ORI : Strategy and Policy Management - Strategic Management MCQ Management.

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1. Strategy is developed by the visionary chief executive in ___________ mode of strategic management

a. planning mode
b. adaptive mode
c. strategic mode
d. entrepreneurial mode

2. stability strategy is a ____________ strategy

a. corporate level
b. business level
c. functional level
d. strategic level

3. What are the means by which long term objectives will be achieved?

a. Strategies
b. Policies
c. Strength
d. Opportunities

4. Marketing strategy is a ___________ type of strategy

a. business level
b. Growth strategy
c. corporate strategy
d. functional strategy

5. When an industry relies heavily on government contracts, which forecasts can be the most important
part of an

a. Economic
b. Competitive
c. Political
d. Multinational

ORI : Strategy and Policy Management -Strategic-Management.pdf

6. Which of the following are among the five tasks of strategic management?

a. Forming a strategic vision of what the organization's future business

b. Setting objectives

c. Deciding which objectives are high priority and which are low priority

d. Crafting a strategy to achieve the desired outcomes

e. Doing outside-in strategic thinking

 f. Implementing and executing the strategy

g. Evaluating performance, reviewing new developments, and initiating corrective adjustments

in the

organization's vision, long-term direction objectives, strategy, and/or implementation

7. The role and tasks of strategic planners and strategic planning departments in the strategic
management process should consist of

a. helping to gather and organize information that strategy-makers need.

b. doing most of the strategic analysis for line managers and helping free line managers of the
tedium of thinking strategically.

c. taking lead responsibility for strategy-making and allowing line managers to have lead
responsibility for strategy implementation (so as to better fix responsibility for results).

d. working closely with key managers to prepare a sound strategic plan to submit to the board of
directors for final approval.

e. working closely with key managers to prepare a sound strategic plan to submit to the board of
directors for final approval.

8. The advantages of first-rate strategic thinking and conscious management of the strategy-making,
strategy-implementing process include

a. helping to unify the numerous strategy-related decisions made by managers across the
organization.

b. creating a more proactive management posture and counteracting tendencies for decisions to
be reactive and defensive.

c. decreased risk of a failed strategic vision.

d. greater ability to out-innovate and out-maneuver rivals, thereby winning a sustainable

competitive advantage.

e. raising managers' consciousness regarding the winds of market change, new opportunities,
and threatening developments.

9. The managerial task of uniting the strategy-making effort from the top to the bottom of the strategy-
making pyramid involves

a. more of a bottom-up process than a top-down process.

b. gaining broad consensus for and commitment to the organization's mission and vision, long-
term direction, and objectives.

c. harmonizing the separate layers of strategy and networking them into a cohesive, coherent,
and mutually reinforcing pattern.
 d. exerting strong top-down direction-setting and strategic leadership so as to get lower-level
managers to perform their strategy-making tasks in a manner that is in accord with the
company's vision, objectives, and strategy rather than in a manner that suits departmental or
personal interests.

e. a collaborative effort on the part of all managers to set performance targets and invent
strategic actions in their respective areas of responsibility that contribute directly to overall
company objectives and strategy.

10. Important factors for company managers to consider in drawing conclusions about whether the
industry is an attractive or unattractive business to be in include:

a. whether competitive forces are likely to grow or diminish in strength.

b. the degree of uncertainty and risk in the industry's future.

c. the potential for entry/exit of major firms.

d. the company's ability to capitalize on the vulnerabilities of weaker rivals.

e. whether the company has strong competitive capabilities and is well positioned to improve its
market standing and profitability.

11. A company's strategic options for overcoming cost disadvantages in the forward (downstream) end
of its overall value chain system include

a. pressuring distributors and other forward channel allies to reduce their costs.

b. working closely with forward channel allies to alter practices and procedures in ways that
achieve mutually beneficial cost reductions.

c. integrating forward to gain better control over the costs of downstream activities. a d.
shifting to activity-based costing.

d. cutting prices enough to eliminate the cost disadvantage in the forward end of the value chain.

12. Competing in international markets poses a bigger strategy-making challenge than competing in only
the company's home market because of

a. manufacturing cost variations among countries.

b. the risks of exchange rate fluctuations.

c. variations in host government trade policies.

d. differing competitive conditions in different country markets. e. differing buyer needs and
habits from country to country.
13. Competitors in international markets can be distinguished not only by strategy differences but also
by differences in their long-term objectives and strategic intent; the most common types of strategic
intent include

a. global dominance.

b. competing on a domestic-only basis.

c. content followership.

d. long-term cross subsidization.

e. short-term cross subsidization.

f. competing only in critical markets.

g. constant offensive attack.

h. concentrating on building a stronger domestic market position but still pursuing sales in
several or many foreign markets (to boost sales and profits over what can be achieved
domestically).

14. Instilling and ingraining a company's values statement and code of ethics in company policies,
practices, and actual conduct entails such actions as

a. making them an integral part of employee training and educational programs.

b. screening out job applicants who do not exhibit compatible character traits.

c. communicating the values and ethics code to all employees and explaining compliance
procedures.

d. promptly dismissing any employee who violates the ethics code or disavows company values.

e. the CEO openly and unequivocally endorsing the values and ethics code and leading the
enforcement of ethical standards.

f. having all officers sign statements affirming their belief in the company's values and their
agreement to abide by the