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