STRATEGIC MANAGEMENT PAPERS SOLVED

181. In strategy formulation phase, what can be the problem when only

financial ratios are used to measure organizational performance?

► They need to be compared with competitors’

► They are only understandable by accountants

► There are many different measures available

► The measures are usually inconsistent

Financial measures need to be compared with competitors to have any value in a

strategic sense

182. 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

183. The Web sites that sell products directly to the consumers are the examples

of which type of strategy?

► Backward integration

► Product development

► Forward integration

► Horizontal integration

184. Which of the followings best describes the Horizontal Integration?

► A firm takes over a supplier

► A firm takes over a distributor

► A firm takes over a competitor

► A firm takes over a manufacturer

185. 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

186. Competitive advantage based on differentiation derives from:

► Being the lowest cost producer in the industry and offering the lowest priced

products

► Having processes and systems which are different from competitors

► Offering products which offer different benefits from competitors' and are

valued by buyers

► Having the broadest range of different goods and services in the industry

187. All of the following situations are conducive to market

development EXCEPT:

► When new channels of distribution are expensive

► When new untapped or unsaturated markets exist

► When an organization has excess production capacity

► When an organization’s basic industry is becoming rapidly global

188. Which strategy would be effective when the stockholders of a firm can

minimize their losses by selling the organization’s assets?

► Liquidation

► Integration

► Differentiation

► Diversification

189. ABC firm has high production cost in Pakistan due to expensive raw

material The firm is formulating the strategy of capturing the European market

as prices of raw material used in ABC firm’s products is relatively low in

European market and demand is also there for the firm’s products. Which of the

following strategy the firm is going to use?

► WO

► SW

► ST

► WT

190. What of the following strategy would you recommend when a firm’s SPACE Matrix directional vector has the coordinates (-5, -2)?

► Market penetration

► Market development

► Backward integration

► Retrenchment

191. ABC company is competing in an industry where the growth rate of that

industry from year to year has reached zero or is close to zero, ABC is operating in which industry?

► Growing industry

► Emerging industry

► Mature industry

► Declining industry