Business Policies & Strategic Management

SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

The development of long-range plans for the effective management of

Strategy
environmental opportunities and threats, in light of corporate strengths & Strategic Intent Business Policy Budget
Formulation
weakness is called as__
A1 1

“Basically, a strategy is a set of decisions-making rules for the guidance of Alfred D

Porter Mintzberg F W Taylor
organisational behaviour” This definition was given by ___ Chandler
A2 4
Means by which previously determined plans are executed is called as__ Plans Strategies Tactics Goals
A3 3

An action plan built to achieve a specific goal or set of goals within a definite
Budget Tactics Business Policy Strategy
time, while operating in an organizational framework is called as__
A4 4

___ is the study of the function and responsibilities of Senior Management, the Business
crucial problems that affect success in the total enterprise, and the decisions Budget Business Policy Business Plan
Forecast
that determine the directions of the organisation and shape of its future
A5 3

Strategic
What is a path finder for business opportunities? Business Policy Planning User SWOT analysis Budget analysis
Answer
A6 2

Strategy is a term that comes from the Greek Strategia, meaning _____ Dictatorship Generalship Commandership Chairmanship
A7 2

A party that can affect or be affected by the actions of the business as a whole is
Employee Creditor Stakeholder Customer
called as__
A8 3
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

Strategic
A semi-autonomous unit within an organization is called as__ Business Unit Branch Subsidiary sister concern

A9 1

Who provides five definitions of strategy: Plan, Ploy, Pattern, Position, Mintzberg User Alfred D
F W Taylor Porter
Perspective Answer Chandler
A10 3
The Concept of Strategy started in 1930s 1950s 1960s 1940s
A11 4

The process of building capabilities that allow a firm to create value for Strategic
Resource Scientific
customers, shareholders, and society while operating in competitive markets is management Strategic plan
management management
called as User Answer
A12 1

Strategies User
What are the means by which long term objectives will be achieved? Policies Strengths Opportunities
Answer
A13 1

The role by which an organization intends to serve its stakeholders is included in Mission
the___ Strategic Intent Business Policy Statement Vision

B1 3

Goals should be SMART. In this T stands for Time-based Tactics Truthful Tenable
B2 1

_____ includes defining the corporate mission, specifying achievable objectives, Strategic Intent Business Policy Strategy
Business Plan
developing strategy & setting policy guidelines Formulation
B3 3
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

A mental perception of the kind of environment an individual, or an organisation,

aspires to create within a broad time horizon and underlying conditions for the Objective Goal Mission Vision
actualisation of this perception is called as ___
B4 4

Top Management finalises the objectives and sends them downwards for Centralised Bottom Up Top Down Autocratic
consideration, suggestion and implementation. This is called as ___ approach Approach Approach approach
B5 3

The _____ analysis reveals opportunities and threats external Micro situational internal
B6 1
The essential purpose of the organisation, concerning particularly, why it is in
existence, the nature of businesses it is in, and the customers it seeks to serve Objectives Goal Mission Vision
B7 and satisfy is called as ___ 3

The specific Task to be performed by specific employee is called as ___ Action plan Goal Objective KRA
B8 1

____ tells us about the ultimate end results the company wants to accomplish Mission Goal Objective Vision
B9 3

The ____ analysis can identify the firm's strengths and weaknesses. Macro internal situational internal
B10 2

Low level management staff is asked to prepare the objectives and send them Centralised Bottom Up Top Down Autocratic
downwards for consideration, suggestion and alteration. This is called as ___ approach Approach Approach approach
B11 2

___ gives a picture about what an organization must get into immediately in
Strategic intent Budget Business Policy Business Plan
order to use the opportunity
B12 1
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

The ____ refers to the environment that most closely linked to the firm and international macro- micro- Social
affects the organization directly environment environment environment environment
C1 3

The external factors are generally regarded as ____ factors partly controllable uncontrollable manageable
controllable
C2 3
In "PESTEL" L stands for ____ Local Logical Legal Liberal
C3 3

The prospects of a business depend not only on its resources but also on the
environment ecology finance society
_____
C4 1

The _____ includes the customs, traditions, taboos, tastes and preferences, of customer socio-cultural Macro Consumer
people satisfaction Environment Environment Research
C5 2

