Strategic Management MCQs

✅ The correct answer is option D.
A business model typically includes a description of your customers, how customers use your product, how you distribute your product and details about how you promote your business. The model also describes key operational tasks, staffing and other resource requirements as well as details about how business is conducted. A business model describes your business using visual images, typically on a single page, while a business plan describes your business in a more lengthy document.

✅ The correct answer is option B.
Philosophy component of a mission statement addresses the basic beliefs, values, aspirations, and ethical priorities of the firm. What are the basic beliefs, values, aspirations, and philosophical.

✅ The correct answer is option D.
When actual performance results are better than what the plan called for, managers should increase prices.

✅ The correct answer is option A.
Sales is not one of the three elements of strategy creation. The environment, the resources of your organisation and the expectations of different stakeholders are three elements of strategy creation.

✅ The correct answer is option D.
Strategic leaders live in the details, and they know everything will likely not happen as it is supposed to. Therefore, these individuals will attempt to anticipate problems and plan for them. They will look for weak areas and will try to work with teams to keep from falling into a problem area.

✅ The correct answer is option B.
A strategic plan outlining means to utilize budget, make sales, and generate profits is not an aspect of a definition of the term budgets. A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis.

✅ The correct answer is option B.
Internal analysis of an organization deals with investigation of organizational strengths and weaknesses by focusing on factors which are relevant to it. An internal analysis is an exploration of your organization’s competency, cost position and competitive viability in the marketplace. Conducting an internal analysis often incorporates measures that provide useful information about your organization’s strengths, weakness, opportunities and threats – a SWOT analysis.

✅ The correct answer is option D.
What the organization seeks to do to reach desirable future states is not expected to see in a vision statement.

✅ The correct answer is option C.
A buyer is important to the supplier does not increase the bargaining power of a supplier. The idea is that the bargaining power of the supplier in an industry affects the competitive environment for the buyer and influences the buyer’s ability to achieve profitability. Strong suppliers can pressure buyers by raising prices, lowering product quality, and reducing product availability.

✅ The correct answer is option D.
The goal of the cost leader is to make high margins. Leader pricing is a common pricing strategy used by retailers to attract customers. It involves setting lower price points and reducing typical profit margins to introduce brands or stimulate interest in the business as a whole or a particular product line. Products sold in this strategy are often sold at a loss.