Strategic Analysis and Planning – Strategic Management MCQ

Strategic Analysis and Planning – CS Executive Financial and Strategic Management MCQ Questions with Answers you can quickly revise the concepts.

Strategic Analysis and Planning – Strategic Management MCQ

Question 1.
……….. refers to the process of conducting research on a company and its operating environment to formulate a strategy.
(A) Strategic management
(B) Strategic analysis
(C) Sensitive analysis
(D) Simulation analysis
Answer:
(B) Strategic analysis

Question 2.
Strategic analysis involves:
(A) Identifying and evaluating data relevant to the company’s strategy.
(B) Defining the internal and external environments to be analyzed.
(C) Using several analytic methods such as Porter’s five forces analysis, SWOT analysis etc.
(D) All of the above
Answer:
(D) All of the above

Question 3.
ADL matrix has been propounded by:
(A) Arthur D. Lowey
(B) Arthur D. Little
(C) Arthur D. Levin
(D) Arthur D. Louise
Answer:
(B) Arthur D. Little

Question 4.
Purpose of a strategic analysis is to -……….
(A) Analyze an organization’s external and internal environment
(B) Assess current strategies
(C) Generate and evaluate the most successful strategic alternatives.
(D) All of the above
Answer:
(D) All of the above

Question 5.
Arrange the Strategic Analysis Process in proper sequence:
I. Formulate plans.
II. Recommend and implement the most viable strategy.
III. Determine the effectiveness of existing strategies.
IV. Perform an environmental analysis of current strategies.
Select the correct answer from the options given below.
(A) iv,ii,i,iii
(B) iv,iii,i,ii
(C) ii,iii,i,iv
(D) iv,i,iii,ii
Answer:
(B) iv,iii,i,ii

Question 6.
………… is the process we use to gain understanding and insight into our present situation.
(A) Situational analysis
(B) Sensitive analysis
(C) Simulation analysis
(D) All of the above
Answer:
(A) Situational analysis

Question 7.
Which of the following is NOT ‘internal environment considerations’?
(A) Operational inefficiencies
(B) Changes in consumer taste
(C) Employee morale
(D) Constraints from financial issues
Answer:
(B) Changes in consumer taste

Question 8.
Which of the following is NOT ‘external environment considerations?
(A) Political trends
(B) Economic shifts
(C) Operational inefficiencies
(D) Changes in consumer taste
Answer:
(C) Operational inefficiencies

Question 9.
Strategists must ask themselves question such as:
(A) Is our strategy failing or succeeding?
(B) Will we meet our stated goals?
(C) Does our strategy align with our vision, mission, and values
(D) All of the above
Answer:
(D) All of the above

Question 10.
Potential strategic alternatives include -………
(A) Changes in capital structure
(B) Changes in supply chain management
(C) Changes in business process
(D) All of the above
Answer:
(D) All of the above

Question 11.
‘Build,’ ‘Hold,’ ‘Harvest,’ and ‘Divest’ are the strategies pursued in:
(A) Boston Consulting Group Growth Share Matrix
(B) Value chain Analysis
(C) Managerial Grid Matrix
(D) Ansoff’s Product Matrix Growth Matrix
Answer:
(A) Boston Consulting Group Growth Share Matrix

Question 12.
A situation analysis should be conducted -………
(A) After developing a strategy.
(B) At the beginning of any program or project
(C) Before company is incorporated
(D) At a later stage in quality management
Answer:
(B) At the beginning of any program or project

Question 13.
Which of the following is NOT element of Situation Analysis?
(A) Product Situation
(B) Competitive Situation
(C) Distribution Situation
(D) Profit Situation
Answer:
(D) Profit Situation

Question 14.
The low growth, low share businesses in BCG matrix are:
(A) Cows
(B) Dogs
(C) Cats
(D) Question Marks
Answer:
(B) Dogs

