Strategic Management Process – CA Inter SM Question Bank

Strategic Management Process – CA Inter SM Question Bank is designed strictly as per the latest syllabus and exam pattern.

Strategic Management Process – CA Inter SM Question Bank

Question 1.
Explain the meaning of the following concepts:
Corporate Strate (May 2011, 1 mark)
Answer:
Corporate Strategy:
Corporate strategy is the growth design of the firm. it provides an integrated framework for the top management to

1. Search for, evaluate, and exploit beneficial opportunities,
2. Perceive and meet potential threats and crises,
3. Make full use of resources and strengths,
4. Offset corporate weaknesses and to make major decisions in general.

Thus corporate strategy is the game plan that paves the way of the firm towards success. They provide a systematic basis for the firm to stand in face of challenges and change as also quickly to adjust to them.

Question 2.
What does corporate strategy ensure? Explain. (May 2014, 3 marks)
Answer:
Corporate strategy is the growth design of the firm. It provides an integrated framework for the top management to

1. To search for, evaluate, and exploit beneficial opportunities,
2. To perceive and meet potential threats and crisis,
3. To make full use of resources and strengths,
4. To offset corporate weaknesses and to make major decisions in general.

Thus corporate strategy is the game plan that paves the way of the firm towards success. They provide a systematic basis for the firm to stand In face of challenges and change as also quickly to adjust to them.

Corporate strategy in the first place enables the growth of firm and ensures the correct alignment of the firm with its environment. It serves as the design for filling the strategic planning gap. It also helps to build the relevant competitive advantages.

Question 3.
Distinguish between the following:
Top-Down and Bottom-Up Strategic Planning. (Nov 2010, May 2013, 4 marks each)
Answer:
Top-Down and Bottom-lip Strategic Planning
There are two approaches for strategic planning – top-down or bottom-up.

Top-down strategic planning

Bottom-Up Strategic Planning

describes a centralized approach to strategy formulation In which the corporate center or head office determines the mission, strategic Intent, objectives, and strategies for the organization as a whole and for all parts. Unit managers are seen as Implementers of pre-specified corporate strategies.

Bottom-up strategic planning is a upward characteristic of autonomous or semi-autonomous divisions or subsidiary companies in which the corporate center does not conceptualize its strategic role as being directly responsible for determining the mission, objectives, or strategies of Its operational activities. Bottom-up strategic planning may prefer to act as a catalyst and facilitator, keeping things reasonably simple and confining Itself to perspective and broader strategic intent.

Question 4.
Explain briefly following areas on which the strategic partners concentrate to achieve the long-term prosperity:
(i) Profitability
(ii) Competitive position
(iii) Employee development
(iv) Public responsibility (May 2016, 1 × 4 = 4 marks)
Answer:

(i) Profitability	The main motive of business organization is profitability. The private enterprises shall mainly work objective of profit. Some other enterprises thinks that profit is sole motive all other are facilitative objective.
(ii) Competitive Position	The competitive position for an organization would mean that the factors which shall affect the organization’s competition in market and how the from positions Itself from it.
(iii) Employee Development	Employee development refers to the development of employees of an organization by way of training, Increasing in salary, etc.
(iv) Public Responsibility	The public responsibility refers to the organization’s responsibility In market and public it is also be known as Corporate Social Responsibility (CSR).

Question 5.
You are appointed as a Strategic Manager by XYZ Co. Ltd. Being a Strategic Manager what should be your tasks to perform? (Nov 2011, 3 marks)
Answer:
As a Strategic Manager of XYZ Co. the tasks to be performed can be divided in following five stages keeping ¡ri mind the framework of strategic management.

Question 6.
What Is Strategic Decision Making? Briefly explain the major dimensions of strategic decisions. (Nov 2011, 1+3 = 4 marks)
OR
Write short note on the following:
Strategic Decision-making (Nov 2015, 4 marks)
OR
Write short note on the following:
‘Strategic decisions are different in nature than all other decisions. In the light of this statement, explain any three major dimensions of strategic decisions. (Nov 2016, 3 marks)
Answer:

Strategic Decision Making
Decision-making is a managerial process and function of choosing a particular course of action out of several alternative courses for the purpose of accomplishing of the organizational goals. Strategic decisions are different in nature than all other decisions which are taken at various levels of the organization during their day-to-day working.

