Strategic Management MCQ Questions and Solutions with Explanations | Management

One with no specific objectives, that is fully flexible, using opportunism to seize the main chance at the right moment is an emergent strategy. Emergent strategy is a set of actions, or behavior, consistent over time, “a realized pattern [that] was not expressly intended” in the original planning of strategy. When a deliberate strategy is realized, the result matches the intended course of action.

Becoming blinkered by the success of one strategy to the detriment of others must be the strategic visionary leader avoid in order to ensure the prolonged success of a strategy.

Explosive growth cannot be maintained indefinitely. Sooner or later, the rate of growth slow and the industry enters the Shakeout stage. Shakeout usually refers to the consolidation of an industry. Some businesses are naturally eliminated because they are unable to grow along with the industry or are still generating negative cash flows.

The five forces model developed by Michnal E Porter has been the most commonly used analytical tool for examining competitive environment. This is useful, because, when you understand the forces in your environment or industry that can affect your profitability, you'll be able to adjust your strategy accordingly.

One that evolves according to past experiences and changing circumstances is an incremental strategy. Incremental strategic planning identifies the changes an organization needs to implement in order to improve specific conditions, whether these are community conditions or organizational conditions. Incremental plans provide very clear direction on political and funding priorities.

Too many controls at the expense of flexibility one of the strategic pressures that could weaken an unprepared organization.

The first of Porters Five Forces model is the threats of new entrants. Threat of new entrants refers to the threat new competitors pose to existing competitors in an industry. Therefore, a profitable industry will attract more competitors looking to achieve profits.

Bargaining power of buyers refers to the ability of buyers to bargain down prices charged by firms in the industry or driving up the costs of the firm by demanding better product quality and service. The Bargaining Power of Buyers, one of the forces in Porter's Five Forces Industry Analysis Framework, refers to the pressure that customers/consumers can put on businesses to get them to provide higher quality products, better customer service, and/or lower prices.

In military analogy, Credibility is the outcome if in strategy creation the organization has both capability and intent. Strategic credibility has to do with how favourably key stakeholders view the strategic foundations of the firm.

Innovation is the key variable in executing visionary strategy creation at the competitive strategy level. Innovation involves deliberate application of information, imagination and initiative in deriving greater or different values from resources, and includes all processes by which new ideas are generated and converted into useful products.