Question 15.
Identification of opportunities and avoiding or mitigating losses is called -………
(A) Risk management
(B) Stress management
(C) Change management
(D) Co-ordination
Answer:
(A) Risk management

Question 16.
Environment scanning applies to –
1. External scanning processes
2. Motivational scanning processes
3. Internal scanning processes
4. Lead scanning processes
Select the correct answer from the options given below -………
(A) None of the given
(B) Except 4 all other
(C) Both 1 and 3
(D) 1 only
Answer:
(C) Both 1 and 3

Question 17.
In SWOT analysis the ‘O’ stands for -………
(A) Objections
(B) Openings
(C) Opportunities
(D) Obstacles
Answer:
(C) Opportunities

Question 18.
SWOT analysis Originated by –
(A) Heinz Weirich
(B) United States Navy
(C) Albert S Humphrey
(D) James E. Kelley
Answer:
(C) Albert S Humphrey

Question 19.
An organization that has a low relative market share position and competes in a slow growth industry is referred to as a -………
(A) Dog
(B) Question Mark
(C) Star
(D) Cash Cows
Answer:
(A) Dog

Question 20.
Which of the following SWOT elements are internal factors for a business?
(A) Strengths and Weaknesses
(B) Opportunities and Threats
(C) Strengths and Opportunities
(D) Weaknesses and Threats
Answer:
(A) Strengths and Weaknesses

Question 21.
………generally relate to external factors.
(A) Strengths and weaknesses
(B) Opportunities and threats
(C) Weaknesses and Threats
(D) Strengths and Opportunities
Answer:
(B) Opportunities and threats

Question 22.
Which section of the SWOT Matrix involves matching internal strengths with external opportunities?
(A) The WT cell
(B) The SW cell
(C) The SO cell
(D) The ST cell
Answer:
(C) The SO cell

Question 23.
The process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public is known as -……..
(A) Stress management
(B) Crisis management
(C) TQM
(D) None of the above
Answer:
(B) Crisis management

Question 24.
Which of the following is element of Situation Analysis?
(A) Environmental Factors
(B) Distribution Situation
(C) Both (A) and (B)
(D) Neither (A) nor (B)
Answer:
(C) Both (A) and (B)

Question 25.
Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis?
(A) Organizational strengths may not lead to competitive advantage
(B) SWOT gives a one-shot view of a moving target
(C) SWOT’s focus on the external environment is too broad and integrative
(D) SWOT over emphasizes a single dimension of strategy
Answer:
(C) SWOT’s focus on the external environment is too broad and integrative

Question 26.
In the PESTEL framework for environmental analysis what does the letter S stand for?
(A) Superior
(B) Surroundings
(C) Society
(D) Socio-cultural
Answer:
(D) Socio-cultural

Question 27.
Assessment of competitive rivalry does NOT include an understanding of:
(A) The extent to which competitors are in balance
(B) Market growth rates
(C) Fixed costs, exit barriers and operational efficiency
(D) The management structure of an organization
Answer:
(D) The management structure of an organization

Question 28.
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
Answer:
(B) Decline in the market life cycle

Question 29.
Which of the following is first step in market assessment?
(A) Analysis of the situation
(B) Competitive rivalry
(C) Suppliers power
(D) Defining the problem
Answer:
(D) Defining the problem

Question 30.
Which of the following is FALSE regarding why a SWOT Analysis is used?
(A) To build on the strengths of a business
(B) To minimize the weaknesses of a business
(C) To reduce opportunities available to a business
(D) To counteract threats to a business
Answer:
(C) To reduce opportunities available to a business

Question 31.
Assertion (A):
SWOT analysis is not used for ranking of organizations.
Reason (R):
SWOT analysis is a tool for organizational and environmental appraisal necessary for formulating effective strategies.
Select the correct answer from options given below.
(A) A is true but R is false
(B) A is false but R is true
(C) Both A and R are true
(D) Both A and R are false
Answer:
(C) Both A and R are true

