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