Strategic Management

5568 Words Mar 31st, 2013 23 Pages
Strategic Management

Section A: Objective Type (30 marks)
•This section consists of multiple choice questions & Short notes type questions.
•Answer all the questions.
•Part one questions carry 1 mark each & Part two questions carry 5 marks each.

Part One:
Multiple choices:

1. A plan of action designed to achieve a particular goal is:
b. Strategy

2. It is important to develop mission statement for:
a. Allocating organizational resources

3. The five forces model was developed by:
c. Michael E. Porter

4. How many elements are involve in developing in an organizational strategy:
a. Six

5. The three important steps in SWOT analysis are:
b. Opportunities, Threats, Strengths

6. GE matrix consists of how
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4. Future- oriented: Strategic management encompasses forecasts, what is anticipated by the managers. In such decisions, emphasis is placed on the development of projections that will enable the firm to select the most promising strategic options. In the turbulent environment, a firm will succeed only if it takes a proactive stance towards change.

5. Multi-functional or Multi-business consequences: Strategic management has complex implications for most areas of the firm. They impact various strategic business units especially in areas relating to customer-mix, competitive focus, resources that result from these decisions.

6. Non-self-generative decision: While strategic management may involve making decisions relatively infrequently, the organization must have the preparedness to make strategic decision at any point of time. That is why Ansoff calls them “non-self-generative decision.”

2. Critically analyze the concept of BCG Matrix.

Answer:
Boston Consulting Group (BCG) Matrix: is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA. It is the most renowned corporate portfolio analysis tool. It provides a graphic representation for an organization to examine different businesses in its portfolio on the basis of their related market share and industry growth rates. It is a two dimensional analysis on management of SBU’s
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