Taxmann's Financial & Strategic Management (FSM/FM & SM) | CRACKER

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Chapter-wise Marks Distribution I-5 Chapter-wise Comparison with Study Material I-7 PART A FINANCIAL MANAGEMENT Chapter 1 NATURE & SCOPE OF FINANCIAL MANAGEMENT 1.3 Chapter 2 WORKING CAPITAL MANAGEMENT 2.1 Chapter 3 RECEIVABLE MANAGEMENT 3.1 Chapter 4 INVENTORY MANAGEMENT 4.1 Chapter 5 MANAGEMENT OF CASH & MARKETABLE SECURITIES 5.1 Chapter 6 LEVERAGES 6.1 Chapter 7 CAPITAL STRUCTURE DECISIONS 7.1 Chapter 8 COST OF CAPITAL 8.1 PAGE Contents I-9
PAGE I-10 CONTENTS Chapter 9 CAPITAL BUDGETING - BASIC 9.1 Chapter 10 DIVIDEND POLICY 10.1 Chapter 11 SECURITY ANALYSIS & PORTFOLIO MANAGEMENT 11.1 Chapter 12 PROJECT FINANCE & TYPES OF FINANCING 12.1
B STRATEGIC MANAGEMENT Chapter 13 INTRODUCTION TO MANAGEMENT 13.3 Chapter 14 INTRODUCTION TO STRATEGIC MANAGEMENT 14.1 Chapter 15 BUSINESS POLICY & FORMULATION OF FUNCTIONAL STRATEGY 15.1 Chapter 16 STRATEGIC ANALYSIS & PLANNING 16.1 Chapter 17 STRATEGIC IMPLEMENTATION & CONTROL 17.1 Chapter 18 ANALYZING STRATEGIC EDGE 18.1 Solved Paper : June 2023 (Suggested Answers) P.1
PART

16

CHAPTER

Strategic Analysis & Planning

MCQs ON THEORY

1. _________ refers to the process of conducting research on a company and its operating environment to formulate a strategy.

(A) Strategic management

(B) Strategic analysis

(C) Sensitive analysis

(D) Simulation analysis

2. Strategic analysis involves:

(A) Identifying and evaluating data relevant to the company’s strategy.

(B) De ning the internal and external environments to be analyzed.

(C) Using several analytic methods such as Porter’s ve forces analysis, SWOT analysis etc.

(D) All of the above

3. ADL matrix has been propounded by:

(A) Arthur D. Lowey

(B) Arthur D. Little

(C) Arthur D. Levin

(D) Arthur D. Louise

4. Purpose of a strategic analysis is to -

(A) Analyze an organization’s external and internal environment.

(B) Assess current strategies.

(C) Generate and evaluate the most successful strategic alternatives.

(D) All of the above

5. Arrange the Strategic Analysis Process in proper sequence:

I. Formulate plans.

II. Recommend and implement the most viable strategy.

III. Determine the effectiveness of existing strategies.

IV. Perform an environmental analysis of current strategies. Select the correct answer from the options given below:

(A) IV, II, I, III

(B) IV, III, I, II

(C) II, III, I, IV

(D) IV, I, III, II

6. _____ is the process we use to gain understanding and insight into our present situation.

(A) Situational analysis

(B) Sensitive analysis

(C) Simulation analysis

(D) All of the above

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7. Which of the following is NOT ‘internal environment considerations’?

(A) Operational inef ciencies

(B) Changes in consumer taste

(C) Employee morale

(D) Constraints from nancial issues

8. Which of the following is NOT ‘external environment considerations’?

(A) Political trends

(B) Economic shifts

(C) Operational inef ciencies

(D) Changes in consumer taste

9. Strategists must ask themselves question such as:

(A) Is our strategy failing or succeeding?

(B) Will we meet our stated goals?

(C) Does our strategy align with our vision, mission, and values

(D) All of the above

10. Potential strategic alternatives include -

(A) Changes in capital structure

(B) Changes in supply chain management

(C) Changes in business process

(D) All of the above

11. ‘Build,’ ‘Hold,’ ‘Harvest,’ and ‘Divest’ are the strategies pursued in:

(A) Boston Consulting Group Growth Share Matrix

(B) Value chain Analysis

(C) Managerial Grid Matrix

(D) Ansoff’s Product Matrix Growth Matrix

12. A situation analysis should be conducted -

(A) After developing a strategy.

