Question 1

In the SWOT analysis, which of the following is an example of an external threat?

Accepted Answer

c. A sudden economic recession

Explanation: An economic recession is an external threat beyond the companys control.

Question 2

A company pursuing a blue ocean strategy aims to:

Accepted Answer

c. Create uncontested market space with unique offerings

Explanation: A blue ocean strategy seeks to create new, uncontested markets.

Question 3

Which type of diversification involves expanding into businesses that are entirely unrelated to the current business?

Accepted Answer

d. Conglomerate diversification

Explanation: Conglomerate diversification involves entering unrelated industries.

Question 4

The Ansoff Matrix is used to:

Accepted Answer

c. Explore market expansion options

Explanation: The Ansoff Matrix helps analyse options for market expansion, including market penetration, market development, product development, and diversification.

Question 5

Which strategic approach involves building partnerships or alliances with other companies to achieve mutual benefits?

Accepted Answer

b. Joint ventures

Explanation: Joint ventures involve collaboration between two or more companies to achieve common goals.

Question 6

Which type of strategy focuses on offering products or services that are unique and distinct from competitors?

Accepted Answer

c. Differentiation

Explanation: Differentiation strategy involves offering unique products or services to stand out in the market.

Question 7

Which strategic planning tool assesses a companys performance from four different perspectives: financial, customer, internal processes, and learning and growth?

Accepted Answer

c. Balanced Scorecard

Explanation: The Balanced Scorecard measures performance from multiple dimensions.

Question 8

What is a strategic objective related to the Growth perspective in the Balanced Scorecard?

Accepted Answer

b. Expanding market share in new regions

Explanation: Growth perspective objectives focus on expanding the business.

Question 9

What is the primary purpose of a vision statement in strategic planning?

Accepted Answer

b. To describe the companys core values and purpose

Explanation: A vision statement defines the companys long-term values and purpose.

Question 10

In the context of strategic management, what is strategic drift?

Accepted Answer

c. The unintentional deviation from a companys intended strategy

Explanation: Strategic drift occurs when a company unintentionally deviates from its intended strategy over time.

Question 11

What is the primary focus of the Competitive Forces Model by Michael Porter?

Accepted Answer

c. Identifying competitive pressures within an industry

Explanation: The Competitive Forces Model focuses on industry competitiveness.

Question 12

What is the primary focus of strategic risk management?

Accepted Answer

a. Identifying risks and minimising their impact on strategy

Explanation: Strategic risk management focuses on mitigating risks that can affect the success of strategic initiatives.

Question 13

The Ansoff Matrixs market penetration strategy involves:

Accepted Answer

c. Increasing sales of existing products in existing markets

Explanation: Market penetration strategy aims to grow within current markets.

Question 14

Which strategic planning tool assesses a companys strengths, weaknesses, opportunities, and threats in a 2x2 matrix?

Accepted Answer

c. SWOT analysis

Explanation: SWOT analysis is typically represented in a 2x2 matrix.

Question 15

In the context of strategic planning, what does SMART stand for when setting objectives?

Accepted Answer

b. Specific, Measurable, Achievable, Relevant, Time-bound

Explanation: SMART objectives are specific, measurable, achievable, relevant, and time-bound.

Question 16

Which of the following is a limitation of the SWOT analysis?

Accepted Answer

c. It can be time-consuming and costly.

Explanation: SWOT analysis can be resource-intensive and time-consuming to conduct.

Question 17

The growth-share matrix in the BCG Matrix is used to categorise business units based on their:

Accepted Answer

b. Sales volume and market share

Explanation: The BCG Matrix categorises business units based on market share and market growth.

Question 18

Which of the following is a component of the external business environment in PESTEL analysis?

Accepted Answer

b. Economic factors

Explanation: Economic factors are a crucial part of the external business environment assessed in PESTEL analysis.

Question 19

What is the primary role of a mission statement in strategic planning?

Accepted Answer

b. To outline the companys core values and purpose

Explanation: A mission statement defines the companys values and purpose.

Question 20

Which of the following is a strategic control mechanism used to ensure that a companys strategies are being implemented effectively?

Accepted Answer

b. Balanced Scorecard

Explanation: The Balanced Scorecard is a strategic control tool.

Strategic management and business policy — Question Paper

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