1. All of the following are key opportunities and threats in external environment because of political, government and legal forces except:
a) Tax rate
b) Social security program
c) Cross boarder relationship
d) Patent law
2. Internal audit is done:
a) Before external audit
b) After external audit
c) Parallel to external audit
d) Vertical to external audit
3. Bargaining power of customers is high if:
a) Differentiation of competitors product is low
b) Switching costs are low for substitute products
c) The buyer has little information about the market
d) The buyer requires a high quality product for own production
4. The magnitude and changes that may affect an organization is survival owing to all of the following except:
a) Merger-mania
b) Demographics
c) E-commerce
d) Dubious firms
5. Which of the following requires a firm to establish annual objectives, devise, policies, motivates employees and allocate resources for the execution of strategies?
a) Strategy formulation
b) Strategy evaluation
c) Strategy implementation
d) Strategy estimation
6. Analysing the ext environment and the organisations resources are part of the:
a) Functional level planning process
b) Determining the mission of the business
c) Financial planning process
d) Strategic planning process
7. Which of the following is not one of Porters five competitive forces?
a) Bargaining power of suppliers
b) Threats of new entrants and barriers to entry
c) Threats of technological advances
d) Threats of substitutes
8. Strategic business units
a) Are found in one-business organisations
b) Carry out strategies assigned by the CEO
c) Develop their own unique way of competing
d) Implement the marketing function's strategic planning and management decisions
9. Marketing current products with possible modifications and range increases is also known as what?
a) Retrenchment
b) Market penetration
c) Product development
d) Market development
10. Retrenchment is:
a) When a company experiences declining profits and makes cutbacks to improve efficiency
b) When a company adopts a new strategic position for a product or service
c) The sale of the complete business, either as a single going concern or piecemeal to different buyers or sometimes by auctioning the assets
d) ely to take place when an organization lacks a key success factor for a particular market