Strategic Analysis: Internal Environment
30 original practice MCQs, 2 marks each. Practice and separate-test stems differ. Standalone drills across the chapter, with a separate case-based test pack.
Original practice, not official ICAI questions or suggested answers. Scores are temporary and not synced to Study Hub. Contract/current-rule/accounting/tax boundaries are included in the review pack.
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SM-C03-P001 · 2 marksA firm studies equipment but ignores authority and culture. What is absent?
Explanation
Correct answer D: Other internal people/process/structure/cultural elements.
Identity/capability extends beyond physical assets.
SM-C03-P002 · 2 marksA firm includes customers, suppliers and staff in strategic discussion. Which view is illustrated?
Explanation
Correct answer A: Stakeholder coalition beyond owners alone.
Internal/external parties can have interest/impact.
SM-C03-P003 · 2 marksMendelow power means what in this framework?
Explanation
Correct answer D: Ability to influence strategy or resources.
Power differs from interest.
SM-C03-P004 · 2 marksA stipulated high-power/low-interest lender belongs where?
Explanation
Correct answer A: Keep satisfied.
Classification follows explicit axes, not lender identity alone.
SM-C03-P005 · 2 marksA high-power/high-interest board belongs where?
Explanation
Correct answer B: Key player/manage closely.
Both influence and interest are high.
SM-C03-P006 · 2 marksLow-power/high-interest users should principally be what?
Explanation
Correct answer A: Kept informed, with useful feedback engaged.
Information should be relevant/authorised; interest is not disclosure authority.
SM-C03-P007 · 2 marksA regulator becomes interested in a specific issue. What matrix principle applies?
Explanation
Correct answer B: Reassess its quadrant because power/interest can change.
The grid is dynamic and case-dependent.
SM-C03-P008 · 2 marksWhich list gives the chapter's principal strategic drivers?
Explanation
Correct answer D: Industry/markets, customers, products/services and channels.
Driver choices and metrics are interlinked.
SM-C03-P009 · 2 marksTwo product lines serve different buyers. What market implication fits?
Explanation
Correct answer B: Each line may have its own market/customer needs.
Define products, customers and geography.
SM-C03-P010 · 2 marksSimilar competitive approaches and positions among rival firms define what?
Explanation
Correct answer A: A strategic group.
Similarity may involve breadth, price/quality, channels or technology.
SM-C03-P011 · 2 marksA strategic group map should principally plot what?
Explanation
Correct answer C: Evidence-based differentiating competitive characteristics.
Axes must convey meaningful approach/position differences.
SM-C03-P012 · 2 marksUnder explicit sales-share AREA encoding, larger circles mean what?
Explanation
Correct answer D: Larger supplied group industry-sales share.
Page 10 share instruction differs from page 11 reputation-size wording.
SM-C03-P013 · 2 marksA parent purchases a child's bag. Who is customer versus consumer?
Explanation
Correct answer A: Parent purchaser; child user, with interlinked needs.
Roles differ but can interact or coincide.
SM-C03-P014 · 2 marksPromotion seeks adoption of recycling behaviour. What type is illustrated?
Explanation
Correct answer B: Social marketing.
A social idea/practice campaign aims at behavioural change.
SM-C03-P015 · 2 marksFree installation help beyond the core offering primarily illustrates what?
Explanation
Correct answer C: Augmented marketing.
Additional benefits augment the product.
SM-C03-P016 · 2 marksA catalogue asks recipients to respond to an offer. What type fits?
Explanation
Correct answer B: Direct marketing.
Direct-response interaction distinguishes the example.
SM-C03-P017 · 2 marksFrequent-customer benefits seek durable bonds. What type fits?
Explanation
Correct answer C: Relationship marketing.
Relationships are cultivated, not guaranteed.
SM-C03-P018 · 2 marksA campaign improves attitudes toward a performer rather than a place or firm. Type?
Explanation
Correct answer A: Person marketing.
Object of attitudes is the individual.
SM-C03-P019 · 2 marksSeparate offers target several segments. Coverage strategy?
Explanation
Correct answer D: Differential marketing.
Multiple segment-specific offers differ from niche concentration.
SM-C03-P020 · 2 marksDiscounts shift irregular demand toward empty weekdays. Type?
Explanation
Correct answer A: Synchro-marketing.
Timing/capacity balance is the intent.
SM-C03-P021 · 2 marksA park reduces excessive entry demand without intending to destroy it. Type?
Explanation
Correct answer C: Demarketing.
Reduce/shift overfull demand; actual restrictions need scope.
SM-C03-P022 · 2 marksAn agency sells, a carrier transports and a contractor installs. Channel sequence?
Explanation
Correct answer C: Sales, product and service respectively.
Selling/physical handling/support roles differ.
SM-C03-P023 · 2 marksRobots without coordinated routines are called core competence. What correction fits?
Explanation
Correct answer B: Resources alone do not prove integrated capability or core competence.
Collective learning integrates skills and technologies.
SM-C03-P024 · 2 marksThree broad core tests in the chapter are what?
Explanation
Correct answer C: Competitor differentiation, customer value and application to other markets.
The three tests differ from VRIN and sustainability factors.
SM-C03-P025 · 2 marksA capability is valuable and rare but cheap to imitate. What conclusion fits VRIN?
Explanation
Correct answer D: It fails the costly-to-imitate condition for the full test.
Four criteria must be separately assessed.
SM-C03-P026 · 2 marksA strategically equivalent accessible capability exists. Which VRIN criterion is most directly challenged?
Explanation
Correct answer B: Non-substitutability.
Equivalent means can undermine defence even without direct copying.
SM-C03-P027 · 2 marksSkilled staff, weak dispatch, new demand and rival entry map to what?
Explanation
Correct answer A: Strength, weakness, opportunity and threat respectively.
Helpful/harmful and internal/external axes organise SWOT.
SM-C03-P028 · 2 marksWhat is a criticism of a simple SWOT list?
Explanation
Correct answer D: It does not itself evaluate factors in competitive context.
Benchmark, rank and connect factors to feasible choices.
SM-C03-P029 · 2 marksRivals can purchase a durable capability. Which sustainability factor is challenged?
Explanation
Correct answer B: Transferability.
Ease of access/transfer can erode persistence.
SM-C03-P030 · 2 marksReturns from a capability are captured by another rights-holder. Which factor matters?
Explanation
Correct answer C: Appropriability.
Who captures resource returns differs from whether capability creates value.