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 marks

A 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 marks

A 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 marks

Mendelow power means what in this framework?

Explanation

Correct answer D: Ability to influence strategy or resources.

Power differs from interest.

SM-C03-P004 · 2 marks

A 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 marks

A 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 marks

Low-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 marks

A 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 marks

Which 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 marks

Two 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 marks

Similar 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 marks

A 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 marks

Under 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 marks

A 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 marks

Promotion 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 marks

Free installation help beyond the core offering primarily illustrates what?

Explanation

Correct answer C: Augmented marketing.

Additional benefits augment the product.

SM-C03-P016 · 2 marks

A 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 marks

Frequent-customer benefits seek durable bonds. What type fits?

Explanation

Correct answer C: Relationship marketing.

Relationships are cultivated, not guaranteed.

SM-C03-P018 · 2 marks

A 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 marks

Separate offers target several segments. Coverage strategy?

Explanation

Correct answer D: Differential marketing.

Multiple segment-specific offers differ from niche concentration.

SM-C03-P020 · 2 marks

Discounts shift irregular demand toward empty weekdays. Type?

Explanation

Correct answer A: Synchro-marketing.

Timing/capacity balance is the intent.

SM-C03-P021 · 2 marks

A 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 marks

An 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 marks

Robots 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 marks

Three 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 marks

A 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 marks

A 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 marks

Skilled 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 marks

What 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 marks

Rivals 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 marks

Returns 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.