Strategic Management MCQ Questions and Solutions with Explanations | Management

The business unit strategy has three major components mission, business unit goals, and competencies. The major parts of a standard strategic plan include the following: Mission, vision, and aspirations, Core values, Strengths, weaknesses, opportunities, and threats, Objectives, strategies, and operational tactics, Measurements and funding streams.

Disney is in the business of creating entertainment, fun and fantasy. The Walt Disney Company is one of the most creative and successful forces in the entertainment industry. The company is best known for bringing decades of fantasy to families through its motion pictures, television series, and amusement parks.

The Holiday Inn, Burlington statement, "If a customer has a need or want, we fill it." is an example of a Marketing objectives. Marketing objectives are goals set by a business when promoting its products or services to potential consumers that should be achieved within a given time frame.

A useful framework used to assess a company's investments/divisions is called business portfolio analysis. A business portfolio analysis is essentially a process of looking at a company's products and services and categorizing them based on how well they're performing and their competitiveness.

Cash cows are SBU's that typically generate a lot of competition. A Cash Cow is a metaphor used for a business or a product, which exhibits a strong potential in terms of returns in a low-growth market. The rate of return from this business is usually greater than the market growth rate. A company does not have to invest much in the business apart from the initial outlay. Once the company recovers its initial investment, it does not have to put in more cash to keep the business growing.

Business unit competencies should be distinctive enough to provide a competitive advantage. Business competency is a set of particular abilities and knowledge that sets a company apart from its competitors. In highly successful companies, core competencies have most likely developed in areas where they add the most value to products.

TQM is a strategy that is designed to change the quality of a product to satisfy customer needs by using the concept of benchmarking. Benchmarking, is a tool of strategic management, that allows the organization to set goals and measure productivity, on the basis of the best industry practices. It is a practice in which quality level is used as a point of reference to evaluate things by making a comparison.

Firms may view growth opportunities in these terms Current and new markets, and current and new products. A growth company tends to have very profitable reinvestment opportunities for its own retained earnings. Thus, it typically pays little to no dividends to stockholders opting instead to put most or all of its profits back into its expanding business.

The strategic marketing process is how an organization allocates its marketing mix resources to reach its target markets. Strategic Marketing is a process of planning, developing and implementing maneuvers to obtain a competitive edge in your chosen niche. This process is necessary to outline and simplify a direct map of the company's objectives and how to achieve them.

An effective short-hand summary of the situation analysis is a BCG analysis. BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential. It classifies business portfolio into four categories based on industry attractiveness (growth rate of that industry) and competitive position (relative market share).