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Chapter-wise Marks Distribution
S. No.
Chapter
2019 2020
2021
2022
2023
J
D
J
D
J
D
J
D
Average
1
Nature & Scope of Financial Management
9
8
6
3
6
6
5
3
5.75
2
Working Capital Management
4
3
3
4
4
6
4
6
4.25
3
Receivable Management
2
1
2
2
2
1
3
3
2
4
Inventory Management
6
2
2
2
3
1
1
-
2.125
5
Management of Cash & Marketable Securities
3
1
2
2
1
2
1.37
6
Leverages
5
2
7
9
6
4
3
7
5.37
7
Capital Structure Decisions
4
5
5
3
3
10
3
6
4.87
8
Cost of Capital & Economic Value Added
4
10
7
6
10
8
9
5
7.37
9
Capital Budgeting
6
4
12
8
6
4
12
10
7.75
10 Dividend Policy
4
7
7
6
4
4
6
11
6.12
11 Security Analysis & Portfolio Management
11
15
9
12
13
5
8
5
9.75
12 Project Finance & Types of Financing
2
2
2
6
3
9
5
4
4.12
13 Introduction to Management
1
8
6
8
5
7
4
4.87
14 Introduction to Strategic Management
4
6
6
3
7
7
3
5
5.12
15 Business Policy & Formulation of Functional Strategy
6
6
4
8
2
13
6
11
7
16 Strategic Analysis & Planning
23
8
12
8
13
4
12
7
10.87
17 Strategic Implementation & Control
3
5
6
8
5
5
4
5
5.12
18 Analyzing Strategic Edge
3
7
8
6
5
6
8
6
6.12
100
100 100 100 100 100 100
100
100
Total
Note : J-June; D-December
I-5
Chapter-wise Comparison with Study Material Chapter No.
Name of Chapter
Study Material
1.
Nature & Scope of Financial Management
Chapter 1
2.
Working Capital Management
Chapter 7
3.
Receivable Management
Chapter 7
4.
Inventory Management
Chapter 7
5.
Management of Cash & Marketable Securities
Chapter 7
6.
Leverages
Chapter 3
7.
Capital Structure Decisions
Chapter 3
8.
Cost of Capital & Economic Value Added
Chapter 4
9.
Capital Budgeting
Chapter 2
10.
Dividend Policy
Chapter 6
11.
Security Analysis & Portfolio Management
12.
Project Finance & Types of Financing
Chapter 5
13.
Introduction to Management
Chapter 11
14.
Introduction to Strategic Management
Chapter 12
15.
Business Policy & Formulation of Functional Strategy
Chapter 13
16.
Strategic Analysis & Planning
Chapter 14
17.
Strategic Implementation & Control
Chapter 15
18.
Analyzing Strategic Edge
Chapter 16
I-7
Chapters 8 & 9
Contents
PAGE
Chapter-wise Marks Distribution
I-5
Chapter-wise Comparison with Study Material
I-7
PART A FINANCIAL MANAGEMENT Chapter 1 u NATURE & SCOPE OF FINANCIAL MANAGEMENT
1.3
Chapter 2 2.1
u WORKING CAPITAL MANAGEMENT
Chapter 3 3.1
u RECEIVABLE MANAGEMENT
Chapter 4 4.1
u INVENTORY MANAGEMENT
Chapter 5 u MANAGEMENT OF CASH & MARKETABLE SECURITIES
5.1
Chapter 6 6.1
u LEVERAGES
Chapter 7 7.1
u CAPITAL STRUCTURE DECISIONS
Chapter 8 8.1
u COST OF CAPITAL
I-9
I-10
CONTENTS PAGE
Chapter 9 9.1
u CAPITAL BUDGETING - BASIC
Chapter 10 10.1
u DIVIDEND POLICY
Chapter 11 u SECURITY ANALYSIS & PORTFOLIO MANAGEMENT
11.1
Chapter 12 u PROJECT FINANCE & TYPES OF FINANCING
12.1
PART B STRATEGIC MANAGEMENT Chapter 13 u INTRODUCTION TO MANAGEMENT
13.3
Chapter 14 u INTRODUCTION TO STRATEGIC MANAGEMENT
14.1
Chapter 15 u BUSINESS POLICY & FORMULATION OF FUNCTIONAL STRATEGY
15.1
Chapter 16 u STRATEGIC ANALYSIS & PLANNING
16.1
Chapter 17 u STRATEGIC IMPLEMENTATION & CONTROL
17.1
Chapter 18 u ANALYZING STRATEGIC EDGE
18.1
Solved Paper : June 2023 (Suggested Answers)
P.1
Solved Paper : Dec. 2023 (Suggested Answers)
P.26
16
CHAPTER
Strategic Analysis & Planning MCQss ON THEORY MCQ
1. _________ refers to the process of conducting research on a company and its operating environment to formulate a strategy. (A) Strategic management
(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:
