Strategic Management Closed Book Examination Time Allowed Exam No Max. Marks Examiner 15 minutes 1/WMBA-II/SM 7.

5 Prashant Kumar

Marks Multi Choice Section Yes/No Section TOTAL MARKS

First Marker

Second Marker

Instructions to candidates: 15 questions @ 0.5 Marks each You should answer all questions Instructions to students 1) 2) 3) 4) 5) Select the MOST APPROPRIATE answer for each question Stop immediately when time is up You may not leave the room before the allocated time is up The answer sheet must be handed in at the end of the test If you wish to change your answer, the original answer must be clearly crossed out so that the desired answer is absolutely clear. If there is any doubt as to your desired answer, that response will receive no marks. = 7.5

1 Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis? A) Organizational strengths may not lead to competitive advantage B) SWOT gives a one-shot view of a moving target C) SWOT's focus on the external environment is too broad and integrative D) SWOT overemphasizes a single dimension of strategy 2 A marketing department that promises delivery quicker than the production department's ability to produce is an example of a lack of understanding of the A) synergy of the business units. B) need to maintain the reputation of the company. C) organizational culture and leadership. D) interrelationships among functional areas and firm strategies. 3 XYZ Corp. is centering on the objective of low-cost, high quality, on-time production by curtailing idle productive facilities and workers. The XYZ Corp. is taking advantage of a ____________ system. A) Just-In-Time (JIT) B) Last In, First Out (LIFO) C) First In, First Out (FIFO) D) Highly mechanized 4 Which of the following lists is comprised of support activities? A) Human resource management, information systems, procurement, and firm infrastructure B) Customer service, information systems, technology development, and procurement C) Human resource management, technology development, customer service, and procurement D) Human resource management, customer service, marketing and sales, and operations 5 Although firm infrastructure is quite frequently viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following except: A) negotiating and maintaining ongoing relations with regulatory bodies. B) marketing expertise increasing a firm's revenues and enabling it to enter new markets. C) effective information systems contributing significantly to a firm's overall cost leadership strategy. D) top management providing a key role in collaborating with important customers. 6 The competencies or skills that a firm employs to transform inputs into outputs are: A) tangible resources. B) intangible resources. C) organizational capabilities. D) reputational resources. 2

7 An array of firm resources includes interpersonal relations among managers in the firm, its culture, and its reputation with its customers and suppliers. Such competitive advantages are based upon A) physical uniqueness. B) path dependency. C) social complexity. D) tangible resources. 8 A company's ability to meet its short-term financial obligations is measured by which of the following categories? A) liquidity ratios B) profitability ratios C) activity ratios D) leverage ratios 9 The "balanced scorecard" supplies top managers with a _____________ view of the business. A) long-term financial B) detailed and complex C) simple and routine D) fast but comprehensive Anything that a firm does especially well compared to rival firms is referred to as: A. B. C. D. competitive advantage. comparative advantage. an external opportunity. opportunity cost

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11. __________ are the individuals who are most responsible for the success or failure of an organization. A. Strategists B. Consultants C. Operatives D. Ethics Officers 12. The action stage of strategic management is called strategy formulation. A. True B. False

13. Which of the following statements regarding strategy formulation and strategy implementation is the most accurate? A. Neither strategy formulation, nor strategy implementation can succeed without the other. 3

B. Strategy formulation is more important than strategy implementation. C. Strategy implementation is more important than strategy formulation. D. Neither strategy formulation, nor strategy implantation can have a significant impact on firm performance. 14. Which one is not a part of strategy formulation? A. Business level strategy B. Corporate level strategy C. competitive dynamics D. Corporate governance

15. The process of conducting research and gathering and assimilating external information is called: A. mission development B. long range planning C. industry analysis D. lobbying