Question 32.
Geographical Diversification, Product diversification and Entry Mode Eire the domains of:
(A) Functional Strategy
(B) Business Strategy
(C) Corporate Strategy
(D) All of the Above
Answer:
(C) Corporate Strategy

Question 33.
Which of the following is a detailing process in the mission, objectives, strategies, and policies?
(A) Strategy formulation
(B) Strategy implementation
(C) Strategic strategy
(D) Strategy achievement
Answer:
(A) Strategy formulation

Question 34.
………. widely is used for the evaluation of the organization’s product portfolio in marketing and sales planning.
(A) SWOT analysis
(B) BCG Matrix
(C) Ansoff’s matrix
(D) TOWS matrix
Answer:
(B) BCG Matrix

Question 35.
As per BCG Matrix, ‘Stars’ sire –
(A) Low-growth, high market share businesses or products.
(B) Sometimes called problem children or wildcats.
(C) Generates enough cash to maintain themselves, but do not have much future
(D) Products or Strategic Business Units that are growing rapidly.
Answer:
(D) Products or Strategic Business Units that are growing rapidly.

Question 36.
Competitive landscape requires the application of-
(A) Competitive advantage
(B) Competitive strategy
(C) Competitive acumen
(D) Competitive intelligence
Answer:
(D) Competitive intelligence

Question 37.
Which of the following could be strength as per SWOT Analysis?
(A) Weather
(B) A new international market
(C) A price that is too high
(D) The location of a business
Answer:
(D) The location of a business

Question 38.
The acronym TOWS was developed by the American international business professor
(A) Albert S Humphrey
(B) Heinz Weirich
(C) James E. Kelley
(D) United States Navy
Answer:
(B) Heinz Weirich

Question 39.
‘Determinants Analysis’ falls in the purview of -………..
(A) External competitive strategy analysis
(B) Internal competitive strategy analysis
(C) Strategic risk
(D) Competitive landscape
Answer:
(A) External competitive strategy analysis

Question 40.
SWOT analysis starts with , the TOWS Matrix starts with
(A) external environment analysis; internal analysis
(B) internal analysis; Strategy identification
(C) internal analysis; external environment analysis
(D) Strategy identification; internal analysis
Answer:
(C) internal analysis; external environment analysis

Question 41.
Project Evaluation & Review Technique PERT developed by the in the 1950s.
(A) Gary Hamel
(B) United States Navy
(C) Heinz Weirich
(D) James E. Kelley
Answer:
(B) United States Navy

Question 42.
The concept of ‘core competence’ has been advocated by –
(A) Gary Hamel and Peter Drucker
(B) C. K Prahlad and Gary Hamel
(C) C. K Prahlad and Michael Porter
(D) C. K. Prahlad and Peter Druck
Answer:
(B) C. K Prahlad and Gary Hamel

Question 43.
Which of the following could be a weakness as per SWOT Analysis?
(A) A developing market such as the Internet
(B) Competitors with access to better channels of distribution
(C) Poor quality of goods and services
(D) Special marketing expertise
Answer:
(C) Poor quality of goods and services

Question 44.
…………. is the minimum possible time required to accomplish an activity or a path, assuming everything proceeds better than is normally expected
(A) Expected Time
(B) Most Likely Time
(C) Pessimistic Time
(D) Optimistic Time
Answer:
(D) Optimistic Time

Question 45.
Corporate level strategy is concerned with the following –
(A) How do we want to compete?
(B) Where do we want to compete?
(C) How to support the strategy imple-mentation?
(D) All of the above
Answer:
(B) Where do we want to compete?

Question 46.
As per BCG Matrix, ‘Cash Cows’ –
(A) are low-growth, high market share businesses or products.
(B) need heavy investment to maintain their position and finance their rapid growth potential.
(C) represent best opportunities for expansion
(D) are low-growth, low-share businesses and products.
Answer:
(A) are low-growth, high market share businesses or products.

