Chapter 1

Introduction of Strategic Management

Case Scenario:
Q.1. Connect Innovations Pvt. Ltd. entered a saturated market of smartphones, after a due market study of
understanding the competitive landscape. Put the below steps in correct sequence of understanding the
competitive landscape.
(i) Understand the competitors
(ii) Determining strengths and weaknesses of the competitors
(iii) Identify the competitors
(iv) Put all information gathered together
(a) (I), (III), (II), (IV)
(b) (III), (I), (II), (IV)
(c) (II), (III), (IV), (I)
(d) (I), (III), (II), (IV)
Your Answer: Description: The correct sequence for understanding the competitive landscape is to first identify the
competitors (III), then understand the competitors (I), Determine their strengths and weaknesses (II), and finally put all of
the information together (I). This ensures a comprehensive understanding of the competitive environment.

Q.2. In which stage of strategic management are annual sales volume objectives especially important in this case?
(a) Formulation
(b) Control
(c) Evaluation
(d) Implementation
Your Answer: Description: Annual sales volume objectives are crucial during the implementation stage of strategic
management. This is the phase where the company translates its formulated strategies into actions. Setting specific sales
volume objectives provides a clear target to work towards and helps in evaluating the success of the implemented
strategies.

Q.3. The decision of Connect Innovations to shift to a new core business with a focus on more profitable ventures falls
under which category of business strategy?
(a) Retrenchment strategy
(b) Strategic alliance
(c) Diversification strategy
(d) Market development
Your Answer: Description: A retrenchment strategy involves reducing the scope of business operations, often by divesting
or reducing the focus on certain products or markets. In this case, Connect Innovations is reducing the scope of smartphone
production and focusing on more profitable accessories. This aligns with the concept of a retrenchment strategy.

Q.4. Considering the results from the market, which category of BCG's growth share matrix does the accessories
business of Connect Innovations fall into?
(a) Star
(b) Question mark
(c) Cash cow
(d) Dog
Your Answer: Description: The accessories business of Connect Innovations, which has surpassed expectations, can be
categorized as a cash cow in the BCG growth share matrix. Cash cows are products or business units with high market
share in a low-growth market. They generate steady cash flows that can be used to support other parts of the business.

Q.5. In phase two of shifting the business focus to peripheral accessories production, Connect Innovations has planned
to implement which barrier to discourage potential competitors?
(a) Capital requirement
(b) Product differentiation
(c) Access to distribution channels
(d) Economies of scale

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 Your Answer: Description: By planning to augment production to enormous levels, Connect Innovations aims to benefit
from economies of scale. This allows them to reduce the unit cost of production as the volume increases, making it difficult
for potential competitors to match their cost structure. This acts as a barrier to entry, creating a competitive advantage
based on cost efficiency.

MULTIPLE CHOICE QUESTIONS:

Q.1. The philosophical base of strategic management falls within the concept of -
(a) Strategic Intent
(b) Portfolio Analysis
(c) Globalisation
(d) Vision Statement
Your Answer: Description: Strategic Intent
Q.2. Strategy is-
(a) Proactive in action
(b) Reactive in action
(c) A blend of proactive and reactive actions
(d) None of the above
Your Answer: Description: A blend of proactive and reactive actions
Q.3. Strategy is a game plan used for which of the following?
(a) To take market position
(b) To attract and satisfy customers
(c) To respond to dynamic and hostile environment
(d) All of the above
Your Answer: Description: All of the above
Q.4. Formulation of strategies and their implementation in a strategic management process is undertaken by-
(a) Top level executives
(b) Middle level executives
(c) Lower level executives
(d) All of the above
Your Answer: Description: All of the above
Q.5. Which one of the following, focuses on present business scope- ‘who we are and what we do’?
(a) Mission Statement
(b) Vision Statement
(c) Goals and objectives
(d) Purpose
Your Answer: Description: Mission Statement
Q.6. Functional level managers are concerned with-------------
(a) Strategies that are responsible for the operations of specific business
(b) Strategies that span multiple businesses
(c) Strategies that are specific to particular country
(d) Strategies that encourage a favourable attitude toward change
Your Answer: Description: Strategies that are responsible for the operations of specific business
Q.7. Which statement should be created first and foremost?
(a) Strategy
(b) Vision
(c) Objectives
(d) Mission
Your Answer: Description: Vision
Q.8. Kanchan is the finance head for marketing strategies of a company. Which level of management is she working
at?
(a) Corporate Level
(b) Functional Level
(c) Shop floor Level

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 (d) Consultant Level
Your Answer: Description: Functional Level

Q.9. Strategic management allows an organization to be more-

(a) Authoritative
(b) Participative
(c) Commanding
(d) Proactive
Your Answer: Description: Proactive

Q.10. Reactive strategy can also be termed as-

(a) Planned strategy
(b) Adaptive strategy
(c) Sound strategy
(d) Dynamic strategy
Your Answer: Description: Adaptive strategy

Q.11. The statement “where we want to go” denotes company.

(a) Objective
(b) Policy
(c) Strategy
(d) Vision
Your Answer: Description: Vision

Q.12. Which of the following are responsible for formulating and developing realistic and attainable strategies?
(a) Corporate level and business level managers
(b) Corporate level and functional level managers
(c) Functional managers and business level managers
(d) Corporate level managers, business level managers and functional level managers
Your Answer: Description: Corporate level managers, business level managers and functional level managers

Q.13. Strategic management enables an organization to, instead of companies just responding to threats in their
business environment.
(a) be proactive
(b) determine when the threat will subside
(c) avoid the threats
(d) defeat their competitors
Your Answer: Description: be proactive

Q.14. McDonalds is deciding whether to expand into manufacturing kitchen equipment in China. At what level is this
decision likely to be made?
(a) Business
(b) Corporate
(c) Functional
(d) International
Your Answer: Description: Corporate

Q.15. Which of the following is correct?

(a) Strategy is always pragmatic and not flexible
(b) Strategy is not always perfect, flawless and optimal
(c) Strategy is always perfect, flawless and optimal
(d) Strategy is always flexible but not pragmatic
Your Answer: Description: Strategy is not always perfect, flawless and optimal

Q.16. What is one of the key purposes of having an organizational mission?

(a) Ensuring unanimity of purpose within the organization.
(b) Setting short-term operational goals.
(c) Providing a basis for marketing strategies.

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 (d) Specifying financial forecasts.
Your Answer: Description: Ensuring unanimity of purpose within the organization.
Q.17. Which of the following managers’ role is to translate the general statements/ strategies into concrete strategies of
their individual businesses-
(a) Supervisor
(b) Functional Manager
(c) CEO of the company
(d) All of the above
Your Answer: Description: Functional Manager
Q.18. Shreya, the owner of Kalakaari boutiques, delegated tasks as per competencies of her team. What is she covering
here?
(a) Risk
(b) Work Culture
(c) Employee friendly vision
(d) Proper use of mission statement
Your Answer: Description: Proper use of mission statement.
Q.19. What involves formulating, implementing, and evaluating cross-functional decisions that enable an organization
to achieve its objectives?
(a) Strategy formulation
(b) Strategy evaluation
(c) Strategy implementation
(d) Strategic management
Your Answer: Description: Strategic management
Q.20. An organisation during its strategy planning envisaged entire situation and created a strategy framework. But in
mean time after implementation, it realised that its framework is not effective in certain unique unplanned
situations. What could be the reason for such ineffectiveness?
(a) Strategy is partly proactive and partly reactive.
(b) Lack of analysis and proper planning.
(c) Strategy is highly reactive and highly proactive.
(d) Improper creation of strategic framework.
Your Answer: Description: Strategy is partly proactive and partly reactive
Q.21. Read the following three statements:
(i) Strategies have short-range implications.
(ii) Strategies are action oriented.
(iii) Strategies are rigidly defined.
From the combinations given below select an alternative that represents statements that are true:
(a) (i) and (ii)
(b) (i) and (iii)
(c) (ii) and (iii)
(d) (i), (ii) and (iii)
Your Answer: Description: (i) and (ii)

Q.22. Meba Ltd. had a huge capacity of 40,000 Kilo Litres production of Kerosene Oil, and they were able to achieve 90%
of it almost always, while the teams were also aware that they can achieve 100% capacity with very less efforts,
but always kept margins. Further, the business team was planning to setup two more plants of 20,000 Kilo Litre
capacity each in the next five years. This was a welcomed move from state governments as well. From the above,
which of the following aspects of the objective has not been given much importance?
(a) They should be clear and quantifiable
(b) They should be concise
(c) They should be challenging
(d) They should provide standard for comparative appraisal
Your Answer: Description: They should be challenging

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Q.23. Members of Infinite Care, an NGO, have met and determined that they need to formulate a philosophical basis for
their activities. Thereby they have come up with a statement:-
“Provide children till age 12, living in homeless or low-income situations, with the essential items they need to
thrive – at home, at school and at play”
Identify the area of strategic intent, which the members have stated?
(a) Vision
(b) Business definition
(c) Goal and Objective
(d) Mission
Your Answer: Description: Mission

Q.24. Dee Limited is an international clothing retailer. The company is making the following decisions:
(i) Should another range of shops be established?
(ii) Should the company float more share capital?
How will the premises be fitted out for the new range of shops?
Which of the above decisions will be taken by corporate level managers?
(a) Only (i)
(b) Only (ii)
(c) (i) & (ii)
(d) (ii) & (iii)
Your Answer: Description: (i) & (ii)

Q.25. Imagine you are part of a strategic planning team for a company. As you work on defining the company's identity
and its current business scope, which of the following elements primarily concentrates on answering the question,
"Who we are and what we do?"
(a) Mission statement
(b) Vision statement
(c) Goals and Objectives
(d) Purpose
Your Answer: Description: Mission statement

Q.26. Drishti Care is a not-for profit eye hospital and research centre. Which one of the following statements is likely to
relate to Drishti Care’s vision, rather than its mission statement?
(a) Drishti Care places patient care before all else
(b) Drishti Care will be the global leader in cutting edge eye surgery
(c) Drishti Care offers the highest level of patient care throughout country
(d) Drishti Care consultants strive to continually improve surgical techniques
Your Answer: Description: Drishti Care will be the global leader in cutting edge eye surgery.

Q.27. Ever Grand Group is a diversified company active in a wide range of business lines, including Financial Services,
Fertilizers, Information Technology enabled Services (ITeS), FMCG and Real Estate. The Board of Directors
understand the need of the hour and are determined to further develop the ITeS business, whereby they want better
allocation of human resources and provision of industry-best customer services. To achieve the same, they have
suggested implementation of specific business strategies but the managers are facing difficulties in allocating the
responsibility for implementation of the business strategy amongst them. You being a management expert,
indicate the appropriate persons responsible for translating general statements and business strategies pertaining
to the ITeS Strategic Business Unit (SBU) and ensure a smooth implantation.
(a) Corporate level managers
(b) Functional level managers
(c) General level managers
(d) Business level managers
Your Answer: Description: Functional level managers

Q.28. BBL Bank had strategically decided to setup a separate office in Mumbai back in 2016, specifically to invest in
crypto currencies and in development of robust blockchain facilities. Which importance of strategic management
did BBL Bank made use of?

