Practice Test

Q1) We may define the term 'strategy' as a ................... blueprint. Show Answer

Q2) Strategic management involves the decision-making and the activities in an organization which - Show Answer

Q3) According to Chandler 'Strategic Management' is - Show Answer

Q4) According to Glueck 'Strategic Management' is set of decisions and actions which lead to the development of an effective strategy or strategies to help achieve - Show Answer

Q5) According to Hambrick 'Strategic Management' Strategic management is the formulation and implementation of the ................... taken by a company's top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. Show Answer

Q6) Strategic management involves developing the -
I. Company's vision.
II. Training of personnel.
III. Environmental scanning.
IV. Strategy formulation.
V. New software.
VI. Strategy implementation.
Select the correct answer from the options given below. Show Answer

Q7) Strategic management emphasizes the monitoring and evaluation of external opportunities and threats in the light of a company's and designing strategies for the survival and growth of the company. Show Answer

Q8) According to Chandler 'Strategic Management' is determination of the basic long-term goals and objectives of an enterprise and adoption of course of action and allocation of ................... necessary to carry out these goals. Show Answer

Q9) Arrange the process of strategic management in proper sequence -
P. Where we want to be?
Q. How can we ensure arrival?
R. How might we get there?
S. Where are we now?
T. Which way is best?
Select the correct answer from the options given below. Show Answer

Q10) Out of all the alternatives generated in the earlier stage the organization selects the best suitable alternative. This stage in strategic management process is called as - Show Answer

Q11) The strategic management process is defined as the process by which the managers are able to make a choice of a set of strategies for the organization that will enable it to accomplish - Show Answer

Q12) Strategic management - Show Answer

Q13) There are indispensable phases of every strategic management process. Show Answer

Q14) Which of the following is first phase of strategic management process? Show Answer

Q15) Environment scanning is careful monitoring of an organization’s ................... environments for detecting early signs of opportunities and threats that may influence its current and future plans. Show Answer

Q16) Which of the following is/are NOT features of business environment?
(I) Uncertainty
(II) Relativity
(III) Static Nature
Select the correct answer from the options given below. Show Answer

Q17) Which of the following describes the desired future position of the company? Show Answer

Q18) Which of these basic questions should a vision statement answer? Show Answer

Q19) Which of the following is beginning stage of strategic management process? Show Answer

Q20) A ................... defines the company’s business, its objectives and its approach to reach those objectives. Show Answer

Q21) According to Porter, what is usually the most powerful of the five competitive forces? Show Answer

Q22) Mission and Vision Statements are NOT commonly used to: ................... Show Answer

Q23) A business has absolute control in the ................... (X), whereas it has no control on the ................... (Y).
Select the correct answer from the options given below. Show Answer

Q24) What type of organizational structure do most small businesses follow? Show Answer

Q25) Which of the following contains the owner of the business, the shareholders, the managing director, the non-managers, employees, the customers, the infrastructure of the business organization, and the culture of the organization? Show Answer

Q26) We may define the term 'strategy’ as a long range blueprint of an organization’s desired -
A. Image
B. Direction
C. Destination
Select the correct answer from the options given below. Show Answer

Q27) In evaluating strategies, which one of Rumelt’s criteria for evaluating strategies, refers to the need for strategists to examine sets of trends? Show Answer

Q28) Your ................................is your ultimate goal, your ................... is how you will get there. Show Answer

Q29) Internal environment includes M's Show Answer

Q30) What can be defined as the art and science of formulating, implementing and evaluating cross functional decisions that enable an organization to achieve its objectives? Show Answer

Q31) Where you want your business to be in 10 years time. This can be termed as: ................... Show Answer

Q32) The internal factors that contribute to the business environment is/are:
1. Research and Development
2. Company Image
3. Brand Equity
4. Value System
elect the correct answer from the options given below. Show Answer

Q33) The competencies or skills that a firm employs to transform inputs into outputs are: Show Answer

Q34) ................................ may include inventions and techniques which affect the way of doing things that is, designing, producing and distributing products. Show Answer

