CA Inter SM MCQs Set I

Sanjivni pharmaceuticals limited manufacturers a cough syrup zenus. It has modified zenus syrup, claiming that the zenus cough syrup is sugar-free, and the consumer will not feel drowsiness after consuming this cough syrup. Consumers found this product as unique. The sales of zenus cough syrup have increased as expected. The price of this sugar- free syrup is higher by 20% than the earlier syrup. Identify the strategy adopted by sanjivni pharmaceuticals limited.

Everyouth beauty products limited, the makers of feel-fresh soaps have been suffering from low sales volume from the last six months due to stiff competition. To regain its position, everyouth beauty products limited launched various schemes such as ‘win a phone every hour’, scratch cards, buy 1 get 1 free and contest on social media. This resulted into increase in sales. Which type of promotional activity did everyouth beauty products limited adopted?

Abc ltd. Has identified that all three of its main products are at the maturity phase of the product life cycle. Which of the following is abc ltd. Likely to be experiencing due to this?

Drishti care is a not-for profit eye hospital and research centre. Which one of the following statements is likely to relate to drishti care’s vision, rather than its mission statement?

Abc is a marketing consultancy business. Abc’s most recent corporate analysis has identified that three new businesses have recently entered its market and started aggressively targeting abc’s key client. As part of abc’s corporate analysis, these three new businesses would be a

Trekking poles is a small company based in the himalayan ranges in india. It is known in the region for its hill walking sticks. Trekking poles sell specialist walking equipment in their small shop at the foot of the mountains. They do not have a website yet have been able to sell their products at premium prices. Which of the following one of porter’s generic strategies best fits trekking poles?

A ltd. Has recently decided to install a new it system to improve the efficiency of its payroll function. A ltd. Believes this will reduce the cost of running the payroll system by 20%. Which one of the following levels of strategy is the above it system most closely linked to?

An organisation during its strategy planning envisaged entire situation and created a strategy framework. But in mean time after implementation, it realised that its framework is not effective in certain unique unplanned situations. What could be the reason for such ineffectiveness?

A beverage company has more than 500 soft drink brands, but none of them is anywhere close to its premium brand one sip in awareness, revenue and profits. As per bcg’s matrix, one sip brand for the beverage company is?

Davis and lawrence have proposed three distinct phases for development of matrix structure. These phases are (1) cross-functional task forces (2) product/brand management and (3) ______.

A famous restaurant enjoys full occupancy during the lunch and dinner time for last few months. In fact, many customers go back as they have to wait for their turn. Between 15:00 hours to 18:00 hours, the occupancy rate is near to nil. To raise the footfalls of customers during this lean time, the owner offers a discount of 20% on total bill if a customer comes in these 3 hours. Which type of marketing strategy does the restaurant follow to attract the customers in the lean period?

Baba pvt ltd has seventeen factories, nine of which they recently gave to other producers on lease. This has increased their cash inflows to a great extent, and they are enjoying this surplus by investing the same in financial assets. Such a strategy can be termed as which of the following?

Shreya, the owner of kalakaari boutiques, wanted to reduce uncertainty of their business strategy for which she gathered a lot of information from peers, groups, industry reports and experts. But it did not give her comfort to take up new strategies. What tool can help her in this regard?

Mixfix was having a tough time with its operations and wanting to restructure itself from scratch. For this, they consult a veteran in business strategy, mrs. Sunita k, who post analysis of their business said, ‘your dead business is worth more than alive’. What did mrs. Sunita hint at?

Systematic and continuous monitoring of the business environment to verify the accuracy of assumptions on which strategy is built is achieved by?

Dmart sells fast moving consumer goods at wholesale prices to retail customers, is a strategy of?

The philosophical base of strategic management falls within the concept
Of-

During which stage of the product life cycle will marketing strategies need to concentrate on differentiating a product from competing products, building brand loyalty and offering incentives to attract competitor’s customers to switch?