___ refers to natural resource such as forest and mineral wealth, weather and Technological socio-cultural Macro Ecological
climatic conditions environment Environment Environment factors
C6 4

Gathering, filtering and analysing the information related to environment is Environment Environment Environment
Survey
called as Scrutiny Analysis Scanning
C7 4

____ refers to the innovation in the efficiency of a machinery, or manufacturing Environment Macro
Technology Research
process, raw material mix Scanning Environment
C8 3

Marketing
Aperson who buys goods and services from you is called as ___ customer Supplier Public
intermediaries
C9 1
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

According to ____ “A company’s marketing environment consists of the actors

and forces that affect the company’s ability to develop and maintain successful Porter Mintzberg F W Taylor Philip Kotler
transactions and relationships with its target customers.”
C10 4

The firms that aid the company in promoting, selling and distributing its goods to Marketing Marketing
Consultants Sales men
final buyers are called as ___ Manager intermediaries
C11 3

The person who supplies the inputs like raw materials and components to the Marketing
customer Supplier Public
company is called as ___ intermediaries
C12 2

____ include factors like the size, growth rate, age composition, sex composition, Environment Demographic Macro socio-cultural
family size, economic stratification of the population Scanning Dynamics Environment Environment
C13 2
The process by which the strategist monitors the political, economical, social,
technological, ecological, legal and international settings to determine the Environment Environment Environment
Survey
opportunities and threats to their firms and to take policy decisions is called as Scrutiny Analysis Scanning
_____
C14 3

partly
The internal factors are generally regarded as ____ factors controllable uncontrollable unmanageable
controllable
C15 2

Procuring the Right quality and Right quantity at Right Time and Right Priceis
Acquisition Outsourcing Stability Consolidation
called as ___ strategy
D1 1

The ____ strategy is a result of company efficiency, size, scale, scope and
accumulated experience focus cost leadership differentiation consolidation

D2 2

Making an organization or brand stand out by providing unique features, focus cost leadership differentiation consolidation
benefits, services or other elements of your solution is called as ___
D3 3
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A
Which strategy is designed to help a firm target a specific niche within an
focus cost leadership differentiation consolidation
D4 industry such as particular buyer group?

The ___ Strategy deals with product and process innovation and improvement. Acquisition R&D Outsourcing Innovation
D5 2

The _____ strategy provides unique features that fulfil the demands of a narrow focused focused cost
focus cost leadership
segment of market. differentiation leadership
D6 3

The _____ strategies include the plans or methods a firm may use to conduct Business Unit
Departmental Corporate level Functional level
numerous functions in operating their business level
D7 2

The _____strategies reduce the company’s level of activities growth consolidation Stability Retrenchment
D8 4

The ____ strategy fundamentally is concerned with the selection of businesses in Business Unit
Departmental Corporate level Functional level
which the company should compete level
D9 3

The _____ strategies make no change to the company’s current activities growth consolidation Stability Retrenchment
D10 3
The _____ Strategy emphasizes the improvement of operational efficiency and is
probably most appropriate when a corporation’s problems are pervasive but not
D11 yet critical. growth Turnaround Rehabilitation Stability 2

A division, product line, or other profit center that can be planned independently strategic
Department Branch Subsidiary
from the other business units of the firm is called as ___ business unit
D12 3
When a company finds itself in the worst possible situation with a poor
competitive position in an industry with few prospects, it adopts ______ sell out Turnaround Rehabilitation Liquidation
D13 strategy. 4
The _____ strategy makes sense if managements can still obtain a good price for
D14 its shareholders and the employees can keep their jobs sell out Turnaround Rehabilitation Liquidation 1
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

The ___ Strategy is a very deliberate attempt to make only incremental Pause/Proceed
growth combination Stability
improvements until a particular environmental situation changes With Caution

D15 1
A function of deciding a right product strategy, a right place strategy, a right
pricing strategy and a right promotion strategy so as to achieve customer
HR Marketing Financial Operational
satisfaction and augment the sales of the organisation is called as Strategic ____
Management
E1 2

An outline of the methods and resources required to achieve organizational Strategic

Business Model Budget Business Plan
goals within a specific target market is called as ___ marketing plan
E2 3

A strategy to use the right marketing channels, at the right time, right cost and Pricing policy Promotion Distribution Product
right place to reach the right customers to sell a product is called as ____ strategy strategy differentiation
E3 3

