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) Subjective based on objective information
B) Fully objective
C) Random
D) Fully subjective
  • 3. Who should be involved in the strategy analysis process?
A) As many managers and employees as possible
B) Only external consultants
C) Only top management
D) Only the strategy team
  • 4. Why is creativity important in strategy formulation?
A) To reduce costs
B) To simplify decisions
C) To generate more alternative strategies
D) To avoid competition
  • 5. Which of the following is NOT part of the Input Stage?
A) IFE Matrix
B) QSPM
C) CPM
D) EFE Matrix
  • 6. The Strategy-Formulation Analytical Framework has how many stages?
A) Five
B) Four
C) Three
D) Two
  • 7. What is the main purpose of the Input Stage?
A) Implementing strategies
B) Summarizing basic internal and external information
C) Estimating costs
D) Choosing the best strategy
  • 8. Which tool belongs to the Matching Stage?
A) IFE Matrix
B) SWOT Matrix
C) QSPM
D) EFE Matrix
  • 9. The SWOT Matrix is mainly used to:
A) Rank strategies objectively
B) Measure industry growth
C) Analyze competitors’ profits
D) Match internal and external factors
  • 10. Which SWOT strategy uses strengths to avoid threats?
A) WT
B) SO
C) ST
D) WO
  • 11. Which strategy type is considered defensive?
A) ST
B) WT
C) WO
D) SO
  • 12. Why must strategies be specific?
A) To avoid competition
B) To estimate costs accurately
C) To sound professional
D) To simplify matrices
  • 13. One limitation of the SWOT Matrix is that it:
A) Does not show competitive advantage directly
B) Is too complex
C) Cannot generate strategies
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) Market share and growth
C) Sales and profit
D) Employee performance
  • 15. Which is an internal dimension of the SPACE Matrix?
A) Stability Position
B) Financial Position
C) Industry Position
D) Market Growth
  • 16. An organization located in the Aggressive quadrant should focus on:
A) Liquidation
B) Defensive tactics
C) Retrenchment
D) Integration and intensive strategies
  • 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) 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) Dogs
B) Stars
C) Cash Cow
D) Question Mark
  • 20. The IE Matrix uses which scores on its axes?
A) IFE and EFE total weighted scores
B) Market share and growth
C) ROI and liquidity
D) Sales and profit
  • 21. Which IE Matrix cells suggest “Grow and Build” strategies?
A) Cell V only
B) Cells VII, VIII, and IX
C) Cells IV, V, and VI
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) Forward integration
C) Market penetration
D) Product development
  • 24. Which matrix is used in the Decision Stage?
A) QSPM
B) BCG
C) SWOT
D) SPACE
  • 25. The main purpose of QSPM is to:
A) Generate strategies
B) Objectively compare alternative strategiesAnalyze competitors
C) Analyze competitors
D) Implement strategies
  • 26. Why should wild cost guesses be avoided?
A) They may result in financially infeasible strategies
B) They reduce creativity
C) They affect culture
D) They slow planning
  • 27. Strategy analysis is compared to playing chess because:
A) Both are games
B) Both rely on luck
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 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) 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) Establishing annual objectives
B) Managing conflict
C) Evaluating competitors
D) Allocating resources
  • 31. Annual objectives are best described as:
A) Short-term, measurable milestones
B) Company policies
C) Long-term visions
D) External opportunities
  • 32. Why are annual objectives important?
A) They eliminate competition
B) They reduce conflict
C) They replace strategies
D) They serve as benchmarks for progress
  • 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 ensure clarity and consistency
B) To replace objectives
C) To increase workload
D) To reduce employee freedom
  • 36. Resource allocation refers to:
A) Dividing profits among owners
B) Reducing company assets
C) Distributing resources to achieve objectives
D) Hiring employees only
  • 37. Conflict during strategy implementation is:
A) Always harmful
B) Avoidable
C) A sign of failure
D) Inevitable
  • 38. Which approach focuses on exchanging views to resolve conflict?
A) Avoidance
B) Confrontation
C) Diffusion
D) Delegation
  • 39. Alfred Chandler stated that:
A) Structure determines strategy
B) Marketing drives all strategies
C) Strategy determines structure
D) Culture determines performance
  • 40. Which organizational structure is simple and common for small firms?
A) Divisional
B) Strategic Business Unit
C) Matrix
D) Functional
  • 41. A major disadvantage of the functional structure is:
A) High cost
B) Poor specialization
C) Functional silos and poor communication
D) Too much decentralization
  • 42. Which structure is best for large firms with diverse products or markets?
A) Strategic Business Unit
B) Divisional
C) Functional
D) Matrix
  • 43. Employees having two bosses is a characteristic of which structure?
A) Matrix
B) Functional
C) SBU
D) Divisional
  • 44. Which organizational chart practice is considered a “Do”?
A) Let many managers report to one person
B) Use functional structure for large firms
C) Keep span of control reasonable
D) Allow co-managers
  • 45. Reengineering in operations focuses on:
A) Outsourcing all activities
B) Hiring more workers
C) Reconfiguring work processes
D) Increasing product prices
  • 46. One way to manage resistance to change is to:
A) Involve employees in decisions
B) Force compliance
C) Delay implementation
D) Ignore employee concerns
  • 47. Strategic production decisions mainly affect:
A) Financial reporting
B) Advertising
C) Logistics and costs
D) Corporate culture only
  • 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) Increase conflict only
B) Enhance competitiveness
C) Slow decision-making
D) Reduce creativity
  • 50. Market segmentation is important because it:
A) Divides customers into meaningful groups
B) Reduces production costs
C) Eliminates marketing expenses
D) Focuses only on pricing
  • 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 require design software
B) Both are expensive
C) Both depend on marketing
D) A good plan needs proper execution and coordination
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