Dimensions of Strategic Decisions –
1. Strategic Issues require top management decisions
Strategic issues involve thinking ¡n totality of the organizations and also there is lot of risk involved.

2. Strategic issues are likely to have a significant Impact on the long-term prosperity of the firm
Generally, the results of strategic implementation are seen on a long-term basis and not immediately.

3. Strategic issues Involve the allocation of large amounts of company resources
It may require huge financial investment to venture into a new area of business or the organization may require huge number of manpower with new set of skills in them.

4. Strategic Issues usually have major multi-functional or multi’ business consequences
As they involve organizations in totality they affect different sections of the organization with varying degrees.

5. Strategic issues are future oriented
Strategic thinking involves predicting the future environmental conditions and how to orient for the changed conditions.

6. Strategic issues necessitate consideration of factors In the firm’s external environment
Strategic focus in organization involves orienting its internal environment to the changes of external environment.

Question 7.
What are the major stages in the strategic management process? (May 2014, 3 marks)
Answer:
1. Where are we now- beginning
This is the starting point of strategic planning and consists of doing situational analysis of the firm In the environmental context. Here the firm must find out Its relative market position, corporate image, its strengths and weakness and also environmental threats and opportunities.

2. Where we want to be?
This is a process of goal setting for the organisation after It has finalized Its vision and mission.

3. How might we get there?
Means – Here organization deals with the various strategic alternatives it has.

4. Which way is best?
Evaluation Out of all the alternatives generated in the earlier stage the organisation selects
the best suitable alternative in line with its SWOT Analysis.

5. How can we ensure survival?
Control – This is the implementation and control stage of a suitable strategy. Here an organisation continuously does situational analysis and repeats the stage again.

Question 8.
How strategic decisions differ in nature from other routine decisions taken In day-to-day working of an organization? Explain. (Nov 2014, 3 marks)
Answer:
Strategic decision-making or strategic planning describes the process of creating a company’s mission and objectives and choosing the course of action of company. Decision-making is a managerial process and function of choosing a particular course of action but out of several alternative courses for the purpose of accomplishing of the organizational goals. Decisions are routine, tactical, or strategic in nature.

Strategic decisions are different from other decisions that are taken at various levels of the organization during day to-day working of the organizations. They have long-term implications, steer organisations to its future path and have organization wIde implications, and so on. These decisions are taken considering different Internal and external factors. They are also taken with partial or no definite knowledge of different factors affecting the decision situation.

Question 9.
Briefly discuss the framework of strategic management. (May 2017, 3 marks)
Answer:
The term strategic management refers to the managerial process of forming a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then initiating whatever corrective adjustments in the vision, objectives strategy, and execution are deemed appropriate.

The basic framework of strategic process can be described in a sequence of five stages as follows:

• Stage one – Beginning: Where are we now?
• Stage two End: Where we want to be?
• Stage three – Means: How might we get there?
• Stage four – Evaluation: Which way is best?
• Stage five – Control: How can we ensure arrival?

Question 10.
State with reasons which of the following statement is correct/incorrect:
All strategies emerge from Corporate vision. (Nov 2008, 2 marks)
Answer:
Correct: AU strategies emerge from corporate vision as a strategy is meant to fill in the need of organizations for a sense of dynamic, direction, focus and cohesiveness. Strategies are made to evaluate and exploit beneficial opportunities, to perceive and meet potential threats and crises, to make full use of resources and strengths, to off-set corporate weaknesses, and to
make major decisions in general.

Question 11.
Briefly answer the following:
‘Shared Vision’ and ‘Vision Shared’. (May 2010, 2 marks)
OR
Distinguish between on the following:
‘Shared Vision’ and ‘Vision Shared’.
Answer:
All individuals in an organisation relate themselves with the vision of their organisation in different ways. When the individuals are able to bring organizational vision close to their hearts and minds they have shared vision. Shared vision is a force that creates a sense of commonality that permeates the organization and gives coherence to diverse activities, whereas, ‘vision shared’ shows imposition of vision from the top management. It may demand compliance rather than commitment. For the success of an organization having shared vision Is better than vision shared.