Meba ltd. Had a huge capacity of 40,000 kilo litres production of kerosene oil, and they were able to achieve 90% of it almost always, while the teams were also aware that they can achieve 100% capacity with very less efforts, but always kept margins. Further, the business team was planning to setup two more plants of 20,000 kilo litre capacity each in the next five years. This was a welcomed move from state governments as well. From the above, which of the following aspects of the objective has not been given much importance?

In context to bcg matrix, which of the following statements is not correct?

 Dee limited is an international clothing retailer. The company is making the following decisions: I. Should another range of shops be established? Ii. Should the company float more share capital? Iii. How will the premises be fitted out for the new range of shops?  Which of the above decisions will be taken by corporate level managers?

Ever grand group is a diversified company active in a wide range of business lines, including financial services, fertilizers, information technology enabled services (ites), fmcg and real estate. The board of directors understand the need of the hour and are determined to further develop the ites business, whereby they want better allocation of human resources and provision of industry-best customer services. To achieve the same, they have suggested implementation of specific business strategies but the managers are facing difficulties in allocating the responsibility for implementation of the business strategy amongst them. You being a management expert, indicate the appropriate persons responsible for translating general statements and business strategies pertaining to the ites strategic business unit (sbu) and ensure a smooth implantation.

 Velvet limited is a full-service airline. The company is making the following decisions:
I. Should a `no-frills`, `low-fare` subsidiary be set-up?
Ii. If it is set-up, how should the cabin staff be recruited? Which of the above decisions will be taken by corporate level managers?

Catalyst polymers, a textile producing firm, has witnessed unprecedented sales growth in the last few years due to favorable market conditions abroad. As a result, the company diversified its activities to chemical manufacturing, steel forging and metal dye manufacturing. The investment in steel forging in particular has not been successful due to strict environmental laws enacted by the government. The said strategic business unit (sbu) though generates enough cash to sustain but does not have much future and sometimes requires cash for survival. Consequently, the management has engaged an expert in the field to help them classify the sbus. Employing the boston consulting group (bcg) growth-share matrix, the expert advised the company to disinvest or liquidate steel forging sbu. Classify the steel forging sbu into the most appropriate matrix.

Spark pvt. Ltd., an automobile seat manufacturing company has been witnessing superior growth compared to its competitors due to management`s greater emphasis on quality of production. In the previous board meeting, the management has decided to expand the existing business. The ceo will be travelling to south-east asia and africa for identifying new geographical places and new product dimensions and will try to establish new distribution channels to attract new customers abroad. Based on the igor ansoff`s product market growth matrix, identify which of the growth strategy the company is employing in the current case.

Training co. Operates a network of accounting training centres throughout europe, the us and australia. The business intends to enter developing markets in order to drive growth and has now decided to enter india which is 7,500 kilometres from the training co.’s uk headquarters. The board has suggested that it will require externally focused management information to move into india. Which of the following is an external factor(s) that the board should consider while implementing its strategy?

The specialist clothing company (scc) is a manufacturer of a wide range of clothing. Fashion is one of the five divisions of scc. Fashion is operating in a market with high growth and is a market leader. By the next year, it is predicted to have 10% of the market share in a growing market. Fashion should be classified as which of the following according to the bcg matrix.

Ns is the market leader in sportswear in beeland, selling a variety of sportswear products. The board has recently instituted a review of the competitive position of ns by commissioning a swot analysis. Match the columns in respect of the following elements of swot analysis:
Column a column b
(1) excellent brand awareness of ns (I) strength
(2) new product to be introduced by ns in the market for new sport at the world championship (ii) weakness
(3) child labour scandal in the sportswear industry which may cause a negative impact on the image of ns due to growth of social media (iii) opportunities
(4) loss of key brand ambassador of ns (iv) threats

Freshy drinks provides fruit juices to a number of super market chains that sell them under their own label. Its marketing manager explains, `we` have got a large number of products.  Our freshly squeezed orange juice is doing fine (high market share). The market for orange juice appears to be matured (low growth).  We`ve got advanced production and bottling equipment and long-term contracts with some of major growers. Which position best fits the `orange juice product` as per bcg matrix?

