Chapter 1 Operations Management - Introduction

Question 1
Out of the following recent trends in Production and Operations Management, which one
involves the concept of clean - state approach or starting from scratch in redesigning the
business process?
A Technology
B Re-engineering
C Agile Manufacturing
D Lean Production
Question 2
Which one of the following recent trends in Production/Operations management involves
drastic measures or break through improvements to improve the performance of a firm?
A Corporate Downsizing
B Re-Engineering
C Just-in-Time
D TQM
Question 3
The example of worker involvement, as a recent trend in production/operations
management is
A SCM
B Just-in-Time
C Quality Circle
D MRP
Question 4
With reference to the operations of a manufacturing company, one of the important
decisions "How to reach the products to the customers?" Is related to which one?
A Quality Management
B Inventory Management
C Maintenance Management
D Distribution
Question 5
With reference to the aspects of customer service under Operations Management, if
Primary Consideration focuses on “Movement of a given, requested or acceptable
specificationˮ, its corresponding Principal function will be:
A Manufacture
B Transport
C Supply
D Service
Question 6
Conversion of inputs into outputs is known as:
A Operations management
B Application of technology
C Product
D Manufacturing product
Question 7
The desired objective of Production and Operations Management is:
A Use cheap machinery to produce
B To train unskilled workers to manufacture goods perfectly
C Optimal utilisation of available resources
D To earn good profits.
Question 8
Which of the following best describes operations management?
a) Planning, organizing and supervising the production of goods and services
b) Marketing the products to customers
c) Financial management of the organization
d) Human resource management
Question 9
Let's consider an example of a product manufacturing company, who is aware that it
needs to produce the products. One of the important aspects involved in the operational
planning which is related to the question "How much to produce?" is known as :
A Process Selection & Layout
B Aggregate Planning
C Demand Forecasting
D Quality Management
Chapter 2 Operations Planning
Question 1
In which one of the following facility layouts, the material or major component remains in a
fixed location, and tools, machinery and men as well as other pieces of material are
brought to this location?
A Product Layout
B Process Layout
C Hybrid Layout
D Static Layout
Question 2
Which of the following is NOT the Plant Layout Principle?
A Principle of sequence
B Principle of usage
C Principle of maximum travel
D Principle of minimum investment
Question 3
Which one of the following is associated with the question "How much space and capacity
does each economic activity centre need?"
A Facility location
B Facility layout
C Capacity Planning
D MRP
Question 4
Out of the following factors that are affecting Capacity Planning, which one is the Less
Controllable one?
A Machine break-downs
B Amount of labour employed
C Facilities installed
D Shifts of work per day
Question 5
The effective capacity is NOT influenced by which of the following factors:
A Forecasts of demand
B Plant and labour efficiency
C Subcontracting
D None of the above
Question 6
ABS Ltd, A manufacturing Company has a production line consisting of five work centres
in series with individual capacity in units per shift as are given. The actual output of the
line is 270 units per shift.

Work Centre P Q R S T

Capacity/Shift 350 320 360 325 300

Identify the bottleneck centre

A Work Centre P
B Work Centre R
C Work Centre T
D Work Centre S
Question 7
Which one of the following forecasting is more useful in production planning?
A Short-term
B Medium-term
C Long-term
D None of the above
Question 8
The first stage in production planning is:
A Process Planning
B Layout planning
C Operation Planning
D Factory Planning
Question 9
Production planning deals with:
A What should be the demand for the product in future?
B What production facilities are required and how these facilities should be laid out in
space available?
C What to produce and when to produce and where to sell?
D What is the life of the product?
Question 10
For a marketing manager, the sales forecast is:
A To plan the sales methods.
B Arranging the salesmen to different segments of the market
C Estimate of the amount of unit sales for a specified future period
D To distribute the goods through transport to satisfy the market demand
Question 11
Line of Best fit is another name given to
A Method of Least Squares
B Moving Average Method
C Semi Average Method
D Trend Line Method
Question 12
With reference to Aggregate Planning, identify which of the following statements is NOT
correct?
A It is an Intermediate-term planning.
B It is made operational through a master schedule, that gives the manufacturing
schedule.
C Facility planning and scheduling are closely related with the aggregate planning.
D It deals with the strategic decisions, such as purchase of facilities, introduction of new
products, processes, etc.
Question 13
Inventory cost per product in intermittent production is
A Higher
B Lowest
C Medium
D Abnormal
Question 14
Which one of the following is a disadvantage of Material Requirements Planning?
