b. Contemporary strategy
c. Corporate level strategy
ANSWER: c. Corporate level strategy
3. Which of the following option is a strategic dimension?

a. Innovation
b. Cost control
c. Marketing differentiation
d. Breadth
e. All of the above

ANSWER: e. All of the above
4. Which strategy refers to the scope of the market to which the business caters?
a. Breadth strategy
b. Cost control
c. Innovation
ANSWER: a. Breadth strategy
5. Which researcher found out the classic work on the relationship between
organisation strategy and its structure?
a. Miles and Snow
b. Michael Porter
c. Alfred Chandler
ANSWER: c. Alfred Chandler
6. State true or false

i. Defenders, prospectors, Analysers and Reactors are the four types of organisations
classified by Raymond Miles and Charles Snow.
a. True
b. False
ANSWER: a. True
7. Match the following strategies with their structural characteristics

1. Defender ------------ A. High degree of formalisation
2. Analyser ------------ B. Moderately Centralised Control
3. Prospector ---------- C. Loose structure
a. 1-A,2-B,3-C
b. 1-B,2-C,3-A
c. 1-C,2-B,3-A
ANSWER: a. 1-A,2-B,3-C
8. When an organisation sets out to be the low cost producer in its industry, it follows
a __________.
a. Differentiation strategy
b. Focus strategy
c. Low cost leadership strategy
ANSWER: c. Low cost leadership strategy
9. Who developed the four strategy dimension of innovation, marketing

differentiation, breadth and cost - control?
a. Danny Miller
b. Michael Porter
c. Chandler
d. Raymond Miles
ANSWER: a. Danny Miller
10. Match the following strategic dimensions and challanges
1. Cost control ----------- A. To select the right range of products, services & customers
2. Market Differentiation ------------ B. To produce standardised products efficiently
3. Innovation ------------- C. To understand and cater to consumer preferences
4. Breadth ---------------- D. To understand and manage more products, customer types,
technologies and markets
a. 1-B,2-C,3-D,4-A
b. 1-C,2-B,3-A,4-D
c. 1-B,2-C,3-A,4-D
d. 1-A,2-D,3-C,4-B
ANSWER: a. 1-B,2-C,3-D,4-A
Contemporary Issues in Organisation Theory - MCQs with

answers
1. Which of these is an external strategy of environment?
a. Lobbying
b. Recruitment
c. Rationing
d. Buffering
ANSWER: a. Lobbying
Rest all the other options are internal strategies of environment.
2. ________ entails scrutinizing the environment to identify actions by competitors,

government, unions and the like, that might impinge on the organisation's
operations.
a. Buffering
b. Boundary spanners
c. Environmental scanning
ANSWER: c. Environmental scanning
3. People who are operating at the periphery or boundary of the organisation,

performing organisational relevant tasks?
a. Recruiter
b. Boundary spanners
c. Advertiser
ANSWER: b. Boundary spanners
4. Which jobs are categorised under boundary spanners?

a. Marketing researchers
b. Lobbyists
c. All of the above
ANSWER: c. All of the above
5. ___________ reduces the possibility that the organisation's operations will be

distributed by insuring supplies &/ or absorption of outputs.
a. Buffering
b. Coopting
c. Coalescing
ANSWER: a. Buffering
6. Smoothing seeks to level out the impact of _______ in the environment.
a. Uncertainties
b. Qualms
c. Suspicions
d. Fluctuations
ANSWER: d. Fluctuations
7. From what does the contracting protects the organisation?

a. Changes in quantity or price
b. Changes in culture
c. Changes in environment
ANSWER: a. Changes in quantity or price
8. __________ is absorbing those individuals or organisations in the environment

that threaten their stability.
a. Coalescing
b. Interlocking directorate
c. Coopting
ANSWER: c. Coopting
9. State true or false.
i. Mergers are an example of coalescing.

a. True
b. False
ANSWER: a. True
10. What is the objective of planned change?

a. Training and Development
b. To keep the organisation current and viable
c. All of the above
ANSWER: b. To keep the organisation current and viable
11. Which of these is not a determinant of structural change?

a. Government regulations
b. Scarcity of labour
c. Mergers or acquisitions
d. Implementation
ANSWER: d. Implementation
12. ______________ is used to describe the choice of means by which the change
process takes place.

a. Implementation
b. Technology
c. Intervention strategies
ANSWER: c. Intervention strategies

i. Unfreezing the status, moving to a new state and refreezing are the steps in implementing
strategies in the organisation.
a. True
b. False
ANSWER: b. False
Unfreezing the status, moving to a new state and refreezing are the steps of change
process.
14. Which of these are tactics for dealing with Resistance to change?
A. Facilitation and support
B. Manipulation and co-optation
C. Education and Communication
D. Coercion
a. Both A & D
b. Both B & C
c. Both A & B
d. A, B, C, D
ANSWER: d. A, B, C, D

An organisation which is totally devoid of conflict is probably also static, apathetic and non responsive to the need for change is the traditional view.
a. True
b. False
ANSWER: b. False
Its the interactionist view of conflict.
16. Which of these is a source of organisational conflict?

a. Differences in evaluation criteria and reward systems
b. Dependence on common scarce resources
c. High horizontal differentiation
d. All of the above
ANSWER: d. All of the above
Organisation Size, Technology and Environment - MCQs with

answers - Part 1
1. Who found out that the impact of size on complexity was at a decreasing rate?
a. Blau
b. Aston
c. Chris
ANSWER: a. Blau
2. Whose findings supported the view that size affects formalization?