An advertising company has 12 staff ` 4 of whom are joint owners.   It has a strong client base across many industries such as healthcare, training, publishing and sports.  However, it has never taken working capital management and the financial side of the business seriously even to the extent that it can never be sure that the clients are billed properly.  It now has a chance to bid for a new large, national contract from a major company. Match the columns in respect of the following elements of swot analysis:   column a column b
1. Tender for a major contract a. Strength
2. Rival companies in the industry trying to pitch for and recruit the key staff b. Weakness
3. Well diversified client portfolio c. Opportunities
4. High level of receivables d. Threats

We have heard countless, heart breaking stories from companies that are facing immense pressure on their cash flow due to the economic crisis brought on by the covid-19 pandemic. To adapt to the changing environment, companies should undertake swot analysis. Which of the following is a `threat` affecting the companies?

Match the core competencies for the following industry:
1. Automobile industry a.  Styling, efficient dealer network performance
2. Food processing industry b.  Reputation, innovative new policies
3. Life insurance industry c.  Right mix available in each store, pricing
4. Super market industry d.  Health aspects, new product development, good distribution channel

Nicole has inherited a restaurant from her uncle. The restaurant had been under-performing and was closed six months ago. Nicole wants to begin a new restaurant in the premises with a new name and new cuisine.   The following are primary activities of the value chain that nicole should consider except:

Adolf play sportswear sells a variety of sportswear under its own well- known brand name. In order to have detailed strategies for the company`s objectives, which of the following cannot be considered as a `strength` as per swot analysis?  

A newspaper is planning for the next five years. Which of the following demographic influence(s) should it consider as part of its external environment analysis?
(I) tax on newspapers
(ii) import of raw materials will suffer if domestic currency weakens
(iii) increased mobility around the world requires different language version
(iv) carbon emissions from the use and products of paper ` newspaper

Y mart super market is planning for the next five years. Which of the following economic influences should it consider?
(I) unemployment rate
(ii) internet ordering
(iii) animal welfare
(iv) consumer legislation
(v) population size
(vi) interest rates

Members of infinite care, an ngo, have met and determined that they need to formulate a philosophical basis for their activities. Thereby they have come up with a statement:- `provide children till age 12, living in homeless or low-income situations, with the essential items they need to thrive ` at home, at school and at play` identify the area of strategic intent, which the members have stated?

The following is the message of a ceo to all his divisional heads: it is significant to understand the persisting need for developing new vistas of work, and that, of course, is preceded by the acute need for the ability to adapt the everchanging external world. We, at krom limited, have identified that embracing to digital technology is where our future lies, and we shall all pledge to make this transition a successful choice which will definitely entail a few organizational changes.`   the underlying message of the ceo in your opinion is that of a:

General public is discerning from buying air conditioning units based on the health ministry guidelines regarding emergence of a contagious viral pandemic. Consequently, nebula pvt ltd, a manufacturer of evaporation coils used in air conditioning units has faced significant loss in working capital due to sharp fall in demand. The company conducted financial assessment and developed a workable action plan based on short and long term financial needs. But for immediate needs, an emergency plan has been implemented. It includes selling scrap, asset liquidation and overheads cost reduction. Further, to avoid any such untoward event in future, they plan to diversify into newer business areas along with its core business. Identify the strategy opted by m/s. Nebula pvt ltd?  

Stylish fabric ltd., a clothes manufacturer is buying up a chain of retail outlets to differentiate its clothes from those of its competitors through branding. This gives an opportunity for higher margins.   Stylish fabric ltd. Will also be able to produce clothes as the shop demands them (jit) leading to reductions in inventory levels.   Which strategy has stylish fabric ltd. Adopted?

Beta company, a car manufacturer is buying up a supplier so that it gets a dedicated supplier with both guaranteed quality and price. The material could be manufactured when required by beta company leading to lower inventory levels.   Which strategy has beta company adopted?