Question 12.
Fill in the blank in the following statement with the most appropriate word:
Vision is always ……………… oriented. (Nov 2010, 1 mark)
Answer:
Future.

Question 13.
Explain the meaning of the following concepts:
Strategic Vision (Nov 2011, 1 mark)
OR
Describe the term Strategic Vision’. (May 2018, 2 marks)
Answer:
A Strategic Vision Is a Road map of a Company’s Future – providing specifics about technology and customer focus, the geographic and product markets to be pursued, the capabilities It plans to develop, and the kind of company that management is trying to create. in the process of strategy making, management is expected to look forward to the organisation’s future, posing a question, What kind of an enterprise is it going to be? This direction-setting idea underlies the concept of strategic vision. it is said to be a road map of the company’s future.

Question 14.
State the three elements of a strategic vision. (Nov 2012, 3 marks)
OR
Explain the elements of strategic vision. (May 2013, 3 marks)
OR
What are the three elements of a strategic vision? (Nov 2017, 3 marks)
Answer:

Question 15.
A strategic vision is a road map of a company’s future. Comment. Draft a strategic vision statement of any well-known national-level Educational Institution you are familiar with. (Nov 2014, 3 marks)
Answer:
A Strategic Vision is a roadmap of a Company’s Future – providing specifics about technology and customer focus, the geographic arid product markets to be pursued, the capabilities it plans to develop, and the kind of company that management Is trying to create.

In the process of strategy making, management is expected to look forward to the organization’s future, posing a question, What kind of an enterprise is it going to be’? This direction-setting idea underlies the concept of strategic vision. It Is said to be a road map of the company’s future.

Vision Statement of IIT Mumbai:
The vision of lIT Mumbai is to be the fountainhead of new ideas and of innovators in technology and science. Its mission is to create an ambiance in which research and scholarship and leaders and innovators of tomorrow emerge.

Question 16.
Which of the following statements is correct and which Is incorrect? Give reasons in brief for your answer. Vision is one of the key elements of Strategic Intent. (Nov 2018, 2 marks)
Answer:
Correct:
Vision implies the blueprint of the company’s future position. It describes where the organisation wants to Land. Every Sub-system of the organization is required to follow its vision.

Question 17.
What is strategic vision? Describe the essentials of strategic vision. (Nov 2020, 5 marks)

Question 18.
State the points that may be considered while writing a mission statement of a Company. (Nov 2009, 2 marks)
OR
What tips can you offer to write a ‘right Mission Statement? (May 2010, 4 marks)
Answer:
A Companys mission is a long-term view of what the organisation is striving to become in future indicating the basic thrust of the firm including Its products, business and markets.

Mission as defined by Glueck and Jauch is the answer to the question what business are we in that is often laced by corporate-level strategists.

To choose a mission is to answer the basic question: What business are we Mission statements mainly describe the oiganizations present capabilities, customer focus, activities, and business makeup.

Following Points are useful while writing right mission statement of a company:

1. One of the roles of a mission statement is to give the organization its own special identity, business emphasis and path for development.
2. A company’s business is defined by what needs it ¡s trying to satisfy, customer groups it is targeting, technologies and competencies it uses and the activities it performs.
3. Good mission statements are highly personalized and unique to the organization for which they are developed.
4. The mission should not be to make profit.
5. Technology, competencies and activities are important in defining a companys business because they Indicate the boundaries on its operation.

Question 19.
Fill in the blanks in the following statement with the most appropriate word:
“In the factory, we make cosmetics. In the drugstore, we sell ……………….. . (Nov 2010, 1 mark)
Answer:
Hopes.

Question 20.
Fill in the blanks in the following statement with the most appropriate word:
The corporate mission is an expression of the ………………….. of the firm. (May 2011, 1 mark)
Answer:
Growth Ambition.

