Strategic Management - A4

Customer’s loyalty can be gained through Differentiation: True [P-127, U-6]

The model based on 30 strategic variables and stored in an exclusive computer based model and database is know as the: PIMS Model

Sustainable Competitive advantage is necessary of the working of the – Portfolio Concept

The Delphi method is an exercise in group communication among a panel of well dispersed experts.

Arvind Mills endeavors to be a one stop shop for leading garment brands – True [P-82, U-4]

The GE Matrix, Investment should be made for the Growth Domain, to allow the product to grow with the market

Cadbury’s add in which Amitabh Bachchan clarifies about the safety of the product (dairy milk) is an example of Counteroffensive defense.

Divestment involves the sale or liquidation of a portion of business.

Analysis of an Enterprises position suggests the following strategy: Invest, Grow, Harvest, Co-Competition (Check book)

Matrix organization is also known as “Grid”, or “Project” or “Product Management” True [P-241, U-9]

Environmental competitiveness tends to encourage ethical behavior:- False

The environment which has a direct impact on the company the – Immediate environment.

The reasons for acquisition are – Increase market power, Increased diversification, Increased speed to market [P-325, U-11]

The CEO is the supreme authority in Company:- False

Investment in a “Question Mark” product/unit is worthwhile when :- There is no dominant competitor.

After the Second World War, Policy making and functional area-integration didn’t suffice for the organization due to the : Effect of Environment on the business.

The details which have been retrieved, processed and used for in presence purpose or decision making is known as – Information

The factors considered for an Internal Environment Study include – Resources, Capabilities, Competencies. [P-77, U-4]

Value chain analysis is an effective tool for internal analysis.

Organizational capabilities is – Measurable, Comparable, the inherent potential of an organization [P-80, U-4]

Cost Leadership is a business level strategy – True

Supplier & technological environment is concerned with – Quality & no of suppliers, Logistic and raw material, trends and rate of change of technology. [P-76, U-4]

Stockholders are not the owners of corporation that’s why their interests are not paramount – False

In the first phase of evolution of ‘Strategic Management’ planning was done on the premise of ad-hoc policy making.

Specific Single dimension question = Delphi method [P-207, U-8]
Framework for allocating resources among different business units = BCG Matrix [P-178, U-8]
Low resistance from competition = Game theory [P-203, U-8]
Desire d Performance Vs projected performance = Gap Analysis [P-186, U-8]

Divestiture is an end in itself – False

It is better not to invest in a “Question Mark” if – there is an established leader in the market.

Initiatives taken by Maruti Udyog Limited for leadership include – Vendor Rationalization, Tie up with SBI and its associate banks to reach smaller towns, Presence across different segments [P-35, U-2]

The information Management Capabilities of an organization are known by its – transmission and dissemination of information, Integrative factors, processing of information (Check book: Promotional related activities)

Operational efficiency is essential but not sufficient – True

Macro environment includes – Political-Legal, Socio-Cultural, Economic-demographic, Technology [P-76, U-4]

Strategy is about achieving excellence in individual activities – False

The main functions of the corporate strategy include is – to provide strategic direction to the firm, to ensure the fit between the firm and its environment, set the pace of the corporations total growth [P-47, U-3]

SWOT Analysis of Arvind mills has highlighted the following Opportunities for the organization:- Textile Industry identified as core sector of India, Free access to the huge global textile market, Textile Industry shifting to developing countries like India for cost cutting. [P-82, U-4]

T in SWOT refers to – Unfavorable condition in External environment.

The various methods of resource allocation are – Strategic Budgeting, Matrix Budgeting, PLC Based Budgeting [P-229, U-9]

Core Values are – Independent of the current industry environment.

Uncertainty, complexity & are the main challenges in strategic management.

Every company reinvents itself over a period of time – True.

Increase in passenger vehicle = Affordable Finance (Check book)
Consultant = Unbiased opinion
Senior Management = Answerable to the Board of Directors and CEO [P-38, U-2]
CEO = Link between company and the board of directors and also to the external Environment.

