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CS302 solved 2010 SPRING 2011 assignment STA301 mth302 papers MTH202 MKT621 cs101 MCM301 cs401 midterm term mgt502 paper quiz cs403 final cs605 FALL mth301 MTH101 quran
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 cs507 spring 2009 mid term paper

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PostSubject: cs507 spring 2009 mid term paper   Sun May 23, 2010 8:35 pm


Spring 2009

MGT603- Strategic Management (Session - 1)

Question No: 1 ( Marks: 1 ) - Please choose one

Various job titles of a strategist may include all of the following EXCEPT:


Foreman P6


Chief executive officer

Question No: 2 ( Marks: 1 ) - Please choose one

According to ‘Peter Drucker’, what is the prime task of strategic management?

To develop the vision of the business

Effectively evaluate the strategies

To think through the overall mission of a business P4

Develop alternative set of strategies

Question No: 3 ( Marks: 1 ) - Please choose one

Strategist is an individual who is involved in the strategic management process, thus

may be known as:

Member board of director

President P6

Division manager

All of the given options

Question No: 4 ( Marks: 1 ) - Please choose one

External opportunities and threats that can significantly benefit or harm an

organization may include all of the following EXCEPT:


Competitive trends

Technological changes

Research and development P7

Question No: 5 ( Marks: 1 ) - Please choose one

The S & T Organization has an established "game plan" for its business operations.

This game plan reflects the company's awareness of how and where it should

compete and against whom the competition should take place. It can be stated that

this organization has an established

Goal not sure




Question No: 6 ( Marks: 1 ) - Please choose one

Identify the term that is known as a “mean of providing guidance to actions and

procedures, including how resources are to be allocated and how tasks assigned to

the organization might be accomplished”.





Broadly defined, policy refers to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals. Policies are instruments for strategy implementation.

Question No: 7 ( Marks: 1 ) - Please choose one

All of the following statements are true about a firm’s mission statement EXCEPT:

A mission statement directly contributes positively to financial performance P25

A mission statement does not directly contribute positively to financial performance

A mission statement should not provide useful criteria for selecting among

alternative strategies

Primary reason to develop a mission statement is not to attract the customers

Question No: 8 ( Marks: 1 ) - Please choose one

All of the following external forces directly affect an organization EXCEPT:

Market segmentation strategies

Types of products/services offered

Management structure of an organization P28

Choice of businesses to acquire or sell

Question No: 9 ( Marks: 1 ) - Please choose one

“If a strategist has identified that the market growth rate is 8 %, the number of

sellers in industry are 52 and the industry's products are differentiated.” Which of

the following industry's success factor he is exploring?

Social forces

Competitive forces

Social forces

Economic forces

Question No: 10 ( Marks: 1 ) - Please choose one

Suppose, the value of the currency of a certain country falls, what can be the effect

on companies in Different Industries and in Different Locations in that country


(ANS required)

Significant and equal

Marginal and equal

Significant and unequal

Insignificant and unequal

Question No: 11 ( Marks: 1 ) - Please choose one

Which one variable falls under the category of the Social, Cultural, Demographic,

and Environmental Variable?

Propensity of people to spend

Buying habits P34

Level of disposable income

Income differences by region

Question No: 12 ( Marks: 1 ) - Please choose one

Local, state, and national elections, world oil, currency, and labor markets, number

of patents, special tariffs are the examples of which one of the following?

Economic forces

Political, governmental, and legal forces P37

Social, cultural and, demographic forces

Competitive forces

Question No: 13 ( Marks: 1 ) - Please choose one

Which of the following best describes this statement; “A systematic and ethical

process for gathering and analyzing information about the competition’s activities

and general business trends to further a business’ own goals”?

External assessment

Industry analysis

Competitive intelligence program P43

Business ethics

Question No: 14 ( Marks: 1 ) - Please choose one

Which of the following can be considered as barriers to entering a market or


The lack of economies of scale and experience and low levels of brand loyalty

The presence of large number of rivals already in the industry (not sure)

Relatively large capital requirements and industry have economies of scale

The absence of tariffs, trade restrictions, and/or government-mandated regulations

Question No: 15 ( Marks: 1 ) - Please choose one

Supplier bargaining power is not likely to pose strong competitive pressure when

which of the following situation is prevailing?

