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Strategic Management

Total questions: 70

Worksheet time: 44mins

Name
Class
Date
1.
Which of the following is NOT part of a company's macro-environment?
a)
The company's resource strengths, weaknesses and competitive capabilities.
b)
Economic factors.
c)
Political and Socio-Cultural factors.
d)
Technological factors and Legal conditions.
2.
The most widely used tool for diagnosing the principle competitive pressures in a market is the:
a)
SWOT.
b)
Competitor Profiling.
c)
Five Forces Model.
d)
Market analysis.
3.
Competitive pressures on companies within an industry come from those:
a)
companies in other industries attempting to win buyers over to their substitute products.
b)
associated with the market maneuvering that goes on among rival firms in the industry.
c)
associated with the threat of new entrants into the marketplace.
d)
all of these.
4.
The nature & strength of the competitive forces that prevail in an industry is generally a joint product of:
a)
competition from rival sellers.
b)
competition from producers of substitute products.
c)
competitive pressures stemming from the bargaining power of suppliers and buyers.
d)
all of these.
5.
A company’s strategic plan:
a)
maps out the company’s history.
b)
links the company’s financial targets to control mechanisms.
c)
outlines the competitive moves and approaches to be used in achieving the desired business results.
d)
all of these.
6.
A company’s strategic vision describes:
a)
why the company does certain things in trying to please its customers.
b)
management’s storyline of how it intends to make a profit with the chosen strategy.
c)
management’s aspirations for the future and delineates the company’s strategic course and long-term direction.
d)
what future actions the enterprise will likely undertake to outmaneuver rivals and achieve a sustainable competitive advantage.
7.
Well-stated objectives are:
a)
quantifiable or measurable, and contain deadlines for achievement.
b)
clear, succinct, and concise so as to identify the company’s risk and return options.
c)
directly related to the dividend payout ratio for stockholder returns.
d)
all of these.
8.

Try to guess: in 2010, which was the global company with more stores in the world?

a)
b)
c)
d)
9.

With franchising strategy:

a)

Firms make their product and services in its home country to export them to foreign markets

b)

Foreign companies are allowed to use the company’s technology or to produce and distribute the company’s products and service

c)

A separate organization operates the business with the name of another company, in exchange for money

10.

What are the 4 P?

a)

Price, Promotion, Place, Profit

b)

Price, Place, Promotion, Prince

c)

Price, Promotion, Product, Place

d)

Pizza, Poker, Party, Pasta

11.

A small coffee shop faces significant potential competition because of the low capital requirements compared with business environments such as universities and laboratories.

a)

True

b)

False

12.

A video-streaming service provider such as Netflix is a complement to a manufacturer of streaming video devices such as Roku

a)

True

b)

False

13.

Kirsten, a manager, is writing an analysis of her employer's current and possible future revenues. Which of the following could she identify as an economic factor in her firm's external general environment?

A) the government regulations and laws in the country in which the firm exists

B) the stage of the business cycle that the country is in

C) the values and norms prevalent in the society in which the firm operates

D) the bargaining power of the firm's suppliers and buyers

a)

A

b)

B

c)

C

d)

D

14.

The goal of most organisation is to choose a strategy that

a)

Maximizes the value of the firm for its shareholders

b)

Emphasizes high sales

c)

Minimizes costs

d)

Controls both costs and expenses

15.
A change in customer's likes and interests may be seen as a
a)
opportunity
b)
strength 
16.
Which of the following is NOT in the 6 steps process of Strategic Management?
a)
Identifying current mission
b)
Formulate strategies
c)
Evaluate strategies
d)
Identifying number of staff
17.
What is the meaning of backward vertical integration? 
a)
Organization becomes its own supplier
b)
Organization becomes its own distributor
c)
Organization becomes its own seller
d)
Organization becomes its own buyer
18.
Base on this image (Facebook&Instagram), what is the type of growth strategy being use?
a)
Related Diversification
b)
Horizontal Integration
c)
Concentration
d)
Vertical Integration
19.

Marketing campaigns are always long term?

a)

True.

b)

False

20.
What is economies of scale?
a)
producing and selling goods or services in high volumes which leads to lower per unit costs
b)
a large volume of economic power
c)
using money efficiently 
d)
producing product at a higher quality more efficiently 
21.