The application of financial techniques to strategic decisions in order to help

achieve the decision-maker's objectives is called as Strategic ____ Management HR Marketing Financial Operational
E4 3

The ____ is a business level strategy in which firms attempt to create and exploit Purchasing Promotion Product
Pricing policy
differences between their products and those offered by competitors. Strategy strategy differentiation
E5 3

The strategic issues at the____ level are related to business processes and the
Departmental Business Unit Corporate Functional
value chain.
E6 4

Communicating with the customers about the product through various activities
Purchasing Product Promotion
like advertising, personal selling, publicity, and public relations to achieve the Pricing policy
Strategy differentiation strategy
increase in demand for the product is called as ___
E7 3
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

The ____ deals with the life of a product in the market with respect to business Product life cycle Strategic
or commercial costs and sales measures Market Research Business Plan (PLC) marketing plan
E8 3

Functional level strategies involve the development and coordination of Departmental Business Unit Corporate Functional
resources through which ____ level strategies can be executed efficiently
E9 2

Strategic ____ Management aims at increasing the quality and quantity of the
R&D HR Operations Financial
output and decreasing the cost of the output.
E10 3
The _____ Strategy determines how and where a product or service is to be
manufactured, the level of vertical integration in the production process and the Financial Operation R&D HR
E11 deployment of physical resources. 2
Strategic ____ Management is a function that deals with procurement of raw
materials, management of inventory, manufacturing process and logistic
management so that the quality of the end product conforms to the goals of the
organisation and industry standards and meets the expectations of the
customers.
E12 Operations HR Marketing Financial 1

The ____ deals with obtaining the raw materials, parts and suppliers needed to Promotion Product Purchasing
Pricing policy
perform the operations functions. strategy differentiation Strategy
E13 4

The ____ is the policy by which a company determines the wholesale and retail Purchasing Promotion Product
Pricing policy
prices for its products or services Strategy strategy differentiation
E14 4
A function concerned with appointing the right staff, at the right time and right
place for a right job by giving him right training and right compensation and right
working conditions so as to attract and retain the talent is called as Strategic HR Marketing Financial Operational
____ Management
E15 1
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

The process of allocating resources to support the chosen strategies is called as Strategy Strategy Strategy
___ Evaluation Formulation Implementation Strategic Intent
F1 3

Optimum
Availability of Scarcity of abundance of
There are several difficulties in resource allocation such as demand from
resources resources resources
departments
F2 3

The _____is an Intellectual process Strategy Strategy Strategy Strategic Intent

Formulation Evaluation Implementation
F3 1
Which of the following is not a part of MCKINSEY’S Framework? Structure Systems Society Staff
F4 3

Strategy
The _____ is an Operational process. Strategy Implementatio Strategy Strategic Intent
Formulation Evaluation
n
F5 2
F6 MCKINSEY’S Framework has 7S 7D 7M 5S 1

Resources of an organisation include _____ resources human financial physical all of these
F7 4

Environmental Strategy Strategy Strategy

Which is the last step in Strategic Management? Scanning Evaluation Implementation Formulation
F8 2

Companies allocate resources by percentages Portfolio product life-cycle all of these

models charts
F9 4

Which is the first step in Strategic Management? Environmental Strategy Strategy Strategic Intent
Scanning Formulation Implementation
F10 4
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

Results of measurements over a period of time with statistically determined Economic Order
upper and lower limits are shown by ____ Quantity (EOQ) Control charts ABC analysis Reorder Point

G1 2

Comparing the actual performance with the expected performance or the pre Strategic Strategic
Strategic control Monitoring
decided standard performance is called as ___ feedback evaluation
G2 3

The point at which if stock of the material in store approaches, the store keeper Economic Order Reorder Point ABC analysis Break Even
should initiate the purchase requisition is called as ___ Quantity (EOQ) Point
G3 2

According to Pears and Robinson which of the following is not a part of strategic Implementatio Strategic Concurrent
Premise Control
control? n Control surveillance Audit
G4 4
Implementation control is a system of ongoing control of ____ performance actual projected standard expected
G5 1

The _____ is concerned with controlling and guiding efforts on behalf of the Strategy Strategy Strategy
Implementatio Formulation Strategic control
strategy as action is taking place Evaluation
n
G6 4

