Strategic Analysis & Planning – Financial and Strategic Management MCQ

Students should practice Strategic Analysis & Planning – CS Executive Financial and Strategic Management MCQ Questions with Answers based on the latest syllabus.

Strategic Analysis & Planning – Financial and Strategic Management MCQ

Question 1.
___refers to the process of conducting research on a company and its operating environment to formulate a strategy.
(A) Strategic management
(B) Strategic analysis
(C) Sensitive analysis
(D) Simulation analysis
Answer:
(B) Strategic analysis

Question 2.
The strategic analysis involves:
(A) Identifying and evaluating data relevant to the company’s strategy.
(B) Defining the internal and external environments to be analyzed.
(C) Using several analytic methods such as Porter’s five forces analysis, SWOT analysis, etc.
(D) All of the above
Answer:
(D) All of the above

Question 3.
ADL matrix has been propounded by:
(A) Arthur D. Lowey
(B) Arthur D. Little
(C) Arthur D. Levin
(D) Arthur D. Louise
Answer:
(B) Arthur D. Little

Question 4.
The purpose of a strategic analysis is to_____
(A) Analyze an organization’s external and internal environment
(B) Assess current strategies
(C) Generate and evaluate the most successful strategic alternatives.
(D) All of the above
Answer:
(D) All of the above

Question 5.
Arrange the Strategic Analysis Process in proper sequence:
I. Formulate plans.
II. Recommend and implement the most viable strategy.
III. Determine the effectiveness of existing strategies.
IV. Perform an environmental analysis of current strategies.
Select the correct answer from the options given below.
(A) IV, II, I, III
(B) IV, III, I, II
(C) II, III, I, IV
(D) I, VI, III, II
Answer:
(B) IV, III, I, II

Question 6.
___is the process we use to gain understanding and insight into our present situation.
(A) Situational analysis
(B) Sensitive analysis
(C) Simulation analysis
(D) All of the above
Answer:
(A) Situational analysis

Question 7.
Which of the following is NOT ‘internal environment considerations?
(A) Operational inefficiencies
(B) Changes in consumer taste
(C) Employee morale
(D) Constraints from financial issues
Answer:
(B) Changes in consumer taste

Question 8.
Which of the following is NOT ‘external environment considerations?
(A) Political trends
(B) Economic shifts
(C) Operational inefficiencies
(D) Changes in consumer taste
Answer:
(C) Operational inefficiencies

Question 9.
Strategists must ask themselves question such as:
(A) Is our strategy failing or succeeding?
(B) Will we meet our stated goals?
(C) Does our strategy align with our vision, mission, and values
(D) All of the above
Answer:
(D) All of the above

Question 10.
Potential strategic alternatives include –
(A) Changes in capital structure
(B) Changes in supply chain manage¬ment
(C) Changes in business process
(D) All of the above
Answer:
(D) All of the above

Question 11.
‘Build,’ ‘Hold,’ ‘Harvest,’ and ‘Divest’ are the strategies pursued in:
(A) Boston Consulting Group Growth-Share Matrix
(B) Value chain Analysis
(C) Managerial Grid Matrix
(D) Ansoff’s Product Matrix Growth Matrix
Answer:
(A) Boston Consulting Group Growth-Share Matrix

Question 12.
A situation analysis should be conducted ___
(A) After developing a strategy.
(B) At the beginning of any program or project
(C) Before a company is incorporated
(D) At a later stage in quality management
Answer:
(B) At the beginning of any program or project

Question 13.
Which of the following is NOT an element of Situation Analysis?
(A) Product Situation
(B) Competitive Situation
(C) Distribution Situation
(D) Profit Situation
Answer:
(D) Profit Situation

Question 14.
The low growth, low share businesses in the BCG matrix are:
(A) Cows
(B) Dogs
(C) Cats
(D) Question Marks
Answer:
(B) Dogs

Question 15.
Identification of opportunities and avoiding or mitigating losses is called____
(A) Risk management
(B) Stress management
(C) Change management
(D) Co-ordination
Answer:
(A) Risk management

Question 16.
Environment scanning applies to____
1. External scanning processes
2. Motivational scanning processes
3. Internal scanning processes
4. Lead scanning processes
Select the correct answer from the options given below –
(A) None of the given
(B) Except 4 all other
(C) Both 1 and 3
(D) 1 only
Answer:
(C) Both 1 and 3

Question 17.
In SWOT analysis the ‘O’ stands for____
(A) Objections
(B) Openings
(C) Opportunities
(D) Obstacles
Answer:
(C) Opportunities

Question 18.
SWOT analysis Originated by –
(A) Heinz Weirich
(B) United States Navy
(C) Albert S Humphrey
(D) James E. Kelley
Answer:
(C) Albert S Humphrey

