MCQ Bank
Quadrant I in grand strategy matrix (comprehensive strategy formulation framework) contains the following set of strategies EXCEPT:
- A) Divestiture
- B) Product development
- C) Market development
- D) Market penetration
ABC Corporation can have competitive advantage over its competitor by taking all of the following actions EXCEPT:
- A) By having debt/equity ratio equals to 1
- B) By increasing customer base
- C) By altering product life cycle
- D) By increasing product quality
Conglomerate diversification is another name for which of the following?
- A) Related diversification
- B) Unrelated diversification
- C) Acquisition diversification
- D) Portfolio diversification
The IE Matrix consists of how many cells?
- A) Nine
- B) Eight
- C) Ten
- D) Seven
According to porter’s generic strategies, larger firms with greater access to resources typically compete on?
- A) Diversification
- B) Focus
- C) Cost leadership
- D) None of the given options
Which one of the following is not considered a defensive strategy?
- A) Integration
- B) Retrenchment
- C) Divestiture
- D) Liquidation
Which one of the following type of strategy that usually requires large research and development expenditures in order to seek increase sales by improving present products or services?
- A) Product development
- B) Market penetration
- C) Market development
- D) Forward integration
Identify the effective strategy when a firm competes in a no-growth or a slow-growth industry.
- A) Retrenchment
- B) Horizontal diversification
- C) Related diversification
- D) Unrelated diversification
Which one of the following strategy best describes “the organization focuses its effort on one particular segment and becomes well known for providing products/services within the segment”?
- A) Integration strategies
- B) Niche strategies
- C) None of the given options
- D) Growth strategies
The Boston Consulting Group (BCG) Matrix falls in which one of the following stages in comprehensive strategy formulation framework?
- A) Stage-2 (Matching stage)
- B) Stage-1 (Input stage)
- C) Stage-3 (Decision stage)
- D) Stage-1 & 2
If the average score of a firm in competitive advantage (CA) & financial strength (IS) is -5 & +2, identify the strategic position of a firm while undertaking the SPACE Matrix.
- A) Competitive
- B) Conservative
- C) Defensive
- D) Aggressive
The organizations, where resource allocation is not based on strategic-management approach to decision making, which approach is used for resource allocation?
- A) On political or personal factors
- B) Relative cost of each resources
- C) Relative importance of departments
- D) Financial budget
A firm that is involved in two or more distinct businesses is known as:
- A) A multinational corporation
- B) A diversified company
- C) A ventured company
- D) A restructured company
A & Ammar is the sole manufacturer of leather goods in Pakistan. Government has lowered the tax rates for this industry keeping in view of promoting other new firms to enter this industry. Lowering the tax rates of this industry will confront A & Ammar with which of the following?
- A) Strength
- B) Opportunity
- C) Weakness
- D) Threat
Introducing present products or services into a new geographic area is known as?
- A) Market penetration
- B) Product development
- C) Market development
- D) None of the given options
SPACE matrix contains four-quadrant named aggressive, conservative, defensive, or competitive strategies. The axes of SPACE matrix represent which of the following two internal dimensions?
- A) ES & IS
- B) FS & CA
- C) FS & ES
- D) CA & IS
SPACE matrix contains four-quadrant named aggressive, conservative, defensive, or competitive strategies. The axes of SPACE matrix represent which of the following two external dimensions?
- A) CA & IS
- B) FS & CA
- C) FS & ES
- D) ES & IS
ABC firm is facing high production costs in Pakistan due to expensive raw material. The firm is formulating a strategy of capturing European market because of low priced raw material and high demand of their products in Europe. Keeping in view the mentioned situation which of the following strategies ABC firm must pursue?
- A) WT Strategy
- B) SW Strategy
- C) WO Strategy
- D) ST Strategy
Which of these is an attractive strategy for a cash cow division?
- A) Backward integration
- B) Horizontal integration
- C) Conglomerate diversification
- D) Concentric diversification
If the average score of a firm in competitive advantage (CA) & financial strength (IS) is -2 & +4, identify the strategic position of a firm while undertaking the SPACE Matrix.
- A) Competitive
- B) Defensive
- C) Aggressive
- D) Conservative