CBM 102:

Strategic Management

Module Test I

I. Multiple Choice.

_____ 1. An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. a. Strategy b. Mission c. Vvision d. Objective

_____ 2. Is defined as the analyses, decisions and action an organization undertakes in order to create and sustain competitive advantages. a. Competitive advantage b. Strategic management c. economies of scope d. none of the above

_____ 3. A strategy competitors are unable to duplicate or find too costly to try to imitate. a. E-commerce b. Competitive advantage c. innovation d. economies of scope

_____ 4. Are individuals who are most responsible for the success or failure of an organization. a. Economist b. managers c. strategist d. employees

_____ 5. Which of the following is not a stakeholder of a company? a. Customers b. Employees c. suppliers d. none of the above

_____ 6. Refers to performing actions at a low cost relative to a benchmark a. efficiency b. effectiveness c. resourcefulness d. all of the above _____ 7. Type of companies with a limited product line that focus on improving the efficiency of their own operations. a. defenders b. prospectors c. analyzers d. reactors

_____ 8. Type of companies includes firms with fairly broad product lines that focus on product innovation and market opportunities. a. defenders b. prospectors c. analyzers d. reactors

_____ 9. This type includes business organizations that operated in at least two different product-market areas, one stable and one variable. In the stable areas, efficiency is emphasized. In the variable areas, innovation is emphasized. a. defenders b. prospectors c. analyzers d. reactors _____ 10. This type includes companies that lack a consistent strategy-structure culture relationship. a. defenders b. prospectors c. analyzers d. reactors

_____ 11. An idea, product or technology that has been developed and marketed to customers who perceive it as unique and fresh a. innovation b. invention c. all of the above d. none of the above

_____ 12. The course of a product's sales and profits over its lifetime a. product life cycle b. economies of scope c. experience curve d. none of the above

_____ 13. Is the drop in the average per-unit production cost that comes with accumulated production experience a. product life cycle b. economies of scope c. learning curve d. none of the above

_____ 14. Postulates that there is a decrease in the per unit cost of production as the volume of production is increased a. product life cycle b. economies of scope c. experience curve d. none of the above

_____ 15. A declaration of the firms reason for being. a. vision b. mission c. strategic objectives d. none of the above

II. Modified Multiple Choice.

For Items 1-9: Identify the nature of the following triggering events: a. internal b. external c. all of the above d. none of the above

_____ 1. New leadership

_____ 2. Market factors

_____ 3. Performance gap

_____ 4. Technological environment

_____ 5. reorganization

_____ 6. Government policies

_____ 7. Change

_____ 8. Economic environment

_____ 9. Natural disasters

For Items 10-15: Identify the step in the strategic management process responsible for the following activities: a. strategic analysis b. strategy formulation c. strategy implementation d. none of the above

_____ 10. Examining organizational goals and objectives

_____ 11. Studying the internal environment

_____ 12. creating business and corporate level strategies

_____ 13. strategic control

_____ 14. devising competitive strategies

_____ 15. Execution strategies

CBM 102: Strategic Management Module Test II

I. Modified True or False. On the blank before each number, write TRUE if the statement is correct; if it is FALSE, change the underlined word or group of words to make the statement correct.

_____ 1. The industry environment is composed of dimensions in the broader society the influence an industry and the firms within it.

_____ 2. An opportunity is a condition in the general environment that, if exploited, helps a company achieve strategic competitiveness.

_____ 3. Competitive intelligence refers to a firms activities of collecting and interpreting data on competitors, defining and understanding the industry and competitors strength and weaknesses.

_____ 4. Buyers can exert bargaining power over participants in the industry by threatening to raise prices or reduce the quality of purchased goods and services.

_____ 5. Competitive analysis intensifies when a firm is challenged by a competitors actions or when a company recognizes an opportunity to improve its market position

_____ 6. Strengths are characteristics of the business that give it an advantage over others

_____ 7. Analysis of the five forces in the industry allows the firm to determine the industrys attractiveness in terms of the potential to earn adequate or superior returns.

