CONFIDENTIAL 3.

The following are some of the areas in which a corporation might establish its goals and objectives, EXCEPT A. B. C. D. Utilization of resources Technological leadership Reputation Contributions to employers

Section A (20 marks) Multiple-Choice Questions INSTRUCTIONS: Answer all the questions below. Choose one correct answer.

1. What is the importance of strategic management as more industries become global? A. To keep track of international developments and position a company for long-term competitive advantage. B. To keep track of national developments and position a company for long-term competitive advantage. C. To keep track of international developments and position a company for short-term competitive advantage. D. To reach the economies of scale necessary to achieve the low costs. 2. Which of the following is NOT related to strategy formulation? A. The development of long-range plans for the effective management of environmental opportunities and threats. B. It is in light of corporate strengths and weaknesses. C. It includes defining the corporate mission, specifying achievable objectives, developing strategies, and setting policy guidelines. D. It examines employee flows in, up, down, across and out of the organization.

4. The following are the theories that have been proposed to account for how organizations obtain fit with their environment, EXCEPT A. B. C. D. Competition theory Strategic choice perspective Organizational learning theory Institution theory

5. One of the main activities that mastered by a learning organization is: A. Control expenditure for company B. Experimenting with new approaches C. Analyzing financial statement D. Managing the strategic planning process 6. What theory proposes that, because of their long tenure with the corporation, insiders tend to identify with the corporation and its success? A. B. C. D. Agency theory Globalization theory Stewardship theory Corporation theory

7. Name the position that should elect by the outside directors. A. Family directors. B. Managing director 2001/2

CONFIDENTIAL C. Executive director D. Lead director 8. Executive leadership is define as: A. The strategy decision making for corporate. B. The identification of a corporate. C. The directing of activities toward the accomplishment of corporate objectives. D. The development and implementation of programs. 9. What is the purpose of environmental scanning? A. To help people be aware of cultures differences. B. To perform specialized services for the company. C. To identify the strategic factors that will determine the future of the corporation. D. To create sensitivity. 10. What is the simplest way to conduct environmental scanning? A. B. C. D. Strategic planning SWOT analysis Organization planning Financial Analysis 12. One of the reason for perceived to be unethical behavior is: A. Differences salary between business people and key stakeholders. B. Differences in values between business people and key stakeholders. C. Differences position between business people and key stakeholders. D. Differences religion between business people and key stakeholders. 13. Which of the following is the step in strategic decision-making process? A. B. C. D. Evaluate future performance results Evaluate implemented strategies Implemented selected cultures Analyze mission of organization

14. Inside directors of a board directors is also known as: A. B. C. D. Affiliated directors Family directors General directors Management directors

15. A reduction in the size of an organizational workforce is known as: A. B. C. D. Outplacement Layoff Downsizing Termination

11. What is the code of ethics? A. How an organization expects its employees to behave while on the job. B. Development and improvement of employees. C. Strength and weakness of employees. D. A set of rules for employees.

16. In an organizational structure, what is centralization?

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CONFIDENTIAL A. The degree to which decisionmaking authority is restricted to higher levels of management. B. The degree to which decisionmaking authority is given to lower levels in an organization hierarchy. C. The hierarchical division of labor that distributes formal authority and established how critical D. Decisions will be made. 17. The following are some of the most important financial ratios, EXCEPT A. B. C. D. Liquidity ratios Activity ratios Leverage ratios Accounting ratios D. Current assets__ Current liabilities

21. The following are the benefits of strategic management, EXCEPT A. Sharper focus on what is strategically important. B. Improved understanding of a rapidly changing environment. C. Develop high quality employees to satisfy the needs D. Clearer sense of strategic vision for the firm. 22. All of the following could be considered steps in forecasting, EXCEPT A. Understanding external conditions B. Projecting future staffing requirements C. A job analysis D. Projecting the supply of labor 23. A unique capability in the organization that creates high value and that differentiates the organization from its competition: A. B. C. D. SWOT Organizational culture Core competency None of the above

18. The identification and evaluation of corporate stakeholders is known as: A. B. C. D. Stakeholder management Stakeholder responsibility Stakeholder analysis Stakeholder planning

19. According to Kohlbergs system, which of the following is the level that characterized by a persons adherence to an internal moral code? A. B. C. D. The development level The principal level The conventional level The preconventional level

20. What of the following is the formula for current ratio? A. Current assets-inventory Current liabilities B. Inventory Current assets-current liabilities C. Current liabilities Current assets

24. Which are the THREE types of strategy that usually considered by the typical business firm? I. II. III. IV. Business strategy Corporate strategy Market strategy Functional strategy

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CONFIDENTIAL B. I,II and IV C. I, III and IV D. II, III and IV 25. According to Henry Mintzberg, what are the THREE most typical approaches, or modes, of strategic decision making? I. II. III. IV. A. B. C. D. Entrepreneurial Logical incrementalism Adaptive Planning I, II and III I,II and IV I,III and IV II, III and IV 28. Which are the phases of strategic management that a firm generally develops? I II III IV A. B. C. D. Basic financial planning Forecast-based planning Externally oriented planning Strategic management I, II and III I, II and IV II, III and IV All of the above

29. The characteristics of strategic decisions of an organization includes: I II III IV A. B. C. D. Directive Rare Flexible Consequential I, II and III I, II and IV I, III and IV II, III and IV

26. The social responsibilities includes: I. II. III. IV. A. B. C. D. Ethical Economic Discretionary Legal I and II I and III I and IV II and IV

30. The role of the board of directors in strategic management includes: I II III IV A. B. C. D. Invest Monitor Initiate and determine Evaluate and influence I, II and III I, II and IV II, III and IV All of the above

27. What are the THREE basic approaches to ethical behavior? I. II. III. IV. A. B. C. D. Individual rights approach Justice approach Utilitarian approach Morality approach I, II and III I, II and IV I, III and IV II,III and IV

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CONFIDENTIAL Section B (20 marks) Essay Questions INSTRUCTIONS: Section B consists of FOUR questions. Answer TWO ONLY. 1. Briefly explain FIVE categories of risks which are the effects of climate change on industries and companies. 2. List out FIVE board of director responsibilities. 3. Briefly explain the FOUR types of moral relativism. 4. List out the FIVE steps in basic financial analysis.

END OF QUESTION PAPER PREPARED BY EXAMINATION BOARD

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