Other options are: Provide Administrative support. (Check book)

The Delphi Method was developed as a result of technology forecasting study done by the US Military.

Core Competencies – are the wellspring of new business.

The common areas of application of PIMS Method include – Forecasting Profit, Appraising new business opportunities, effective allocation of capital, manpower and other scarce resource, Assessing SBU managers performance – actual Vs expected. [P-201, U-8]

SBU’S are formed when there are – multiple businesses.

In the Directional Policy Matrix, the call in the bottom left cornet the strategy suggested is – divestment.

Financial Strength – is an internal Dimension of the Space Matrix.

Middle managers are not actively involved in formulation of strategies.

A market challenger adopts the following marketing strategy – Flank Attack

Mehool-1

Policies define an area within which a decision is to be taken – True [Page: 64, U-3]

Strategic management deals with - Business process – checked

A corporation is considered a piece of property, not a human community so it can be sold & owned by a propertied class: True [P-263, U-10]

Middle level Managers are: The link in strategizing and implementation, not actively involved in formulation of strategies, developed to be the future top management. [Page: 38, U-2]

The conditions which lead to the evolution of the 3rd phase of evolution of Strategic Management include: geographical large market, more number and type of customers, increased competition. [P-3, U-1]

Niche Marketing means: end user specialist, specific customer specialist, geographic specialist. [Page 129, U-6]

In bad times, when a business is doing badly, the challenge is: to create new spaces in the market, uniquely suited to the strength of the organization. [P-60, U-3]

Access to investment resource is a factor determining competitive strength: True or False??

Demand Variability is a determinant of: Environmental Stability [Page 208, U-8]

In a delegation a decentralized structure is achieved & harmonized at the plant & area levels. [P-248, U-9]

Factors determining HRP (Human Resource Planning): Type & Strategy of organization, Environmental uncertainties, type and quality of information. [P-287, U-11]

The world suffered a traumatic depression in 1950: True or False.???

After the success of Japanese and Asian companies in the eighties, many companies copied the efficiency and practices of the Japanese companies. These practices refer to: Operational effectiveness. [P-21, U-2]

Market followers are = Imitator, Counterfeiter, Cloner, Adapter. [P-129, U-6]
Market challengers are = Bypass Attack, Front, Flank, Encirclement, Guerilla. [P-129, U-6]
Turnaround strategy = V.R.S (Cant Say)
Maintain strategy = stable environment (U-5, P-94)
Options: differentiation

The hallmarks for self-regulation are: Trust & fairness, changed management, Integrity & thoughtfulness. [P-261, U-10] check for Misconstrued for total lack of emotions.

Responsibility towards society & community includes – Avoiding bad, smoky chimneys, & pollution of any kind and abiding by the: Environment Protection Act. [P-272, U-10]

The one quality that all great leaders share is that of: Emotional intelligence [P-259, U-10]

A Niche can be on the basis of – End user specialist, customer size specialist, geographic specialist. [Page-129, U-6]

Operational level strategies are derived from Functional strategies. [Page-25, U-2]

Companies employ trained Psychologists to develop “competency models” to identify potential leaders. [P-259, U-10]

The factors affecting environmental appraisal are: strategist related, organization related, environment related [P-84, U-4]

Competency model reveal three types of capabilities: Technical skills, Cognitive skills, Emotional intelligence Quotient [P-259, U-10]

The benefits of a change in process are defined in terms of Labour cost savings [P-156, U-7]
Traditional cost accounting has 3 major limitations – Cost accounting assumes the factory as an isolated entity. [P-156, U-7]

It refers to the relatively more durable company arrangements and relationships: Structure [P-144, U-7]

Trade offs occur when there are inconsistencies in image and reputation. [P-21, U-2]

Module of Flotilla strikes an optimum balance of standardization and flexibility. [P-157, U-7]

1st phase of evolution of strategic management = Single product line [P-2, U-1]
1st phase of evolution of strategic management = Owner-Manager
1st phase of evolution of strategic management = Integration of the functional areas
1st phase of evolution of strategic management = Crucial role of environment on business
Options are: Integration of the functional areas, Renovision, Single product line, Owner-Manager, Crucial role of environment on business, global competition.

