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Strategic Management mgt603Today Paper 05-12-2010

Subjective

Explain concentric diversification strategy with the help of two examples of local or

multinational firms operating in Pakistan?

1. List down and explain five steps that comprise an effective framework for

conducting an EFE Matrix.

Objectives

1. Which of the following is often considered the first step in

strategic planning?

Devising a mission statement

Developing a vision statement P; 6

Setting annual objectives

Formulating set of strategies

2. The objectives set by a manager should have which of the

following characteristics?

Should spell out how fast the company's strategy is to beimplementedShould be challenging and congruent among organizationalunits P; 9Should include long-range performance targets but not short-rangetargets

Should include financial performance targets but not strategicperformance targets

3. Ethnic balance changes due to the migration of the people

from different areas to different areas. This affects the ethical

behavior very much, this is the effect of which of the

following forces?

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Economic forces

Social, cultural, and demographic forces P; 31

Technological forces

Competitive forces

4. 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

http://www.thefreedictionary.com/antitrust+legislation

5. Supplier bargaining power is not likely to pose strong

competitive pressure when which of the following situation is

prevailing?

Buying firms are looking for suppliers with superior just-in-timesupply capabilities and low prices

The suppliers furnish a critical part or component that is in relativelyshort supply Buying firms collaborate closely with their key suppliers to achievemutual benefits The products of alternative suppliers are highly differentiated,making the cost of switching relatively high

6. In Porter's Five Forces, the 'threat of new entrants' relates

to which factor?

Barriers to entry Substitutes

Switching cost

Buyer power

http://www.investopedia.com/features/industryhandbook/porter.asp

http://www.thefreedictionary.com/antitrust+legislationhttp://www.investopedia.com/features/industryhandbook/porter.asphttp://www.thefreedictionary.com/antitrust+legislationhttp://www.investopedia.com/features/industryhandbook/porter.asp

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7. Which of these strategies is effective when the number of

suppliers is small and the number of competitors is large?Conglomerate diversificationForward integration

Backward integration p; 82Horizontal diversification

8. Which of the following should be created first and foremost

by a strategist?

Strategy

Objectives

Vision

Mission

9. A mission statement should reconcile interests amongdiverse stakeholders. What does it mean?

All shareholders must be satisfiedShareholders should be given preference over customersFirm will devote attention to meeting claims of variousstakeholdersFirm will devote its attention towards the maximization ofshareholders valueA good mission statement indicates the relative attention that an

organization will devote to meeting the claims of various stakeholders

10. Which strategy would be effective when the stockholdersof a firm can minimize their losses by selling the organizationsassets?

Liquidation P; 95 Integration Differentiation Diversification

11. As managers move up the organization, they performwhich of the management function more?

Leading Controlling Organizing Planning

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12 . All of the following statements are true about a firmsmission statement EXCEPT:

A mission statement directly contributes positively to financialperformance P25

A mission statement does not directly contribute positively to financialperformanceA mission statement should not provide useful criteria for selectingamong alternative strategiesPrimary reason to develop a mission statement is not to attract thecustomers

13. Which one variable falls under the category of the Social,Cultural, Demographic, and Environmental Variable?

Propensity of people to spend

Buying habits P34Level of disposable incomeIncome differences by region

14. Which of the following is a collection of firms that offerssimilar products or services such as IBM, Apple, and Dell

ConcentrationIndustryCorporationAlliances

An industry can be defined as a group of companies offering productsor services that are close substitutes for each other

15. The business strategy decided upon by ABC Corporation isone that engages it in production of goods that are low incost as compared to its competitors. ABC Company isperusing which one of the following strategy?

Differentiation strategy

Focus strategyNiche strategyCost leadership strategy (see topic p85)

16. Which of the following can be considered as a factor ofinternal strengths and weaknesses of an organization?

Technological changes

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Production/operations p; 8 Demographics Competitive trends

17. Smoothies Tire & Rubber Co. is selling its North American

tire business to Avinza International, is an example of whichtype of strategy?

Related diversificationRetrenchmentDivestitureLiquidation

18. Which of the following are developed in strategyimplementation phase of strategic management?

Vision and missionAnnual objectives p; 4Strengths and weaknessesOpportunities and threats