Question 21.
Mission statement of a company focuses on the question:
‘Who we are’ and ‘What we do’. Explain briefly. (May 2014, 3 marks)
Answer:
A Company’s mission statement is typically focused on its present business scope – “who we are and what we do”;
This is the starting point of strategic planning and consists of doing a situational analysis of the firm in the environmental context. Here the firm must find out its relative market position, corporate image, its strength and weakness and also environmental threats and opportunities.

This is a process of goal setting for the organisation after It has finalised its vision and mission. A strategic vision is a roadmap of the company’s future – providing specifics about technology & customer focus, the geographic arid product markets to be pursued, the capabilities it plans to develop, and the kind of company that management is trying to create.

Question 22.
State with reasons which of the following statements is correct or incorrect:
Strategic vision and mission statements are needed only by large business houses. (Nov 2014, Nov 2016, 2 marks each)
Answer:
Incorrect:
Strategic vision and mission statement provides a framework for future and it is core documents prepared for base of formulation of strategy. Therefore, it is required for all business houses.

Question 23.
Distinguish between the Vision and Mission. (May 2015, 3 marks)
OR
Distinguish between the following:
Vision and Mission (May 2017, 4 marks)
Answer:
Difference between Vision and Mission:

Basis of Difference	Vision	Mission
Meaning	Vision Statement outlines what the organization wants to be. It concentrates on the future. It is a source of inspiration, It provides clear decision making criteria.	A Mission Statement tells you the fundamental purpose of the organization. It concentrates on the present. It defines the customer & the critical processes. it informs you of the desired level of performance.
Time Period	It concentrates on future.	It concentrates on present.
Focus	Vision Statement can galvanize the people to achieve defined objectives, even it they are stretch objectives, provide the vision in specific, measurable, achievable. relevant and time bound Objectives.	Mission Statement provides a path to realize the vision in line with its values. These statements have a direct bearing on the bottom line and success of organization.

Question 24.
“A company should focus on external perspechve to define s mission.” Support this statement with reasons. (Nov 2015, 3 marks)
Answer:
A Company’s mission is a long-term view of what the organisation is striving to become in future indicating the basic thrust of the firm including its product, business, and market.

Mission as defined by Glueck and Jauch is the answer to the question. ‘what business are we in’? The anwer should have marketing or external perspective and should not be restated to the production or generic activities of business. The mission is a statement which defines the role that the organization plays in the society.

The organization relate their existence to satisfy need of society. So we can describe mission as a statement which defines role that an organization plays in the society. The society as whole comes in external perceptive of business so that the company should focus on external perceptive to define its mission.

Question 25.
You are asked to draft a mission statement of a company. What is a mission statement? Give any two characteristics of a good mission statement. (Nov 2016, 3 marks)
OR
Explain ‘Mission’ briefly. Discuss major elements of an effective corporate mission statement. (Nov 2017, 3 marks)
Answer:
Mission Statement
A Company’s mission is a long-term view of what the organisation is starting to become in future Indicating the basic thrust of the firm including its products, business and markets.

Mission as defined by Glueck and Jauch Is the answer to the question What business are we in? To choose a mission is to answer the basic question: What business are we in?” Thus a company may define its mission by stating that it Is in the transportation business, which by implication states that the company, depending on its own capabilities and external opportunities, looks forward to engaging In the transportation of goods by road and any other means, and include carriage of goods as well as passengers.

Characteristics of good mission statement:
Following points are useful while writing right mission statement of e-company:

1. One of the roles of a mission statement is to give the organization its own special identity, business emphasis, and path for development.
2. A company’s business Is defined by what needs it is trying to satisfy, customer groups it is targeting, technologies and competencies it uses and the activities it performs.
3. Good mission statements are highly personalized and unique to the organization for which they are developed.
4. The mission should not be to make profit.
5. Technology, competencies and activities are important in defining a company’s business because they indicate the boundaries on Its operation.