X-olympus is a gaming software company specializing in developing games for zbox and gamestation-4. The company is facing stiff competition due to saturation of market and price wars, which h excessively favor and highlight their dependence on gaming console manufacturers. Thereby, the company desires to establish a competitive advantage over industry rivals by enhancing the gaming experience by expanding into edge-cloud gaming service on a monthly subscription basis. This service offering does not require dedicated gaming consoles yet provide customers game streaming in 4k resolution with an ample range of games to select from. This move is expected to insulate x-olympus from price wars and provide a competitive advantage. Kindly identify which of the michael porter`s forces and generic strategies perfectly suits x-olympus?

The directors of blaina packaging co. (bpc), a well-established manufacturer of cardboard boxes is considering whether to enter the cardboard tube market. Cardboard tubes are purchased by customers and these products are of various sizes, ranging from large tubes which are used for carpets to small tubes which are used for films and paper. Another company, plastic tubes co. (ptc), produces narrow, but increasing, range of plastic tubes which are capable of housing small products such as film and paper-based products. This is considered as which of the following porter`s force for bpc?

Perscopter, a manufacturer of private helicopter offers unique features that fullfill the demands of a narrow market. It competes in market based on its uniqueness and custom-oriented private helicopters. Perscopter provides limited number of high-end helicopters with ultimate features. Which business strategy is being followed by perscopter?

Mr. Vicky verma, a gwalior based entrepreneur, has entered into an exclusive-retail deal with an italian company selling `fantasy-3d`, a hologram led fan, which is being used for advertising at public places. Mr. Verma has procured a total of 500 units of the product and paid upfront as per the seller`s policy. This resulted in blocking of his working capital significantly and the shipment is expected in a month. Meanwhile his continued efforts of establishing relations with the marketing heads of corporates resulted in a series of meetings, where he demonstrated his specialist product knowledge by changing the hologram images on personalised basis and as per the specifications of the customer. The management of a big automotive company was impressed with the quality and adaptability of the product, and awarded a contract of 125 units to be displayed in the auto-maker`s showrooms. Identify and mark the product promotion strategy adopted by mr. Verma.  

Sport spirit (ss) is a medium sized sports retailer. It currently operates three shops in the city at centre locations. The management of sport spirit (ss) has a very careful recruitment policy; any applicant must have a `passion for sport`. Which one of the following functional strategies would best describe by ss?

Delta is an organisation specializing in information technology enabled services (ites) and communications business. Last year, the organisation had successfully integrated an artificial intelligence (ai) tool named `zeus` into the existing erp system. The ai tool, using deep learning technique provided a digital leap transformation in various business processes and operations. It has significantly diminished the role played by specialist managers of the middle management. This technological tool in addition to saving organisational costs by replacing many tasks of the middle management has also served as a link between top and bottom levels in the organisation and assists in quick decision making. The skewed middle level managers now perform cross-functional duties. Which type of organisational structure is the company transitioning into?

Abhishek a freelancer writes promotional materials. He decided to collaborate without requiring physical presence of employee, and hired virtual assistants to transcribe voice mail, update his website, and design powerpoint graphics. What kind of structure is he using for his business?

Last year, as a part of the organisational change process, project zeta was implemented by the cto of omega private limited. Zeta being an artificial intelligence enabled tool uses machine learning technology to speed up operations by transformation of various business processes and operations across finance, sales, delivery, human resources and other departments. Likewise, the unfreezing phase of the change process has been successfully completed by the company and the employees wholly recognize and accept the need for change. The company now wishes to reassign new patterns of behavior based on the three processes of compliance, identification and internalization. Kindly identify and mark the correct person who propounded this model.

The audit committee of theta ltd on observing a sluggish growth has advised a radical internal digital transformation. A strategy audit was proposed to identify problem areas and correct the strategic approaches that have not been effective so far. The strategy auditor while measuring organisational performance has identified gaps in flow between order booking by the sales department and the dispatch of product by the delivery department, which amounts to success of one department means failure for another. With reference to richard rumelt`s criteria for strategy audit, kindly identify and mark the correct evaluation criteria to be adopted.