Economic Order
Which of the following is not a part of Operations control tools?
Quantity (EOQ) Control charts Histogram
Reorder Point

G7 3

The size of the order where the total cost is lowest is called as ___ Economic Order Reorder Level ABC analysis Reorder Point
Quantity (EOQ)

G8 1
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A
pre decided
A strategy can be evaluated by comparing the actual performance with the or expected
the performance standard A or B None of these
G9 performance 3

The ____ is designed to check systematically and continuously whether the Special Alert Implementatio Strategic
Premise Control 3
assumptions are valid or not Control n Control surveillance
G10
Resources include physical, financial and human resources essential for
1 2 3 4 1
H1 implementing plans

A ______ Top Management team may infuse desired changes for spearheading
successful strategic change
H2 Heterogeneous Homogenous Aggressive Motivated 2

Which one of the following is not a part of the Critical 7S model

H3 Strategy Style Settings Staff 3

Strategy is
The difference between strategy formulation and strategy implementation is developed by Strategy is
that: Top Strategy is customer centric
Management created by a and
Team and few but implementation
implemented by implemented is operations All of the
H4 Managers by all centric Mentioned 4
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

The Framework
has no
theoretical
The McKinsey 7-S Framework was employed by Peters and Waterman to help underpinnings at
them understand what made their 43 excellent companies worthy of the all. It is simply an
accolade. The huge sales of their book "In Search of Excellence" have resulted in ad hoc collection
the Framework being widely known and instantly recognisable. Which statement of interesting
below is true? characteristics of The 7-S There are many
organisations Framework has The Framework competing
culled from stood the test is only applicable explanations of
McKinsey of time. The to large North why some
partners and a process was American companies
bunch of smart fundamentally multinationals succeed and
people. The sound, based that formed the others don't
proof of its on common basis of the that have been
arbitrariness is sense, instinct study, and in any advanced by
the exclusion of and the views case is now academics and
GE from the line- of obsolete since so consulting
up and the fall unconventional much has companies.
from grace of people. The changed in the Peters and
one third of the eight themes world of Waterman have
'excellent' are as relevant business since done a better
companies today as they publication in job at marketing
H5 within five years. were in 1982. 1982. their ideas. 2

Under 7S framework Systems imply which of the following Set of

Recruitment IT up gradation Innovative work standardized
H6 Policy ethics procedures 2
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

Strategic management deals with

Production and All of the
H7 quality Profit and loss Business process Mentioned 3

The ''soft'' elements of the 7-S framework include all of the following EXCEPT
which?
H8 Style Shared Values Skills Systems 2

The critical 7S model was developed and created by reputed consulting firm:
H9 Mckinsey Bain & Co A T Kearney Accenture 1

A significant change in strategy calls for a complete overhaul of the Organization

structure,
systems,
Organization processes, Business None of the
H10 resources resources activities Mentioned 2

Developing a vision and mission, identifying an organization’s external

opportunities and threats, and determining internal strengths and weaknesses strategy-
are all __________ activities. strategy- implementatio long-range short-range
H11 formulation n planning planning 1

What is meant by the element of ''style'' in the 7-S framework? Whether a

The way the business is How the Why customers
business is online or company's should shop
H12 decorated. offline. managers lead. with them 3
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

The three stages of strategic management are strategy strategy strategy stratify
formulation, formulation, formulation, assessment,
strategy strategy strategy strategy
implementation, execution, and implementation, execution, and
and strategy strategy and strategy strategy
H13 execution assessment evaluation evaluation 3

Conducting research to determine internal strengths and weaknesses is

performed during which stage ofstrategic management? Implementatio
H14 Formulation n Evaluation Feedback 1

The McKinsey 7-S Framework highlights the _____ of the seven hard and soft
elements.
interconnected interchangeabili
H15 intermittence ness independence ty 2

A major part of strategy implementation is

Communicatio Resource
I1 Planning n Allocation Monitoring 3

It provides a way to bring in the people dimension in macro company analysis

without using psychological models of human behaviour. All of the
I2 Environment Society Culture Mentioned 3

Factor(s) determining HRP (Human Resource Planning)

