Strategic Management MCQ Quiz in తెలుగు - Objective Question with Answer for Strategic Management - ముఫ్త్ [PDF] డౌన్‌లోడ్ కరెన్

The correct answer is Reactive Orientation.

Key Points Characteristics of Strategic Management:

Strategic management is a process of planning, executing, and evaluating the organization's goals and objectives in the long-term. It involves developing and implementing strategies to achieve the desired outcomes effectively and efficiently. The following are the key characteristics of strategic management:

Long-term focus: Strategic management is concerned with achieving long-term goals and objectives rather than short-term gains.

Integrated approach: Strategic management is an integrated approach that involves the coordination of various functional areas within the organization.

Future-oriented: Strategic management is forward-looking, and it involves anticipating future trends, changes, and challenges that may impact the organization.

Goal-oriented: Strategic management is focused on achieving specific goals and objectives that are aligned with the organization's mission and vision.

Multi-dimensional: Strategic management involves the consideration of multiple factors, including internal and external factors that affect the organization's performance.

Continuous process: Strategic management is a continuous process that requires ongoing monitoring and evaluation to ensure the achievement of desired outcomes.

Decision-making: Strategic management involves making informed and effective decisions based on the organization's internal and external environment.

Flexibility: Strategic management requires flexibility to adapt to changing circumstances and to adjust the strategies as necessary.

Resource allocation: Strategic management involves the allocation of resources, including financial, human, and technological resources, to achieve the desired outcomes.

Risk management: Strategic management involves identifying and managing risks that may affect the achievement of the organization's goals and objectives.

Additional Information Reactive orientation is generally not considered a desirable feature of strategic management. Reactive orientation refers to a situation in which an organization only responds to changes in its environment after they have occurred, rather than proactively anticipating and preparing for them. This can lead to a number of issues, including missed opportunities and an inability to effectively respond to changes in the business environment.

The correct answer is A - III, B - IV, C - II, D - I.

Key Points

Important PointsStackelberg Model: 

• The Stackelberg model, a game theory model that explains how to maximise profits, was created by two economists, Oskar Morgenstern and John von Neumann.
• A game theory model that aids in understanding how we might maximise profits is the Stackelberg model. It is employed in management, marketing, and economics.
• The Stackelberg concept is based on a game that involves two players competing against one another.
• The first player has two options: make an uncertain investment or make no commitment at all. The second player can decide whether to take an instant risk with the possibility of bigger rewards or to wait for the first player to make an investment (a gamble).
• If firms are disproportionately powerful, it can enjoy first mover advantage, and captures two-thirds of market share, while follower firm gets only a third of the market share.

Nash equilibrium:

• A player can obtain the desired outcome by sticking to their initial strategy, according to the Nash equilibrium, a decision-making theorem in game theory.
• Each player's approach in the Nash equilibrium is the best one given what the other players have decided. Because everyone receives the result they want, everyone wins.
• A typical example from game theory that effectively illustrates the impact of the Nash equilibrium is the prisoner's dilemma.
• The Nash equilibrium is frequently addressed in conjunction with dominant strategy, which holds that an actor's chosen approach will produce superior results than any other feasible strategy, independent of the opponent's strategy.

Peter's Strategic Framework: 

• Peter's Strategic Framework is a comprehensive tool that helps organizations develop a clear understanding of their business environment and their own capabilities, and use that knowledge to develop effective strategic plans.
• Conceptualisation for identifying the structural determinants of the intensity of competition and the probability of firms in oligopolistic industries.

Prisoner's Dilemma: 

• The Prisoner's Dilemma is a game theory model that is often used to analyze the behavior of firms in an oligopolistic market.
• In the Prisoner's Dilemma, two firms are faced with a decision to either cooperate or compete with each other.
• If both firms cooperate, they both receive a moderate payoff. If one firm cooperates and the other competes, the competing firm receives a high payoff while the cooperating firm receives a low payoff.
• If both firms compete, they both receive a low payoff.
• A situation in oligopolistic market known as a "prisoner's dilemma" occurs when individuals always have an incentive to make decisions that have a negative impact on the group as a whole. There are numerous economic elements where the prisoner's dilemma arises.

Hence, it can be concluded that the correct answer is A - III, B - IV, C - II, D - I.

The correct answer is Both Statement I and Statement II are incorrect.

Key PointsStrategic decisions: 

• Strategic decisions are the decisions that look after the environment in which the operation of a firm takes place, the total resources, and the people who developed the company.
• These decisions have a good impact over years and decades, and even after the lifetime of a project.
• When a strategic decision is made, it is very difficult to change it for any reason in a short period. 
• A strategic decision determines the direction in which the embarkment of an entity takes place.
• The main objective of the strategy is to give an advantage within which action occurs.

Features of Strategic Decisions: 

• Strategic decisions are likely to be concerned with the scope of an organization’s activities.
• Strategy is to do with matching the activities of an organization to the internal and external environment in which it operates.
• Strategy also has to do with the matching of an organization’s activities to its resource capability. 
• Top Management such as the managing director, general managers, and other strategists have the power to formulate strategies in a centralized form. 
• Strategic decisions are likely to affect the long-term direction of the company.