An Operating Turnaround strategy is usually linked with internal retrenchment. [P-120, U-6]

It indicates the degree of differentiation: Structure. [P-145, U-7]

Procedures are the chronological sequences of required actions. [P-65, U-3]

Companies have strengths in a number of areas but their key strengths are few in number: True cheked

Role of a Manager in today’s changing business scenario is to:
Have a work-life balance, establish an environment for accomplishing group goals with least time, money material and personal dissatisfaction, takes actions that make it possible for individuals to make their best contribution to group objectives.

Identification of the Critical Success Factors can be done: By SWOT analysis [P-77, U-3]

The CEO is the most important strategist and responsible for all the aspects. True [P-37, U-2]

Interpersonal roles include Figurehead role, Liaison role, Leader Role. [P-12, U-1]

This strategic posture plays a leadership role in establishing how the industry operates: Shapers [P-141, U-7]

The profit-impact of Market Strategy (PIMS) Model enables firms to quantitative evaluation of business strategy. [P-197, U-8]

SPI = Strategic Planning Institutes [P-197, U-8]

Japan’s major productive gains are the result of social changes brought about by – Statistical Quality Control. [P-156, U-7]

Reputation resource is an intangible external resource – True [P-77, U-4]

A transnational strategy includes: Global learning, Creative approach to managing, Combined approach of low-cost and high local responsiveness simultaneously for their product/service [P-118, U-6]

Style of a company are the patterns of actions taken by members of top management over a period of time: True. [P-146, U-7]

A competent Manager should perform which of the following roles? – Interpersonal role, Informational role, Decision role. [P-12, U-1]

The term strategy is derived from the Greek word “Strategies” which means General ship-the actual direction of military force. True [P-20, U2] Strategos

Vision what the company aspires to be. [Page-48, U-3]

System are formal and informal rules and regulations that complements the company structure. True [P-148, U-7]

Economies of Scale are an important aspect in an organization that pursues the strategy of: Cost leadership. [P-126, U-6]


Mehool-2

Managers feel themselves to be a part of a process, and not isolated, when they can relate environmental changes to the following changes within the organization – Policy change [P-6. U-1

Hierarchy of strategies in descending order is: SBU level, Corporate Level, Functional level, operational Level – False [P-25, U-2]

The issue seen in Strategic decision making includes: It needs objective setting, Proper evaluation of decision making, creativity in decision making needed for complex situations [P-26, U-2]

ROI (Return on Investment is determined by – Stage of product life cycle [P-200, U-8]

A technique used in environmental forecasting is – Game theory [P-74, U-4]

Premium Branded helped Apollo Tyres weather storm of Depression: True [P-8, U-1]

Stretching over new territories, broadening markets by a company is a form Mobile defense under Defending market Share [P-128, U-6]

The outer circle of are of social responsibility is associated with issues like training of unemployed employment for handicapped people & minorities etc. True [P-269, U-10]

SPACE Matrix = Internal Strategic Position Vs External Strategic Position [P-209, U-8]
Gap analysis = Performance Vs Time [P-186, U-8]
McKinsey / GE Matrix = Industry Attractiveness Vs Business Strength. [U-8]
Boston Matrix = Market Growth Vs Market share [U-8]

Japanese companies unleashed a force across the world along with other Asian Companies posing a threat to US and European companies in the Eighties. [P-21, U-2]

An unhealthy portfolio has: More Dogs, Few Stars. [P-183, U-8]

One of India’s largest diversified Business House is Reliance Industries.