Question 47.
The BCG growth-share matrix -……….
(A) is a project technique used to manage uncertain activities.
(B) is an analytical tool that helps build over your strengths and make the best use of available opportunities while also minimizing the threats.
(C) is the simplest way to portray a corporation’s portfolio of investments.
(D) is an algorithm for scheduling a set of project activities.
Answer:
(C) is the simplest way to portray a corporation’s portfolio of investments.

Question 48.
‘Customer Analysis’ and ‘Market Analysis’ are the part of –
(A) Internal analysis
(B) Strategy identification and selection
(C) External Analysis
(D) None of the above
Answer:
(C) External Analysis

Question 49.
The BCG Growth-Share Matrix consists of the following four major elements?
(A) Sales, Cash cows. Question marks, Dogs
(B) Stars, Cash cows, Question marks, Dogs
(C) Stars, Cash cows, Question marks, Doors
(D) Stars, Computer clouds, Question marks. Dogs
Answer:
(B) Stars, Cash cows, Question marks, Dogs

Question 50.
Which of the following could be an opportunity as per SWOT Analysis?
(A) Having quality processes and procedures
(B) Moving into new market segments that offer improved profits
(C) Damaged reputation
(D) A new competitor in your home market
Answer:
(B) Moving into new market segments that offer improved profits

Question 51.
‘Strategic group mapping’ involves -………..
(A) Identifying the strongest rival companies
(B) Identifying weakest rival companies
(C) Identifying weakest and strongest rival companies
(D) None of the above
Answer:
(C) Identifying weakest and strongest rival companies

Question 52.
BCG in BCG matrix stands for
(A) Boston Calmette Group
(B) British Consulting Group
(C) Boston Corporate Group
(D) Boston Consulting Group
Answer:
(D) Boston Consulting Group

Question 53.
What does Dog symbolize in BCG matrix?
(A) Introduction
(B) Growth
(C) Maturity
(D) Decline
Answer:
(D) Decline

Question 54.
‘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
Answer:
(A) Relative terms

Question 55.
…………… is the maximum possible time required to accomplish an activity or a path, assuming everything goes wrong.
(A) Optimistic Time.
(B) Pessimistic Time
(C) Most Likely Time
(D) Expected Time
Answer:
(B) Pessimistic Time

Question 56.
The Critical Path Method (CPM) is a project modelling technique developed in the late 1950s by -………..
(A) Morgan R.Walker & James E.Kelley.
(B) C. K. Prahlad and Gary Hamel
(C) Gary Hamel and Peter Drucker
(D) All of the above
Answer:
(A) Morgan R.Walker & James E.Kelley.

Question 57.
Which of the following is true of a transnational Corporation?
(A) They have subsidiaries but do not have centralized management system
(B) They have no subsidiaries but have centralized management system
(C) They do not have subsidiaries and do not have centralized management system
(D) They have subsidiaries and have a centralized management system
Answer:
(C) They do not have subsidiaries and do not have centralized management system

Question 58.
Consider following two statements:
(I) A strength is an inherent capacity of an organization.
(II) A core competence is a unique strength of an organization which may not be shared by others.
Select false statement from the above statements.
(A) (I) only
(B) (II) only
(C) Both (I) and (II)
(D) Neither (I) nor (II)
Answer:

(D) Neither (I) nor (II)

Question 59.
PERT is –
(A) Activity oriented
(B) Event oriented
(C) Profit oriented
(D) System oriented
Answer:
(B) Event oriented

Question 60.
Entering into a ‘contract’ by MNCs is an example of:
(A) Partial Ownership Alliance
(B) Joint Venture Alliance
(C) Non-Equity Alliance
(D) Joint Ownership Alliance
Answer:
(C) Non-Equity Alliance

Question 61.
PERT is technique -……….
(A) of planning and control of time.
(B) to control cost and time
(C) used in profit analysis
(D) of controlling losses
Answer:
(A) of planning and control of time.

