MCQs on Strategic Management

Strategic management

In the area of ​​management, strategic management involves developing the primary objectives and initiatives taken by the organization’s managers on behalf of stakeholders, based on resource considerations and an assessment of the internal and external environment in which the organization operates. And implementation is included. Strategic management involves providing the enterprise with an overall direction, setting organizational goals, developing policies and plans to achieve those goals, and allocating resources to implement the plans. increase. Scholars and practitioners have developed numerous models and frameworks to support strategic decision-making in the context of complex environments and competitive dynamics. Strategic management is not static. Models often include feedback loops to monitor execution and notify the next round of planning.

MCQs on strategic management

Q1. The strategy was developed by the visionary chief executive in which mode of strategic management?

• Planning mode

• Strategic mode

• Adaptive mode

• Entrepreneurial mode

Answer: Option D

Explanation: Strategies are developed by visionary managers in strategically managed entrepreneurial mode. In entrepreneurial mode, the strategy is primarily foresight, actively exploring new opportunities, focusing on growth, making bold decisions and changing strategies as needed. Developed by the CEO.

Q2. What type of strategy is stability strategy?

• Corporate level

• Functional level

• Strategic level

• Business level

Answer: Option A

Explanation: Stability strategies are enterprise-level strategies. A stable strategy is a company’s strategy of stopping spending on expansion, in other words, a situation where a company does not enter a new market or introduce a new product.

Q3. What type of range is the impact of strategies on the general direction and basic character of a company?

• Medium range

• Short range

• Long-rangenge

• Minimal

Answer: Option C

Explanation: The impact of strategy on the general direction and basic character of a company is widespread.

Q4. Select the statement which is much more accurate. Value 

• Means value for money

• Is described as the benefits chosen by the business to give customers through their product/service

• Is the benefits of a product/service which is perceived by the customers

• Does not offer a competitive advantage

Answer: Option C

Explanation: Value is the perceived profitability of the product/service by the customer. The value proposition is a comparison of the benefits offered by a company’s products and services with the price paid to its customers.

Q5. Which statement best applies to emergent strategies. Emergent strategy…

• Implies an ability to react to the events

• Implies strategizing

• Implies no deviation from plans

• Implies constant evaluation of the bigger picture

Answer: Option A

Explanation: emergent strategy means the ability to respond to an event. Emergent strategies are patterns of behaviour that develop over time within an organization without a specific mission and goal, or with a mission and goal. Emergent strategies are sometimes referred to as realization strategies.

Q6. Which of the following shows concern for non-profit organizations?

• The markets to service

• Identifying suppliers to deal with

• Developing capabilities

• Building monopolies

Answer: Option A

Explanation: The markets for the following services are related to non-profits. A market is the means by which the exchange of goods or services takes place, either directly or through an intermediary or institution, by contacting the buyer and seller.

Q7. The strategic management process is 

• Set of activities that are guaranteed to prevent organizational failure

• A process that is concerned with a firm’s resources, capabilities, and competencies, but not the conditions in its external environment

• A set of activities which has not been used successfully in the not-for-profit sector

• A dynamic process involving the full set of commitments, decisions, and actions related to the firm

Answer: Option D

Explanation: The strategic management process is a dynamic process that includes all commitments, decisions, and actions related to the company. The term “strategic management” refers to the development of strategic visions, the setting of goals, the formulation and implementation of strategies, and the introduction of corrective actions against deviations (if any) to achieve the strategic direction of an organization’s intent). Is used to indicate the management department involved.

Q8. Organizations require good people with appropriate skills and abilities to work together effectively to be successful. Which are the characteristics is not seen as critical for this?

• Competent

• Committed 

• Cost-effective

• Capable

Answer: Option D

Explanation: For an organization to succeed, it needs talented people with the right skills and abilities to work together effectively. Competent traits are not considered important to this. Strategic control enables employees to understand the market reaction to an organization’s products and take corrective action against the organization.

Q9. State the assumptions of Hard human resource management?