A Reduced Inventory
B Better customer service
C Lack of top management commitment
D Ability to price more competitive
Question 15
The lead time is
A Time for placeholders for materials
B Time of receiving materials
C Time between receipt of material and using materials
D Time between placing the order and receiving the materials
Question 16
MBT Ltd. is the manufacturer of bearings. The inventory holding cost per bearing
per month is 20 paisa. If its economic batch quantity EBQ is 4000 units (bearings)
then the minimum inventory holding cost at optimum run size will be:
A ₹4320
B ₹4510
C ₹4800
D None of the above
Question 17
Consider the following item that is being managed using a fixed time period model with
Safety Stock:
Weekly Demand – 50 units;
Review Cycle – 3 weeks;
Safety Stock – 30 units.
What is the average inventory level?
A 100 units
B 25 units
C 105 units
D None of these.
Question 18
Buffer stock is built to cater for
A Fluctuating load
B Machine breakdown
C Import substitution
D Diversification
Question 19
Just – in- time JIT is a philosophy that emphasizes _______________.
a) Holding large amounts of inventory
b) Reducing waste and improving quality
c) Increasing the lead time
d) Enhancing marketing efforts
Question 20
Which layout is most suitable for a factory producing a single product in large
volumes?
a) Process layout
b) Product layout
c) Fixed-position layout
d) Cellular layout
Question 21
In operations management, the term ‘lead timeʼ refers to:
a) Total time taken to complete a production process
b) The time between the initiation and completion of a production process
c) Time taken to market a product
d) Time taken to recruit new employees
Question 22
Weekly demand = 100 units, Review cycle = 5 weeks
Safety stock = 25 units. Calculate the inventory turnover for the item.
a) 23.8
b) 24.8
c) 18.90
d) 30.24
Question 23
The monthly requirement of raw material for a company is 3000 units. The carrying
cost is estimated to be 20% of the purchase price per unit, in addition to ₹2 per unit.
The purchase price of raw material is ₹20 per unit. The ordering cost is ₹25 per order.
Calculate EOQ?
a) 548 units
b) 590 units
c) 600 units
d) 500 units
Question 24
_______________ of a plant is the maximum rate of output (goods or services) the plant can
produce.
A Production
B Potential
C Demand
D Capacity
Question 25
RON Ltd., a manufacturer of ball bearings provides the following items that is being
managed using a fixed order Quantity Model with Safety Stock :
Annual Demand D 24000 Units
Order Quantity QO 3600 Units
Safety Stock S 400 Units
What is the average Inventory Level ?
A 2500 units
B 2400 Units
C 2200 Units
D None of A, B and C
 Chapter 3
Designing of Operational System and Control
Question 1
The non-linear iterative process that seeks to understand users needs challenge
assumptions, redefine problems and create innovative solutions to prototype and test, is
called:
A Product design
B Product mix
C Design thinking
D Product Life Cycle
Question 2
Which one is the objective of product design?
A Profit reduction in long run
B To increase the development time to maximum
C To increase the cost of the product
D To achieve the desired product quality
Question 3
Key aspects in process strategy does NOT include which of the following:
A Make or buy decisions
B Capital intensity
C Process flexibility
D Packaging
Question 4
The volume of goods or services as well as varieties of product or services that can be
associated with Batch processing is-
A One only
B A few
C Moderate
DVery large
Question 5
Most suitable layout for continuous production is
A Process layout
B Line layout
C Group technology
D Matrix layout
Question 6
In general number of product varieties that can be manufactured in Flow productionʼs:
A Five only
B Ten to twenty varieties
C One only
D Large varieties
Question 7
Generally the size of the order for production in Job production is
A small
B large
C medium
D very large
Question 8
The starting point of Production cycle is
A Market research
B Routing
C Product design
D Production Planning
Question 9
In which stage of the Product Life Cycle, profit starts declining, even though sales volume
tends to increase?
A Introduction
B Growth
C Maturity
D Decline
Question 10
Which one of the following basic process types is used when a very highly standardized
product is desired in high volumes?
A Batch Process
B Continuous Process
C Job Shop Process
D Project Process
Introduction Growth Maturity Decline
Question 42
The design activity that reduces variety among a group of products or parts is
referred to as:
A Reliability
B Simplification
C Standardization
D Specification
Question 45
Which one of the following characteristics of Good Product design refers to the ease of
manufacture with minimum cost (economic production)?
A Function or Performance
B Maintainability
C Productibility
D Specification
Question 47
The type of basic process types, which is used when a very highly standardised product is
desired in high volume is
A Job shop
B Batch
C Project
D Continuous
Question 55
Generally in continuous production, the production is carried out to:
A meet customer's order
B provide for stock and supply
C meet Government orders only
D satisfy a few rich customers
Question 48
Number of product varieties that can be manufactured in Mass production is
A Few varieties in large volumes
B One only
C Large varieties in small volumes.
