Strategic Management MCQ Questions and Solutions with Explanations | Management

Functional level strategy directly supports business strategy. A business strategy is a set of competitive moves and actions that a business uses to attract customers, compete successfully, strengthening performance, and achieve organisational goals. It outlines how business should be carried out to reach the desired ends.

Relative power and interest is the most appropriate method of categorizing stakeholders.

International business transactions include all commercial transactions between two or more countries. International Business Transactions is a survey course designed to introduce students to cross-border business transactions between private business firms. It considers a wide range of different transactions taking place across borders.

When an organization has absolute power in its chosen marketplace is monopoly power. Monopoly power (also called market power) refers to a firm's ability to charge a price higher than its marginal cost. Monopoly power typically exists where the there is low elasticity of demand and significant barriers to entry.

Exploring future possibilities by looking at potential outcomes from particular causes and seeking to explain why things might occur best describes scenario planning. Scenario planning is making assumptions on what the future is going to be and how your business environment will change overtime inlight of that future. More precisely, Scenario planning is identifying a specific set of uncertainties, different “realities” of what might happen in the future of your business.

Managers should study international business because international business comprises a large and growing portion of the worlds total business, global events and competition affect almost all companies and a company operating internationally will engage in modes of business that differ from those it is accustomed to domestically

An organization most likely to secure and sustain a position of strength in its associated environment by seeking to influence and manage their external environment. An external environment is composed of all the outside factors or influences that impact the operation of business. The business must act or react to keep up its flow of operations.

To maximize competitive risk would NOT be a reason for a company to engage in international business. International business encompasses all commercial activities that take place to promote the transfer of goods, services, resources, people, ideas, and technologies across national boundaries.

High innovation would not be considered a barrier to entry. Innovation is about being creative and original in your work and thinking.

International business has grown rapidly in recent decades for all the following reasons EXCEPT increased cost of labor in both the lesser-developed and developing countries. International business encompasses all commercial activities that take place to promote the transfer of goods, services, resources, people, ideas, and technologies across national boundaries.