If a diversified company is compared to a large tree, the large limb represents the end products. False [P-79, U-4]

Attack strategies are: Frontal Attack, Flank Attack, encirclement attack, bypass attack, guerilla attack [P-129, U-6]

According to Michael Porter, the core of efficiency management is strategy: True [checked]

The cultural of a company is conveyed through: Rites, Myths, Rituals, legend and actions [P-146, U-7]

Environmental issues lend themselves to a straightforward classification into neat categories. False

Business is rated on which dimensions? Market Attractiveness, Business Strengths [Checked]

The various areas covered by social responsibility are: Inner Circle, Intermediate circle, Outer circle [P-269, U-10]

Some techniques used for Environment forecasting include: Simulation, Cross-Impact analysis, Morphological Analysis, Game Theory, Analogies. [P-74, U-4]

Strategic Intent captures the essence of winning and is stable over time. [P-59, U-3]

Arranging training program on productivity is a strategic decision. False Checked

Business models can be described as a system that describe how pieces of business fit together. [P-245, U-9]

Gap Analysis = Difference between desired and projected performance [P-186, U-8]
Corporate Parenting = Managing SBU’s by a corporate [P-159, U-7]
Heartland Business = Give the highest priority [P-160, U-7]
Ballast Business = fit well but low opportunities [P-160, U-7]

Business strength is an index of factors like: Relative market share, Price, Competitiveness, Product quality, customer & Market knowledge, sales effectiveness and geographic advantages. [P-190, U-8]

Industry Attractiveness index is made up of factors like: Market size, market growth, industry profit margin, amount of competition, seasonally & cyclically of demand and industry cost structure [P-190, U-8]

A contractual form of entry into global market is seen in: Franchising/ Licensing [P-119, U-6]

_____ constitute/s the focus for strategy at the corporate level. (Core competencies, external environment, SBU’s, Industry climate) ????? need to be check again

When a company emulates the market leader with slight variation, it is called a Cloner. True [P-129, U-6]

Supplier & technological environment is concerned with: Quality & no. of suppliers, Logistic, raw material, trends and rates of change of technologies. [P-76, U-4]

It states that the private sector, because of its considerable economic & human resource must help in social programs. - The capacity argument [P-265, U-10]

The result of the SPACE Matrix indicate direction for: Future Investment [P-211, U-8]

An organization develops its core competencies over a period of time – True.

S in SWOT stands for: Inherent capacity of organization [P-72, U-4]

In the cash flow of a product, the payoff from growth must come when the growth slows [P-181, U-8]

The factors considered to study the financial Capacity of an organization include: ability of the company to raise funds, their cost and availability (Sources of funds), usage of fund, management of funds [P-80, U-4]

Decision Role is inclusive of: Negotiator role [P-13, U-1]

The Boards of Directors is the link between the company and the environment. [P-37, U-2]

Quantitative Management Viewpoint emerged as a manor force during World War II [P-10, U-1]

Divestiture is not an end itself, and leads to creating new business and strengthening existing ones. [P-124, U-6]

Customer loyalty can be gained through Differentiation. True [P-127, U-6]

Strategic Management is concerned with: Long term planning

In the BCG approach, units or products with low market share in high growth markets are called Question Mark. [P-180, U-8]

Denominator management includes: Cost Reduction [P-60, U-3]
Numerator – typically turnover / sales – i.e. the figures showing the position externally. The denominator would be cost, profits, and mainly internal parameters. To show better results – there is a short cut available which is tempting i.e. focus on the internal parameters – so restructure – cut costs – and do things that may hurt a company.

In the GE Matrix, the cells in the top left hand corner of the matrix include. Leader [P-194, U-8]
Leader, Try harder, growth.*

Recovery situation include: Temporary viability, survival possible but little potential for future growth exists, cost cannot be reduced and declining demand. [P-119, U-6]

A combined approach of low cost and high local responsiveness simultaneously for the products and services is a part of: Transnational strategy [P-118, U-6]