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CMA Inter

Strategic Management
A N
L
JA
S H
T I
S A
CA

Study from CA Satish Jalan

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Objective Question Analysis

Choose the correct answer:

(1) Benchmarking is
(A) the analytical tool to identify high cost activities based on the 'Pareto Analysis'.
(B) the search for industries best practices that lead to superior performance.
(C) the simulation of cost reduction schemes that helps to build commitment and improvement of
actions.
(D) the process of marketing and redesigning the way a typical company works.
(E) the framework that earmarks a linkage with suppliers and customers.

(2) Successful differentiation strategy allows the company to

(A) gain buyer loyalty to its brands.
(B) charge too high a price premium.
(C) depend only on intrinsic product attributes.
(D) have product quality that exceeds buyers' needs.
(E) segment a market into distinct group of buyers. A N
L
JA
(3) The essential ingredients of Business Process Re-engineering (BPR) are
(A) continuous improvements of products, processes and technologies.
H
(B) planning for the technologies, processes and strategic partnerships etc.
S
T I
(C) fundamental re-thinking and radical redesign of business process to achieve dramatic results.
(D) generation, comparison and evolution of many ideas to find one worthy of development.
A
(E) identification and selection of lay-outs most suited for products and processes.
S
CA
(4) Marketing Research Studies are undertaken
(A) to measure brand loyalty of a class of consumers.
(B) to predict market potential of a product on a future date.
(C) to understand product-price relationship.
(D) to make out a case for revision of an existing strategy.
(E) All of the above

(5) Organisation culture is

(A) appreciation for the arts in the organisation.
(B) ability of the organization to act in a responsible manner to its employees.
(C) combination of (A) and (B) above
(D) deeper level of basic assumptions and beliefs that are shared by the members of the firm.
(E) None of the above

(6) Innovation strategy is

(A) defensive strategy
(B) offensive strategy
(C) responding to anticipating customers and market demands
(D) guerrilla strategy
(E) harvesting strategy

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(7) Board of directors has certain basic tasks as follows:

(a) To monitor plans and programs of production.
(b) To design the course of strategic options and appointment of top management.
(c) To control utilization of resources.
(d) To monitor courses of actions for marketing management.

(8) A Strategic Business Unit (SBU) is defined as a division of an organization:

(a) That helps in the marketing operation.
(b) That helps in the choice of technology.
(c) That enables managers to have better control over the resources.
(d) That helps in identifying talents and potentials of people.

(9) Mckinsey's 7-s framework consists of:

(a) Structure, Strategy, Software, Skills, Styles, Staff and Supervision
(b) Structure, Strategy, Systems, Skills, Styles, Syndication and Shared values
(c) Structure, Strategy, Systems, Skills, Steering power, Styles and Shared values
(d) Structure, Strategy, Staff, Skills, Systems, Shared values, Style
(e) None of the above

(10) What are enduring statements of purpose that distinguish one business from other similar Firms?
(a) Policies
(b) Mission statements
A N
(c) Objectives
L
JA
(d) Rules
(e) Nature of ownership

(11) Outsourcing is the

S H
T I
(a) spinning off of a value-creating activity to create a new firm.

S A
(b) selling of a value-creating activity to other firms.
(c) purchase of a value-creating activity from an external supplier.
(d) use of computers to obtain value-creating data from the Internet.

CA
(12) For an actress in Bollywood, her pretty face would be a/an
(a) Asset
(b) Strategic asset
(c) Core competency
(d) Capability
(e) All of the above

(13) Which one of the following does NOT seem to be an advantage of the strategic management?
(a) Discharges board responsibility
(b) Provides a framework for decision-making
(c) Forces an objective assessment
(d) It can be expensive

(14) Which of the following analyses 'products and businesses by market share and market growth'?
(a) SWOT Analysis
(b) BCG Matrix
(c) PEST Analysis
(d) Portfolio Analysis

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(15) Which one of the following is NOT part of the McKinsey's 7-S framework?
(a) Skills
(b) Staff
(c) Systems
(d) Supervision

(16) Which one of the following statement is NOT correct?

(a) Vision is the statement of the future.
(b) The corporate mission is the purpose or reason for its existence.
(c) Targets are formed from vision and mission statement of organizations.
(d) Goals are objectives that are scheduled for attainment during planned period.

(17) Which of the following can NOT be the called as a strength of an organization?
(a) Good Industrial relations
(b) Incentives from State Government
(c) Financially very sound
(d) Raw materials source at a distance

(18) Strategic Business Unit (SBU) structure does NOT experience one of the following as an
advantage:
(a) Higher career development opportunities

(c) High cost approach

A N
(b) Better control of categories of products manufacturing, marketing and distributions

L
(d) Help in expanding in different related and unrelated businesses

(19) A corporate strategy can be defined as JA

H
(A) A list of actions about operational planning and statement of organisation structure and control
S
system.
T I
(B) A statement of how to compete, direction of growth and method of assessing environment.