a. Argyris
b. Blau
c. Aston
ANSWER: c. Aston
3. Which are the two popular methods used to control the behaviour of the
employees?
a. Longitudinal analysis and independent organisation
b. Direct surveillance and formalised regulations
c. Complexity and discretion

ANSWER: b. Direct surveillance and formalised regulations
4. _________ refers to the information, equipment, techniques and processes

required to transform inputs into outputs in the organisation.
a. Size
b. Technology
c. Power - control
d. Environment
ANSWER: b. Technology
5. Who was the first one to express interest in technology?

a. Joan Woodward
b. Charles Perrow
c. James Thompson
ANSWER: a. Joan Woodward
6. Which of these is a type of technology categorised by Joan Woodward?

a. Unit
b. Mass
c. Process production
d. All of the above

7. Who defined technology as the action that an individual performs upon an object,
with or without the aid of tools or mechanical devices, in order to make some change
in that object.
a. Burns and Stalker
b. Warren Bennis
c. Charles Perrow
ANSWER: c. Charles Perrow
8. Which are the two dimension of knowledge technology as described by Charles

Perrow?
a. Interpretational bias and intensive technology
b. Task variability and problem analysability
c. Influence and industry size
ANSWER: b. Task variability and problem analysability
9. Which one of these is not a member of the technological imperative school?
a. James Thompson
b. Charles Perrow
c. Joan Woodward
ANSWER: a. James Thompson
10. Which are the three types of technologies differentiated by Thompson?

a. Long - linked Technology
b. Mediating Technology
c. Intensive Technology
d. All of the above
Organisation Size, Technology and Environment - MCQs with

answers - Part 2
1. Which technology links clients on both the input and output side of the
organisation?
a. Long - linked Technology
b. Mediating Technology
c. Intensive Technology
ANSWER: b. Mediating Technology

i. Intensive technology represents a customised response to a diverse set of contingencies.
a. True
b. False
ANSWER: a. True
3. Which of these is a multidimensional structure?

a. Environment
b. Power - Control
c. Structure
d. All of the above
ANSWER: c. Structure
4. Inconsistent results are generated by the ___________ relationship.

a. Technology and structure
b. Technology and complexity
c. Technology and formalisation
d. Technology - Centralization
ANSWER: d. Technology - Centralization
5. ________ is that part of the environment that is directly relevant to the organisation
in achieving its goals.
a. General environment
b. Specific environment
c. Actual environment
d. Perceived environment
ANSWER: b. Specific environment
6. ____________ refers to the claim that the organisation stakes out for itself with
respect to the range of products or services offered and markets served.
a. Domain
b. Suppliers
c. Customers
ANSWER: a. Domain
7. How many English and Scottish firms did Burns and Stalker study to determine
their organisational structure and managerial practice?
a. 10
b. 5
c. 20
d. 30
ANSWER: c. 20
8. Which of these is a characteristic of organic structure?

a. Formalization
b. Complex
c. Flexible
d. All of the above
ANSWER: c. Flexible
9. Which are the four kinds of environments identified by Fred Emery and Eric Trist?
a. General, specific, actual and perceived
b. Long - linked, mediating, intensive and mechanistic
c. Placid - randomised, placid - clustered, disturbed - reactive and turbulent - field
ANSWER: c. Placid - randomised, placid - clustered, disturbed - reactive and
turbulent - field

i. Paul Lawrence and Jay Lorsch are from Harvard Business School.
a. True
b. False
ANSWER: a. True
11. Lawrence and Lorsch choose firms from which of the following industries?
a. Plastic
b. Mechanical
c. Electrical
ANSWER: a. Plastic
12. Which are the 3 key dimensions to any organisations environment?

a. Capacity
b. Volatility
c. Complexity
d. All of the above

Multiple Choice Questions On Business Strategy

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Organisational Strategy - MCQs with answers

3. Which of the following option is a strategic dimension?

e. All of the above

6. State true or false

7. Match the following strategies with their structural characteristics

9. Who developed the four strategy dimension of innovation, marketing

10. Match the following strategic dimensions and challanges

Contemporary Issues in Organisation Theory - MCQs with

2. ________ entails scrutinizing the environment to identify actions by competitors,

3. People who are operating at the periphery or boundary of the organisation,

4. Which jobs are categorised under boundary spanners?

5. ___________ reduces the possibility that the organisation's operations will be

6. Smoothing seeks to level out the impact of _______ in the environment.

7. From what does the contracting protects the organisation?

8. __________ is absorbing those individuals or organisations in the environment

9. State true or false.

i. Mergers are an example of coalescing.

10. What is the objective of planned change?

11. Which of these is not a determinant of structural change?

process takes place.

13. State true or false.

15. State true or false.

16. Which of these is a source of organisational conflict?

Organisation Size, Technology and Environment - MCQs with

2. Whose findings supported the view that size affects formalization?

View Answer / Hide Answer

4. _________ refers to the information, equipment, techniques and processes

5. Who was the first one to express interest in technology?

6. Which of these is a type of technology categorised by Joan Woodward?

d. All of the above

8. Which are the two dimension of knowledge technology as described by Charles

9. Which one of these is not a member of the technological imperative school?

10. Which are the three types of technologies differentiated by Thompson?

Organisation Size, Technology and Environment - MCQs with

2. State true or false

3. Which of these is a multidimensional structure?

4. Inconsistent results are generated by the ___________ relationship.

8. Which of these is a characteristic of organic structure?

10. State true or false

12. Which are the 3 key dimensions to any organisations environment?

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