Strategic Management MCQ Questions and Solutions with Explanations | Management

Economic trend can be exemplified by the increasing numbers of two income households in a society. An economic trend is an indicator that shows how a region or country is doing financially.

The primary benefit brought from restructuring is cost reduction. Cost reduction is to be understood as the achievement of real and permanent reduction in the unit cost of goods manufactured or services rendered without impairing their suitability for the use intended or diminution in the quality of product.

Technological advancements can create Competitive advantage besides many other existing powerful advantages for the businesses. Competitive advantage results from matching core competencies to the opportunities.

WO strategies improve internal weaknesses by taking advantage of external opportunities. ST strategies use a firm's strengths to avoid or reduce the impact of external threats.

The sketch of the BCG matrix, Market share is the label of the horizontal axis. The Boston Consulting group's product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products.

The sketch of the BCG matrix, Industry growth rate is the label of the vertical axis. BCG matrix (or growth-share matrix) is a corporate planning tool, which is used to portray firm’s brand portfolio or SBUs on a quadrant along relative market share axis (horizontal axis) and speed of market growth (vertical axis) axis.

An activity map is used to identify and understand strategic capability by mapping how the different activities of an organisation are linked together. An activity map is a diagnostic tool to identify your organisations competitive advantage. It connects your organisation's value proposition to the activities of your organisation that enable you to deliver this value proposition better than any competitors.

Industry/sector benchmarking compares Organisational performance between firms/public sector organisations in the same industry or sector. Competitive or Industry/sector benchmarking enables an organization to compare its performance with competitors trading in the same industry or sector. Functional or external benchmarking involves comparing your business activities with those of companies from other industries/sectors with similar processes.

Reg corporate strategies are not concerned with how the organization is going to compete in a specific business or industry.

Retrenchment can entail selling off land and buildings to raise needed cash, pruning product lines, closing marginal businesses, closing obsolete factories, automating processes, reducing the number of employees, and instituting expense control systems