Q #1 What is the primary goal of strategic management?
(A) Maximizing short‑term profits
(B) Achieving sustained competitive advantage
(C) Minimizing production costs
(D) Improving employee morale
Answer: (B) Achieving sustained competitive advantage
Q #2 Which framework analyzes industry attractiveness using five competitive forces?
(A) VRIO
(B) BCG Matrix
(C) Porter’s Five Forces
(D) Ansoff Matrix
Answer: (C) Porter’s Five Forces
Q #3 In a SWOT analysis, “opportunities” are classified as:
(A) Internal strengths
(B) Internal weaknesses
(C) External favorable factors
(D) External threats
Answer: (C) External favorable factors
Q #4 The resource‑based view (RBV) argues that sustainable advantage comes primarily from:
(A) Market positioning
(B) Unique internal resources and capabilities
(C) Government regulation
(D) Price leadership
Answer: (B) Unique internal resources and capabilities
Q #5 Which competitive strategy focuses on offering unique products that customers perceive as superior?
(A) Cost leadership
(B) Differentiation
(C) Focused cost leadership
(D) Harvesting
Answer: (B) Differentiation
Q #6 The BCG Matrix axis “market growth rate” represents:
(A) Internal market share
(B) External industry attractiveness
(C) Product quality
(D) Brand equity
Answer: (B) External industry attractiveness
Q #7 “Stars” in the BCG Matrix typically require:
(A) Divestment
(B) Low investment
(C) High investment to maintain position
(D) Immediate liquidation
Answer: (C) High investment to maintain position
Q #8 Ansoff’s “market development” strategy involves:
(A) New products in new markets
(B) Existing products in existing markets
(C) Existing products in new markets
(D) New products in existing markets
Answer: (C) Existing products in new markets
Q #9 A firm pursuing “vertical integration” is primarily:
(A) Expanding into unrelated industries
(B) Moving along its supply chain
(C) Forming international joint ventures
(D) Engaging in price wars
Answer: (B) Moving along its supply chain
Q #10 The “blue ocean” strategy seeks to:
(A) Compete fiercely in existing markets
(B) Create uncontested market space
(C) Imitate competitors rapidly
(D) Focus strictly on cost reduction
Answer: (B) Create uncontested market space
Q #11 In VRIO, a resource that is valuable, rare, inimitable, and organized will most likely lead to:
(A) Competitive disadvantage
(B) Competitive parity
(C) Temporary competitive advantage
(D) Sustained competitive advantage
Answer: (D) Sustained competitive advantage
Q #12 The term “core competency” was popularized by:
(A) Michael Porter
(B) Henry Mintzberg
(C) Prahalad and Hamel
(D) Alfred Chandler
Answer: (C) Prahalad and Hamel
Q #13 Scenario planning is especially useful when:
(A) The competitive environment is stable
(B) Uncertainty about the future is high
(C) Only short‑term forecasts are needed
(D) Data availability is perfect
Answer: (B) Uncertainty about the future is high
Q #14 Which growth strategy involves combining with a direct competitor?
(A) Horizontal integration
(B) Forward integration
(C) Diversification
(D) Outsourcing
Answer: (A) Horizontal integration
Q #15 A “focus” strategy emphasizes:
(A) Serving broad markets
(B) Serving a narrow segment better than rivals
(C) Simultaneously leading in cost and differentiation
(D) Deterring new entrants through patents
Answer: (B) Serving a narrow segment better than rivals
Q #16 The deliberate decision NOT to compete in certain activities is known as:
(A) Offshoring
(B) Trade‑off
(C) Benchmarking
(D) Reengineering
Answer: (B) Trade‑off
Q #17 Which element is NOT one of the balanced scorecard perspectives?
