This set of Production Planning and Control Multiple Choice Questions & Answers (MCQs) focuses on “Strategies for Sales and Operations Planning”.
1. What is the general expression for overall purpose of an organization?
a) Objective
b) Goal
c) Vision
d) Mission
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Explanation: Apart from all the planning and forecasting done on a project, the overall purpose is to complete the mission which was made at the start of the production.
2. Which one of the following is not the branch of study research that makes up the strategy of study?
a) Strategy content
b) Strategic context
c) Strategy lenses
d) Strategy processes
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Explanation: There are three main branch of study research that makes up the strategy of study which is strategy content, strategic context and strategy processes.
3. Which of the following accurately categories the machines used by an organization?
a) Tangible, financial resources
b) Intangible, financial resources
c) Tangible, intellectual capital
d) Tangible, physical resources
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Explanation: The machines used by an organization should be tangible i.e. the items or machines must have a set value and physical resources are needed for a business to function.
4. What term is used for an organization’s abilities to renew and recreate its strategic capabilities to meet the needs of a changing environment?
a) Competent substitution
b) Core competence
c) Renewability
d) Dynamic capabilities
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Explanation: Dynamic capabilities are the firm’s ability to reconfigure the internal and external problems and combine them and build according to the changing environment.
5. What term is used for a situation where a competitor finds it difficult to identify the basis for an organization’s competitive advantage?
a) Interdependent causality
b) Casual dependency
c) Casual ambiguity
d) Ambiguous intercausality
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Explanation: Casual ambiguity is a tool used where a competitor finds it difficult to identify the basis for an organization’s competitive advantage. It discovers if the resources are valuable, rare and non-substitutable.
6. Which of the following is not a category of external stakeholders?
a) Environmental
b) Technological
c) Economic
d) Socio-political
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Explanation: External stakeholders are the groups of people who work outside the business and have no relation to the internal environment but are affected by the decisions made and action of the business.
7. Which of the following accurately relates to transformational change?
a) It is usually the result of a downturn in performance
b) It often occurs too early to result in an improvement in market position or jobs
c) It takes place frequently
d) It generally occurs in response to changes suggested by existing middle management
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Explanation: Transformational change is the change when there is a shift in business culture of the organization which results in the degradation of the success rate which is called downturn in performance.
8. What term is used for a situation where early events and decisions establish policy paths that have lasting effects on subsequent events and decisions?
a) Historicisation
b) Strategic drift
c) Cyclic strategy
d) Path dependency
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Explanation: Path dependency tells how a decision; a person or firm faces due to some decisions made in the past on some basis which it not true in the present.
9. Which of the following is not a way of carrying out an historical strategic analysis?
a) Historical narratives
b) Rigidity analysis
c) Cyclical influences
d) Chronological analysis
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Explanation: Strategic analysis is the process of conducting a research on a company and its operating environment. Analysis is done on the basis of previous data and influences based on them.
10. Which of the following is not one of the three layers of organizational culture?
a) Values
b) Beliefs
c) History
d) Paradigm
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Explanation: The three layers of organizational culture is paradigm which are the symbols of culture in the social and physical work environment, values which is the principle that shape our behavior and thinking and belief which are not objectively observable but manifest themselves in the behavior of people so strongly that any violation of such beliefs would be unthinkable.
11. Organizational culture has largely been created by previous management actions and decisions so can relatively easily be changed in future.
a) True
b) False
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Explanation: Organizational culture is not created by previous management but a reference is taken from the previous management actions and decisions are made.
12. Which of the following best explains the aim of collaboration?
a) To achieve advantage
b) To avoid competition
c) Neither to achieve advantage nor to avoid competition
d) To achieve advantage or avoid competition
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Explanation: While doing a collaboration with a firm, there is no chance of competition and also the firms will have advantage of sharing ideas, but the profit will remain the same for all the firms.
13. What term is used for corporate development beyond current products and market, but within the capabilities or the value network of the organization?
a) Backward integration
b) Related diversification
c) Vertical integration
d) Divergent diversification
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Explanation: Related diversification is used when a firm wants to develop beyond current products and market but within the reach of the firm till it can grow.
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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