CHAPTER 6-7
  • 1. What is the main goal of the Strategy Analysis and Choice stage?
A) To generate, evaluate, and select strategies
B) To control employee performance
C) To implement strategies
D) To collect raw data
  • 2. Strategy Analysis and Choice mainly involves decisions that are:
A) Fully objective
B) Fully subjective
C) Random
D) Subjective based on objective information
  • 3. Who should be involved in the strategy analysis process?
A) Only external consultants
B) As many managers and employees as possible
C) Only the strategy team
D) Only top management
  • 4. Why is creativity important in strategy formulation?
A) To avoid competition
B) To reduce costs
C) To simplify decisions
D) To generate more alternative strategies
  • 5. Which of the following is NOT part of the Input Stage?
A) CPM
B) QSPM
C) EFE Matrix
D) IFE Matrix
  • 6. The Strategy-Formulation Analytical Framework has how many stages?
A) Four
B) Three
C) Two
D) Five
  • 7. What is the main purpose of the Input Stage?
A) Choosing the best strategy
B) Summarizing basic internal and external information
C) Implementing strategies
D) Estimating costs
  • 8. Which tool belongs to the Matching Stage?
A) EFE Matrix
B) SWOT Matrix
C) IFE Matrix
D) QSPM
  • 9. The SWOT Matrix is mainly used to:
A) Analyze competitors’ profits
B) Rank strategies objectively
C) Match internal and external factors
D) Measure industry growth
  • 10. Which SWOT strategy uses strengths to avoid threats?
A) SO
B) ST
C) WT
D) WO
  • 11. Which strategy type is considered defensive?
A) SO
B) WT
C) WO
D) ST
  • 12. Why must strategies be specific?
A) To estimate costs accurately
B) To simplify matrices
C) To avoid competition
D) To sound professional
  • 13. One limitation of the SWOT Matrix is that it:
A) Does not show competitive advantage directly
B) Requires financial data only
C) Cannot generate strategies
D) Is too complex
  • 14. The SPACE Matrix helps determine which type of strategy to use based on:
A) Sales and profit
B) Market share and growth
C) nternal and external positions
D) Employee performance
  • 15. Which is an internal dimension of the SPACE Matrix?
A) Industry Position
B) Stability Position
C) Market Growth
D) Financial Position
  • 16. An organization located in the Aggressive quadrant should focus on:
A) Retrenchment
B) Liquidation
C) Defensive tactics
D) Integration and intensive strategies
  • 17. The BCG Matrix is mainly used by:
A) Single-product firms
B) Non-profit organizations
C) Small businesses
D) Multidivisional firms
  • 18. What are the two dimensions of the BCG Matrix?
A) Strengths and weaknesses
B) Internal and external factors
C) Market share and industry growth
D) Profit and cost
  • 19. Which BCG quadrant represents high market share and low growth?
A) Cash Cow
B) Question Mark
C) Dogs
D) Stars
  • 20. The IE Matrix uses which scores on its axes?
A) Market share and growth
B) Sales and profit
C) IFE and EFE total weighted scores
D) ROI and liquidity
  • 21. Which IE Matrix cells suggest “Grow and Build” strategies?
A) Cells IV, V, and VI
B) Cells VII, VIII, and IX
C) Cell V only
D) Cells I, II, and III
  • 22. The Grand Strategy Matrix is based on:
A) Culture and politics
B) Strengths and weaknesses
C) Profit and cost
D) Competitive position and market growth
  • 23. Firms in Quadrant III of the Grand Strategy Matrix should consider:
A) Market penetration
B) Product development
C) Forward integration
D) Retrenchment, divestiture, or liquidation
  • 24. Which matrix is used in the Decision Stage?
A) BCG
B) SWOT
C) SPACE
D) QSPM
  • 25. The main purpose of QSPM is to:
A) Implement strategies
B) Analyze competitors
C) Generate strategies
D) Objectively compare alternative strategiesAnalyze competitors
  • 26. Why should wild cost guesses be avoided?
