Strategic Management - A5

Profit centers = S.B.U.s [P-23, U-2]
S.B.U.s are more focused on their = Product line/business [P-38, U-2]
Manufacturing Strategy = Productivity ??
Board of Directors = Link between company and external environment [P-37, U-2]

GE Matrix = Leader Domain ??
Boston Consulting group (BCG) = Cash Cows ??
Gap Analysis = Performance Analysis [P-186, U-8]
PIMS = General Management tool [P-201, U-8]
Options are: Allocentric focus, Portfolio Analysis

The organization with narrow span have the advantage of: Close Supervision, Close Control, Fast communication between superiors & subordinates. [P-231, U-9]

To maintain a regular and continuous supply of goods & introduce better and new products through R&D is one of the social responsibilities of – Business [P-270, U-10]

Core Values are – few deeply rooted values [P-48, U-3]

Business markets with very large market shares enjoy higher rates of return because of – Economies of Scale [P-199, U-8]

In the GE Matrix, The SBU’s: In the upper left are those in which the company should invest and grow, in the lower right corner, harvest strategy to be used, in the lower right cell, should be divested. [P-190, U-8]

The environment of any organization is “the aggregate of all conditions, events and influences that surround and affect it” True – [P-70, U-4]

The stage of Product Life Cycle has no impact on the ROI: False [P-200, U-8]

Change in company’s strategy gives rise to problems necessitating a new structure to be made – True [P-145, U-7]

Brush your teeth twice a day is an example of expanding the total market more usage. Checked

Game theory creates a need for a shift in perception of competition [P-203, U-8]

A business can shift from Lose-Lose to Win-Win situation by shifting to – Allocentric [P-203, U-8]

Only a diversified company, with a balanced portfolio can use its strength to capitalize on its growth opportunities. [P-181, U-8]

Responsibility for managing the company and relationship is with the: CEO [P-37, U-2]

The objective of R&D by Maruti Udyog Limited was two fold. One was to reduce product costs and the second was: to become the regional R&D hub for Suzuki operations. [P-35, U-2]

The important variables to make a decision is the time constraints within which the problem must be solved. [P-222, U-9]

A star, if successful, will become a cash cow when its industry matures. [P-180, U-8]

The Board of Directors is the supreme authority in a company. [P-37, U-2]

HR implementation involves a series of action programme like production, estimation of raw materials, labour & machine hours – False [P-288, U-11]

Co-operation is another name for a – Win-Win Situation [P-105. U-5]

The working system in Maruti Udyog Ltd is as the Japanese System and encompasses such practices as the same uniform for all levels of the workforce. – True [P-32, U-2]

A cycling accessory firm strive to become “the Nike of the cycling industry” is role model category of goal. [P-50, U-3]

Issues in strategic decision making are: - Personal limitation, influence of group, Limitations regarding rationality, creativity & logic. [P-26, U-2] – Concept of maximization, satisfying, instrumentalism. [P-26, U-2]

Divestiture is an end in itself – False.

Infosys, a major Indian IT company, binds all its business unit in Europe and in the west by transfer of learning that evolves in its units and keeps the uniformity. This can be termed as: (Global learning, KPI, Centralized configuration, Environmental Demand) Opps can’t say!!

The Primary responsibility for charting and deciding the future course of action in an organization is with the: General Manager [P-233, U-9]

Ford’s goal to “Democratize the automobile” falls in the role model category – False, it falls under Target Model. [P-50, U-3]

Functions of top management are – Policy framing, Plan formation [P-233, U-9]

A study of the Marketing environment will include – customer’s perceptions, price-performance equation, competition [P-75, U-4]

Factors to be considered in Political-Legal environment scanning are: govt. policies, stability, philosophy of govt., Legal system – implementation – infrastructure. [P-76, U-4]

Corporate strategy ensures: Fit between the firm and its environment – [P-47, U-3]

Building core competencies by an organization does not include the following activities: Sharing costs by SBU’s, Building global brand dominance, Outspending competition on R&D. [P-79, U-4]

Cost Leadership involves a company attaining the lowest cost of producing a product or a service. [P-125, U-6]

The Star of the portfolio has the following qualities: A market leader having high growth rate, High investment particularly assets. [P-182, U-8]
P.S. Sarts are not Cash Generators. Sometimes stars are not self-financing

General Motors overtook ford in the 1930’s because Ford did not replace their goal after achieving their desired goal – True [P-50, U-3]

Core Ideology means: Core Value, Core Purpose – True [P-48, U-3]

In the 1980’s when the textile industry faced a major crisis, Arvind Mills was at its highest level of profitability – True [P-9, U-1]

The niche marketer is a leader in small markets – True [Page-129, U-6]

Functional strategies are under the SBU level. [P-25, U-2]

Reciprocal responsibility goes a long way in building credibility and motivation, means equal blame and credit [P-59, U-3]

The cornerstone of financial planning process of all organizations because of the cost, control and risk considerations which influence overall value of the firm is – Capital structure planning [P-293, U-11]

The Indian Manger, in the current scenario needs which the following? – Managing and understanding IT, Global sensitivity, People Management [P-6, U-1]

The environment had a crucial role on business leading to concept of strategy. [P-4, U-1]

The vertical axis of GE strategic Business Planning Grid represents – Industry attractiveness [P-188, U-8]

Appraisal system performs role of evaluation of managerial performance against organizational objective to ensure strategy implementation. It also provides basis for salary, rewards, incentives, promotions etc. [P-257, U-10]

Self-Discipline and greater accountability replace formal control. [P-248, U-9]

The Perception opportunity arises when business are unaware of potential benefits of synergy. [P-330, U-11] P.S. Evaluation, Motivational and Implementation opportunities.

