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