A) They affect culture
B) They slow planning
C) They may result in financially infeasible strategies
D) They reduce creativity
  • 27. Strategy analysis is compared to playing chess because:
A) Both rely on luck
B) Both are games
C) Both are easy to learn
D) Every move affects future decisions and outcomes
  • 28. Why does successful strategy formulation not always lead to successful implementation?
A) Strategies are always wrong
B) Implementation requires action, discipline, and commitment
C) Implementation focuses only on planning
D) Managers ignore objectives
  • 29. Strategy implementation is often considered the most difficult stage because it:
A) Requires moving from thinking to action
B) Has fewer tools
C) Needs more data
D) Requires moving from thinking to action
  • 30. Which of the following is NOT part of the strategy implementation framework?
A) Evaluating competitors
B) Establishing annual objectives
C) Managing conflict
D) Allocating resources
  • 31. Annual objectives are best described as:
A) External opportunities
B) Long-term visions
C) Company policies
D) Short-term, measurable milestones
  • 32. Why are annual objectives important?
A) They replace strategies
B) They reduce conflict
C) They serve as benchmarks for progress
D) They eliminate competition
  • 33. Which is a key characteristic of effective annual objectives?
A) Quantitative and obtainable
B) Qualitative only
C) Confidential
D) Vague and flexible
  • 34. Policies are best defined as:
A) Long-term goals
B) Specific guidelines that support objectives
C) General ideas
D) Informal practices
  • 35. Why should policies be written whenever possible?
A) To increase workload
B) To replace objectives
C) To reduce employee freedom
D) To ensure clarity and consistency
  • 36. Resource allocation refers to:
A) Hiring employees only
B) Dividing profits among owners
C) Distributing resources to achieve objectives
D) Reducing company assets
  • 37. Conflict during strategy implementation is:
A) Avoidable
B) Inevitable
C) A sign of failure
D) Always harmful
  • 38. Which approach focuses on exchanging views to resolve conflict?
A) Diffusion
B) Confrontation
C) Avoidance
D) Delegation
  • 39. Alfred Chandler stated that:
A) Marketing drives all strategies
B) Strategy determines structure
C) Culture determines performance
D) Structure determines strategy
  • 40. Which organizational structure is simple and common for small firms?
A) Strategic Business Unit
B) Matrix
C) Divisional
D) Functional
  • 41. A major disadvantage of the functional structure is:
A) Too much decentralization
B) Functional silos and poor communication
C) Poor specialization
D) High cost
  • 42. Which structure is best for large firms with diverse products or markets?
A) Strategic Business Unit
B) Matrix
C) Divisional
D) Functional
  • 43. Employees having two bosses is a characteristic of which structure?
A) Functional
B) Matrix
C) Divisional
D) SBU
  • 44. Which organizational chart practice is considered a “Do”?
A) Let many managers report to one person
B) Keep span of control reasonable
C) Use functional structure for large firms
D) Allow co-managers
  • 45. Reengineering in operations focuses on:
A) Reconfiguring work processes
B) Outsourcing all activities
C) Increasing product prices
D) Hiring more workers
  • 46. One way to manage resistance to change is to:
A) Delay implementation
B) Force compliance
C) Ignore employee concerns
D) Involve employees in decisions
  • 47. Strategic production decisions mainly affect:
A) Financial reporting
B) Logistics and costs
C) Corporate culture only
D) Advertising
  • 48. Linking performance and pay to strategy helps:
A) Reduce diversity
B) Align employee behavior with goals
C) Increase resistance
D) Eliminate competition
  • 49. Promoting diversity in the workforce can:
A) Increase conflict only
B) Enhance competitiveness
C) Reduce creativity
D) Slow decision-making
  • 50. Market segmentation is important because it:
A) Focuses only on pricing
B) Eliminates marketing expenses
C) Reduces production costs
D) Divides customers into meaningful groups
  • 51. Perceptual mapping is used to:
A) Calculate profits
B) Measure employee satisfaction
C) Show how products are viewed compared to competitors
D) Track production output
  • 52. Strategy implementation is compared to building a house because:
A) Both depend on marketing
B) Both require design software
C) A good plan needs proper execution and coordination
D) Both are expensive
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