(B) At the beginning of any program or project

(C) Before company is incorporated

(D) At a later stage in quality management

13. Which of the following is NOT element of Situation Analysis?

(A) Product Situation

(B) Competitive Situation

(C) Distribution Situation

(D) Pro t Situation

14. The low growth, low share businesses in BCG matrix are:

(A) Cows

(B) Dogs

(C) Cats

(D) Question Marks

15. Identi cation of opportunities and avoiding or mitigating losses is called -

(A) Risk management

(B) Stress management

(C) Change management

(D) Co-ordination

16. Environment scanning applies to -

1. External scanning processes

2. Motivational scanning processes

3. Internal scanning processes

4. Lead scanning processes

Select the correct answer from the options given below:

(A) None of the given

(B) Except 4 all other

(C) Both 1 and 3

(D) 1 only

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17. In SWOT analysis the ‘O’ stands for -

(A) Objections

(B) Openings

(C) Opportunities

(D) Obstacles

18. SWOT analysis Originated by -

(A) Heinz Weirich

(B) United States Navy

(C) Albert S Humphrey

(D) James E. Kelley

19. An organization that has a low relative market share position and competes in a slow growth industry is referred to as a _______

(A) Dog

(B) Question Mark

(C) Star

(D) Cash Cows

20. Which of the following SWOT elements are internal factors for a business?

(A) Strengths and Weaknesses

(B) Opportunities and Threats

(C) Strengths and Opportunities

(D) Weaknesses and Threats

21. ________ generally relate to external factors.

(A) Strengths and weaknesses

(B) Opportunities and threats

(C) Weaknesses and Threats

(D) Strengths and Opportunities

22. Which section of the SWOT Matrix involves matching internal strengths with external opportunities?

(A) The WT cell

(B) The SW cell

(C) The SO cell

(D) The ST cell

23. The process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public is known as -

(A) Stress management

(B) Crisis management

(C) TQM

(D) None of the above

24. Which of the following is element of Situation Analysis?

(A) Environmental Factors

(B) Distribution Situation

(C) Both (A) and (B)

(D) Neither (A) nor (B)

25. Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis?

(A) Organizational strengths may not lead to competitive advantage

(B) SWOT gives a one-shot view of a moving target

(C) SWOT’s focus on the external environment is too broad and integrative

(D) SWOT overemphasizes a single dimension of strategy

26. Active scanning involves the ______ of continuous resources and, from time to time, supplementing them with existing resources as needed.

(A) Conscious selection

(B) Subconscious selection

(C) Analysis of threats to the business

(D) None of the above

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27. Which of the following executes strategy into everyday executions tactics?

(A) Goal setting

(B) Technical planning

(C) Operational planning

(D) None of the above

28. Which of the following refers to a situation where a product generates high pro ts which can then be invested in developing new products?

(A) Dogs

(B) Cash cows

(C) Question marks

(D) Growth stage

29. A business giant in hotel industry decides to enter into dairy business. In the context of Ansoff’s Product-Market Growth Matrix, identify, the type of growth strategies followed for the given case.

(A) Market Development

(B) Product Development

(C) Diversi cation

(D) Market Penetration

30. As per ADL Matrix, company’s competitive position is determined by -

(A) Cash Cows & Growth Stage

(B) Market Improvement & Strategic Actions

(C) Strategic Actions & Competitor’s Strategies

(D) Strong & Stable Strategies

31. What does Dogs symbolize in BCG matrix?

(A) Invest

(B) Harvest

(C) Build

(D) Divest

32. The ADL Matrix or Arthur D Little Strategic Condition Matrix is a Portfolio Management technique that is based on the -

(A) Market Growth Strategy (MGS)

(B) Corporate Portfolio Investment (CPI)

(C) Product Life Cycle (PLC)

(D) Strategic Business Units (SBU)

33. One of India’s premier utility vehicles manufacturing company ventures to foray into foreign markets. In the context of Ansoff’s Product-Market Growth Matrix, identify, the type of growth strategies followed for the given case.

