MCQ Bank
A & C Corporation currently possesses a low share of its available market. Moreover, this company's portfolio reveals it has extremely low market growth. A & C Corporation is most likely to be classed as which one of the following?
- A) Cash cow
- B) Star
- C) Question mark
- D) Dog
Which of the following stages of "Strategy Formulation Framework" involves developing Internal-Factor Evaluation Matrix?
- A) Output stage
- B) Matching stage
- C) Input stage
- D) Decision stage
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?
- A) Retrenchment
- B) Market Penetration
- C) Market Development
- D) Product Development
On the x-axis of IE Matrix, an IFE total weighted score of 1.50 depicts what?
- A) A weak internal position
- B) A low internal position
- C) An average internal position
- D) A strong internal position
In BCG matrix, identify the right quadrant for “Cash Cows”.
- A) Quadrant IV
- B) Quadrant II
- C) Quadrant III
- D) Quadrant I
Dell Inc. began producing smart phones, which are similar to Apple’s iPhone. Dell Inc. is following which one of the following type of strategy?
- A) Horizontal diversification
- B) Unrelated diversification
- C) Product development
- D) Related diversification
Cola Next introduces its products in the Gilgit-Baltistan region is an example of?
- A) Market development
- B) None of the given options
- C) Product development
- D) Market penetration
If ‘Rafhan Foods’ launches a new ‘Kheer’ recipe in its custard brand series, it will be an example of which strategy?
- A) Divestiture
- B) Concentric Diversification
- C) Retrenchment
- D) Conglomerate Diversification
A firm’s division with a high relative market share position in a low-growth industry can be referred to which of the following category?
- A) Star
- B) Dog
- C) Question mark
- D) Cash cow
Business units that have low market share and are operating in slow-growing industry should choose all of the following EXCEPT:
- A) New investments
- B) Distribution efficiency
- C) Production efficiency
- D) Product innovation
Following are the examples of actions taken while implementing strategies EXCEPT:
- A) Establishing cost-control procedures
- B) Developing financial budgets
- C) Altering sales territories
- D) Conducting the SWOT analysis
In the SPACE analysis, what does (-1, -5) strategy profile portray?
- A) A highly competitive firm operating in an unstable environment
- B) A financially strong firm operating in an unstable environment
- C) A firm with weak competitiveness operating in stable environment
- D) A highly competitive firm operating in a weak industry
In the SPACE analysis, what does (+6, +3) strategy profile portray?
- A) A stable environment with strong financial strength
- B) A strong industry with strong financial strength
- C) A stable environment for highly competitive firm
- D) A strong industry operating in stable environment
The Strategic Position and Action Evaluation (SPACE) Matrix falls in which one of the following stages in comprehensive strategy formulation framework?
- A) Stage-2 (Matching stage)
- B) Stage-3 (Decision stage)
- C) Stage-1 (Input stage)
- D) Stage-1 & 2
The SPACE matrix of XYZ company shows that the coordinates of its directional vector are (-5, -5). What strategy would you recommend for the ABC Company?
- A) Concentric diversification
- B) Joint venture
- C) Backward integration
- D) Market development
The last remedy for Quadrant II firm is to follow which strategy?
- A) Divestiture
- B) Market development
- C) Forward integration
- D) Horizontal integration
Which of the following is NOT an advantage of a functional structure?
- A) Quick access to technical expertise
- B) Centralized decision making and accountability
- C) Excellent Communication and coordination
- D) Increased capacity for specialization
Which of the following are Porter's generic strategies?
- A) Low price, differentiation, focus
- B) Price leadership, differentiation, focus
- C) Low cost, differentiation, focus differentiation
- D) Cost leadership, differentiation, focus
In the SPACE analysis, what does (+7, -6) coordinates depict?
- A) A highly competitive firm operating in an unstable environment
- B) A firm operating in a strong industry with an unstable environment
- C) A financially strong firm operating in an unstable environment
- D) A firm operating in a strong industry with a stable environment
Which of the following is a strategy in which companies create a co-owned business that operates for their mutual benefit?
- A) Joint venture
- B) Retrenchment
- C) Divestiture
- D) Liquidation