_____ 8. In general, the stronger the competitive forces are, the higher the profit potential for an industrys firms.

_____ 9. Intangible resources are less visible and more difficult for competitors to understand, purchase, imitate or substitute for

_____ 10. Tangible Resources are organizational resources that can be seen and quantified.

II. Multiple Choice. For Items 1-8: In the value chain analysis, determination of the primary and secondary activities is important in prioritizing use of resources and identifying value creating activities. Identify which are secondary and primary activities in the following: a. Primary activities b. Secondary activities

_____ 1. Inbound logistics

_____ 2. Operations

_____ 3. Human resource department

_____ 4. Procurement

_____ 5. Service

_____ 6. Marketing and Sales

_____ 7. Technological development

_____ 8. Administration

For Items 9-15: Identify what component of the general environment are as follows: a. Demographic b. Economic c. Socio cultural d. Political/Legal e. Technological f. Global

_____ 9. Wireless communication

_____ 10. Ethnic composition

_____ 11. Currency exchange rates

_____ 12. Increasing international trade

_____ 13. Interest rates

_____ 14. Deregulation of several industries

_____ 15. Aging population

For Items 16-20: Identify which of five forces of competition model is described below: a. Threats to new entrants b. Bargaining power of supplier c. Bargaining power of buyer d. Rivalry of Competing Firms e. Threat of product substitute

_____ 16. Refers to the possibility that the profits of established firms in the industry may be eroded by new competitors

_____ 17. Threatening to raise prices or reduce the quality of purchased goods and services.

_____ 18. When a firm is challenged by a competitors actions or when a company recognizes an opportunity to improve its market position _____ 19. Occurs when a buyer poses a credible threat for backward integration.

_____ 20. Can be reduced by differentiating a product along dimensions that customer value such as price, quality, after sales service and location

CBM 102: Strategic Management Module Test III

Multiple Choice. For Items 1-8: Identify the integration strategy applied in the following cases. a. Horizontal Integration b. Forward integration c. Backward Integration d. none of the above

_____ 1. Jollibee Food Corporation set up its own distribution network

_____ 2. Rebisco Group of Companies established Omnipack Industrial Corporation the manufacturer and creator of its packaging materials. _____ 3. Puregold Price Club Inc. bought S&R membership shopping and Parco Supermarket Chain in 2012

_____ 4. Universal Robina Corporation has a flour and sugar milling business divisions as source of its raw materials for its food products.

_____ 5. General Motors acquired 10% of its dealers

_____ 6. Favorable when an organizations present suppliers are expensive, or unreliable or incapable of meeting the firms needs for raw materials

_____ 7. Favorable when an organizations present distributors are expensive, unreliable or incapable of meeting the firms distribution needs _____ 8. Favorable when the present distributors or retailers have high profit margins

For Items 9-15. Identify the diversification strategies described: a. Horizontal diversification b. Concentric diversification c. Conglomerate Diversification d. None of the above

_____ 9. adding new but related products or service.

_____ 10. adding new, unrelated products or service

_____ 11. adding new, unrelated products or services for present customers.

_____ 12. PLDT invested in and eventually controlled Smart Communications

_____ 13. Amazon, the huge online bookstore entered into toys and customer electronics business.

_____ 14. Rebisco Group Corporation entered into banking as majority shareholder of Asia United Bank

_____ 15. Avons move to offer food supplements, clothing and accessories through its sales force Items 16-20. Identify strategy described/exemplified below: a. Merger b. Joint Venture c. Acquisition d. Takeover

_____ 16. A strategy through which two firms agree to integrate their operations on a relatively coequal basis.

_____ 17. is a special type of an acquisition strategy wherein the target firm does not solicit the acquiring firms bid.

_____ 18. occurs when two or more companies form a temporary partnership for the purpose of capitalizing on some opportunity

