What is the primary purpose of strategic management in business?
a. Implementing day-to-day operations
b. Adapting to short-term market trends
c. Achieving long-term organizational goals
d. Enhancing employee satisfaction
Answer: c
Which term refers to a systematic analysis of an organization’s external environment, including factors like competitors, market trends, and regulatory changes?
a. SWOT analysis
b. Environmental scanning
c. Core competencies
d. Strategic planning
Answer: b
In strategic management, what does the term “SWOT” stand for?
a. Strengths, Weaknesses, Opportunities, Threats
b. Strategic, Weaknesses, Operations, Trends
c. Sustainability, Workforce, Operations, Technology
d. Strategy, Worldwide, Organization, Tactics
Answer: a
What is the purpose of a mission statement in strategic management?
a. Outlining short-term financial goals
b. Defining the organization’s purpose and identity
c. Identifying specific market segments
d. Describing day-to-day operational tasks
Answer: b
Which type of strategy focuses on minimizing costs and maximizing efficiency within an organization?
a. Differentiation strategy
b. Cost leadership strategy
c. Innovation strategy
d. Growth strategy
Answer: b
What is the term for a set of actions and decisions that guide an organization in achieving its goals and objectives?
a. Business model
b. Strategic plan
c. Tactical approach
d. Operational blueprint
Answer: b
In strategic management, what does the term “Core Competencies” refer to?
a. Fundamental skills and capabilities that give an organization a competitive advantage
b. Basic operational tasks
c. Market segments with high growth potential
d. Financial resources available for investment
Answer: a
Which term refers to the process of selecting and managing a portfolio of projects that align with an organization’s strategic goals?
a. Project management
b. Portfolio management
c. Operations management
d. Risk management
Answer: b
What is the term for a strategy that involves expanding operations into new markets or introducing new products?
a. Diversification strategy
b. Cost leadership strategy
c. Differentiation strategy
d. Focus strategy
Answer: a
In the context of strategic management, what does the term “Strategic Alliance” refer to?
a. A collaboration between competitors
b. The outsourcing of key business functions
c. The sale of a company’s assets
d. A partnership between an organization and a non-profit
Answer: a
What is the primary goal of a differentiation strategy in strategic management?
a. Minimizing costs
b. Maximizing market share
c. Offering unique and valued products or services
d. Expanding into global markets
Answer: c
In strategic management, what does the term “Corporate Governance” involve?
a. Decision-making processes within individual departments
b. The system of rules, practices, and processes by which a company is directed and controlled
c. Marketing strategies for specific products
d. Employee training and development programs
Answer: b
Which term refers to a situation where a company offers unique products or services that are valued by a broad market?
a. Cost leadership
b. Differentiation
c. Focus
d. Diversification
Answer: b
What is the term for a strategy that focuses on serving a specific market segment or niche?
a. Cost leadership strategy
b. Differentiation strategy
c. Focus strategy
d. Diversification strategy
Answer: c
In strategic management, what does the term “SWOT analysis” help identify?
a. Market share
b. Core competencies
c. Internal strengths and weaknesses, external opportunities and threats
d. Operational efficiency
Answer: c
What is the purpose of a vision statement in strategic management?
a. Describing the day-to-day activities of an organization
b. Identifying specific market segments
c. Outlining the organization’s long-term aspirations and goals
d. Defining the organization’s core competencies
Answer: c
Which term refers to the process of determining the best way to achieve an organization’s long-term goals and objectives?
a. Operational planning
b. Tactical planning
c. Strategic planning
d. Contingency planning
Answer: c
What is the term for a strategy that involves partnering with or acquiring other companies to achieve growth?
a. Differentiation strategy
b. Cost leadership strategy
c. Mergers and acquisitions strategy
d. Focus strategy
Answer: c
In strategic management, what does the term “Stakeholder Analysis” involve?
a. Identifying and assessing the impact of different groups on an organization
b. Evaluating the financial performance of a company
c. Analyzing competitors in the market
d. Assessing the skills and competencies of employees
Answer: a
Which term refers to the process of monitoring and adjusting an organization’s strategy to ensure it remains aligned with its goals?
a. Strategic control
b. Tactical control
c. Operational control
d. Contingency control
Answer: a
In strategic management, what does the term “Porter’s Five Forces” assess?
a. The bargaining power of buyers, suppliers, threat of new entrants, threat of substitute products, and intensity of competitive rivalry
b. The financial performance of a company
c. The efficiency of operational processes
d. The impact of macroeconomic factors on the industry
Answer: a
What is the term for a strategy that involves offering a range of products or services to a variety of markets?
a. Differentiation strategy
b. Cost leadership strategy
c. Focus strategy
d. Diversification strategy
Answer: d
In strategic management, what does the term “Balanced Scorecard” measure?
a. Financial and non-financial performance metrics to evaluate overall performance
b. Customer satisfaction only
c. Employee productivity only
d. Market share only
Answer: a
Which term refers to the process of identifying and analyzing potential risks that may affect the achievement of strategic goals?
a. Risk management
b. Contingency planning
c. Crisis management
d. SWOT analysis
Answer: a
What is the term for a strategy that involves reducing costs and becoming the low-cost producer in the industry?
a. Differentiation strategy
b. Cost leadership strategy
c. Focus strategy
d. Innovation strategy
Answer: b
In strategic management, what does the term “Scenario Planning” involve?
a. Identifying and evaluating potential risks
b. Creating alternative future scenarios to prepare for different possibilities
c. Developing strategies for immediate implementation
d. Conducting a thorough analysis of the external environment
Answer: b
What is the term for a strategy that involves entering a new market with existing products?
a. Market development strategy
b. Product development strategy
c. Market penetration strategy
d. Diversification strategy
Answer: c
In strategic management, what does the term “Blue Ocean Strategy” refer to?
a. A strategy that focuses on entering saturated markets with existing products
b. A strategy that involves creating new market spaces and making the competition irrelevant
c. A strategy that aims to become the low-cost producer in the industry
d. A strategy that emphasizes differentiation through unique and innovative products
Answer: b
What is the term for the process of allocating resources and setting priorities to achieve organizational goals?
a. Strategic control
b. Strategic planning
c. Operational planning
d. Tactical planning
Answer: b
In strategic management, what does the term “Value Chain” represent?
a. The sequence of activities a firm uses to design, produce, market, deliver, and support its products
b. A chain of command within the organization
c. The hierarchy of values within a company
d. The set of ethical values upheld by the organization
Answer: a