Din Mohammad, a farmer sells his crops at the local market rather than to a distribution center. This action of Din Mohammad comes under

which of the following?
Backward integration
Product development
Forward integration
Horizontal integration

Theoretical framework is trying to develop a ______ model of our study.
Select correct option:

Which of the following are two negative-rated dimensions on SPACE Matrix?
Select correct option:
FS and CA
CA and ES
FS and IS
IS and ES

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?
Select correct option:
Market Penetration
Product Development
Market Development

In Competitive Profile Matrix, the rating 4 indicates what?
Select correct option:
Major weakness
Major strength
Minor strength
Minor weakness
rating 1 represents major weakness, rating 2 shows minor weakness. Similarly, rating 3 indicates minor strength whereas rating 4 shows
major strength. It means that weakness must receive 1 or 2 rating while strength must get 3 or 4 rating.

A chance for advancement, progress or profit prevailing in external environment of a company is known as:
Select correct option:

When the Chief Executive of a chain of pharmacies decided to sell off or close some of the locations that were not profitable, he was
performing which of the management function?
Select correct option:

Taking any corrective action is a part of controlling function.
Internal analysis involves gathering and analyzing the information about all areas of a firm EXPECT:
Research nad development
Management information system
Internal strengths and weaknesses that can significantly benefit or harm an organization may include all of the following EXCEPT:

Production/ operations
Research & development
Management information system
Internal strengths and internal weaknesses are an organization's controllable activities that are performed especially well or poorly. They arise
in the management, marketing, finance/accounting, production/operations, research and development, and computer information systems activities of a business. Identifying and evaluating organizational strengths and weaknesses in the functional areas of a business is an essential strategic-management activity. Organizations strive to pursue strategies that capitalize on internal strengths and improve on internal weaknesses.

Strategic management integrates all of the following areas EXCEPT:
Research and development
Human resource management

Which management function includes breaking tasks into jobs, combining jobs to form departments and delegating authority?

All of the following statements are true about a firm’s mission statement EXPECT:
A mission statement does not directly contribute positively to financial performance.
A mission statement directly contributes positively to financial performance.
A mission statement should not provide useful criteria for selecting among alternative strategies.
Primary reason to develop a mission statement is not to attract the customers

A firm should practice Joint Venture strategy in which of the following cases?
When the SPACE matrix vector lies in defensive quadrant
When the SPACE matrix vector lies in aggressive quadrant
When the SPACE matrix vector lies in conservative quadrant
When the SPACE matrix vector lies in competitive quadrant

Assessment of competitive rivalry does NOT include an understanding of which of the following?
Mergers and acquisition in industry
Market growth rates
Exit barriers and operational efficiency of competitor
The management structure of an organization

What is the range for a firm’s total weighted score in an External Factor Evaluation Matrix?
0 to 5
0 to 4
1 to 5
1 to 4
total weighted score for the organization, Highest possible weighted score for the organization is 4.0; the lowest, 1.0. Average = 2.5

All of the following would be considered as opportunities for a business, EXCEPT:
Select correct option:
Removal of international trade barriers
Emergence of unfulfilled customer need
Emergence of substitute products
Loosening of regulations

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?
Select correct option:
Cash cow
Question mark

SPACE matrix stands for:
Select correct option:
Strategic position and action evaluation matrix
Strategic power and commerce evaluation matrix
Strategy performance and activity evaluation matrix
Strategy position and competitiveness evaluation matrix
1. TOWS Matrix (Threats-Opportunities-Weaknesses-Strengths)
2. SPACE Matrix (Strategic Position and Action Evaluation)
3. BCG Matrix (Boston Consulting Group)
4. IE Matrix (Internal and external)5. GS Matrix (Grand Strategy)

Long-term objectives are needed at which level(s) of the organization?
Select correct option:
Corporate level
Divisional level
Functional level
All of the given options
5. Long term objectives are needed at the corporate, divisional and functional levels of an organization.

Strategy formulation techniques can be integrated into how many stages of decision making framework?
Select correct option:

All of the following situations are conducive to market development EXCEPT:
When new untapped or unsaturated markets exist
When new channels of distribution are expensive
When an organization has excess production capacity
When an organization’s basic industry is becoming rapidly global

Lack of access to key distribution channel indicates which of the following?
Select correct option:

ABC firm is facing high production costs in Pakistan due to expensive raw material. The firm is formulating a strategy of capturing European
market because of low priced raw material and high demand of their products in Europe. Keeping in view the mentioned situation which of the
following strategies ABC firm must pursue?
WO Strategy
SW Strategy
ST Strategy
WT Strategy

Which one of the followings best describes this statement; “The conditions that a company must satisfy in order to be able to enter an
Economies of scale
Barriers to entry
Competitive environment

Which strategy should an organization use if it competes in a no-growth or a slow-growth industry?
Related diversification
Backward integration
Unrelated diversification
that company’s weak competitive situation and slow market growth. The firms fall in this quadrant compete in slow-growth industries and have weak competitive positions. These firms must make some drastic changes quickly to avoid further demise and possible liquidation.

Extensive cost and asset reduction (retrenchment) should be pursued
Defensive strategies include all of the following EXCEPT:
Select correct option:
Defensive Strategies In addition to integrative, intensive, and diversification strategies, organizations also could pursue Retrenchment, divestiture, or liquidation.
Selling all of a company’s assets in parts for their tangible worth is known as:
Select correct option:
Joint venture
Divestiture Liquidation
Selling all of a company’s assets, in parts, for their tangible worth Selling all of a company’s assets, in parts, for their tangible worth is called liquidation. Liquidation is recognition of defeat and, consequently, can be an emotionally difficult strategy. However, it may be better to cease operating than to continue losing large sums of money.

Which of the following stages of strategy formulation framework involves developing Internal-External (IE) Matrix?
Select correct option:
Input stage
Output stage
Matching stage
Decision stage

Input stage of strategy-formulation framework includes developing which of the following set of strategies?
Select correct option:
IFE, EFE and QSPM Matrix
IFE, IE and BCG Matrix
IFE, CPM and EFE Matrix
EFE, IE and CPM Matrix

ABC company is competing in an industry where the growth rate of that industry from year to year has reached or is close to zero, ABC is
operating in which industry?
Select correct option:
Growing industry
Emerging industry
Mature industry
Declining industry

Which of the following strategy generally entails large research and development expenditures?
Select correct option:
Market penetration
Forward integration
Product development
Product Development
Product development is a strategy that seeks increased sales by improving or modifying present products or services. Product development
usually entails large research and development expenditures

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