Question 26.
Why an organisation should have a mission? What considerations are to be kept in mind while writing a good mission statement of a company? (Nov 2019, 5 marks)
Answer:
An organization should have a mission:

• To ensure unanimity of purpose within a organization.
• To develop a basis or standard, for allocating organizational resources.
• To provide a basis for motivating the use of the organization’s resources.
• To establish a general tone or organizational climate, for example, to suggest a business-like operation.
• To serve as a focal point for those who can identify with the organization’s purpose and direction.
• To facilitate the translation of objectives and goals into a work structure involving the assignment of tasks to responsible elements within the organization.
• To specify organizational purposes and the translation of these purposes ¡nto goaLs in such a way that cost, time and performance parameters can be assessed and controlled.

The Following considerations are to be kept In mind while writing a good mission statement of a company.
(i) One of the roles of a mission statement is to give the organization its own special identity, business emphasis and path for development – one that typically sets it apart from other similarly positioned companies.

(ii) A Companys business ¡s defined by what needs it is trying to satisfy, which customer groups it is targeting and the technologies and competencies it uses and the activities it performs.

(iii) Good mission statements are – unique to the organization for which they are developed.

Question 27.
Read the following case and answer the questions at the end:
Dr. Sukumar inherited his father’s Deys Lab in Delhi in 1995. Till 2002, he owned 4 labs In the National Capital Region (NCR). His ambition was to turn it into a National chain. The number increased to 7 In 2003 across the country, including the acquisition of Platinum lab in Mumbai. The number is likely to go to 50 within 2-3 years from 21 at present. Infusion of ‘ ₹ 28 crores for a 26% stake by Pharma Capital has its growth strategy.

The lab with a revenue of ₹ 75 crores is among top three Pathological labs In India with Atlantic (₹ 77 crores) and Pacific (₹ 55 crores). Yet Its market share Is only 2% of ₹ 3,500 crores market. The top 3 firms command only 6% as against 40-45% by their counterparts in the USA. There are about 20,000 to 1,00,000 stand-alone labs engaged In routine pathological business in India. with no system of mandatory licensing and registration. That is why Dr. Sukumar has not gone for acquisition or joint ventures. He does not find many existing laboratories meeting quality standards. His six labs have been accredited nationally where on many large hospitals have not thought of accreditation.

The College of American Pathologists accreditation of Deys lab would help it to reach clients outside India. In Deys Lab, the bio-chemistry and blood testing equipments are sanitised every day. The barcoding and automated registration of patients do not allow any Identity mix-ups. Even routine tests are conducted with highly sophisticated systems. Technical expertise enables them to carry out 1650 variety of tests. Same-day reports are available for samples reaching by 3 p.m. and by 7 a.m. next day for samples from 500 collection centers located across the country. Their technicians work round the clock, unlike competitors. Home services for collection and reporting is also available.

There is a huge unutilized capacity. Now it Is trying to top other segments. 20% of its total business comes through its main laboratory which acts as a reference lab for many leading hospitals. New mega labs are being built to encash preclinical and multi-center clinical trials within India and provide postgraduate training to the pathologists.
Questions:
(i) What do you understand by the term Vision? What is the difference between Vision and Mission What vision Dr. Sukumar had at the time of inheritance of Deys Lab? Has it been achieved? (Nov 2007, 2+2+2+2 = 8 marks)
(ii) For growth what business strategy has been adopted by Dr. Sukumar? (Nov 2007, 2 marks)
(iii) What is the marketing strategy of Dr. Sukumar to overtake its competitors? (Nov 2007, 6 marks)
(iv) In your opinion what could be the biggest weakness in Dr. Sukumar’s business strategy. (Nov 2007, 4 marks)
Answer:
(i) A Company’s mission is a long-term view of what the organization is striving to become in future indicating the basic thrust of the firm including its product, business, and markets. At the time of inheritance of Deys Lab. Dr. Sukumar had a vision of turning his labs into a National Chain. The number of labs increased from 4 to 21 across the country, including the acquisition of Platinum lab in Mumbai. His lab with a revenue of ‘₹ 75 crores is among top three Pathological labs In India.
Dr. Sukumar has achieved his vision. But it would be better if he acquired all other labs to establish the National Chain.

