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BUSINESS POLICY AND STRETEGY ( MODULE 2 PGP AVIATION )

( assignment submitted by me ) ( 1st attempt )

Question 1 Select most appropriate option

Retrenchment would be an effective strategy when an organization

1.Has shrunk so quickly that major internal reorganization is needed.

2.Is one of the stronger competitors in a given industry.
3.Is plagued by inefficiency, low profitability, poor employee morale and pressure from
stockholders to improve performance.
4.Has decided to capitalize on opportunities, maximize threats, take advantage of strengths
and overcome weaknesses.
5.does not have a clearly distinctive competence and has failed to meet its objectives and
goals consistently over time.

2.. Select most appropriate option

Usually, external opportunities and threats are
1.Uncontrollable by a single organization.
2.Controlled by governments.
3.Not as important as internal strengths and weaknesses.
4.Key functions in strategy implementation.
5.key functions in strategy exploitation.

3.. Select most appropriate option

Why do changes in company strategy often require changes in the way an organization is structured

1. Structure dictates how goals and objectives will be established.

2. Structure dictates authority over projects.
3. Structure dictates how resources will be obtained.
4. Structure dictates strategy.
5. Structure dictates how money is spent.

4.. Select most appropriate option

Which of the following is best identified as being an adaptation of the divisional structure
1.Vertical Integration
2.Strategic business units
3.Joint venture
4.None of the given options

5.. Fill the most appropriate word in the sentences.

A strategy is a gamesmanship or administrative course of action designed to achieve success in
the fact of the difficulties
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6.. State true or false

Coordination is achieved through hierarchy of authority
1. True
2. False

7.. Fill the most appropriate word.

Market penetration is the name given to a growth strategy where the business focuses on selling
existing products into existing markets

8.. State true or false

The underpinnings of strategic management hinge on managers gaining an understanding of
competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders and
customers worldwide.
1. True
2. False

9.. State true or false

Functional strategies are generally formulated in all key functional areas
1. True
2. False

10. Select most appropriate options

The idea of corporate restructuring is to allow the company to
1. Continue functioning in some manner
2. Review organisation
3. Look after profit and sales
4. Earn employee satisfaction

11. Fill the most appropriate word.

The grand fallacy of STRATEGIC planning is the belief that due to the fact that analysis
encompasses synthesis, strategic planning is strategy making

12.. State true or false

A buyout is a transaction in which a person, group of people, or organization buys a company or a
controlling share in the stock of a company
1. True
2. False

13.. Fill the most appropriate word in the sentences.

Techniques of portfolio analysis have their greatest applicability in developing strategy at the
Corporate level
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14. The below question may have more than 1 correct answer.
Aim of a portfolio analysis is -
1. Analyse its current business portfolio and decide which SBUs should receive more
or less investment,
2. Develop growth strategies for adding new products and businesses to the portfolio
3. Decide which businesses to retained.
4. Gain confidence of shareholders

15. Fill the most appropriate word in the sentences.

A responsibilities section, indicates which parties and organizations are responsible for carrying out
Individual policy Statements

16.. The below question may have more than 1 correct answer.
Cortical dimension of supportive culture are -
1. Clarity of direction
2. Decision making structure and processes
3. Management interference
4. Teamwork

17. Fill the most appropriate word in the sentences.

Contractual entry modes: These are non-equity associations between an international company and
a company in the overseas markets.

18. Fill the most appropriate word in the sentences.

pattern of ownership and control

control. And composition of liability and assets mix of the firm

is a comprehensive process by which a company can consolidate its business operations and
strengthen its position for achieving the desired objectives

19. Fill the most appropriate word in the sentences.

Porter’s theory is an institutional analysis

20.. Fill the most appropriate word in the sentences.

Downstream capabilities reflect strengths in BRAND marketing.

21. State true or false

Generic strategies are -
1. Cost leadership, differentiation, focus strategies
2. Corporate strategies
3. Business strategies
4. Functional level strategie
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22….The below question may have more than 1 correct answer.