(B) Strategic analysis
I. Formulate plans.
(D) Simulation analysis
II. Recommend and implement the most viable strategy.
2. Strategic analysis involves: (A) Identifying and evaluating data relevant to the company’s strategy. (B) Defining the internal and external environments to be analyzed. (C) Using several analytic methods such as Porter’s five forces analysis, SWOT analysis etc. (D) All of the above 3. ADL matrix has been propounded by: (A) Arthur D. Lowey
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
(C) Arthur D. Levin
6. _____ is the process we use to gain understanding and insight into our present situation.
(D) Arthur D. Louise
(A) Situational analysis
4. Purpose of a strategic analysis is to -
(B) Sensitive analysis
(A) Analyze an organization’s external and internal environment.
(C) Simulation analysis
(B) Arthur D. Little
(D) All of the above
16.1
TAXMANN®
(C) Sensitive analysis
16.2
PART B : STRATEGIC MANAGEMENT
TAXMANN®
7. Which of the following is NOT ‘internal environment considerations’?
(A) After developing a strategy.
(A) Operational inefficiencies
(B) At the beginning of any program or project
(B) Changes in consumer taste
(C) Before company is incorporated
(C) Employee morale (D) Constraints from financial issues
(D) At a later stage in quality management
8. Which of the following is NOT ‘external environment considerations’?
13. Which of the following is NOT element of Situation Analysis?
(A) Political trends
(A) Product Situation
(B) Economic shifts
(B) Competitive Situation
(C) Operational inefficiencies
(C) Distribution Situation
(D) Changes in consumer taste
(D) Profit Situation
9. Strategists must ask themselves question such as:
14. The low growth, low share businesses in BCG matrix are:
(A) Is our strategy failing or succeeding?
(A) Cows (B) Dogs
(B) Will we meet our stated goals?
(C) Cats
(C) Does our strategy align with our vision, mission, and values
(D) Question Marks
(D) All of the above
15. Identification of opportunities and avoiding or mitigating losses is called -
10. Potential strategic alternatives include -
(B) Stress management
(A) Changes in capital structure
(C) Change management
(B) Changes in supply chain management
(D) Co-ordination
(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
(A) Risk management
16. Environment scanning applies to 1. External scanning processes 2. Motivational scanning processes 3. Internal scanning processes 4. Lead scanning processes
(B) Value chain Analysis
Select the correct answer from the options given below:
(C) Managerial Grid Matrix
(A) None of the given
(D) Ansoff’s Product Matrix Growth Matrix
(B) Except 4 all other
12. A situation analysis should be conducted -
(D) 1 only
(C) Both 1 and 3
CH. 16 : STRATEGIC ANALYSIS & PLANNING
16.3
17. In SWOT analysis the ‘O’ stands for -
(C) The SO cell
(A) Objections
(D) The ST cell
(B) Openings
18. SWOT analysis Originated by -
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) Heinz Weirich
(A) Stress management
(B) United States Navy
(B) Crisis management
(C) Albert S Humphrey
(C) TQM
(D) James E. Kelley
(D) None of the above
19. An organization that has a low relative market share position and competes in a slow growth industry is referred to as a _______
