MGT603 current paper (May 2010

Today Paper (26-05-2010)

MIDTERM EXAMINATION
Spring 2010
MGT603- Strategic Management (Session - 3)
Time: 60 min
Marks: 44
Question No: 1 ( Marks: 1 ) - Please choose one
Which of the following is often considered the first step in strategic planning?
► Devising a mission statement
► Developing a vision statement
► Setting annual objectives
► Formulating set of strategies

Question No: 2 ( Marks: 1 ) - Please choose one
External opportunities and threats that can significantly benefit or harm an organization may include all of the following EXCEPT:
► Demographics
► Competitive trends
► Technological changes
► Research and development

Question No: 3 ( Marks: 1 ) - Please choose one
The objectives set by a manager should have which of the following characteristics?
► Should spell out how fast the company's strategy is to be implemented
► Should be challenging and congruent among organizational units
► Should include long-range performance targets but not short-range targets
► Should include financial performance targets but not strategic performance targets

Question No: 4 ( Marks: 1 ) - Please choose one
Identify the term that is known as a “mean of providing guidance to actions and procedures, including how resources are to be allocated and how tasks assigned to the organization might be accomplished”.
► Policies
► Objectives
► Aspirations
► Goals

Question No: 5 ( Marks: 1 ) - Please choose one
Which of the following is not considered as a key component of the strategic management model?
► Empowering policies
► Functional strategies
► Corporate level hierarchy
► Company mission

Question No: 6 ( Marks: 1 ) - Please choose one
The organizations that conduct business operations across national borders are known as:
► Multinational corporations
► Domestic firms
► Strategic alliances
► Franchises

Question No: 7 ( 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: 8 ( 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: 9 ( Marks: 1 ) - Please choose one
External assessment is performed in which of the following strategic-management phase?
► Strategy formulation stage
► Strategy implementation stage
► Strategy evaluation stage
► All of the given options

Question No: 10 ( Marks: 1 ) - Please choose one
“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?
► Economic forces
► Social, cultural, and demographic forces
► Technological forces
► Competitive forces

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

Question No: 12 ( 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: 13 ( 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: 14 ( Marks: 1 ) - Please choose one
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-time supply capabilities and low prices
► The suppliers furnish a critical part or component that is in relatively short supply
► Buying firms collaborate closely with their key suppliers to achieve mutual benefits
► The products of alternative suppliers are highly differentiated, making the cost of switching relatively high

Question No: 15 ( Marks: 1 ) - Please choose one
In Porter's Five Forces, the 'threat of new entrants' relates to which factor?
► Barriers to entry
► Substitutes
► Switching cost
► Buyer power

Question No: 16 ( 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: 17 ( Marks: 1 ) - Please choose one
“A complex set of basic underlying assumptions and deeply held beliefs shared by all members of the group and drive in important ways the behavior of individuals in the organizational context” is known as:
► Internal audit
► Organizational culture
► Internal assessment
► Organizational strategy

Question No: 18 ( Marks: 1 ) - Please choose one
Test marketing is commonly applied by which of the following companies?
► Industrial goods companies
► Consumer goods companies
► Public sector companies
► Private sector companies

Question No: 19 ( Marks: 1 ) - Please choose one
A company's ROI (Return on Investment) can be algebraically decomposed into which of the following two major components?
► Return on sales and fixed capital
► Return on sales and net profit
► Return on sales and Cost of goods sold
► Return on sales and Total assets

Question No: 20 ( 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: 21 ( 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: 22 ( Marks: 1 ) - Please choose one
Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?
► Conglomerate diversification
► Forward integration
► Backward integration
► Horizontal diversification

Question No: 23 ( Marks: 1 ) - Please choose one
Which of the following is a drawback or limitation of Horizontal Integration?
► Synergies may be more imaginary than real
► It can increase suppliers' and buyers' bargaining power
► Economies of scale are likely to be decreased
► Both the first & third options are correct

Question No: 24 ( Marks: 1 ) - Please choose one
_______________ refers to a strategy of seeking ownership or increased control over a firm’s competitors.
► Conglomerate diversification
► Backward integration
► Horizontal integration
► Concentric diversification

Question No: 25 ( Marks: 1 ) - Please choose one
If market shares of competitors are declining whereas total industry sales are increasing, which strategy do you think may be the right one to pursue?
► Divestiture
► Market Penetration
► Market Development
► Retrenchment

Question No: 26 ( Marks: 1 ) - Please choose one
“Substantial changes to the range of offerings or the markets served or both” is referred as:
► Differentiation
► Diversification
► Relocation
► Brand extension

Question No: 27 ( Marks: 1 ) - Please choose one
When both divestiture and retrenchment have been pursued unsuccessfully, which of the following strategies is effective to pursue?
► Forward integration
► Liquidation
► Merger
► Takeover

Question No: 28 ( Marks: 1 ) - Please choose one
Which of the following statements is TRUE about company’s strategies?
► Company strategies concern how to grow the business, how to out-compete rivals, how to satisfy customers
► Company strategies concern when to change the company's strategic vision and business model
► Company strategies concern whether to focus on achieving short-run performance targets or on long-range
► Company strategies concern performance targets and how much organizational stretch to build in

Question No: 29 ( Marks: 3 )
Suppose according to the IFE matrix, the weighted score of a certain company is 2.85. How that company will interpret this score?

Question No: 30 ( Marks: 3 )
Explain concentric diversification strategy with the help of two examples of local or multinational firms operating in Pakistan?

Question No: 31 ( Marks: 5 )
Critically analyze this statement, “Internal audit provides more opportunity for participants to understand how their jobs, departments, and divisions fit into the whole organization than the external audit”.

Question No: 32 ( Marks: 5 )
Describe any two types of integrative strategies? Give one example for each.

Another Paper:-

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Question No: 32 (Marks: 3)
Describe any three functions of finance / accounting policies.
2nd yaad nahi ek strategy statement.

Ratio analysis se related question tha 5 no ka
Question No: 32 (Marks: 5)
Describe any two types of integrative strategies? Give one example for each.