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 (a) Gives direction to the management of the company.
(b) Helps to be proactive instead of being reactive.
(c) Provides a framework for all major future decisions.
(d) Supports development of new SBUs like in this case separate office for Blockchain.
Your Answer: Description: Helps to be proactive instead of being reactive.

Q.29. The following is the message of a CEO to all his divisional heads: It is significant to understand the persisting
need for developing new vistas of work, and that, of course, is preceded by the acute need for the ability to adapt
the ever-changing external world. We, at Krom Limited, have identified that embracing to digital technology is
where our future lies, and we shall all pledge to make this transition a successful choice which will definitely entail
a few organizational changes.”
The underlying message of the CEO in your opinion is that of a:
(a) Business mission statement
(b) Business definition statement
(c) Strategic objective statement
(d) Strategic transformational leadership statement
Your Answer: Description: Business definition statement

Q.30. Mr. Parek sharing with his friend in an informal discussion that he has to move very cautiously in his organization
as the decisions taken by him have organisation wide impact and involve large commitments of resources. He also
said that his decisions decide the future of his organisation. Where will you place Mr. Parek in the organizational
hierarchy?
(a) Middle Level
(b) Low Level
(c) Top Level
(d) None of the above
Your Answer: Description: Top Level
Description: Proactive, Reactive

Q.31. Velvet Limited is a full-service airline. The company is making the following decisions:
(i) Should a ‘no-frills’, ‘low-fare’ subsidiary be set-up?
(ii) If it is set-up, how should the cabin staff be recruited?
Which of the above decisions will be taken by corporate level managers?
(a) Only (i)
(b) Only (ii)
(c) (i) & (ii)
(d) Neither (i) nor (ii)
Your Answer: Description: Only (i)

Q.32. Greg was heading the Global Biscuits SBU for Jonky’s Ltd. and he got an email congratulating him for being
promoted as the head of entire business of Jonky’s in India. Which of the following statements is true about Greg’s
position?
(i) Greg was a business level manager but now he is a corporate level manager
(ii) Greg was a functional level manager but now he is a corporate level manager
(iii) Greg was a business level manager and now also he is a business level manager
Greg was a corporate level manager and now also he is a corporate level manager
(a) Greg was a business level manager but now he is a corporate level manager
(b) Greg was a functional level manager but now he is a corporate level manager
(c) Greg was a business level manager and now also he is a business level manager
(d) Greg was a corporate level manager and now also he is a corporate level manager
Your Answer Description: Greg was a business level manager but now he is a corporate level manager

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 Chapter 2
Strategic Analysis: External Environment
Case Scenario:
Q.1. Igor Ansoff gave a framework which describes the intensification options available to a firm. Which of
them did KingLike use for its intensification strategy?
(a) Answer - 1 : Market penetration
(b) Answer - 2 : Product development
(c) Answer - 3 : Market development
(d) Answer - 4 : Diversification into new products
Your Answer: Description: Product development

Q.2. Core competency is built on multiple know-hows and is an integration of many resources. As per C.K.
Prahalad and Gary Hamel. KingLike has expert teams and huge buying capacity.
Which amongst the following is not competency is identified?
(a) Customer value
(b) Application of competencies
(c) Market development
(d) Competitor differentiation
Your Answer: Description: Market development

Q.3. Different personnel have been deployed at respective levels in the project working as a business unit.
Answer, Divisional managers and staff are a part of strategic levels in the organization?
(a) Corporate level
(b) Functional level
(c) Business level
(d) Consultant level
Your Answer: Description: Business level

Q.4. _______ is the answer to the basic question “what business we are and what we do”. Many businesses
fail to conceptualize this, and it requires clarity. The company, however, has clarity on the same. Fill in
the blank with the correct option.
(a) Vision
(b) Mission
(c) Strategy
(d) Planning
Your Answer: Description: Mission

Q.5. Vilartment shall function as a strategic business unit (SBU), being one of the key businesses of the
company. Which of the following is not a characteristic of a strategic business unit?
(a) It is a combination of two or more independent businesses.
(b) The planning for the business is done separately.
(c) It has its own set of competitors.
(d) It has its own manager responsible for strategy and profits.
Your Answer: Description: It is a combination of two or more independent businesses.

Multiple Choice Question:

Q.1. KSFs stand for:
(a) Key strategic factors
(b) Key supervisory factors
(c) Key success factors
(d) Key sufficient factors
Your Answer: Description: Key success factors

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 7

Q.2. The term PESTLE analysis is used to describe a framework for analyzing:
(a) Macro Environment
(b) Micro Environment
(c) Both Macro and Micro Environment
(d) None of above
Your Answer: Description: Macro Environment

Q.3. The process of strategic management can be made effective by building-

(a) Product advantage
(b) Market advantage
(c) Competitive advantage
(d) Price advantage
Your Answer: Description: Competitive advantage

Q.4. All are elements of Macro environment except:

(a) Answer - 1 : Society Answer - 2 : Government
(b) Answer - 3 : Competitors
(c) Answer - 4 : Technology
Your Answer: Description: Competitors

Q.5. ‘Attractiveness of firms’ while conducting industry analysis should be seen in-
(a) Relative terms
(b) Absolute terms
(c) Comparative terms
(d) All of the above
Your Answer: Description: Relative terms

Q.6. The term PESTLE analysis is used to describe a framework for analyzing:
(a) Macro Environment
(b) Micro Environment
(c) Both Macro and Micro Environment
(d) None of above
Your Answer: Description: Macro Environment

Q.7. Which of the following is not an example of socio-cultural environment?

(a) Role of women in society
(b) Rising income
(c) Family structure
(d) Educational levels
Your Answer: Description: Family structure

Q.8. Which of the following constitute Demographic Environment?

(a) Nature of economy i.e. capitalism, socialism, Mixed
(b) Size, composition, distribution of population, sex ratio
(c) Foreign trade policy of Government
(d) Economic policy i.e. fiscal and monetary policy of Government
Your Answer: Description: Size, composition, distribution of population, sex ratio

Q.9. Competitive landscape requires the application of-

(a) Competitive advantage
(b) Competitive strategy
(c) Competitive acumen

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 (d) Competitive intelligence
Your Answer: Description: Competitive intelligence

Q.10. What is not one of Michael Porter’s five competitive forces?

(a) Threat to New entrants
(b) Rivalry among existing firms
(c) Bargaining power of unions
(d) Bargaining power of suppliers
Your Answer: Description: Bargaining power of unions

Q.11. Competitive landscape requires the application of-

(a) Competitive advantage
(b) Competitive strategy
(c) Competitive acumen
(d) Competitive intelligence
Your Answer: Description: Competitive intelligence

Q.12. During which stage of the Product Life Cycle will marketing strategies need to concentrate on
differentiating a product from competing products, building brand loyalty and offering incentives to
attract competitor’s customers to switch?
(a) Decline
(b) Growth
(c) Maturity
(d) Introduction
Your Answer: Description: Maturity

Q.13. The emphasis on product design is very high, the intensity of competition is low, and the market growth
rate is low in the stage of the industry life cycle.
(a) Maturity
(b) Introduction
(c) Growth
(d) Decline
Your Answer: Description: Introduction

Q.14. The bargaining power of buyers is high when:

(a) There are few buyers in the market
(b) There are many sellers in the market
(c) Buyers have limited information about the product
(d) Buyers have many alternatives
Your Answer: Description: Buyers have many alternatives

Q.15. A company can reduce the threat of substitutes by:

(a) Increasing product differentiation
(b) Lowering prices
(c) Expanding into new markets
(d) Strengthening supplier relationships
Your Answer: Description: Increasing product differentiation

Q.16. The strategic landscape of healthcare sector around the world is changing rapidly because of-
(a) Doctors Educational Interests
(b) Indian Nurses going to abroad
(c) Internet and Technological advancement
(d) Patients being more aware

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 9

 Your Answer: Description: Internet and Technological advancement

Q.17. Which environment can create new markets and new business segments?
(a) Political environment
(b) Economic environment
(c) Sociocultural environment
(d) Technological environment
Your Answer: Description: Technological environment

Q.18. Which of the following statement is not a factor influencing socio-cultural environment?
(a) Family structure and changes in it, attitude towards and within the family, and family values.
(b) Educational levels, awareness and consciousness of rights, and work ethics of members of society.
(c) Opportunities arising out of technological innovation.
(d) Role of women in society, position of children and adolescents in family and society.
Your Answer: Description: Opportunities arising out of technological innovation.

Q.19. When competitive rivalry is high, it means:

(a) There are few competitors in the market
(b) Customers have low bargaining power
(c) There is intense competition among existing firms
(d) Suppliers have high bargaining power
Your Answer: Description: There is intense competition among existing firms

Q.20. A company can mitigate the threat of new entrants by:

(a) Increasing advertising and marketing efforts
(b) Establishing strong brand loyalty
(c) Building economies of scale
(d) Lowering prices
Your Answer: Description: Building economies of scale

Q.22. Imagine you are tasked with analyzing the competitive landscape for a new product launch. In this
context, which of the following factors is not relevant to understanding the competitive landscape?
(a) Identifying the competitor
(b) Understanding the customer
(c) Determining the strength of the competitors
(d) Determining the weakness of the competitors
Your Answer: Description: Understanding the customer

Q.23. Halder & Sons have invested in latest technology in terms of latest printing machines from Germany and
Israel. But recent advent of internet has posed a big threat to their printing business as majority of their
clients have now turned to more environment friendly options. They are not able to sell off their machines
which are now redundant. What condition are they facing right now?
(a) Answer - 1 : Improper market analysis
(b) Exit Barriers
(c) Paralysis of Strategic Vision
(d) Weak SWOT Analysis
Your Answer: Description: Exit Barriers

Q.24. The directors of Blaina Packaging Co. (BPC), a well-established manufacturer of cardboard boxes is
considering whether to enter the cardboard tube market. Cardboard tubes are purchased by customers
and these products are of various sizes, ranging from large tubes which are used for carpets to small
tubes which are used for films and paper. Another company, Plastic tubes Co. (PTC), produces narrow,

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 10

 but increasing, range of plastic tubes which are capable of housing small products such as film and
paper-based products. This is considered as which of the following Porter’s force for BPC?
(a) Threat of new entrant
(b) Threat of substitutes
(c) Bargaining power of customers
(d) Bargaining power of suppliers
Your Answer: Description: Threat of substitutes