(ii) His six labs have been accredited nationally, New mega labs are being built to en-cash preclinical and multi-center clinical trials within India and provide postgraduate training to the pathologists. Inviting capital Infusion by a Pharma Capital for a 26% stake.

(iii) The biochemistry and blood testing equipments are sanitized every day, The barcoding and automated registration of patients. Even routine tests are conducted with highly sophisticated systems. Technical expertise enables them to carry out 1650 variety of tests. Same-day reports are available for samples reaching by 3 p.m. and by 7 a.m. next day (or samples from 500 collection centres located across the country. Facility of delivery or collection at home.

(iv) Huge unutilized capacity and which may be due to lack of manpower evident from the fact that the technicians are engaged 24 hours. Not going in for acquisition or Joint Ventures would have been one of the weaknesses.

Question 28.
Objectives and Goals provide meaning and sense of direction to organizational endeavor. Explain. (May 2016, 3 marks)
Answer:
Objectives are the organization’s performance targets. The results and outcomes it wants to generate. They function as yard stick for tracking an organization’s performance and progress. Business objectives translates their vision and mission. As such term objectives is synonymous with goals. however, we all make attempt to distinguish between them. Objectives are open-ended attributes and goals are closed-ended attributes.

All organizations have objectives. The pursuit of objective is an unending process such as organizations sustain themselves. Objectives and goals provide meaning and sense of direction to organizational endeavor.

Question 29.
What are the characteristics which must be possessed by objectives, to be meaningful to serve the intended role? (May 2019, 5 marks)
Answer:
Objectives are the organizations performance targets. The results and outcomes it wants to generate. They function as yardstick for tracking an organization’s performance and progress. Business objectives translates their vision and mission. Characteristics of Objectives to make it meaningful to serve the Intended role Objectives should define the organization’s relationship with its environment.

• They should be facilitative towards achievements of mission and purpose.
• They should provide the basis for strategic decision-making.
• They should provide standards for performance appraisal.
• They should be concrete and specific.
• They should be related to a tln,e frame
• They should be measurable and controllable.
• They should be challenging.
• Different objectives should correlate with each other.
• Objectives should be set within the constraints of organisatlonal resources and external environment.

Question 30.
Present a diagrammatic representation of a Strategic Management model. (Nov 2018, 2 marks)
Answer:
Diagrammatic Representation of a Strategic Management Model:

Question 31.
State with reason which of the following statements is correct/incorrect:
Environmental constituents exist in isolation and do not interact with each other. (Nov 2007, 2 marks)
Answer:
Incorrect:
Business environment consists of number of factors events, influences etc. which arise from different sources and interact with each other continuously to create new sets of complex influences.

Question 32.
State with reason which of the following statement is correct or Incorrect:
A business, even if it continually remains passive to the relevant changes in the environment, would still grow and flourish. (Nov 2009, 2 marks)
Answer:
Incorrect:
All living things live within an environment. Similarly business also dwells within an environment. The success of business is known to have been determined by the constant changes taking place in the social, economic, political and other conditions of the environment. A business just cannot remain passive to these changes. It is from the analysis of these changes that management can make decisions on whether to react, to ignore, or to try to influence, anticipate future opportunities or threats.

Question 33.
The strategic management process encompasses three phases. Explain. (Nov 2017, 3 marks)
Answer:
Strategy Formulation
Laying down the firms vision, mission, and objective Swot Analysis

1. Environmental scanning.
2. Organizational appraisal

Identification and Evaluation of Strategic Alternative

Strategy Implementation:

• Decision-making, i.e., choice of strategy
• Implementation of strategy
• Design of organizational structure
• Definition of organizational systems & procedures
• Resource Allocation Decisions
• Management of behavioral Issues

Strategy Control

• Evaluation of Strategy
• Process of evaluation
• Critenum for evaluation
• Techniques of evaluation.

However, before these three phases, Strategic Management involves the following two stages, namely:

• Developing a strategic vision arid formulation of statement of mission, goals, and objectives.
• Environmental and organizational analysis.

