Strategic Management

JKPSC Assistant Professor (Commerce) · Commerce · 54 practice questions with answers and explanations: 8 Easy, 42 Medium, 4 Hard.

Sample questions

Sample Easy question 1

A mission statement describes an organisation's:

  1. Daily work schedule
  2. Fundamental purpose and reason for existing
  3. Detailed annual budget
  4. Past financial results
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Answer: B. A vision describes where it wants to be; the mission says why it exists.

Sample Easy question 2

Strategic control is exercised to:

  1. Fix product prices
  2. Prepare the annual accounts
  3. Hire new employees
  4. Check whether the strategy is achieving its objectives and correct deviations
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Answer: D. It follows the evaluation of results against the plan.

Sample Easy question 3

A stability strategy means:

  1. Continuing the present business with little change
  2. Merging with a rival
  3. Closing down
  4. Rapid expansion
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Answer: A. It suits a steady environment.

Sample Medium question 4

Outsourcing as a strategy means:

  1. Contracting out non-core activities to outside firms
  2. Closing the firm
  3. Merging with rivals
  4. Doing all work in-house
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Answer: A. The firm focuses on its core competence.

Sample Medium question 5

In a hostile takeover:

  1. Both sides agree
  2. The target firm's management opposes the acquisition
  3. The government buys the firm
  4. The firm is closed
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Answer: B. The bidder goes directly to the shareholders.

Sample Medium question 6

Which of the following is NOT one of Porter's five forces?

  1. Bargaining power of buyers
  2. Threat of new entrants
  3. Government regulation
  4. Rivalry among existing competitors
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Answer: C. The five forces are new entrants, substitutes, buyers, suppliers and rivalry.

Sample Hard question 7

The VRIO framework asks whether a resource is:

  1. Valuable, rare, costly to imitate and organised to exploit
  2. Visible, real, inherent and optional
  3. Valued, regulated, internal and open
  4. Variable, replaceable, indirect and owned
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Answer: A. A resource that passes all four tests gives a sustained competitive advantage.

Sample Hard question 8

Mintzberg's five Ps of strategy are plan, ploy, pattern, position and:

  1. Price
  2. Product
  3. Promotion
  4. Perspective
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Answer: D. Strategy can be seen in five ways.

Sample Hard question 9

In the McKinsey 7-S framework, the 'hard' elements are:

  1. Strategy, structure and systems
  2. Shared values, style and staff
  3. Skills, systems and shared values
  4. Skills, staff and style
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Answer: A. Skills, staff, style and shared values are the 'soft' elements.

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