Strategic Management MCQ PDF

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 Strategic Management
MCQ PDF
Cou
Strategic Management explores the formulation, implementation, and evaluation of

cross-functional decisions that enable organizations to achieve long-term objectives.

The course examines the tools and frameworks used by business leaders to analyze

competitive environments, identify internal strengths and weaknesses, and craft

strategies that foster sustainable competitive advantage. Through case studies and

practical applications, students develop critical thinking skills in areas such as industry

analysis, corporate governance, innovation, and strategic leadership, preparing them to

navigate complex business landscapes and drive organizational success.

Recommended Textbook
Modern Management Concepts and Skills 14th Edition by Samuel C. Certo

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21 Chapters
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1890 Flashcards
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Page 2
 Chapter 1: Principles of Modern Management: Concepts

and Skills
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Sample Questions
Q1) Which of the following is an error managers make during the planning stage of
management?
A) not establishing departments appropriately
B) not emphasizing coordination of organization members
C) not exploring enough viable alternatives for reaching objectives
D) not monitoring progress in carrying out plans
E) not taking the time to communicate properly with organization members
Answer: C

Q2) Planning is concerned with setting objectives for organizational success, while
controlling is concerned with monitoring the actual performance of the organization's
success.
A)True
B)False
Answer: False

Q3) Planning involves choosing tasks that must be performed to attain organizational
goals, outlining how the tasks must be performed, and indicating when they should be
performed.
A)True
B)False
Answer: True Page 3

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 Chapter 2: Managers, Society, and Sustainability
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Sample Questions
Q1) Is social responsibility an important part of an organization's management
practices? Justify your answer.
Answer: Arguments for business performing social responsibility activities: (1) Business,
as a whole, is a subset of society, one that exerts a significant impact on the way society
exists. Because business is such an influential member of society, it has the responsibility
to help maintain and improve the overall welfare of society. (2) Business should perform
social responsibility activities because profitability and growth go hand-in-hand with
responsible treatment of employees, customers, and the community.
Arguments against business performing social responsibility activities: Making business
managers simultaneously responsible to business owners for reaching profit objectives
and to society for enhancing societal welfare sets up a conflict of interest that could
potentially cause the demise of business as it is known today.

Q2) Empirical studies, conducted by various corporations in the United States, have
demonstrated a definitive relationship between social responsibility and profitability.
A)True
B)False
Answer: False

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Page 4
 Chapter 3: Management and Diversity
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Sample Questions
Q1) Having too many expectations to comfortably fulfill is termed as ________.
A) role overload
B) role conflict
C) pluralism
D) tokenism
E) role ambiguity
Answer: A

Q2) ________ refers to an environment in which cultural, group, and individual

differences are acknowledged, accepted, and viewed as significant contributors to the
entirety.
A) Biculturalism
B) Pluralism
C) Xenocentrism
D) Ethnocentrism
E) Tokenism
Answer: B

Q3) "Token" employees are always given very high visibility in an organization.
A)True
B)False
Answer: False

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Page 5
 Chapter 4: Managing in the Global Arena
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Sample Questions
Q1) Transnational organizations have the least international involvement of all types of
organizations involved in the international arena.
A)True
B)False

Q2) Which of the following statements is true about NAFTA?

A) It aims at facilitating trade among the United States, Canada, and Mexico.
B) Its members include Denmark, the United Kingdom, Portugal, the Netherlands,
Belgium.
C) It is an international market agreement aimed at facilitating trade among African
nations.
D) It works to reduce tariffs and other trade barriers across the Asia-Pacific region.
E) It has 21 members, including Canada, the People's Republic of China, Indonesia, and
the United States.

Q3) A company that merely exports products to a foreign country cannot be considered
a multinational corporation.
A)True
B)False

Q4) According to Hofstede, what are the five basic dimensions of culture?

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Page 6
 Chapter 5: Plans and Planning Tools
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Sample Questions
Q1) According to Drucker, which of the following statements is an example of an
organizational objective related to productivity?
A) to reduce overall inventory management costs by 15 percent
B) to increase the use of environmentally friendly workplace practices
C) to lower the rate of attrition in the organization within the next 6 months
D) to increase the unit's monthly output by 10 percent within the next 12 months
E) to reduce total overhead costs by 5 percent by the end of the year

Q2) ________ refers to what a firm exists to do, given a particular group of customers
and customer needs.
A) An operational plan
B) A unique selling proposition
C) An organizational purpose
D) A long-term goal
E) A vision statement

Q3) What are some of the main reasons plans fail?

