Strategic Decision Making MCQs – The environment and uncertainty


Strategies are developed in order to achieve desired outcomes. These desired outcomes are inherent in the organisation's mission and vision.
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Strategic Decision Making MCQs

Strategies are developed in order to achieve desired outcomes. These desired outcomes are inherent in the organisation’s mission and vision. Here on MCQs.CLUB we have prepared easy Multiple-Choice Questions (MCQs) on Strategic decision making that fully cover MCQs strategic decision-making process with definition and characteristics, meaning and examples, the approaches, various frameworks used in and types of strategic decisions such as tactical decision with example, strategic business decisions examples. These effective MCQs with answers on strategy and decision making are also useful for competitive exams, business management exams and professional accountancy exams.

  1. An important part of developing a strategy is analysing an organisation’s position in relation to its external environment, in order to ensure that the proposed strategy fits with the environment.
    1. True
    2. False
  1. Which of the following is correct?
    1. The environment within which organisations operate influences what they do, and their ability to survive and grow.
    2. The external environment is the source of opportunities and threats for an organization.
    3. Both A&B
    4. None
  1. Which of the following is correct?
    1. The General Environment (or macro-environment) covers all the political/legal, economic, social/cultural and technological (PEST) forces which affect not only individual organisations but also the other actors in the micro-environment.
    2. The Task Environment (or micro-environment) relates to the factors in an organisation’s immediate environment, which affect its ability to operate effectively in its chosen markets, such as customers, competitors, customers, distributors and suppliers.
    3. Both A&B
    4. None
  1. Which of the following is NOT suggested by Porter in his “Porter’s five forces model”?
    1. The threat of new entrants to the industry
    2. The threat of substitute products or services
    3. The bargaining power of customers
    4. The bargaining power of suppliers
    5. The rivalry among current competitors in the industry
    1. (I) and (IV) only
    2. (II) and (V) only
    3. All of the above
    4. None
  1. The bargaining power of customers depends on:
    1. How critical the product is to the customer’s own business
    2. Customer’s ability to bypass the supplier or take over the supplier
    3. The skills of the customer’s purchasing staff, or price-awareness of customers
    4. All of the above
  1. The bargaining power of suppliers depends on:
    1. The threat of new entrants or substitute products to the supplier’s industry
    2. Whether switching costs for customers would be high
    3. The number of customers in the industry
    4. All of the above
  1. The intensity of competitive rivalry within an industry will affect the profitability of the industry as a whole. Rivalry levels are affected by:
    1. Market structure – Markets in which a number of competitors are roughly the same size are likely to have more intensive rivalry than, for example, a monopoly market
    2. Uncertainty about competitors’ strategy. There is a tendency to respond to uncertainty by formulating a more competitive strategy
    3. Cost structure – If fixed costs are high, firms may be tempted to compete on price. In the short term, any contribution to profit (to help cover fixed costs) is better than none at all
    4. All of the above
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