(A) Market Development

(B) Product Development

(C) Market Penetration

(D) Market improvement

34. What is shown in the Arthur D. Little (ADL) Matrix?

(A) It classifies strategy options according to market coverage and competitive advantage dimensions.

(B) This 5 × 4 model offers strategy prescriptions according to the competitive position of an organization and stage of maturity of its market.

(C) It relates an organization’s competitive position and industry attractiveness to determine appropriate strategies.

(D) It shows the relative market share and market growth rates of the organization’s portfolio of SBUs.

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35. There are four categories of industry maturity as per ADL Matrix:

(A) Strong, favourable, mature and decline

(B) Strong, favourable, tenable and weak

(C) Embryonic, growth, mature and aging

(D) Embryonic, growth, tenable and weak

36. If Industry Attractiveness is ‘High’ and Business Unit Strength is ‘Medium’, then which of the following strategy should be followed as per GE Matrix -

(A) Invest/grow

(B) Hold/selective

(C) Divest/harvest

(D) Invest/selective

37. A renowned auto manufacturing company launches ungeared scooters in the market.

In the context of Ansoff’s Product-Market Growth Matrix, identify, the type of growth strategies followed for the given case.

(A) Market Development

(B) Product Development

(C) Diversi cation

(D) Market Penetration

38. Four generic strategies as discussed by Glueck and Jauch are -

(A) Stability Strategies, Expansion Strategies, Retrenchment Strategy & Combination Strategies

(B) Growth Strategies, Stable Strategies, Retrenchment Strategy & Combination Strategies

(C) Stability Strategies, Expansion Strategies, Decline Strategy & Divest Strategies

(D) Corporate Strategies, Business Strategies, Operational Strategies & Functional Strategies

39. If the organization chooses to transform itself into a leaner structure and focuses on ways and means to reverse the process of decline, it adopts a -

(A) Turnaround Strategy

(B) Liquidation Strategy

(C) Divestment Strategy

(D) Differentiation Strategy

40. ________ is implemented by redefining the business by adding the scope of business substantially increasing the efforts of the current business.

(A) Expansion Strategy

(B) Differentiation Strategy

(C) Retrenchment Strategy

(D) Cost Leadership Strategy

41. Dell Computer has decided to rely exclusively on direct marketing. This is example of -

(A) Differentiation Strategy

(B) Focus Strategy

(C) Cost Leadership Strategy

(D) Diversi cation Strategy

42. ‘NDTV’, a TV Channel has identi ed a pro table audience niche in the electronic media. It has further exploited that niche through the addition of new channels like ‘NDTV’ Pro t and ‘Image’. According to Porter, this is example of -

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(A) Differentiation Strategy

(B) Focus Strategy

(C) Cost Leadership Strategy

(D) Diversi cation Strategy

43. In BCG matrix, what is the label of the horizontal axis?

(A) Relative Market share

(B) Business Strength

(C) Industry Growth Rate

(D) Market Growth Rate

44. If Industry Attractiveness is ‘Low’ and Business Unit Strength is ‘High’, then which of the following strategy should be followed as per GE Matrix -

(A) Hold/selective

(B) Divest/harvest

(C) Invest/selective

(D) Invest/grow

45. Car manufacturers ‘Maruti’ and ‘Tata Motors’ work on reducing their costs to sell their cars in popular segment at attractive prices. This is example of -

(A) Growth Strategy

(B) Turnaround Strategy

(C) Cost Leadership Strategy

(D) Unique Strategy

46. Another name for GE/McKinsey Matrix is -

(A) Business Making Matrix

(B) Business Planning Matrix

(C) Business Portfolio Matrix

(D) Business Grow Matrix

47. A business organization can redefine its business by divesting a major product line or market. This is supported by -

(A) Retrenchment Strategy

(B) Combination Strategy

(C) Growth Strategy

(D) Incline Strategy

48. Statement I: Stability strategy is not a ‘do-nothing’ strategy.

Statement II:

Third step in BCG Matrix is to calculate relative market share. Select the correct answer from options given below:

(A) Statement I is true and II is false

(B) Statement II is true and I is false

(C) Both Statements are true

(D) Both Statements are false

49. In BCG Matrix, what is the label of the Vertical axis?

(A) Relative Market share

(B) Business Strength

(C) National Growth Rate

(D) Market Growth Rate

50. TOWS Matrix is an analytical tool that helps build over your _______ and make the best use of available _______ while also minimizing the _______

(A) Threats; Opportunities; Strengths

(B) Strengths; Opportunities; Threats

(C) Opportunities; Strengths; Threats

(D) Strengths; Threats; Opportunities

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PAST EXAMINATION MCQs

51. Dec. 2019: A Strategic Business Unit (SBU) is defined as a division of an organization:

(A) That help in the marketing operations.