Important Points

•  Strategic decisions are long-term decisions that are made for a long period of time. 
• Strategic decision-making is a centralized activity.
• Thus, Both Statement I and Statement II are incorrect.

Hence, the correct answer is Both Statement I and Statement II are incorrect.

The correct answer is (a)- (iv), (b)- (i), (c)- (iii), (d)- (ii)

Explanation: Strategy acts like a blueprint with the help of which a company can achieve its long term goals. There are different components of strategy:

• Vision
• Strategic Intent
• Mission
• Objectives
• Goals
• Programs

Key Points

•  Strategic Intent: It gives an idea with regard to the desires of an organization which needs to be attain future. The basic purpose of strategic intent is to give the answer to the question, what is the purpose of existence of the organization in the market.
• Vision: Vision is an abstract idea which talks about the aspirations of an organization. It motivates the employees of an organization to see the value in their efforts. It is a forward thinking process and if once it is formulated then it remains forever. 
• Mission: It gives brief description of organization with regard to who we are? what we do? etc. It is the unique purpose that sets it apart from other similar firms.
• Objective: These are specific milestones/ goals that needs to be achieve in a small period of time. Objectives can only be achieved when attempts are made in a specific direction.
  • For Example: An organization wants to increase its sale by 20% in the upcoming one year. 
• Program: These are the activities that provides framework to accomplish the plan.

So, Mission states the Reason for existence, Vision describe the aspiration -expresses as strategic intent, Objectives are concerned with Accomplishing results at certain time and Programs states the Activities needed to accomplish plan.

Confusion Points

•  Goals are the long term purpose of an organization whereas Objectives are generally for short term to medium term.
• Goals are the end result to be achieved whereas Objectives are the means to an end.
• For Example: "To be become a most profitable agency is an example of Goal". 
• For Example: "To increase the sale by 10% in upcoming three months", is an example of Objective.

Strategic Human Resouce Management (SHRM):

• SHRM is a concept that ensures that the traditional HR management practices blend well with the firm's overall strategic planning and implementation program.
• SHRM enhances the productivity and efficiency of an organization.
• SHRM refers to managing people in a manner that helps in achieving goals by effectively supporting and servicing business strategies.
• SHRM involves a set of internally consistent policies and practices designed and implemented to make sure that a firm's human capital contributes to the achievement of business objectives.
• Human Resources architecture is composed of the systems, practices, competencies, and employee performance behaviours that reflect the development and management of the firm's human resources.
• Schuler has developed a more comprehensive academic definition of SHRM, "Strategic Human Resource Management is largely about integration and adaptation. Its concern is to ensure that - (1) human resources (HR) management is fully integrated with the strategy and the strategic needs of the firm; (2) HR policies cohere both across policy areas and across hierarchies; and (3) HR practices are adjusted, accepted and used by line managers and employees as part of their everyday work".
• Strategic Human Resource Management has four implications:
  • Use of planning,
  • Clear and comprehensive approach of design and management of employees based on HR strategy and driven by philosophy,
  • Congruence between the HR activities, policies and business strategy
  • Treating employees as a strategic resource of the organization helps latter in achieving competitive advantage over others.

Therefore, statements A, B, C and D are the involvements of the Strategic Human Resource Management in Corporate Strategy.

The correct answer is A - III, B - IV, C - II, D - I

Key Points 

Important Points

• Divestitures - Divestitures is the process of selling of some assets of the firm such as property, product line, or a division. For example, a mining company selling off a particular division to pay off their loans.
•  Pac-man defence is a defensive strategy used by targeted company in case of hostile takeover whereby, the targeted company tries to acquire the company that has made an attempt to takeover the targeted company. For example, Company XYZ tries to takeover company PQR in a hostile attempt to gain control over company PQR. So, company PQR uses pac-man defence and purchases large number of shares of company XYZ thereby gaining control over the latter.
• Spin-off - It is where a parent company converts one of its division or subsidiaries into separate independent structures or companies. For example, spin-off of PayPal from its parent company EBay.
• Spit-up - In split-up, parent company is split in two or more entities and the parent company ceases to exist. For example, Hewlett Packard Company split-up and formed Hewlett Packard Enterprises and HP Inc. in 2015.

Hence, the correct answer is  (A) - (III), (B) - (IV), (C) - (II), (D) - (I)

The correct answer is Robert H. Waterman and Tom Peter. 

Key Points The seven-S model was developed by a team of consultants at McKinsey & Company in the 1970s, most notably Tom Peters, Robert Waterman, and Julien Phillips. While they are primarily credited with the framework, some credit also goes to Richard Pascale and Anthony G. Athos who contributed ideas during the model's initial development.

