4G 7:26 PM MOM 47 Strategic Manage...nt - Apr. 2018.pdf - Read-only . . . Page 2 of 5 SECTION A - Multiple Choice Items (25 Marks) Answer ALL questions in this section by selecting the most appropriate response in each case. Each question is valued at 1 mark. 1. Collecting and evaluating information on competitors is essential for successful (a) Internal analysis (b) Strategy evaluation (c) Strategy formulation (d) Strategy implementation (e) Strategy management 2. What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives? [a) Strategy formulation (b) Strategy evolution c) Strategy implementation (d) Strategic management e) Strategic leading 3. Although firm infrastructure is quite frequently viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following except: (a) Negotiating and maintaining ongoing relations with regulatory bodies. (b) Marketing expertise increasing a firm's revenues and enabling it to enter new markets. (c) Effective information systems contributing significantly to a firm's overall cost leadership strategy. (d) Top management providing a key role in collaborating with important customers. 4. is used to refer to strategic formulation, implementation and evaluation, with referring only to strategic formulation. (a) Strategic planning; strategic management (b) Strategic planning; strategic processing c) Strategic management; strategic planning d) Strategic management; strategic processing 5. During what stage of strategic management are a firm's specific internal strengths and weakness determined? (a) Formulation (b) Implementation c) Evaluation (d) Feedback [e) Goal-setting 6. Which phase of strategic management is called the action phase? (a) Strategy formulation (b) Strategy implementation c) Strategy evaluation d) Allocating resource e) Measuring performance Caribbean Maritime University Course Code............ Semester............". DO NOT WRITE OR TYPE AT THE BACK OF THIS SHEET: USE ONE SIDE ONLY. INSTRUCTIONS: Each page must be signed by the Chief Examiner and another, where applicable the External Examiner. Completed forms should be handed to the Registrar. Where applicable the EXTERNAL EXAMINER is required to sign the question paper and return it with comments, if any, (on a separate sheet), to the Registrar. Chief Examiner External Examiner (Where Applicable) Date. . . . . . ... Date... ...... Second Examiner Date. .. . ... 2 of 5 Page 3 of 5 O4G 7:26 PM MOM 47 Strategic Manage..nt - Apr. 2018.pdf - Read-only O Ky . . . Page 3 of 5 7. This refers to the possibility that the profits of established firms in the industry may be eroded by new competitors (a) Bargaining power of suppliers b) Threat of new entrants or competitors c) Intensity of rivalry among competitors in an industry d) Bargaining power of buyers 8. This occurs when existing competitors have strong brand identification and customer loyalty, it creates a barrier to entry by forcing entrants to spend heavily to overcome existing loyalties, this best describes [a) Product differentiation b) Economies of scale c) Capital requirements (d) Switching costs 9. A firm's external environment is broken down in all except one part (a) Technological environment (b) Industry environment c) General environment d) Competitor environment 10. This is a condition in the general environment that if exploited effectively helps a company achieve strategic competitiveness (a) Threats (b) Opportunities c) Strengths (d) Weaknesses 11. Anything that a firm does especially well compared to rival firms is referred to as: (a) Competitive advantage (b) Comparative advantage (c) Opportunity cost (d) Sustainable advantage = (e) An external opportunity 12. Internal are activities in an organization that are performed especially well. (a) Opportunities (b) Competencies (c) Strengths (d) Management (e) Factors 13. Long-term objectives should be all of the following except: (a) Measurable (b) Continually changing (c) Reasonable (d) Challenging (e) Consistent Caribbean Maritime University Course Code.............. Semester................. DO NOT WRITE OR TYPE AT THE BACK OF THIS SHEET: USE ONE SIDE ONLY. INSTRUCTIONS: Each page must be signed by the Chief Examiner and another, where applicable the External Examiner. Completed forms should be handed to the Registrar. Where applicable the EXTERNAL EXAMINER is required to sign the question paper and return it with comments, if any, (on a separate sheet), to the Registrar. Chief Examiner External Examiner (Where Applicable) Date........ ... ..............""" Date...... . .........". Second Examiner Date....... . . . . . . .. . . cases.access 3 of 5 Page 4 of 5 O K4G 7:26 PM MOM 46 Strategic Manage...nt - Apr. 2018.pdf - Read-only O . . . Page 4 of 5 14. Strategic management enables an organization to_ instead of companies just responding to treats in their business environment. (a) Be proactive (b) Determine when the treat will subside (c) Avoid the treats (d) Defeat their competitors (e) Foresee into the future 15. Which of these questions should a vision statement answer? (a) What is our business (b) Who are our employees? (c) Why do we exist? (d) What do we want to become? (e) Who are our competitors? 16. Which statement should be created first and foremost? (a) Strategic (b) Vision (c) Objective (d) Mission (e) Competitive advantage 17. The purpose of a mission statement is to declare all of these except: (a) A reason for being (b) An annual financial plan (c) A statement of purpose (d) A statement of beliefs (e) Whom it wants to serve 18. Identify and evaluating key social, political, economic, technological and competitive trends and events comprise. (a) Developing an effective mission statement (b) Conducting an internal audit c) Performing an external audit (d) Formulating strategy (e) Implementing strategy 19. If suppliers are unreliable or too costly, which of these strategies may be appropriate? (a) Horizontal integration (b) Backward integration c) Market penetration d) Forward integration (e) Concentric diversification 20. Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms. (a) Stays the same (b) Increases [c) Decreases (d) Neutralizes (e) Fluctuates Caribbean Maritime University Course Code. ........... Semester........" DO NOT WRITE OR TYPE AT THE BACK OF THIS SHEET: USE ONE SIDE ONLY. INSTRUCTIONS: Each page must be signed by the Chief Examiner and another, where applicable the External Examiner. Completed forms should be handed to the Registrar. Where applicable the EXTERNAL EXAMINER is required to sign the question paper and return it with comments, if any, (on a separate sheet), to the Registrar. Chief Examiner External Examiner (Where Applicable) Date....... . . . . . . . .. . ......success Date.. .... ..... Second Examiner Date. . . . . . ..... 4 of 5 Page 5 of 5 O4G 7:26 PM MOM 46 Strategic Manage..nt - Apr. 2018.pdf - Read-only KY Second Examiner Date. . . . . . .... Page 5 of 5 True or False Select either True or False for each of the following statements. 21. Long-term objectives represent the results expected from pursuing certain strategies. (True or False) 22. Objectives provide direction and allow for organizational synergy. (True or False) 23. Strategic objectives include those associated with growth in revenues, growth in earnings, higher dividends, larger profit margins, and improved cash flow. (True or False) 24. "If it ain't broke, don't fix it" refers to managing by crisis. (True or False) 25. Shifting focus from general issues to specific issues generally helps strategists gain commitment and achieve desired results. (True or False) [Total: 25 marks] SECTION B - Essay Type Items (75 Marks) Answer any THREE (3) questions from this section. Each is worth 25 marks. 1. Strategy is important to organizations if they are to gain and maintain a competitive advantage. Critically discuss how the strategic planning process assist companies in gaining and maintaining a competitive advantage. 2. A company's mission differs from its vision, it encompasses both the purpose of the company as well as the basis of competition and competitive advantage. Is it critical for organizations to have mission and vision statement? Give reasons for your answer. 3. According to Michael Porter, what are the five competitive forces that create vital opportunities and threats for organizations? Which force do you feel is the most important in the computer industry today? Give reasons for your answer. 4. What are the five major types of external forces that should be examined as part of an external audit? Give an example of each type of force. 5. Define strategic management and discuss the stages in the strategic management process. ---END OF QUESTION PAPER--- Caribbean Maritime University Course Code........ Semester............." DO NOT WRITE OR TYPE AT THE BACK OF THIS SHEET: USE ONE SIDE ONLY. INSTRUCTIONS: Each page must be signed by the Chief Examiner and another, where applicable the External Examiner. Completed forms should be handed to the Registrar. Where applicable the EXTERNAL EXAMINER is required to sign the question paper and return it with comments, if any, (on a separate sheet), to the Registrar. Chief Examiner External Examiner (Where Applicable Date. . . . . . . . . . .. ..... Date. ... . . .. ..........". 5 of 5 Second Examiner Date. . . . . . ... O