(B) That enable managers to have better control over the resources.

(C) That help in the choice of technology.

(D) That help in the allocation of scarce resources.

52. Dec. 2019: Which “S” is not part of Mc Kinseys 7-S Framework?

(A) Shared value

(B) System

(C) Staff

(D) Synergy

53. Dec. 2019: Under the BCG growthshare matrix, low share, high-growth businesses or products are called:

(A) Stars

(B) Cash cows

(C) Question marks

(D) Dogs

54. Dec. 2019: Ansoff’s matrix is useful for:

(A) Joining a business’s marketing strategy with general strategic direction.

(B) Establishing an editorial calendar for staff to follow.

(C) Understanding buyer personas and buyer behaviours.

(D) Hiring new staff and training them on marketing tactics.

55. Dec. 2019: Which of the following is a force in the Porter’s five forces model of industry attractiveness?

(A) Bargaining power of suppliers

(B) Competitive market

(C) Low cost for customers

(D) Opportunity for substitutes

56. Dec. 2019: What does Cash Cow symbolize in BCG matrix?

(A) Volatility

(B) Unattractive Investment

(C) Pro tability

(D) Cash Drain

57. Dec. 2019: What are focus strategies?

(A) When a company focuses on supplying differential products which appeal to different market segments.

(B) Where a company chooses to concentrate on only one market segment or a limited range of segments.

(C) Where a company focuses on achieving lower costs than its rivals so as to compete across a broad range of market segments.

(D) When a company conducts market research through focus groups to determine how their strategy should be shaped.

58. Dec. 2019: The BCG matrix is based on:

(A) Industry attractiveness and business strength

(B) Industry growth rate and business strength

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(C) Industry attractiveness and relative market share

(D) Industry growth and market share

59. Dec. 2019: Which is the term used in Ansoff’s matrix for increasing market share with existing products in existing markets?

(A) Market Development

(B) Market Penetration

(C) Product Development

(D) Diversi cation

60. Dec. 2019: Successful differentiation strategy allows the company to:

(A) Gain buyer loyalty to its brands

(B) Charge too high a price premium

(C) Depend only on intrinsic product attributes

(D) Have product quality that exceeds buyers’ needs

61. Dec. 2019: Typically profits are highest in which stage of industry life-cycle?

(A) Introduction

(B) Growth

(C) Maturity

(D) Decline

62. Dec. 2019: Blue Ocean Strategy is concerned with:

(A) Moving into new markets with new products.

(B) Creating new market places where there is no competition.

(C) Developments of products and markets in order to ensure survival.

(D) Making the product unique in terms of attributes.

63. Dec. 2019: The product-market matrix comprising strategies of penetration, market development, product development and diversi-fication was first formulated by:

(A) Ansoff

(B) Drucker

(C) Porter

(D) Prahlad

64. Dec. 2019: Directional Policy Matrix is same as:

(A) the BCG Model

(B) the 9-cell GE Matrix

(C) the Life-cycle Portfolio analysis

(D) the 3 × 3 competitive positioning matrix

65. Dec. 2019: Which section of the SWOT Matrix involves matching internal strengths with external opportunities?

(A) The WT cell

(B) The SW cell

(C) The SO cell

(D) The ST cell

66. Dec. 2019: The emphasis on product design is very high, the intensity of competition is low, and the market growth rate is low in the ................... stage of the industry life-cycle.

(A) Maturity

(B) Introduction

(C) Growth

(D) Decline

67. Dec. 2019: The most probable time to pursue a harvest strategy is in a situation of ...............

(A) High growth

(B) Decline in the market life-cycle

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(C) Strong competitive advantage

(D) Mergers and acquisitions

68. Dec. 2019: Conglomerate diversification is another name for which of the following?

(A) Related diversi cation

(B) Unrelated diversi cation

(C) Portfolio diversi cation

(D) Acquisition diversi cation

69. Dec. 2019: When two organizations combine to increase their strengths and financial gains, it is called:

(A) Hostile takeover

(B) Liquidation

(C) Merger

(D) Acquisition

70. Dec. 2019: A firm successfully implementing a differentiation strategy would expect:

(A) Customers to be sensitive to price increases.