Buying firms are looking for suppliers with superior just-in-time supply

capabilities and low prices

The suppliers furnish a critical part or component that is in relatively short supply

Buying firms collaborate closely with their key suppliers to achieve mutual


The products of alternative suppliers are highly differentiated, making the cost of

switching relatively high (not sure)

Question No: 16 ( Marks: 1 ) - Please choose one

Which of the following is a collection of firms that offers similar products or services?

such as IBM, Apple, and Dell?





Question No: 17 ( Marks: 1 ) - Please choose one

While preparing an External Factor Evaluation Matrix, a total score of 0.8 indicates


Firm is taking advantages of strengths and avoiding threats

Firm is taking no advantage of opportunities and is avoiding threats

Firm is not taking advantages of opportunities and is not avoiding threats P45

Firm is taking advantage of opportunities and is avoiding the threats

Question No: 18 ( Marks: 1 ) - Please choose one

Assigning rating '2' to an internal factor in IFE matrix indicates what?

Major weakness

Minor weakness P47

Minor strength

Major strength

Question No: 19 ( Marks: 1 ) - Please choose one

Which of the following are signs of weakness in a company's competitive position?

(ANS Required)

A return-on-equity is below 25% and earnings per share is less than Rs. 2.00

A price set by the firm higher than the market leader

A declining market share, poor product quality and few sales in market

Lower revenues and profit margin and narrow product line than the market leader

Question No: 20 ( Marks: 1 ) - Please choose one

What is the essential bridge between the present and the future that increases the

likelihood of achieving desired results?


Planning P54




Planning is the: Start of the process

Bridge between present and future, Increases likelihood of achieving desired results

Question No: 21 ( Marks: 1 ) - Please choose one

Sana has spent a day in a session where the future of her company was discussed.

The people involved were trying to determine what the role of their company was as

the 21st century approaches. Goals were then developed based upon their vision of

the company's mission. Sana spent her day on which of the following process?





Question No: 22 ( Marks: 1 ) - Please choose one

How Synergy can numerically be expressed?

2+2=3 (NAGATIVE)




Ref: [You must be registered and logged in to see this link.]

Question No: 23 ( Marks: 1 ) - Please choose one

Which of the following can reveal the demographic characteristics of an organization’s?


Test marketing

Customer profiling

Market development

Vision statement


The information generated by customer analysis can be essential in developing an effective mission statement. Customer Profiles can reveal the demographic characteristics of an organization's customers. P61

Question No: 24 ( Marks: 1 ) - Please choose one

Test marketing is commonly applied by which of the following companies?

Industrial goods companies

Consumer goods companies P62

Public sector companies

Private sector companies

Question No: 25 ( Marks: 1 ) - Please choose one

All of the following are the consideration for a company when conducting test

marketing EXCEPT:

What advertising channel should be used for test? P61

How many cities to include for test?

What information to collect during the test?

What action to take after the test has been completed?

Question No: 26 ( Marks: 1 ) - Please choose one

Which of the following ratios is least likely to be helpful in evaluating a firm’s decision?

Regarding dividend?

Earnings-per-share ratio

Long-Term Debt-to-Equity Ratio

Dividends-per-share ratio

Price-earnings ratio


Three financial ratios that are helpful in evaluating a firm's dividend decisions are the earnings-per share Ratio, the dividends-per-share ratio, and the price-earnings ratio.

Question No: 27 ( Marks: 1 ) - Please choose one

Debt-to-equity ratio is one of the types of which ratios?


Leverage P65



Question No: 28 ( Marks: 1 ) - Please choose one

In strategy formulation phase, what can be the problem when only financial ratios

are used to measure organizational performance?