Question 62.
In BCG Matrix, are low-growth, low-share businesses and products.
(A) Cows
(B) Lion
(C) Dogs
(D) Hen
Answer:
(C) Dogs

Question 63.
“Competitor’sDifferentiation’, Customer Value’ and ‘Application of Competitiveness’ are the three important areas of:
(A) Value Chain Analysis
(B) Business Process Re-engineering
(C) Competitor Analysis
(D) Core Competence Concept
Answer:
(D) Core Competence Concept

Question 64.
What does “Question Mark (₹)” symbolize in BCG matrix?
(A) Remain Diversified
(B) Invest
(C) Stable
(D) Liquidate
Answer:
(A) Remain Diversified

Question 65.
Which of the following could be a Threat as per SWOT Analysis?
(A) Changes in technology
(B) A market vacated by an ineffective competitor
(C) Location of your business
(D) Lack of marketing expertise
Answer:
(A) Changes in technology

Question 66.
Arrange the steps in BCG Matrix in proper sequence:
1. Choose the Unit
2. Define the Market
3. Calculate Relative Market Share
4. Calculate Market Growth Rate
5. Draw Circles on the Matrix
Select the correct answer from options given below.
(A) 1,3, 2, 4, 5
(B) 1, 4, 3, 2, 5
(C) 1,2, 3, 4, 5
(D) 1,4, 3, 2, 5
Answer:
(D) 1,4, 3, 2, 5

Question 67.
Brand extension strategies are often used to delay the onset of the:
(A) Decline phase of the product life cycle
(B) Introduction phase of the product life cycle
(C) ‘Cash Cow’phase of the Boston Matrix
(D) Maturity phase of the product life cycle growth phase of the product life cycle
Answer:
(A) Decline phase of the product life cycle

Question 68.
Which of the following bases of competitive advantage is/are more sustainable?
(A) Benefit-based competitive advantage
(B) Price-based competitive advantage
(C) Cost-based competitive advantage
(D) All of the above
Answer:
(A) Benefit-based competitive advantage

Question 69.
The Boston Matrix essentially supports:
(A) An unbalanced portfolio of product
(B) A concentration on question marks
(C) Product specialization
(D) A balanced portfolio of products
Answer:
(D) A balanced portfolio of products

Question 70.
As per Ansoff Growth Matrix, market penetration refers to –
(A) A growth strategy where the business seeks to sell its existing products into new markets.
(B) A growth strategy where the business focuses on selling existing products into existing markets.
(C) A growth strategy where business aims to introduce new products into existing markets.
(D) A growth strategy where a business markets new products in new markets.
Answer:
(B) A growth strategy where the business focuses on selling existing products into existing markets.

Question 71.
The ADL matrix categorizes every segment of company according to its position which can be –
(A) embryonic, growth, strong, mature and aging
(B) dominant, growth, favourable, tenable and decline
(C) dominant, strong, favourable, tenable and weak
(D) embryonic, mature, strong, favourable and aging
Answer:
(C) dominant, strong, favourable, tenable and weak

Question 72.
A leading producer of tooth paste, advises its customers to brush teeth twice a day to keep breath fresh. In the context of Ansoff’s Product-Market Growth Matrix, identify, the type of growth strategies followed for the given case.
(A) Market Development
(B) Diversification
(C) Market Penetration
(D) Product Development
Answer:
(B) Diversification

Question 73.
In consulting engagement with General Electric Company in the 1970’s McKinsey & Company developed a cell portfolio matrix as a tool for screening GE’s large portfolio of strategic business units (SBU).
(A) Ten
(B) Nine
(C) Twelve
(D) Six
Answer:
(B) Nine

Question 74.
The BCG Matrix is based on –
(A) Industry attractiveness & Business Strength
(B) Industry Growth rate & Business strength
(C) Industry Attractiveness & Relative market share
(D) Industry Growth rate & Relative market share
Answer:
(D) Industry Growth rate & Relative market share