(B) To charge premium prices.

(C) Customers to perceive the product as standard.

(D) To automatically have high levels of power over suppliers.

71. Dec. 2019: The concept of ‘Core Competence’ has been advocated by:

(A) Gary Hamel and Peter Drucker

(B) C.K. Prahlad and Gary Hamel

(C) C.K. Prahlad and Michael Porter

(D) C.K. Prahlad and Peter Drucker

72. Dec. 2019: Which of the following can be said to be the strategy followed in TOWS approach?

(A) Defensive Strategy

(B) Offensive Strategy

(C) Attack Strategy

(D) Functional Strategy

73. Dec. 2019: Porter’s Generic strategies include:

(A) Cost Differentiation, Product Focus, Leadership

(B) Price Leadership, Cost Focus, Product Differentiation

(C) Price Differentiation, Leadership, Cost Focus

(D) Cost Leadership, Differentiation and Focus

74. Dec. 2020:

Statement (I) : Stars operate in low growth industries and maintain high market share.

Statement (II) : “Dogs” have weak market share in high-growth market.

Codes:

(A) Statement (I) is correct but (II) is incorrect

(B) Statement (II) is correct but (I) is incorrect

(C) Both the statements (I) and (II) are correct

(D) Both the statements (I) and (II) are incorrect

75. Dec. 2020: Which of the following is the Strategy of TOWS?

(A) Competitive Strategy

(B) Corporate Strategy

(C) Business Strategy

(D) Functional Strategy

76. Dec. 2020: The two internal elements of SWOT analysis are:

(A) Weaknesses and threats

(B) Opportunities and threats

(C) Strengths and weaknesses

(D) Strengths and threats

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77. Dec. 2020: In SWOT analysis, situations in which firms could convert weaknesses into strengths and threats into opportunities, known as:

(A) Conversion strategies

(B) Strategic leverage

(C) Strategic policy

(D) Vulnerability

78. Dec. 2020: Which can be termed as disadvantage of PERT?

(A) Compels managers to plan their projects critically in considerable detail from beginning to the end and analyze all factors affecting the progress of the plan.

(B) Provides management a tool for forecasting the impact of schedule changes. The likely probable spots are located early enough to take preventive measures or corrective actions.

(C) A considerable amount of data may be presented in a precise manner.

(D) The costs may be higher than the conventional methods of planning and as it needs a high degree of planning skill and minute details resulting in rise in time and manpower resources.

79. Dec. 2020: What is the term used in Ansoff’s matrix for increasing market share with existing products in new markets?

(A) Market development

(B) Market penetration

(C) Product development

(D) Diversi cation

80. Dec. 2020: Restructuring and downsizing becomes necessary due to the following factors except:

(A) Unforeseen changes in business environment

(B) New technological development

(C) Increase in demand

(D) Excess production capacity

81. Dec. 2020: Improving quality through small, incremental improvements is a characteristic of what type of quality management system?

(A) Just-in-time

(B) Six Sigma

(C) Total Quality Management

(D) Kaizen

82. June 2021: What strategy shall be used for the products classified as Dogs in BCG matrix?

(A) New customer acquisition

(B) Divest

(C) Sales promotion

(D) Invest

83. June 2021: Strategies that minimize weakness and avoid threats are represented by which cell of the TOWS Matrix?

(A) The WT cell

(B) The WO cell

(C) The SO cell

(D) The ST cell

84. June 2021: An organization that has a high market share position and competes in a low-growth industry is referred to as a .................

(A) Dog

(B) Question Mark

(C) Star

(D) Cash Cows

85. June 2021: ‘Build,’ ‘Hold,’ Harvest’ and ‘Divest’ are the strategies explained by:

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(A) Ansoff’s Product Matrix Growth

(B) ADL matrix

(C) GE McKinsey Matrix

(D) BCG Matrix

86. June 2021: The SWOT/TOWS analysis is a very simple yet valuable technique which aids in identifying opportunities and threats from an ............. environment, and analyzing its .................... strengths and weakness.