Q35) The principles of right and wrong that are accepted by an individual or organization are what comprise. Show Answer

Q36) Individual investors are reliant on upon the organization’s managers to Show Answer

Q37) Competitor analysis involves:
(1) Identifying the actual competitors.
(2) Assessing competitors’ objectives, strategies, strengths & weaknesses, and reaction patterns.
(3) Selecting the strategies to deal with competitors.
Select the correct answer from the options given below - Show Answer

Q38) An organization has little or no control over its -
A. Internal environment,
B. Inner environment.
C. External environment.
Select the correct answer from the options given below - Show Answer

Q39) Change in company’s gives rise to problems necessitating a new ................... to be made. Show Answer

Q40) To develop caliber professionals facilitating good corporate governance is ................... of ICSI. Show Answer

Q41) To be a global leader in promoting good corporate governance is ................... of ICSI. Show Answer

Q42) The micro environment is also known as the ................... Show Answer

Q43) Feature(s) of strategy is/are: Show Answer

Q44) Formulating strategies is the job of - Show Answer

Q45) Which of the following is concerned with the overall purpose and scope of the business to meet stakeholder expectations? Show Answer

Q46) Consider following two statements.
(I) Strategic management is a bundle of tricks and magic.
(II) Strategic management is not needed in non-profit organizations.
Select the correct answer from the options given below. Show Answer

Q47) Assertion (A): Success or failure of a strategy is dependent on several extraneous factors.
Reason (R): Strategic management is much more serious affair and requires some tricks or magic.
Select the correct answer from the options given below. Show Answer

Q48) Assertion (A): Strategy is a substitute for sound, alert and responsible management.
Reason (R): Strategy can never be perfect, flawless and optimal. Strategies are goal-directed decision and actions in which capabilities and resources are matched with the opportunities and threats in the environment. A good management at the top can steer the organizations by adjusting its path on the basis of the changes in the environment.
Select the correct answer from the options given below. Show Answer

Q49) ................... is the ability to influence others to voluntarily make decisions that enhance the prospects for the organization’s long-term success while maintaining long-term financial stability. Show Answer

Q50) The ................... consists of the factors in the company's immediate environment that affects the performance and working of the company. Show Answer

Q51) ................................is concerned more with how a business competes successfully in a particular market and often described as mission statement. Show Answer

Q52) Strategic leadership refers to a manager’s potential to - Show Answer

Q53) Micro environmental factors can be described as ................... close to a business that have a direct impact
on its strategy.
Show Answer

Q54) Which of the following statement is true?
1. Strategic leaders generate organizational structure, assign resources and communicate strategic vision.
2. Strategic leaders have to work in an certain environment on various strategic issues.
3. The main purpose of strategic leadership is strategic productivity.
4. Strategist develops a short-range course of action or set of goals to align with the organization’s vision.
Select the correct answer from the options given below. Show Answer

Q55) How you will classify a Strategic Leader who clearly and quickly works through the complexity of key issues, problems and opportunities to affect actions? Show Answer

Q56) ................................ are generally more uncontrollable than micro environment factors. Show Answer

Q57) Strategic management facilitates to prepare the organization to face the future and act as - Show Answer

Q58) Strategic management serves as a corporate defense mechanism against - Show Answer

Q59) Assertion (A): Strategic management is not needed in non-profit organizations.
Reason (R): Though non-profit organizations are not working for the profit, they have to have purpose, vision and mission. They also work within the environmental forces and need to manage strategically to stay afloat to accomplish their objectives.
Select the correct answer from the options given below. Show Answer

Q60) The following factors are key drivers of globalization: ................... Show Answer

Q61) Which of the following is concerned with how each part of the business is organized to deliver the corporate and business-unit level strategic direction and is concerned with strategic decisions about choice of products, meeting needs of customers etc? Show Answer

Q62) Strategic management helps organizations to be more - Show Answer

Q63) Value system of an organization have an impact on its:
I. Objectives
II. Policies
III. Practices
IV. Profit
The correct option is - Show Answer

