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SU 1.1
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Questions in this quiz (30)
1Which of the following is least likely to be an example of synergy?
- AA.A shopping mall with several businesses providing different products and performing different services.
- BB.A car dealership providing warranties on automobile parts to maximize customer value.
- CC.A manufacturing company hiring a new manager with technological experience lacking in the company.
- DD.Military Humvees being converted into sports utility vehicles for sale to civilians.
2Which of the following best describes a market synergy?
- AA.Technology transfer from one product to another.
- BB.Bundling of products distributed through the same channels.
- CC.Production of multiple products at one facility.
- DD.Use of complementary management skills to achieve entry into a new market.
3Which of the following is a market-oriented definition of a business versus a product-oriented definition of a business?
- AA.Making air conditioners and furnaces.
- BB.Supplying energy.
- CC.Producing movies.
- DD.Selling men’s shirts and pants.
4Which one of the following is a social trend affecting the organization?
- AA.Changes in labor markets.
- BB.Tougher legislation to protect the environment.
- CC.Rising inflation.
- DD.Replacements for steel in cars and appliances.
5Which of the following best describes a cost synergy?
- AA.Recycling of by-products.
- BB.Selling one product strengthens sales of another product.
- CC.Transferring knowledge to new uses.
- DD.Acquiring new management skills.
6According to Michael E. Porter’s generic strategies model, a firm that successfully adopts a differentiation strategy is most likely to
- AA.Tend to disregard cost control.
- BB.Risk overlooking product changes.
- CC.Closely supervise its labor force.
- DD.Be able to pass supplier cost increases on to its customers.
7According to Michael E. Porter’s generic strategies model, a firm that successfully adopts a cost focus strategy is most likely to
- AA.Have weak customer loyalty.
- BB.Have a strong R&D function.
- CC.Know its market well.
- DD.Enjoy economies of scale.
8A strategic business unit (SBU) has a high relative market share (RMS) and a low business growth rate (BGR). According to the growth-share matrix for competitive analysis created by the Boston Consulting Group, the SBU is a
- AA.Star.
- BB.Question mark.
- CC.Cash cow.
- DD.Dog.
9A manufacturing company produces plastic utensils for a particular segment at the lowest possible cost. The company is pursuing a cost
- AA.Leadership strategy.
- BB.Focus strategy.
- CC.Differentiation strategy.
- DD.Containment strategy.
10A company sells a diverse line of cookies. Its acquisition of another company, a maker of cake mixes, is most likely an example of
- AA.Vertical integration.
- BB.Horizontal diversification.
- CC.Concentric diversification.
- DD.Conglomerate diversification.
11Business strategies may be characterized by their effects on operations. The distinction between a compact car and a luxury car reflects which operational strategy?
- AA.Cost.
- BB.Flexibility.
- CC.Flexibility.
- DD.Quality.
12What operations strategy is most likely to be adopted when the product sold by an organization is a commodity and the market is very large?
- AA.Flexibility strategy.
- BB.Quality strategy.
- CC.Service strategy.
- DD.Cost strategy.
13Which of the following cycles does not have accounting information recorded into the general ledger reporting system?
- AA.Expenditure.
- BB.Production.
- CC.Planning.
- DD.Revenue.
14Which of the following is not a recognized firm orientation?
- AA.Product-centered.
- BB.Competitor-centered.
- CC.Customer-centered.
- DD.Time-centered.
15Strategic management includes developing the organization’s grand strategy. This strategy is based on
- AA.Existing strategic business units (SBUs).
- BB.A SWOT analysis.
- CC.Portfolio management of the organization’s businesses.
- DD.Strategic planning.
16In a SWOT analysis, a firm considers macroeconomic factors when it identifies
- AA.The capability profile.
- BB.Opportunities and threats.
- CC.Core competencies.
- DD.Strengths and weaknesses.
17A firm should state its primary competitive scopes when it
- AA.Defines its strategic business units (SBUs).
- BB.Establishes strategic control points.
- CC.Formulates its mission.
- DD.Makes investment and divestment decisions.
18Strategic control measures that relate to external effectiveness apply to customer satisfaction at the
- AA.Departmental level.
- BB.Business-operating-system level.
- CC.Business-unit level.
- DD.Work-center level.
19Strategic control measurements of financial results relate to
- AA.Internal efficiency at the business-unit level.
- BB.Internal efficiency at the departmental level.
- CC.External effectiveness at the business-unit level.
- DD.External effectiveness at the business-operating-system level.
20Strategic management includes establishment of appropriate controls. Control measurements are made to determine whether organizational objectives are being achieved. One category of strategic control measures concerns external effectiveness. A measurement relating to external effectiveness is
- AA.Cycle time.
- BB.Waste.
- CC.Flexibility.
- DD.Flexibility.
21Strategic management is a five-step process. In what order should the five steps be accomplished?
- AA.SWOT analysis, mission and goals, strategy, controls and feedback, implementation.
- BB.Mission and goals, SWOT analysis, strategy, implementation, controls and feedback.
- CC.Mission and goals, strategy, implementation, SWOT analysis, controls and feedback.
- DD.Strategy, SWOT analysis, mission and goals, controls and feedback, implementation.
22Which of the following steps in the strategic planning process should be completed first?
- AA.Translate objectives into goals.
- BB.Determine actions to achieve goals.
- CC.Develop performance measures.
- DD.Create a mission statement.
23A firm’s statement of broad objectives or mission statement should accomplish all of the following except
- AA.Outlining strategies for technological development, market expansion, and product differentiation.
- BB.Defining the purpose of the company.
- CC.Providing an overall guide to those in high-level, decision-making positions.
- DD.Stating the moral and ethical principles that guide the actions of the firm.
24What is strategic planning?
- AA.It establishes the general direction of the organization.
- BB.It establishes the resources that the plan will require.
- CC.It establishes the budget for the organization.
- DD.It consists of decisions to use parts of the organization’s resources in specified ways.
25Which of the following is an example of an outcome of strategic planning?
- AA.A formal statement of the organization’s definition of the fundamental truths that guide its actions.
- BB.A broad statement of concepts that emphasizes the implementation of organizational objectives over the long term.
- CC.A set of general guides for action that channel thinking and allow a certain amount of discretion in execution.
- DD.A document specifying a sequence of steps detailing the exact manner in which a certain activity must be accomplished.
26Which one of the following management considerations is usually addressed first in strategic planning?
- AA.Outsourcing.
- BB.Overall objectives of the firm.
- CC.Organizational structure.
- DD.Recent annual budgets
27All of the following are characteristics of the strategic planning process except the
- AA.Emphasis on long run.
- BB.Analysis of external economic factors.
- CC.Review of the attributes and behavior of the organization’s competition.
- DD.Analysis and review of departmental budgets.
28Strategic planning, as practiced by most modern organizations, includes all of the following except
- AA.Top-level management participation.
- BB.A long-term focus.
- CC.Strategies that will help in achieving long-range goals
- DD.Analysis of the current month’s actual variances from budget.
29Which of the following is an advantage of strategic management?
- AA.It prevents budget overruns.
- BB.It ensures industry dominance.
- CC.It is consistent with the trend away from authoritarian managerial styles.
- DD.It is most useful for entities that have already formulated their mission statements.
30An entity’s mission statement is usually decided on by the
- AA.Board of directors.
- BB.Applicable laws of the state of incorporation.
- CC.Stockholders at the first general meeting.
- DD.Executive-level management.
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- CIA Part-3 SU 1 Quiz on SU 1.1, created by Sadan Dahal on 02/06/2020.
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- Sadan Dahal
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- English
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