MGT603 current paper (27 May 2010

Question No: 1    ( Marks: 1 )    - Please choose one

 Long-term objectives includes all of the following EXCEPT:

       ► Measurable

       ► Reasonable

       ► Varying

       ► Consistent

   

Question No: 2    ( Marks: 1 )    - Please choose one

 Which of the following is NOT included in the strategic management model?

       ► Measure and evaluate performance

       ► Establish long-term objectives

       ► Develop mission and vision statements

       ► Perform internal research to identify customers

   

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

 The purpose of an external audit is to prepare a list of which of the following?

       ► Opportunities and weaknesses

       ► Threats and strengths

       ► Opportunities and threats

       ► Strengths and weaknesses

   

Question No: 6    ( Marks: 1 )    - Please choose one

 Rehman industries, a leading firm of the industry is analyzing the technological forces for the firm which may provide it opportunities and threats for which stage/s of strategic management process?

       ► Strategy formulation

       ► Strategy implementation

       ► Strategy evaluation

       ► All of the given options

   

Question No: 7    ( Marks: 1 )    - Please choose one

 Use of the Internet and Internet technologies can be integrated into the sales of on-line as well as off-line business and marketing portion of the value chain through which of the following?

       ► Through software that permits customers to specify build-to-order options

       ► Through online product catalogs containing rich product information and specifications

       ► Via online price quotes and online announcements of special sales and promotions

       ► All of the given options

   

Question No: 8    ( Marks: 1 )    - Please choose one

 Which of the following best describes this statement; “A systematic and ethical process for gathering and analyzing information about the competition’s activities and general business trends to further a business’ own goals”?

       ► External assessment

       ► Industry analysis

       ► Competitive intelligence program

       ► Business ethics

   

Question No: 9    ( 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: 10    ( Marks: 1 )    - Please choose one

 Which of the following statements is correct in relation to the Five Forces framework?

       ► The framework is a means of identifying the forces which affect the level of competition in an industry

       ► The framework identifies the major stakeholders of an organization

       ► The framework assists in developing a broad perspective on the environment within which an organization operates

       ► It is not appropriate in public sector management and for small organizations

   

Question No: 11    ( Marks: 1 )    - Please choose one

 While preparing an External Factor Evaluation Matrix, a total score of 0.8 indicates that:

       ► Firm is taking advantages of strengths and avoiding threats

       ► Firm is taking no advantage of opportunities and is avoiding threats

       ► Firm is not taking advantages of opportunities and is not avoiding threats

       ► Firm is taking advantage of opportunities and is avoiding the threats

   

Question No: 12    ( Marks: 1 )    - Please choose one

 Internal analysis involves gathering and analyzing information about all areas of a firm EXPECT:

       ► Research and development

       ► Management information system

       ► Marketing

       ► Competitors

   

Question No: 13    ( Marks: 1 )    - Please choose one

 All of the following are included in the five functions of the management processEXCEPT:

       ► Planning

       ► Organizing

       ► Leading

       ► Delegating

   

Question No: 14    ( Marks: 1 )    - Please choose one

 One of the top level manager of a large manufacturing plant uses to spend her day trying to ensure that the material wastage is not more than 10%. She spends her day in performing which of the following management functions?

       ► Planning

       ► Organizing

       ► Leading

       ► Controlling

   

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

 The IFE matrix summarizes and evaluates which factors in the functional areas of a business?

       ► Opportunities and threats

       ► Strengths and weaknesses

       ► Strengths and threats

       ► Opportunities and weaknesses

   

Question No: 17    ( Marks: 1 )    - Please choose one

 What is meant by Focused Differentiation?

       ► Concentrating on a particular feature of a product or service to achieve differentiation

       ► Concentrating on differentiation as the primary means of achieving competitive advantage

       ► Providing a high perceived value product to a selected market segment which justifies a substantial price premium

       ► Simultaneously seeking to achieve differentiation and a price lower than that of competitors

   

Question No: 18    ( Marks: 1 )    - Please choose one

 Khawar Garments, a domestic firm begins to export to India, it is an example of which of the following?   

