Strategic Choices

30 original test MCQs, 2 marks each. Practice and separate-test stems differ. T001-T010 use one shared case below; T011-T030 stand alone.

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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Acorn Group: shared case for T001-T010

Acorn Group: one shared case for T 001-T 010 Acorn keeps a mature existing line efficient in its current product-market scope. It plans to sell an unchanged existing product in a genuinely new region and considers acquiring a supplier earlier in that product's value chain. A weak unrelated unit drains operating cash; core viability, funding and causes require diagnosis before turnaround/divestment choices. These moves must be coordinated rather than assuming every unit has the same direction. For BCG only, define high market growth as at least 10% and high relative share as at least 1. Relative share is the unit's percentage divided by the largest OTHER competitor's percentage in the same defined market/period. Units: A market growth 15%,unit share 30%,rival 20%; B 3%,40%,20%; C 12%,10%,25%; D 2%,5%,20%. These are supplied model assumptions, not observed companies or approved investments. Actual costs, cash generation, resource needs and risk are not supplied. Separately, Acorn proposes an alliance for research with a partner. Both remain independent/separate entities while sharing contributions, benefits and control in the proposed scope. Secret leakage, future competition, contribution/control and exit terms need review. No acquisition, alliance signing, disposal, closure, financing, staff action or information disclosure is authorised by this fictional scenario. The first ten questions use this same case and score independently; source holds and model limits remain visible.
Case componentValue / stated unit
High market growth cutoffAt least 10%
High relative share cutoffAt least 1
Relative share baseLargest other competitor, same market/period
SM-C04-T001 · 2 marks

Read shared case

Acorn retains a mature line efficiently, expands a new region and reviews a weak unit. Corporate direction?

SM-C04-T002 · 2 marks

Read shared case

Existing product sold in Acorn's genuinely new region: Ansoff cell?

SM-C04-T003 · 2 marks

Read shared case

Acorn's proposed purchase of its input supplier is what?

SM-C04-T004 · 2 marks

Read shared case

A growth 15%,shares 30/20 under high growth>=10% and high relative>=1 is what?

SM-C04-T005 · 2 marks

Read shared case

B growth 3%,shares 40/20 under the same cutoffs is what?

SM-C04-T006 · 2 marks

Read shared case

C growth 12%,shares 10/25 under the same cutoffs is what?

SM-C04-T007 · 2 marks

Read shared case

D growth 2%,shares 5/20 under the same cutoffs is what?

SM-C04-T008 · 2 marks

Read shared case

Acorn's cash-draining weak unit needs what before turnaround/divestment choice?

SM-C04-T009 · 2 marks

Read shared case

Acorn's research partners remain separate and share benefits/control. Form?

SM-C04-T010 · 2 marks

Read shared case

Which portfolio conclusion is defensible for Acorn?

SM-C04-T011 · 2 marks

Stability is called safe status quo with no need to adapt. What correction fits?

SM-C04-T012 · 2 marks

Ansoff classification is ambiguous because the baseline market is unstated. What is needed?

SM-C04-T013 · 2 marks

A new product is sold to existing customers. How does SM4 resolve SM3 focus wording?

SM-C04-T014 · 2 marks

Sharing a brand is assumed to guarantee related-diversification synergy. Qualification?

SM-C04-T015 · 2 marks

A firm combines unrelated operations mainly to subsidise persistent losses. What should be tested?

SM-C04-T016 · 2 marks

A purchase is friendly and target strong. Can it still be acquisition?

SM-C04-T017 · 2 marks

A merger is proposed to eliminate competitive pressure. Which scope boundary matters?

SM-C04-T018 · 2 marks

Foreign local partner may aid entry. What cannot be inferred?

SM-C04-T019 · 2 marks

Emergency turnaround actions aim primarily at what?

SM-C04-T020 · 2 marks

Core business irreparably damaged but managers assume any restructuring guarantees survival. Correction?

SM-C04-T021 · 2 marks

Divestment is considered shameful regardless mismatch/alternative value. View?

SM-C04-T022 · 2 marks

Total abandonment of activities in strategic overview is called what?

SM-C04-T023 · 2 marks

ADL position adequate but vulnerable to stronger rivals is what?

SM-C04-T024 · 2 marks

ADL ageing/tenable table suggests divest/retrench. Must it automatically exit?

SM-C04-T025 · 2 marks

New product has 60% absolute share/profit, no market growth/rival share. Star classification?

SM-C04-T026 · 2 marks

Which BCG post-identification role prioritises short-term cash despite long-term effects?

SM-C04-T027 · 2 marks

An SBU increases share while sacrificing near-term earnings. Role?

SM-C04-T028 · 2 marks

GE attractiveness weights .4/.35/.25 with ratings 4/3/2 give score?

SM-C04-T029 · 2 marks

GE strength weights .3/.3/.4 with ratings 4/3/5 give score?

SM-C04-T030 · 2 marks

GE medium attractiveness/strong strength suggests invest/expand. What caveat applies?