What is the most widely used strategic tool?

a)

Five forces analysis

b)

PESTEL analysis

c)

SWOT analysis

d)

VRIO analysis

e)

SWOT-TOWS

22.

Organizational culture

a)

is long term plan how to win, visible and changes fast

b)

consist of values, beliefs, behaviors, paradigm (=stories, rituals, power structures, symbols, control systems)

c)

is theory of competitive advantage

d)

fairly easy to copy and defines, what you do, when everyone sees

23.

Digital camera inventor Kodak, continued to promote photo film to world, even though there was strong customer trend towards consumers buying digital cameras. This led to collapse or their core organization.

a)

Yes, they failed to promote new technology. Kodak moved too slowly and failed to keep pace with changing environment.

b)

No, digitalization of cameras and film did not affect Kodak. They made fast strategic decisions and let go of historical influences.

24.

The first step in the six-step strategic management process is to ________.

a)

analyze the organization’s strengths and weaknesses

b)

identify the organization’s mission

c)

identify strategies to reach the organization’s goals

d)

analyze the opportunities the organization has

25.

A mission statement includes identification of an organization's ________.

a)

strengths and weaknesses

b)

purpose and basic philosophy

c)

assets and resources

d)

resources and strengths

26.

A formal summary of a businesses goals and values is a

a)

Policy

b)

Business Plan

c)

Schedule

d)

Mission statement

27.

Strategic planning is

a)

Long term planning

b)

Short term planning

c)

General Planning

d)

Seasonal Planning

28.

What is an advantage for centralized organizations?

a)

High cost

b)

Clear chain of command

c)

Increased administration

d)

delays in decision making

29.
Which function of management involves analyzing information, set goals, make decisions.
a)
organizing
b)
leading
c)
planning
d)
controlling
30.
Which function of management —involves identifying and arranging work and resources to achieve company goals.
a)
organizing
b)
leading
c)
staffing
d)
implementing
31.

When managers look back to reflect on what has been done in the past and make sure things are being done as planned, they are engaging in the function of

a)

Organizing

b)

Reflecting

c)

Controlling

d)

Planning

32.

BENEFITS OF USING DECISION TREES include:

a)

Uses quantitative data only – ignores qualitative aspects of decisions

b)

It is based on assumptions and estimates

c)

Choices are set out in a logical way

d)

Assignment of probabilities and expected values prone to bias

33.

DRAWBACKS OF USING DECISION TREES include:

a)

Likely costs are considered as well as potential benefits

b)

Use of probabilities enables the “risk” of the options to be addressed

c)

Uses quantitative data only – ignores qualitative aspects of decisions

d)

Easy to understand & tangible results

34.

DRAWBACKS OF USING DECISION TREES include:

a)

Likely costs are considered as well as potential benefits

b)

Easy to understand & tangible results

c)

Decision-making technique doesn’t necessarily reduce the amount of risk

d)

It is a mathematical model used to help managers make decisions.

35.

Contingency planning identifies the firm’s main business focus over a long-term period.

a)

True

b)

False

36.

The management of a firm would benefit from having ______ in order to effectively handle various possible unexpected business conditions.

a)

Interpersonal plans

b)

Strategic plans

c)

Tactical management

d)

Contingency plans

37.

__________ is a ratio or rate of return concept.

a)

A. Profitability

b)

B. Performance

c)

C. Cash flow

d)

D. Efficiency

38.

Companies that are successful at global expansion are successful at transferring their

a)

A. competitive advantage

b)

B. comparative advantage

c)

C. core competencies

d)

D. core advantage

39.
Activities are the basis of competitive advantage according to Porter
a)
True
b)
False
40.
Ikea (internationally) is an example of
a)
a low cost strategy
b)
A differentiated strategy
c)
a market segment focused differentiated strategy
d)
a market-segment cost-focused strategy
41.

Who is the father of the Scientific Management Movement?

a)

Charles Babbage

b)

F.W.Taylor

c)

Harold Koontz

d)

Hentry Fayol

42.

MBO stands for---------

a)

Management by objectives

b)

Major basic order

c)

Minimum bearing objectives

d)

Management before order

43.

Profit growth can be achieved through ________

a)

increase cost

b)

decrease cost

c)

add value and raise prices

d)

enter new markets

44.

