CBMEC Remedial Test

Strategic management is best defined as:

• a. A short-term decision-making process for daily operations

• b. The study of organizational behavior in the workplace

• c. The analysis, decisions, and actions an organization takes to create and sustain competitive advantages

• d. A set of marketing techniques to promote products

Which of the following is NOT one of the four key attributes of strategic management?

• It directs the organization toward overall goals and objectives

• It includes multiple stakeholders in decision-making

• It focuses only on short-term financial performance

• It requires trade-offs between effectiveness and efficiency

The first key attribute of strategic management emphasizes that it is:

• Concerned with long-term performance and direction

• Primarily about daily operations

• Focused only on financial profits

• Conducted by external consultants only

7. strategic management involves trade-offs between:
   

• 7. Marketing and production

• 7. Innovation and technology

• 7. Effectiveness and efficiency

• 7. Customers and employees

The external environment of a firm refers to:

• Factors inside the organization that affect performance

• Conditions and forces outside the organization that influence strategy and success

• The company’s internal policies and culture

• Activities performed by management teams

In Porter’s Five Forces model, which of the following reduces industry profitability by increasing competition?

• a. Low threat of new entrants

• b. Weak bargaining power of buyers

• c. Strong rivalry among existing competitors

• d. Few substitutes in the market

Monitoring user trends and regulatory changes exemplifies which environmental activity?

• Implementation

• Organizing

• Forecasting

• Controlling

Why is external environment analysis important for creating competitive advantage?

• It ensures resources are immediately duplicated by rivals

• It allows firms to adapt their strategies based on external forces

• It eliminates the need for cost or differentiation strategies

• It focuses exclusively on internal operations

According to Dess et al., the value chain is primarily used to:

• Identify the firm’s mission and vision statements

• Analyze external opportunities and threats

• Determine the size of the industry market

• Examine internal activities that create value and competitive advantage

In value chain analysis, primary activities are directly involved in:

• Managing firm infrastructure and HR planning

• Supporting executive decision-making

• Creating the product, delivering it, and providing service after the sale

• Setting long-term goals and objectives