(A) external; own

(B) own; own

(C) external; external

(D) own; external

87. June 2021: In long run, when the growth rate slows down stars become:

(A) Question Marks

(B) Moon

(C) Dogs

(D) Cash Cows

88. June 2021: GE Nine-cell Matrix is based on:

(A) Market growth rate and relative market share

(B) Market growth rate and business strength

(C) Market attractiveness and relative market share

(D) Market attractiveness and business strength

89. June 2021: Which one of the following is NOT a level of diversification prescribed in Ansoff’s matrix?

(A) Diversi cation into related markets.

(B) Conglomerate Diversification with new product.

(C) Diversification into unrelated markets using existing resources.

(D) Diversification into unrelated markets using new resources.

90. June 2021: According to Porter’s generic strategy model, Mercedes-Benz C-Class could sell its cars as most expensive ones, is an example of:

(A) Cost Leadership Strategy

(B) Differentiation Strategy

(C) Focus Strategy

(D) Combination Strategies

91. June 2021: In Porter’s Generic Strategies model, a focus strategy includes:

(A) Selling a high range of products

(B) Selling products that require less cost to produce

(C) Selling to premium customers

(D) Selling to a niche market

92. June 2021: Which of the following is not correct related with reference to PERT?

(A) Compels managers to plan their projects critically in considerable detail from beginning to the end and analyze all factors affecting the progress of the plan.

(B) Provides management a tool for forecasting the impact of schedule changes. The likely trouble spots are located early enough to take preventive measures or corrective actions.

(C) A considerable amount of data may be presented in precise manner. The task relationships are presented graphically for easier evaluation.

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(D) The PERT time is based upon 5-way estimate and hence is the most objective time in the light of uncertainties and results in greater degree of accuracy in time forecasting.

93. June 2021: According to MCKINSEYS 7-S framework change in strategy is implemented through change in ....................

(A) Systems

(B) Style

(C) Shared Values

(D) Skills

94. Dec. 2021: Match the following:

(1) Maxi-Maxi (i) Defensive

(2) Maxi-Mini (ii) Competitive

(3) Mini-Maxi (iii) Conservative

(4) Mini-Mini (iv) Aggressive Select correct answer from the options given below –

(A) (1)–(iv), (2)–(iii), (3)–(ii), (4)–(i)

(B) (1)–(iii), (2)–(ii), (3)–(iv), (4) – (i)

(C) (1)–(i), (2)–(iii), (3)–(ii), (4)–(iv)

(D) (1)–(iv), (2)–(i), (3)–(ii),

(4) – (iii)

95. Dec. 2021: Indian Dairy Products market total size is ` 28,000 Crore and XY Co. Ltd., dominating market share of ` 4,800 Crore and AN Co. Ltd., having turnover of ` 428.50 Crore. Find relative market share of AN Co. Ltd.

(A) 8.93%

(B) 17.14%

(C) 1.53%

(D) 15.16%

96. Dec. 2021: The terms, build; hold; harvest; divest are closely linked with strategies of ...................

(A) Ansoff Matrix

(B) BCG Matrix

(C) ADL Matrix

(D) GE Mckinsey Matrix

97. Dec. 2021: Dev Co. Ltd., Strategic Management Team now under the process of designing the strategic plan analysis and one of the plans using the terms SO, WO, ST, WT which is fit with matrix boxes of:

(A) TOWS Analysis

(B) SWOT Analysis

(C) CPM Analysis

(D) PERT Analysis

98. Dec. 2021: The .................. Matrix also helps in brainstorming to bring out great ideas to generating effective strategies and tactics.

(A) SWOT

(B) Defensive

(C) Aggressive

(D) TOWS

99. Dec. 2021: PERT and CPM two complementary statistical techniques utilized in .................

(A) Event based scheduling methods

(B) Activity time-based scheduling methods

(C) Network based scheduling methods

(D) Project modeling methods

100. Dec. 2021: The book ‘‘Competitive Advantages: Creating and Sustaining Superior Performance’’ is authored by:

(A) Michael Samuel

(B) Michael Lawrence

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(C) Michael Arthur

(D) Michael Porter

101. Dec. 2021: Which of the following is not a component of macro environment of external environment?

(A) Suppliers, customers, marketing intermediaries, competitors, public

(B) Economic, political-legal

(C) Demographic, natural, ecological

(D) Global, Socio-cultural

102. June 2022: Which of the following is/are limitation(s) of strategic planning?

(A) It can consume lot of time and money. This can be wasteful if strategic planning turns out to be unsuccessful.

