Strategic Management MCQ Questions and Solutions with Explanations | Management

The concept Core competence was developed by Prahalad and Gary. It can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace" and therefore are the foundation of companies' competitiveness.

In Multidomestic strategy firms try to achieve a high levels of local responsiveness by making their product or service offering to the requirement of the countries they operate. A multidomestic strategy is an international marketing approach that chooses to focus advertising and commercial efforts on the needs of a local market rather than taking a more universal or global approach.

According to Ringbakk (1971) and Steiner (1972) Seeing planning as a once-a-year ritual should be avoided when creating a formal plan. In formal planning, the managers look forward for a change when it is to be made use of.

In Global strategy assumptions are made that consumers needs are similar worldwide. A global strategy refers to the plans an organization has developed to target growth beyond its borders. Specifically, it aims to increase the sales of goods or services abroad. 'Global strategy' is, in fact, a shortened term that covers three strategies: international, multinational, and global.

SPACE stand for Strategic Position and Action Evaluation. It is “an approach to hammer out an appropriate strategic posture for a firm and its individual business.”

The planning gap is a concept that is used to clarify the extent of revenue or profits gap that might emerge if current strategies are left unchanged. Gap analysis can identify gaps in the market. Thus, comparing forecast profits to desired profits reveals the planning gap. This represents a goal for new activities in general, and new products in particular. The planning gap can be divided into three main elements: usage gap, existing gap, and product gap.

Transnational strategy involves adopting a combined approach of low costs and high local respnsiveness simultaneously by the firms for their products and services. A transnational strategy is a set of planned actions defined by a company to have operations in markets abroad. This term generally applies to the methods and structures that allow a firm to initiate and maintain functions in foreign countries while preserving central coordination at one specific location.

Organizational analysis is also known as corporate appraisal, appraisal of internal factors and audit of organizational competence. Organizational analysis is the process of appraising the growth, personnel, operations, and work environment of an entity. Undertaking an organizational analysis is beneficial as it enables management to identify areas of weakness, and then find approaches for eliminating the problems.

Understanding the processes of strategic change is essential for successful strategic planning. Strategic planning is a process in which organizational leaders determine their vision for the future as well as identify their goals and objectives for the organization.

Organizational analysis is the process through which an organization evaluates its capability so as to have competitive advantage at market place. Organizational analysis is the process of appraising the growth, personnel, operations, and work environment of an entity. Undertaking an organizational analysis is beneficial as it enables management to identify areas of weakness, and then find approaches for eliminating the problems.