TUTORIAL 5 (Week 3(b))

Topic 4: Strategic Management

Multiple Choice Question

1.

The set of decisions and actions used to formulate and implement strategies that will
provide a competitively superior fit between the organization and its environment so as to
achieve organizational goals is known as
a. strategy formulation.
b. strategic planning.
c. strategic management.
d. strategy implementation.
e. strategy evaluation.

2.

The plan of action that prescribes resource allocation and other activities for dealing with
the environment and helping the organization attain its goals is known as a(n)
a. goal.
b. objective.
c. mission.
d. vision.
e. strategy.

3.

When AT&T decided to buy Media One, a cable company, it was pursuing a
a. functional-level strategy.
b. internal growth strategy.
c. multi-domestic strategy.
d. corporate-level strategy.
e. business-level strategy.

4.

Which of the following pertains to the organization as a whole?

a. Business-level strategy
b. Functional-level strategy
c. Corporate-level strategy
d. Operational-level strategy
e. Competitive-level strategy

5.

Ford's decision to completely redesign its Ford Taurus can be classified as a

a. corporate level strategy.
b. business level strategy.
c. functional level strategy.
d. retrenchment strategy.
e. stability strategy.

6.

Which of these questions is central to a functional-level strategy?

a. What business are we in?
b. How do we compete?
c. How do we support our chosen strategy?
d. What business do we buy?
e. Where to market our products?

ABDM2033 BASIC MANAGEMENT PRINCIPLES

TUTORIAL 5 (Week 3(b))

Topic 4: Strategic Management

7.

Which of these is true about the cash cow?

a. It generates tremendous profits in a rapidly growing industry.
b. It has a small market share in a rapidly growing industry.
c. It has a small market share in a slow growth industry.
d. It has a large market share in a slow growth industry.
e. It is generally a dead business that should be divested.

8.

The star has a

a. large market share in a rapidly growing industry.
b. large market share in a slow growth industry.
c. small market share in a rapidly growing industry.
d. small share of a slow growth market.
e. moderate market share in a slow growth industry.

9.

Gillette operates numerous strategic business units. Most of its units in the personal care
division have low market share but high business growth. These units are classified as
_____.
a. dogs
b. question marks
c. stars
d. cash cows
e. none of these

10.

The ____ function recruits selects, trains, transfers, promotes, and lays off employees to
achieve strategic goals.
a. production
b. leadership
c. information and control systems
d. structural design
e. human resource
Essay Questions:
1. Compare and contrast the three levels of strategy in an organization.

ABDM2033 BASIC MANAGEMENT PRINCIPLES

TUTORIAL 5 (Week 3(b))

Topic 4: Strategic Management

2. Discuss the FOUR (4) categories of business units under the Boston Consulting
Group (BCG). Illustrate your answer with a diagram.

ABDM2033 BASIC MANAGEMENT PRINCIPLES

TUTORIAL 5 (Week 3(b))

Topic 4: Strategic Management

3. Discuss Porter's three competitive strategies. Support your answers with examples.

ABDM2033 BASIC MANAGEMENT PRINCIPLES