24. Which of the following is element of Situation Analysis?
(C) Opportunities (D) Obstacles
(A) Dog (B) Question Mark (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
(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
22. Which section of the SWOT Matrix involves matching internal strengths with external opportunities?
(B) Subconscious selection
(A) The WT cell
(D) None of the above
(B) The SW cell
(C) Analysis of threats to the business
TAXMANN®
(C) Star
(A) Environmental Factors
16.4
PART B : STRATEGIC MANAGEMENT
27. Which of the following executes strategy into everyday executions tactics?
(D) Divest
(C) Operational planning
32. The ADL Matrix or Arthur D Little Strategic Condition Matrix is a Portfolio Management technique that is based on the -
(D) None of the above
(A) Market Growth Strategy (MGS)
28. Which of the following refers to a situation where a product generates high profits which can then be invested in developing new products?
(B) Corporate Portfolio Investment (CPI)
(A) Goal setting (B) Technical planning
(A) Dogs (B) Cash cows (C) Question marks (D) Growth stage TAXMANN®
(C) Build
29. A business giant in hotel industry decides to enter into dairy business.
(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.
In the context of Ansoff’s Product-Market Growth Matrix, identify, the type of growth strategies followed for the given case.
(B) Product Development
(A) Market Development
(D) Market improvement
(B) Product Development
34. What is shown in the Arthur D. Little (ADL) Matrix?
(C) Diversification (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
(A) Market Development (C) Market Penetration
(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.
CH. 16 : STRATEGIC ANALYSIS & PLANNING
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 (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.
(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
(A) Market Development
41. Dell Computer has decided to rely exclusively on direct marketing. This is example of -
(B) Product Development
(A) Differentiation Strategy
(C) Diversification
(B) Focus Strategy
(D) Market Penetration
(C) Cost Leadership Strategy
38. Four generic strategies as discussed by Glueck and Jauch are -
(D) Diversification Strategy
(A) Stability Strategies, Expansion Strategies, Retrenchment Strategy & Combination Strategies (B) Growth Strategies, Stable Strategies, Retrenchment Strategy & Combination Strategies
42. ‘NDTV’, a TV Channel has identified a profitable audience niche in the electronic media. It has further exploited that niche through the addition of new channels like ‘NDTV’ Profit and ‘Image’. According to Porter, this is example of -
TAXMANN®
(C) Divest/harvest
16.5
16.6
PART B : STRATEGIC MANAGEMENT
(C) Cost Leadership Strategy
47. A business organization can redefine its business by divesting a major product line or market. This is supported by -
(D) Diversification Strategy
(A) Retrenchment Strategy
43. In BCG matrix, what is the label of the horizontal axis?
(B) Combination Strategy
(A) Differentiation Strategy (B) Focus Strategy
(A) Relative Market share (B) Business Strength (C) Industry Growth Rate (D) Market Growth Rate
(D) Incline Strategy 48. Statement I: Stability strategy is not a ‘do-nothing’ strategy.
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 -
Statement II:
(A) Hold/selective
Select the correct answer from options given below:
(B) Divest/harvest TAXMANN®
(C) Growth Strategy
(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 -
Third step in BCG Matrix is to calculate relative market share.
(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
(A) Growth Strategy
(B) Business Strength
(B) Turnaround Strategy
(C) National Growth Rate
(C) Cost Leadership Strategy
(D) Market Growth Rate
(D) Unique Strategy
(A) Business Making Matrix
50. TOWS Matrix is an analytical tool that helps build over your _______ and make the best use of available _______ while also minimizing the _______
(B) Business Planning Matrix
(A) Threats; Opportunities; Strengths
(C) Business Portfolio Matrix
(B) Strengths; Opportunities; Threats
(D) Business Grow Matrix
(C) Opportunities; Strengths; Threats
46. Another name for GE/McKinsey Matrix is -
(D) Strengths; Threats; Opportunities
CH. 16 : STRATEGIC ANALYSIS & PLANNING
16.7
PAST EXAMINATION MCQs MCQs 51. Dec. 2019: A Strategic Business Unit (SBU) is defined as a division of an organization:
55. Dec. 2019: Which of the following is a force in the Porter’s five forces model of industry attractiveness?
(A) That help in the marketing operations.
