MGT603 Midterm 12 Past Papers 2009 Set 2

Paper 1 · MIDTERM EXAMINATION · Spring 2009 · MGT603- Strategic Management (Session - 1)

Q1. Various job titles of a strategist may include all of the following EXCEPT: (1 marks)

1. Owner
2. Foreman
3. Chancellor
4. Chief executive officer

Correct answer: Foreman

Page6 various job titles, such as chief executive officer, president, and owner, chair of the board, executive director, chancellor, dean, or entrepreneur.

Q2. According to ‘Peter Drucker’, what is the prime task of strategic management? (1 marks)

1. To develop the vision of the business
2. Effectively evaluate the strategies
3. To think through the overall mission of a business
4. Develop alternative set of strategies

Correct answer: To think through the overall mission of a business

(page 4)“The prime task is to think through the overall mission of a business”.

Q3. Strategist is an individual who is involved in the strategic management process, thus may be known as: (1 marks)

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

Correct answer: President

Strategists are individuals who are most responsible for the success or failure of an organization. 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.

Q4. External opportunities and threats that can significantly benefit or harm an organization may include all of the following EXCEPT: (1 marks)

1. Demographics
2. Competitive trends
3. Technological changes
4. Research and development

Correct answer: Research and development

External opportunities and external threats refer to economic, social, cultural, demographic, environmental,political, legal, governmental, technological, and competitive trends and events that could significantly benefit or harm an organization in the future.

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Q5. The S & T Organization has an established "game plan" for its business operations. This game plan reflects the company's awareness of how and where it should compete and against whom the competition should take place. It can be stated that this organization has an established (1 marks)

1. Goal
2. Formality
3. Policy
4. Strategy

Correct answer: Strategy

Q6. Identify the term that is known as a “mean of providing guidance to actions and procedures, including how resources are to be allocated and how tasks assigned to the organization might be accomplished”. (1 marks)

1. Policies
2. Objectives
3. Aspirations
4. Goals

Correct answer: Policies

(page 10) Policies include guidelines, rules, and procedures established to support efforts to achieve stated objectives. Rq1ka5E0EC&dq=Policies++including+how+resources+are+to+be+allocated+and+h ow+tasks+assigned+to+the+organization+might+be+accomplished&q=Policies+are+g uides+to+action.+...+the+tasks+assigned+to+the+organization+might+be+accomplish ed+and+provide+a+basis+for+lower-level+managers+on#search_anchor

Q7. All of the following statements are true about a firm’s mission statement EXCEPT: (1 marks)

1. A mission statement directly contributes positively to financial performance (not sure )
2. A mission statement does not directly contribute positively to financial performance
3. A mission statement should not provide useful criteria for selecting among alternative strategies
4. Primary reason to develop a mission statement is not to attract the customers

Correct answer: A mission statement directly contributes positively to financial performance (not sure )

Q8. All of the following external forces directly affect an organization EXCEPT: (1 marks)

1. Market segmentation strategies
2. Types of products/services offered
3. Management structure of an organization
4. Choice of businesses to acquire or sell

Correct answer: Management structure of an organization

Page# 28External forces affect the types of products developed, the nature of positioning and market segmentation strategies, the types of services offered, and the choice of businesses to acquire or sell.

Q9. “If a strategist has identified that the market growth rate is 8 %, the number of sellers in industry are 52 and the industry's products are differentiated.” Which of the following industry's success factor he is exploring? (1 marks)

1. Social forces
2. Competitive forces
3. Social forces
4. Economic forces

Correct answer: Economic forces

Q10. Suppose, the value of the currency of a certain country falls, what can be the affection companies in Different Industries and in Different Locations in that country respectively? (1 marks)

1. Significant and equal
2. Marginal and equal
3. Significant and unequal
4. Insignificant and unequal

Correct answer: Significant and unequal

CHAPTER 3 Trends in the dollar’s value have __________ effect(s) on companies in different industries and in different locations.

a. significant and equal b. marginal and equal c. significant and unequal

d. insignificant and unequal e. no

Answer: c Page: 83