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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-7 section-1

Each section contains 100 MCQs on Strategic Management .
61
Which of the following is not a recognized element of corporate strategy?
Discuss
Answer & Solution
Answer: Option A
Solution:
Competitive advantage is not a recognized element of corporate strategy. Competitive advantage refers a company's ability to outperform rivals due to unique, high demand, or superior quality products or services.
62
__________ refers to the purposes an organization strives to achieve
Discuss
Answer & Solution
Answer: Option A
Solution:
Strategic Intent refers to the purposes an organization strives to achieve. Strategic Intent can be understood as the philosophical base of the strategic management process. It implies the purpose, which an organization endeavor of achieving. It is a statement, that provides a perspective of the means, which will lead the organization, reach the vision in the long run.
63
__________ strategy may require a firm to redefine its business and may involve divestment of a major product line or an SBU, abandon some markets or reduce its functions
Discuss
Answer & Solution
Answer: Option B
Solution:
Retrenchment Strategy may require a firm to redefine its business and may involve divestment of a major product line or an SBU, abandon some markets or reduce its functions. The Retrenchment Strategy is adopted when an organization aims at reducing its one or more business operations with the view to cut expenses and reach to a more stable financial position.
64
Which of the following statements is false? Formal strategic planning
Discuss
Answer & Solution
Answer: Option C
Solution:
Formal strategic planning should develop clear and rigid plans for the organization to implement is a false statement. Formal strategic planning is the most sophisticated form of plan- ning. It implies that a firm's strategic planning process involves explicit systematic. procedures used to gain the involvement and commitment of the stakeholders. most affected by the plan.
65
__________ strategy is often considered as entrepreneurial strategy where firm develops and introduce new products and markets or penetrate markets to build share
Discuss
Answer & Solution
Answer: Option A
Solution:
Expansion strategy is often considered as entrepreneurial strategy where firm develops and introduce new products and markets or penetrate markets to build share. An expansion strategy is synonymous with a growth strategy. A firm seeks to achieve faster growth, compete, achieve higher profits, grow a brand, capitalize on economies of scale, have greater impact, or occupy a larger market share.
66
Which of the following statements best describes the concept of strategic awareness?
Discuss
Answer & Solution
Answer: Option D
Solution:
Managers understanding the organizations strategy, its effectiveness statements best describes the concept of strategic awareness. Strategic awareness is a space where new ideas and innovation are constantly generated from a heightened non-contextual awareness. With this strategic awareness, leaders operate beyond the goal of competing to actively seize new and different possibilities.
67
Which of the following is associated with successful strategies?
Discuss
Answer & Solution
Answer: Option D
Solution:
Creating superior value to customers, Exploitation of key success factors and Creating and maintaining strategic fit are associated with successful strategies.
68
What is the recommended length of an effective mission statement?
Discuss
Answer & Solution
Answer: Option D
Solution:
There is no recommendation It can be as long as the management wants is the recommended length of an effective mission statement. To be effective, mission statements need to clarify the intentions of the business while being inspirational and meaningful to customers and employees. Successful mission statements may take time to create, but when they are developed correctly, they provide a company with clear direction and purpose.
69
Which type of strategies are of particular importance to global companies?
Discuss
Answer & Solution
Answer: Option D
Solution:
Corporate and competitive type of strategies are of particular importance to global companies. Competitive or business strategy defines for a given business the basis on which it will compete. Corporate strategy is typically decided in the context of defining the company's mission and vision, that is, saying what the company does, why it exists, and what it is intended to become.
70
Two reasons for mergers and acquisitions are
Discuss
Answer & Solution
Answer: Option D
Solution:
Two reasons for mergers and acquisitions are to provide improved capacity utilization and to gain new technology. Engaging in the promotional activities, introducing new ways by which product value can be increased, which in turn increases the production rate which leads to maximum capacity utilization.