Q.25. Raju started a samosa stall in a local market and the existing momos and bhelpuri stall owners started
creating problems for him. This is an example of-
(a) Bargaining power of suppliers
(b) Threat of new entrants
(c) Substitute products
(d) Nature of rivalry in industry
Your Answer: Description: Threat of new entrants

Q.26. X-Olympus is a gaming software company specializing in developing games for ZBox and GameStation-
4. The company is facing stiff competition due to saturation of market and price wars, which h excessively
favor and highlight their dependence on gaming console manufacturers. Thereby, the company desires
to establish a competitive advantage over industry rivals by enhancing the gaming experience by
expanding into Edge-Cloud Gaming Service on a monthly subscription basis. This service offering does
not require dedicated gaming consoles yet provide customers game streaming in 4K resolution with an
ample range of games to select from. This move is expected to insulate X-Olympus from price wars and
provide a competitive advantage. Kindly identify which of the Michael Porter’s forces and generic
strategies perfectly suits X-Olympus?
(a) Threat of new entrants
(b) Rivalry amongst existing players
(c) Bargaining power of suppliers
(d) Threat from substitutes
Your Answer: Description: Rivalry amongst existing players

Q.27. A newspaper is planning for the next five years. Which of the following demographic influence(s) should
it consider as part of its external environment analysis?
(i) Tax on newspapers
(ii) Import of raw materials will suffer if domestic currency weakens
(iii) Increased mobility around the world requires different language version Carbon emissions from the
use and products of paper – newspaper
(a) (iii) & (iv)
(b) Only (iii)
(c) Only (iv)
(d) (ii), (iii), (iv)
Your Answer: Description: Only (iii)

Q.28. Y Mart super market is planning for the next five years. Which of the following economic influences
should it consider?
(i) Unemployment rate
(ii) Internet ordering
(iii) Animal welfare
(iv) Consumer legislation
(v) Population size
(vi) Interest rates
(a) (i) & (vi)
(b) (i), (iv) & (vi)

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 11

 (c) (iv) & (vi)
(d) (i), (iii), (iv), (vi)
Your Answer: Description: (i) & (vi)

Q.29. ABC Ltd. has identified that all three of its main products are at the maturity phase of the product life
cycle. Which of the following is ABC Ltd. likely to be experiencing due to this?
(a) High, but declining sales
(b) Growing numbers of competitors
(c) Product diversification and differentiation strategies
(d) Adoption of price skimming strategies
Your Answer: Description: Product diversification and differentiation strategies.

Q.30. Training Co. operates a network of accounting training centres throughout Europe, the US and Australia.
The business intends to enter developing markets in order to drive growth and has now decided to enter
India which is 7,500 kilometres from the Training Co.'s UK headquarters. The Board has suggested that
it will require externally focused management information to move into India. Which of the following is
an external factor(s) that the Board should consider while implementing its strategy?
(a) Key local rivals and their strengths and weaknesses
(b) Courses are suitable for this market.
(c) Timing of the courses (Public holidays, religious festivals, etc. to be avoided)
(d) All of the above
Your Answer: Description: All of the above

Q.31. Nicole has inherited a restaurant from her uncle. The restaurant had been under-performing and was
closed six months ago. Nicole wants to begin a new restaurant in the premises with a new name and new
cuisine.
The following are primary activities of the value chain that Nicole should consider except:
(a) In bound logistics: side of local, high-quality produce for ingredients
(b) Outbound logistics: consider delivery of the bound to table.
(c) Marketing: Presentation of meals
(d) Technology: Advanced cooking equipment
Your Answer: Description: Technology: Advanced cooking equipment

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 Chapter 3
Strategic Analysis: Internal Environment
Case Scenario:
Q.1. GreenZone has been the leader in the industry and has deployed some barriers to entry on new players
wanting to tap into this new growing industry. Apparently, Hareeyali has been struggling on the very same
front and thus, the barrier’s magnitude increases. Which of the following is a barrier to entry used by
GreenZone?
(a) Product differentiation
(b) Switching costs
(c) Economies of scale
(d) Brand identity
Your Answer: Description: Economies of scale

Q.2. Hareeyali’s Green points system falls under which strategic marketing technique?
(a) Service marketing
(b) Person marketing
(c) Direct marketing
(d) Augmented marketing
Your Answer: Description: Augmented marketing

Q.3. What demonstrates the strategic intent of Hareeyali's founders in their commitment to make their mark
in every corporate entity across India?
(a) Setting specific financial goals
(b) Focusing on tailored designs for companies
(c) Formulating a strategic approach to address industry gaps
(d) The vision to reach every corporate entity
Your Answer: Description: The vision to reach every corporate entity

Q.4. The management structure of Hareeyali is apparently like any other company with a lot of founders/top
management, as the middle office work is undertaken by business automation. It does reduce costs, but
the lower management has fewer opportunities to grow. Based on that, which of the following is the
organizational structure of Hareeyali?
(a) Network structure
(b) Matrix structure
(c) Divisional structure
(d) Hourglass structure
Your Answer: Description: Hourglass structure

Q.5. Intensity of rivalry determines the attractiveness and profitability of an Industry. The rivalry between the
two companies is furious and the profitability shall be low because of all the below factors, except:
(a) Variable costs of business
(b) GreenZone is currently the industry leader
(c) The industry’s growth is slow
(d) Companies are planning product differentiation
Your Answer: Description: Variable costs of business

Multiple Choice Questions:

Q.1. Competitive Advantage is achieved when __________
(a) The firm successfully formulates the value creation strategy.
(b) The firm successfully implements the value creation strategy.
(c) Other firms are unable to duplicate it or find it too costly to imitate.
(d) All of the above

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 13

 Your Answer: Description: All of the above

Q.2. Internal are activities in an organization that are performed especially well.
(a) Opportunities
(b) Competencies
(c) Strengths
(d) Management
Your Answer: Description: Strengths

Q.3. For a new product, an organization may choose:

(a) Skimming pricing strategy
(b) Penetration pricing strategy
(c) Both (a) and (b)
(d) None of these
Your Answer: Description: Both (a) and (b)

Q.4. The Niche strategy is the best way to enter a:

(a) New market
(b) Growing market
(c) Matured market
(d) None of the above
Your Answer: Description: Matured market

Q.5. Core competencies are the knowledge, skills, and facilities necessary to design and produce______.
(a) Core products
(b) End products
(c) Competitive Advantage
(d) All of the above
Your Answer: Description: Core products

Q.6. The marketing strategy which is used to reduce or shift the demand is:
(a) Enlightened marketing
(b) Synchro-marketing
(c) Place marketing
(d) Demarketing
Your Answer: Description: Demarketing

Q.7. In strategic group mapping, what is the typical axis used to represent dimensions of competition?
(a) Market share and profitability
(b) Cost and revenue
(c) Price and product quality
(d) Innovation and brand reputation
Your Answer: Description: Market share and profitability

Q.8. Walmart a global giant sells fast moving consumer goods at even less than wholesale prices to retail
customers, this is a strategy of?
(a) Market Penetration
(b) Cost Differentiation
(c) Cost Leadership
(d) Market Development
Your Answer: Description: Cost Leadership

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 14

Q.9. Which one out of the following, is not a generic strategy as suggested by Michael Porter?
(a) Focus Strategy
(b) Differentiation Strategy
(c) Cost Leadership Strategy
(d) Best-Cost Provider Strategy
Your Answer: Description: Best-Cost Provider Strategy

Q.10. The merging of analysis of internal and external factors influencing the organisations strategy is known
as:
(a) Complete Studies
(b) Organizational Behavior and Theory
(c) Definitional Analysis
(d) SWOT Analysis
Your Answer: Description: SWOT Analysis

Q.12. Best-cost provider strategy involves providing customers more value for the money by emphasizing on:
(a) Low cost and low-quality difference
(b) Low cost and better-quality difference
(c) High cost and low-quality difference
(d) High cost and better-quality difference
Your Answer: Description: Low cost and better-quality difference

Q.13. Which of the following is a potential limitation of strategic group mapping?

(a) It does not provide insights into competitive advantages.
(b) It cannot account for changes in market conditions.
(c) It may oversimplify the complexity of industry dynamics.
(d) It is not useful for benchmarking against industry standards.
Your Answer: Description: It may oversimplify the complexity of industry dynamics.
Q.14. When two or more firms are located close together on a strategic group map, what does this indicate?
(a) They are direct competitors with similar strategies.
(b) They are in completely different industries.
(c) They are pursuing unrelated diversification.
(d) They have a low market share and profitability.
Your Answer: Description: They are direct competitors with similar strategies

Q.15. SWOT analysis is an evaluation of the organization's strengths and weaknesses and its _____
opportunities and threats.
(a) external; internal
(b) internal; internal
(c) external; external
(d) internal; external
Your Answer: Description: internal; external

Q.16. For an actor in Bollywood, his outstanding performance would be a/an

(a) Asset
(b) Strategic Asset
(c) Core competency
(d) Capability
Your Answer: Description: Core competency

Q.17. “Competitor’s Differentiation’, Customer Value’ and ‘Application of Competitiveness’ are the three
important areas of:
(a) Value chain analysis

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 15

 (b) Business process re-engineering
(c) Competitor analysis
(d) Core competencies
Your Answer: Description: Core competencies

Q.18. How can strategic group mapping help a company in its strategic planning?
(a) By identifying opportunities for cost-cutting
(b) By highlighting areas for vertical integration
(c) By revealing gaps in the market that can be exploited
(d) By determining the best pricing strategy for a product
Your Answer: Description: By revealing gaps in the market that can be exploited.

