This set of Production Planning and Control Multiple Choice Questions & Answers (MCQs) focuses on “Business Environment Issues”.
1. Which planning sets the stage for the rest of the planning in the firm?
a) Functional
b) Strategic
c) Operational
d) Tactical
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Explanation: To start a planning for a certain product a proper strategy should be made first so that all the planning made further goes in the right direction.
2. What is the mission statement of an organization?
a) Accounts and responsibilities
b) Net worth
c) Purpose
d) Structure
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Explanation: Purpose of any organization is the main component which attracts the customers. Purpose of any organization defines the objective of the organization.
3. Which one of the following is not a complicating issue when it comes to business environment?
a) Customer learning
b) Competitor moves
c) Customer support
d) Multiple markets
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Explanation: Complicating issues include customer learning to understand the requirements of the customer, competitor moves to stay ahead of other companies, multiple markets include providing different services in different markets and product design changes include satisfaction of customer to the new technology.
4. Which one of the following should not be the mission statement?
a) Unlike any other mission statement in the industry
b) Realistic
c) Motivating
d) Specific
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Explanation: The mission statement in an industry should always be unique and different form all the other industries so as to stand separate from all and make their own name.
5. The _____ is the collection of businesses and products that make up the company.
a) Business strategy group
b) Business portfolio
c) Business cartel
d) Business organization
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Explanation: Business portfolio is the collection of all set of investments that the company has made on a particular product. A Product portfolio is the information of the product launched in multiple markets.
6. _____ is a tool by which management identifies and evaluates the various businesses that make up the company.
a) Portfolio analysis
b) Strategic planning
c) Control recycling
d) A strategy grid
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Explanation: Portfolio analysis is done to analyze products separately based on their profitability, performance and contribution to the company’s profit. It evaluates all the things which make the company.
7. What is the strategy of making more sales of current product to current market segments without altering the product called?
a) Market penetration
b) Market development
c) Product development
d) Diversification
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Explanation: The strategy of making more sales without changing the product is done by recognizing the need of the product in a particular market and utilizing it in the best way to reach to their customers.
8. What is called as the strategy of offering new products to current market?
a) Market penetration
b) Market development
c) Product development
d) Diversification
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Explanation: Bringing a new product to the market to as per the requirements of the customer is called as product development. It includes all the processes to bring a new product to the market.
9. What is the first step in marketing process?
a) Select target markets
b) Develop the marketing mix
c) Manage the marketing effort
d) Analyze the market opportunities
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Explanation: Analyzing the market is the first step in marketing as it gives ideas about the requirement of new product, its specifications and also the problems faced in the previous product.
10. A _____ consist of consumers who respond in a similar way to a given set of marketing efforts.
a) Market
b) Market segment
c) Market position
d) Target
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Explanation: Market segment is a group of people who share similar ideas which are combined together and the best possible way is taken out for marketing purposes.
Sanfoundry Global Education & Learning Series – Production Planning and Control.
To practice all areas of Production Planning and Control, here is complete set of Multiple Choice Questions and Answers.
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