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 MGT603 MIDTERM SPRING 2011

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PostSubject: MGT603 MIDTERM SPRING 2011   Fri May 13, 2011 6:45 pm

Question No: 1 ( Marks: 1 ) - Please choose one
All of following are the factors of organizing, except
Job enrichment
Unity of command
Job design
Job analysis

Question No: 2 ( Marks: 1 ) - Please choose one
All of the following fall under the category of ‘Process” function of production
management EXCEPT:
► Choice of technology
► Quality assurance
► Process flow analysis
► Transportation analysis

Question No: 3 ( Marks: 1 ) - Please choose one
Which component of a mission statement addresses the basic beliefs, values,
aspirations, and ethical priorities of the firm?
► Technology
► Philosophy
► Customers
► Self-concept

Question No: 4 ( Marks: 1 ) - Please choose one
“Identifying and evaluating social, political, economic, technological and competitive
trends and events”; which of the followings best describes this statement?

► Developing an effective mission statement
► Conducting an internal audit
► Performing an external audit
► Formulating strategy

Question No: 5

A mission statement should “reconcile interests among diverse stakeholders”. What
does it mean?
► All shareholders must be satisfied
► Shareholders should be given preference over customers
► Firm will devote attention to meeting claims of various stakeholders
► Firm will devote its attention towards the maximization of shareholders value

( Marks: 1 ) - Please choose one

Question No: 6 ( Marks: 1 ) - Please choose one
Which of the following is sometimes referred as “the mystery approach to decision
making, when subordinates are left to figure out what is happening and why”?
► Managing by hope
► Managing by extrapolation
► Managing by crisis
► Managing by subjective

Question No: 7 ( Marks: 1 ) - Please choose one
Which of the following allows an organization to test alternative marketing plans
and to forecast future sales of new products?
► Marketing
► Advertisement
► Test marketing
► Customer analysis

Question No: 8 ( Marks: 1 ) - Please choose one
What refers to a strategy of seeking ownership of or increased control over a firm’s
competitors?
► Forward integration
► Conglomerate diversification
► Backward integration
► Horizontal integration

Question No: 9 ( Marks: 1 ) - Please choose one
______________can be the most important part of an external audit for firms that
depend heavily on government contracts.
Environmental forecasts
Demographic forecasts
Technological forecasts

Political forecasts

Question No: 10 ( Marks: 1 ) - Please choose one
Suppose, the value of the currency of a certain country falls, what can be the affection
companies in Different Industries and in Different Locations in that country respectively?
► Significant and equal
► Marginal and equal
► Significant and unequal
► Insignificant and unequal

Question No: 11 ( Marks: 1 ) - Please choose one
Assigning 1 rating to a key external factor indicates that:
► Response is superior
► Response is above average
► Response is average
► Response is poor

Question No: 12 ( Marks: 1 ) - Please choose one
The steps required to perform cost/benefit analysis include all BUT:
► comparing the total costs with the total benefits
► Figure out the total costs associated with a decision
► Approximation of the total benefits from the decision
► Adding the total cost and total benefit

Question No: 13 ( Marks: 1 ) - Please choose one
Which of the following environment includes all those factors which affect the
organization and is itself affected by the organization?
► Task environment
► Social environment
► External environment
► Internal environment

Question No: 14 ( Marks: 1 ) - Please choose one
Which of the following period strategic management was considered to be cure for all
problems?
Mid 1950s to mid 1960s
Mid 1960s to mid 1970s
Mid 1970s to mid 1980s
Mid 1980s to mid 1990s

Question No: 15

( Marks: 1 ) - Please choose one

Waseem & Sons primarily want to gain control over the prices charged to consumers.
What strategy will most likely be followed by Waseem & Sons?
► Market penetration
► Product development
► Forward integration
► Concentric Diversification

Question No: 16 ( Marks: 1 ) - Please choose one
Which of the following is a key merit of strategic management?
► Strategic management enables an organization to be proactive
► Strategic management enables an organization to avoid the threats
► Strategic management enables an organization to defeat their competitors
► Strategic management enables an organization to foresee into the future

Question No: 17 ( 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
Develop alternative set of strategies

Question No: 18

Political variables have a significant effect on which one of the following?
Formulation and implementation of strategy
Formulation and evaluation of a strategy
Implementation and evaluation of a strategy
Formulation, implementation and evaluation of a strategy

( Marks: 1 ) - Please choose one

Question No: 19 ( Marks: 1 ) - Please choose one
The investment decision is also called ___________________
► Capital budgeting
► Financing decision
► Dividend decisions
► None of the mentioned options

Question No: 20 ( Marks: 1 ) - Please choose one
Carefully prepared statements of vision and mission are widely recognized as
The last step of strategic management
Middle level steps in strategic management
The first step in strategic management
None of the mentioned options

Question No: 21 ( Marks: 1 ) - Please choose one
Mostly large firms are initiating plans to acquire another unrelated business
because it represents the most promising investment opportunity that is available to
them. This type of strategic plan is known as:
► Conglomerate diversification
► Backward integration
► Concentric diversification
► Divestiture

Question No: 22 ( 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

Question No: 23 ( Marks: 1 ) - Please choose one
What will happen to the Pakistani exports in overseas markets when there is a
strong
value of rupee?
► Pakistani exports will be less expensive
► Pakistani exports will be more expensive
► Pakistani exports will be more attractive
► Pakistani exports will be desirable

Question No: 24 ( Marks: 1 ) - Please choose one
Which one of the following is NOT is a basic mission of a competitive intelligence
program?
► To provide a general understanding of an industry
► To provide a general understanding of a company’s competitors
► To identify industry executives who could be hired by the firm
► To identify potential moves a competitor might make that would endanger a firm

Question No: 25 ( Marks: 1 ) - Please choose one
Which of the following should be created first and foremost by a strategist?
► Strategy
► Objectives
► Vision
► Mission

Question No: 26

Which of the following is not a component of Economic Forces?

( Marks: 1 ) - Please choose one

Demand shifts for goods/services
Ethnic balance changing
Income differences by region/customer
Price fluctuations

There were 2 more questions which I forget.

Question No: 29

( Marks: 3 )

What are strengths and weaknesses of an organization? Explain with examples.

Question No: 30

( Marks: 3 )

Vertical integration is the degree to which the firm owns its upstream and
its downstream buyers. What can be the possible benefits if the firm goes
for vertical integration?

Question No: 31

List down and explain five steps that comprise an effective framework for
conducting an IFE Matrix.

( Marks: 5 )

Question No: 32

( Marks: 5 )

Mr. Aslam is a finance manager of a firm. He is asked to prepare a financial
ratio analysis. What can be the possible limitations of his analysis?


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