Strategic Management MCQ with Solution [Updated 2023]

Here are some Multiple Choice Questions (MCQs) for Strategic Management course.

1. The term strategy is derived from a ________ word.
   1. Latin
   2. Greek
   3. French
   4. German
2. Strategic Management does not involve ________.
   1. Setting Objectives
   2. Analyzing the competitive environment
   3. Analyzing the external organization
   4. Analyzing the internal organization
3. Strategic Management is the management of an organization’s resources to achieve its ________.
   1. Financial needs
   2. Goals and Objectives
   3. Competitive Advantage
   4. Market Share
4. Stability strategy is a ________ level strategy.
   1. Functional
   2. Corporate
   3. Business
   4. Strategic
5. Marketing strategy is a ________ type of strategy.
   1. Functional
   2. Corporate
   3. Business
   4. Growth
6. What do ‘Cash Cow’ symbolize in the BCG matrix?
   1. Remain Diversified
   2. Invest
   3. Liquidate
   4. Stable
7. Buying another company by one company means:
   1. Joint Venture
   2. Acquisition
   3. Amalgamation
   4. Merger
8. Low cost, Differentiation and Focus are examples of
   1. Corporate Strategies
   2. Operational Strategies
   3. Business Strategies
   4. Functional Strategies
9. What is the starting point of strategic intent?
   1. Goals
   2. Vision
   3. Objectives
   4. Mission
10. The word ‘strategy’ is derived from the Greek word ________.
    1. Stratum
    2. Strate
    3. Strategos
    4. Strategea
11. The fundamental purpose for the existence of any organization is described by its ________.
    1. Mission
    2. Policy
    3. Objective
    4. Strategy
12. ________ is the foundation of the Blue Ocean Strategy.
    1. Innovation
    2. Value Creation
    3. Value Innovation
    4. Cost-Benefit analysis
13. The primary focus of Strategic Management is ________.
    1. Strategic Analysis
    2. Whole organization
    3. Strategy Formulation
    4. Strategy Implementation
14. ________ is the slowest way to grow a business.
    1. Merger
    2. Outsourcing
    3. Internal Development
    4. Strategic Alliance
15. Porter’s Value Chain is subdivided into two main headings. These are primary activities and ________.
    1. Peripheral Activities
    2. Support Activities
    3. Secondary Activities
    4. Outsourced Activities
16. A joint venture can be defined as:
    1. Two firms collaborate together on a specific project.
    2. One firm license its intellectual property to another firm
    3. Two firms merge together
    4. Two firms come together to form a third, legally separate firm
17. ________ is not a recognized element of corporate strategy.
    1. Competitive Advantage
    2. Closure
    3. Acquisition
    4. Divestment
18. ________ refers to the purposes an organization strives to achieve.
    1. Strategic Intent
    2. Strategic Formulation
    3. Strategic Implementation
    4. Strategic Control
19. ________ strategy is often considered as an entrepreneurial strategy.
    1. Expansion Strategy
    2. Retrenchment Strategy
    3. Combination Strategy
    4. Stability Strategy
20. The two internal elements of SWOT analysis are ________.
    1. Weakness and Threats
    2. Opportunities and Threats
    3. Strength and Weakness
    4. Strength and Threats
21. Porter’s Generic Strategies are:
    1. Low Price, Differentiation, Focus
    2. Cost Leadership, Differentiation, Focus Differentiation, Cost Focus
    3. Price Leadership, Differentiation, Focus Differentiation, Cost Focus
    4. Low Cost, Differentiation, Focus Differentiation
22. In Porter’s Generic Strategy Model, a focus strategy involves
    1. Selling a limited range of products
    2. Selling to a narrow customer segment
    3. Selling to one particular region
    4. Selling simple products that are cheap to produce
23. Selling all of a company’s assets in parts for their tangible worth is called ________.
    1. Unrelated Integration
    2. Concentric Diversification
    3. Divestiture
    4. Liquidation
24. The BCG matrix is based on ________.
    1. Industry Growth Rate and Business Strength
    2. Industry Growth Rate and Relative Market Share
    3. Industry Attractiveness and Business Strength
    4. Industry Attractiveness and Relative Market Share
25. ________ are the guides to decision Making.