Here's a breakdown of each individual's contributions:

• Tom Peters: A renowned management consultant and author, Peters is well-known for his advocacy for human-centered approaches to business and his emphasis on organizational culture. His book "In Search of Excellence," co-authored with Robert Waterman, popularized the seven-S model and made it a cornerstone of strategic management thinking.
• Robert Waterman: Similar to Peters, Waterman is a management consultant and author who co-wrote "In Search of Excellence" and championed the seven-S model. He focused on organizational effectiveness and long-term growth strategies, highlighting the importance of aligning various internal factors for success.
• Julien Phillips: While less known than Peters and Waterman, Phillips played a crucial role in shaping the seven-S model. He was a senior partner at McKinsey and contributed significantly to the framework's theoretical underpinnings and practical applications.
• Richard Pascale and Anthony G. Athos: These academics provided valuable insights and perspectives during the initial brainstorming sessions for the seven-S model. Their expertise in organizational behavior and strategic change helped refine the framework and ensure its relevance for various organizational contexts

The correct answer is Porter's Five Forces.

Key Points Porter's Five Forces framework is best suited for evaluating a company's competitive position in the market. Developed by Michael Porter, this tool helps analyze the competitive forces in an industry and assess how these forces affect a company's profitability and competitive strategy. The five forces in Porter's framework are:

• Threat of New Entrants: The degree to which new companies can enter the market and pose a competitive threat to existing businesses.
• Bargaining Power of Buyers: The power that customers have to negotiate lower prices, demand better quality, or seek better services, thereby affecting the industry's profitability.
• Bargaining Power of Suppliers: The power that suppliers have to influence the prices of inputs, availability of supplies, and terms of supply contracts.
• Threat of Substitute Products or Services: The extent to which alternative products or services from different industries can meet similar customer needs, thereby placing a cap on the industry's profit potential.
• Intensity of Competitive Rivalry: The level of competition among existing companies in the industry, including factors such as price competition, advertising battles, and product introductions.

The correct answer is i, iii, iv, ii, v, vi.

Key Points

• Correct Answer Explanation:
  • Corporate strategy (i): This is the first step as it sets the overall direction for the company and provides a framework for the strategic business units (SBUs).
  • SBU objectives (iii): After establishing the corporate strategy, specific objectives for each SBU are defined to align with the corporate strategy.
  • SWOT analysis of SBU (iv): Conducting a SWOT analysis helps to understand the strengths, weaknesses, opportunities, and threats specific to each SBU.
  • Strategic alternatives and choice (ii): Based on the SWOT analysis, strategic alternatives are evaluated, and the best choice is selected.
  • Implementation (v): This step involves putting the chosen strategy into action.
  • Evaluation and control (vi): Finally, the implemented strategy is monitored and controlled to ensure it meets the desired objectives.​

Additional Information

• Option 2 (i, ii, iii, iv, v, vi):
  • This sequence incorrectly places 'Strategic alternatives and choice' before the 'SBU objectives' and 'SWOT analysis' which should come after understanding the specific objectives and analysis of SBUs.
• Option 3 (ii, iii, iv, v, vi, i):
  • Placing 'Strategic alternatives and choice' at the beginning is incorrect as strategic choices are based on objectives and analysis, which come later.
  • 'Corporate strategy' should be the first step, not the last.
• Option 4 (iii, ii, i, iv, v, vi):
  • This sequence starts with 'SBU objectives', bypassing the need for an overarching 'Corporate strategy' first.
  • 'Strategic alternatives and choice' should come after the analysis, not before.

Key Points

• McKinsey 7 S is the more popular name for the 7 S Model.
• This is due to the fact that the two individuals who created this model, Tom Peters and Robert Waterman, were consultants at McKinsey & Co. In their 1980 article "Structure Is Not Organization" and their 1981 books "The Art of Japanese Management" and "In Search of Excellence," Thy released their 7 S Model (1982).

Important PointsElements of 7S Model are as follows:

The Hard S’s

1. Strategy: Actions a company plans in response to or anticipation of changes in its external environment.
2. Structure: Basis for specialization and co-ordination influenced primarily by strategy and by organization size and diversity.
3. Systems: Formal and informal procedures that support the strategy and structure. (Systems are more powerful than they are given credit)

The Soft S’s

1. Style / Culture: The culture of the organization, consisting of two components: Organizational Culture: the dominant values and beliefs, and norms, which develop over time and become relatively enduring features of organizational life. Management Style: more a matter of what managers do than what they say; How do a company’s managers spend their time? What are they focusing attention on? Symbolism – the creation and maintenance (or sometimes deconstruction) of meaning is a fundamental responsibility of managers
2. Staff: The people/human resource management – processes used to develop managers, socialization processes, ways of shaping basic values of management cadre, ways of introducing young recruits to the company, ways of helping to manage the careers of employees
3. Skills: The distinctive competences – what the company does best, ways of expanding or shifting competences
4. Shared Values / Superordinate Goals: Guiding concepts, fundamental ideas around which a business is built – must be simple, usually stated at abstract level, have great meaning inside the organization even though outsiders may not see or understand them.