       ► Horizontal integration

       ► Market development

       ► Forward integration

       ► Concentric diversification

   

Question No: 19    ( Marks: 1 )    - Please choose one

 Under which of the following conditions, Concentric Diversification would be particularly an effective strategy to pursue?

       ► When an organization has grown so large so quickly that major internal reorganization is needed

       ► When sales of current products would increase intensively by adding the new related products

       ► When revenues from current products/services would increase significantly by adding the new unrelated products

       ► When current products are in maturity stage of the product life cycle

   

Question No: 20    ( Marks: 1 )    - Please choose one

 The company acquires or develops new products that could appeal to its current customer groups even though those new products may be technologically unrelated to the existing product lines. Which of the following best describes the statement?

       ► Retrenchment

       ► Horizontal diversification

       ► Market development

       ► Horizontal integration

   

Question No: 21    ( Marks: 1 )    - Please choose one

 Abdullah Group of Industries is involved in the sale of its marginal business. It is most likely to say that Abdullah Group is implementing _____________________ strategy.

       ► Join venture

       ► Acquisition

       ► Liquidation

       ► Retrenchment

   

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

 In which of the given phases of strategic management, strategies are put into action?

       ► Strategy formulation

       ► Strategy implementation

       ► Strategy evaluation

       ► All of the given options

   

Question No: 24    ( Marks: 1 )    - Please choose one

 ______________ is the principle of conduct that guides decision-making.

       ► Human rights

       ► Business ethics

       ► The constitution

       ► Social responsibility

   

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 FALSE about vision and mission statements?

       ► Vision statement gives the overall purpose of an organization while a mission statement describes a picture of the preferred future

       ► A vision statement describes how the future will look if the organization achieves its mission and a mission statement explains what the organization does

       ► Mission statement answers the questions what is our business and the vision statement answers the question what do we want to become

       ► Mission statement explains the current position and activities of a firm whereas vision statement explains the future objective

   

Question No: 27    ( Marks: 1 )    - Please choose one

 Which of the following is NOT a key question that can reveal internal strengths and weaknesses of the marketing department?

       ► Does the firm have effective sales?

       ► Are markets segmented effectively?

       ► Are the firm’s products and services priced appropriately?

       ► Does the firm have good liquidity?

   

Question No: 28    ( Marks: 1 )    - Please choose one

 “A desired future state that the organization attempts to realize”. Identify the term relevant to the given statement.

       ► Goal

       ► Strategy

       ► Policy

       ► Procedure

   

Question No: 29    ( Marks: 3 )

 What activities are performed in strategy evaluation stage under controlling function of management?

   

Controlling function of management includes all those activities undertaken to ensure that actual operations conform to planned operations. Controlling function of management is particularly important for effective strategy evaluation. Controlling function of management has the following activities in strategy evaluation.

1.  Establishing performance standards 

2.  Measuring individual and organizational performance 

3.  Taking corrective actions

4.  Comparing actual performance to planned performance standards 

Question No: 30    ( Marks: 3 )

 In your opinion, what can be the circumstances when a Low Cost Producer in an industry brings effectiveness?

The circumstances will be for high cost producers because, when low cost producer come into market. Its costumers will be increased. Also low-cost producer would generally have a higher profit margin.

   

Question No: 31    ( Marks: 5 )

 What are the major stakeholders that affect pricing decisions?

Following are the five major stakeholders which affect pricing decisions.

1. Governments

2. Suppliers

3. Distributors

4. Consumers

5. Competitors

   

Question No: 32    ( Marks: 5 )

 Mergers or acquisitions are the methods by which two companies combine to form a larger company. What can be the reasons for acheiving mergers or acquisitions?

The 1^st reason for acquisition and merger to combine is that they believe that synergy exist and by joining both of us can achieve something more than we can get individually.

Acquisition and merger join to spread its risks and exploit new markets.

Acquisition is essential for growth.

Companies seek an acquisition because they believe that a good investment is capable of generating a high return for the parent company's shareholders.