TRUE OR FALSE

1. Strategic management is a set of managerial decisions and actions that determines

the long-run performance of a corporation. It includes environmental scanning,
strategy formulation, strategy implementation, and evaluation and control.
2. Strategic management is a continuous process that appraises the business and
industries in which the organization is involved; appraises its competitors; and fixes
goals to meet the entire present and future competitor’s and then reassesses each
strategy.
3. Mission statements are defined as the ends which the organization seeks to
achieve.
4. A vision is the purpose or reason for the organization’s existence.
5. A good mission statement should be long, perplexing and easy to understand.
6. One of the purposes on identifying and articulating the current strategy is to provide
an understanding of how the organization reached its present status and current
level of performance.
7. George Steiner stated that three types of data are required to perform a situation
audit, such as identifying opportunities, strengths, and weaknesses.
8. Environmental Appraisal is the process of observing an organizational internal
environment to identify the strengths and weaknesses that may influence the
organization's ability to achieve goals.
9. Organizational Appraisal is the environment of any organization is "the aggregate of
all conditions, events and influences that surround and affect it". It is dynamic and
consists of External & Internal Environment.
10. Change is a certainty, and for this reason business managers must actively engage
in a process that identifies change and modifies business activity to take best
advantage of change.
11. The strength of business competition is a constantly changing factor in the external
business environment.
12. Strategic forecasting gives a reliable information and estimation of future business.
13. Forecasting methods for producer goods are same as the producer goods
forecasting methods.
14. Corporate level strategies are formulated by the top management with outputs from
middle level management and lower level management in the formulation process
and designing of sub strategies.
15. Porter's Five Forces is a model that was published in Michael E. Porter's book,
"Competitive Strategy: Techniques for Analyzing Industries and Competitors" in
1980.
MULTIPLE QUESTIONS

1. Strategic management helps:

a. To define organization’s objectives and directions
b. To deploy the firm’s resources more pragmatically
c. Keeps all levels of management informed about changes in environment
d. Maintain records of one financial year
e. All of the above

2. External Environment consists of variables:

a. Strength and Weaknesses
b. Strength and Opportunities
c. Strength and Threats
d. Opportunities and Threats
e. Opportunities and Weaknesses

3. Which is NOT a characteristic of a mission statement?

a. Inspiring
b. Relevant
c. Unique
d. Basis for Guidance
e. Specific

4. Which is/are NOT component/s of a mission statement?

a. Basic Product or Service
b. Primary Markets
c. Secondary Technology
d. Customers
e. Both b and c

5. There is three basic questions must be asked during strategy evaluation, which is
NOT?
a. How effective has the existing strategy been?
b. How effective will that strategy be in the future?
c. What will be the effectiveness of selected alternative strategies (or changes in
the existing strategy) in the future?
d. What are the consequences?
e. All of the above
6. It refers to the process of choosing the most appropriate course of action for the
realization of organizational goals and objectives and thereby achieving the
organizational vision.

a. Strategic Analysis of the Organization

b. Strategy Formulation
c. Strategy Implementation
d. Strategic Evaluation and Control
e. Strategic Management Process

7. It is the action stage of strategic management. It refers to decisions that are made to
install new strategy or reinforce existing strategy
a. Strategic Analysis of the Organization
b. Strategy Formulation
c. Strategy Implementation
d. Strategic Evaluation and Control
e. Strategic Management Process

8. Which of the following is NOT an external environment factor in strategic planning?

a. Economy
b. Technology
c. Legal
d. Management
e. Climate

9. In doing strategic forecasting there’s factors should be considered, which of the

following is should NOT be considered.
a. Nature of the product
b. General or specific purpose factor
c. Consumer behavior
d. Policy
e. All of the above

10. All are functional areas of business EXCEPT:

a. Financial Strategy
b. Managerial Strategy
c. Production Strategy
d. Human Resource Strategy
e. Marketing Strategy
TRUE OR FALSE

1. True
2. True
3. False
4. False
5. False
6. True
7. False
8. False
9. False
10. True
11. True
12. True
13. False
14. False
15. True

MULTIPLE QUESTIONS

1. C
2. D
3. E
4. C
5. D
6. B
7. C
8. D
9. D
10. B