Q64) Who attracts, develops, and retains talent to ensure that people with the right skills and motivations to meet business needs are in the right place at the right time is called as - Show Answer

Q65) Which of the following can be treated as feature of strategy?
(1) It reflects concern to effectively mobilize resources.
(2) It maximizes chances to achieve objectives.
(3) Formulating strategies is the job of top management.
Select the correct answer from the options given below. Show Answer

Q66) Assertion (A): Developing annual objectives & short term strategies that are compatible with the selected set of long term objectives are one of the major tasks of strategic management.
Reason (R): A company's set of strategic objectives should include both short term and long term performance target. Short term objectives help to focus attention on delivering immediate performance improvements. While long term objectives represent the results expected from pursuing certain strategies.
Select the correct answer from the options given below. Show Answer

Q67) Change Driver - Show Answer

Q68) He ensures shareholder value through courageous decision-making that supports enterprise or unit-wide interest called as ................... Show Answer

Q69) You are appointed as a Strategic Manager by ABC Ltd. Being a strategic manager what should be your tasks to perform?
I. Defining the mission and goals of the organization.
II. Determining what businesses it should be in.
III. To increase the production.
IV. Allocating resources among the different businesses.
V. Discovering a new product method.
Select the correct answer from the options given below. Show Answer

Q70) A Company Secretary has to take care of the critical facets of the business Le. - Show Answer

Q71) Which core competencies are required for a Company Secretary to become effective player of strategic management?
1. Thorough knowledge of the company's business.
2. Specialist as to mathematical and statistical methods and calculation.
3. Sound knowledge of laws relating to company, capital markets, industry related etc.
4. Ability to read and write.
Select the correct answer from the options given below. Show Answer

Q72) There are mainly two types of business environment - Show Answer

Q73) Environment is complex. Which of the following supports this? Show Answer

Q74) Operational strategy focuses on issues of Show Answer

Q75) Which of the following is a characteristic of business environment? Show Answer

Q76) Micro environment is also known as - Show Answer

Q77) The Porter's Forces tool is a simple but powerful tool to evaluate the power of business. Show Answer

Q78) Micro environment has ................... influence on the business. Show Answer

Q79) According to Michael Porter, the essence of strategy formulation is Show Answer

Q80) Which of the following is element of micro environment? Show Answer

Q81) The Porter's Five Forces toolis a simple but powerful tool to evaluate the power of business. Which of the following is not one of the five? Show Answer

Q82) Assertion (A): Porter's five forces model considers new entrants as a significant source of competition.
Reason (R): New capacity and product range that the new entrants bring in throw up new competitive pressure. Bigger the new entrant, more severe the competitive effect. New entrants also place a limit on prices and affect the profitability of existing players.
Select the correct answer from the options given below. Show Answer

Q83) Business strategy focuses on: Show Answer

Q84) Porter's notion of a differentiation strategy is best described as one in which firms seek a competitive advantage: Show Answer

Q85) Which of the following is not an element of Porter's 5 Forces Model? Show Answer

Q86) Porter's Value Chain is essentially a tool for: Show Answer

Q87) In Porter's five forces model, conditions are more favourable for firms within an industry if: Show Answer

Q88) If a firm takes over a competitor then, according to Porter's 5 forces model: Show Answer

Q89) Which of the following is not a force in the Porter Five Forces model? Show Answer

Q90) Which core competencies are required for a Company Secretary to become effective player o: strategic management?
(a) Communication and professional skills, legal skills, management skills and IT skills.
(b) Updated knowledge of legal environment, financial environment & business environment.
(c) Ability to work and achieve a consensus within multidisciplinary settings.
(d) Remaining calm under pressure and not losing sight of perspective.
Select the correct answer from the options given below. Show Answer

Q91) Potential rivals will not find it difficult to enter a market where: Show Answer

Q92) According to Porter, which of the following is most important to achieving a competitive advantage? Show Answer

Q93) Identify which of the following forces does not form part of Porter's Competitive Position Analysis? Show Answer

