PRELIM EXAM

Question 1

determines the development of strategies required to define an organization’s mission and accomplish it.

Answer 1

A strategic management model

Question 2

The process of strategic management has five components which are:

Answer 2

– situation analysis,
- strategic decision making,
- strategy formulation,
- strategy implementation, and
- strategy evaluation or control

Question 3

is a fundamental feature of the
new economy. As the word
implies carries a note of overexcitement and agitation.

Answer 3

Hyper-competition

Question 4

occurs when product or service offerings and technologies are so new that standards become unstable and competitive advantage not sustainable.

It is a condition where strategic maneuverings have escalated to bigger business exposure, more sophisticated marketing positioning, aggressive selling, and innovative products and services.

Answer 4

Hyper-competition

Question 5

is a situation where both globalization and technology collaborate to create a heightened cut-throat situation. It means that businesses compete with
each other whether they have same products, similar products, substitute products, and different products. Competitors continuously strive to outplay and outsmart each other. They
need to devise ways and means to survive and deal with this super competitive and turbulent reality.

Answer 5

hyper-competition

READ FOR ADDITIONAL INFO

Question 6

is a continuous process of strategy creation.

READ THIS :
It involves strategic processes
- like strategic analysis
and
- decision-making,
strategy
- formulation and
- implementation,
and
-strategy control

Answer 6

Strategic management

Question 7

consists of a systematic evaluation of variables currently existing in the
external and internal environments

Answer 7

Strategic analysis

Question 8

is deliberately bringing
together the right resources for the right markets at the right time,

Answer 8

strategic decision-making

Question 9

is designing strategies on the business and corporate levels.

Answer 9

Strategy formulation

Question 10

is employing these crafted strategies to achieve organizational set goals and objectives

Answer 10

Strategy implementation

Question 11

is the application of an appropriate monitoring and feedback system.

It is defined as the science
of creating, executing, and evaluating cross-functional decisions to enable an organization to achieve its goals and objectives, the components of the strategic management process have to be effective.

Answer 11

strategic control

Question 12

If strategic analysis is accurately conducted, organizations can develop….

is the capability of an organization to
possess relevant and related knowledge, abilities, foresight, and systems pressing
thinking, challenges such that it is able to assess its own strengths and vulnerabilities, the confronting the organization, as well as the trends and opportunities existing in the
environment.

Answer 12

Strategic Intelligence

Question 13

is the cognitive process of competently and
analytically weighing factors and arriving at critical decisions in the context of the current milieu of which an organization is part.

Answer 13

Strategic thinking

Question 14

pertains to the ability of any business or company to utilize its resources
optimally and sustainably for maximum performance and productivity.

Answer 14

Organizational competitiveness

Question 15

refers to the ability of an organization
to produce a particular good or services at lower marginal and opportunity costs than its competitors.

Answer 15

Comparative advantage

Question 16

is the accomplishment of a high level of productivity that is characterized by efficiency in the context of lean and quantifiable management.

Answer 16

Strategic performance

Question 17

is defined as a continuous, repetitive, and competitive process of
setting the goals and objectives that an organization aims to attain, defining the means to achieve them, and assessing the best way to realize them in the context of the prevailing environment
while measuring performance set standards, and periodically but continuously conducting
reassessments.

Answer 17

strategic planning

Question 18

prepared in the context of the coming 3 to 5, 10 or more years period. It describes the major factors or forces that affect organization’s long-term objectives, strategies, and resources required.

Answer 18

Medium/Long-range Plan

Question 19

short term; succinctly describes the organization’s present
situation, its goals and objectives, strategies, monitoring mechanisms, and the budget for the year ahead.

Answer 19

Annual/Yearly Plan

Question 20

is the process of working with various
teams and individuals to connect their efforts to the organization’s overall goals.

Answer 20

strategic alignment

Question 21

refers to the factors that affects a company’s operations.

constitutes business environmental factors such as political, economic, social, and global factors.

Answer 21

The external environment

Question 22

it is constantly changing, influenced by various external factors like
market trends, economic policies, and technological advancements.

Answer 22

Dynamic nature

Question 23

Multiple factors and their interactions create a complex landscape for
businesses to navigate. This complexity can stem from both internal dynamics and the
external competitive landscape, requiring businesses to employ sophisticated analytical tools to understand and predict environmental impacts.