_____ 19. Jollibee Foods Corp. bought 70 percent of Mang Inasal Phils. Inc. for P3 billion.

_____ 20. Equitable PCI Bank used to be competing Equitable Bank and PCI Bank. For Items 21-24: Identify the defensive strategy described: a. Retrenchment b. Divestiture c. Liquidation

_____ 21. Selling of all of a companys assets, in parts, for their tangible worth

_____ 22. Selling a division or part of an organization to raise capital for further strategic investments.

_____ 23. closing marginal businesses

_____ 24. reducing the number of employees

For Items 25-30: Identify the business level strategies described/exemplified below: a. Cost leadership strategy b. Differentiation Strategy c. Focus Strategy d. none of the above

_____ 25. Gaining competitive advantage based on low cost

_____ 26. Toyota produces a premium luxury brand known as Lexus

_____ 27. Based on appeal to a narrow market segment within an industry

_____ 28. Creating differences in the firms product or service offering by creating something that is perceived industry wide as unique and valued by customers

_____ 29. Firms attain above-average performance when their price premiums exceed the extra cost incurred in being unique.

_____ 30. Can be achieve through building efficient facilities and tightly controlling production costs and overhead

CBM 102: Strategic Management Module Test IV

I. Modified True or False. On the blank before each number, write TRUE if the statement is correct; if it is FALSE, change the underlined word or group of words to make the statement correct.

_____ 1. Corporate governance has both strategic and environmental implication.

_____ 2. Corporate governance is commonly expressed in written policies that specifically restrict or direct how people can act to accomplish established goals.

_____ 3. Procedures are the specific methods employed to express policies in action in day-to-day operations of the organization.

_____ 4. Corporate governance is based on the idea that giving employees skills, resources, authority, opportunity, motivation, as well holding them responsible and accountable for outcomes of their actions, will contribute to their competence and satisfaction.

_____ 5. The formulation aspect covers the set of activities needed to keep an update of the level of implementation and execution of the strategy.

_____ 6. Strategic audit acts as a diagnostic tool to pinpoint corporate wide problem areas and to highlight organizational strengths and weaknesses.

_____ 7. Ratio analysis determines trends and exposes strengths or weaknesses of a firm.

_____ 8. The income statement shows the firms assets, liabilities and net worth on stated date

_____ 9. Leverage ratios refer to how well the business manages its routine activities particularly in terms of inventory management, asset turnover and accounts receivables.

_____ 10. Activity ratios show monetary returns out of the infusion and use of capital or investments.

II. Modified Multiple Choice. For Items 1-8: Identify the categories in which each of the following ratios are used. a. Liquidity Ratio b. Profitability Ratio c. Activity Ratio d. Leverage Ratio

_____ 1. Current Ratio

_____ 2. net profit margin

_____ 3. Asset turnover

_____ 4. Acid Test Ratio

_____ 5. return on owners equity

_____ 6. Debt to asset ratio

_____ 7. Earnings per share

_____ 8. Inventory turnover

_____ 9. Times interest earned

_____ 10. Debt to equity ratio

For Items 11-15: Identify the area of balance scorecard described below: a. Financial perspective b. Internal perspective c. customer perspective d. innovation and growth

_____ 11. measure corporate image

_____ 12. This aspect address the matter of how should the firm appear in the view of shareholders and investors

_____ 13. It concerns what business process a firm must excel in.

_____ 14. Addresses the challenge of the need to continue to improve and create value.

_____ 15. This aspect deals with the concern on how the firm should be viewed by its customers

For Items 16-20: Identify the strategic management process that is characterized by the following: a. Strategic formulation b. Strategic implementation c. all of the above d. none of the above

_____ 16. requires good intuitive & analytical skills

_____ 17. focuses on efficiency

_____ 18. primarily an operational process

_____ 19. focuses on effectiveness

_____ 20. requires special motivational & leadership skills