Followings are the questionnaire on Business Strategy Test
Apply your own knowledge & skills to answer it! , Hope success will be yours!
What is "R" stands for in "ADKAR" - a model for change management?
Ans. R = Reinforcement
What is "purchasing economies of scale definition" ?
What is " S" in PEST analysis ? [ PEST analysis (Political, Economic, Social and Technological analysis)]
Ans. S = Social
What is "lobster trap" in Business strategy?
What is meant by "triangulation" process?
Question:
01
What else must a company have besides an advantage in order to succeed in the
long term?
a. Sustainability
b. Solid management
c. Open communication
d. Loyal shareholders
Question: 02
What is the simplest way to make sure that a plan is launched and completed by
all parties involved?
a. Threaten the project leaders with
layoffs if they do not perform.
b. Give excessive compensation to the
leaders.
c. Allow people to run the planning
process whichever way they want regardless of its effectiveness.
d. Create a simple project plan with
specific deliverables.
Question: 03
How does a firm prioritize which threats to their business would be most
damaging?
a. It considers all threats equally
damaging.
b. It weighs the probability of the event
occurring and how it will impact the business.
c. It looks at the threats which have
impacted other companies and assumes that they will impact them also the extent
of damages.
d. It considers only those threats
damaging which impact employee morale.
Question: 04
What are the three levels of competitors?
a. Direct, Indirect, Substitute
b. Market, Governmental, Jurisdictional
c. Makers of the same product, Makers of
a similar product, Makers of a different product
d. Situational, Substitutional,
Governmental
Question: 05
Which of the following is a reason for the failure of a strategic plan?
a. The management was 100% above board.
b. The plan looked at past successes and
failures while planning for the future.
c. The mission statement was only two
sentences long.
d. It was not communicated to everyone
who needed to know.
Question: 06
What is a SWOT Analysis?
a. An analysis of the company's financial
performance over the last year
b. A list of standard operating
procedures
c. Listing of managerial options
regarding hiring employees
d. Listing of a company's strengths,
weaknesses, opportunities, threats
Question: 07
Which of the following needs to be addressed before implementing a plan?
a. Deciding how the board of directors
may react
b. How to motivate people to implement
the plan
c. How the next strategic plan will be
drafted
d. Determining if it is worth the time of
the management
Question: 08
Which of the following non financial factors from the past should be examined
as they impact the company the most?
a. Net Income
b. Geographical Trends
c. Economic Trends
d. Population Growth
Question: 09
How should a strategic plan be evaluated for financial viability?
a. By seeing if the strategic initiatives
are profitable as a whole
b. By ensuring that the strategy does not
impact finances
c. By estimating revenues and expenses for each of
the strategic initiatives, and determining if they will be profitable
d. The management
should make a rough judgment call.
Question: 10
How can a firm maintain its competitive advantage?
a. By trying to deceive the competition
b. By continually improving on its
advantage
c. By forcing customers to purchase their
products
d. By sabotaging the plans of
competitors with close substitutes
Question: 11
What would examining the supply and demand dynamics for a supplier's goods
accomplish?
a. Allow your firm to determine how much
quantity to order based on their availability
b. Allow your firm to determine what
pricing schedule your competitors are receiving
c. Allow your firm to determine the
relative price setting power of the supplier compared to other suppliers
d. It would not be of any use
Question: 12
How is the SWOT analysis used in setting priorities?
a. Combinations of weaknesses and threats
from the SWOT analysis become priorities
b. Combinations of strengths and
opportunities from the SWOT analysis become priorities
c. Combinations of opportunities and
threats from the SWOT analysis become priorities
d. SWOT is not used in setting priorities
Question: 13
Why is it important to reflect on past successes?
a. The past can be copied and repeated.
b. The company can apply the same
strategy to past failures to turn them around.
c. The company can see what it achieved
and how.
d. Past trends always indicate future
performance.
Question: 14
What significance does a "debt to equity ratio" have to a business
owner in evaluating how the company has performed?
a. It allows them to determine the
profitability of the company
b. It allows them to determine how
leveraged the company is
c. It allows them to determine how
effectively cash was managed
d. It allows them to compare profits
against other industry leaders
Question: 15
What is the correct order for creating a strategic plan?
a. List current problems, create
solutions for the problems, make financial analysis
b. Articulate your mission statement,
review your current position, agree on priorities, organize a plan
c. Create a project map, have a
company-wide meeting, finalize the plan
d. Forecast the estimated cost to
implement a plan, elect project managers, hold company meetings
Question: 16
How should firms plan for unknown future economic events?
a. By spending as excessively as possible
b. By firing people whenever possible
c. By predicting future direction and
making decisions accordingly, knowing that the economy runs in cycles
d. By hiring only contract labor rather
than regular employees
Question: 17
What are the three main elements to a strategic plan?
a. Mission, Goals, Management
b. Managerial, Operational, Financial
c. Where are we now? Where are we going?
How will we get there?
d. What went wrong? How to fix it? How
much it will cost?
Question: 18
Why is consistency considered an competitive advantage?
a. Consumers value consistency although
it is not a competitive advantage.
b. It is not very costly.
c. Customers expect to receive the same
good or service regardless of the location.
d. It reduces the cost of production.