To enhance the shareholder value, the company should continuously evaluate its:
1. Portfolio of businesses
2. Capital mix,
3. Debt equity ratio
4. organisation sales

23….Select the most appropriate option

Who provided five definitions of strategy
1. Henry Mintzberg
2. Dess, Lumpkin & Taylor
3. Pearce and Robinson
4. Henry Robert

24.. Select most appropriate options

Activities involved in acquiring the various resource inputs needed to produce the product or the
service
1. Operations
2. Technology development
3. Procurement
4. Operations

25.. Fill the most appropriate word in the sentences.

Policy documents often come with the endorsement or signature of the
Executive powers within an organization

26…The below question may have more than 1 correct answer.

Product and services can be differentiated through
1. Product features
2. Linkage between functions
3. Profte margin
4. Brand extension

27.. State true or false

Application of the experience curve to problem solving and policy determination requires
managerial inputs
1. True
2. False

28. Fill the most appropriate word in the sentences.

The charismatic leader has the ability to inspire and motivate people to do more than what they
would normally do, despite obstacles and personal sacrifice
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29.. State true or false

The objective of globalization should be to identify and command assets that can be leveraged for
the particular market.
1. True
2. FalsE

30.. Select the most appropriate option

What is true about diversification
1. Diversification entails entry into new markets with new products
2. Major tasks include devising actions to improve long-term performance of a
corporation’s portfolio of businesses
3. Mandatory for organisation
4. Always a loss situation for organisation
31.. State true or false
Direct exports do not involve home country intermediaries and marketing is done either through
direct agent/distributor or through direct branch/subsidiary in the overseas markets
1. True
2. False

32.. State true or false

The process of financial restructuring may be undertaken as a means of eliminating waste from the
operations of the company
1. True
2. False

33.. Fill the most appropriate word in the sentences.

Corporate strategy sets the guides and PRINCIPLES for the rest of the functions to follow

34… Fill the most appropriate word in the sentences.

FINANCIAL restructuring is the reorganization of the financial assets and liabilities of a corporation
in order to create the most beneficial financial environment for the company

35… State true or false

Porter States that a country can achieve national advantages in an industry or market segment, if the
domestic demand in that country provides domestic suppliers a clearer picture of demand trends
and earlier than to foreign competitors
1. True
2. False

36.. The below question may have more than 1 correct answer.
Business Policy refers to
1. Decision about future of on-going enterprise
2. Only top management of organisation takes decisions concerning policy
3. Future prospects are not the point of consideration
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4. Top ,middle and lower level management is involved in making decisions

37…Fill the most appropriate word in the sentences.
The Dynamic Diamond Theory is a tool for analysing the organizations task ENVIRONMENT

38.. Fill the most appropriate word in the sentences.

Cost focus exploits differences in COST behaviour in some markets

39.. The below question may have more than 1 correct answer.
Organizational structure provides guidelines on:
1. Division of work into activities;
2. Linkage between different functions
3. Recruitment
4. Profit centres.

40.. Select an most appropriate option

Which of the following is a strategy in which companies create a co-owned business that operates
for their mutual benefit
1. Retrenchment
2. Divestiture
3. Joint venture
4. Liquidation

41.. State true or false

Strategies sometimes place a disproportionate emphasis on thinking over action
1. True
2. False

42.. Fill the most appropriate word in the sentences.

Virtual structure is a dynamic grouping of business units that can address different
STRETEGIC issues and competitive environments

43.. Fill the most appropriate word in the sentences.

The organization’s advantage can also be neutralized if there is
LOW cost learning by industry newcomers or inflation in costs of supplies or processes that
provide the organization a competitive advantage

44… Select the most appropriate word.

Strategic management consists of the analysis, decisions, and actions organization undertakes in
order to create and sustain competitive advantages
1. Dess, Lumpkin & Taylor
2. Pearce and Robinson
3. Johnson and Scholes
4. Fed R David

45…Select most appropriate option

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Which one of the following is not a strategic choice that a company must make to complement and
supplement its choice of one of the five generic competitive strategies
1. Whether to enter into strategic alliances or collaborative partnerships
2. Whether and when to employ offensive and defensive moves
3. Whether to employ a market share leadership strategy
4. All of these

46.. Select most appropriate option

Turnaround strategies involve changes at what level of strategy
1. Corporate
2. Functional
3. Competitive
4. All of level

47.. Select most appropriate option

Which of the following is not a factor that makes an alliance "strategic" as opposed to just a
convenient business arrangement?
1. The alliance is critical to the company's achievement of an important objective
2. The alliance helps block a competitive threat
3. The alliance helps open up important new market opportunities
4. The alliance helps the company obtain additional financing on better credit terms

48.. Select most appropriate option

Following are the examples of actions taken while implementing strategies EXCEPT
1. Altering sales territories
2. Conducting the SWOT analysis
3. Developing financial budgets
4. Establishing cost-control procedures

49.. Select most appropriate option

When a product's unique attributes provide value to customers, the firm is implementing
1. A differentiation strategy.
2. A cost leadership strategy.
3. An integrated cost leadership/differentiation strategy.
4. A single-product strategy.