    1. Policies
    2. Procedure
    3. Objectives
    4. Goals
26. Low Cost, Differentiation and Focus are examples of ________.
    1. Business Strategies
    2. Corporate Strategies
    3. Operational Strategies
    4. Functional Strategies
27. Strategic Management handles ________
    1. Management Issues
    2. External Issues
    3. Administrative Issues
    4. Internal Issues
28. How many cells are there in a SWOT matrix?
    1. 6
    2. 4
    3. 9
    4. 2
29. According to the BCG matrix SBU comprising products in an attractive industry but representing little market share would be referred to as________
    1. A Star
    2. A Dog
    3. A Cash Cow
    4. A Question Mark
30. The sketch of the BCG matrix, ________ is the label of the horizontal axis.
    1. Market Growth
    2. Market Share
    3. Business Strength
    4. Industry Growth Rate
31. The Primary benefit of restructuring is ________.
    1. Increase morale
    2. Employee Involvement
    3. Cost Reduction
    4. Increased number and organizational hierarchy

1. Competitive advantage can be best described as ________.
   1. Increased Efficiency
   2. What sets an organization apart.
   3. A strength of the organization
   4. Intangible Resources
2. ________ is the foundation of the Blue Ocean Strategy.
   1. Innovation
   2. Value Creation
   3. Value Innovation
   4. Value-cost Trade-off
3. The concept of ‘Strategic Window’ was introduced by ________.
   1. Michael Porter
   2. Peter Drucker
   3. Gray Hamel
   4. Derek F. Abell
4. Functional strategies are sometimes called _______.
   1. Process Strategies
   2. Corporate Strategies
   3. Business-unit level Strategies
   4. Operational Strategies
5. Corporate Governance is primarily guided by ________.
   1. Customers
   2. Shareholders
   3. Board of Directors
   4. Employees
6. ________ is a new tool for the systematic review of strategy by board members without directly involving themselves with the management of companies
   1. Strategic Review
   2. Management Review
   3. Strategic Planning
   4. Strategic Audit
7. The _______ of a company is variously called a statement of philosophy, a statement of beliefs, and a statement of purpose.
   1. Mission Statement
   2. Vision Statement
   3. Quality Principles
   4. Policies
8. ________ can be defined as the alignment of business operations with social values.
   1. Corporate Governance
   2. Corporate Social Responsibility
   3. Business Policy
   4. Sustainability
9. _______ is the unique capability that helps an organization in capitalizing upon a particular opportunity.
   1. Core Competence
   2. Distinctive Competence
   3. Strategic Competence
   4. Threshold Competence
10. In the BCG Model, ‘BCG’ stands for ________.
    1. Business Communication Gap
    2. Business Consulting Group
    3. Benchmark Consulting Group
    4. Boston Consulting Group
11. The BCG model is also known as ________.
    1. Johari Window
    2. Evaluation Matrix
    3. Generic Strategy Model
    4. Portfolio Matrix
12. The competitive threat model or the five forces model was developed by ________.
    1. Gray Hamel
    2. Peter Drucker
    3. Michael E. Porter
    4. C. K. Prahlad
13. What does STARS symbolize in the BCG matrix ?
    1. Introduction
    2. Growth
    3. Maturity
    4. Decline
14. What does DOG symbolize in the BCG matrix?
    1. Introduction
    2. Growth
    3. Maturity
    4. Decline
15. The BCG matrix is mainly designed to analyze ________.
    1. Current strategy of the organization
    2. Long-term strategic planning
    3. Short-term strategic planning
    4. Revenue generated by the organization
16. ________ is not an element of VUCA.
    1. Volatility
    2. Unclarity
    3. Complexity
    4. Ambiguity
17. ________ is identifying opportunities and threats affecting the business.
    1. Environmental Analysis
    2. Organizational Analysis
    3. Industry Analysis
    4. Competitive Analysis
18. ________ is the collection of managerial decisions and actions that determine the long-run performance of an organization.
    1. Planning
    2. Leadership
    3. Strategic Management
    4. Corporate Management
19. In the sketch of the BCG matrix, ________ is the label of the vertical axis.
    1. Market Growth Rate
    2. Business Strength
    3. Market Share
    4. Industry Growth Rate
20. The formal-structured approach of SMP is also sometimes called _________ mode.
    1. Execution
    2. Adaptive
    3. Planning
    4. Opportunistic
21. The system by which business corporation are directed and controlled is called ________.
    1. Corporate Governance
    2. Corporate Social Responsibility
    3. Strategic Management
    4. Organizational Planning
22. The affairs of the company are directed and controlled through the _________ who represent the shareholders of the company.
