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