D Two only
Chapter 4 Production Planning and Control
Question 1
Which of the following is not the method used for Operation Research problem?
A Analytical method
B Simulation method
C Trial and error method
D None of the above
Question 2
With reference to line balancing, the interval of time between two successive products
coming off the end of a production line or assembly line is referred to as--
A Wait time
B Run time
C Cycle time
D Task time
Question 3
Total station time/cycle time x Number of work stations) x 100 is known as
A Line efficiency
B Line smoothness
C Balance delay of line
D Station efficiency
Question 4
Linear Programming is a technique used for determining
A Production Programme
B Plant Layout
C Product Mix
D Manufacturing Sequence
Question 5
The objective function of a LPP is Z = 3x1 + 2x2. If x1 = 10 and x2 = 5, then the value of Z is:
(a) 35
(b) 40
(c) 45
(d) 50
Question 6
Point-rating method is closely associated with
A Transportation
B Assignment
C Queuing System
D Job Evaluation
Question 7
Which one of the following scheduling systems is used when a large number of items of
similar type are produced?
A Unit scheduling system
B Batch scheduling system
C Project scheduling system
D Mass scheduling system
Question 8
Routing and Scheduling becomes relatively complicated in:
A Flow production
B Batch production
C Mass production
D Job production
Question 9
A department store has one cashier. The average number of customers handled by the
cashier is 30 per hour. If the customers arrive at the store at mean rate of 25 per hour,
what will be the average number of customers in the system?
A 2 customers
B 3 customers
C 5 customers
D None of the above
Question 10
The type of production control which is typically found where a particular bottleneck
machine exists in the process of manufacturing is
A Block control
B Load control
C Flow control
D Batch control
Question 11
Production control concerned with:
A Good materials management
B Good product design.
C Strict control on labours
D Passive assessment of plant performance
Question 12
Computers are used in Production control in this area
A follow-up activity.
B to control labour.
C to disseminate information.
D Loading, Scheduling and Assignment works.
Question 13
In an organization, the Production Planning and Control department comes under
A Planning department
B Manufacturing department
C Personnel department
D R & D department
Question 14
The act of going round the production shop to note down the progress of work and
feedback the information is known as
A Dispatching
B Routing
C Follow up
D Trip card
E Inspection
Question 15
In route sheet or operation layout, one has to show
A A list of materials to be used.
B A list of machine tools to be used.
C Every work center and the operation to be done at that work center.
D The cost of the product.
Question 16
This aims at finding the best and most efficient way of using the available resources -
men, materials, money and machinery:
A Time Study
B Work Study
C Method Study
D Job Evaluation
Question 17
Wandaʼs Car Wash & dry is an automatic, five-minute operation with a single bay. On
a typical Saturday morning, cars arrive at a mean rate of eight per hour, with arrivals
tending to follow a Poisson distribution. Find the average number of cars in line.
a) 0857
b) 1.225
c) 0.667
d) 0.125
Question 18
Which one of the following production controls is typically found whenever a particular
bottleneck machine exists in the process of Manufacturing?
A Load Control
B Batch Control
C Block Control
D Flow Control
Question 19
__________________ is the science of using mathematical calculations and logics to generate
a time effective sequence of tasks considering any resource and cost constraints.
A Scheduling
B Plan
C Milestone
D Work-in-Progress
 Chapter 5
Productivity Management and Quality Management
Question 1
Which one of the following standards is associated with the “Quality Management and
Quality System Elements-Guidelinesˮ?
A ISO 9001
B ISO 9002
C ISO 9003
D ISO 9004
Question 2
Which one of the following ISO Standards evaluates the management of the entire
manufacturing process, from purchasing to design, to training?
A ISO 9000
B ISO 9001
C ISO 9003
D ISO 14000
Question 3
ISO Standard are reviewed every
A Year
B 2 Years
C 5 Years
D 10 Years
Question 4
SINC Ltd., a Copper plant has a design capacity of 40000 tons of Copper per day and an
actual output of 30000 tons of Copper per day. If its effective capacity is of 37500 tons
per day, its utilization will be
A 80%
B 75%
C 70%
D 60%
Question 5
The output of MOB Ltd., a small scale industry manufacturing hose couplings, is 18 pieces
per shift of 8 hours. If the standard time per piece is 24 minutes, what will be the
productivity of Small Scale Industry MOB Lid.?
A 60%
B 70%
C 75%
D 90%
Question 6
The ratio of "Value of output of goods of services "to "Capital assets employed" is
A Manpower Productivity
B Materials Productivity
C Capital Productivity
D Energy Productivity
Question 7
The best way of improving the productivity of capital is:
A Purchase automatic machines
B Effective Labour control
C Productivity of capital is to be increased through effective materials management
D To use good financial management.