50…Select most appropriate option

Which one of the following does not influence organizational learning?
1. Awareness of wider environmental developments
2. Knowledge of competitor activity
3. Reflecting on past actions
4. Information distribution
5. Applying activity maps
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51.. Select most appropriate option

Sound strategic choices will always address four issues. Which of the following is one of those
reasons
1. Availability of resources
2. Strategic fit
3. Strategic thinking
4. Financial returns

52.. Select most appropriate option

Business-level strategies detail commitments and actions taken to provide value to customers and
gain competitive advantage by exploiting core competencies in
1. the Selection of industries in which the firm will compete.
2. specific product markets.
3. primary value chain activities.
4. Particular geographic locations.

53.. elect most appropriate option

Which of the following is not one of the factors that affects whether a strategic alliance will be
successful and realize its intended benefits
1. Picking a good partner
2. Recognizing that the alliance must benefit both sides
3. Minimizing the amount of resources that the partners commit to the alliance
4. None of these

54.. Select most appropriate option

In the context of strategic management resources can be defined as:
1. The knowledge and skills within the organization
2. Something that an organization owns or controls that cannot be copied
3. Something that an organization owns, controls or has access to on a semi-
permanent basis
4. The physical assets of the organization

55… Select most appropriate option

New entrants to an industry are more likely when (i.e., entry barriers are low when...)
1. It is difficult to gain access to distribution channels.
2. Economies of scale in the industry are high.
3. Product differentiation in the industry is low.
4. Capital requirements in the industry are high.

56.. Select an appropriate option

Which one of the following is not an aspect of profit or contribution arising from a change in strategy
1. Productivity aspect
2. Growth aspect
3. Price
4. Effectiveness aspect
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57.. Select most appropriate option

What is likely to be the effect of a logical corporate strategy but poor strategy implementation
1. Strategic weaknesses and underachievement.
2. Fragmented performance through strategic and structural flaws.
3. Structural and stylistic flaws.
4. Effectiveness but little efficiency.

58.. Select most appropriate option

Retrenchment is
1. When a company experiences declining profits and makes cutbacks to improve
efficiency
2. When a company adopts a new strategic position for a product or service
3. The sale of the complete business, either as a single going concern or piecemeal to
different buyers or sometimes by auctioning the assets
4. Likely to take place when an organization lacks a key success factor for a particular
market

59…

Select most appropriate option

Among the value-neutral incentives to diversify, some come from the firm's external environment
while others are internal to the firm. External incentives to diversify include:
1. Other firms in an industry are diversifying.
2. pressure from stockholders who demand that the firm diversify.
3. The low performance of a firm.
4. changes in antitrust regulations and tax laws.

60….Select most appropriate option

Corporate resource allocation may be different depending on the speed of growth of the
organization. Which of the following is inappropriate when facing rapid growth
1. Opportunities for synergy.
2. Past allocations and budgets
3. Look to share activities
4. Assess desirability of outcomes to organizational strategy

61.. Select most appropriate option

Which of the following best reflects the nature of cross-border alliances compared to domestic
alliances, especially in emerging markets
1. Highly leveraged and tightly monitored
2. flexible and trust-based
3. Complex and risky
4. uncertainty reducing and diversifying
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62.. Select most appropriate option

In free market economies, who must decide how rivals can collaborate with their competitors
without violating established regulations
1. the business community
2. consumers
3. the government
4. The invisible hand

63.. Select most appropriate option

The marketing strategy emphasises price as the key to good value; operations runs with tight cost
control; development focuses on cost reduction. Which of Porter's competitive strategies is
illustrated here?
1. Cost leadership
2. Divisionalisation
3. Differentiation focus
4. Differentiation
5. Cost focus