Q19. An airline operator is providing special lounge at major airports for its frequent flyers. This marketing
technique is known as:-
(a) Relationship Marketing
(b) Augmented Marketing
(c) Social Marketing
(d) Synchro Marketing
Your Answer: Description: Relationship Marketing

Q.20. The process of creating, maintaining, and enhancing strong, value- laden relationships with customers
and other stakeholder is:
(a) Social marketing
(b) Augmented marketing
(c) Direct marketing
(d) Relationship marketing
Your Answer: Description: Relationship marketing

Q.21. In Michael Porter’s generic strategy emphasizes producing standardized products at a very low per
unit-cost for consumers who are price sensitive.
(a) Answer - 1 : Cheap leadership
(b) Answer - 2 : Inferior product leadership Answer - 3 : Cost leadership
(c) Answer - 4 : Cost benefit
Your Answer: Description: Cost leadership

Q.22. What are the three different bases given by Michael Porter’s Generic Strategies to gain competitive
advantage?
(a) differentiation, integration and compensation
(b) integration, focus and differentiation
(c) compensation, integration and focus
(d) cost leadership, differentiation and focus
Your Answer: Description: cost leadership, differentiation and focus

Q.23. The activity of identifying the companies is known as:

(a) Strategic Audit
(b) Portfolio Analysis
(c) Strategic Surveillance
(d) Strategic Group mapping
Your Answer: Description: Strategic Group mapping

Q.24. Marketing and sales of Hindustan Unilever Limited and Low operating cost by Walmart are examples of
what?
(a) Competitive Advantage

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 16

 (b) Core Competency
(c) Strategic Planning
(d) Key Performance Indicators (KPIs)
Your Answer: Description: Core Competency

Q.25. ‘Strategic group mapping’ helps in-

(a) Identifying the strongest rival companies
(b) Identifying weakest rival companies
(c) Identifying weakest and strongest rival companies
(d) None of the above
Your Answer: Description: Identifying weakest and strongest rival companies
Q.26. External opportunities and threats are usually:
(a) the minor cause of organizational demise or success
(b) least important for CEOs and the board of directors
(c) not as important as internal strengths and weaknesses
(d) largely uncontrollable activities outside the organization
Your Answer: Description: largely uncontrollable activities outside the organization

Q.27. Big Billion Days sale by Flipkart is an example of which type of strategic marketing technique?
(a) Synchro Marketing
(b) Concentrated Marketing
(c) Demarketing
(d) Enlightened Marketing
Your Answer: Description: Synchro Marketing

Q.28. ABC Fashion provides early access and exclusive designs to its exclusive clientele, emphasizing
personalized experiences. Which marketing type does this exemplify?
(a) Augmented marketing
(b) Service marketing
(c) Person marketing
(d) Relationship marketing
Your Answer: Description: Relationship marketing

Q.29. In case of home appliances, the concept of offering additional customer services and benefits to the
customers, can be considered as
(a) Social Marketing
(b) Augmented Marketing
(c) Concentrated Marketing
(d) Differential Marketing
Your Answer: Description: Augmented Marketing

Q.30. The goal of SWOT analysis is to the organization's opportunities and strengths while _________ its
threats and ________ its weaknesses.
(a) avoid; neutralizing; correcting
(b) exploit; neutralizing; correcting
(c) avoid; capitalizing; neutralizing
(d) exploit; avoiding; ignoring
Your Answer: Description: exploit; neutralizing; correcting

Q.31. A firm successfully implementing a differentiation strategy would expect:

(a) Customers to be sensitive to price increases.
(b) To charge premium prices.
(c) Customers to perceive the product as standard.

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 17

 (d) To automatically have high levels of power over suppliers.
Your Answer: Description: To charge premium prices.

Q.32. A famous restaurant enjoys full occupancy during the lunch and dinner time for last few months. In fact,
many customers go back as they have to wait for their turn. Between 15:00 hours to 18:00 hours, the
occupancy rate is near to nil. To raise the footfalls of customers during this lean time, the owner offers a
discount of 20% on total bill if a customer comes in these 3 hours. Which type of marketing strategy does
the restaurant follow to attract the customers in the lean period?
(a) Differential Marketing
(b) Synchro-marketing
(c) Place Marketing
(d) Concentrated Marketing
Your Answer: Description: Synchro-marketing

Q.33. Differentiation Strategy can be achieved by following measures:

1. Match products with tastes and preferences of customers.
2. Elevate the performance of the product.
3. Rapid product innovation Which of the above is true:
(a) (1) and (2)
(b) (1) and (3)
(c) (2) and (3)
(d) (1), (2) and (3)
Your Answer: Description: (1), (2) and (3)

Q.34. AB is a supermarket chain operating in North India. Currently, AB is seeking to enhance its shareholder
value as its main objective. Therefore, the SWOT analysis can be used to identify how the business can
build on its strengths and take corrective action for its weakness.
Match the columns in respect of the following elements of SWOT analysis:
(i) Well established in the North (A) Strength
(ii) Not much opportunity for further organic growth in the North (B) Weakness
(iii) Reduction in competitiveness as well as losing market share (C) Opportunity
due to recent merge of two rivals
(iv) Possibility of increasing the use of debt, in turn resulting in (D) Threat
lower costs as debt is cheaper than equity
(a) (i) – A, (ii) – B, (iii) – D, (iv) – C
(b) (i) – C, (ii) – D, (iii) – A, (iv) - B
(c) (i) – A, (ii) – C (iii), - B (iv), – D
(d) (i) – C, (ii) – D, (iii) – B (iv), - A
Your Answer: Description: (i) – A, (ii) – B, (iii) – D, (iv) – C

Q.35. NS is the market leader in sportswear in Beeland, selling a variety of sportswear products. The board has
recently instituted a review of the competitive position of NS by commissioning a SWOT analysis.
Match the columns in respect of the following elements of SWOT analysis:
Column A Column B
• Excellent brand awareness of NS i. Strength
• New product to be introduced by NS in the ii. Weakness
market for new sport at the world championship iii. Opportunities
• Child labour scandal in the sportswear industry iv. Threats
which may cause a negative impact on the
image of NS due to growth of social media
• Loss of key brand ambassador of NS
(a) (1)-(iii), (2)-(i), (3)-(ii), (4)-(iv)

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 18

 (b) (1)-(i), (2)-(ii), (3)-(iii), (4)-(iv)
(c) (1)-(i), (2)-(iii), (3)-(iv), (4)-(ii)
(d) (1)-(i), (2)-(iii), (3)-(ii), (4)-(iv)
Your Answer: Description: (1)-(i), (2)-(ii), (3)-(iii), (4)-(iv)

Q.36. ABC is a marketing consultancy business. ABC’s most recent corporate analysis has identified that three
new businesses have recently entered its market and started aggressively targeting ABC’s key client. As
part of ABC’s corporate analysis, these three new businesses would be a -
(a) Strength
(b) Opportunity
(c) Weakness
(d) Threat
Your Answer: Description: Threat

Q.37. Big retail stores (e.g., Big Bazaar) and supermarkets have special core competencies in the areas of:
A. Merchandising
B. Securing supplies at lower cost
C. In-house activity management
D. Computerized stock ordering and billing systems
E. Own brand labels Select the correct options:
(a) A, C, D
(b) B, D, E
(c) A, B, C, D
(d) A, B, D, E
Your Answer: Description: A, B, D, E

Q.38. A renowned coffee chain offers a loyalty program where customers earn points for every purchase, which
can be redeemed for free drinks or snacks. This marketing technique is known as:
(a) Augmented Marketing
(b) Synchro Marketing
(c) Social Marketing
(d) Relationship Marketing
Your Answer: Description: Relationship Marketing

Q.39. Dharam, an organic farming expert was consulting a group of farmers to build sustainable brand of their
corn produce. He suggested to follow the strategy of the biggest player in this business. Which of the
following can be used to identify such a player?
(a) BCG Matrix
(b) ADL Matrix
(c) Dominant Force Analysis of the Industry
(d) Strategic Group Mapping
Your Answer: Description: Strategic Group Mapping

Q.40. XYZ is a high-end department store chain that is struggling to survive. A number of other department
store chains compete with it and are also struggling. How should XYZ best analyse the industry in order
to work out how to increase performance?
(a) Identify groups of department stores that compete in a similar way.
(b) Show the competitive pathways that various competitors will adopt.
(c) Determine the combined effect of all the stores’ different strategies.
(d) Ignore key success factors that affect discount stores.
Your Answer: Description: Identify groups of department stores that compete in a similar way.

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 19

Q.41. Indian Company plans to offer snack during travel through ropeways and two free movies tickets on
completion of the travel. This marketing technique is known as________
(a) Augmented marketing
(b) Synchro marketing
(c) Social marketing
(d) Demarketing
Your Answer: Description: Augmented marketing

Q.42. Tomtom a sneaker brand wanted to understand their competitive landscape and thus were looking for
the weakest competitors to buy them and thereby decrease competition. Which of the following will be
most helpful for them to begin with their plans?
(a) Mergers and Acquisition Planning
(b) BCG Growth Matrix
(c) Strategic Group Mapping
(d) GE Stop Light Matrix
Your Answer: Description: Strategic Group Mapping

Q.43. Match the core competencies for the following industry:

1. Automobile Industry A. Styling, efficient de network performance
2. Food Processing Industry B. Reputation, innovation new policies
3. Life Insurance Industry C. Right mix available each store, pricing
4. Super Market Industry D. Health Aspects, Product development, distribution channel
(a) 1-A, 2-D, 3-B, 4-C
(b) 1-D, 2-A, 3-C, 4-B
(c) 1-A, 2-B, 3-C, 4-D
(d) 1-B, 2-C, 3-D, 4-A
Your Answer: Description: 1-A, 2-D, 3-B, 4-C

Q.44. Perscopter, a manufacturer of private helicopter offers unique features that fullfill the demands of a
narrow market. It competes in market based on its uniqueness and custom- oriented private helicopters.
Perscopter provides limited number of high-end helicopters with ultimate features. Which business
strategy is being followed by Perscopter?
(a) Differentiation
(b) Focused cost leadership
(c) Cost leadership
(d) Focused differentiation
Your Answer: Description: Focused differentiation

Q.45. An advertising company has 12 staff – 4 of whom are joint owners. It has a strong client base across
many industries such as healthcare, training, publishing and sports. However, it has never taken working
capital management and the financial side of the business seriously even to the extent that it can never
be sure that the clients are billed properly. It now has a chance to bid for a new large, national contract
from a major company. Match the columns in respect of the following elements of SWOT analysis:
Column A Column B
 Tender for a major contract a. Strength
 Rival companies in the industry trying to b. Weakness
pitch for and recruit the key staff
 . Well diversified client portfolio c. Opportunities
 . High level of receivables d. Threats
(a) 1-a, 2-b, 3-c, 4-d
(b) 1-c, 2-d, 3-a, 4-b

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 20

 (c) 1-c, 2-b, 3-a, 4-b
(d) 1-a, 2-d, 3-c, 4-b
Your Answer: Description: 1-c, 2-d, 3-a, 4-b
Q.46. Trekking Poles is a small company based in the Himalayan ranges in India. It is known in the region for
its hill walking sticks. Trekking Poles sell specialist walking equipment in their small shop at the foot of
the mountains. They do not have a website yet have been able to sell their products at premium prices.
Which of the following one of Porter’s generic strategies best fits Trekking Poles?
(a) Cost leadership
(b) Differentiation
(c) Focused cost leadership
(d) Focused differentiation
Your Answer: Description: Focused differentiation
Q.47. Sanjivni Pharmaceuticals Limited manufacturers a cough syrup Zenus. It has modified Zenus syrup,
claiming that the Zenus cough syrup is sugar-free, and the consumer will not feel drowsiness after
consuming this cough syrup. Consumers found this product as unique. The sales of Zenus cough syrup
have increased as expected. The price of this sugar-free syrup is higher by 20% than the earlier syrup.
Identify the strategy adopted by Sanjivni Pharmaceuticals Limited.
(a) Focus strategy
(b) Best cost provider strategy
(c) Differentiation strategy
(d) Cost leadership strategy
Your Answer: Description: Differentiation strategy

Q.48. Adolf Play Sportswear sells a variety of sportswear under its own well-known brand name. In order to
have detailed strategies for the company’s objectives, which of the following cannot be considered as a
“Strength” as per SWOT analysis?
(a) High market share
(b) Excellent brand awareness
(c) Strong revenue growth (compared to industry average of 10%)
(d) Possibility of new product to be introduced in the market for new sport at the world championship.
Your Answer: Description: Possibility of new product to be introduced in the market for new sport at the world
championship.

