MCQs with Answers & Explanations
1. Match the items of List – I with List – II and select the correct code:
| List – I | List – II |
|---|---|
| (a) Mission | (i) Aspiration expressed as strategic intent |
| (b) Vision | (ii) Activities needed to accomplish plan |
| (c) Objectives | (iii) Accomplishing results within a time-frame |
| (d) Programmes | (iv) Reason for existence |
Options:
A. (iv) (iii) (i) (ii)
B. (iv) (i) (iii) (ii)
C. (iii) (ii) (iv) (i)
D. (i) (iii) (iv) (ii)
Correct Answer: B
Explanation: Mission = purpose; Vision = aspiration; Objectives = measurable targets; Programmes = action plans.
2. The willingness to reject unfamiliar or negative information is known as:
A. Vision Myopia
B. Strategic Myopia
C. Marketing Myopia
D. Environmental Myopia
Correct Answer: B
Explanation: Strategic myopia means narrow focus restricting strategic decision making.*
3. Which matrix portrays differences among divisions relative to market share and industry growth?
A. SPACE Matrix
B. BCG Matrix
C. IE Matrix
D. SWOT Matrix
Correct Answer: B
4. According to Porter, the basis for competitive advantage includes:
A. Growing, building, sustaining
B. Integration, diversification and acquisition
C. Cost leadership, differentiation and focus
D. Positioning, capturing and changing
Correct Answer: C
5. Industry Life Cycle theory – identify the correct set of statements:
(a) Industry stage does not influence competitive rivalry
(b) In maturing industries standards and expectations change
(c) Price competition increases in mature stage
(d) Only efficient firms survive decline stage
A. Only (c) and (d)
B. (a), (c) and (d)
C. (b) and (c) only
D. (b), (c) and (d)
Correct Answer: D
6. Statement (I): VED analysis is meant for project maximization.
Statement (II): Network analysis is independent of planning process.
A. Both (I) and (II) are correct
B. Both (I) and (II) are incorrect
C. (I) correct but (II) incorrect
D. (II) correct but (I) incorrect
Correct Answer: B
Explanation: VED controls stores based on criticality, not project maximization; network analysis requires planning.*
7. A forum which reviews trade policies of all WTO member countries is:
A. TRIPS
B. DSB
C. TPRB
D. General Council
Correct Answer: C — Trade Policy Review Body
8. Which of the following describes ‘Strategic Control’?
A. Evaluating deviation between actual & standards
B. Controlling daily operations
C. Monitoring long-term direction & effectiveness of strategy
D. Monitoring employee performance
Correct Answer: C
9. A stage in turnaround strategy that gives early support to distressed units is called:
A. Recovery Stage
B. Handholding Stage
C. Supporting Stage
D. Rescue Stage
Correct Answer: B
10. The benchmarking tool for logistics performance across nations is:
A. Supply Chain Preparedness Index
B. Logistics Performance Index
C. Supply Chain Productivity Index
D. Logistics Readiness Index
Correct Answer: B
11. Which tool helps strategic evaluation of strengths, weaknesses, opportunities & threats?
A. BCG Matrix
B. SWOT
C. SPACE Matrix
D. GE Matrix
Correct Answer: B
12. The reconstituted Industrial Reconstruction Bank of India in 1997 was renamed as:
A. SIDBI
B. Industrial Investment Bank of India
C. IFCI
D. BIFR
Correct Answer: B
13. Which strategy involves combining two or more firms?
A. Divestment
B. Turnaround
C. Merger
D. Retrenchment
Correct Answer: C
14. SPACE Matrix is used to evaluate:
A. Risk-return relationship
B. Market growth vs Share
C. Internal-external competitive position
D. Product positioning only
Correct Answer: C
15. Strategy that seeks survival rather than growth is called:
A. Stability strategy
B. Retrenchment strategy
C. Diversification strategy
D. Merger strategy
Correct Answer: B