Question 8
Which one is NOT an index of Productivity?
A Man-hour output
B Productivity ratio
C TQM
D Use of Financial Ratios
Question 9
Total Quality Management TQM focuses on:
a) Continuous improvement
b) Reducing production costs
c) Increasing the number of products
d) Expanding market share
Question 10
Which of the following is a principle of lean manufacturing?
a) Maximizing inventory levels
b) Reducing wastes
c) Increasing lead times
d) Focusing on mass production
Question 11
A steel plant has a design capacity of 70000 tons of steel per day. Effective capacity
of 56000 tons of steel per day and an actual output of 47000 tons of steel per day.
What is the efficiency of the plant?
a) 84%
b) 73%
c) 67%
d) 80%
Question 12
Which method is used to find the optimal production schedule that minimizes costs
using limited resources?
a) Linear programming
b) PERT/CPM
c) Lean accounting
d) Break even analysis
Question 13
Which of the following is NOT a core principle of Lean manufacturing?
a) Elimination of waste
b) Continuous improvement Kaizen
c) Respect for people
d) Maximizing inventory levels
Question 14
Which of the following refers to the practice of designing products so that they can
be easily and efficiently manufactured?
a) Total Quality Management
b) Lean manufacturing
c) Concurrent engineering
d) Design for Manufacture and Assembly DFMA
Question 15
In a particular plant there are 15 workers manufacturing a single product and the
output per month consisting of 29 days of that particular product is 270. How much
is the monthly productivity?
a) 15 units
b) 20 units
c) 18 units
d) 12 units
Question 16
Which one of the following ISO Standards evaluates the Management of the entire
manufacturing process, from purchasing to design, to training?
A ISO 9004
B ISO 9003
C ISO 9000
D ISO 9001
Question 17
A Zinc Plant of ZOS Ltd., manufactures product Z of 30 units per shift of 8 hours.
If the Standard time per unit is 12 minutes, what is the productivity per shift of 8 hours?
A 60 %
B 75 %
C 80 %
D 90 %
Chapter 6 Project Management
Question 1
The Slack Time of Tail event of Activity-G of a Project is 0 day. If the total Float and Free
Float of the activity G are 8 days and 5 days respectively, the Independent Float of activity
G will be :
A 3 days
B 4 days
C 5 days
D 8 days
Question 2
Which one of the following statements is NOT correct?
A LFT is calculated from the LFT of the head event.
B Slack can be calculated by adding EFT and LFT of any job.
C EFT is the sum of the EST and the time of duration for any event.
D The Total Project time is the shortest possible time required in completing the project.
Question 3
Which of the following statements is not correct in case of a Network Analysis in Project
Management?
A A job for which the slack is zero is known as critical job.
B An activity having independent float can be rescheduled without affecting the other
activities—preceding or succeeding.
C Negative float signifies increase in target time to finish the work in time.
D Free float is total float minus slack time of the head event.
Question 4
With reference to project management, identify which of the following statement is NOT
correct?
A Gantt chart is a principal tool used in scheduling and also in some methods of loading.
B Routing is the first step in the production planning.
C The cost of any activity is proportional to its time of completion.
D The free float can be calculated by subtracting EFT from EST.
Question 5
In a network diagram, the activity that must be completed prior to the start of an activity is
called as
A Successor activity
B Predecessor activity
C Concurrent activity
D Dummy activity
Question 6
The expected time for an activity of project B Is seven days. If the optimistic and
pessimistic time are three days and 15 days respectively. What will be the most likely time
of the activity?
A 10 days
B 6 days
C 12 days
D None of these
Question 7
A principal tool which is used in scheduling and also in some methods of loading is:
A Route chart
B Material chart
C Inspections chart
D Gantt chart
Question 8
Which one of the following is the project management software program?
A MS PowerPoint
B MS Excel
C MS Project
D MS Access
Question 9
‘Zʼ chart is a chart used in:
(a) Programme control.
(b) Job control.
(c) Cost control.
(d) Quality control.
Question 10
Which of the following is a technique used in operations management to assess
performance?
a) SWOT analysis
b) PERT/CPM
c) Market segmentation
d) Financial ratio analysis
Question 11
‘Zʼ chart is a chart used in:
a) Programme control.
b) Job control.
c) Cost control.
d) Quality control.
Question 12
The purpose of Gantt chart is to:
a) Schedule and monitor project activities
b) Control inventory levels
c) Improve product quality
d) Conduct market analysis
Question 13
The Slack Time of the Tail event and Slack time of Head event of an activity M are 15 days
and 2 days respectively. If the total Float of Activity M is 16 days. Free Float will be:
A 13 days
B 14 days
C 15 days
D 18 days
 Chapter 7
Economics of Maintenance and Spares Management
Question 1
Under Maintenance management, two types of costs and need to be balanced-one is cost
of premature replacement, other is cost of:
A Purchase of Raw Materials
B Breakdown
C Purchase of finished goods
D None of the above
Question 2
Advantage of preventive maintenance includes
A increased breakdown and downtime.