Q.49. We have heard countless, heart breaking stories from companies that are facing immense pressure on
their cash flow due to the economic crisis brought on by the COVID-19 pandemic. To adapt to the
changing environment, companies should undertake SWOT analysis. Which of the following is a “Threat”
affecting the companies?
(a) Customers are likely to cut back on discretion any expenditure and may move to lower cost rivals
(b) Loss of key staff
(c) ender for new client
(d) Both a & b
Your Answer: Description: Both a & b

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 21

 Chapter 4
Strategic Choice
Case scenario
Q.1. LUXHEAL envisages to be the most admired and responsible healthcare equipment company with
international footprint. Is this a vision or a mission? If this is LUXHEAL’s vision, then which of the
following is not essential while drafting the strategic vision?
(a) It should clearly illuminate the direction in which the organisation is headed.
(b) It should create enthusiasm among members of the organization.
(c) It should be rigidly defined to prepare the organisation for the future.
(d) This is a mission statement and not a vision statement.
Your Answer: Description: It should be rigidly defined to prepare the organisation for the future.

Q.2. Considering the need for LUXHEAL to build its own distribution channels due to WeGO's legal dispute,
which category in the BCG matrix might be relevant for this effort?
(a) Star
(b) Dogs
(c) Cash Cows
(d) Question Mark
Your Answer: Description: Question Mark

Q.3. Dr. Budhiraja has been instrumental in bringing about monumental changes in the company’s structure
and working culture. He has been very approachable yet feared by employees at all levels. What kind of
leadership style can his style be termed as?
(a) Transactional leadership style
(b) Autocratic leadership style
(c) Diplomatic leadership style
(d) Transformational leadership style
Your Answer: Description Transformational leadership style

Q.4. The recent international recognition that the company has got for WHEELIX, has turned around its
strategy all together. Which of the following Michael Porter’s generic strategies should LUXHEAL follow?
(a) Cost leadership
(b) Focused differentiation
(c) Differentiation
(d) Focused cost leadership
Your Answer: Description: Focused differentiation

Q.5. Which of the following is a key entry barrier for LUXHEAL?

(a) Answer - 1 : Brand identity
(b) Answer - 2 : Capital requirement
(c) Answer - 3 : Access to distribution channels
(d) Answer - 4 : Product differentiation
Your Answer: Description: Access to distribution channels, Rest all are amply covered for LUXHEAL except
access to distribution channels.

Multiple Choice Questions:

Q.1. Diversification primarily helps to:
(a) Reduce competition
(b) Reduce risk
(c) Reduce taxes
(d) Reduce costs
Your Answer: Description: Reduce risk

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 22

Q.2. Stability strategy is a strategy.
(a) SBU level
(b) Corporate level
(c) Business level
(d) Functional level
Your Answer: Description: Corporate level

Q.3. In the GE Matrix, which axis represents industry attractiveness?

(a) Horizontal axis
(b) Vertical axis
(c) Diagonal axis
(d) Radial axis
Your Answer: Description: Vertical axis

Q.4. Dogs in BCG Matrix can be minimized through?

(a) Converting to Cash Cows
(b) Liquidating or Divesting
(c) Foreign Direct Investment Opportunity
(d) Bad Debt Writing off
Your Answer: Description: Liquidating or Divesting

Q.5. In context to BCG matrix, which of the following statements is not correct?
(a) The BCG assumes that all products will grow and mature.
(b) The BCG can be used to examine a company’s current product portfolio.
(c) A company with only cash cows and dogs has limited long-term prospects.
(d) All of the above
Your Answer: Description: The BCG assumes that all products will grow and mature.

Q.6. Conglomerate diversification is another name for which of the following?

(a) Related diversification
(b) Unrelated diversification
(c) Portfolio diversification
(d) Acquisition diversification
Your Answer: Description: Unrelated diversification

Q.7. Which strategy is implementedafter the failure of turnaround strategy?

(a) Expansion strategy
(b) Diversification strategy
(c) Divestment strategy
(d) Growth strategy
Your Answer: Description: Divestment strategy

Q.8. Merger of two organisations that are operating in the same industry but at different stages of production
and distribution system is called: -
(a) Horizontal Merger
(b) Vertical Merger
(c) Co-generic Merger
(d) Conglomerate Merger
Your Answer: Description: Vertical Merger

Q.9. What is the strategic approach for businesses in the "Harvest" quadrant of the ADL Matrix?
(a) Invest for growth
(b) Maximize short-term cash flow

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 23

 (c) Divest immediately
(d) Maintain current operations
Your Answer: Description: The strategic approach for businesses in the "Harvest" quadrant of the ADL Matrix is
to maximize short-term cash flow. These businesses may have declining market attractiveness or competitive
positions, so the focus is on extracting maximum value before potential divestment.

Q.10. A rubber manufacturer starts making shoe soles and gum can be termed as?
(a) Conglomerate Diversification
(b) Concentric Diversification
(c) Horizontal Integration
(d) Vertical Integration
Your Answer: Description: Concentric Diversification

Q.11. If suppliers are unreliable or too costly, which of these strategies may be appropriate?
(a) Horizontal integration
(b) Backward integration
(c) Market penetration
(d) Forward integration
Your Answer: Description: Backward integration

Q.12. One of the primary advantages of diversification is sharing core competencies. In order for diversification
to be most successful, it is important that
(a) The target market is the same, even if the products are very different.
(b) The products use similar distribution channels
(c) The methods of production are the same.
(d) The similarity required for sharing core competencies must be in the value chain, not in the product.
Your Answer: Description: The similarity required for sharing core competencies must be in the value chain, not
in the product.

Q.13. What is the primary focus of managing "Stars" in the BCG Matrix?
(a) Invest heavily to maintain market leadership
(b) Harvest cash flow
(c) Consider divestment
(d) Maintain the status quo
Your Answer: Description: The primary focus for "Stars" in the BCG Matrix is to invest heavily in order to maintain
or increase market share and leadership. This is because Stars have high growth potential and should be nurtured
to become future Cash Cows.

Q.14. An organisation diversifies in backward sequence in the product chain and enters specific product/
process to be used in existing products. It is:
(a) Forward diversification.
(b) Vertical diversification.
(c) Horizontal diversification.
(d) Reactive diversification.
Your Answer: Description: Vertical diversification.

Q.15. The most probable time to pursue a harvest strategy is in a situation of

(a) High growth
(b) Decline in the market life cycle
(c) Strong competitive advantage
(d) Mergers and acquisitions
Your Answer: Description: Decline in the market life cycle

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 24

Q.16. What refers to a strategy of seeking ownership of taking over competitor’s product?
(a) Backward integration
(b) Forward integration
(c) Concentric diversification
(d) Horizontal integration
Your Answer: Description: Horizontal integration

Q.17. In the ADL Matrix, which quadrant represents businesses with high market attractiveness and a strong
competitive position?
(a) Build
(b) Harvest
(c) Divest
(d) Maintain
Your Answer: Description: In the ADL Matrix, the "Build" quadrant represents businesses with high market
attractiveness and strong competitive positions. These businesses have the potential for growth and should be
invested in to maximize their potential.

Q.18. Match the following:

Question Answer
(i) Retrenchment strategy 1. Retrenchment may be done either externally.
(ii) Divestment strategy 2. Divesting a major product line or market
(iii) Turnaround strategy 3. Involves the sale or liquidation of business.
(a) i-1, ii-2, iii-3
(b) i-3, ii-2, iii-1
(c) i-2, ii-3, iii-1
(d) i-3, ii-1, iii-2
Your Answer: Description: i-2, ii-3, iii-1

Q.19. The business news anchor said that “chillflix’s dead business is worth more than alive”. What did she
hint at?
(a) Restructuring Business
(b) Liquidation Strategy
(c) Business Process Re-engineering
(d) Divestment
Your Answer: Description: Liquidation Strategy

Q.20. Retrenchment strategy in the organization can be explained as-

(a) Reducing trenches (gaps) created between individuals.
(b) Divesting a major product line or market.
(c) Removal of employees from job through the process of reorganization.
(d) Removal of employees from job in one business to relocate them in other business.
Your Answer: Description: Divesting a major product line or market.

Q.21. A company that produces and sells athletic shoes may acquire or merge with another athletic shoe
manufacturer in order to increase their market share and reduce competition is an example of-
(a) Horizontal integration
(b) Backward integration
(c) Market penetration
(d) Forward integration
Your Answer: Description: Horizontal integration

Q.22. What is the significance of businesses located in the "Invest/Grow" quadrant of the GE Matrix?
(a) They have low industry attractiveness and competitive position.

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 25

 (b) They require further analysis and consideration for investment.
(c) They are well-established cash cows.
(d) They should be divested immediately.
Your Answer: Description: Businesses located in the "Invest/Grow" quadrant of the GE Matrix have high industry
attractiveness but may have varying competitive positions. They require further analysis and consideration for
potential investment to capitalize on their growth potential.

Q.23. Which quadrant of the BCG Matrix represents businesses or products with low market share in a slow-
growing market?
(a) Stars
(b) Cash Cows
(c) Question Marks
(d) Dogs
Your Answer: Description: Dogs in the BCG Matrix represent businesses or products with a low market share in
a slow-growing market. They typically generate limited profits and are not expected to show significant growth.

Q.24. Vertical integration may be beneficial when-

(a) Lower transaction costs and improved coordination are vital and achievable through vertical integration.
(b) Flexibility is reduced, providing a more stationary position in the competitive environment.
(c) Various segregated specializations will be combined.
(d) The minimum efficient scales of two corporations are different.
Your Answer: Description: Lower transaction costs and improved coordination are vital and achievable through
vertical integration.

