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