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Strategic Management MCQ Questions and Solutions with Explanations | Management

Strategic Management MCQ Questions and answers with easy and logical explanations. Management provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Strategic Management MCQ is important for exams like MAT, CAT, CA, CS, CMA, CPA, CFA, UPSC, Banking and other Management department exam. Page-2 section-2

Each section contains 100 MCQs on Strategic Management .
11
Which of the following is one of the four key elements which must be adhered to if synergy is to be achieved?
Discuss
Answer & Solution
Answer: Option D
Solution:
Effective leadership is one of the four key elements which must be adhered to if synergy is to be achieved. Effective leadership brings together diverse people and helps them find common purpose and work towards to achieve purposeful common goals. Effective Leadership inspires and empowers people to realize their fullest potential and harness their potentials to achieve common goals.
12
An organization that is diversifying its product line is exhibiting what type of growth strategy?
Discuss
Answer & Solution
Answer: Option C
Solution:
An organization that is diversifying its product line is exhibiting growth type of growth strategy. Diversification is a corporate strategy to enter into a new market or industry in which the business doesn't currently operate, while also creating a new product for that new market.
13
A stability strategy is particularly appropriate when
Discuss
Answer & Solution
Answer: Option B
Solution:
A stability strategy is particularly appropriate when the industry is in a state of rapid upheaval. A stability strategy refers to a strategy by a company where the company stops the expenditure on expansion, in other words it refers to situation where company do not venture into new markets or introduce new products.
14
What is synergy?
Discuss
Answer & Solution
Answer: Option C
Solution:
When the parts of an organization are combined and managed in such a way that the benefits exceed those which would result if the parts were operating separately is known as synergy. Synergy is the concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts. Synergy is a term that is most commonly used in the context of mergers and acquisitions (M&A).
15
What is Kelloggs main challenge for the future:
Discuss
Answer & Solution
Answer: Option A
Solution:
Kelloggs main challenge for the future is to create new products for a market that is both growing and declining according to geography whilst generating enough cash to advertise and launch new products.
16
A _______ strategy addresses organizational weaknesses, helps stabilize operations and revitalizes organizational resources and capabilities
Discuss
Answer & Solution
Answer: Option D
Solution:
A retrenchment strategy addresses organizational weaknesses, helps stabilize operations and revitalizes organizational resources and capabilities. This strategy is often used in order to cut expenses with the goal of becoming a more financial stable business. Typically the strategy involves withdrawing from certain markets or the discontinuation of selling certain products or service in order to make a beneficial turnaround.
17
Which one of the following are considered to be synergistic benefits for LVMH?
Discuss
Answer & Solution
Answer: Option D
Solution:
Name association are considered to be synergistic benefits for LVMH. LVMH has focussed on the core competencies of Product, Distribution and Communication that the customers are ready to pay the premium price. According to corporate level strategy, LVMH focuses on corporate value and culture to bring creative design and quality to the products.
18
An organization is said to have _______ when it has several different businesses that are independent and that formulate their own strategies
Discuss
Answer & Solution
Answer: Option B
Solution:
An organization is said to have strategic business units when it has several different businesses that are independent and that formulate their own strategies. Strategic Business Unit (SBU) implies an independently managed division of a large company, having its own vision, mission and objectives, whose planning is done separately from other businesses of the company.
19
Which of the following is a force in the Porter's five forces model of industry attractiveness?
Discuss
Answer & Solution
Answer: Option C
Solution:
Bargaining power of suppliers is a force in the Porter's five forces model of industry attractiveness. The Bargaining Power of Suppliers, one of the forces in Porter's Five Forces Industry Analysis Framework, is the mirror image of the bargaining power of buyers and refers to the pressure that suppliers can put on companies by raising their prices, lowering their quality, or reducing the availability of their products.
20
Which one of the following is not one of the elements of strategic thinking described by Campbell and Alexander (1997)?
Discuss
Answer & Solution
Answer: Option B
Solution:
Outlining of competencies is not one of the elements of strategic thinking described by Campbell and Alexander (1997). A competency framework defines the knowledge, skills, and attributes needed for people within an organization. Each individual role will have its own set of competencies needed to perform the job effectively.