Q4) Discuss the differences between plans, goals, objectives, premises, and
assumptions.

Q5) Are planning tools an effective way for managers to enhance their company's plans
and goals? Defend your answer.

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 Chapter 6: Making Decisions
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Sample Questions
Q1) Discuss briefly the steps in the decision-making process.

Q2) The group decision-making process that involves the circulation of questionnaires
on a specific problem among group members is known as ________.
A) groupthink
B) brainstorming
C) the Delphi technique
D) the nominal group technique
E) the devil's advocate technique

Q3) A choice made between two or more available alternatives is a(n) ________.
A) directive
B) consensus
C) decision
D) alternative
E) objective

Q4) ________ refers to the likelihood that an event or outcome will actually occur.
A) Surety
B) Ratio
C) Probability
D) Brainstorming
E) Bias

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 Chapter 7: Strategic Planning: Strategies, Tactics, and

Competitive Dynamics
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Sample Questions
Q1) ________ is a strategy adopted by management to maintain or slightly improve
the amount of business that an SBU is generating.
A) Focus
B) Stability
C) Retrenchment
D) Growth
E) Divestiture

Q2) Porter's model emphasizes ________.

A) strengths, weaknesses, opportunities, and threats
B) stars, dogs, cash cows, and question marks
C) competitive forces in an industry
D) business strength and industry attractiveness
E) environmental analysis

Q3) What is the BCG Growth-Share Matrix? Explain what stars, question marks, cash
cows, and dogs are. According to the BCG Growth-Share Matrix, what should managers
do with each of these?

Q4) What is a SWOT analysis and what benefit does conducting this analysis offer to
managers?

Pagegeneric
Q5) Briefly differentiate Michael Porter's three 9 strategies.

Q6) What are the main strategy formulation tools of strategic management?

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 Chapter 8: Fundamentals of Organizing
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Sample Questions
Q1) Bureaucracy can be characterized as a management system with detailed
procedures, rules, and a clearly outlined organizational hierarchy with impersonal
relationships among organization members.
A)True
B)False

Q2) Discuss the five main steps in the organizing process.

Q3) What role does division of labor play in the organizing function of management?

Q4) Pixel Technologies, a manufacturer of electronic products and cell phones, has
divided the business into two divisions - Electronics Retailers and Cell Phone Retailers.
This indicates that Pixel Technologies has departmentalized on the basis of ________.
A) geography
B) products
C) functional
D) customers
E) matrix

Q5) The matrix structure is contradictory to the principle of unity of command.

A)True
B)False

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Page 10
 Chapter 9: Responsibility, Authority, and Delegation
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Sample Questions
Q1) When properly designed, job descriptions ________.
A) encourage job sharing among employees
B) increase the number of tasks associated with the job
C) communicate job content to employees
D) encourage the application of sociotechnical systems principles to the humanization
of work
E) encourage job rotation among employees

Q2) Bay Industries has a small-scale shoe manufacturing plant which has incurred a
high number of product defects in the past several months. The quality control team
studies the problem and recommends that the production manager change one of the
company's suppliers of leather. Identify the role performed by the staff personnel in this
situation.
A) advisory
B) service
C) control
D) latent
E) administrative

Q3) What factors should managers take into consideration when choosing whether they
should use centralization or decentralization decision making practices?

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Page 11
 Chapter 10: Human Resource Management
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Sample Questions
Q1) ________ is an on-the-job training technique that involves direct critiquing of how
well an individual is performing a job.
A) Programmed learning
B) Coaching
C) Lecturing
D) Overlearning
E) Position rotation

Q2) When tests are used as part of the selection process, care must be taken to ensure
that the test being used is both valid and reliable. A test is valid if ________.
A) it measures what it is designed to measure
B) it is used as the sole determinant to hire an individual
C) it changes constantly so as to keep malpractices at bay
D) it doesn't contain language or cultural biases that discriminate against minorities
E) it subjectively assesses candidates' potential and desire to obtain a position

Q3) Discuss the need for recruiters to know their source of human resources.

Q4) What is the role of training in providing appropriate human resources to an

organization?