Question: 19
What must a competitive advantage be in order truly to be an advantage?
a. It must be expensive.
b. It must be inexpensive.
c. It must be unique.
d. It must satisfy the marketing test.
Question: 20
What purpose does a balanced scorecard serve?
a. It allows the company to measure its
financial performance.
b. It tracks the progress and performance
of key performance indicators
c. It maps out historical performance
d. It allows the management to effect
process change
Question: 21
Why must goals be measurable?
a. It is required by law.
b. It shows the employees that the
management is serious.
c. A goal that can not be measured is no
goal at all.
d. It allows the management to know if
goals are being met or not.
Question: 22
Which of the following is a method a company could use to evaluate its
competitive advantage?
a. Determining where the company stands
amongst the competition
b. Graph performance
c. Customer feedback
d. Determining if a new marketing
campaign was successful
Question: 23
Why is "skilled staff" not a competitive advantage?
a. Any competitor can easily hire skilled
staff by tempting your own staff or that of others to join them.
b. Skilled staff can easily ruin good
plans.
c. Skilled staff cost more than unskilled
staff, offsetting the advantage.
d. Skilled staff is a competitive
advantage.
Question: 24
How can a company prevent a disaster related to the crash of company servers
while facilitating the employees' ability to perform in their jobs?
a. By utilizing hardcopy reports as much
as possible
b. By backing up data on a routine basis
through live or at least daily backups
c. By cross training employees
d. By storing call data locally on the
employees' machines
Question: 25
Which of the following is an example of an internal priority?
a. Partnering with other firms
b. Training employees
c. Entering new markets
d. Developing new products
Question: 26
Which of the following would help maintain a competitive advantage?
a. Aggressive marketing
b. The management's commitment to
excellence
c. Communicating the company values to
the entire organization
d. Patent or trademark on what creates
the advantage
Question: 27
Why is it important to continually communicate a plan to all employees?
a. To reinforce the plan and increase
commitment
b. To tie raises and job security to
measurable criteria
c. To make employees feel important even
though they have no impact
d. To forewarn employees of layoffs
Question: 28
What two factors are used in the GE Matrix for strategic analysis?
a. Market Attractiveness and Business
Strength
b. Geographical Location and Consumer
Spending
c. Business Strength and Geographical
Location
d. Consumer Spending and Market
Attractiveness
Question: 29
Why is it important to have someone who was not involved in creating the plan
review the final strategic plan?
a. To check for spelling mistakes
b. To verify the plan is compliant with
regulatory bodies
c. To check the management's ability to manage the firm
d. To verify the plan makes sense to
outside parties and integrates well with the company
Question: 30
What should a company prepare financial ratios for?
a. Submit them to the bank for a loan.
b. Present them to all its employees.
c. Compare them to the past years and to
industry norms.
d. Use them as a benchmark for all future
performance.
Question: 31
Which of the following is a barrier to entry?
a. Substantial capital investment needed
to enter a market
b. Low set up costs
c. Easy access to qualified employees
d. Government grants for the specific industry
Question: 32
Which of the following is the method often used to ensure that managers
implement strategic plans?
a. Tie compensation rewards and growth to results which will
be generated by implementing the plan
b. Threaten layoffs
c. Request them to implement the plans
d. Make the plans easy to implement
Question: 33
Which of the following would be best to review to see trends and overall
performance of the past?
a. Current Balance Sheet
b. Current Month Profit & Loss
compared to Prior Year Profit & Loss
c. Current Cash Flow Statement
d. Trailing 12 Month Profit & Loss
Statement
Question: 34
How can a firm mitigate the risk of an employee with specialized knowledge
leaving the company while empowering other employees?
a. By forcing the employees to sign
commitment letters even when not allowed by law
b. By suing the employees who leave
c. By requiring weekly updates to
employee procedure manuals
d. By cross training employees on all
aspects of their positions as well as by creating documentation of job processes
Question: 35
What section of the environment would your competitors be categorized as?
a. Market
b. Industry
c. Organization
d. Global environment
Question: 36
What role do assumptions have in strategic planning?
a. Old assumptions should be the backbone
of new plans.
b. Old assumptions should be forgotten
and people should be encouraged to think using a blank slate.
c. New assumptions should be in line with
old assumptions.
d. New assumptions should always be
different from any old assumptions.
Question: 37
Why would a company set strategic priorities for the next 5 years?
a. It takes several years in order to get
approval
b. It takes several years for a good
strategic plan to grow and show results
c. It guarantees management will stay
with the company for several years
d. If set for 5 years, then no strategic
plans need to be drafted until that time has passed
Question: 38
What are the four main areas for setting priorities?
a. External, Managerial, Employee,
Operational
b. Operational, Financial, Employee,
Managerial
c. Financial, Customer, Internal,
Employee
d. Decisional, Operational, Profitable,
Managerial
Question: 39
What is the main goal in setting customer related priorities?
a. To assign a value to customers
b. To determine which customers are the
most profitable and focus only on them
c. To determine how to sell more to all
customers
d. To determine how the firm adds value
for the customers
Question: 40
How should a company communicate a new strategic plan company wide?
a. Company meeting for all employees
b. An email to all employees
c. A meeting only for department managers
d. Only top management should be aware of
strategic plans, no communication is necessary