Question 75.
GE Matrix was developed by –
(A) General Motor Company
(B) General Product Company
(C) General Electric Company
(D) General Tube Company
Answer:
(C) General Electric Company

Question 76.
Active scanning involves the of continuous resources and, from time to time, supplementing them with existing resources as needed.
(A) Conscious selection
(B) Sub-conscious selection
(C) Analysis of threats to the business
(D) None of the above
Answer:
(A) Conscious selection

Question 77.
Which of the following executes strategy into everyday executions tactics?
(A) Goal setting
(B) Technical planning
(C) Operational planning
(D) None of the above
Answer:
(C) Operational planning

Question 78.
Which of the following refers to a situation where a product generates high profits which can then be invested in developing new products?
(A) Dogs
(B) Cash cows
(C) Question marks
(D) Growth stage
Answer:
(B) Cash cows

Question 79.
A business giant in hotel industry decides to enter into dairy business. In the context of Ansoff’s Product-Market Growth Matrix, identify, the type of growth strategies followed for the given case.
(A) Market Development
(B) Product Development
(C) Diversification
(D) Market Penetration
Answer:
(C) Diversification

Question 80.
As per ADL Matrix, company’s competitive position is determined by –
(A) Cash Cows & Growth Stage
(B) Market Improvement & Strategic Actions
(C) Strategic Actions & Competitor’s Strategies
(D) Strong & Stable Strategies
Answer:
(C) Strategic Actions & Competitor’s Strategies

Question 81.
What does Dogs symbolize in BCG matrix?
(A) Invest
(B) Harvest
(C) Build
(D) Divest
Answer:
(D) Divest

Question 82.
The ADL Matrix or Arthur D Little Strategic Condition Matrix is a Portfolio Management technique that is based on the –
(A) Market Growth Strategy (MGS)
(B) Corporate Portfolio Investment (CPI)
(C) Product Life Cycle (PLC)
(D) Strategic Business Units (SBU)
Answer:
(C) Product Life Cycle (PLC)

Question 83.
One of India’s premier utility vehicles manufacturing company ventures to foray into foreign markets. In the context of Ansoff’s Product-Market Growth Matrix, identify, the type of growth strategies followed for the given case.
(A) Market Development
(B) Product Development
(C) Market Penetration
(D) Market improvement
Answer:
(A) Market Development

Question 84.
What is shown in the Arthur D. Little (ADL) Matrix?
(A) It classifies strategy options according to market coverage and competitive advantage dimensions.
(B) This 5 × 4 model offers strategy prescriptions according to the competitive position of an organization and stage of maturity of its market.
(C) It relates an organization’s competitive position and industry attractiveness to determine appropriate strategies.
(D) It shows the relative market share and market growth rates of the organization’s portfolio of SBUs
Answer:
(B) This 5 × 4 model offers strategy prescriptions according to the competitive position of an organization and stage of maturity of its market.

Question 85.
There are four categories of industry maturity as per ADL Matrix:
(A) strong, favourable, mature and decline
(B) strong, favourable, tenable and weak
(C) embryonic, growth, mature and aging
(D) embryonic, growth, tenable and weak
Answer:
(C) embryonic, growth, mature and aging

Question 86.
If Industry Attractiveness is ‘High’ and Business Unit Strength is ‘Medium’, then which of the following strategy should be followed as per GE Matrix -……
(A) Invest/grow
(B) Hold/selective
(C) Divest/harvest
(D) Invest/selective
Answer:
(A) Invest/grow

Question 87.
A renowned auto manufacturing company launches ungeared scooters in the market.
In the context of Ansoff’s Product-Market Growth Matrix, identify, the type of growth strategies followed for the given case.
(A) Market Development
(B) Product Development
(C) Diversification
(D) Market Penetration
Answer:
(B) Product Development

