CHAPTER 9
  • 1. Strategy evaluation is the ______ stage of the strategic-management process.
A) Third
B) Final
C) First
D) Second
  • 2. Why is strategy evaluation important?
A) It reduces competition
B) Strategies never change
C) It helps organizations adapt to changes
D) It replaces strategy formulation
  • 3. Strategy evaluation should be:
A) Done only by top management
B) A continuous process
C) Done every five years
D) Done only at year-end
  • 4. Reviewing the underlying bases of strategy involves re-examining which matrices?
A) BCG and IE
B) QSPM and CPM
C) EFE and IFE
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) Current plans and budgets
B) Employees and managers
C) Past and future strategies
D) Expected results and actual results
  • 7. Which is a quantitative performance criterion?
A) Customer satisfaction
B) Product quality
C) Employee morale
D) Market share
  • 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) Underlying factors remain stable
B) Performance is significantly below expectations
C) Strategies are popular
D) Performance exceeds expectations
  • 10. Corrective actions aim to:
A) Eliminate all risks
B) Increase bureaucracy
C) Replace management
D) Realign operations with strategic objectives
  • 11. Who developed the Balanced Scorecard?
A) Robert Kaplan and David Norton
B) Alfred Chandler
C) Michael Porter
D) Peter Drucker
  • 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) Internal Business Process
B) Customer
C) Financial
D) Learning and Growth
  • 14. Which perspective focuses on employee skills and information systems?
A) Customer
B) Financial
C) Community
D) Learning and Growth
  • 15. Corporate governance mainly refers to:
A) Daily operations
B) Financial auditing
C) Oversight and direction by the board
D) Marketing control
  • 16. The board of directors is elected by:
A) Shareholders
B) Employees
C) Managers
D) Customers
  • 17. Which is a key responsibility of the board of directors?
A) Hiring all employees
B) Managing daily operations
C) Monitoring CEO performance
D) Creating marketing campaigns
  • 18. A best practice in board composition is to:
A) Have more than 15 members
B) Encourage interlocking directorships
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) Fully analytical
B) Purely intuitive
C) Based on guesswork
D) A blend of intuition and analysis
  • 20. Contingency planning focuses on:
A) “What if?” scenarios
B) Competitor analysis
C) Long-term budgeting
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) Thick documents
B) Strict routines
C) People and dialogue
D) Bureaucratic processes
  • 23. Which guideline promotes ethical behavior?
A) Keep strategies secret
B) Pursue many strategies
C) Avoid bad news
D) Strengthen “Good ethics is good business”
  • 24. Strategy evaluation is compared to a car dashboard because it:
A) Shows only financial data
B) Provides continuous feedback for adjustment
C) Works only at the end
D) Looks technical
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