Strategic Management MCQs

✅ The correct answer is option A.
High innovation would not be considered a barrier to entry. Innovation is about being creative and original in your work and thinking.

✅ The correct answer is option C.
When the parts of an organization are combined and managed in such a way that the benefits exceed those which would result if the parts were operating separately is known as synergy. Synergy is the concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts. Synergy is a term that is most commonly used in the context of mergers and acquisitions (M&A).

✅ The correct answer is option B.
A small company, with power concentrated in the hands of one central figure, tends to be centralized and informal. Centralized authority refers to an organizational management structure where most of the major decision-making power and authority rests in the hands of a concentrated group of leaders.

✅ The correct answer is option C.
Policies are designed to guide managers in the pursuit and achievement of strategies and objectives. Policies are instrument for strategy implementation. This thesis defines policy much more narrowly as specific guides to managerial action and decisions in the implementation of strategy.

✅ The correct answer is option B.
The term corporate strategy concerns strategy and strategic decisions at all levels in an organization. Corporate strategy is hierarchically the highest strategic plan of the organization, which defines the corporate overall goals and directions and the way in which will be achieved within strategic management activities. It is a long-term, clearly defined vision of the direction of a company or organization.

✅ The correct answer is option D.
Name association are considered to be synergistic benefits for LVMH. LVMH has focussed on the core competencies of Product, Distribution and Communication that the customers are ready to pay the premium price. According to corporate level strategy, LVMH focuses on corporate value and culture to bring creative design and quality to the products.

✅ The correct answer is option D.
Too many controls at the expense of flexibility one of the strategic pressures that could weaken an unprepared organization.

✅ The correct answer is option A.
In the strategic marketing process, once you get results you go into the control phase. The evaluation phase is the checking phase. This process involves ensuring that the results of the program are in line with the goals set. The marketing team, especially the manager will need to observe any deviations in the plan and quickly correct negative deviations to get back on course.

✅ The correct answer is option B.
Environmental analysis is identifying opportunities and threats affecting their business. Environmental analysis is a strategic tool. It is a process to identify all the external and internal elements, which can affect the organization’s performance. The analysis entails assessing the level of threat or opportunity the factors might present.

✅ The correct answer is option C.
Bargaining power of suppliers is a force in the Porter’s five forces model of industry attractiveness. The Bargaining Power of Suppliers, one of the forces in Porter’s Five Forces Industry Analysis Framework, is the mirror image of the bargaining power of buyers and refers to the pressure that suppliers can put on companies by raising their prices, lowering their quality, or reducing the availability of their products.