The purpose of diversification is _______________________
to allow the company to enter lines of business that are different from current operations.
to quit the current business and continue with the newly started business.
to change the business location.
to introduce substitute products in the existing market.
Market Penetration means ________________________
market development/geographic expansion
aggressively targeting current markets with existing product specialties
dividing existing markets
modify existing products, or develop new but related products
From the following which is the example of Conglomerate diversification type?
Coke acquires Minute Maid
Ford buys steel plant
GE diversifies into aircraft engines, medical imaging equipment, generators, nuclear reactors, finance
Avon’s move from Door-to-Door selling to selling its products by mail orders.
Economies of scope exist whenever _________________________
there are cost economies from decreasing output across multiple products
there are cost economies fromdecreasing output of a single product
there are cost economies from increasing output of a single product and decreasing output of a multiple products
there are cost savings from using a resource in multiple activities carried out in combination rather than independently
Concentric merger is defined as ________________________________
A merger in which the two companies are in the same general industry, but have no mutual buyer/customer or supplier relationship.
The merger of two companies that are in direct competition in the same industry and have similar products and markets
The merger of a customer and company or a supplier and company
The purchase of one company by another
Joint venture is defined as ____________________________
Partnering a project with an existing overseas business to gain entry into a foreign market
Contractual arrangements that gives rights to operate under another’s trademark
Selling products or services directly to customers or indirectly through agents, distributors, or trading companies
Establishing a company’s own facility with direct supervision. High cost and risk of overseas subsidiary
From the following which is a drawback of Alliances?
Shared risk
Shared knowledge & expertise
Synergy & competitive advantage
Distribution of earnings
Which of the following corporate strategy involves downsizing the company?
Liquidation
Turnaround
Divestiture
Amalgamation
Find the Operations level strategy from the following:
Responsible for determining which products to provide, how they will be packaged, how they will be advertised, where they will be sold and how they will get there and etc.
Responsible for systems processes that convert inputs into outputs.
Responsible for working with all the other functional departments in the areas of recruiting, selecting, training, evaluating, and compensating employees.
Research and development (R&D) is important to remaining competitive.
If a company decides to pursue new customers, new products & new geographic locations – Which type of integration strategy is this?
Vertical Integration
Related Integration
Horizontal Integration
Unrelated Integration
According to Mintzberg’s Five P’s of Strategy, Ploy stands for _________________
A consciously intended course of action
What worked in past can work in the future
Specific maneuvers to outsmart opponents
Influence of culture & collective thinking on organizational strategy
According to Strategic Planning Process, Which of the following is Phase 1?
Formulation - Deciding best course of action to achieve organization objectives
Development - Performing environmental scanning (SWOT)
Implementation - Putting the strategy into action by driving it through the organization
Evaluation - Is the strategy working & meeting organizational objectives?
Competitive advantage means _______________________________
creating an observable difference between products, services, and the way in which a business operates, relative to competitors
a corporate strategy to enter into a new market or industry which the business is not currently in, whilst also creating a new product for that new market.
allowing a company to expand into new end markets as well as provide a significant benefit to customers.
a characteristic, feature or opportunity that an organization possesses that will make it more attractive than its competitors
The term Mission referred as __________________________
the desired long term, future state of the organization
it clearly show why the organization exists
the standard of behavior the organization sets for itself and its staff members
the operating philosophies or principles that guide an organization's internal conduct as well as its relationship with its customers, partners, and shareholders.
Defender’s strategy in the Public sector ______________________
Find opportunities for change
Resist change
Changes only when forced
Scan the environment
Corporate Governance is referred as _____________________________
a governing body to look after only the employee affairs of an organisation
the process of how financial strategic decisions are made and controlled
the process of how important strategic decisions are made and controlled in organizations
a governing body to care for only the legal affairs of an organisation
Which of the following is an external factor of corporate governance mechanism?
Corporate Market Control
Audit Committees
Governing Board
Ownership Concentration
Find the service role of a Governing board
Allocate resources for implementation
Representing organizational interests
Corporate control
Formulate & disseminate corporate goals & policies
Recycling program is a Value creation of
Production
People
Profit
Planet
“Carbon Footprint” comes under which of the PESTLE element?
Political
Economic
Environmental
Social
“Sophistication of customers” belongs to which of the Porter’s Diamond element?
Factor Conditions
Related & Supported Industries
Demand Conditions
Strategy, Structure, & Rivalry
Which of the following is one of the vertical element of Porter’s Five forces model?
competition from substitutes
competition from entrants
competition from established rivals
the power of customers.