Answer 23

Complexity

Question 24

The business environment’s dynamism and complexity continuously change its character and shape.

Answer 24

Multi-faceted

Question 25

Different segments of the environment are interconnected, meaning changes in one area can affect others.

Answer 25

Interrelatedness

Question 26

It varies from region to region and country to country, influenced by local conditions and cultural aspects.

Answer 26

Relativity

Question 27

refers to the process of collecting data about the business environment (e.g., customers, competitors, or market trends) using various technologies and tools. This technique aims to provide information that will let companies make better strategic decisions and adapt to changing market conditions.

Answer 27

ENVIRONMENTAL SCANNING

Question 28

refers to the external elements and conditions that affect the tasks, operations, and performance of the company. It includes financial, mechanical, political, legal, social, and ecological components.

Answer 28

business environment

Question 29

Micro external forces have an important effect on business operations of a firm. Components of micro environment are:

Answer 29

Suppliers, Customers, Marketing Intermediaries, and Competitors.

Answer 30

Suppliers:

Question 31

An important factor in the external environment of a firm is the suppliers of its inputs such as raw materials and components.

Answer 31

firms adopt a strategy of backward integration and set up captive production plants for producing raw materials themselves.

Question 32

The people who buy and use a firm’s product and services are an important part of external micro-environment.

Answer 32

Customers:

Question 33

In a firm’s external environment ____________ play an essential role of selling and distributing its products to the final buyers. __________ include agents and merchants such as distribution firms, wholesalers, retailers. are responsible for stocking and transporting goods from their production site to their destination, that is, ultimate buyers.

Answer 33

Marketing Intermediaries:

Question 34

Business firms compete with each other not only for sale of their products but also in other areas.

Answer 34

Competitors:

Question 35

determines the opportunities for a firm to exploit for promoting its business and also presents threats to it in the sense that it can put restrictions on the expansion of business activities.

Answer 35

external macro environment

Question 36

important fact about external macro-environmental forces

Answer 36

they are uncontrollable by the management of a firm.

Question 37

Because of the uncontrollable nature of macro forces, a firm has to adjust or adapt itself to these external forces. External macro-environmental factors are classified into: Economic environment, Social environment, Political and legal, Technological and Demographic environments.

Answer 37

READ THE QUESTION AND UNDERSTAND

Question 38

includes factors such as economic growth, inflation, unemployment rates, exchange rates, and market demand. These factors deeply affect various aspects of business operations such as costs, consumer behavior and profitability.

Answer 38

Economic Environment:

Question 39

Consumer behavior, preferences and demographics in the market are influenced by the ________ of business. This environment provides insights that aid in creating personalized marketing plans for specific customers.

Answer 39

Social Environment:

Question 40

Environment include government initiatives and policies that affect the business sector, such as political transformations and public cohesion. It influences the business’s productivity and includes regulations, import/export policies, and investment rules.

Answer 40

Political Environment:

Question 41

encompasses the legislation, rules, and procedures that organizations must adhere to. Moreover, avoiding penalties and protecting one’s reputation and finances is crucial when communicating these changes.

Answer 41

Legal and Regulatory Environment:

Question 42

Technology in business encompasses the constantly evolving technological advancements that influence operating procedures and customer communication. This includes the integration of new technologies such as artificial intelligence and digital platforms, which have the potential to streamline processes and increase customer engagement.

Answer 42

Technological Environment:

Question 43

environment includes the size and growth of population, life expectancy of the people, rural-urban distribution of population, the technological skills and educational levels of labor force.

Answer 43

Demographic Environment:

Question 44

is a tool that can help you to analyze what your company does best now, and to devise a successful strategy for the future. examines both internal and external factors – that is, what's going on inside and outside your organization. instrumental in strategy formulation and selection. It is a strong tool, but it involves a great subjective element. It is best when used as a guide, and not as a prescription.

Answer 44

SWOT Analysis

Question 45

are features that organizations possess, thus, giving it significant advantage over others.

Answer 45

Strengths

Question 46

are characteristics that plays organizations at the advantage relative to others and may just be limitations or vulnerabilities of organizations.

Answer 46

Weaknesses

Question 47

are possibilities in the external environment that organizations can exploit to their advantage.

Answer 47

Opportunities

Question 48

are challenges in the external environment that can cause problems organizations.