(A) Financial
(B) Customer
(C) Internal process
(D) Legal compliance
Answer: (D) Legal compliance
Q #18 “Emergent strategy” is a concept associated with:
(A) Henry Mintzberg
(B) Igor Ansoff
(C) Peter Drucker
(D) Robert Kaplan
Answer: (A) Henry Mintzberg
Q #19 The main purpose of a corporate mission statement is to:
(A) Outline detailed operational plans
(B) Describe the organization’s purpose and scope
(C) Provide quarterly earnings targets
(D) List specific job duties
Answer: (B) Describe the organization’s purpose and scope
Q #20 A strategic alliance differs from a merger because it:
(A) Creates a single new entity
(B) Maintains independence of partners
(C) Requires ownership exchange
(D) Is always long term
Answer: (B) Maintains independence of partners
Q #21 Competitive advantage that a firm holds at a single point in time is called:
(A) Static advantage
(B) Dynamic capability
(C) Hypercompetition
(D) Residual profit
Answer: (A) Static advantage
Q #22 “First‑mover advantage” can be offset by:
(A) High learning curves
(B) Fast‑follower imitation
(C) Economies of scope
(D) Technology patents
Answer: (B) Fast‑follower imitation
Q #23 Which matrix evaluates diversification fit using “related/unrelated” dimensions?
(A) GE‑McKinsey Matrix
(B) Ansoff Matrix
(C) BCG Matrix
(D) Parenting‑fit Matrix
Answer: (D) Parenting‑fit Matrix
Q #24 When a firm outsources peripheral activities to focus on its strengths, it is practicing:
(A) Conglomerate diversification
(B) Strategic disaggregation
(C) Value‑chain reconfiguration
(D) Cost leadership
Answer: (C) Value‑chain reconfiguration
Q #25 In Porter’s generic strategies, attempting to combine low cost and differentiation often leads to:
(A) Stuck‑in‑the‑middle risk
(B) Mass‑customization success
(C) Ambidextrous advantage
(D) Hypergrowth
Answer: (A) Stuck‑in‑the‑middle risk
Q #26 “Punctuated equilibrium” in strategic change suggests:
(A) Continuous incremental change only
(B) Long periods of stability interrupted by rapid change
(C) Constant disruptive innovation
(D) Linear progression of strategies
Answer: (B) Long periods of stability interrupted by rapid change
Q #27 In international strategy, “multi‑domestic” orientation prioritizes:
(A) Global standardization
(B) Local responsiveness
(C) Cost minimization
(D) Centralized R&D
Answer: (B) Local responsiveness
Q #28 A “vision statement” typically describes:
(A) Day‑to‑day procedures
(B) The desired future state of the organization
(C) Annual financial ratios
(D) Regulatory compliance rules
Answer: (B) The desired future state of the organization
Q #29 Which tool maps activities and shows how each adds value or cost?
(A) Product‑life‑cycle analysis
(B) Value chain analysis
(C) Industry segmentation
(D) TOWS Matrix
Answer: (B) Value chain analysis
Q #30 Strategic groups within an industry are identified by:
(A) Similar resource endowments
(B) Similar strategic dimensions and choices
(C) Identical product features
(D) Common ownership patterns
Answer: (B) Similar strategic dimensions and choices
Q #31 The “experience curve” illustrates the effect of cumulative production on:
(A) Market share
(B) Unit cost reduction
(C) Product quality
(D) Customer loyalty
Answer: (B) Unit cost reduction
Q #32 A defensive strategy designed to discourage hostile takeovers is called a:
(A) Blue‑chip option
(B) Ansoff hedge
(C) Poison pill
(D) Greenfield expansion
Answer: (C) Poison pill
Q #33 The term “ambidextrous organization” refers to a firm that can:
(A) Operate in both public and private sectors
(B) Balance exploration and exploitation simultaneously
(C) Maintain both low cost and high price strategies
(D) Function in multiple legal jurisdictions
Answer: (B) Balance exploration and exploitation simultaneously
Q #34 Which of the following is NOT typically a component of PESTEL analysis?
