Rift Valley University
Department of Marketing Management
Strategic Management
Final Exam based Assignments 60%
Name________________________________ ID _______________Dep’t ______________________
Time allowed: 3 HR
PART ONE: - Say True if the statement is correct, false if not
1. The external environment consists of factors that can be directly influenced by the organization
itself.
2. Economic factors have a direct impact on the potential attractiveness of various strategies.
3. A new technology may destroy the industry.
4. Introduction of new technology dislocates some workers unless they are well equipped to work
on new machines.
5. An external audit focuses on identifying and evaluating trends and events which is under the
control of a single firm.
6. All sectors of the economy are affected equally by the technological developments.
7. Backward integration involves gaining ownership or increased control over distributors or
retailers.
8. Market development seeks to increase market share for present goods or services in present
market.
9. According to Michael porter’s focus means producing goods and services that fulfill the needs of
small groups of consumers.
10. Forecasts are educated assumptions about future trends and events.
11. A strategic mission concerns a firm’s future business path.
12. Strategies are the means by which long term objectives will be achieved.
13. Every firm has a common purpose and reason for being.
14. Strategies are the means by which annual objectives will be achieved.
15. Objective should be challenging, measurable, consistent, reasonable and clear.
16. Changing patterns of work and leisure are an example of economic factor.
17. Oil and labor monitored by key external variable.
18. Internet changes the nature of opportunities and threats.
19. No company or industry today is isolated against emerging technological developments.
20. Customer bargaining power is likely to be high when customers are price sensitive.
Strategy MGT Final Exam Based Assignment Page 1
PART TWO: - Choose the best answer from the alternative provide
1. The key economic variable that a firm should monitor include, except
A. Shift in economy C. Inter- state migration
B. Inflation rate D. Trade policy
2. To perform an external audit, individual can be asked to monitor various source of information.
Like ___________ except
A. Key magazines C. Newspapers
B. Trade journals D. Memo
3. Which one is the most common competitive factor in economic environment?
A. Price reduction
B. Aggressive promotional campaigns
C. Different products offering
D. Customer service
E. All
4. External forces of business organization affect
A. The type of products developed
B. The nature of positioning
C. Market segmentation strategies
D. The type of services offered
E. All
5. Abraham Lincoln did not know about automobiles, airplanes, radios or electric light. This implies
change
A. Change in culture
B. Change in political and legal forces
C. change in technology
D. change in demography
E. change in economy
6. Except one, technology has the following favorable effect on business as well as on society.
A. Technology is very much involved in our daily living.
B. Technology helps in discovering new product and services
C. With the advent of technology jobs tend to become more intellectual or up graded.
D. It provides safer and more comfortable working conditions to the employees.
E. None
7. The legal environment is concerned with how an organization does business and covers
A. Law of contract
B. B. legislation on competitive behavior
C. environmental registrations
D. how an organization treats its employees, employment law
E. All
Strategy MGT Final Exam Based Assignment Page 2
8. _________ is usually the most powerful of the five competitive forces.
A. Potential entry of new competitive
B. Potential development of substitute’s product.
C. Bargaining power of supplies.
D. Bargaining power of consumer
E. Rivalry among competitive firms
9. Which of the following is not condition that increase the bargaining power of consumers
A. When consumers are concentrated
B. If they are well informed about seller’s products, price and costs
C. If they are as such not particularly important to the seller.
D. If seller are struggling in the face of falling consumer demand.
10. Consumers bargaining power is likely to be high when, except
A. The product is undifferentiated and can be replaced by substitutes.
B. Switching to an alternative product is relatively simple and not costly.
C. The product is not strategic importance for the customer.
D. The market is dominated by a few large suppliers E. None
11. . One of the following statements about porter’s five competitive analyses is false?
A. During high switching cost supplier bargaining power is likely to be high.
B. Customer bargaining power is likely to be high when customers are price sensitive.
C. High initial investments & fixed cost are considered threat of new entrants.
D. During high market growth rate competition b/n existing players is likely to be high.
E. None
12. . During external audit, after the expert gather relevant information. He/she should be assimilates
& evaluated. These critical success factors should be ______________ except
A. Important to achieve long term & annual objectives.
B. Measurable
C. Large in number
D. Applicable to all competing firms
E. None
13. Which one is not key external factor of any business?
A. Average level of education
B. Attitude toward product quality
C. Ozone depletion
D. Government regulation
E. None
14. ____________ is about identifying rival firms & determining their strengths, weakness,
capabilities, opportunities, threats, objectives & strategies.
