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