Q.25. Hupo a honey brand decided to start a new brand for making honey ginger candies to meet the rising
demand. Identify their growth strategy?
(a) Conglomerate Diversification
(b) Concentric Diversification
(c) Vertical Integration
(d) Horizontal Integration
Your Answer: Description: Concentric Diversification

Q.26. General Public is discerning from buying air conditioning units based on the Health Ministry guidelines
regarding emergence of a contagious viral pandemic. Consequently, Nebula Pvt Ltd, a manufacturer of
evaporation coils used in air conditioning units has faced significant loss in working capital due to sharp
fall in demand. The company conducted financial assessment and developed a workable action plan
based on short and long term financial needs. But for immediate needs, an emergency plan has been
implemented. It includes selling scrap, asset liquidation and overheads cost reduction. Further, to avoid
any such untoward event in future, they plan to diversify into newer business areas along with its core
business. Identify the strategy opted by M/s. Nebula Pvt Ltd?
(a) Retrenchment strategy
(b) Liquidation strategy
(c) Turnaround strategy
(d) Divestment strategy
Your Answer: Description: Turnaround strategy

Q.27. You have been appointed as a strategic manager at ABC Company, which is currently facing a situation
where one of its products has entered the maturity stage of its Product Life Cycle (PLC).
The company has made a deliberate decision to maintain its existing business operations and is content
with achieving incremental growth for this product aligns with which of the following strategies?
(a) Expansion strategy
(b) Stability strategy
(c) Retrenchment strategy

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 26

 (d) Combination strategy
Your Answer: Description: Stability strategy

Q.29. Mixfix was having a tough time with its operations and wanting to restructure itself from scratch. For this,
they consult a veteran in business strategy, Mrs. Sunita K, who post analysis of their business said, “your
dead business is worth more than alive”. What did Mrs. Sunita hint at?
(a) Restructuring Business
(b) Liquidation
(c) Business Process Re-engineering
(d) Divestment
Your Answer: Description: Liquidation

Q.30. Baba Pvt. Ltd has seventeen factories, nine of which they recently gave to other producers on lease. This
has increased their cash inflows to a great extent, and they are enjoying this surplus by investing the
same in financial assets. Such a strategy can be termed as which of the following?
(a) Divest
(b) Harvest
(c) Hold
(d) Build
Your Answer: Description: Harvest

Q.31. Sumedha has a home-grown brand which makes traditional lehen gas. She thought of expanding her
business and added linen jackets and cotton trousers to her product line. Which strategy is she working
on?
(a) Backward integration
(b) Intensification
(c) Diversification
(d) Horizontal Diversification
Your Answer Description: Intensification

Q.32. XYZ Corporation is a multinational conglomerate operating in various industries. They have a diverse
portfolio of businesses, including a leading consumer electronics division, a growing e-commerce
platform, a mature industrial machinery division, and a newly established software development unit.
Which division of XYZ Corporation would most likely be classified as a "Star" in the BCG Growth-Share
Matrix?
(a) Consumer Electronics Division
(b) E-commerce Platform
(c) Industrial Machinery Division
(d) Software Development Unit
Your Answer: Description: E-commerce Platform

Q.33. Catalyst Polymers, a textile producing firm, has witnessed unprecedented sales growth in the last few
years due to favorable market conditions abroad. As a result, the company diversified its activities to
Chemical Manufacturing, Steel Forging and Metal Dye Manufacturing. The investment in steel forging in
particular has not been successful due to strict environmental laws enacted by the Government. The said
strategic business unit (SBU) though generates enough cash to sustain but does not have much future
and sometimes requires cash for survival. Consequently, the management has engaged an expert in the
field to help them classify the SBUs. Employing the Boston Consulting Group (BCG) Growth-Share Matrix,
the expert advised the company to disinvest or liquidate Steel Forging SBU. Classify the Steel Forging
SBU into the most appropriate matrix.
(a) Star
(b) Cash cow
(c) Question mark

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 27

 (d) Dog
Your Answer: Description: Dog

Q.34. Beta Company, a car manufacturer is buying up a supplier so that it gets a dedicated supplier with both
guaranteed quality and price. The material could be manufactured when required by Beta Company
leading to lower inventory levels. Which strategy has Beta Company adopted?
(a) Backward integration
(b) Forward integration
(c) Conglomerate diversification
(d) Horizontal integrated diversification
Your Answer: Description: Backward integration

Q.35. A tea farm owners plan to open tea cafes in tourist spots and to sell their own premium tea to build a
brand. Which of the following can this be termed as?
(a) Backward Integration
(b) Forward Integration
(c) Diversification
(d) Horizontal Integration
Your Answer: Description: Forward Integration

Q.36. The Specialist Clothing Company (SCC) is a manufacturer of a wide range of clothing. Fashion is one of
the five divisions of SCC. Fashion is operating in a market with high growth and is a market leader. By
the next year, it is predicted to have 10% of the market share in a growing market. Fashion should be
classified as which of the following according to the BCG matrix.
(a) Star
(b) Dog
(c) Cash cow
(d) Question mark
Your Answer: Description: Star

Q.37. Sanjay guided the team of young entrepreneurs to hold to the current position in the market till they get
a big opportunity. What could be their business termed as basis Sanjay’s advice?
(a) Question Mark
(b) Cash Cow
(c) Star
(d) Dog
Your Answer: Description: Question Mark

Q.38. You have been appointed as a strategic manager at ABC Company, which is currently facing a situation
where one of its products has entered the maturity stage of its Product Life Cycle (PLC). The company
has made a deliberate decision to maintain its existing business operations and is content with achieving
incremental growth for this product aligns with which of the following strategies?
(a) Expansion strategy
(b) Stability strategy
(c) Retrenchment strategy
(d) Combination strategy
Your Answer: Description: Stability strategy

Q.39. Nom-Nom is a fast-food brand and has been facing a lot of competition from American brands and has
decided to NOT go very aggressive but to just preserve market share? Which of the strategy Nom-Nom
is following?
(a) Build
(b) Hold

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 28

 (c) Harvest
(d) Divest
Your Answer: Description: Hold

Q.40. Corporate strategy includes:

(i) expansion and growth, diversification, takeovers and mergers
(ii) Vertical and horizontal integration, new investment and divestment areas
(iii) determination of the business lines
From the combinations given below select a correct alternative:
(a) (i), and (ii)
(b) (i) and (iii)
(c) (ii) and (iii)
(d) (i) (ii) and (iii)
Your Answer: Description: (i) (ii) and (iii)

Q.41. Stylish Fabric Ltd., a clothes manufacturer is buying up a chain of retail outlets to differentiate its clothes
from those of its competitors through branding. This gives an opportunity for higher margins. Stylish
Fabric Ltd. will also be able to produce clothes as the shop demands them (JIT) leading to reductions in
inventory levels.
Which strategy has Stylish Fabric Ltd. adopted?
(a) Backward integration
(b) Forward integration
(c) Conglomerate diversification
(d) Horizontal integrated diversification
Your Answer: Description: Forward integration

Q.42. Spark Pvt. Ltd., an automobile seat manufacturing company has been witnessing superior growth
compared to its competitors due to management’s greater emphasis on quality of production. In the
previous Board Meeting, the management has decided to expand the existing business. The CEO will be
travelling to south-east Asia and Africa for identifying new geographical places and new product
dimensions and will try to establish new distribution channels to attract new customers abroad. Based
on the Igor Ansoff’s product market growth matrix, identify which of the growth strategy the company is
employing in the current case.
(a) Market penetration
(b) Product development
(c) Market development
(d) Diversification
Your Answer: Description: Market development

Q.43. Freshy Drinks provides fruit juices to a number of super market chains that sell them under their own
label. Its marketing manager explains, ‘We’ have got a large number of products. Our freshly squeezed
orange juice is doing fine (high market share). The market for orange juice appears to be matured (low
growth). We’ve got advanced production and bottling equipment and long-term contracts with some of
major growers.
Which position best fits the “orange juice product” as per BCG matrix?
(a) Cash cow
(b) Question mark
(c) Star
(d) Dog
Your Answer: Description: Cash cow

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 29

Q.44. A beverage company has more than 500 soft drink brands, but none of them is anywhere close to its
premium brand One Sip in awareness, revenue and profits. As per BCGs Matrix, One Sip brand for the
beverage company is?
(a) Star
(b) Dog
(c) Cash cow
(d) Question mark Your Answer: Description: Cash cow

Q.45. T Ltd. is a Delhi based super market, which has grown from a position where 30 years ago it had a revenue
of around `50 crores p.a. to a position today where revenue exceeds `5000 crores p.a. and profit exceed
`1000 crores p.a. It has achieved this growth through a combination of strategies many of which can be
plotted on to the Ansoff matrix?
Existing products New products
Existing markets A C
New markets B D
i. Expansion into clothing and electrical sales
ii. 24-hour opening
iii. Selling its products on internet
iv. Overseas expansion
(a) A-(ii) D-(ii) B-(iii) C-(iv)
(b) B-(i) C-(ii) A-(iii) D-(iv)
(c) C-(i), A-(ii) D-(iii) B-(iv)
(d) D-(i) B-(ii) C-(iii) A-(iv)
Your Answer: Description: C-(i), A-(ii) D-(iii) B-(iv)

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 30

 Chapter 5
Strategy Implementation and Evaluation
Case Scenario
Q.1. As per Peter Drucker, it is important to have a meaningful answer to the question, ‘what business are we
in?’. Through Avajuice, the company answered the following as ’We Offer Tasty Health for our Teens’.
Among which of the following does this statement fall?
(a) Vision
(b) Mission
(c) Business definition
(d) Action plan
Your Answer: Description: Mission

Q.2. The processes have been standardised as a strategy to improve margins and gain more negotiation
power in the market. Which of the generic strategies by Michael Porter has the company deployed to
create a favourable scenario for itself?
(a) Differentiation
(b) Focussed differentiation
(c) Cost leadership
(d) Focussed cost leadership
Your Answer: Description: Focussed cost leadership

Q.3. Igor Ansoff developed a framework which describes the intensification options available to a firm. Which
of the following did Strong Girls Private Ltd. use for intensifying Avajuice?
(a) Market penetration
(b) Product development
(c) Market development
(d) Diversification strategy
Your Answer: Description: Market development

Q.4. Which factor from the PESTLE analysis played a crucial role in the company's decision to focus
exclusively on the health beverage market for teenage girls?
(a) Social
(b) Technological
(c) Economic
(d) Legal
Your Answer: Description: Social

Q.5. Avajuice can be identified as a Star as per BCG’s Growth Matrix, based on the rapid growth it has shown
and the enormous funds it demanded to maintain the market and fuel the growth potential. What would
Avajuice turn into, as per the matrix, when its growth slows down?
(a) Dog
(b) Question mark
(c) Will remain a star
(d) Cash cow
Your Answer: Description: Cash cow

Multiple Choice Questions:

Q.1. Sanjay guided the team of young entrepreneurs to hold to the current position in the market till they get
a big opportunity. What could be their business termed as basis Sanjay’s advice?
(a) Question Mark
(b) Cash Cow
(c) Star

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 31

 (d) Dog
Your Answer: Description: Question Mark

Q.2. Stylish Fabric Ltd., a clothes manufacturer is buying up a chain of retail outlets to differentiate its clothes
from those of its competitors through branding. This gives an opportunity for higher margins. Stylish
Fabric Ltd. will also be able to produce clothes as the shop demands them (JIT) leading to reductions in
inventory levels.
Which strategy has Stylish Fabric Ltd. adopted?
(a) Backward integration
(b) Forward integration
(c) Conglomerate diversification
(d) Horizontal integrated diversification
Your Answer: Description: Forward integration

