mgt603 Strategic Management mid term current paper 13 may 2011

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MIDTERM EXAMINATION
SPRING 2011 (SESSION 2)
12-05-2011
Question No: 1 ( Marks: 1 ) - Please choose one
All of following are the factors of organizing, except
􀂾 Job enrichment
􀂾 Unity of command
􀂾 Job design
􀂾 Job analysis
Question No: 2 ( Marks: 1 ) - Please choose one
All of the following fall under the category of ‘Process” function of production
management EXCEPT:
► Choice of technology
► Quality assurance
► Process flow analysis
► Transportation analysis
Question No: 3 ( Marks: 1 ) - Please choose one
Which component of a mission statement addresses the basic beliefs, values,
aspirations, and ethical priorities of the firm?
► Technology
► Philosophy
► Customers
► Self-concept
Question No: 4 ( Marks: 1 ) - Please choose one
“Identifying and evaluating social, political, economic, technological and competitive
trends and events”; which of the followings best describes this statement?
► Developing an effective mission statement
► Conducting an internal audit
► Performing an external audit
► Formulating strategy
Question No: 5 ( Marks: 1 ) - Please choose one
A mission statement should “reconcile interests among diverse stakeholders”. What does it mean?
► All shareholders must be satisfied
► Shareholders should be given preference over customers
► Firm will devote attention to meeting claims of various stakeholders
► Firm will devote its attention towards the maximization of shareholders value
Question No: 6 ( Marks: 1 ) - Please choose one Which of the following is sometimes referred as “the mystery approach to decision making, when subordinates are left to figure out what is happening and why”?
► Managing by hope
► Managing by extrapolation
► Managing by crisis
► Managing by subjective
Question No: 7 ( Marks: 1 ) - Please choose one Which of the following allows an organization to test alternative marketing plans and to forecast future sales of new products?
► Marketing
► Advertisement
► Test marketing
► Customer analysis
Question No: 8 ( Marks: 1 ) - Please choose one What refers to a strategy of seeking ownership of or increased control over a firm’s competitors?
► Forward integration
► Conglomerate diversification
► Backward integration
► Horizontal integration
Question No: 9 ( Marks: 1 ) - Please choose one ______________can be the most important part of an external audit for firms that depend heavily on government contracts.
􀂾 Environmental forecasts
􀂾 Demographic forecasts
􀂾 Technological forecasts
􀂾 Political forecasts
Question No: 10 ( Marks: 1 ) - Please choose one Suppose, the value of the currency of a certain country falls, what can be the affection companies in Different Industries and in Different Locations in that country respectively?
► Significant and equal
► Marginal and equal
► Significant and unequal
► Insignificant and unequal
Question No: 11 ( Marks: 1 ) - Please choose one Assigning 1 rating to a key external factor indicates that:
► Response is superior
► Response is above average
► Response is average
► Response is poor
Question No: 12 ( Marks: 1 ) - Please choose one The steps required to perform cost/benefit analysis include all BUT:
► comparing the total costs with the total benefits
► Figure out the total costs associated with a decision
► Approximation of the total benefits from the decision
► Adding the total cost and total benefit
Question No: 13 ( Marks: 1 ) - Please choose one Which of the following environment includes all those factors which affect the organization and is itself affected by the organization?
► Task environment
► Social environment
► External environment
► Internal environment
Question No: 14 ( Marks: 1 ) - Please choose one Which of the following period strategic management was considered to be cure for all problems?
􀂾 Mid 1950s to mid 1960s
􀂾 Mid 1960s to mid 1970s
􀂾 Mid 1970s to mid 1980s
􀂾 Mid 1980s to mid 1990s
Question No: 15 ( Marks: 1 ) - Please choose one
Waseem & Sons primarily want to gain control over the prices charged to consumers. What strategy will most likely be followed by Waseem & Sons?
► Market penetration
► Product development
► Forward integration
► Concentric Diversification
Question No: 16 ( Marks: 1 ) - Please choose one Which of the following is a key merit of strategic management?
► Strategic management enables an organization to be proactive
► Strategic management enables an organization to avoid the threats
► Strategic management enables an organization to defeat their competitors
► Strategic management enables an organization to foresee into the future
Question No: 17 ( Marks: 1 ) - Please choose one According to ‘Peter Drucker’, what is the prime task of strategic management?
􀂾 To develop the vision of the business
􀂾 Effectively evaluate the strategies
􀂾 To think through the overall mission of a business
􀂾 Develop alternative set of strategies
Question No: 18 ( Marks: 1 ) - Please choose one
Political variables have a significant effect on which one of the following?
􀂾 Formulation and implementation of strategy
􀂾 Formulation and evaluation of a strategy
􀂾 Implementation and evaluation of a strategy
􀂾 Formulation, implementation and evaluation of a strategy
Question No: 19 ( Marks: 1 ) - Please choose one The investment decision is also called ___________________
► Capital budgeting
► Financing decision
► Dividend decisions
► None of the mentioned options
Question No: 20 ( Marks: 1 ) - Please choose one Carefully prepared statements of vision and mission are widely recognized as
􀂾 The last step of strategic management
􀂾 Middle level steps in strategic management
􀂾 The first step in strategic management
􀂾 None of the mentioned options
Question No: 21 ( Marks: 1 ) - Please choose one Mostly large firms are initiating plans to acquire another unrelated business because it represents the most promising investment opportunity that is available to them. This type of strategic plan is known as:
► Conglomerate diversification
► Backward integration
► Concentric diversification
► Divestiture
Question No: 22 ( Marks: 1 ) - Please choose one Mergers and acquisitions are created for all of the following reasons EXCEPT:
► For gaining new technology
► For reduction of tax obligations
► For gaining economies of scale
► For increase in number of employees
Question No: 23 ( Marks: 1 ) - Please choose one What will happen to the Pakistani exports in overseas markets when there is a strong
value of rupee?
► Pakistani exports will be less expensive
► Pakistani exports will be more expensive
► Pakistani exports will be more attractive
► Pakistani exports will be desirable
Question No: 24 ( Marks: 1 ) - Please choose one Which one of the following is NOT is a basic mission of a competitive intelligence program?
► To provide a general understanding of an industry
► To provide a general understanding of a company’s competitors
► To identify industry executives who could be hired by the firm
► To identify potential moves a competitor might make that would endanger a firm
Question No: 25 ( Marks: 1 ) - Please choose one Which of the following should be created first and foremost by a strategist?
► Strategy
► Objectives
► Vision
► Mission
Question No: 26 ( Marks: 1 ) - Please choose one
Which of the following is not a component of Economic Forces?
􀂾 Demand shifts for goods/services
􀂾 Ethnic balance changing
􀂾 Income differences by region/customer
􀂾 Price fluctuations
There were 2 more questions which I forget.
Question No: 29 ( Marks: 3 )
What are strengths and weaknesses of an organization? Explain with examples.
Question No: 30 ( Marks: 3 )
Vertical integration is the degree to which the firm owns its upstream and its downstream buyers. What can be the possible benefits if the firm goes for vertical integration?
Question No: 31 ( Marks: 5 )
List down and explain five steps that comprise an effective framework for conducting an IFE Matrix.
Question No: 32 ( Marks: 5 )
Mr. Aslam is a finance manager of a firm. He is asked to prepare a financial ratio analysis. What can be the possible limitations of his analysis