B many large scale repairs.
C decreased equipment life.
D better product quality.
Question 3
Which one of the following is the benefit of preventive maintenance?
A Increased breakdowns
B Increased downtime
C Higher large scale repairs
D Less standby or reserve equipment or spares required
Question 4
Identify which one of the following is NOT the objective of the maintenance:
A To keep all production facilities and allied facilities in an optimum working condition.
B To ensure specified accuracy to products and time schedule of delivery to customers.
C To keep the down time of the machine at the maximum.
D To keep the production cycle within the stipulated range.
Question 5
Identify which one of the following statement is NOT correct?
A Preventing maintenance includes lubrication, cleaning, periodic overhaul, etc.
B The two types of cost-cost of premature replacement and cost of breakdown-need to
be balanced.
C Wear and obsolescence are the two main causes of replacement of machinery in
every aspect of life.
D A machine is technically obsolete when another machine can do the same job more
efficiently with reduced time and also at a lower cost.
Question 6
One of the objectives of maintenance is:
A to prevent obsolescence.
B to ensure spare parts management.
C to satisfy customers.
D to extend the useful life of Plant & Machinery without sacrificing the level of
performance.
Question 7
Preventive maintenance is useful in reducing
A Inspection Cost
B Cost of premature replacement
C Shutdown Cost
D Set-up Cost of machine
Question 8
The type of spare parts which although acknowledged to have a long life or a small
chance of failure, would cause a long shutdown of equipment because it would take a long
time to get a replacement for them, are known as
A Insurance spares
B Rotable spares
C Regular spares
D Capital spares
Question 121
Which one of the following is NOT the advantage of Preventive Maintenance?
A Better product quality
B Greater safety to workers
C Increased breakdowns and downtime
D Fewer large-scale repairs
Chapter 8 Strategic Management - Introduction
Question 1
Which one of the following is the advantage of Strategic Management?
A It can be expensive.
B Impedes flexibility.
C The future doesn't unfold as anticipated.
D Discharges board responsibility
Question 2
Strategic Management can be defined as
A the direction and scope of an organization over the long run.
B a stream of decisions and actions which leads to the development of an effective
strategy or strategies to help achieve objectives.
C the statement of the future.
D a statement of the activities or steps needed to support a strategy.
Question 3
Which one of the following does NOT seem to be an advantage of the strategic
management?
A Discharges board responsibility
B Provides a framework for decision-making
C Forces an objective assessment
D It can be expensive
Question 4
Board of directors has certain basic tasks as follows:
A To monitor plans and programs of production.
B To design the course of strategic options and appointment of top management.
C To control utilization of resources.
D To monitor courses of actions for marketing management.
Question 5
For an actress in Bollywood, her pretty face would be a/an
A Asset
B Strategic asset
C Core competency
D Capability
E All of the above
Question 6
A company's actual strategy is
A mostly hidden to outside view and is known only to top-level managers.
B partly proactive and partly reactive to changing circumstances.
C typically planned well in advance and usually deviates little from the planned set of
actions and business approaches because of the risks of making on-the-spot changes.
D mostly a function of the strategies being used by rival companies (particularly those
companies that are industry leaders).
Question 7
The monitoring, evaluating and disseminating of information from the external and internal
environments to key people within the organisation is called _________.
a. Strategy Formulation
b. Evaluation and control
c. Strategy Implementation
d. Environmental scanning
Question 8
Blue Ocean Strategy is concerned with:
a. moving into new market with new products.
b. creating a 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.
Question 9
_________is concerned with complexity arising out of ambiguous and non-routine situations
with organisation wide rather than operation-specific implications.
a. Operational management
b. Business level strategy
c. Strategic Management
d. Functional level strategy
Question 10
Vision is a statement of the:
A Past
B Present
C Future
D Achieve targets
Question 11
Vision is associated with-
A Types of markets
B Customer need or requirement
C Road map to Company's future
D Distinctive competencies
Question 12
The mission of a firm
A defines its reasons for existence.
B describes its future business.
C clearly provides the direction that the company wants to follow.
D promotes entrepreneurship'
Question 13
For an entrepreneur
A Mission is before the vision
B Vision is before the mission
C Both are developed simultaneously
D Profitability is most crucial
Question 14
What are enduring statements of purpose that distinguish one business from other Similar
Firms?
A Policies
B Mission statements
C Objectives
D Rules
E Nature of ownership
Question 15
Which one of the following provides the standards for performance appraisal?
