FINAL TERM EXAMINATION
Spring 2010
MGT603- Strategic Management
Question No: 1 ( Marks: 1 ) - Please choose one
Strategist is an individual who is involved in the strategic management process, thus may be known as:
► Member board of director
► President
► Division manager s
► All of the given options
Ref: Strategists have various job titles, such as chief executive officer, president, and owner, chair of the board, executive director, chancellor, dean, or entrepreneur.
Question No: 2 ( Marks: 1 ) - Please choose one
The objectives set by a manager should have which of the following characteristics?
► Should spell out how fast the company's strategy is to be implemented
► Should be challenging and congruent among organizational units
► Should include long-range performance targets but not short-range targets
► Should include financial performance targets but not strategic performance targets
. Ref: Objectives should be quantitative, measurable, realistic, understandable, challenging, hierarchical, obtainable, and congruent among organizational units.
Question No: 3 ( Marks: 1 ) - Please choose one
Which of the following is TRUE about anti-trust legislation?
► The is the law intended to protect the ozone layer in the environment
► This is the law intended to regulate the tax rates in the economy
► This is the law intended to promote free competition in the market
► This is the law intended to regulate and register the patents
Ref: anti trust legislation where there is an effort to ban the monopolies. Some organizations think that monopolies should be banned.
Question No: 4 ( Marks: 1 ) - Please choose one
Financial ratios are helpful in analyzing the relationship between/among which of the following?
► All assets and liabilities
► Profits and costs
► All functional areas of business
► Sales and profitability
Ref: Financial ratio analysis exemplifies the complexity of relationships among the functional areas of business. A declining return on investment or profit margin ratio could be the result of ineffective marketing, poor management policies,
Question No: 5 ( Marks: 1 ) - Please choose one
Which function of management includes areas such as job design, job specification, job analysis and unity of command?
► Planning
► Motivating
► Organizing
► Leading
Ref: Organizing includes all those managerial activities that result in a structure of task and authority relationships. Specific areas include organizational design, job specialization, job descriptions, job specifications, span of the control, unity of command, coordination, job design, and job analysis.
Question No: 6 ( Marks: 1 ) - Please choose one
Distribution includes which of the following?
► Customer analysis
► Warehousing
► Advertising
► Test marketing
Ref: Distribution includes warehousing, distribution channels, distribution coverage, retail site locations, sales territories, inventory levels and location, transportation carriers, wholesaling, and retailing.
Question No: 7 ( Marks: 1 ) - Please choose one
Opportunity analysis is one of the basic functions of which one of the following?
► Computer information systems
► Marketing
► Production/operations
► Research and development
Question No: 8 ( Marks: 1 ) - Please choose one
“Max Rent-a-Car” is opening car rental shops in Wal-Mart stores, is an example of which type of strategy?
► Forward integration
► Backward integration
► Related diversification
► Unrelated diversification
Ref: Forward integration strategy refers to the transactions between the customers and firm forward integration strategy primarily to gain better control over prices charged to consumers.
Question No: 9 ( Marks: 1 ) - Please choose one
_______________ refers to a strategy of seeking ownership or increased control over a firm’s competitors.
► Conglomerate diversification
► Backward integration
► Horizontal integration
► Concentric diversification
Ref: Horizontal integration refers to a strategy of seeking ownership of or increased control over a firm's competitors.
Question No: 10 ( Marks: 1 ) - Please choose one
The company acquires or develops new products that could appeal to its current customer groups even though those new products may be technologically unrelated to the existing product lines. Which of the following best describes the statement?
► Retrenchment
► Horizontal diversification
► Market development
► Horizontal integration
Ref: Horizontal Diversification: Adding new, unrelated products or services for present customers.
Question No: 11 ( Marks: 1 ) - Please choose one
SPACE matrix has four quadrants. All of the following are SPACE Matrix quadrants EXCEPT:
► Aggressive
► Defensive
► Competitive
► Offensive
Ref: contains four-quadrant named aggressive, conservative, defensive, or competitive strategies.