    1. Board of Directors
    2. Senior Management
    3. Middle Management
    4. Managing Director and Chief Executive Officer
23. Management thinker like Peter Drucker feel that business definition should strongly focus on the _________.
    1. Shareholders
    2. Suppliers
    3. Customers
    4. Employees
24. Xerox’s competence in photocopying and Canon’s competencies in optics, imaging and laser control are examples of _________ competence.
    1. Strategic
    2. Threshold
    3. Distinctive
    4. Core
25. The role of stakeholders include __________.
    1. Direct Management
    2. Decision Making
    3. Investments
    4. All of the above
26. The corporate level is where top management directs _________.
    1. All employees for orientation
    2. Overall strategy for the entire organization
    3. Its efforts to stabilize recruitment needs
    4. Overall sales projection
27. Who is a ‘stakeholder’ ?
    1. A person who has purchased the share of the business.
    2. A person who is related with a business.
    3. A person who owns a business.
    4. A person who owes to business.
28. Product differentiation refers to the ___________.
    1. Ability of the buyers of a product to negotiate a lower price.
    2. Response of incumbent firms to new entrants.
    3. Belief by customers that a product is unique.
    4. Fact that as more of a product is produced the cheaper it becomes per unit.
29. Suppliers are powerful when _________.
    1. Satisfactory substitutes are available
    2. They sell a commodity product
    3. They offer a credible threat of forward integration
    4. They are in highly fragmented industry
30. A company’s value chain is ______________
    • The sequence of activities it undertakes to deliver its product or service to customers
    • The financial resources it has its disposal
    • The physical assets and facilitates it owns
    • The employee skills and expertise it possesses
31. A company’s competitive strategy should be ___________.
    • Generic
    • Specific
    • Board
    • Narrow
32. A mission statement should be ________________.
    • Be specific and measurable
    • Be broad and flexible
    • Be short and concise
    • Be aligned with the company’s values and goals
33. Which of the following is not a step in the strategic management process?
    • Evaluation
    • Implementation
    • Analysis
    • Monitoring
34. The process of identifying and addressing ethical issues that arise in an organization is known as _______________.
    • Ethical Management
    • Ethical Leadership
    • Ethical Decision Making
    • Ethical Analysis
35. Which of the following is NOT a factor in Porter’s Five Forces Model?
    • Threats of new entrants
    • Bargaining power of suppliers
    • Bargaining power of customers
    • Employee Motivation
36. An organization’s competitive advantage is _____________.
    • The degree to which it is different from its competitors
    • The extent to which it is better than its competitors
    • The resources and capabilities that allow it to perform better than its competitors
    • All of the above
37. The process of selecting an appropriate course of action to achieve organizational goals is known as ____________.
    • Planning
    • Organizing
    • Controlling
    • Directing
38. Which of the following is the potential disadvantage of using a focus strategy?
    • It can result in reduced profitability due to higher costs.
    • It can be difficult to maintain a customer base.
    • It is only effective in large markets.
    • It can result in missed opportunities outside of the chosen focus area.
39. Which of the following is NOT an external factor that can influence an organization’s strategy ?
    • Political environment
    • Economic conditions
    • Organizational structure
    • Technological changes
40. What is the primary purpose of a SWOT analysis ?
    • To identify potential competitors
    • To evaluate the external environment
    • To assess the organization’s internal capabilities
    • To determine the company’s financial performance
41. Which of the following is NOT a common type of strategic risk ?
    • Operational risk
    • Financial risk
    • Competitive risk
    • Environmental risk
42. Which of the following is NOT a benefit of strategic alliances?
    • Access to new markets and customers
    • Reduced risk and increased flexibility
    • Enhanced brand reputation
    • Increased control over resources
43. What is the purpose of a business-level strategy?
    • To determine the overall direction of the company
    • To allocate resources to different business units
    • To achieve a sustainable competitive advantage in a specific market
    • To identify potential acquisition target
44. Which of the following is NOT a common type of corporate level strategy ?
    • Diversification
    • Vertical Integration
    • Market Penetration
    • Retrenchment

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