Answer 48

Threats

Question 49

called as a PEST studies the key external factors (Political, Economic, Sociological, Technological, Legal and Environmental) that influence an organization. It can be used in a range of different scenarios, and can guide people professionals and senior managers in strategic decision-making. consists of various factors that affect the business environment. It is a macro- economic tool used to understand specifically the external environment of the greater environmental analysis.

Answer 49

PESTLE analysis

Question 50

PESTLE analysis helps a company weigh its performance by looking into the broad political, economic, social, technological, legal, and environmental factors influencing it. It helps a business gauge the favorable conditions in its launch stage, entry-stage into a new market or during its lifecycle.

Answer 50

Evaluation framework-

Question 51

The analytical framework gives a bird-eye view of the company’s present stance and a sneak peeks into the future trends. These insights also help the business to make decisions concerning the near future and plan its course of action for the long term.

Answer 51

Mapping technique:

Question 52

The study of PESTLE elements makes the corporations aware of the environment they are operating in. Better know-how of this environment gives them a competitive edge over other players and helps in strategic decision-making.

Answer 52

Strategic planning tool:

Question 53

environment is the setting in which an organization locally exists. As one studies in local environment, there are existing unique and interrelated variables that directly affect any organization or business.

Answer 53

The internal environment/the local milieu.

Question 54

is the sole legitimate institution tasked with overseeing organizational operations in the country.

Answer 54

The Governement

Question 55

exist because there are individuals who are willing to take the risks, invest their capital, and engage in business activities in exchange for a return.

Answer 55

Organization

Question 56

These are individuals that stand to benefit from the investments of the owners.

Answer 56

are employees, the government, and the community.

Question 57

is an economic scenario were nations, communities, organizations, companies, andindividuals offer and sell their products andservices. Competitors continuously strive to outplay and outsmart each other, hoping to get a larger share of the target market.

Answer 57

Competition

Question 58

They are companies who sell exactly the same products or offer the same services. They are direct competitors.

Answer 58

Same products.

Question 59

They are companies who sell similar products. Tea and coffee are similar products.

Answer 59

Similar products.

Question 60

Some companies sell substitute products. For example, the competitors of marketplaces are fast food centers who sell primary cooked food, and secondly, convenience. Instead of going to the market to buy meat, fish, and vegetables, they now go to fast food centers for their meals.

Answer 60

Substitute products.

Question 61

Still, there are companies who sell different products but market to the same market segments.

Answer 61

Different products

Question 62

Some companies appear to compete with themselves. For capturing a larger market, they produce the same products, use different brand names, and target different market segments.

Answer 62

Complementary competition.

Question 63

Similarly, there are companies whose relationships among each other are strategic and cooperative. Examples are the oil companies in the country. They are in “friendly” competition.

Answer 63

Collaborative competition.

Question 64

Lastly, some companies produce “fake” products. They compete with legitimate businesses by boldly and unethically transgressing the intellectual property rights of other companies through plagiarism, duplication, and false branding. They produce and sell these products at low prices.

Answer 64

Corrupted competition.

Question 65

make the market. They are the very reason why companies pursue new product developments and differentiate their existing products and services. are the focus of company’s business plans and programs and the thrust of their strategies.

Answer 65

Customers

Question 66

At the very least, any product or service should provide

Answer 66

Customer Satisfaction

Question 67

a condition where customers become excited over the products or the services offered.

Answer 67

Customer Delight

Question 68

refers to the relationship between the company and the customers. This is best described as warm,complimentary, supportive, and “businesslike” personal._________ is manifested in varied forms like sending birthday cakes, cards or sharing one’s expertise with a “customer” who is in bad financial shape.

Answer 68

customer intimacy.

Question 69

refer to individuals and companies engage in the delivery of raw material, machinery, technology, labor, expertise, skills, and other forms of services. They are essentially business partners

Answer 69

suppliers

Question 70

Organizations, particularly businesses, are .....

Answer 70

the lifeblood of any nation.

Question 71

Porter pursued his doctorate degree in industrial economics. He was a professor at the Harvard Business School. His book Competitive Strategy (1980), enumerated five forces that determine the intensity, profitability, and attractiveness of an industry:

Answer 71

industry: (1) bargaining power of suppliers; (2) the bargaining power of buyers/customers; (3) ease of entry of new firms; (4) availability of substitute products; and (5) rivalry among existing firms within the industry.

Question 72

is vital for any company seeking to grow its business in a strategic manner. It refers to a clear set of plans, actions and goals that outlines how a business will compete in a particular market, or markets, with a product or number of products or services.

