CHAPTER 9
  • 1. Strategy evaluation is the ______ stage of the strategic-management process.
A) Final
B) First
C) Third
D) Second
  • 2. Why is strategy evaluation important?
A) It helps organizations adapt to changes
B) It reduces competition
C) Strategies never change
D) It replaces strategy formulation
  • 3. Strategy evaluation should be:
A) Done only at year-end
B) A continuous process
C) Done every five years
D) Done only by top management
  • 4. Reviewing the underlying bases of strategy involves re-examining which matrices?
A) EFE and IFE
B) BCG and IE
C) QSPM and CPM
D) SWOT and SPACE
  • 5. Which question is asked when reviewing strategy foundations?
A) Are strengths and weaknesses still accurate?
B) Are profits increasing?
C) Are competitors reacting?
D) Are strategies confidential?
  • 6. Measuring organizational performance compares:
A) Employees and managers
B) Expected results and actual results
C) Current plans and budgets
D) Past and future strategies
  • 7. Which is a quantitative performance criterion?
A) Employee morale
B) Customer satisfaction
C) Market share
D) Product quality
  • 8. Which is a qualitative performance criterion?
A) Employee morale
B) Return on investment
C) Sales growth
D) Profit margin
  • 9. Taking corrective actions is necessary when:
A) Strategies are popular
B) Underlying factors remain stable
C) Performance exceeds expectations
D) Performance is significantly below expectations
  • 10. Corrective actions aim to:
A) Eliminate all risks
B) Replace management
C) Increase bureaucracy
D) Realign operations with strategic objectives
  • 11. Who developed the Balanced Scorecard?
A) Alfred Chandler
B) Peter Drucker
C) Michael Porter
D) Robert Kaplan and David Norton
  • 12. The Balanced Scorecard emphasizes that performance should be:
A) Market-based only
B) Balanced across multiple perspectives
C) Internally focused
D) Financial only
  • 13. Which Balanced Scorecard perspective asks, “How do customers see us?”
A) Learning and Growth
B) Customer
C) Internal Business Process
D) Financial
  • 14. Which perspective focuses on employee skills and information systems?
A) Customer
B) Learning and Growth
C) Community
D) Financial
  • 15. Corporate governance mainly refers to:
A) Oversight and direction by the board
B) Financial auditing
C) Marketing control
D) Daily operations
  • 16. The board of directors is elected by:
A) Customers
B) Employees
C) Managers
D) Shareholders
  • 17. Which is a key responsibility of the board of directors?
A) Managing daily operations
B) Hiring all employees
C) Creating marketing campaigns
D) Monitoring CEO performance
  • 18. A best practice in board composition is to:
A) Have more than 15 members
B) Let the CEO always be chairperson
C) Encourage interlocking directorships
D) Keep the board small and efficient
  • 19. The “art or science” issue in strategy management suggests that strategy should be:
A) Fully analytical
B) A blend of intuition and analysis
C) Purely intuitive
D) Based on guesswork
  • 20. Contingency planning focuses on:
A) Long-term budgeting
B) “What if?” scenarios
C) Competitor analysis
D) Employee training
  • 21. Auditing helps ensure:
A) Accountability and compliance
B) Employee motivation
C) Higher market share
D) Faster decision-making
  • 22. Effective strategic management should focus on:
A) People and dialogue
B) Thick documents
C) Bureaucratic processes
D) Strict routines
  • 23. Which guideline promotes ethical behavior?
A) Strengthen “Good ethics is good business”
B) Keep strategies secret
C) Avoid bad news
D) Pursue many strategies
  • 24. Strategy evaluation is compared to a car dashboard because it:
A) Looks technical
B) Works only at the end
C) Shows only financial data
D) Provides continuous feedback for adjustment
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