Q94) What is likely to happen if many new businesses enter a market? Show Answer

Q95) In Porter's five forces model, what is meant by the term 'substitute'. Show Answer

Q96) According to Porter, suppliers are more able to exercise bargaining power over buyers when: Show Answer

Q97) .....................is a discipline that deals with long-term development of an organisation. Show Answer

Q98) Who described strategic management as the "determination of the basic long-term goals and objectives of an enterprise and adoption of course of action and allocation of resources necessary to carry out these goals?" Show Answer

Q99) Who described strategic management as the "set of decisions and actions which leads to the development of an effective strategy or strategies to help achieve corporate objectives?" Show Answer

Q100) Who described strategic management as the, "Strategic management involves the decision-making and the activities in an organization which has wider ramification and a long time perspective." Show Answer

Q101) Who described strategic management as, "The formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes." Show Answer

Q102) Who identified the three principles underlying strategies? Show Answer

Q103) What are the principles underlying strategy according to Michael Porters. Show Answer

Q104) Strategic management is not a ..................... but continuous process. Show Answer

Q105) It involves continuous appraisal of the .....................and .....................environment. Show Answer

Q106) The strategic management consists of different phases, which are ..................... in nature. Show Answer

Q107) Name the phases of every strategic management process. Show Answer

Q108) The phase that follows the Environment Scanning is Show Answer

Q109) The phase that follows the phase of Strategy Implementation is Show Answer

Q110) The phase where the Board of Directors and the top management reviews the current performance of the organization. Show Answer

Q111) .....................is the process of deciding about the best course of action for accomplishing organizational objectives. Show Answer

Q112) This phase implies developing decision making process, and managing the human resources. Show Answer

Q113) This is the final step of strategy management process. Show Answer

Q114) The ability to influence others to voluntarily make decisions that enhance the prospects for the organization's long-term success while maintaining long-term financial stability. Show Answer

Q115) The potential to develop the strategic vision to motivate, guide and influence his subordinates is Show Answer

Q116) Strategic leaders use .....................and .....................system for encouraging productive and quality employees. Show Answer

Q117) .....................is about creativity, resourcefulness, and preparing to assist an individual in realizing his objectives and goals. Show Answer

Q118) Functions and importance of a Strategic Leader include Show Answer

Q119) Functions and importance of a Strategic Leader include Show Answer

Q120) As a navigator, Leader Show Answer

Q121) As a Strategist, leader Show Answer

Q122) As a Entrepreneur, leader Show Answer

Q123) As a Mobilizer, leader Show Answer

Q124) As a Captivator, leader Show Answer

Q125) As a change driver, leader Show Answer

Q126) As a global thinker, leader Show Answer

Q127) As an enterprise guardian, leader Show Answer

Q128) Name the components of business environment Show Answer

Q129) Name the constituents of micro environment Show Answer

Q130) .....................and .....................of goods are the two important aspects of modern business. Show Answer

Q131) One who buy and use products and services of business. Show Answer

Q132) Who defined public as any group that has an actual or potential interest in or impact on the company's ability to achieve its objectives? Show Answer

Q133) What constitutes external environmental factors? Show Answer

Q134) What constitutes internal environmental factors? Show Answer

Q135) Internal environmental factors includes Show Answer

Q136) Who gave the five forces model of industry forces? Show Answer

Q137) The five forces model of industry given by Porter includes Show Answer

Q138) Threat of new entrants is less when Show Answer

Q139) Threat of new entrants is high when Show Answer

Q140) Suppliers have dominant bargaining power when Show Answer

Q141) Bargaining power of buyers is strong when Show Answer

Q142) Rivalry among competitors is intense when Show Answer

Q143) The sixth force affecting any industry, apart from the Porter's 5 forces model Show Answer

Q144) The best example for Complements affecting any industry Show Answer

Q145) Rearrange the steps to be followed to implement the Porter's Model:
1. Formulate strategies based on the conclusions.
2. Analyze the results and display them on a diagram.
3. Gather the information on each of the five forces Codes. Show Answer