(A) Bargaining power of suppliers
(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 (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.
(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) Profitability (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.
(B) Establishing an editorial calendar for staff to follow.
58. Dec. 2019: The BCG matrix is based on:
(C) Understanding buyer personas and buyer behaviours.
(A) Industry attractiveness and business strength
(D) Hiring new staff and training them on marketing tactics.
(B) Industry growth rate and business strength
TAXMANN®
(B) System
(B) Competitive market
16.8
PART B : STRATEGIC MANAGEMENT
(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) Ansoff (B) Drucker
(A) Market Development
(C) Porter
(B) Market Penetration
(D) Prahlad
(C) Product Development
64. Dec. 2019: Directional Policy Matrix is same as:
(D) Diversification
TAXMANN®
63. Dec. 2019: The product-market matrix comprising strategies of penetration, market development, product development and diversi-fication was first formulated by:
(A) the BCG Model
60. Dec. 2019: Successful differentiation strategy allows the company to:
(B) the 9-cell GE Matrix
(A) Gain buyer loyalty to its brands
(C) the Life-cycle Portfolio analysis
(B) Charge too high a price premium
(D) the 3 × 3 competitive positioning matrix
(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?
65. Dec. 2019: Which section of the SWOT Matrix involves matching internal strengths with external opportunities? (A) The WT cell (B) The SW cell
(A) Introduction
(C) The SO cell
(B) Growth
(D) The ST cell
(C) Maturity
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.
(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.
(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
CH. 16 : STRATEGIC ANALYSIS & PLANNING
16.9
(C) Strong competitive advantage
(C) Attack Strategy
(D) Mergers and acquisitions
(D) Functional Strategy
68. Dec. 2019: Conglomerate diversification is another name for which of the following?
73. Dec. 2019: Porter’s Generic strategies include:
(A) Related diversification (B) Unrelated diversification (C) Portfolio diversification
(A) Cost Differentiation, Product Focus, Leadership (B) Price Leadership, Cost Focus, Product Differentiation
(D) Acquisition diversification
(C) Price Differentiation, Leadership, Cost Focus
69. Dec. 2019: When two organizations combine to increase their strengths and financial gains, it is called:
(D) Cost Leadership, Differentiation and Focus
(A) Hostile takeover (B) Liquidation (C) Merger (D) Acquisition
(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?
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
(A) Defensive Strategy
(B) Opportunities and threats
(B) Offensive Strategy
(C) Strengths and weaknesses (D) Strengths and threats
TAXMANN®
70. Dec. 2019: A firm successfully implementing a differentiation strategy would expect:
74. Dec. 2020:
16.10
PART B : STRATEGIC MANAGEMENT
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?
TAXMANN®
(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) Diversification 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:
CH. 16 : STRATEGIC ANALYSIS & PLANNING
(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.
16.11
(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
(A) external; own
(C) Focus Strategy
(B) own; own
(D) Combination Strategies
(C) external; external
91. June 2021: In Porter’s Generic Strategies model, a focus strategy includes:
(D) own; external 87. June 2021: In long run, when the growth rate slows down stars become: (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) Diversification into related markets. (B) Conglomerate Diversification with new product.
(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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(A) Question Marks
(A) Selling a high range of products
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PART B : STRATEGIC MANAGEMENT
(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.
96. Dec. 2021: The terms, build; hold; harvest; divest are closely linked with strategies of ...................
9 3 . J u n e 2 0 2 1 : According to MCKINSEYS 7-S framework change in strategy is implemented through change in ....................
