ICFAI University MBA Business Strategy Exam Question Paper

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Here is the list of few questions of ICFAI University MBA Business Strategy Exam Sample Question Paper which you are looking for .
1. An organization’s vision and mission act as guidelines for strategy formulation. Which of the following are the
main components of a well-conceived vision?
I. Core ideology.
II. Envisioned future.
III. Philosophy of the business.
IV. Principle technology.
(a) Both (I) and (II) above
(b) (I), (II) and (III) above
(c) (I), (III) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
<Answer>
2. Jaguar manufactures its cars in Europe and provides sales and services in different countries. Thus, Jaguar
derives a cost advantage by sharing technology development and manufacturing costs across different regions.
This is an example of
(a) Segment scope
(b) Vertical scope
(c) Horizontal scope
(d) Geographic scope
(e) Industry scope.
<Answer>
3. The assessment of the top management of the organization is a major reason for the internal analysis of an
organization. Which of the following are the important questions to be asked by the analyst while assessing top
management?
I. How has the organization been managed in the past?
II. How well is the company prepared to face the future?
III. How do stockholders collectively make themselves heard?
IV. How well did management assess its position, plan for change and carry out change?
(a) Both (I) and (II) above
(b) (I), (II) and (III) above
(c) (I), (II) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

4. In today’s global environment, rapid changes in technology, competition, customer demands have increased the
rate at which companies need to alter their strategies to survive in the market place. Which of the following
is/are the reason(s) for a technical change?
I. When new developments are made by competitors.
II. Strategists wishing to harness new technologies.
III. The tendency for large organizations and markets to become increasingly global.
IV. The greater skills of managers and employees.
(a) Only (I) above
(b) Both (I) and (II) above
(c) (I), (II) and (III) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

i. e x e

5. Which of the following cost drivers is not included in the institutional factors?
(a) Tax holidays
(b) Location
(c) Unionization
(d) Tariffs and levies
(e) Local content rules.

6. Active and independent is one of the phases in three phase internationalization model. Which of the following
are the reasons why company chooses to increase its commitment to internationalization in this phase?
I. The firm doesn’t have any opportunity to learn and improve its position.
II. By producing locally, the firm can serve the local customers better.
III. Some countries impose high tariff barriers making it difficult and expensive to operate from outside.
IV. The firm doesn’t want to share its company specific knowledge with other firms and wants to control the
knowledge through franchising, licensing or other modes.
(a) Both (I) and (II) above
(b) (I), (II) and (III) above
(c) (I), (III) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

7. Managers perform different roles. Which of the following is/are the interpersonal role(s) of a manager?
I. Figurehead role.
II. Entrepreneurial role.
III. Monitor role.
IV. Spokesman role.
(a) Only (I) above
(b) Both (I) and (II) above
(c) (I), (II) and (III) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

8. Retrenchment strategies are adopted when the firm’s survival is at stake. Liquidation is one of the retrenchment
strategies. Which of the following statements are true regarding liquidation strategy?
I. It involves closing down a business organization and selling its assets.
II. It is adopted when the company has a weak competitive position in some or all of its product lines.
III. It is adopted when the industry is unattractive and the company too weak to be sold as a going concern.
IV. In this, the management converts as many saleable assets as possible to cash, which is then distributed to
the shareholders after all obligations are paid.
(a) Both (I) and (II) above
(b) (I), (II) and (III) above
(c) (I), (III) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

9. Which of the following is a series of different budgets based on different levels of output?
(a) Zero base budget
(b) Cash flow budget
(c) Balance sheet budget
(d) Flexible budget
(e) Variable budget.


10.Looking at strategic management as a process helps to highlight certain aspects of the strategic management
model. In this regard, which of the following statements are true?
I. A change in any component will have an influence on several other components.
II. The process of strategic management should be kept flexible.
III. A proper structure is essential for strategy to be operational.
IV. Feedback from institutionalization, review and evaluation will loop back into the early stages of planning.
(a) Both (I) and (II) above
(b) (I), (II) and (III) above
(c) (I), (II) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

11.Who among the following is having the responsibility to design the organizational structure based on the
objectives, policies, environmental factors, expectations of employees etc.?
(a) Managers
(b) General managers
(c) Board of directors
(d) Chief Executive Officer (CEO)
(e) Consultants.

12.The strength of a culture influences the intensity by which organizational members comply with it as they go
about their daily activities. The specific feature(s) of culture that determine its strength is/are
I. Thickness.
II. Extent of sharing.
III. Clarity of ordering.
IV. Nature of the company.
(a) Only (I) above
(b) Both (I) and (II) above
(c) (I), (II) and (III) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

13.Identification of potential buyers by the project team initiates the selling process. Which of the following is/are
the category(ies) of potential buyer?
I. Direct competitors.
II. Suppliers and customers.
III. Buyers who want to broaden their product lines.
IV. Buyers looking for operational economies of scales.
(a) Only (I) above
(b) Both (III) and (IV) above
(c) (I), (III) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

14.In the initial step of a value chain analysis, a company’s operations are divided into business processes or
(a) Specific activities
(b) Competitor analysis
(c) Product life cycle
(d) Trade-offs
(e) Value judgments.