Answer 72

Business strategy

Question 73

is a general term that refers to a sequence of interlinked undertakings that an organization operating in a specific industry engages in.

Answer 73

Value chain

Question 74

is the network of those involved with the production and distribution of a company’s products. involve a multitude of activities, people, entities, information and resources.

Answer 74

supply chain

Question 75

is the vital process of planning, tracking and perfecting how goods move throughout the system. Maintaining strong links within your supply chain impacts business costs and profitability.

Answer 75

Supply chain management

Question 76

is now a popular term used for purchasing which was formerly termed as procurement. Goal is to obtain the right materials by meeting quality requirements in the right quantity, for delivery at the right time and the right place, from the right source, with the right service, and at the right price.

Answer 76

Supply management

Question 77

are processes that transform operational input into output to satisfy consumer needs and requirements. This transformational process consists of manufacturing and assembly.

Answer 77

Production and operations

Question 78

is the process of producing goods using people or machine resources. It commonly refers to industrial production where raw materials are converted into finished goods.

Answer 78

Manufacturing

Question 79

is the process of putting together raw materials into a desired output. Quality raw materials and parts, efficient production layouts and processes, and employees with skills and motivation are essential to effective transformational processes.

Answer 79

Assembly

Question 80

is a popular term in supply chain management,

Answer 80

The logistics

Question 81

includes the supervision of certain sequential processes.

Answer 81

logistics management

Question 82

It is the function of physical packing finished goods or merchandises in a building, room, or any space for temporary storage. While these items are stocked in storerooms, they are timetabled for release to customers or buyers.

Answer 82

Warehousing

Question 83

It is the act of organizing these inventory units and booking them for delivery

Answer 83

Scheduling

Question 84

Products are for transfer; this may include posting, mailing, shipping out, transmitting, forwarding, or releasing commodities.

Answer 84

Dispatching

Question 85

scheduling and other logistics are necessary to make dispatching cost efficient. The goal is to minimize transportation costs. Therefore, considerations have to be prioritized in terms of location site, ease, or gravity of traffic, safety, and labor requirements.

Answer 85

Transportation

Question 86

______ to the specific site is undertaken. It closes the entire logistics circle.

Answer 86

Delivery

Question 87

Often implemented as a key marketing strategy,have proved particularly successful in helping companies attract new customers, retain existing clients, try out new product concepts, and respond to the ever-changing demands of the consumer.

Answer 87

Promotion

Question 88

It has broad meaning in supply chain management, in which include the activities such as selling goods, identifying potential customers, creating demand, providing information and services to buyers. The goals of selling

Answer 88

Selling

Question 89

are carefully studied and deliberately carried out by organizations

Answer 89

growth strategies

Question 90

suggests that for an organization to increase its growth, __________can be actualized by selling more of its current products/services to its current customers or buyers. It is the least risky for any company to pursue. For example: if we are selling a six-pack of coca – cola, then we can push for a 12-pack, 24-pack, and so on.

Answer 90

Market penetration

Question 91

is the process where a company can sell more of its current products by seeking and tapping new markets. It is a little more challenging.

Answer 91

Market development

Question 92

is an internal growth strategy where the company sells new products to an existing market. In this strategy, there is a need for the organization to be more creative in coming up with differentiated products and services.

Answer 92

Product development

Question 93

is a product/service mix growth strategy that involves creating differentiated products for a new customer. In short, it is new products for a new customer.

Answer 93

Diversification

Question 94

cycle refers to the length of time a product is introduced to consumers into the market until it's removed from the shelves.

Answer 94

LIFE CYLCLE STRATEGIES

Question 95

is the period of launching the product for acceptance. In this phase, the product is new; hence, there is a need to create awareness. Strategies include promotions, giving discounts, and market development.

Answer 95

The introduction stage

Question 96

is the phase where the product gains acceptance by the consumers. In this stage, sales and profit slowly increase and emphasis is now on continuous market development and improvement. Competition is more challenging at this stage.

Answer 96

The growth stage

Question 97

is the period where the product has reached its penultimate level. Here, the established product trends to remain steady and the number of competitors increases.

Answer 97

The maturity stage

Question 98

is the period where the product begins to reach or is reaching its lowest point. Here, sales and profits decline and price competition is intense.

Answer 98

The decline stage