Q.3. Freshy Drinks provides fruit juices to a number of super market chains that sell them under their own
label. Its marketing manager explains, ‘We’ have got a large number of products. Our freshly squeezed
orange juice is doing fine (high market share). The market for orange juice appears to be matured (low
growth). We’ve got advanced production and bottling equipment and long-term contracts with some of
major growers.
Which position best fits the “orange juice product” as per BCG matrix?
(a) Cash cow
(b) Question mark
(c) Star
(d) Dog
Your Answer: Description: Cash cow

Q.4. The Specialist Clothing Company (SCC) is a manufacturer of a wide range of clothing. Fashion is one of
the five divisions of SCC. Fashion is operating in a market with high growth and is a market leader. By
the next year, it is predicted to have 10% of the market share in a growing market. Fashion should be
classified as which of the following according to the BCG matrix.
(a) Star
(b) Dog
(c) Cash cow
(d) Question mark
Your Answer: Description: Star

Q.5. You have been appointed as a strategic manager at ABC Company, which is currently facing a situation
where one of its products has entered the maturity stage of its Product Life Cycle (PLC). The company
has made a deliberate decision to maintain its existing business operations and is content with achieving
incremental growth for this product aligns with which of the following strategies?
(a) Expansion strategy
(b) Stability strategy
(c) Retrenchment strategy
(d) Combination strategy
Your Answer: Description Stability Strategy

Q.6. Nom-Nom is a fast-food brand and has been facing a lot of competition from American brands and has
decided to NOT go very aggressive but to just preserve market share? Which of the strategy Nom-Nom
is following?
(a) Build
(b) Hold
(c) Harvest
(d) Divest

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 32

 Your Answer: Description: Hold

Q.7. A tea farm owners plan to open tea cafes in tourist spots and to sell their own premium tea to build a
brand. Which of the following can this be termed as?
(a) Backward Integration
(b) Forward Integration
(c) Diversification
(d) Horizontal Integration
Your Answer: Description: Forward Integration

Q.8. Sumedha has a home-grown brand which makes traditional lehengas. She thought of expanding her
business and added linen jackets and cotton trousers to her product line. Which strategy is she working
on?
(a) Backward integration
(b) Intensification
(c) Diversification
(d) Horizontal Diversification
Your Answer: Description: Intensification

Q.9. A beverage company has more than 500 soft drink brands, but none of them is anywhere close to its
premium brand One Sip in awareness, revenue and profits. As per BCGs Matrix, One Sip brand for the
beverage company is?
(a) Star
(b) Dog
(c) Cash cow
(d) Question mark
Your Answer: Description: Cash cow

Q.10. Hupo a honey brand decided to start a new brand for making honey ginger candies to meet the rising
demand. Identify their growth strategy?
(a) Conglomerate Diversification
(b) Concentric Diversification
(c) Vertical Integration
(d) Horizontal Integration
Your Answer: Description: Concentric Diversification

Q.11. Catalyst Polymers, a textile producing firm, has witnessed unprecedented sales growth in the last few
years due to favorable market conditions abroad. As a result, the company diversified its activities to
Chemical Manufacturing, Steel Forging and Metal Dye Manufacturing. The investment in steel forging in
particular has not been successful due to strict environmental laws enacted by the Government. The said
strategic business unit (SBU) though generates enough cash to sustain but does not have much future
and sometimes requires cash for survival. Consequently, the management has engaged an expert in the
field to help them classify the SBUs. Employing the Boston Consulting Group (BCG) Growth-Share Matrix,
the expert advised the company to disinvest or liquidate Steel Forging SBU. Classify the Steel Forging
SBU into the most appropriate matrix.
(a) Star
(b) Cash cow
(c) Question mark
(d) Dog
Your Answer: Description: Dog

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 33

Q.12. Beta Company, a car manufacturer is buying up a supplier so that it gets a dedicated supplier with both
guaranteed quality and price. The material could be manufactured when required by Beta Company
leading to lower inventory levels.
Which strategy has Beta Company adopted?
(a) Backward integration
(b) Forward integration
(c) Conglomerate diversification
(d) Horizontal integrated diversification
Your Answer: Description: Backward integration

Q.13. Baba Pvt. Ltd has seventeen factories, nine of which they recently gave to other producers on lease. This
has increased their cash inflows to a great extent, and they are enjoying this surplus by investing the
same in financial assets. Such a strategy can be termed as which of the following?
(a) Divest
(b) Harvest
(c) Hold
(d) Build
Your Answer: Description: Harvest

Q.14. XYZ Corporation is a multinational conglomerate operating in various industries. They have a diverse
portfolio of businesses, including a leading consumer electronics division, a growing e-commerce
platform, a mature industrial machinery division, and a newly established software development unit.
Which division of XYZ Corporation would most likely be classified as a "Star" in the BCG Growth-Share
Matrix?
(a) Consumer Electronics Division
(b) E-commerce Platform
(c) Industrial Machinery Division
(d) Software Development Unit
Your Answer: Description: E-commerce Platform

Q.15. T Ltd. is a Delhi based super market, which has grown from a position where 30 years ago it had a revenue
of around `50 crores p.a. to a position today where revenue exceeds `5000 crores p.a. and profit exceed
`1000 crores p.a. It has achieved this growth through a combination of strategies many of which can be
plotted on to the Ansoff matrix?
Existing products New products
Existing Market A C
New Market B D
i. Expansion into clothing and electrical sales
ii. 24-hour opening
iii. Selling its products on internet
iv. Overseas expansion
(a) A-(ii) D-(ii) B-(iii) C-(iv)
(b) B-(i) C-(ii) A-(iii) D-(iv)
(c) C-(i), A-(ii) D-(iii) B-(iv)
(d) D-(i) B-(ii) C-(iii) A-(iv)
Your Answer: Description: C-(i), A-(ii) D-(iii) B-(iv)

Q.16. Corporate strategy includes:

(i) expansion and growth, diversification, takeovers and mergers
(ii) Vertical and horizontal integration, new investment and divestment areas
(iii) determination of the business lines
From the combinations given below select a correct alternative:
(a) (i), and (ii)

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 34

 (b) (i) and (iii)
(c) (ii) and (iii)
(d) (i) (ii) and (iii)
Your Answer: Description: (i) (ii) and (iii)

Q.17. You have been appointed as a strategic manager at ABC Company, which is currently facing a situation
where one of its products has entered the maturity stage of its Product Life Cycle (PLC). The company
has made a deliberate decision to maintain its existing business operations and is content with achieving
incremental growth for this product aligns with which of the following strategies?
(a) Expansion strategy
(b) Stability strategy
(c) Retrenchment strategy
(d) Combination strategy
Your Answer: Description: Stability strategy

Q.18. General Public is discerning from buying air conditioning units based on the Health Ministry guidelines
regarding emergence of a contagious viral pandemic. Consequently, Nebula Pvt Ltd, a manufacturer of
evaporation coils used in air conditioning units has faced significant loss in working capital due to sharp
fall in demand. The company conducted financial assessment and developed a workable action plan
based on short and long term financial needs. But for immediate needs, an emergency plan has been
implemented. It includes selling scrap, asset liquidation and overheads cost reduction. Further, to avoid
any such untoward event in future, they plan to diversify into newer business areas along with its core
business. Identify the strategy opted by M/s. Nebula Pvt Ltd?
(a) Retrenchment strategy
(b) Liquidation strategy
(c) Turnaround strategy
(d) Divestment strategy
Your Answer: Description: Turnaround strategy

Q.19. Mixfix was having a tough time with its operations and wanting to restructure itself from scratch. For this,
they consult a veteran in business strategy, Mrs. Sunita K, who post analysis of their business said, “your
dead business is worth more than alive”. What did Mrs. Sunita hint at?
(a) Restructuring Business
(b) Liquidation
(c) Business Process Re-engineering
(d) Divestment
Your Answer: Description: Liquidation

Q.20. Spark Pvt. Ltd., an automobile seat manufacturing company has been witnessing superior growth
compared to its competitors due to management’s greater emphasis on quality of production. In the
previous Board Meeting, the management has decided to expand the existing business. The CEO will be
travelling to south-east Asia and Africa for identifying new geographical places and new product
dimensions and will try to establish new distribution channels to attract new customers abroad. Based
on the Igor Ansoff’s product market growth matrix, identify which of the growth strategy the company is
employing in the current case.
(a) Market penetration
(b) Product development
(c) Market development
(d) Diversification
Your Answer: Description: Market development

Q.21. Which of the following would be chosen by the core strategist to implement operational control: -
(a) Premise Control

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 35

 (b) Special Alert Control
(c) Implementation Control
(d) Budgetary Control
Your Answer: Description: Budgetary Control

Q.22. When there is impact of strategy implementation on strategy formulation it can be referred as?
(a) Backward Linkages
(b) Forward Linkages
(c) Vertical Linkages
(d) Horizontal Linkages
Your Answer: Description: Backward Linkages

Q.23. Technique to cope up with sudden change in Government, natural calamities, terrorist attacks, industrial
disasters etc. is called
(a) Special Alert Control
(b) Strategic Surveillance
(c) Premise Control
(d) Implementation Control
Your Answer: Description: Special Alert Control

Q.24. A corporation organized in network structure is often called-

(a) Virtual organization
(b) Hierarchical organization
(c) Structured organization
(d) Simple organization
Your Answer: Description: Virtual organization

Q.25. Which is true for Hourglass Organization Structure?

(a) Wide at the bottom and widest at the top.
(b) Middle level managers are generalist and perform wide variety of tasks
(c) Decision making is slow
(d) Difficult to keep motivation level high among lower-level staff
Your Answer: Description: Middle level managers are generalist and perform wide variety of tasks

Q.26. Systematic and continuous monitoring of the business environment to verify the accuracy of
assumptions on which strategy is built is achieved by?
(a) Premise Control
(b) Special Alert Control
(c) Implementation Control
(d) Strategic Surveillance
Your Answer: Description: Premise Control

Q.27. Which of the following situation will most likely suit a transformational leader?
(a) An organization that is in trouble
(b) A growing organization
(c) An organization in a stable environment
(d) An organization at maturity stage of product life cycle
Your Answer: Description: An organization that is in trouble

Q.28. Which of the following is more radical organisation design and is also called as non-structure which
virtually eliminates in house business functions and outsources many of them?
(a) Network Structure
(b) Strategic Business Unit

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 36

 (c) Hourglass Structure
(d) Divisional Structure
Your Answer: Description: Network Structure

Q.29. An organizational structure with constricted middle level is:

(a) Divisional structure
(b) Network structure
(c) Hourglass structure
(d) Matrix structure
Your Answer: Description: Hourglass structure

Q.30. As a strategist, what is your understanding of how strategies are put into action?
(a) Strategies are statements of Intent realized through Implementation.
(b) Strategies are statements of Intent that are automatically activated.
(c) Strategies, by themselves, lead into action.
(d) By strategy formulation and not through implementation.
Your Answer: Description: Strategies are statements of Intent realized through Implementation.