Question 19.
An organization that has a low relative market share position and competes in a slow-growth industry is referred to as a
(A) Dog
(B) Question Mark
(C) Star
(D) Cash Cows
Answer:
(A) Dog

Question 20.
Which of the following SWOT elements are internal factors for a business?
(A) Strengths and Weaknesses
(B) Opportunities and Threats
(C) Strengths and Opportunities
(D) Weaknesses and Threats
Answer:
(A) Strengths and Weaknesses

Question 21.
___generally relate to external factors.
(A) Strengths and weaknesses
(B) Opportunities and threats
(C) Weaknesses and Threats
(D) Strengths and Opportunities
Answer:
(B) Opportunities and threats

Question 22.
Which section of the SWOT Matrix involves matching internal strengths with external opportunities?
(A) The WT cell
(B) The SW cell
(C) The SO cell
(D) The ST cell
Answer:
(C) The SO cell

Question 23.
The process by which an organization deals with a major event that threatens to harm the organization, its stakeholders or the general public is known as –
(A) Stress management
(B) Crisis management
(C) TQM
(D) None of the above
Answer:
(B) Crisis management

Question 24.
Which of the following is an element of Situation Analysis?
(A) Environmental Factors
(B) Distribution Situation
(C) Both (A) and (B)
(D) Neither (A) nor (B)
Answer:
(C) Both (A) and (B)

Question 25.
Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis?
(A) Organizational strengths may not lead to competitive advantage
(B) SWOT gives a one-shot view of a moving target
(C) SWOT’s focus on the external environment is too broad and integrative
(D) SWOT overemphasizes a single dimension of strategy
Answer:
(C) SWOT’s focus on the external environment is too broad and integrative

Question 26.
Active scanning involves the__ of continuous resources and, from time to time, supplementing them with existing resources as needed.
(A) Conscious selection
(B) Subconscious selection
(C) Analysis of threats to the business
(D) None of the above
Answer:
(A) Conscious selection

Question 27.
Which of the following executes strategy into everyday execution tactics?
(A) Goal setting
(B) Technical planning
(C) Operational planning
(D) None of the above
Answer:
(C) Operational planning

Question 28.
Which of the following refers to a situation where a product generates high profits which can then be invested in developing new products?
(A) Dogs
(B) Cash cows
(C) Question marks
(D) Growth stage
Answer:
(B) Cash cows

Question 29.
A business giant in the hotel industry decides to enter into the dairy business.
In the context of Ansoff’s Product-Market Growth Matrix, identity, the type of growth strategies followed for the given case.
(A) Market Development
(B) Product Development
(C) Diversification
(D) Market Penetration
Answer:
(C) Diversification

Question 30.
As per ADL Matrix, the company’s competitive position is determined by –
(A) Cash Cows & Growth Stage
(B) Market Improvement & Strategic Actions
(C) Strategic Actions & Competitor’s Strategies
(D) Strong & Stable Strategies
Answer:
(C) Strategic Actions & Competitor’s Strategies

Question 31.
What do Dogs symbolize in the BCG matrix?
(A) Invest
(B) Harvest
(C) Build
(D) Divest
Answer:
(D) Divest

Question 32.
The ADL Matrix or Arthur D Little Strategic Condition Matrix is a Portfolio Management technique that is based on the –
(A) Market Growth Strategy (MGS)
(B) Corporate Portfolio Investment (CPI)
(C) Product Life Cycle (PLC)
(D) Strategic Business Units (SBU)
Answer:
(C) Product Life Cycle (PLC)

Question 33.
One of India’s premier utility vehicles manufacturing company ventures to foray into foreign markets.
In the context of Ansoff’s Product-Market Growth Matrix, identity, the type of growth strategies followed for the given case.
(A) Market Development
(B) Product Development
(C) Market Penetration
(D) Market improvement
Answer:
(A) Market Development

Question 34.
What is shown in the Arthur D. Little (ADL) Matrix?
(A) It classifies strategy options according to market coverage and competitive advantage dimensions.
(B) This 5 X 4 model offers strategy prescriptions according to the competitive position of an organization and the stage of maturity of its market.
(C) It relates an organization’s competitive position and industry attractiveness to determine appropriate strategies.
(D) It shows the relative market share and market growth rates of the organization’s portfolio of SBUs
Answer:
(B) This 5 X 4 model offers strategy prescriptions according to the competitive position of an organization and the stage of maturity of its market.