(Ans required)

They need to be compared with competitors’

They are only understandable by accountants

There are many different measures available

The measures are usually inconsistent

Question No: 29 ( Marks: 1 ) - Please choose one

All of the following are functional support roles of Management Information System


Recording and storing accounting records

Recording and storing inventory data

Recording and storing business intelligence data

The enhanced ability to explore "what if"

(See p82 Topic functional support roles)

Question No: 30 ( Marks: 1 ) - Please choose one

------------------ become/s information only when it/they is/are evaluated, filtered,

condensed, analyzed and organized for a specific purpose, problem, individual, or




Competitive advantages

Competitor analysis


Data becomes information only when it is evaluated, filtered, condensed, analyzed, and organized for a specific purpose, problem, individual, or time

Question No: 31 ( Marks: 1 ) - Please choose one

Which of the following is a drawback or limitation of Horizontal Integration?

Synergies may be more imaginary than real

It can increase suppliers' and buyers' bargaining power

Economies of scale are likely to be decreased

Both the first & third options are correct

Disadvantage of Horizontal integration:

Synergies maybe more imaginary than real

Substitutes market is often very different. Challenge occurs to management during acquisition.

Reduction in competition may lead to anti-trust issues. [You must be registered and logged in to see this link.]

Question No: 32 ( Marks: 1 ) - Please choose one

The business strategy decided upon by ABC Corporation is one that engages it in

production of goods that are low in cost as compared to its competitors. ABC

Company is perusing which one of the following strategy?

Differentiation strategy

Focus strategy

Niche strategy

Cost leadership strategy (see topic p85)

Question No: 33 ( Marks: 1 ) - Please choose one

Where usage rate of present customers of the company can be increased

significantly and the current markets are not saturated, which strategy would be

effective for the company to follow?

Market Penetration

Product Development

Market Development



Four guidelines when market penetration may be an especially effective strategy are:

Current markets not saturated

Usage rate of present customers can be increased significantly

Market shares of competitors declining while total industry sales increasing

Increased economies of scale provide major competitive advantages

Question No: 34 ( Marks: 1 ) - Please choose one

Which of the followings involves the substantial modification of existing products or

the creation of new but related products that can be marketed to current customers

through established channels?



Product development

Market development


Product development is a strategy that seeks increased sales by improving or modifying present products or services.

Question No: 35 ( Marks: 1 ) - Please choose one

Rose Company markets new products or services that have no technological or

commercial synergies with current products, but which may appeal to new groups

of customers. Which strategy is being adopted by Rose Company?

Horizontal diversification

Horizontal integration

Conglomerate diversification

Backward integration


Conglomerate diversification means Adding new, unrelated products or services for new customer.

Question No: 36 ( Marks: 1 ) - Please choose one

XYZ Corporation has decided to cut back on its product lines and to reduce the size

of its operations because it can support no longer commitments needed to sustain it.

XYZ is going to pursue which of the following strategy?


Conglomerate diversification



Retrenchment: Explanation

Regrouping through cost and asset reduction to reverse declining sales and Profit

Question No: 37 ( Marks: 1 ) - Please choose one

Ahmad Textiles and Superior Textiles have come with each other in cross-manufacturing agreement, the firms are going for which of the following?



Joint venture (Not sure)


Question No: 38 ( Marks: 1 ) - Please choose one

Mergers and acquisitions are created for all of the following reasons EXCEPT:

For gaining new technology

For reduction of tax obligations

For gaining economies of scale

For increase in number of employees

Ref: Some of the potential advantages of mergers and acquisitions include achieving economies of scale, combining complementary resources, garnering tax advantages, and eliminating inefficiencies.

Question No: 39 ( Marks: 1 ) - Please choose one

Which of the following enables the firm to create superior value for its customers

and superior profits for itself in comparison to its rival firms?

Competitive advantage

Comparative advantage

Differential advantage P87

Suitable advantage

Question No: 40 ( Marks: 1 ) - Please choose one

Non-financial benefits of strategic management include all of the following


Enhanced awareness of threats

Reduced resistance to change

Increase in sales P11

Better awareness of external threats

Question No: 41 ( Marks: 5 )

A good mission statement should include “Customer orientation”, what does it

mean? Explain it with the help of simple examples.

Question No: 42 ( Marks: 5 )

What are strengths and weaknesses of an organization? Explain with the help of


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