MCQs on Strategic Management

Solve Multiple-Choice Questions on Strategic Management to prepare better for MCQ preparation. It is very beneficial to solve MCQs before exams for multiple reasons. You can practise, analyse and understand concepts while solving them. It will also help you in strengthening your time management.

Strategic Management MCQs are a prerequisite to the current examination pattern. If you wish to learn more, you can check notes, mock tests, and previous years’ question papers related to Strategic Management. Get an idea about Strategic Management MCQs by solving the ones compiled below for your practice.

Strategic Management Multiple-Choice Questions

  1. Who is called the Father of Strategic Management?
    1. Chandler
    2. Igor Ansoff
    3. Michael Porter
    4. John Nash
    5. Answer (b)

  2. What is the starting point of Strategic Intent?
    1. Goal
    2. Objective
    3. Vision
    4. Mission
    5. Answer (c)

  3. Hierarchy of Strategic Intent:
  4. i. Vision > Mission > Goals > Objectives > Plans

    ii. Mission > Vision > Goals > Objectives > Plans

    iii. Plans > Vision > Mission > Goals > Objectives

    iv. Goals > Vision > Mission > Objectives > Plans

    1. i)
    2. iii)
    3. iv)
    4. ii)
    5. Answer (a)

  5. SWOT stands for
    1. Services worldwide optimization and transport
    2. Special weapons for operations for timeless
    3. Strength weakness opportunities and threats
    4. Strength worldwide overcome threats
    5. Answer (c)

  6. Which of the following is not a major element of the strategic management process?
    1. Formulation strategy
    2. Implementing strategy
    3. Evaluating strategy
    4. Assigning administrative tasks
    5. Answer (d)

  7. Competitive advantage can be best described as
    1. Increased efficiency
    2. What sets an organisation apart
    3. A strength and the organisations
    4. Intangible resources
    5. Answer (a)

  8. An organisation strategy ___
    1. Remains set in place longer than the mission and objectives
    2. Generally forms over a period of time as events unfold
    3. Trends to be formed at the same time the mission is developed
    4. None
    5. Answer (b)

  9. The primary focus of strategic management is
    1. Strategic analysis
    2. The total organisation
    3. Strategy formulation
    4. None
    5. Answer (b)

  10. The corporate level is where top management directs
    1. All employees for orientation
    2. Its efforts to stabilise recruitment needs
    3. Overall strategy for the entire organisation
    4. Overall sales projections
    5. Answer (c)

  11. Selling all of a company’s assets for their tangible worth is called
    1. Divestiture
    2. Concentric Diversification
    3. Liquidation
    4. Unrelated integration
    5. Answer (c)

  12. What are the guides to decision making?
    1. Rules
    2. Procedures
    3. Goals
    4. Policies
    5. Answer (d)

  13. Low cost, Differentiation and Focus are examples of
    1. Corporate strategies
    2. Operational strategies
    3. Business strategies
    4. Functional strategies
    5. Answer (c)

  14. Which environment can create new markets and new business segments?
    1. Political environment
    2. Economic environment
    3. Sociocultural environment
    4. Technological environment
    5. Answer (d)

  15. The word tactics is most likely to be associated with
    1. Business strategy
    2. Corporate strategy
    3. Operational strategy
    4. All of the above
    5. Answer (c)

  16. How many cells are there in a SWOT matrix?
    1. 6
    2. 9
    3. 5
    4. 2
    5. Answer (b)

  17. Strategic Management handles
    1. External issues
    2. Administrational issues
    3. Internal issues
    4. Management issues
    5. Answer (A)

  18. The following are considered grand strategies, except for
    1. A retrenchment strategy
    2. Strategic business unit
    3. A growth strategy
    4. Related diversification
    5. Answer (b)

  19. Strategic business units
    1. Are found in one-business organisations
    2. Carry out strategies assigned by the CEO
    3. Implement the marketing function’s strategic planning and management decisions
    4. Develop their own unique way of competing
    5. Answer (c)

  20. Retrenchment is
    1. When a company experiences declining profits and makes cutbacks to improve efficiency.
    2. When a company adopts a new strategic position for a product or service
    3. The sale of the complete business, either as a single going concern or piecemeal to different buyers or sometimes by auctioning the assets
    4. Implement the marketing function’s strategic planning and management decisions
    5. Answer (a)

  21. When does horizontal integration occur?
    1. When a firm acquires or merges with a major competitor
    2. When a firm acquires or merges with a an unrelated business
    3. When a firm acquires or merges with a distributor
    4. When a firm acquires or merges with a supplier firm
    5. Answer (a)

  22. Divestment is what kind of strategy?
    1. An asset-reduction strategy
    2. A weakness-reduction strategy
    3. A product-reduction strategy
    4. A cost-reduction strategy
    5. Answer (a)

  23. Sustained survival implies
    1. that a turnaround is achieved, but there is little further growth
    2. that a turnaround is achieved, and there is potential for further growth
    3. that a turnaround is achieved, and there is a clear opportunity to employ a new growth strategy
    4. that a turnaround is achieved, and it is appropriate to diversify soon
    5. Answer (a)

  24. In which of the following scenarios is a joint venture likely to be more attractive than acquisition?
    1. Horizontal integration
    2. Vertical integration
    3. New market entry
    4. Larger resource pool
    5. Answer (a)

  25. McDonalds is deciding whether to expand into manufacturing kitchen equipment in China. At what level is this decision likely to be made?
    1. Business
    2. Corporate
    3. Functional
    4. International
    5. Answer (b)

  26. The three organisational levels are
    1. Corporate level, business level, functional level
    2. Corporate level, business unit level, functional level
    3. Corporate strategy level, business unit level, functional level
    4. None
    5. Answer (a)

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