A Mission
B Vision
C Objectives
D Values
Question 16
Which one of the following refers to the job-specific goals of each individual employee?
A Performance Objectives
B Personal Objectives
C Professional Objectives
D Organizations Genomics
Question 17
Which one of the following statement is NOT correct?
A Vision is the statement of the future.
B The corporate mission is the purpose or reason for its existence.
C Targets are formed from vision and mission statement of organizations.
D Goals are objectives that are scheduled for attainment during planned period.
Question 18
Organisation culture is
A appreciation for the arts in the organisation.
B ability of the organization to act in a responsible manner to its employees.
C combination of A and B above
D deeper level of basic assumptions and beliefs that are shared by the members of the
firm.
E None of the above
Question 19
The ______of a company state how managers and employees should conduct themselves.
a. values
b. goals
c. objectives
d. vision
Question 20
_________are the day-to-day way in which an organisation operates and can be seen by
people both inside and outside the organisation.
a. Performances
b. Targets
c. Behaviours
d. Values
Question 21
The balanced score card is a ________approach to performance management.
a. top-down
b. bottom up
c. indirect
d. direct
Question 22
In strategic management, what is the purpose of a mission statement?
a) To outline the specific actions, the organization will take
b) To describe the companyʼs reason for existence and core purpose
c) To provide detailed financial goals
d) To list the products and services offered by the company
Question 23
Which of the following is not a component of strategic management?
a) strategy formulation
b) strategy implementation
c) strategy evaluation
d) strategy decentralization
Question 24
Which approach focuses on creating new demand in an uncontested market space?
a) Competitive strategy
b) Red ocean strategy
c) Blue ocean strategy
d) Market segmentation strategy
Question 25
Which type of diversification strategy involves entering a new market with new
products?
a) Horizontal diversification
b) Vertical diversification
c) Conglomerate diversification
d) Concentric diversification
Question 26
Which of the following is NOT a component of the Balanced Scorecard
framework?
a) Financial perspective
b) Customer perspective
c) Internal business processes
d) Supplier relationships
Question 27
Which of the following is / are true for a Blue Ocean Strategy?
A Create and Capture new demand
B Beat the Competition
C Exploit existing demand
D Compete in existing Markets
Question 28
Which one of the following announces what the Company is providing to Society: either a
Service or a Product?
A Mission
B Vision
C Values
D Objectives
Question 11
_________are companies that are not currently competing in an industry, but have the
capability to do so if they choose.
a. Established companies
b. Potential competitors
c. Rivals
d. Competitors
 Chapter 9
Strategic Analysis and Strategic Planning
Question 1
Which one of the following provides the broad 'data' from which to identify key drivers of
change?
A BCG matrix
B PESTEL analysis
C SWOT analysis
D Critical Success Factors
Question 2
PEST analysis refers to the following factors:
A Political, environmental, structural and technical
B Portfolio, energy, solar and transformation
C Purchase, economic, supply and transportation
D Political, economical, social and technological
Question 3
Environment is ________.
a. complex
b. dynamic
c. Multi-faceted
d. All of the above
Question 4
___________are the growth rate of the economy, interest rates, currency exchange rates,
and inflation (or deflation) rates.
a. Macro-economic forces
b. Demographic forces
c. Technological forces
d. Political forces
Question 5
__________ are outcomes of changes in the characteristics of a population.
a. Macro-economic forces
b. Demographic forces
c. Technological forces
d. Political forces
Question 6
Intensity of competition is in low return industries.
A low
B non-existent
C high
D not important
Question 7
A supplier group is powerful if
A it is not concentrated.
B its customers can backward integrate.
C it offers unique products.
D there are no switching costs.
Question 8
Which one of the following is related to a situation when consumers have a preference for
the products of established companies?
A Economics of Scale
B Brand Loyalty
C Customer switching costs
D Absolute cost advantages
Question 9
The existence of price-wars in the airline industry in India indicates that
A customers are relatively weak because of the high switching costs created by frequent
flyer programmes.
B the industry is moving towards differentiation of services.
C the competitive rivalry in the industry is severe.
D the economic segment of the external environment has shifted, but the airline
strategies have not changed.
Question 10
Price fixation for the first time takes place when
A a company develops or acquires a new product.
B introducing existing product into a new geographic area or a new distribution channel.
C a service, the company bids for a new contract work.
D All of the above
Question 11
_________are companies that are not currently competing in an industry, but have the
capability to do so if they choose.
a. Established companies
b. Potential competitors
c. Rivals
d. Competitors
Question 12
Absolute cost advantages arise from
a. superior production operations and processes
b. control of particular inputs required for production
c. access to cheaper funds
d. all of the above
Question 13
Which of the following can NOT be the called as a strength of an organization?
