FINAL TERM EXAMINATION
Spring 2010
MGT603- Strategic Management
Question No: 12 ( Marks: 1 ) - Please choose one
Which of the following are the two internal dimensions represented on the axes of the SPACE Matrix?
► Environmental stability and industry strength
► Industry strength and competitive advantage
► Competitive advantage and financial strength
► Financial strength and environmental stability
Ref: SPACE Matrix represent two internal dimensions financial strength [FS] and competitive
advantage [CA]) and two external dimensions (environmental stability [ES] and industry strength [IS]).
Question No: 13 ( Marks: 1 ) - Please choose one
SPACE Matrix contains two types of dimensions. Which of the following are the two external dimensions to be considered in SPACE Matrix?
► Environmental stability and industry strength
► Environmental stability and competitive advantage
► Industry strength and competitive advantage
► Industry strength and Financial strength
Ref: SPACE Matrix represent two internal dimensions financial strength [FS] and competitive
advantage [CA]) and two external dimensions (environmental stability [ES] and industry strength [IS]).
Question No: 14 ( Marks: 1 ) - Please choose one
What type of strategies would you recommend when a firm’s SPACE Matrix directional vector has the coordinates (-4, -4)?
► Aggressive
► Conservative
► Competitive
► Defensive
Question No: 15 ( Marks: 1 ) - Please choose one
BCG matrix is used in matching stage of strategy formulation framework. It plots the business units along which of the following dimensions?
► Market share and industry strength
► Market share and market growth rate
► Market growth rate and competitive position
► Market growth rate and environment stability
Ref: To use the chart, corporate analysts would plot a scatter graph of their business units, ranking their relative market shares and the growth rates of their respective industries
Question No: 16 ( Marks: 1 ) - Please choose one
Business units that have low market share and are operating in slow-growing industry should choose all of the following EXCEPT:
► New investments
► Production efficiency
► Distribution efficiency
► Product innovation
Ref: They depress a profitable company's return on assets ratio, used by many investors to judge how well a company is being managed. Dogs, it is thought, should be sold off.
Question No: 17 ( Marks: 1 ) - Please choose one
When a division of an organization has a high relative market share and is in a fast-growing industry, it will be categorized as which type in BCG matrix?
► Star
► Cash cow
► Question mark
► Dog
Ref: Stars Units with a high market share in a fast-growing industry. The hope is that stars become the next cash cows.
Question No: 18 ( Marks: 1 ) - Please choose one
Which of the following is the first step in developing QSPM?
► Developing a list of the firm’s key external and internal factors
► Determining the Attractiveness Scores for each strategy
► Examine the Stage 2 matrices and identify alternative strategies
► Assigning weights to each key external and internal factor
Ref: Select a set of variables to relating to financial strength, competitive advantage, environmental
stability, and industry strength. SPACE Matrix represent two internal dimensions financial strength [FS] and competitive advantage [CA]) and two external dimensions (environmental stability [ES] and industry strength [IS]).
Question No: 19 ( Marks: 1 ) - Please choose one
Advantages of a functional organization structure would include all EXCEPT which one of the following?
► Promotes division and specialization of labor
► Promotes functional rivalry
► Promotes economic efficiency
► Promotes delegation of authority
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: 20 ( Marks: 1 ) - Please choose one
Which one of the following is the organizational structure that most of the medium-size organizations follow?
► Divisional structure
► Strategic business unit
► Functional structure
► Matrix structure
Ref: Small firms tend to be functionally structured (centralized).
Medium-size firms tend to be divisionally structured (decentralized).
Large firms tend to use an SBU (strategic business unit) or matrix structure
Question No: 21 ( Marks: 1 ) - Please choose one
A divisional structure by geographic area is most appropriate in which of the following situation?
► Organizations have similar branch facilities in dispersed areas
► Organization offers a limited number of products or services
► Organization needs strict control over product lines
► Organization has to serve a large geographic area
Ref: This type of structure can be most appropriate for organizations that have similar branch facilities located in widely dispersed areas
Question No: 22 ( Marks: 1 ) - Please choose one
Which of the following is best identified as being an adaptation of the divisional structure?
► Vertical Integration
► Strategic business units
► Joint venture
► None of the given options