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Page 12
 Chapter 11: Organizational Change: Stress, Conflict and

Virtuality
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Sample Questions
Q1) Value Innovations Inc. engages in selling computers and other electronic
components through telephone and Web orders. The company has decided to change
some of its policies. When recruiting employees, it will now focus primarily on the
attitudes of individuals. Here, the company is concentrating on a(n) ________ factor.
A) structural
B) technological
C) communication
D) people
E) informative

Q2) Jacob believes most conflicts are win-win conflicts. He always attempts to
overcome them by working out differences with employees. Which of the following
conflict management techniques is preferred by Jacob?
A) resolving
B) compromising
C) cooperating
D) avoiding
E) conciliating

Q3) Explain the concept of grid organizational development (grid OD).

Q4) Briefly explain the dynamics of organizational change and stability.

Page 13

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 Chapter 12: Influencing and Communication
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Sample Questions
Q1) The basic elements of the interpersonal communication process are the source, the
encoder signal, and the decoder.
A)True
B)False

Q2) JoAnne is a new supervisor and employee at Cooper Corporation. She is attempting
to better identify and understand each of her employees' needs and job duties. What
would be the most effective means for JoAnne to gather this information from her
employees, especially if she is wanting to achieve 100% understanding of all components
of the communication cycle?
A) JoAnne should meet with her employees together as a large group
B) JoAnne should meet with her employees individually
C) JoAnne should meet with two of her employees at the same time
D) JoAnne should have her employees email her with her requested information
E) JoAnne should have individual phone conversations with her employees

Q3) What is the major purpose of feedback in the communication process?

A) It is used by the source to ensure successful communication.
B) It can be used to boost the legitimate power of managers.
C) It provides formal documentation of the communication process.
D) It helps the source avoid questions from the destination.
E) It fosters lateral communication in the organization.

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Page 14
 Chapter 13: Leadership
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Sample Questions
Q1) Keith is the leader of a project team designated to design new products for a firm. He
conducts group meetings and discussions regularly so that all team members are
aware of the work progress. Keith ensures that all members participate in the meetings
and that all the key decisions regarding product design are made by the team.
According to the VYJ model, Keith's style of leadership can be classified as ________.
A) GII
B) CI
C) AI
D) CII
E) AII

Q2) According to the contingency theory of leadership, the extent to which the leader
has control over the rewards and punishments received by followers is known as
________.
A) leader-member relations
B) position power
C) task structure
D) power distance
E) motivational structure

Q3) Explain the Vroom-Yetton-Jago model of leadership.

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Page 15
 Chapter 14: Motivation
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Sample Questions
Q1) Theory X is a set of essentially positive assumptions about human nature.
A)True
B)False

Q2) Which of the following theories is a content theory of motivation?

A) needs-goal theory
B) equity theory
C) Argyris's maturity-immaturity continuum
D) Vroom expectancy theory
E) Porter-Lawler theory

Q3) The ________ need of Maslow's hierarchy of needs relates to the individual's desire
to be free from harm, including both bodily and economic disaster.
A) security
B) social
C) physiological
D) esteem
E) self- actualization

Q4) Many perceive the Equity Theory as a dangerous theory and one that management
absolutely must understand. What is the theory's guiding premise and why is it that
management needs to be very focused on the principles of this motivation theory?

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Page 16
 Chapter 15: Groups and Teams
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Sample Questions
Q1) The most fundamental ingredient of effective teams is ________.
A) cohesiveness
B) trust
C) collaboration
D) teamwork
E) stability

Q2) As groups progress through stages of formal group development, the group
members are said to grow more mature, effective, and productive. What are the key
characteristics of group members at their most advanced stage?

Q3) Which of the following is one of the primary benefits of informal group membership?
A) developing new ideas for solving existing organizational problems
B) promoting discipline in the organization
C) perpetuating social and cultural values that group members consider important
D) providing basic structure of division of work and responsibilities
E) generating clarity on what support and input each employee can expect from others

Q4) Define a group as used in the context of management. Why is study of groups
important to managers?