Question 88.
Four generic strategies as discussed by Glueck and Jauch are –
(A) Stability Strategies, Expansion Strategies, Retrenchment Strategy & Combination Strategies
(B) Growth Strategies, Stable Strategies, Retrenchment Strategy & Combina-tion Strategies
(C) Stability Strategies, Expansion Strategies, Decline Strategy & Divest Strategies
(D) Corporate Strategies, Business Strategies, Operational Strategies & Functional Strategies
Answer:
(A) Stability Strategies, Expansion Strategies, Retrenchment Strategy & Combination Strategies

Question 89.
If the organization chooses to transform itself into a leaner structure and focuses on ways and means to reverse the process of decline, it adopts a –
(A) Turnaround Strategy
(B) Liquidation Strategy
(C) Divestment Strategy
(D) Differentiation Strategy
Answer:
(A) Turnaround Strategy

Question 90.
……………. is implemented by redefining the business by adding the scope of business substantially increasing the efforts of the current business.
(A) Expansion Strategy
(B) Differentiation Strategy
(C) Retrenchment Strategy
(D) Cost Leadership Strategy
Answer:
(A) Expansion Strategy

Question 91.
Dell Computer has decided to rely exclusively on direct marketing. This is example of –
(A) Differentiation Strategy
(B) Focus Strategy
(C) Cost Leadership Strategy
(D) Diversification Strategy
Answer:
(A) Differentiation Strategy

Question 92.
‘NDTV’, a TV Channel has identified a profitable audience niche in the electronic media. It has further exploited that niche through the addition of new channels like ‘NDTV’ Profit and ‘Image’. According to Porter, this is example of -………….
(A) Differentiation Strategy
(B) Focus Strategy
(C) Cost Leadership Strategy
(D) Diversification Strategy
Answer:
(B) Focus Strategy

Question 93.
In BCG matrix, what is the label of the horizontal axis?
(A) Relative Market share
(B) Business Strength
(C) Industry Growth Rate
(D) Market Growth Rate
Answer:
(A) Relative Market share

Question 94.
If Industry Attractiveness is ‘Low’ and Business Unit Strength is ‘High’, then which of the following strategy should be followed as per GE Matrix –
(A) Hold/selective
(B) Divest/harvest
(C) Invest/selective
(D) Invest/grow
Answer:
(A) Hold/selective

Question 95.
Car manufacturers ‘Maruti’ and ‘Tata Motors’ work on reducing their costs to sell their cars in popular segment at attractive prices. This is example of –
(A) Growth Strategy
(B) Turnaround Strategy
(C) Cost Leadership Strategy
(D) Unique Strategy
Answer:
(C) Cost Leadership Strategy

Question 96.
Another name for GE/McKinsey Matrix is –
(A) Business Making Matrix
(B) Business Planning Matrix
(C) Business Portfolio Matrix
(D) Business Grow Matrix
Answer:
(B) Business Planning Matrix

Question 97.
A business organization can redefine its business by divesting a major product line or market. This is supported by –
(A) Retrenchment Strategy
(B) Combination Strategy
(C) Growth Strategy
(D) Incline Strategy
Answer:
(A) Retrenchment Strategy

Question 98.
Statement I:
Stability strategy is not a ‘do-nothing’ strategy.
Statement II:
Third step in BCG Matrix is to calculate relative market share.
Select the correct answer from options given below.
(A) Statement I is true and II is false
(B) Statement II is true and I is false
(C) Both Statements are true
(D) Both Statements are false
Answer:
(B) Statement II is true and I is false

Question 99.
In BCG Matrix, what is the label of the Vertical axis?
(A) Relative Market share
(B) Business Strength
(C) National Growth Rate
(D) Market Growth Rate
Answer:
(D) Market Growth Rate

Question 100.
TOWS Matrix is an analytical tool that helps build over your and make the best use of available while also minimizing the ………
(A) Threats; Opportunities; Strengths
(B) Strengths; Opportunities; Threats
(C) Opportunities; Strength; Threats
(D) Strengths; Threats; Opportunities
Answer:
(B) Strengths; Opportunities; Threats