A Good Industrial relations
B Incentives from State Government
C Financially very sound
D Raw materials source at a distance
Question 14
In SWOTC Analysis, the Letter ‘Cʼ denotes:
A Champions
B Characteristics
C Challenges
D Core Values
Question 15
Which one of the following can be considered as 'Threat'?
A Poor product - mix
B Technology gap
C Free imports
D Demand gap
Question 16
While performing SWOT analysis, which one of the following can be treated as a Threat?
A Price cutting war
B Reduction in financing cost
C Lesser competition
D Industrial stability
Question 17
Portfolio Analysis is a term used
A to identify what strategy is needed to maintain a strong position or improve a weak
one.
B to find out a best alternative out of various alternatives available.
C to analyse products and business by market share and market growth.
D to make managers more adaptable to unforeseen changes.
Question 18
The BCG growth matrix is based on the following two dimensions:
A Market size and Market Growth
B Market share and Market growth
C Market size and Profit margins
D None of the above
Question 19
A _______________ is a business unit in a growing market, but not yet with high market share.
(a) cash cow
(b) dog
(c) question mark
(d) star
Question 20
_______includes those activities that enhance or maintain the value of product or service
such as installation, repair, training and spares.
a. Operations
b. Inbound logistics
c. Outbound logistics
d. Service
Question 21
______________transform these inputs into the final product or service.
a. Operations
b. Inbound logistics
c. Outbound logistics
d. Service
Question 22
What describes the categories of activities within and around an organization, which
together create a product or service?
(a) SWOT analysis
(b) BCG framework
(c) Value chain
(d) Brain storming
Question 23
Porterʼs five forces model is used to analyze:
a) Internal organizational strengths and weakness
b) Competitive forces within an industry
c) Market segmentation
d) Product life cycles
Question 24
Which of the following is a strategic tool used to prioritize a companyʼs products or
services to allocate resources effectively?
a) SWOT analysis
b) BCG matrix
c) PEST analysis
d) Porterʼs five forces
Question 25
The BCG Matrix categorizes products into:
a) Stars, Cows, Pigs, Dogs
b) Growth, Decline, Stability, Innovation
c) Cash cows, Dogs, Question marks, Stars
d) None of the above
Question 26
What does VRIO framework assess?
a) Industry attractiveness
b) Core competencies
c) External environment
d) Competitive intensity
Question 27
Which of the following is NOT a component of the McKinsey 7S Framework?
a) Strategy
b) Structure
c) Sales
d) Skills
Question 28
Which one of the following Sorts of Business defined by the Market growth / market share
axes of BCG Matrix, is a business unit with high market share in a matured market?
A Cash Cow
B Dog
C Star
D Question Mark (or problem Child)
 Chapter 10
Formulation and Implementation of Strategy
Question 1
While developing KRAs Key Result Areas) following can be the hurdle(s):
A Lack of clarity
B Distractions
C Top-Down Imposition Areas
D All of the above
Question 2
Any metric that measures whether an organization is meeting certain objectives and goals
that are set to help the organization succeed is called
A Key Result Areas
B Key Performance Areas
C Task Control
D Key Performance Indicators
Question 3
Which among the following is true?
a. BPR has resulted in major gains in efficiency.
b. BPR has resulted in major gains in speed.
c. BPR has resulted in major gains in quality.
d. BPR has resulted in major gains in efficiency, quality and speed.
Question 4
Redesign, Re-tooling and RE-orchestrating form the key components of-
A TQM
B BPR
C SWOT
D BCG Model
Question 5
The fundamental rethinking and radical redesign of business process to achieve dramatic
improvements in critical contemporary measures of performance such as cost, quality,
service and speed is called:
A Transformation
B Reprocessing
C Total Quality Management
D Business Process Re-engineering BPR
Question 6
Which, one of the following “Sˮ is not a part of McKinseyʼs 7s framework?
A skills
B style
C synergy
D Structure
Question 7
Mckinsey's 7-s framework consists of:
A Structure, Strategy, Software, Skills, Styles, Staff and Supervision
B Structure, Strategy, Systems, Skills, Styles, Syndication and Shared values
C Structure, Strategy, Systems, Skills, Steering power, Styles and Shared values
D Structure, Strategy, Staff, Skills, Systems, Shared values, Style
E None of the above
Question 8
Which one of the following is NOT a role of Marketing?
A It helps in sustaining and improving the existing levels of employment.
B It helps in the economic growth of a country.
C It helps in the discovery of entrepreneurial talent.
D It diminishes potential aggregate demand and thus reduces the size of the market
Question 9
Marketing Research Studies are undertaken
A to measure brand loyalty of a class of consumers.