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Page 17
 Chapter 16: Managing Organization Culture
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Sample Questions
Q1) 3M, a cell phone company, aims to maintain an organizational focus on providing
better customer service. It hopes that this move will result in building strong ________.
A) job satisfaction
B) organizational effectiveness
C) organizational commitment
D) employee proactivity
E) business resilience

Q2) Which of the following activities is a manager most likely to perform if he or she is
from an organization with a market culture?
A) celebrate the successes of work teams and individuals
B) make continuous improvement a feature of the workplace
C) understand the keys to their competitors' success
D) talk to people about their new ideas and what they expect the results of ideas could
be
E) establish vehicles for trying out new ideas

Q3) Briefly explain the role of organizational rewards as a cultural artifact.

Q4) Subcultures can affect management efforts both positively and negatively.
A)True
B)False

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Page 18
 Chapter 17: Controlling, Information, and Technology
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Sample Questions
Q1) As part of the controlling process, you have finished measuring the performance of
your team. What must you do next?
A) take corrective action
B) compare measured performance to standards
C) establish unit of measure to gauge performance
D) modify past plans
E) restructure control systems and subsystems

Q2) Which of the following is true about the steps a manager can take to increase his or
her total power?
A) Moving up the organizational hierarchy is the best way of enhancing personal power.
B) Avoid focusing on your professional achievements.
C) Making subordinates feel obligated to you will enhance your personal power.
D) Avoid using bonuses and raises to link rewards to performance.
E) Managers should increase the job rotation period.

Q3) Data refers to the set of conclusions derived from the analysis of facts and figures
that relate to the operation of an organization.
A)True
B)False

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Page 19
 Chapter 18: Production and Control
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Sample Questions
Q1) ________ is the process used to determine how many products should be
inspected to calculate a probability that the total number of products will meet
organizational quality standards.
A) Statistical quality control
B) Quality assurance
C) Six sigma
D) Quality circle
E) Kaizen procedure

Q2) ________ is an operations control activity that determines the flow of materials
from vendors through an operations system to customers.
A) Just-in-time philosophy
B) Zero-based control
C) Work scheduling
D) Production planning
E) Materials control

Q3) Human effort is often replaced by electromechanical devices in operations such as

welding, materials handling, design, and drafting. This is called automation.
A)True
B)False

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Page 20
 Chapter 19: Appendix 1: Managing History and Current

Thinking
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Sample Questions
Q1) The scientific method advocated by management science researchers dictates that
scientists must test a model by performing an experiment on ________.
A) the actual system to see whether the effects of changes predicted using the model
actually occur when the changes are made
B) various systems to see whether the effects of changes predicted using the model
actually occur when the changes are made
C) various systems to see whether the necessary changes can be incorporated
D) the actual system and other systems to see whether the necessary changes can be
incorporated
E) various systems to see whether the necessary changes can be incorporated on the
actual system

Q2) ________ to management emphasizes that what managers do, in practice,

depends on the given set of circumstances.
A) The classical approach
B) The lower-level management analysis approach
C) The management science approach
D) The contingency approach
E) The comprehensive management analysis approach

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Page 21
 Chapter 20: Management and Entrepreneurship: Handling

Start-Ups and New Ventures

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Sample Questions
Q1) The success of corporate entrepreneurship efforts will depend on many factors.
Which of the following are examples of dependent factors?
A) organization's culture, practices, tolerance level for uncertainty
B) stakeholders and investors
C) Dow and NASDAQ
D) individual profits
E) competition

Q2) Who is an entrepreneur?

Q3) Betty and David decide to conduct a survey to observe people's reaction to their
innovative idea for a new product. With the help of an organization that conducts
primary research, the couple are able to get the responses of people from their town.
The results are very encouraging and they decide to start their company. What error
have they committed?
A) hypercorrection
B) cognitive distortion
C) law of small numbers
D) defense mechanism
E) overregularization

Q4) Explain feasibility analysis.

Page 22

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 Chapter 21: Encouraging Creativity and Innovation
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Sample Questions
Q1) Managers should surround non-creative employees with creative employees so that
creativity can rub off on the non-creative employees.
A)True
B)False

Q2) According to the reengineering improvements process, work should be organized

around outcomes rather than tasks.
A)True
B)False

Q3) Which of the following is an example of a topic that management ideas encompass
in the invention stage of the innovation process?
A) promoting products in the marketplace
B) redesigning organizational structure
C) restyling workstations to make employees more productive
D) adopting robotics to make a manufacturing process more efficient
E) employing barcoding to better manage inventory

Q4) According to W. Edwards Deming, employees have the primary responsibility for
achieving product quality.
A)True
B)False

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Page 23