• Employees tend to be more productive when they are better informed

• Employees tend to be more productive when they are committed to the organization

• Employees are that resources can be used effectively in the search for competitive advantage

• Employees have to be trusted to make correct decisions

Answer: Option C

Explanation: Hard Human Management assumes that it is a resource that employees must effectively use to pursue their competitive advantage. Hard Human Resources Management or Hard HRM is a human resources management system that sees workers as the resources they need to manage to achieve their highest profits and competitive advantage.

Q10. Which of the following is the characteristic of human resource management?

• Managers are responsible for the employees

• Teams tend to provide increased productivity

• Managers are responsible for deploying employees

• For dealing with employees, scientific management principles and systems

Answer: Option B

Explanation: The team ensures that productivity gains are characteristic of mild human resource management. Soft Human Resources Management (HRM) is an approach to human resource management that treats employees as one of the company’s most important assets.

Q11. A possible and desirable future state of an organisation is called

• Mission

• Strategy implementation

• Strategy formulation

• Vision

Answer: Option D

Explanation: The possible desirable future state of the organization is called the vision. Vision is a future-oriented business concept. Developing a strategic vision is an exercise in thinking about where a company needs to go to be successful.

Q12. The question mark in the BCG matrix symbolizes

• Invest

• Stable 

• Liquidate

• Remain diversified

Answer: Option D

Explanation: The question mark symbolizes maintaining diversity in the BCG matrix. The BCG Growth-Share Matrix helps companies decide what to maintain, sell, or invest in. The BCG Growth-Share Matrix classifies products into four categories: dogs, cash cows, stars, and “question marks.”

Q13. Selling all of a company’s assets in parts of their tangible worth is called

• Divestiture

• Liquidation

• Concentric diversification

• Unrelated integration

Answer: Option C

Explanation: Partially selling all of a company’s assets for their significant value is known as liquidation. Liquidation in finance and economics is the process of dissolving a company and distributing its assets to the plaintiffs. This is usually an event that occurs when a company goes bankrupt. That is, the company cannot pay its debt by the due date. 

Q14. Cash cows in the BCG matrix symbolize

• Invest 

• Stable

• Liquidate

• Remain diversified

Answer: Option C

Explanation: Cash Cows symbolizes Stable in the BCG matrix. Cash cows are market leaders  and generate more cash than they use.

Q15. BCG matrix is based on

• Attractiveness of industry and business strength

• Growth of industry and business strength

• Attractiveness of industry and relative market share

• Growth rate of industry and relative market share

Answer: Option D

Explanation:  The BCG Matrix is ​​based on industry growth and relative market share. The BCG Matrix is ​​a framework developed by the Boston Consulting Group that assesses the strategic position and potential of a corporate brand portfolio.

Q16. State the guides to decision making

• Rules

• Procedures

• Goals

• Policies

Answer: Option D

Explanation: Policies are decision-making guidelines. A policy is a permanent plan that provides decision-making guidelines. They are a guide to thinking that sets limits or boundaries for which decisions must be made.

Q17. How long is the long term in strategic thinking approximately?

• 1 month to 1 year

• 2 to 3 years

• 3 to 5 years

• More than 5 years

Answer: Option D

Explanation: In strategic thinking, more than five years is long-term. Most strategic plans look ahead about three to five years.

Q18. One company buying another company means

• Joint venture

• Acquisition

• Amalgamation

• Merger

Answer: Option B 

Explanation: When a company buys another company, it means an acquisition. An acquisition is the purchase of most or all of the shares of one company in order to gain control of another.

Q19. Low cost, focus and differentiation are examples of

• Corporate strategies

• Operational strategies

• Business strategies

• Functional strategies

Answer: Option C

Explanation: Low cost, differentiation and concentration are examples of business strategies. Low-priced sellers strive to sell their products at the lowest possible prices while making a profit so that they can attract customers to the market.

Q20. How many cells are there in a SWOT matrix?

• 9

• 6

• 3

• 2

Answer: Option A

Explanation: SWOT Matrix contains nine cells in which four are key factor cells, four strategy cells and one blank cell.