S A
(C) Abatement of organisation's activities and allocation of resources.
(D) A course of action or choice of alternatives, specifying the resources required to achieve certain

CA
stated objectives.

(20) The existence of price-wars in the airline industry in India indicates that
(A) customers are relatively weak because of the high switching costs created by frequent flyer
programmes.
(B) the industry is moving towards differentiation of services.
(C) the competitive rivalry in the industry is severe.
(D) the economic segment of the external environment has shifted, but the airline strategies have not
changed

(21) Business Process Re-engineering is

(A) eliminating loss-making process.
(B) redesigning operational processes.
(C) redesigning the product and services.
(D) recruiting the process engineers

(22) Which one or more of the following are appropriate as a judicious mix for a Product line, which is a
group of products?
(A) That are closely related.
(B) That are marketed through the same channel.
(C) That perform a similar function for being sold to the same customers.
(D) All of the above
Study from CA Satish Jalan
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(23) The Product Market matrix comprising of Strategies of Market Penetration, Market
Development, Product Development, and Diversification was first formulated by
(A) Ansoff
(B) Drucker
(C) Porter
(D) Prahlad

(24) Price fixation for the first time takes place when
(A) a company develops or acquires a new product.
(B) introducing existing product into a new geographic area or a new distribution channel.
(C) a service, the company bids for a new contract work.
(D) All of the above

(25) Offensive strategy is a strategy

(A) for small companies that consider offensive attacks in the market.
(B) for those companies that search for new inventory opportunities to create competitive
advantage.
(C) for the market leader who should attack the competitor by introducing new products that make
existing ones obsolete.
(D) for those companies who are strong in the market but not leaders and might capture a market
share from the leader.
A N
(26) The BCG growth matrix is based on the two dimensions: L
(A) Market Size and Market Share
(B) Market Size and Profit Margins JA
(C) Market Size and Competitive Intensity
S H
(D) None of the above
T I
(27) For an entrepreneur
(A) Vision is before the mission. S A
CA
(B) Mission is before the vision.
(C) Both are developed simultaneously.
(D) Vision or mission are un-important issues.

(28) Strategic analysis is concerned with stating the position of the organisation in terms of
(A) Mission, choice of market segments, product selection, financial targets and external appraisal.
(B) Mission, goals, corporate appraisal, position audit and gap analysis.
(C) Mission, goals, identification of key competitors, SWOT and environmental appraisal.
(D) Mission, targeted ROI, manpower planning and position audit.

(29) Intensity of competition is in low return industries.

(A) low
(B) non-existent
(C) high
(D) not important

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(30) Which of the following statements can be closely related with the Mission?
(A) It includes definition of products & services the organization provides.
(B) It specifies management policies towards customers and societies.
(C) It provides a roadmap to company’s future.
(D) It indicates the kind that company management is trying to create for future.

(31) Portfolio Analysis is a term used

(A) to identify what strategy is needed to maintain a strong position or improve a weak one.
(B) to find out a best alternative out of various alternatives available.
(C) to analyse products and business by market share and market growth.
(D) to make managers more adaptable to unforeseen changes.

(32) Which one of the following is NOT a role of Marketing?

(A) It helps in sustaining and improving the existing levels of employment.
(B) It helps in the economic growth of a country.
(C) It helps in the discovery of entrepreneurial talent.
(D) It diminishes potential aggregate demand and thus reduces the size of the market

(33) Which one of the following in NOT the benefit of a Vision?

(A) It helps in the creation of common identity and a shared sense of purpose.
(B) It fosters risk taking and experimentation.
(C) It fosters short-term thinking.
A N
(D) It represents integrity. L
JA
(34) The competitive position of a company’s SBU or product line can NOT be classified as one of the
following:
S H
(A) Dominant
(B) Strong
T I
(C) Favourable
(D) Volatile S A
CA
(35) The best test of a successful Strategy Implementation is
(A) whether the strategies and procedures are observed in the strategy supportive fashion.
(B) whether the structure is well-matched to strategy.
(C) whether actual organizational performance matches or exceeds the targets spelt out in the
strategic plan.
(D) whether it is made after the strategy is formulated, so that it is supportive to the strategy.

Study from CA Satish Jalan

Cost 1 & 2 |FM |OM SM
SCM |SFM |SPM BV |Cost Audit