The two basic strategies for creating value are ________

a)

value and cost

b)

differentiation and low cost

c)

profitability and profit growth

d)

R&D and production

45.
What is a culture clash?
a)
Exists when there is conflict or incompatibility between two or more cultures within an organization, e.g.when two firms integrate via a hostile takeover.
b)
Exists when there is dispute among the shareholders
c)
Exists when two people in a business disagrees with each other; eg manager and employee
d)
Exists when subordinates protest against higher authoirties in command chain
46.
Do leaders have huge influence on organisational culture
a)
Yes
b)
No
47.
What is "task culture"
a)
exist in organizations where the focus is on<br />getting results. Individuals and teams are empowered and have<br />some discretion over their responsibilities.
b)
which exist in firms that empower workers to make important decisions and to act on their own initiative.
48.

Voluntary or involuntary leaving the position.

a)

Hire

b)

Fire

c)

Resign

d)

Appoint

49.

How could you define organisational culture?

a)

The way things aren't done round here

b)

Round here, we do nothing

c)

The way things are done round here

d)

What the organisational building looks like

50.

Where can culture be seen in an organisation?

a)

In the company handbook

b)

On the organisational chart

c)

In daily work practices

d)

During the corporate induction

51.

Objectives that are precise and quantifiable

a)

WAIT

b)

SMART

c)

CLEAR

d)

Tactics

52.

The moral principles that guide decision-making

a)

Profit

b)

Ethics

c)

Growth

d)

Laws

53.

The conscientious consideration of external impact of business activities

a)

JIT

b)

CSR

c)

NBIT

d)

SMART

54.
Which of the Boston Consulting Group Model (BCG Model) categories are being described here: A fast growing market leader. 
a)
Star
b)
Cash Cow
c)
Problem Child/Question Mark
d)
Dog
55.
Which of the Boston Consulting Group Model (BCG Model) categories are being described here: a business unit that has low growth potential and a small market share.
a)
Star
b)
Cash Cow
c)
Problem Child/Question Mark
d)
Dog
56.

What is a core competency?

a)

Something the business can do well

b)

Something unique that the business is good at

c)

Something the business uses to build strength

d)

Being the market leader

57.

Which of these is not a core competency?

a)

Providing good customer service in a hotel

b)

Using technically skilled staff to produce a new chip

c)

Providing superior quality products

d)

Using innovative production techniques

58.

Core Competencies will change the business grows and develops:

a)

True

b)

False

59.

Diversification is good because:

a)

It focuses investments on a single stock to take advantage of growth potential

b)

Mutual funds have higher fees than individual stocks

c)

Interest rates rise and fall

d)

It spreads the risk of investment

60.

outlines the process of determining which forces drive and which resist a proposed change.

a)

Maslow's hierarchy of needs

b)

Nohria's Four Drive theory

c)

Lewin's Force Field Analysis

d)

Senge's Learning Organisation theory

61.

Are the forces that support change

a)

Driving forces

b)

Pushing forces

c)

Restraining forces

d)

Draining forces

62.

Managers could also potentially act as a...

a)

restraining force on change that may occur in a business.

b)

negative key performance indicator.

c)

player in the big scheme of the business culture.

d)

shareholder within the business structure of change.

63.

Competitors will often be seen as a...

a)

competition for change

b)

welcome opportunity for change

c)

driving force for change in business.

d)

restraint in the production process.

64.

Lewin's Force Field Analysis is made up of what?

a)

Driving forces

b)

Restraining forces

c)

Pushing and Pulling forces

d)

Driving and restraining forces

65.

_____ is critical in a changing environment

a)

Human Resources

b)

Operations

c)

Marketing

d)

Finance

66.

Scoring favourable and unfavourable factors based on influence to make a go/no-go decision is known as conducting a

a)

Favourable Force Analysis

b)

Locke's goal setting

c)

Herzberg two factor theory

d)

Force Field Analysis

67.

A small response to change is referred to as an _____________________ change

a)

impervious

b)

impactful

c)

immediate

d)

incremental

68.

The costs to fix and update, the constant changes and lack of reliability are all reasons _______ technology

a)

for

b)

against

69.

A business plan would normally be updated:

a)

Every day

b)

A month after the business starts

c)

Once a business adjusts its aims/objectives

d)

Every so often

e)

Never - It stays the same in its original form

70.
Looks at likely risks to the business
a)
Contingency Plan
b)
Management Team Plan
c)
Marketing Plan
d)
Industry Overview