OBC1 Strategic Management Exam
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Strategic management compromises nine critical tasks. Which of the following is not one of
the tasks? - CORRECT ANSWER Development of annual objectives compatible with
grand strategies
Large-scale, future-oriented plans, for interacting with the competitive environment to
achieve company objectives refers to its - CORRECT ANSWER Strategy
In a turbulent and competitive free enterprise environment, a firm will succeed only if it takes
a________ stance towards change. - CORRECT ANSWER proactive
The degree to which participation, responsibility, authority and discretion in decision-making
are specified is called. - CORRECT ANSWER formality
Which on of these forces does not determine how much formality is needed in strategic
management? - CORRECT ANSWER country of origin
Which of these is not true about the company mission - CORRECT ANSWER it
provides specific strategies for front-line managers
A mission statement should include all of these components except - CORRECT
ANSWER the government regulations the firm must meet
Whereas ________ expresses an answer to the question "What business are we in?" a
company ________ is developed to express the aspirations of the executive leadership. -
CORRECT ANSWER Mission statement; vision statement
_______ delegate authority to _________. - CORRECT ANSWER Owners; managers
, Which of the following is not a fundamental criterion for a long-term objective? - CORRECT
ANSWER sustainable
Which of the following is a generic strategy developed by Michael Porter? - CORRECT
ANSWER Differentiation
The strategy that seeks to reap the premium margins associated with creation and customer
acceptance of a new product or service is - CORRECT ANSWER Innovation
If a firm plans to acquire a business because it represents the most promising investment
opportunity available, the grand strategy is - CORRECT ANSWER Conglomerate
diversification
Which of the following are often referred to as generic strategies - CORRECT
ANSWER cost leadership and differentiation
Which of the following is not a skill or a resource that fosters differentiation - CORRECT
ANSWER process engineering skills
Strategies used by firms competing in markets where the growth rate of that market from year
to year had reached or is close to zero are called _________________ industry strategies -
CORRECT ANSWER mature
Growth through the acquisition of one or more similar firms operating at the same stage of
the production - marketing chain refers to - CORRECT ANSWER horizontal
acquisition
Which of the following factors is not considered in determining industry attractiveness -
CORRECT ANSWER firms level of differentiation
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Strategic management compromises nine critical tasks. Which of the following is not one of
the tasks? - CORRECT ANSWER Development of annual objectives compatible with
grand strategies
Large-scale, future-oriented plans, for interacting with the competitive environment to
achieve company objectives refers to its - CORRECT ANSWER Strategy
In a turbulent and competitive free enterprise environment, a firm will succeed only if it takes
a________ stance towards change. - CORRECT ANSWER proactive
The degree to which participation, responsibility, authority and discretion in decision-making
are specified is called. - CORRECT ANSWER formality
Which on of these forces does not determine how much formality is needed in strategic
management? - CORRECT ANSWER country of origin
Which of these is not true about the company mission - CORRECT ANSWER it
provides specific strategies for front-line managers
A mission statement should include all of these components except - CORRECT
ANSWER the government regulations the firm must meet
Whereas ________ expresses an answer to the question "What business are we in?" a
company ________ is developed to express the aspirations of the executive leadership. -
CORRECT ANSWER Mission statement; vision statement
_______ delegate authority to _________. - CORRECT ANSWER Owners; managers
, Which of the following is not a fundamental criterion for a long-term objective? - CORRECT
ANSWER sustainable
Which of the following is a generic strategy developed by Michael Porter? - CORRECT
ANSWER Differentiation
The strategy that seeks to reap the premium margins associated with creation and customer
acceptance of a new product or service is - CORRECT ANSWER Innovation
If a firm plans to acquire a business because it represents the most promising investment
opportunity available, the grand strategy is - CORRECT ANSWER Conglomerate
diversification
Which of the following are often referred to as generic strategies - CORRECT
ANSWER cost leadership and differentiation
Which of the following is not a skill or a resource that fosters differentiation - CORRECT
ANSWER process engineering skills
Strategies used by firms competing in markets where the growth rate of that market from year
to year had reached or is close to zero are called _________________ industry strategies -
CORRECT ANSWER mature
Growth through the acquisition of one or more similar firms operating at the same stage of
the production - marketing chain refers to - CORRECT ANSWER horizontal
acquisition
Which of the following factors is not considered in determining industry attractiveness -
CORRECT ANSWER firms level of differentiation