15.Policies are directives designed to help managers and their subordinates in the implementation of organizational
strategy. Which of the following are the purpose of business policies?
I. They are designed to control and reinforce the implementation of functional strategies and the grand
strategy.
II. They establish indirect control over independent action by making clear statements about how things are to
be done.
III. They assess the strengths and weaknesses of the company’s management and organizational structure.
IV. By limiting discretion, they in effect control decisions and conduct activities without direct intervention by
top management.
(a) Both (I) and (II) above
(b) (I), (II) and (III) above
(c) (I), (II) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

16.In cost analysis, the first step is to define a firm’s value chain and to assign operating costs and assets to value
activities. Which of the following statements is not true regarding assigning costs and assets?
(a) Operating costs should be assigned to the activities in which they are incurred
(b) The assigning of the assets should be done to the activities that employ, control or mostly clout their use
(c) Though assigning of operating costs is time consuming, it is straightforward
(d) Since assets are costlier and their selection and use often get entangled with trade offs with operating
costs, assets must be assigned to value activities in some way that will permit an analysis of cost
behavior
(e) Assigning operating costs to activities is more complicated than assigning assets.

17.The personnel department must take care in recruiting people that meet industry specifications. When recruiting
employees, which of the following factors are to be considered by the personnel department?
I. Reputation as an employer.
II. Local employment rates.
III. Demographic variables.
IV. Ready availability of personnel with the necessary knowledge and skills.
(a) Both (I) and (IV) above
(b) Both (II) and (III) above
(c) (I), (II) and (III) above
(d) (I), (II) and (IV) above
(e) (II), (III) and (IV) above.

18.Financial strategies direct the use of resources in supporting long term goals and annual objectives. Working
capital management is an important component of the financial strategy. Which of the following statement(s)
is/are true regarding working capital management?
I. The seasonal and cyclic fluctuations in the size and pattern of receipts and disbursements of a firm
influence the capital requirements of the firm.
II. Financial strategy should provide the guidelines for conserving and rebuilding the cash balances required
for daily operations.
III. The working capital requirements are determined through estimations of the cash flow.
(a) Only (I) above
(b) Both (I) and (II) above
(c) Both (I) and (III) above
(d) Both (II) and (III) above
(e) All (I), (II) and (III) above.

19.Which of the following strategy involves making decisions about the competitive position of a single business
unit?
(a) Corporate level
(b) Business level
(c) Functional level
(d) Operational level
(e) Technical level.


20.The matching stage of the analytical framework for strategy formulation is called corporate portfolio analysis.
Which of the following statement(s) is/are true regarding corporate portfolio analysis?
I. This strategy involves making decisions about the competitive position of a single business unit.
II. This strategy has to be adoptable to multiproduct market firms in which each product/market is managed as
a separate business or profit center.
III. Each business is a separate entity and a contributor to the corporation’s total portfolio of business.
IV. This approach provides a simple way of identifying and evaluating alternative strategies for the generation
and allocation of corporate resources.
(a) Only (I) above
(b) Both (I) and (II) above
(c) (I), (II) and (III) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

21.The process of internal analysis, when matched with the results of management’s environmental analysis and
mission priorities, provides the critical foundation for
(a) Strategy formulations
(b) A grand strategy
(c) Company profile
(d) Long term objectives
(e) Annual objectives.

22.Divisional organizational structure is one of the types of structural choices that are currently used by most
business firms. Which of the following is/are the advantage(s) of divisional organizational structure?
I. It helps the corporate management to delegate authority for the strategic management of distinct business
equity.
II. It helps the progress in critical decision making within each division in response to different competitive
environment and compels the corporate management to stress upon corporate level decisions.
III. It has the combined advantage of both functional specialization as well as the product specialization.
IV. The number of middle managers gets increased with the help of this structure, exercising general
management responsibilities and broadens their exposure to organization wide strategic concerns.
(a) Only (I) above
(b) Both (I) and (II) above
(c) (I), (II) and (III) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

23.Long term objectives are statements of the results a firm seeks to achieve over a specific period. To achieve long
term prosperity, strategic planners commonly establish long term objectives in various areas. Which of the
following is not an area in this regard?
(a) Pricing
(b) Employee development
(c) Public responsibility
(d) Competitive position
(e) Employee relation.

24.Which of the following environment consists of a set of forces such as political, social, technological, and
industrial that originate beyond a firm’s operating situation?
(a) Remote
(b) Planning
(c) Economic
(d) Legal
(e) Operating.


25.Which of the following may be the most appropriate means of transfer in situations where the knowledge to be
transferred is complex or embedded in a complicated set of technological and organizational circumstances?
(a) Management by objectives
(b) Multiple surtax exemptions
(c) Participative training
(d) Class room training
(e) Learning-by-doing and teaching-by-doing.

26.The stronger a company’s culture becomes and the more that culture is directed towards the organizational
stakeholders, the less the company uses
I. Policy manuals.
II. Organizational charts.
III. Procedures and regulations.
IV. Detailed rules.
(a) Both (I) and (II) above
(b) (I), (II) and (III) above
(c) (I), (II) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

27.Which of the following is not a financial reform that a government has to take to be competitive in the global
market?
(a) Change in tax laws
(b) Change in capital gains
(c) Permission to banks to invest in equities
(d) Removal of incentives for financial manipulation in buying
(e) Increased tax credits for R&D investments in industry.

28.Failure to deal effectively with crises can lead to loss of
I. Controversies.
II. Confidence.
III. Competitiveness.
IV. Market share.
(a) Only (I) above
(b) Both (I) and (II) above
(c) (I), (II) and (III) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

29.The basic objective of the production function is to ensure that the outputs produced have a value that exceeds
the combined costs of the inputs and the transformation process. The production strategies of small business
units would be different from those of large business units. Which of the following variables are generally
present in these large business units?
I. Capital-labor substitutions.
II. Economies of scale.
III. Product diversification.
IV. Learning.
(a) Both (II) and (III) above
(b) (I), (II) and (III) above
(c) (I), (II) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.

30.In which of the following, a company which intends to acquire a controlling interest in another company asks
the shareholders of the target company to submit their shares of stock in the firm?
(a) Equity carve out
(b) Spin-off
(c) Split up
(d) Divestiture
(e) Tender offer.



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