Strategic Management MCQs

✅ The correct answer is option D.
What businesses are we in and what to do with those businesses? is an issue considered in developing corporate strategies?

✅ The correct answer is option D.
Cohesive marketing mix consists of the product, promotion, price, and communication. A cohesive marketing strategy is one that takes all your different platforms of promoting your business and aligns them to the same strategy.

✅ The correct answer is option D.
Developing a vision is like having a dream to be covered into reality in future. An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future. It is intended to serves as a clear guide for choosing current and future courses of action.

✅ The correct answer is option D.
Resources is a consideration when assessing the appropriateness of a strategy. A resource is a source or supply from which a benefit is produced and that has some utility. Resources can broadly be classified upon their availability — they are classified into renewable and non-renewable resources.

✅ The correct answer is option B.
In the process of developing a mission statement, it is important to involve as many managers as possible. The mission statement allows everyone in an organization to clearly understand why they are doing their work. An organization’s mission also guides its operational plans and describes the organization to potential funders, clients and beneficiaries.

✅ The correct answer is option C.
SWOT’s focus on the external environment is too broad and integrative is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis.

✅ The correct answer is option A.
Research into diversification and acquisition can be divided into 4 schools. Environmental is not one of the schools. Diversification acquisition is a corporate action whereby a company takes a controlling interest in another company to expand its product and service offerings.

✅ The correct answer is option A.
To maximize competitive risk would NOT be a reason for a company to engage in international business. International business encompasses all commercial activities that take place to promote the transfer of goods, services, resources, people, ideas, and technologies across national boundaries.

✅ The correct answer is option B.
Developing and introducing new processes for cost savings and speedier decision-making competencies relates to functionality. Strategic management include a set of decisions and actions resulting in the formulation and implementation of strategies designed to achieve the ultimate objectives of an organisation. The strategic management encompasses tasks pertaining strategic planning, implementation planning and monitoring.

✅ The correct answer is option C.
Bargaining power of buyers refers to the ability of buyers to bargain down prices charged by firms in the industry or driving up the costs of the firm by demanding better product quality and service. The Bargaining Power of Buyers, one of the forces in Porter’s Five Forces Industry Analysis Framework, refers to the pressure that customers/consumers can put on businesses to get them to provide higher quality products, better customer service, and/or lower prices.