CHAPTER 9

1. Strategy evaluation is the ______ stage of the strategic-management process.

A) First
B) Third
C) Second
D) Final

2. Why is strategy evaluation important?

A) It helps organizations adapt to changes
B) It replaces strategy formulation
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 only by top management
D) Done every five years

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 strategies confidential?
B) Are profits increasing?
C) Are strengths and weaknesses still accurate?
D) Are competitors reacting?

6. Measuring organizational performance compares:

A) Expected results and actual results
B) Current plans and budgets
C) Employees and managers
D) Past and future strategies

7. Which is a quantitative performance criterion?

A) Market share
B) Customer satisfaction
C) Product quality
D) Employee morale

8. Which is a qualitative performance criterion?

A) Employee morale
B) Sales growth
C) Profit margin
D) Return on investment

9. Taking corrective actions is necessary when:

A) Performance exceeds expectations
B) Underlying factors remain stable
C) Performance is significantly below expectations
D) Strategies are popular

10. Corrective actions aim to:

A) Increase bureaucracy
B) Eliminate all risks
C) Replace management
D) Realign operations with strategic objectives

11. Who developed the Balanced Scorecard?

A) Peter Drucker
B) Robert Kaplan and David Norton
C) Michael Porter
D) Alfred Chandler

12. The Balanced Scorecard emphasizes that performance should be:

A) Balanced across multiple perspectives
B) Internally focused
C) Market-based only
D) Financial only

13. Which Balanced Scorecard perspective asks, “How do customers see us?”

A) Internal Business Process
B) Customer
C) Learning and Growth
D) Financial

14. Which perspective focuses on employee skills and information systems?

A) Financial
B) Community
C) Learning and Growth
D) Customer

15. Corporate governance mainly refers to:

A) Oversight and direction by the board
B) Daily operations
C) Financial auditing
D) Marketing control

16. The board of directors is elected by:

A) Managers
B) Shareholders
C) Customers
D) Employees

17. Which is a key responsibility of the board of directors?

A) Hiring all employees
B) Managing daily operations
C) Creating marketing campaigns
D) Monitoring CEO performance

18. A best practice in board composition is to:

A) Encourage interlocking directorships
B) Have more than 15 members
C) Let the CEO always be chairperson
D) Keep the board small and efficient

19. The “art or science” issue in strategy management suggests that strategy should be:

A) A blend of intuition and analysis
B) Based on guesswork
C) Fully analytical
D) Purely intuitive

20. Contingency planning focuses on:

A) Long-term budgeting
B) Competitor analysis
C) “What if?” scenarios
D) Employee training

21. Auditing helps ensure:

A) Faster decision-making
B) Higher market share
C) Accountability and compliance
D) Employee motivation

22. Effective strategic management should focus on:

A) People and dialogue
B) Strict routines
C) Bureaucratic processes
D) Thick documents

23. Which guideline promotes ethical behavior?

A) Strengthen “Good ethics is good business”
B) Avoid bad news
C) Pursue many strategies
D) Keep strategies secret

24. Strategy evaluation is compared to a car dashboard because it:

A) Provides continuous feedback for adjustment
B) Shows only financial data
C) Looks technical
D) Works only at the end

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