Q146) Threat of new entry includes Show Answer

Q147) Supplier power includes Show Answer

Q148) Buyer power includes Show Answer

Q149) Rivalry among existing competitors includes Show Answer

Q150) Strategic management is a discipline that deals with ___ development of an organisation. Show Answer

Q151) Strategic management is a set of decisions and actions which leads to the development of an effective strategy or strategies to help achieve corporate objectives. Show Answer

Q152) Strategic management provides : Show Answer

Q153) Strategic Management is : Show Answer

Q154) There are ___ indispensable phases of every strategic management process Show Answer

Q155) The organisation will have to scan the internal environment for the : Show Answer

Q156) The organisation will have to scan the external environment for the : Show Answer

Q157) Which of the following statement is correct ? Show Answer

Q158) A company secretary is no more a 'Glorified Clerk' now rather he is a : Show Answer

Q159) It is essential that a Company Secretary work as a strategist and not as a simple knowledge worker Show Answer

Q160) The company secretary plays a leading role in good governance by helping the Board and its committees function effectively and in accordance with their terms of reference and best practice. Show Answer

Q161) In India, a company secretary appears before the following legal bodies : Show Answer

Q162) Component of business environment includes : Show Answer

Q163) External environment is can be sub-divided into micro environment and macro environment Show Answer

Q164) Factors affecting external environment does not include : Show Answer

Q165) Factors affecting internal environment does not include : Show Answer

Q166) Corporate culture is an important factor for determining the ___ of any company. Show Answer

Q167) Quality of human resources is an important factor for determining the ___ of any company. Show Answer

Q168) For the smooth working of a business firm good relations between management and labour unions is required. Show Answer

Q169) Porter's five forces model is analys is tool that uses five industry forces to determine the intensity of competition in an industry and its profitability level. Show Answer

Q170) Coordination between different departments and person within the organisation is called : Show Answer

Q171) Coordination between an organisation and its external environment is called : Show Answer

Q172) The 7s frame : Shared values, Strategy, structure, system, style, staff, skill is given by : Show Answer

Q173) The process of determining the major objectives in the organisation and the policies and strategies that will govern the acquisition, use and disposition of resources to achieve these objectives : Show Answer

Q174) ___ helps firm to achieve advantage by capitalising on its own strength. Show Answer

Q175) ___ decides the most effective use of the resources already located and developed a mechanism to ensure effective implementation of resources. Show Answer

Q176) ___ is the process by which individual selects a course of action among several alternatives to produce a desired result. Show Answer

Q177) Strategic management is defined as the dynamic process of formulation, implementation, evaluation and control of strategies to realise the organisations strategic intent. Show Answer

Q178) All businesses need to have the following fundamental essential elements :
(I) Strategy
(II) Management team
(III) Financial resources Show Answer

Q179) Objectives of Financial planning are :
(I) Determining capital structure
(II) Framing financial policies
(III) Determining capital appreciation Show Answer

Q180) To be financially sustainable, an organization must :
(I) Have only one source of income
(II) Have more than one way of generating income
(III) Do strategic, action and financial planning planning regularly
(IV) Have adequate financial systems Show Answer

Q181) Financial manager would not supervise on the following areas :
(I) Financial analyst
(II) Personal financial advisors
(III) Financial accounts and auditing Show Answer

Q182) Scope of financial strategy include the following :
(I) Financial decisions
(II) Investment decisions
(III) Dividend decisions
(IV) Portfolio decisions Show Answer

Q183) What makes an organization financially sustainable ?
(I) Have more than one source of income
(II) Do strategic, action and financial planning systems
(III) Have adequate financial systems
(IV) Have a good public image Show Answer

Q184) What makes an organization sustainable ?
(I) Have an adequate administrative and financial infrastructure
(II) Have a clear strategic direction
(III) Be able to scan its environment, or context to identify opportunities for its work
(IV) Be able to attract, manage and retain competent staff. Show Answer

Q185) A financial manager would play the role of ___ in areas of finance.
(I) Financial analyst
(II) Personal financial advisor
(III) Financial examiners
(IV) Budget analyst Show Answer