MGT603 Solved Quizs

85. Which of the following statement is TRUE about ‘Controls’ which are used

in strategy evaluation stage?

► They are strategy-oriented

► They are action-oriented

► They are control-oriented

► They are information-oriented

Ref: Controls need to be action-oriented rather than information-oriented.(Page

no.154)

86. In BCG matrix, the size of circle corresponding to a division represents

what?

► Relative market share of that division

► Financial strength of that division

► Revenue generated by that division

► Relative market growth of that division

Ref: Practical Use of the Boston Matrix

For each product or service the 'area' of the circle represents the value of its sales.

(Page No.104)

87. If the capital and human resources of a firm are necessary to manage

expanded operations and it also has excess production capacity, which would

be an effective strategy for the firm to pursue?

► Market Penetration

► Market Development

► Divestiture

► Retrenchment

Guidelines for Market Development

1-Six guidelines when market development may be an especially effective

strategy are:

2-New channels of distribution that are reliable, inexpensive, and good quality

3-Firm is very successful at what it does

4-Untapped or unsaturated markets

5-Capital and human resources necessary to manage expanded operations

6-Excess production capacity

7-Basic industry rapidly becoming global

88. If the firm is very successful at what it does, unsaturated markets are

available and the new inexpensive channels of distribution are also available,

then which of the following strategies a company should follow?

► Market Penetration

► Market Development

► Product Development

► Retrenchment

Six guidelines when market development may be an especially effective strategy

are:

ı New channels of distribution that are reliable, inexpensive, and good quality

ı Firm is very successful at what it does

ı Untapped or unsaturated markets

ı Capital and human resources necessary to manage expanded operations

ı Excess production capacity

ı Basic industry rapidly becoming global

89. Which strategies are defensive tactics directed at reducing internal

weaknesses and avoiding environmental threats?

► SO

► WO

► SW

► WT

Ref: WT Strategies

Every firm has a desire to overcome its weakness and reducing threats. This

type of strategy helpful when weaknesses are removed to overcome external

threats

90. Which of these is TRUE about strategy implementation?

► It refers to positioning forces before the action

► It focuses on effectiveness

► It is primarily an operational process

► It is primarily an intellectual process

Strategy formulation is positioning forces before the action.

Strategy implementation is managing forces during the action.

Strategy formulation focuses on effectiveness.

Strategy implementation focuses on efficiency.

Strategy formulation is primarily an intellectual process.

Strategy implementation is primarily an operational process.

Strategy formulation requires good intuitive and analytical skills.

Strategy implementation requires special motivation and leadership skills.

Strategy formulation requires coordination among a few individuals.

91. Which of the following is TRUE about Strategy formulation?

► It manages forces during the action

► It requires good intuitive and analytical skills

► It is primarily an operational process

► It requires special motivation and leadership skills

92. Identify a situation in which a divisional structure by geographic area is

considered to be most appropriate.

► Organizations have similar branch facilities located in widely dispersed

areas

► An organization offers only a limited number of products or services

► Strict control and attention to product lines are needed

► An organization has many skilled managers

A divisional structure by geographic area is appropriate for organizations

whose strategies need to be tailored to fit the particular needs and characteristics

of customers in different geographic areas. This type of structure can be most

appropriate for organizations that have similar branch facilities located in

widely dispersed areas.

93. All of the following are included in Rumelt's criteria for evaluating

strategies EXCEPT:

► Consonance

► Advantage

► Consistency

► Clarity

Four Criteria (Richard Rummelt):

• Consistency

• Consonance

• Feasibility

• Advantage

94. Identify which of the following are mostly based on a firm's external

assessment according to Richard Rumelt.

► Consonance and consistency

► Advantage and feasibility

► Consonance and advantage

► Consistency and feasibility

Consonance and advantage are mostly based on a firm’s external assessment,

whereas consistency and feasibility are largely based on an internal assessment

95. Identify a factor which determines the final design of a firm’s strategyevaluation

and control system.

► Opportunities

► External characteristics

► Organization’s characteristics

► Competition’s characteristics

Ref: The unique characteristics of an organization, including its size,

management style, purpose, problems, and strengths, can determine a strategyevaluation

and control system's final design. (Page No.154)