Question 35.
There are four categories of industry maturity as per ADL Matrix:
(A) Strong, favorable, mature, and decline
(B) Strong, favorable, tenable and weak
(C) Embryonic, growth, mature and aging
(D) Embryonic, growth, tenable and weak
Answer:
(C) Embryonic, growth, mature and aging

Question 36.
If Industry Attractiveness is ‘High’ and Business Unit Strength is ‘Medium’, then which of the following strategy should be followed as per GE Matrix –
(A) Invest/grow
(B) Hold/selective
(C) Divest/harvest
(D) Invest/selective
Answer:
(A) Invest/grow

Question 37.
A renowned auto manufacturing company launches ungeared scooters in the market.
In the context of Ansoff’s Product-Market Growth Matrix, identity, the type of growth strategies followed for the given case.
(A) Market Development
(B) Product Development
(C) Diversification
(D) Market Penetration
Answer:
(B) Product Development

Question 38.
Four generic strategies as discussed by Glueck and Jauch are –
(A) Stability Strategies, Expansion Strategies, Retrenchment Strategy & Combination Strategies
(B) Growth Strategies, Stable Strategies, Retrenchment Strategy & Combination Strategies
(C) Stability Strategies, Expansion Strategies, Decline Strategy & Divest Strategies
(D) Corporate Strategies, Business Strategies, Operational Strategies & Functional Strategies
Answer:
(A) Stability Strategies, Expansion Strategies, Retrenchment Strategy & Combination Strategies

Question 39.
If the organization chooses to transform itself into a leaner structure and focuses on ways and means to reverse the process of decline, it adopts a __
(A) Turnaround Strategy
(B) Liquidation Strategy
(C) Divestment Strategy
(D) Differentiation Strategy
Answer:
(A) Turnaround Strategy

Question 40.
_____is implemented by redefining the business by adding the scope of business substantially increasing the efforts of the current business.
(A) Expansion Strategy
(B) Differentiation Strategy
(C) Retrenchment Strategy
(D) Cost Leadership Strategy
Answer:
(A) Expansion Strategy

Question 41.
Dell Computer has decided to rely exclusively on direct marketing. This is an example of ___
(A) Differentiation Strategy
(B) Focus Strategy
(C) Cost Leadership Strategy
(D) Diversification Strategy
Answer:
(A) Differentiation Strategy

Question 42.
‘NDTV’, a TV Channel has identified a profitable audience niche in the electronic media. It has further exploited that niche through the addition of new channels like ‘NDTV’ Profit and Image’. According to Porter, this is an example of __
(A) Differentiation Strategy
(B) Focus Strategy
(C) Cost Leadership Strategy
(D) Diversification Strategy
Answer:
(B) Focus Strategy

Question 43.
In the BCG matrix, what is the label of the horizontal axis?
(A) Relative Market share
(B) Business Strength
(C) Industry Growth Rate
(D) Market Growth Rate
Answer:
(A) Relative Market share

Question 44.
If Industry Attractiveness is ‘Low’ and Business Unit Strength is ‘High’, then which of the following strategy should be followed as per GE Matrix –
(A) Hold/selective
(B) Divest/harvest
(C) Invest/selective
(D) Invest/grow
Answer:
(A) Hold/selective

Question 45.
Car manufacturers ‘Maruti’ and ‘Tata Motors’ work on reducing their costs to sell their cars in the popular segment at attractive prices. This is an example of ___
(A) Growth Strategy
(B) Turnaround Strategy
(C) Cost Leadership Strategy
(D) Unique Strategy
Answer:
(C) Cost Leadership Strategy

Question 46.
Another name for GE/McKinsey Matrix is____
(A) Business Making Matrix ‘
(B) Business Planning Matrix
(C) Business Portfolio Matrix
(D) Business Grow Matrix
Answer:
(B) Business Planning Matrix

Question 47.
A business organization can redefine its business by divesting a major product line or market. This is supported by –
(A) Retrenchment Strategy
(B) Combination Strategy
(C) Growth Strategy
(D) Incline Strategy
Answer:
(A) Retrenchment Strategy

Question 48.
Statement I:
A stability strategy is not a ‘do-nothing’ strategy.
Statement II:
The third step in BCG Matrix is to calculate relative market share.
Select the correct answer from the options given below.
(A) Statement I is true and II is false
(B) Statement II is true and I is false
(C) Both statements are true
(D) Both Statements are false
Answer:
(B) Statement II is true and I is false

Question 49.
In BCG Matrix, what is the label of the Vertical axis?
(A) Relative Market share
(B) Business Strength
(C) National Growth Rate
(D) Market Growth Rate
Answer:
(D) Market Growth Rate

Question 50.
TOWS Matrix is an analytical tool that helps build over your and make the best use of available while also minimizing the
(A) Threats; Opportunities; Strengths
(B) Strengths; Opportunities; Threats
(C) Opportunities; Strength; Threats
(D) Strengths; Threats; Opportunities
Answer:
(B) Strengths; Opportunities; Threats

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