Q.31. Which of the following situation will most likely suit a transformational leader?
(a) An organization that is in trouble
(b) A growing organization
(c) An organization in a stable environment
(d) An organization at maturity stage of product life cycle
Your Answer: Description: An organization that is in trouble

Q.32. What is the second phase of Matrix structure proposed by Davis and Lawrence?
(a) Cross functional task forces
(b) Product/brand management
(c) Cross fertilized projects
(d) Mature matrix
Your Answer: Description: Product/brand management

Q.33. Compliance, Identification and Internalization are the three processes involved in:
(a) Refreezing
(b) Defreezing
(c) Changing behavior patterns
(d) Breaking down old attitudes
Your Answer: Description: Changing behavior patterns

Q.34. Maadhyam, a hearing aid manufacturer recently introduced an AI based management tool that has the
capabilities of managing teams across functions. What could be their new organisational structure post
this implementation?
(a) Divisional Structure
(b) Matrix Structure
(c) Hourglass Structure
(d) Network Structure
Your Answer: Description: Hourglass Structure

Q.35. Abhishek a freelancer writes promotional materials. He decided to collaborate without requiring physical
presence of employee, and hired virtual assistants to transcribe voice mail, update his website, and
design PowerPoint graphics. What kind of structure is he using for his business?
(a) Functional structure
(b) Divisional structure

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 37

 (c) Network structure
(d) Multi-divisional structure
Your Answer: Description: Network structure

Q.36. Delta is an organisation specializing in Information Technology enabled Services (ITeS) and
Communications business. Last year, the organisation had successfully integrated an Artificial
Intelligence (AI) tool named ‘Zeus’ into the existing ERP system. The AI tool, using Deep Learning
technique provided a digital leap transformation in various business processes and operations. It has
significantly diminished the role played by specialist managers of the middle management. This
technological tool in addition to saving organisational costs by replacing many tasks of the middle
management has also served as a link between top and bottom levels in the organisation and assists in
quick decision making. The skewed middle level managers now perform cross-functional duties. Which
type of organisational structure is the company transitioning into?
(a) Strategic business unit structure
(b) Matrix structure
(c) Network structure
(d) Hourglass structure
Your Answer: Description: Hourglass structure

Q.37. After an earnest attempt to bring in a strategic change in your organization, you the operational head of
XYZ ltd, succeeded but still your organization couldn’t achieve the desired competitive position in the
market. Out of the following what could reason?
(a) Strategy Formulation
(b) Strategy Model
(c) Strategy Implementation
(d) Strategy Decision
Your Answer: Description: Strategy Implementation

Q.38. Aditya Swaroop is the head of operations of Bindal & Sons private limited. He is focussing on total or
aggregate management functions in the sense of embracing the integrated activities of a complete
department. He assures the resources are obtained and used effectively and efficiently in the
accomplishment of the organisation’s objectives. He is practicing as: -
(a) Strategic control
(b) Management control
(c) Administrative control
(d) Operations control
Your Answer: Description: Management control

Q.39. You being the core strategist of your company, entrusted with bringing about strategic change in your
company, how will you initiate “unfreezing of the situation”?
(a) Promoting new ideas throughout the organization
(b) Promoting compliance throughout the organization
(c) Promoting change in process throughout the organization
(d) None of the above
Your Answer: Description: Promoting new ideas throughout the organization

Q.40. J&P, a western wear brand has contracted Pee Kaw marketing firm from Singapore, product design
team working as an outsource company from Mexico and Humans branding company taking care of its
people’s operations. What kind of structure is this?
(a) Hourglass Structure
(b) Outsourcing
(c) Network Structure
(d) Tree Branch Structure

[CA-INTERMEDIATE- STRATEGIC MANAGEMENT – MCQ’s] 38

 Your Answer: Description: Network Structure
Q.41. TechNo Solutions, a dynamic tech company, is considering a shift in its organizational structure to
enhance efficiency. The management team is evaluating various strategies and decided to virtually
eliminate in-house business functions. Which of the following organizational structures is Tech No
Solutions shifting towards?
(a) Network Structure
(b) Matrix structure
(c) Hourglass Structure
(d) SBU Structure
Your Answer: Description: Network Structure
Q.42. You are the operations manager and your top management wants to adopt a strategy that you don’t
endorse, what problems would this lead to in implementation of the strategy?
(a) No problem
(b) Coordination problem
(c) Technical problem
(d) Behavioural problem
Your Answer: Description: Coordination problem
Q.43. The employees of XYZ ltd have been facing problems regarding the difference between the
understanding of strategy formulation and strategy implementation. In order to address this problem,
you, the president operations, made four groups and asked each group to write in points their
understanding of the same. The following points were compiled from their knowing of strategy
formulation and implementation.
(1) Strategy formulation focuses on efficiency while strategy implementation focuses on effectiveness.
(2) Strategy formulation requires motivation and leadership skills while strategic implementation
require conceptual intuitive and analytical skills.
(3) Strategy formulation is an intellectual process while strategy implementation is primarily an
operational process.
(4) Strategy formulation requires coordination between executives at middle and lower level while
strategy implementation requires coordination among the executives at the top levels. Out of the
following views, what all needs to be corrected?
(a) 1 : 1, 3 & 4
(b) 2 : 1, 2 & 3
(c) 3 : 1, 2 & 4
(d) 4 : 1, 2, 3 & 4
Your Answer: Description: 1, 2 & 4
Q.44. You are the head of operations of a company. When you focus on total or aggregate management
functions in the sense of embracing the integrated activities of a complete department et al, you are
practicing:
(a) Strategic control
(b) Management control
(c) Administrative control
(d) Operations control
Your Answer: Description: Management control
Q.45. Swabhaav, a social media marketing firm introduced an AI based management tool that has the
capabilities of managing teams across functions all while being creative. What is the most likely
organisational structure post this implementation?
(a) Divisional Structure
(b) Matrix Structure
(c) Hourglass Structure
(d) Network Structure

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 Your Answer: Description: Hourglass Structure
Q.46. GetWellSoon Limited is a health provider and has only large, edge of town hospitals. It is considering
setting-up additional small city centre clinics capable of treating less-serious day cases. Which of the
following will fall under “Strategy Implementation”?
(1) Acquiring and fitting out clinics
(2) Hiring and/or transferring staff
(3) Publicity, so that patients know where and when to go
(4) Liaison with general practitioners and the main hospitals
(a) Only (4)
(b) (2) & (4)
(c) (1), (2) & (4)
(d) (1), (2), (3) & (4)
Your Answer: Description: (1), (2), (3) & (4)
Q.47. Dr. Raman has been running a nursing home for about twenty two years now, and has gained enormous
name for his benevolence in Balram district of Chhattisgarh. Recently, his daughter, Dr. Radhika
completed her medicine degree from the United States of America and returned to her hometown to be a
part of her father’s practice. She has been given the baton to promote modern medicine and retain the
local skilled youth in their practice. However, their nursing home’s skilled youth has been more inclined
to E-Commerce employment opportunities. Dr. Radhika has taken it as a challenge to imbibe the very
essence of service in them, by being employed as nurses and caretakers of the ill. This shall be very
crucial in growing the practice as desired. Which of the following phases of Kurt Lewin’s Model of Change
will be most challenging for Dr. Radhika to strategically positioning her father’s nursing home?
(a) Compliance
(b) Identification
(c) Internalization
(d) Transition
Your Answer: Description: Internalization
Q.48. After an earnest attempt to bring in a strategic change in your organization, you the operational head of
XYZ ltd, succeeded but still your organization couldn’t achieve the desired competitive position in the
market. Out of the following what could be the reason?
(a) Strategy formulation
(b) Strategy model
(c) Strategy implementation
(d) Strategy decision
Your Answer: Description: Strategy implementation
Q.49. Anshul joined a telecom company after his MBA and started working as market research analyst. His job
included analyzing industry factors like competitors, suppliers and substitutes. Controls is he working
on?
(a) Strategic Surveillance
(b) Special Alert Control
(c) Premise Control
(d) Benchmarking
Your Answer: Description: Premise Control
Q.50. Davis and Lawrence have proposed three distinct phases for development of matrix structure. These
phases are (1) Cross- functional task forces (2) Product/brand management and (3) _________.
(a) Market/external management
(b) Functional matrix
(c) Mature matrix
(d) Internal management
Your Answer: Description: Mature matrix

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Q.51. The management of Vadakara Limited, hitherto a successful ball valves maker headquartered in Mumbai,
is looking to launch a new SBU for its future forward integration plans abroad in Sudan. The CEO is now
faced with the opportunity- cum-challenge to make this foray into Sudan a successful but time-bound
business enterprise. The CEO has already asked his India Operations Head to make a study of Sudan’s
present market conditions and territory specific laws to enable the setup of a local branch office for the
proposed SBU. Meantime, the HR manager has come across a promising resume of a person on LinkedIn,
a social networking platform on internet, who is currently engaged in a similar Deputy CEO position with
another entity. The management is also in touch with a couple of NRI angel investors based out of
Singapore, to arrange for venture capital that would be required for this venture.
From a strategic management perspective, Vadakara Limited is currently represented by which strategic
time phase?
(a) Strategy formulation phase
(b) Strategy change phase
(c) Strategy implementation phase
(d) Strategy internalization phase
Your Answer: Description: Strategy formulation phase
Q.52. Select a distinguishing feature between divisional and functional structure?
(a) Both functional departments and divisional process departments are accountable for profits or revenues.
(b) Functional departments are not accountable for profits or revenues, whereas divisional process
departments are evaluated on these criteria.
(c) None of functional departments and divisional process departments are accountable for profits or revenues.
(d) Both the structures are same.
Your Answer: Description: Functional departments are not accountable for profits or revenues, whereas divisional
process departments are evaluated on these criteria.
Q.53. Last year, as a part of the organisational change process, Project Zeta was implemented by the CTO of
Omega Private Limited. Zeta being an Artificial Intelligence enabled tool uses machine learning
technology to speed up operations by transformation of various business processes and operations
across finance, sales, delivery, human resources and other departments. Likewise, the unfreezing phase
of the change process has been successfully completed by the company and the employees wholly
recognize and accept the need for change. The company now wishes to reassign new patterns of behavior
based on the three processes of compliance, identification and internalization. Kindly identify and mark
the correct person who propounded this model.
(a) Kurt Lewin
(b) Richard Rumelt
(c) H.C. Kellman
(d) William F Glueck
Your Answer: Description: H.C. Kellman

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