(B) Faulty assumptions about the future, poor assessment of organizational capabilities, poor group dynamics and information overload can lead to the development of poor plans.

(C) Both (A) and (B)

(D) None of the above

103. June 2022: Situation Analysis is an essential component of strategy formulation. Timing of conducting Situation Analysis is very important. It should be conducted during which of the following time horizons?

(A) Before development of a strategy

(B) During development of a strategy

(C) After development of a strategy

(D) All of the above

104. June 2022: Effectiveness of Situation Analysis can be assessed by which of the following approaches?

(A) Through its simplicity and practicality.

(B) Through its clarity for even an outsider to understand.

(C) Through its focus being on key factors that have an impact on business, both internally and externally, and through its identi cation of future goals of the business.

(D) All of the above

105. June 2022: In terms of SWOT analysis of Amazon, which of the following may be considered as threats?

(A) Loss of Pro ts due to low pro t margins

(B) Patent Infringement and other aspects of litigation

(C) Cyber-security issues

(D) All of the above

106. June 2022: Strategies that utilizes strengths to maximize the opportunities are represented by which cell of TOWS matrix?

(A) WT Cell

(B) ST Cell

(C) SO Cell

(D) WO Cell

107. June 2022: Which of the following is a strategy of TOWS concept?

(A) Competitive Strategy

(B) Conducive Strategy

(C) Concrete Strategy

(D) Con ict Strategy

108. June 2022: Limitations of PERT include:

(A) Uncertainty about the estimate of time and resources as it is based on assumptions.

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(B) Costs may be higher than the conventional method of planning.

(C) Not suitable for simple and repetitive processes.

(D) All of the above

109. June 2022: Which of the following is not an important benefit of Mckinsey’s 7-S Framework Model?

(A) It helps to guide organizational change.

(B) It combines rationale and hard elements with emotional and soft elements.

(C) Manager’s act only on selective Ss in parallel as all the Ss may not be interrelated.

(D) All the above are benefits

110. June 2022: Which of the following problems is not encountered in the process of resource allocation?

(A) Power Play

(B) Future Commitments

(C) Resistance to Change

(D) Past Commitments

111. June 2022: BCG Matrix is built around:

(A) Industry Attractiveness and Business Strength

(B) Industry Growth and Market Share

(C) Industry Attractiveness and Relative Market Share

(D) Industry Growth-rate and Business Strength

112. June 2022: Which of the following is not a growth option in Ansoff’s Growth Matrix?

(A) Market Penetration Strategy

(B) Product Development Strategy

(C) Market Development Strategy

(D) None of the above

113. June 2022: The strength of Market Development option of Ansoff’s Growth Matrix is that:

(A) It puts pressure on Marketing and Sales Function.

(B) It puts pressure on Operations Function.

(C) It puts pressure on Supply Function.

(D) It puts pressure on Finance Function.

114. June 2022: Which of the following strategies of Ansoff’s Growth Matrix is referred as Suicide Cell?

(A) Market Penetration

(B) Product Development

(C) Diversi cation

(D) Market Development

115. Dec. 2022: Situation Analysis is conducted:

(A) At the beginning of any program/ project after developing a strategy.

(B) At the beginning of any program/ project before developing a strategy.

(C) At the end of the program after implementing a strategy.

(D) None of the above

116. Dec. 2022: The origin of SWOT analysis is supposed to be rooted in the concept of:

(A) Force Field Analysis of K Levin

(B) Interactive Course in Management of Harvard Business School

(C) Gordon and Howell Report

(D) Five Force Model of Michel Porter

TAXMANN ®

117. Dec. 2022: Which of the following is false in respect of various strategies of TOWS analysis?

(A) Strengths of the rm are used to maximize opportunities

(B) Strengths of the rm are used to minimize threats

(C) Weaknesses of the rm are overcome by using strengths

(D) Weaknesses of the rm are overcome by using opportunities

Answers:

118. Dec. 2022: Which of the following is not a criticism of BCG Matrix?

(A) The market share of the matrix does not guarantee pro tability.