A strategy needs:- Operational effectiveness, Trade-Off, Fit. [P-21,22, U-2]

In the GE Approach, the Industry Attractiveness index includes factors like: Market size, Market Growth, Seasonally & Cyclically of demand. second last paragraph [P-190, U-8]

The X-axis in the Gap Analysis is represented by Time [P-186, U-8]

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

The Product Portfolio has the following qualities: - It is a function of balance between cash flows, It consists of products with different growth rates and different market shares, A balanced portfolio can help to capitalize on growth opportunities. [P-181, U-8]

Narrow functional boundaries are cut across by ___ Management. (Strategic, Functional, Financial, E-Commerce) – Strategic – Guess

“Globalization, Integration of markets” are factors involved in a study of:- Market environment [P-75, U-4]

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

In strategies formulation, when activities are incompatible you need. Trade-offs [P-21, U-2]

Depressed Exit Price’ Represents:- Decreased shareholder value [P-123, U-6]

It is the process of analyzing, dividing and arranging work or activities into manageable portion for individuals, sections & departments. – Departmentation – [P-234, U-9]

There are Three levels at which strategic plans are made for most companies. [P-24, U-2]

Operational Level system support managers by keeping track of the elementary activities & transactions of the organization such as sales, receipts, raw materials etc. [P-255, U-10]

The major issues of appraisal system are: Factors of appraisal, Relevance of appraisal, Procedure of appraisal. [P-257, U-10]

Envisioned Future = vivid description [P-48, U-3]
Strategic Intent = Canon wanted to Beat Xerox [P-61, U-3]
Core Ideology = Character of organization [P-48, U-3]
Strategic Planning = SWOT Analysis

Micro environment is the internal environment of a company – False.

Three main criteria for decision making are: Concept of maximization, concept for satisfying, concept of incrementalizm. [P-225, U-9]

Strategic rest on unique activities – perform activities differently or to perform different activities than rivals – True [P-21, U-2]

How does ‘structure’ reduce external uncertainty arising out of human behavior: Research and planning, Forecasting – [P-144, U-7]

Mission means: philosophy, public image [P-55, U-3]

Companies connecting with all their Branch offices on real time basis in an impact of the IT Revolution – True [P-11, U-1]

Making philanthropic contributions, sponsoring a clinic for AIDS victims & training the economically disadvantages are the examples of: Discretionary Activities. [P-266, U-10]

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

In Delphi method, the questionnaires are transmitted more than once – True [P-205, U-8]

Labour satisfaction may result is unethical behavior as anger –False. [P-278, U-10]

SWOT analysis is the cornerstone to decide on strategy [P-85, U-4, Summary]

The characteristics of a Mission Statement include: Specific, Motivational, Distinctive [P-54, U-3]

The supplier and technological environment is concerned with logistic – [P-76, U-4]

Merger takes places – Between a buyer and a seller, to avail tax concessions, to increase growth rates. [P-103, U-5]

Like roots of a tree, Core competencies of an organization is hidden from direct view. [P-79, U-4]

The various models of social responsibility are – Austere Model, Vendors Model, Civic Model [P-269, U-10]

Policies do not allow for some discretion – False. They allow otherwise they would be rules [P-64, U-3]

The Delphi method is useful in answering one, specific, single dimension question. [P-207, U-8]

Acquisitions which are friendly are termed as “Take-over” – False. [P-324, U-11]

When the “Competitive position is strong and the industry attractiveness is high”, the strategy for the SBU is to:- Invest and concentrate effort on maintaining strength [P-188, U-8]

The Internal analysis for the Organizational Capability Study uses tools like: Value Chain analysis, Qualitative Analysis, Comparative Analysis, Simulation. Need to be check again – choose 1st , 2nd, 3rd.

Scheduling is a part of strategic management – False. Checked

It includes the behaviors and are expected of business from society’s members – Ethical and discretionary responsibility [P-265, U-10]

Maruti Udyog Limited now accepts old cars of any manufacturer for a MUL can under its scheme under: True Value [P-35, U-2]

Competitors in segments cannot be clearly defined = cant say BCG
Co-opetiton = WIN –WIN [P-203, U-8]
Each stage of the product has a different strategy = PLC Concept [P-208, U-8]
Industry Strength = Growth Potential [P-209, U-8]
Options are: Lose-Lose theory, Product Portfolio concept, BCG approach

After the fall of USSR, the world rapidly moved towards – Liberalization. [P-11, U-1]