_________________ is a product’s performance characteristics and attributes for which customers are willing to pay.
Value
Price
Demand
Competitive Advantage
Market segments are _____________________
the group of customers segmented based on age
the group of customers segmented based on location
the groups of customers with similar criteria for buying decisions and/or similar buying behaviors
the group of customers segmented based on income level
Lifestyle and personality of customers is segmented under which of the following segmented factor?
Geographic factors
Psychological factors
Consumption patterns
Perceptual factors
One of the following is a support activity of Value chain. Find it.
Inbound logistics
Operations
Outbound logistics
Human Resource Management
Distinctive competency means ____________________
Something a company does well relative to its rivals.
Activities that an organization performs better than its other internal activities and that are most critical to competitiveness and profitability
Activities including external activities, which is beyond their capacity
Internal and external potential of an organisation
Reputation is an ____________________ resources of an organisation.
Intangible
Tangible
Human
Technological
According to VRIO framework, R means _________________________
Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?
Is control of the resource/capability in the hands of a relative few?
Is it difficult to imitate, and will there be significant cost disadvantage to a firm trying to obtain, develop, or duplicate the resource/capability?
Is the firm organized, ready, and able to exploit the resource/capability?
According to (Hamel) Leveraging Core Competencies, Restructuring is which of the following Leveraging Capability?
Being better
Being smaller
Being different
Being same
The _______________ has its own business strategy, objectives and competitors and these are often differ from parent company.
Strategic Business Unit structure
Matrix structure
Divisional structure
None of given options
__________________ as the process through which economic and social value is extracted from knowledge through the generation, development, and implementation of ideas to produce new or improved strategies, capabilities, products, services, or processes.
Discovery
Invention
Innovation
Development
_____________ is defined as Leveraging the variance between actual reality and perceived or assumed reality, which is one among the sources of innovation.
New knowledge
The incongruity
Industry or market structure changes
Changes in perception, mood and meaning.
Establishing reliability of new processes is __________________ innovation.
Product
Process
Superior access to information and Overreacting to new information is _____________ type of market setting.
Efficient
Consumer
Trading
Low market penetration is ________________ evolutionary business cycle phase.
Introduction
Growth
Maturity
Decline
“ What is the mission and vision of the company? ” is which level of strategy ?
Business Level
Functional Level
Network Level
Corporate Level
____________ type of corporate level strategy is defined as “reduce size or diversity of operations, reduce staff, sell company assets or businesses, restructure debt”.
Aggressive
Retrenchment
Maintenance
Renovation
Marketing, Finance, Human Resources, Operations, and R&D is concerned with coordinating ________________ Strategy.
Global level
Functional level
Corporate level
Relationships of a company with its competitors in the same industry is ___________ type of Network strategy.
Upstream Vertical
Downstream Vertical
Indirect Horizontal
Direct Horizontal
______________ Global level market entry method is defined as “Partnering a project with an existing overseas business to gain entry into a foreign market”.
Exporting
Licensing or Franchising
Foreign Direct Investment
Joint Venture
______________ is referred as Supply an identical product or service at lower cost.
Cost Advantage
Price Advantage
Differentiation Advantage
Product Advantage
Offering unique features that fulfill the demands of a narrow market is ___________ type of Business level strategy.
Differentiation - Broad range of products/services
Differentiation - Low range of products/services
Focus Strategy - Low Cost
Focus Strategy – Differentiation
_____________ is called Cost savings attributed to decreased fixed costs per unit when production & sales increase, which is one of the Business Level Strategy and Cost Advantage.
Economies of Learning
Economies of Scale
Process Technology & Process Design
Cost cutting
From the following identify the final stage of Value chain Analysis.
Compare costs by activity
Identify cost drivers
Identify cost saving opportunities
Identify linkages
Competition is irrelevant because the rules of the game are waiting to be set – which of the following market concept defines the above statement.
Red ocean Strategy
Blue ocean Strategy
Green ocean Strategy
Black ocean Strategy
From the following _______________ factors determines the Intangible opportunities.
Desires for status, exclusivity, individuality, image and security
Size, shape, color, weight, design,
Material & technology
Reliability, taste, speed, durability and safety
___________ is driven by a company’s opportunities for creating uniqueness in its offerings to customers.
Demand differentiation
Supply differentiation
Value Creation
Cost advantage
A partitioned market according to characteristics of customers and their demand is called ____________________.
Differentiation
Competitive advantage
Segmentation
Comparative advantage
Which of the following is not a “Influencers of Corporate Level Strategy”?
Product Scope
Horizontal Scope
Vertical Scope
Geographical Scope