(B) Both axes have been assigned the same value.

(C) The matrix does not show what the competition is doing.

(D) The matrix may not simplify the assessments of facts at all.

HINTS FOR IMPORTANT PRACTICAL MCQs

95. As per BCG Matrix Relative Market Share is calculated as follows:

TAXMANN ® CH. 16 : STRATEGIC ANALYSIS & PLANNING 16.15
1. (B) 2. (D) 3. (B) 4. (D) 5. (B) 6. (A) 7. (B) 8. (C) 9. (D) 10. (D) 11. (A) 12. (B) 13. (D) 14. (B) 15. (A) 16. (C) 17. (C) 18. (C) 19. (A) 20. (A) 21. (B) 22. (C) 23. (B) 24. (C) 25. (C) 26. (A) 27. (C) 28. (B) 29. (C) 30. (C) 31. (D) 32. (C) 33. (A) 34. (B) 35. (C) 36. (A) 37. (B) 38. (A) 39. (A) 40. (A) 41. (A) 42. (B) 43. (A) 44. (A) 45. (C) 46. (B) 47. (A) 48. (B) 49. (D) 50. (B) 51. (B) 52. (A) 53. (C) 54. (A) 55. (A) 56. (C) 57. (B) 58. (C) 59. (B) 60. (A) 61. (C) 62. (B) 63. (A) 64. (B) 65. (C) 66. (B) 67. (B) 68. (B) 69. (C) 70. (B) 71. (B) 72. (A) 73. (D) 74. (D) 75. (A) 76. (C) 77. (A) 78. (D) 79. (A) 80. (C) 81. (D) 82. (B) 83. (A) 84. (D) 85. (D) 86. (A) 87. (D) 88. (D) 89. (B) 90. (B) 91. (D) 92. (D) 93. (A) 94. (B) 95. (A) 96. (B) 97. (A) 98. (D) 99. (C) 100. (D) 101. (A) 102. (C) 103. (A) 104. (D) 105. (D) 106. (C) 107. (A) 108. (D) 109. (D) 110. (B) 111. (B) 112. (D) 113. (A) 114. (C) 115. (B) 116. (A) 117. (D) 118. (D)
= Your rm’s market share (or revenues) = 428.5 × 100 = 8.93% Largest competitor’s market share (or revenues) 4,800

FINANCIAL & STRATEGIC MANAGEMENT (FSM/FM & SM) CRACKER

AUTHOR : N.S. ZAD

PUBLISHER : TAXMANN

DATE OF PUBLICATION : JUNE 2023

EDITION : 8th Edition

ISBN NO : 9789357781466

NO. OF PAGES : 410

BINDING TYPE : PAPERBACK

DESCRIPTION

Rs. 360 USD 33

This book is prepared exclusively for the Executive Level of Company Secretary Examination requirement. It covers the questions (topic-wise) & detailed answers strictly as per the syllabus of ICSI.

The Present Publication is the 8th Edition for CS-Executive | Old Syllabus | Dec. 2023 Exam. This book is authored by CS N.S. Zad, with the following noteworthy features:

•Coverage of this book includes

o Fully-Solved Questions of Past Exams, including the June 2023 Exam

• [Arrangement of Questions] Topic-wise arrangement of past exam questions

• [Practical MCQs] with Hints

• [Marks Distribution] Chapter-wise marks distribution from June 2019 onwards

• [ICSI Study Material Comparison] is provided chapter-wise The contents of this book are as follows:

• Part A – Financial Management

oNature & Scope of Financial Management

o Working Capital Management

o Receivable Management

o Inventory Management

oManagement of Cash & Marketable Securities

o Leverages

o Capital Structure Decisions

o Cost of Capital

oCapital Budgeting – Basic

o Dividend Policy

oSecurity Analysis & Portfolio Management

oProject Finance & Types of Financing

• Part B – Strategic Management

o Introduction to Management

oIntroduction to Strategic Management

oBusiness Policy & Formulation of Functional Strategy

oStrategic Analysis & Planning

oStrategic Implementation & Control

o Analysing Strategic Edge

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