1. Successful differentiation strategy allows the company to
-
a :
gain buyer loyalty to its brands
-
b :
charge too high a price premium
-
c :
depend only on intrinsic product attributes.
-
d :
have product quality that exceeds buyers' needs.
Correct Answer: a [gain buyer loyalty to its brands]
2. Organisation culture is
-
a :
appreciation for the arts in the organisation
-
b :
ability of the organization to act in a responsible manner to its employees.
-
c :
combination of (A) and (B) above
-
d :
deeper level of basic assumptions and beliefs that are shared by the members of the firm.
Correct Answer: d [deeper level of basic assumptions and beliefs that are shared by the members of the firm.]
3. Innovation strategy is
-
a :
defensive strategy
-
b :
offensive strategy
-
c :
responding to anticipating customers and market demands
-
d :
harvesting strategy
Correct Answer: c [responding to anticipating customers and market demands ]
4. Question mark in BCG Matrix is an investment, which
-
a :
Yields low current income but has bright growth prospects.
-
b :
Yields high current income and has bright growth prospects.
-
c :
) Yields high current income and has bleak growth prospects
-
d :
Yields low current income and has bleak growth prospects.
Correct Answer: a [Yields low current income but has bright growth prospects. ]
5. Indian Airlines decreasing the airfare on the Delhi – Mumbai sector following the introduction of the no frills airlines would be an example of
-
a :
Cost leadership
-
b :
Price leadership
-
c :
Product differentiate
-
d :
Focus
Correct Answer: b [Price leadership]
6. For an entrepreneur
-
a :
Vision is before the mission
-
b :
Mission is before the vision
-
c :
Both are developed simultaneously
-
d :
Profitability is most crucial
Correct Answer: a [Vision is before the mission]
7. In product life cycle, ‘cash cows’ indicates
-
a :
High share
-
b :
Low growth and negative cash flow
-
c :
High share, low growth and large positive cash flow
-
d :
Low share, high growth and large positive cash flow
Correct Answer: c [High share, low growth and large positive cash flow ]
8. Typically profits are highest in which stage of the industry life-cycle?
-
a :
Introduction
-
b :
Growth
-
c :
Maturit
-
d :
Decline
Correct Answer: b [Growth ]
9. For an actor in Bollywood, his outstanding performance would be a/an
-
a :
Asset
-
b :
Strategic asset
-
c :
Core competency
-
d :
Capability
Correct Answer: c [Core competency ]
10. If an organisation acquires its supplier, it is an example of:
-
a :
Horizontal integration
-
b :
Forwards vertical integration
-
c :
Backwards vertical integration
-
d :
Downstream vertical integration
Correct Answer: c [Backwards vertical integration]
11. What are enduring statements of purpose that distinguish one business from other similar Firms?
-
a :
Policies
-
b :
Mission statements
-
c :
Objectives
-
d :
Rules
Correct Answer: b [Mission statements]
12. For an actress in Bollywood, her pretty face would be a/an
-
a :
Asset
-
b :
Strategic asset
-
c :
Core competency
-
d :
Capability
Correct Answer: b [Strategic asset]
13. Intensity of competition is ____ in low return industries
-
a :
Low
-
b :
non-existent
-
c :
High
-
d :
Not important
Correct Answer: c [High ]
14. Marketing Research studies are undertaken :
-
a :
to measure brand loyalty of a class of consumers
-
b :
to predict market potential of a product on a future date
-
c :
to understand product-price relationships
-
d :
all of the above
Correct Answer: d [all of the above]
15. Offensive strategy is a strategy:
-
a :
For small companies that consider offensive attacks in the market
-
b :
For those companies that search for new inventory opportunities to create competitive advantage
-
c :
For the market leader who should attack the competitor by introducing new products that make existing ones obsolete.
-
d :
For those companies who are strong in the market but not leaders and might capture a market share from the leader.
Correct Answer: d [For those companies who are strong in the market but not leaders and might capture a market share from the leader.]
16. Board of directors has certain basic tasks as follows:
-
a :
To monitor plans and programs of production
-
b :
To design the course of strategic options and appointment of top management.
-
c :
To control utilization of resources.
-
d :
To monitor courses of actions for marketing management.
Correct Answer: b [To design the course of strategic options and appointment of top management. ]
17. Directional Policy Matrix is the same as
-
a :
the BCG mode
-
b :
the 9-cell GE matrix
-
c :
the PIMS matrix
-
d :
the Life cycle portfolio analysis
Correct Answer: b [the 9-cell GE matrix]
18. Which of the following market structures would be commonly identified with FMCG products?
-
a :
Monopoly
-
b :
Monopolistic competition
-
c :
Oligopoly
-
d :
Perfect competition
Correct Answer: b [Monopolistic competition]
19. New entrants to an industry are more likely when.
-
a :
It is difficult to gain access to distribution channels
-
b :
Economies of scale in the industry are high
-
c :
Product differentiation in the industry is low
-
d :
Capital requirement in the industry are high
Correct Answer: c [Product differentiation in the industry is low]
20. A Product line is a group of products that
-
a :
are closely related
-
b :
are marketed through the same channel
-
c :
Perform a similar function for being sold to the same customers
-
d :
All of the above
Correct Answer: d [All of the above]
21. Corporation vision’ is the same as
-
a :
Corporate dream
-
b :
Corporate mission
-
c :
Corporate goal
-
d :
Corporate strategy
Correct Answer: a [Corporate dream]
22. Niche’ is similar to the
-
a :
Growth strategy
-
b :
Milking strategy
-
c :
Flanking strategy
-
d :
Survival strategy
Correct Answer: c [Flanking strategy]
23. A supplier group is powerful if
-
a :
It is not concentrated
-
b :
Offers unique products
-
c :
Its customers can backward integrate
-
d :
There are no switching costs
Correct Answer: b [Offers unique products]
24. Risk Management Strategies are
-
a :
Avoid Risk, Reduce Risk, Retain Risk, Combine Risk
-
b :
Transfer Risk, Share Risk and Hedge Risk
-
c :
Both (A) and (B)
-
d :
None of the above.
Correct Answer: c [Both (A) and (B)]
25. Which one of the following is NOT part of the McKinsey's 7-S framework
-
a :
Skills
-
b :
Staff
-
c :
Systems
-
d :
Supervision
Correct Answer: d [Supervision ]
