MGT603 Final Term Objective

Dua Waqar · MGT603 Finalterm Papers…9 Papers Solved.. · By Dua Waqar

4 papers of 2010, 2 paper of 2009, 2 papers of 2008 and 1 paper of 2007

FINALTERM EXAMINATION · Spring 2010 · MGT603- Strategic Management

Q1. ( Marks: 1 )

Strategist is an individual who is involved in the strategic management process, thus may be known as:

1. Member board of director
2. President
3. Division manager
4. All of the given options

Correct answer: President

Strategists are individuals who form strategies. Strategists have various job titles, such as chief executive officer, president, and owner, chair of the board, executive director, chancellor, dean, or entrepreneur. Page#6

Q2. ( Marks: 1 )

The objectives set by a manager should have which of the following characteristics?

1. Should spell out how fast the company's strategy is to be implemented
2. Should be challenging and congruent among organizational units
3. Should include long-range performance targets but not short-range targets
4. Should include financial performance targets but not strategic performance targets

Correct answer: Should be challenging and congruent among organizational units

Objectives should be challenging, measurable, consistent, reasonable, and clear. Page#9

Q3. ( Marks: 1 )

Which of the following is TRUE about anti-trust legislation?

1. The is the law intended to protect the ozone layer in the environment
2. This is the law intended to regulate the tax rates in the economy
3. This is the law intended to promote free competition in the market
4. This is the law intended to regulate and register the patents

Correct answer: This is the law intended to promote free competition in the market

For example, anti trust legislation where there is an effort to ban the monopolies. Page#35

Q4. ( Marks: 1 )

Financial ratios are helpful in analyzing the relationship between/among which of the following?

1. All assets and liabilities
2. Profits and costs
3. All functional areas of business

Correct answer: All functional areas of business

Dua Waqar

1. Sales and profitability

Because, the functional areas of business are so closely related, financial ratios can signal strengths or weaknesses in management, marketing, production, research and development, and computer information systems activities. Page#64

Q5. Which function of management includes areas such as job design, job specification, job analysis and unity of command?

1. Planning
2. Motivating
3. Organizing
4. Leading

Correct answer: Organizing

Organizing includes all those managerial activities that result in a structure of task and authority relationships. Specific areas include organizational design, job specialization, job descriptions, job specifications, span of the control, and unity of command, coordination, job design, and job analysis. PAGE#53

Q6. ( Marks: 1 )

Distribution includes which of the following?

1. Customer analysis
2. Warehousing
3. Advertising
4. Test marketing

Correct answer: Warehousing

Distribution includes warehousing, distribution channels, distribution coverage, retail site locations, sales territories, inventory levels and location, transportation carriers, wholesaling, and retailing. Page#62

Q7. ( Marks: 1 )

Opportunity analysis is one of the basic functions of which one of the following?

1. Computer information systems
2. Marketing

Correct answer: Marketing

Page#61

1. Production/operations
2. Research and development

There are seven basic functions of marketing:

(1) Customer analysis, (2) Selling products/services, (3) Product and service planning, (4) Pricing, (5) Distribution,

(6) Marketing research, and

(7) Opportunity analysis.

Q8. ( Marks: 1 )

Dua Waqar

“Max Rent-a-Car” is opening car rental shops in Wal-Mart stores, is an example of which type of strategy?

1. Forward integration
2. Backward integration
3. Related diversification
4. Unrelated diversification

Correct answer: Related diversification

What is related Diversification? It is when a business adds or expands its existing product lines or markets. For example, a phone company that adds or expands its wireless products and services by purchasing another wireless company is engaging in related diversification.

Q9. ( Marks: 1 )

_______________ refers to a strategy of seeking ownership or increased control over a firm’s competitors.

1. Conglomerate diversification
2. Backward integration
3. Horizontal integration

Correct answer: Horizontal integration

Page#80

1. Concentric diversification

Horizontal Integration: seeking ownership or increased control over a firm’s competitors

Q10. ( Marks: 1 )

The company acquires or develops new products that could appeal to its current customer groups even though those new products may be technologically unrelated to the existing product lines. Which of the following best describes the statement?

1. Retrenchment
2. Horizontal diversification
3. Market development
4. Horizontal integration

Correct answer: Horizontal diversification

Horizontal diversification: Adding new, unrelated products or services for present customers Page#80

Q11. ( Marks: 1 )

SPACE matrix has four quadrants. All of the following are SPACE Matrix quadrants EXCEPT:

1. Aggressive
2. Defensive
3. Competitive
4. Offensive

Correct answer: Offensive

Four-quadrant named aggressive, conservative, defensive, or competitive strategies Page#100