(A) Technological factors
(B) Economic factors
(C) Ethical factors
(D) Legal factors
Answer: (C) Ethical factors
Q #35 In a corporate‑level strategy, “retrenchment” usually involves:
(A) Rapid expansion into new markets
(B) Cutting back or divesting underperforming units
(C) Establishing new R&D centers
(D) Differentiating product lines
Answer: (B) Cutting back or divesting underperforming units
Q #36 The “learning organization” concept was championed by:
(A) Peter Senge
(B) Kenichi Ohmae
(C) Gary Hamel
(D) W. Edwards Deming
Answer: (A) Peter Senge
Q #37 Disruptive innovation theory was proposed by:
(A) Clayton Christensen
(B) Joseph Schumpeter
(C) Andrew Grove
(D) Thomas Friedman
Answer: (A) Clayton Christensen
Q #38 Strategic control that focuses on the fit between strategy and environment before implementation is:
(A) Premise control
(B) Concurrent control
(C) Feedback control
(D) Post‑action control
Answer: (A) Premise control
Q #39 “Corporate governance” primarily addresses the relationship between:
(A) Employees and unions
(B) Board, managers, and shareholders
(C) Suppliers and buyers
(D) Customers and regulators
Answer: (B) Board, managers, and shareholders
Q #40 A “matrix organizational structure” is characterized by:
(A) Single line of authority
(B) Dual reporting relationships
(C) Complete decentralization
(D) Functional silos only
Answer: (B) Dual reporting relationships
Q #41 Which strategy seeks growth by offering existing products to demographic segments not previously targeted?
(A) Market development
(B) Product development
(C) Horizontal diversification
(D) Retrenchment
Answer: (A) Market development
Q #42 “Strategic fit” emphasizes alignment between:
(A) Leadership style and culture
(B) Strategy and external/internal environments
(C) Corporate culture and HR policy
(D) Supply chain and IT systems
Answer: (B) Strategy and external/internal environments
Q #43 The concept of “hypercompetition” suggests that competitive advantage is:
(A) Easily sustainable
(B) Permanent in stable industries
(C) Continually eroded and temporary
(D) Independent of innovation
Answer: (C) Continually eroded and temporary
Q #44 When two firms form a new, jointly owned entity, it is called a:
(A) Licensing agreement
(B) Greenfield investment
(C) Joint venture
(D) Franchising contract
Answer: (C) Joint venture
Q #45 A strategy map in the balanced scorecard helps visualize:
(A) Core competencies only
(B) Cause‑and‑effect linkages among objectives
(C) Shareholder voting rights
(D) Cash flow projections
Answer: (B) Cause‑and‑effect linkages among objectives
Q #46 Establishing overseas facilities to serve a region from within is known as:
(A) Export strategy
(B) Licensing
(C) Greenfield investment
(D) Turnkey operation
Answer: (C) Greenfield investment
Q #47 Which analytical tool positions strategic business units along “industry attractiveness” and “competitive strength”?
(A) GE‑McKinsey Matrix
(B) ADL Matrix
(C) Porter Diamond
(D) TOWS Matrix
Answer: (A) GE‑McKinsey Matrix
Q #48 Strategic renewal that fundamentally reallocates firm resources toward new opportunities is termed:
(A) Incremental change
(B) Transformation
(C) Lock‑in
(D) Downsizing
Answer: (B) Transformation
Q #49 The “Deliberate vs. Emergent” view implies that successful strategy can result from:
(A) Only formal planning
(B) Strict top‑down directives
(C) Both planned actions and adaptive learning
(D) Random chance alone
Answer: (C) Both planned actions and adaptive learning
Q #50 Which ethical approach emphasizes balancing stakeholder interests in strategy formulation?
(A) Shareholder primacy
(B) Stewardship theory
(C) Enlightened value maximization
(D) Agency theory
Answer: (C) Enlightened value maximization