A. Competitive force
B. Legal force
C. Technological force
D. Demographic force
E. All
Strategy MGT Final Exam Based Assignment Page 3
15. Technological change can influence the following, except
A. Change in production techniques
B. Lead to the emergence of substitutes
C. Changing mix in the ethnic and religious back ground of the population
D. The type of products that are made & sold
E. All
16. According to porter primary activities of a business could be ________ except
A. Inbound logistics
B. Operations
C. Human resource management
D. Marketing and sales
E. All
17. Distinctive competencies
A. A firm’s strengths that cannot be easily matched or imitated by competitors.
B. Building competitive advantage
C. Strategies designed in part to improve on a firm’s weaknesses and turn to strength
D. All
18. Internal Audit gathers and assimilates information from
A. Management
B. Marketing
C. Competitor
D. Production
E. Research & development
19. Mergers, acquisitions, and takeovers among competitors allow for increased economies of scale.
This is ________________
A. Forward integration
B. Vertical integration
C. Horizontal integration
D. Backward integration
E. All except C
20. One of the following guideline for when market penetration is especially effective
A. When increased economies of scale provide major advantages.
B. When current markets are not saturated.
C. Market shares of competitors declining while total industry sales increasing.
D. Usage rate of present customers can be increased significantly.
E. All
21. One of the following is incorrect about consolidation strategy
A. It is a continuation of existing strategies
B. Focuses on areas of weakness and serving customer
C. Seeks to maintain their level of performance over time
D. Uses approach maintain present course
E. None
Strategy MGT Final Exam Based Assignment Page 4
22. . One of the following is false about definition of strategy
A. A strategy as means to achieve ends
B. A strategy which covers all the major aspects of an organization
C. A strategy as a short – term plan
D. A strategy a means to ensure that all parts of the plan are compatible
E. None
23. _______is a specific type of strategy that focus on an entry into new products or product line or
new service
A. Intensive strategy
B. Diversification
C. Retrenchment
D. Integration
E. None
24. Which of the following is false about business mission?
A. It is foundation for priorities ,strategies, plans and work assignment
B. It is declaration of an organization’s “reason for being”
C. It answers the pivotal question “what is our business?”
D. The mission statement should be established first and foremost than vision statement
E. A and D
25. Retrenchment strategy generally happen when, except
A. Falling sales
B. Aggressive competitive attack shakes the base
C. The economy is in turmoil
D. The industry filled with unpredictable variable
E. None
26. . Recently commercial bank of Ethiopian merge with Business and Contraction bank of Ethiopia,
this is an example ______________strategy
A. Stability
B. Diversification
C. Integration
D. Retrenchment
E. None
27. Which one of the type of retrenchment strategy applied for a firm sets up a business unit as a
separate business through a distribution of stock or cash deal
A. Spin-off
B. Divestment
C. Liquidation
D. Restructuring the business operation
28. Business firms must develop vision statement, it means
A. Answer the question what do we want to become?
B. Ensuring statement of purpose that distinguish one business from other similar firms
C. Describes the values and priorities of an organization
D. A and C
E. All
Strategy MGT Final Exam Based Assignment Page 5
29. Divestment of whole business is an end game strategy and it may be done via _________
A. Spin-off
B. Restructuring the business operation
C. Liquidation
D. Turnaround strategy
30. If a firm, which publishes and makes available different books in the market, establishing
website to reach customers, this is____________
A. Backward integration
B. Forward integration
C. Horizontal integration
D. Stability
31. Which of the following is not economic factors?
A. Import/Export factor
B. Price fluctuations
C. Fiscal polices
D. Tax rate
E. None
32. . One of the following is not variable of external environment?
A. Number of marriage
B. Population change by city, region and country.
C. Life style
D. Life expectancy rates
E. None
33. Which of the following is different?
A. Recycling
B. Waste management
C. Water pollution
D. Ozone depletion
E. None
34. Antitrust legislation, tax rate and patent laws are an example of ________ variable.
A. Economic
B. Political and government
C. Cultural
D. Technology
E. None
35. _______ is not an example of political governmental and legal variable.
A. Antitrust legislation
B. National election
C. Special tariffs
D. Trust in government
E. Number of patent
F. None
36. The internet is altering ________. Except,
A. Economics of scale
Strategy MGT Final Exam Based Assignment Page 6
B. Changing entry barriers
C. redefining relationship between industry and varies suppliers and customers
D. decrease speed of distribution
E. none
37. Technological change can ____________
A. increase cost barriers between businesses
B. create longer production runs
C. create shortages in technical skills
D. create new competitive advantages
E. C and D
38. Customers bargaining power is likely to be high which _____. Except,
A. The product is undiffertiated and can be replaced by substitute.
B. Switching to an alternative product is relatively expensive and costly.
C. The product is not strategic importance for the customer.
D. Customers are price sensitive.
E. None
39. Competition between existing players is likely to be high when______
A. There are few players of about the same size.
B. Players have different strategy.
C. High market growth rate.
D. Barriers for exit are high
E. None
40. The process of performing are external audit involves _______
A. Top level managers
B. Lower level managers
C. Middle level managers
D. Non-managers
E. All
F. Only A and C
PART THREE: - Discussion Questions|( Answer the following questions very clearly and
shortly) Choose only five questions
1. Internal factors are those where the firm does have greater degree of control, namely
2. How and when a firm will be forced to outsource some of its activities to the others?
3. Write and give example for each factor that makes a resource valuable?
4. List and explain all about Michael porter’s generic strategies based on the size of firms?
5. Explain all about BSC
6. List all possible types of strategies?
7. Explain all about retrenchment strategy including the definition, and variety of ways that a
company can achieve this
8. In your opinion, what are the three most important components to include in writing a mission
statement? Why?
9. What are the types of strategies we discuss in the class
10. State the strategic management model
Strategy MGT Final Exam Based Assignment Page 7
RIFT VALLEY UNIVERSITY
DEPARTMENT OF MARKETING MANAGEMENT
STRATEGY MANAGEMENT
FINAL EXAM
NAME __________________________________________________ ID______________
Answer Sheet
PART ONE: TRUE or FALSE
1 2 3 4 5
6 7 8 9 10
11 12 13 14 15
16 17 18 19 20
PART TWO: CHOOSE
1 6 11 16
2 7 12 17
3 8 13 18
4 9 14 19
5 10 15 20
21 26 31 36
22 27 32 37
23 28 33 38
24 29 34 39
25 30 35 40
Strategy MGT Final Exam Based Assignment Page 8
PART THREE: SHORT ASWER
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Strategy MGT Final Exam Based Assignment Page 9
