1.
The competencies or skills that a firm employs to transform inputs into outputs are
organizational capabilities.
2. A business model is manager’ conception of how the set of strategies his/her organization
pursues should mesh together into a congruent whole, thus enabling the company to gain a
competitive advantage and achieve superior profitability and profit growth.
3. A marketing department that promises delivery quicker than the production
department's ability to produce is an example of a lack of understanding of the
interrelationships among functional areas and firm strategies.
4. Generic business level strategies for achieving competitive advantage can be following
set: cost leadership, differentiation & focus.
5. The following elements describe the ‘Industry Competitors’ Degree of Rivalry’ as in the
Porter’s 5 Forces Model: Number of competitors, Industry growth, asset intensity, product
differentiation & exit barriers.
6. An industry sector can be described as: A group of companies offering products & services
that are close substitutes for each other that satisfy the same basic custom needs.
7. 7S are- Structure, Systems, Style, Staff, Skills, Strategy, Shared Values
8. Functional strategies for achieving competitive advantage can be the following set-
efficiency, quality, innovation, customer responsiveness.
9. A company is said to have ‘Competitive Advantage’ over its rivals when-
i. Its profitability is greater than the average profitability and profit growth of other
companies competing for the same set of customers.
ii. It maintains above average & superior profitability & profit growth over years.
(Either of 2)
10. The hierarchy of business policy from the top is as under: Major, Secondary, Functional,
Procedure & SOP & rules for day to day work.
11. Internal analysis involves gathering & analyzing the information about all areas of firm
except- competitors
12. The three basic levels in the hierarchy of strategy in an organization are- corporate level,
functional level & business level.
13. Functional Level Strategies are directed towards- improving the effectiveness of
operations within a company.
14. Strategy formulation essentially involve these steps in the same order- Mission, Vision,
Objectives & Strategy
15. Strategy can be defined as- Determination of basic long-term goals and objectives….
16. Functional strategies for achieving competitive advantage can be the following set-
efficiency, quality, innovation & customer responsiveness.
17. A mission statement usually incorporates the following 3 elements- What customer need is
being satisfied? And How value is created and delivered to the customers satisfying their
needs?
18. In the Porter’s 5 Forces Model, the term ‘Substitutes’ or ‘Alternative Products’ refer to
the following aspects- Functional similarity, price/performance trend & product identity
19. A ‘Strategic Shift’ in the business policy of the organization essentially means-
20. Role of Board of Directors in the strategic management of an organization can be
categorized into the following-
21. The Values of a company state as to how…
22. Select one:
23. a. Managers and employees evaluate their business as part of the industry and
what kind of company they should build to help the company achieve its mission
24. b. Customers perceive the attitude of the employees of the company which the
managers and employees of the company use for achieving their objectives
25. c. Market evaluates the financial health of the company which helps the managers
and employees of the company achieve their objectives
26. d. Managers and employees should conduct themselves, how they should do
business and what kind of company they should build to help the company achieve
its mission
27. Strategic Management can be looked upon as a
28. Determinants of ‘Shareholder Value’ are the following
29. The four components of Strategy are…
30. Defining a ‘Business’ essentially answers the following questions:-