(C) ADL Matrix
(B) BCG Matrix (D) GE Mckinsey Matrix
(C) Shared Values
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:
(D) Skills
(A) TOWS Analysis
94. Dec. 2021: Match the following:
(B) SWOT Analysis
(A) Systems (B) Style
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(A) Ansoff Matrix
(1) Maxi-Maxi
(i) Defensive
(C) CPM Analysis
(2) Maxi-Mini
(ii) Competitive
(D) PERT Analysis
(3) Mini-Maxi
(iii) Conservative
(4) Mini-Mini
(iv) Aggressive
98. Dec. 2021: The .................. Matrix also helps in brainstorming to bring out great ideas to generating effective strategies and tactics.
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 ) – ( i i i ) , ( 3 ) – ( i i ) , (4)–(iv) (D) ( 1 ) – ( i v ) , (4) – (iii)
(2)–(i),
(3)–(ii),
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%
(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
CH. 16 : STRATEGIC ANALYSIS & PLANNING
(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.
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(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 identification 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 Profits due to low profit margins (B) Patent Infringement and other aspects of litigation (C) Cyber-security issues 106. June 2022: Strategies that utilizes strengths to maximize the opportunities are represented by which cell of TOWS matrix?
(C) Both (A) and (B)
(A) WT Cell
(D) None of the above
(B) ST Cell
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?
(C) SO Cell 107. June 2022: Which of the following is a strategy of TOWS concept?
(A) Before development of a strategy
(B) Conducive Strategy
(B) During development of a strategy
(C) Concrete Strategy
(C) After development of a strategy
(D) Conflict Strategy
(D) All of the above
108. June 2022: Limitations of PERT include:
104. June 2022: Effectiveness of Situation Analysis can be assessed by which of the following approaches? (A) Through its simplicity and practicality.
(D) All of the above
(D) WO Cell
(A) Competitive Strategy
(A) Uncertainty about the estimate of time and resources as it is based on assumptions.
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(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.
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PART B : STRATEGIC MANAGEMENT
(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?
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(A) It helps to guide organizational change.
(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.
(B) It combines rationale and hard elements with emotional and soft elements.
(D) It puts pressure on Finance Function.
(C) Manager’s act only on selective Ss in parallel as all the Ss may not be interrelated.
114. June 2022: Which of the following strategies of Ansoff’s Growth Matrix is referred as Suicide Cell?
(D) All the above are benefits
(A) Market Penetration
110. June 2022: Which of the following problems is not encountered in the process of resource allocation?
(B) Product Development
(A) Power Play
(D) Market Development
(B) Future Commitments
115. Dec. 2022: Situation Analysis is conducted:
(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) Diversification
(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
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CH. 16 : STRATEGIC ANALYSIS & PLANNING
117. Dec. 2022: Which of the following is false in respect of various strategies of TOWS analysis? (A) Strengths of the firm are used to maximize opportunities (B) Strengths of the firm are used to minimize threats (C) Weaknesses of the firm are overcome by using strengths (D) Weaknesses of the firm are overcome by using opportunities
118. Dec. 2022: Which of the following is not a criticism of BCG Matrix? (A) The market share of the matrix does not guarantee profitability. (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.
Answers: (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)
HINTS FOR IMPORTANT PRACTICAL MCQs MCQs 95. As per BCG Matrix Relative Market Share is calculated as follows: =
Your firm’s market share (or revenues) Largest competitor’s market share (or revenues)
=
428.5 4,800
× 100 = 8.93%
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1.
Financial & Strategic Management
(FSM/FM & SM) | CRACKER AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO NO. OF PAGES BINDING TYPE
: : : : : : :
N.S. ZAD TAXMANN 22/01/2024 9TH EDITION 9789357789615 426 PAPERBACK
Rs. 375
Description 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 old syllabus of ICSI. The Present Publication is the 9th Edition for CS-Executive | Old Syllabus | June 2024 Exam. This book is authored by CS N.S. Zad, with the following noteworthy features:
Coverage of this book includes
Fully-Solved Questions of Past Exams, including the Dec. 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
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