Question 34.
To convert strategic plans Into actions and results, a manager must be able to direct organizational change, motivate people, build and strengthen company competencies and competitive capabilities, create a strategy-supportive work climate, and meet or beat performance targets. Explain the principal aspects of the strategy-execution process.
Answer:
In most situations, the strategy-execution process includes the following principal aspects:

• Developing budgets that steer ample resources into those activities critical to strategic success.
• Staffing the organization with the needed skills and expertise, consciously building and strengthening strategy-supportive competencies and competitive capabilities, and organizing the work effort.
• Ensuring that policies and operating procedures facilitate rather than impede effective execution.
• Using the best-known practices to perform core business activities and pushing for continuous improvement.
• Installing information and operating systems that enable company personnel to better carry out their strategic roles day in and day out. Motivating people to pursue the target objectives energetically.
• Creating a company culture and work climate conducive to successful strategy implementation and execution.
• Exerting the internal leadership needed to drive implementation forward and keep improving strategy execution.
• When the organization encounters stumbling blocks or weaknesses, management has to see that they are addressed and rectified quickly.

Good Strategy execution involves creating strong fits” between strategy and organizational capabilities, between strategy and the reward structure, between strategy and internal operating systems, and between strategy and the organization’s work climate and culture.

Multiple Choice Questions

Question 1.
…………………. Involves a fact of interactive and overlapping decisions leading to the development of an effective strategy for the firm.
(a) Strategic Planning
(b) Strategic Decision Making
(c) Strategic Management
(d) Strategic Uncertainty
Answer:
(a) Strategic Planning

Question 2.
………………… is represented by a future trend or event that has inherent unpredictability
(a) Strategic Planning
(b) Strategic Decision Making
(c) Strategic Management
(d) Strategic Uncertainty
Answer:
(d) Strategic Uncertainty

Question 3.
“Strategic decisions encompass the definition of the business, products to be handled, markets to be served, functions to be performed and major- policies needed for the organisation to execute these decisions to achieve the strategic objectiv& defïnes by ………….. .
(a) Willium G. Glueck
(b) Jauch and Glueck
(c) Igor H. Ansoff
(d) Christeneen
Answer:
(b) Jauch and Glueck

Question 4.
Which is not a dimension of strategic decisions?
(a) Strategic decisions Involve commitment of organ Isatlonal resources.
(b) Strategic decision are future orieqtod
(c) Strategic decisions require low level management Involvement
(d) Strategic decision are likely to have a significant impact on the long term prosperity of the firm
Answer:
(c) Strategic decisions require low level management Involvement

Question 5.
Clarity in strategic intent is important for the ………………….. of the enterprise
(a) Production planning
(b) Expansion planning
(c) Diversification and Expansion
(d) Future success and growth
Answer:
(d) Future success and growth

Question 6.
Strategic month could be in the form of ………………… for the organisation at the corporate level.
(a) Vision and mission statements
(b) Business model
(c) Goals and objectives
(d) Business definition
Answer:
(a) Vision and mission statements

Question 7.
Strategic vision point out a particular …………………. .
(a) Direction
(b) Charts a strategic path to be foflowed in future
(c) Moulding organisational identity
(d) All of the above.
Answer:
(d) All of the above.

Question 8.
Mission statement of an organisation deciding ………………. .
(a) Where we are?
(b) Where we are going?
(c) What is our achievement?
(d) How to organise?
Answer:
(b) Where we are going?

Question 9.
What business are we in and what we do ¡s resolved by the organisation through Its ………………… .
(a) Vision
(b) Mission
(c) Strategy
(d) Governance practices
Answer:
(b) Mission

Question 10.
The strategic management process includes ………………….. .
(a) Analysis
(b) Implementation
(c) Evaluation
(d) All of the above
Answer:
(d) All of the above

Question 11.
Strategy formulation, implementation, and evaluation activities should be performed on a …………………. .
(a) Continual basis
(b) Yearly basis
(c) Semi-annually basis
(d) Any of the them
Answer:
(a) Continual basis