Type & Strategy Environmental Type & quality of All of the
I3 of organisation uncertainties information Mentioned 4
Style of a company are the patterns of actions taken by members of _____ Any of the
I4 management over a period of time Top Middle Lower Mentioned 1
The benefits of a change in process are defined in terms of _______ cost savings
I5 Labour Infrastructure Production Raw Material 1
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

Three C’s affecting today’s companies are

Customer, Cost, Customer,
Competition, Competition, Competition, Customer, Cost,
I6 Change Change Cost Change 1

________ should have the ability to develop a vision to see patterns into the
future.
I7 Leaders Managers Management Workers 1

These people are charged with the responsibility of continuous screening of

performance?
Top Audit
I8 Managers Supervisors Management Committee 4

Change in culture, attitude, and mindset calls for: engagement,

involvement and Rigorous
motivation of performance Performance Organization
I9 employees appraisal benchmarking design change 4

________ and greater accountability replace formal control. None of the

I10 Self-discipline Self appraisal Both A and B Mentioned 1

Companies employ trained ________ to develop “competency models” to

identify potential leaders. All of the
I11 Consultants Psychologists Trainers Mentioned 2

Strategic management is concerned with

Short range Long range None of the
I12 planning planning Both A and B Mentioned 2
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

Drastic change
Change management is essential for strategy execution following the: in
environmental need for reduction in
and competitive resource barriers to business
I13 conditions allocation change imperatives 2

Change in company’s __________ gives rise to problems necessitating a new

_________ to be made
structure, strategy, structure, strategy,
I14 strategy structure structure strategy 2

It is used extensively in organisation and is concerned with action or

performance.
Operational Production All of the
I15 control control Quality control Mentioned 1

While scheduling a project by C.P.M. Sequence of

required time various activities
a project is for each is made
divided into activity is according to All of the
J1 various activities established their importance Mentioned 4

The artificial activity which indicates that an activity following it, cannot be
started unless the preceding activity is complete, is known as
J2 Event Dummy Free Float Constant 2
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

Pick up the correct network for the activities of pouring concrete, erection of 1.Pouring of 1.Erection of 1.Removal of 1.Pouring of
form work, removal of form work and curing of concrete from the following : Concrete form work form work concrete
2.Erection of 2.Pouring of 2.Erection of 2.Curing of
form work concrete form work concrete
3.Curing of 3.Curing of 3.Pouring of 3.Erection of
concrete concrete concrete, form work
4.Removal of 4.Removal of 4.Curing of 4.Removal of
J3 form work form work concrete form work. 2

PERT analysis is based on

pessimistic All of the
J4 optimistic time time most likely time Mentioned 4

Completion of an activity on CPM network diagram, is generally known

All of the
J5 Event Node Connector Mentioned 4
The difference between the time available to do a job and the time required to
J6 do the job, is known as Event Float Duration Constraint 6

Due to increased consumption in the United States, water from the Colorado
River has not reached its natural terminus at the Sea of Cortez since 1998. The Alternative start-
global change risk associated with this type of occurrence is: up financing Major shifts in
Political and Unbalanced options like the availability
regulatory pollution crowdsourcing or natural
J7 changes. controls. micro-loans. resources. 4
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

Pick up the correct statement from the following : Programme

Programme Evaluation and
Evaluation and Review
Review Technique is Critical Path Critical Path
Technique, is not event Method is event method is event
J8 event oriented oriented oriented oriented. 1

The critical activity has None of the

J9 maximum float minimum float zero float Mentioned 3

The estimated time required to perform an activity, is known as

J10 Event Dummy Duration Float 3

A dummy activity
is artificially is represented does not All of the
J11 introduced by a dotted line consume time Mentioned 4

An activity of a
Pick up the incorrect statement from the following : project is The tail of the The head of the
denoted by an arrow indicates The arrows are arrow indicates
arrow on the net the start of the drawn to scale the end of the
J12 work activity from left to right activity 3

Critical path method is an provides a avoids delays

improvement realistic which are very
upon bar chart approach to common in bar All of the
J13 method daily problems charts Mentioned 4

For completion of a project, the critical path of the network represents

J14 minimum time maximum time maximum cost minimum cost 1
SR.NO DESCRIPTION OPTION1 OPTION2 OPTION3 OPTION4 A

The performance of a specific task in CPM, is known

J15 Dummy Event Activity Contract 3