Strategic Management Questions and Answers Part-7

1. The acronym SWOT stands for
a) Special Weapons for Operations Timeliness
b) Services, Worldwide Optimization and Transport
c) Strengths, Weakness, Opportunities and Threats
d) None of the above

Answer: c

2. Which of the following statements best describes strategic management?
a) A process consisting of determining objectives and strategic actions to achieve those objectives
b) A process consisting of determining objectives, strategic actions to achieve those objectives, the implementation of desired strategy, and the monitoring of that strategy
c) A process consisting of the determination of direction, strategic actions to achieve objectives, the implementation of desired strategy, and monitoring of that strategy
d) A process for determining direction, strategic actions to achieve objectives, and the implementation of desired strategy

Answer: c

3. Which of the following is a key external factors that should be taken into account by a corporate strategy?
a) economic conditions
b) political conditions
c) legal environments
d) competition

Answer: d

4. Which one of the following would not be considered a functional strategy?
a) Financial
b) Marketing
c) Product-market
d) Operations

Answer: c

5. The two internal elements of SWOT analysis are
a) weaknesses and threats
b) opportunities and threats
c) strength and weaknesses
d) strengths and threats

Answer: c

6. International business has recently grown at such a rapid pace because of
a) stricter government policies on cross-border movements
b) development of institutions to support and facilitate trade
c) decreasing global competition
d) companies increased concerns with terrorism

Answer: b

7. Which of the following factors does not increase the bargaining power of a supplier?
a) Substitutability
b) Concentration of suppliers
c) A buyer is important to the supplier
d) High switching costs

Answer: c

8. Which of the following best describes the mode of international business used by most companies?
a) mixed ventures
b) foreign direct investment
c) joint ventures
d) exporting and importing

Answer: d

9. What is the danger of excessive monopoly power?
a) The organization will charge high prices
b) The organization will not attempt to cut costs
c) The organization will change strategy to seek to fully exploit its power
d) The organization will stifle innovation

Answer: c

10. Exports and imports apply mostly to which of the following?
a) services
b) merchandise
c) intellectual property
d) licensing

Answer: b