B to predict market potential of a product on a future date.
C to understand product-price relationship.
D to make out a case for revision of an existing strategy.
E All of the above.
Question 10
Outsourcing is the
A spinning off of a value-creating activity to create a new firm.
B selling of a value-creating activity to other firms.
C purchase of a value-creating activity from an external supplier.
D use of computers to obtain value-creating data from the Internet.
Question 11
The managerial task of implementing strategy primarily falls upon the shoulders of
A the Chief Executive Officer CEO.
B all managers, each attending to what needs to be done in their respective areas of
authority and responsibility.
C first line supervisors, who have day-to-day responsibility for seeing that key activities
are done properly.
D All of the above
Question 12
_________ specifies what is to be accomplished by focusing on the end result.
A Output control
B Behavior control
C Premise control
D Implementation control
Question 13
A _________ is a combination of structures which could take the form of product and
geographical divisions or functional and divisional structures operating in tandem.
a. Functional structure
b. Matrix Structure
c. Project based structure
d. Transnational structure
Question 14
A _________ is based on the primary activities that have to be undertaken by an organisation
a. Functional structure
b. Matrix Structure
c. Project based structure
d. Transnational structure
Question 15
The test is a catch-all category, indicating that the structure must fit legal, stakeholder,
trade union or similar constraints.
(a) The Feasibility Test
(b) The People Test
(c) The Parenting Advantage Test
(d) The Specialised Cultures Test
Question 16
In a fast-moving world, an important test to determine the extent to which a design will
allow for change in the future is called?
a. The Feasibility Test
b. The Flexibility Test
c. The Parenting Advantage Test
d. The Specialised Cultures Test
Question 17
Which type of strategy focuses on gaining a competitive advantage by being the
lowest cost producer?
a) Differentiation strategy
b) Cost leadership strategy
c) Focus strategy
d) Diversification strategy
Question 18
Which type of strategy focuses on serving a specific market niche or segment?
a) Cost leadership strategy
b) Differentiation strategy
c) Focus strategy
d) Diversification strategy
Question 19
Which one of the following design Tests asks whether a proposed Structure will set up
links between parts of the organisations that are important but bound to be strained?
A The People Test
B The Feasibility Test
C The difficult Links Test
D The Flexibility Test
Chapter 11 Digital Strategy
Question 1
Digital transformation drives change in:
a. customer experience.
b. operational processes.
c. business models.
d. all of the above.
Question 2
The process of ____________ requires coordination across the entire organization, and
involves business culture changes.
a. digital strategy
b. digitisation
c. digital transformation
d. data aggregation
Question 3
Categorising and organising the digitised data and making it ready for application of
further processes is called________.
a. Data aggregation
b. Data management
c. Workflow automation
d. Process component
Question 4
Data that can be stored, accessed and processed in the form of fixed format is
called__________.
a. unstructured data
b. semi-structured data
c. structured data
d. flexible data
Question 5
A collection of data that is huge in volume and is growing exponentially with time is called:
A Big data
B Huge data
C Block chain
D Cloud data
Question 6
Which among the following is not a characteristic of Big Data?
A Variety
B Volume
C Velocity
D Invariability
Question 7
A shared, immutable ledger that facilitates the process of recording transactions and
tracking assets in a business network is referred to as
A Artificial Intelligence
B Virtual Machine
C Machine Language
D Blockchain
Question 8
Which among the following is not a component of a block chain?
a. Distributed ledger technology
b. Immutable record
c. Smart contracts
d. Increased threat
Question 9
________ is similar to referral programs.
(a) Influencer marketing
(b) Affiliate Marketing
(c) Pay-per-click
(d) Content marketing
Question 10
_________is a form of paid advertising that allows marketing teams to essentially purchase
traffic to their website.
a. Influencer Marketing
b. Affiliate marketing
c. Pay-per-click
d. Content marketing
Question 11
Forecasting the weather is an example of:
(a) Narrow AI.
(b) General AI/human-level.
(c) Super AI.
(d) Deep- learning.
Question 12
Which among the following alternatives is not suited for Robotic process automation tools?
a. Repeatable
b. Predictable interactions with IT applications
c. Routine
d. Unpredictable events
Question 13
Which one of the following Digital Marketing Strategies is a form of paid Advertising that
allows Marketing Teams to essentially purchase traffic to their website?
A Email Marketing
B Mobile Marketing
C Pay-per Click PPC
D Affiliate Marketing
Question 14
Which one of the following types of Cloud Computing, is a distribution model that delivers
software applications over the Internet, these applications are often called web services?
A Infrastructure as a Service (laas)
B Platform as a Service Paas
C Software as a Service Saas
D Amazon Web Services AWS