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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-6 section-3

Each section contains 100 MCQs on Strategic Management .
51
Firms that practice unrelated mergers___________
Discuss
Answer & Solution
Answer: Option A
Solution:
Firms that practice unrelated mergers are conglomerate. A conglomerate merger is a merger between firms that are involved in totally unrelated business activities.
52
Swot Analysis is done to know the
Discuss
Answer & Solution
Answer: Option D
Solution:
Swot Analysis is done to know the Threats, strengths Weaknesses and opportunities. SWOT Analysis is a simple but useful framework for analyzing your organization's strengths, weaknesses, opportunities, and threats. It helps you to build on what you do well, to address what you're lacking, to minimize risks, and to take the greatest possible advantage of chances for success.
53
A company specializing in producing mass market cars acquires a company which specializes in financial services. The new company can now offer financial services to its car purchasers. What form of diversification is this?
Discuss
Answer & Solution
Answer: Option B
Solution:
A company specializing in producing mass market cars acquires a company which specializes in financial services. The new company can now offer financial services to its car purchasers. Unrelated form of diversification is this. Unrelated Diversification is a form of diversification when the business adds new or unrelated product lines and penetrates new markets.
54
Which of these is not a factor causing weak synergy?
Discuss
Answer & Solution
Answer: Option D
Solution:
Making too many resources available to the integration program is not a factor causing weak synergy. Weak synergy was defined there as group performance that exceeds the performance of its average member when working alone.
55
Which of these is not one of Drucker's (1982) five rules for successful acquisitions?. Determine the exact contribution the organization can make to the acquiring company.
Discuss
Answer & Solution
Answer: Option B
Solution:
Within a year, promote managers across company boundaries is the exact contribution the organization can make to the acquiring company.
56
Many merger discussions breakdown or are abandoned. Which of these is not a reason why?
Discuss
Answer & Solution
Answer: Option C
Solution:
Many merger discussions breakdown or are abandoned. The bid is deemed hostile leading to aggressive defense is not a reason. A merger refers to an agreement. It is a mutually binding contract in which two companies join together to form one company.
57
Research into diversification and acquisition can be divided into 4 schools. Which of the following is not one of the schools?
Discuss
Answer & Solution
Answer: Option A
Solution:
Research into diversification and acquisition can be divided into 4 schools. Environmental is not one of the schools. Diversification acquisition is a corporate action whereby a company takes a controlling interest in another company to expand its product and service offerings.
58
If a business is blinkered, technology shy, and 'impoverished', what does this signal?
Discuss
Answer & Solution
Answer: Option D
Solution:
Strategic leaders live in the details, and they know everything will likely not happen as it is supposed to. Therefore, these individuals will attempt to anticipate problems and plan for them. They will look for weak areas and will try to work with teams to keep from falling into a problem area.
59
When a company is experiencing an economic recession this is a good time to do what?
Discuss
Answer & Solution
Answer: Option B
Solution:
When a company is experiencing an economic recession this is a good time to refocus. The ReFocus Group assists organizations to develop and implement dynamic strategic plans that are valuable to the organization, helping to define its culture, focus its long-term vision, and identify short-term actions steps that motivate proaction.
60
Turnaround strategies involve changes at what level of strategy?
Discuss
Answer & Solution
Answer: Option C
Solution:
Turnaround strategies involve changes at Competitive level of strategy. Turnaround strategy means to convert, change or transform a loss-making company into a profit-making company. It means to make the company profitable again. The main purpose of implementing a turnaround strategy is to turn the company from a negative point to a positive one.