CHAPTER 6-7
  • 1. What is the main goal of the Strategy Analysis and Choice stage?
A) To control employee performance
B) To generate, evaluate, and select strategies
C) To collect raw data
D) To implement strategies
  • 2. Strategy Analysis and Choice mainly involves decisions that are:
A) Fully subjective
B) Fully objective
C) Random
D) Subjective based on objective information
  • 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 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) CPM
C) QSPM
D) IFE Matrix
  • 6. The Strategy-Formulation Analytical Framework has how many stages?
A) Three
B) Two
C) Five
D) Four
  • 7. What is the main purpose of the Input Stage?
A) Choosing the best strategy
B) Implementing strategies
C) Estimating costs
D) Summarizing basic internal and external information
  • 8. Which tool belongs to the Matching Stage?
A) SWOT Matrix
B) QSPM
C) EFE Matrix
D) IFE Matrix
  • 9. The SWOT Matrix is mainly used to:
A) Measure industry growth
B) Match internal and external factors
C) Analyze competitors’ profits
D) Rank strategies objectively
  • 10. Which SWOT strategy uses strengths to avoid threats?
A) WO
B) WT
C) ST
D) SO
  • 11. Which strategy type is considered defensive?
A) SO
B) WO
C) WT
D) ST
  • 12. Why must strategies be specific?
A) To simplify matrices
B) To estimate costs accurately
C) To avoid competition
D) To sound professional
  • 13. One limitation of the SWOT Matrix is that it:
A) Is too complex
B) Requires financial data only
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) Market share and growth
B) Employee performance
C) nternal and external positions
D) Sales and profit
  • 15. Which is an internal dimension of the SPACE Matrix?
A) Financial Position
B) Stability Position
C) Market Growth
D) Industry Position
  • 16. An organization located in the Aggressive quadrant should focus on:
A) Integration and intensive strategies
B) Retrenchment
C) Liquidation
D) Defensive tactics
  • 17. The BCG Matrix is mainly used by:
A) Multidivisional firms
B) Small businesses
C) Single-product firms
D) Non-profit organizations
  • 18. What are the two dimensions of the BCG Matrix?
A) Strengths and weaknesses
B) Profit and cost
C) Market share and industry growth
D) Internal and external factors
  • 19. Which BCG quadrant represents high market share and low growth?
A) Dogs
B) Stars
C) Question Mark
D) Cash Cow
  • 20. The IE Matrix uses which scores on its axes?
A) IFE and EFE total weighted scores
B) ROI and liquidity
C) Sales and profit
D) Market share and growth
  • 21. Which IE Matrix cells suggest “Grow and Build” strategies?
A) Cells I, II, and III
B) Cells IV, V, and VI
C) Cell V only
D) Cells VII, VIII, and IX
  • 22. The Grand Strategy Matrix is based on:
A) Culture and politics
B) Profit and cost
C) Strengths and weaknesses
D) Competitive position and market growth
  • 23. Firms in Quadrant III of the Grand Strategy Matrix should consider:
A) Retrenchment, divestiture, or liquidation
B) Market penetration
C) Product development
D) Forward integration
  • 24. Which matrix is used in the Decision Stage?
A) SWOT
B) BCG
C) QSPM
D) SPACE
  • 25. The main purpose of QSPM is to:
A) Objectively compare alternative strategiesAnalyze competitors
B) Analyze competitors
C) Generate strategies
D) Implement strategies
  • 26. Why should wild cost guesses be avoided?
A) They affect culture
B) They may result in financially infeasible strategies
C) They slow planning
D) They reduce creativity
  • 27. Strategy analysis is compared to playing chess because:
A) Both are games
B) Every move affects future decisions and outcomes
C) Both rely on luck
D) Both are easy to learn
  • 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) Managers ignore objectives
D) Strategies are always wrong
  • 29. Strategy implementation is often considered the most difficult stage because it:
A) Has fewer tools
B) Requires moving from thinking to action
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) 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) External opportunities
C) Long-term visions
D) Company policies
  • 32. Why are annual objectives important?
A) They eliminate competition
B) They serve as benchmarks for progress
C) They replace strategies
D) They reduce conflict
  • 33. Which is a key characteristic of effective annual objectives?
A) Qualitative only
B) Confidential
C) Quantitative and obtainable
D) Vague and flexible
  • 34. Policies are best defined as:
A) Specific guidelines that support objectives
B) General ideas
C) Informal practices
D) Long-term goals
  • 35. Why should policies be written whenever possible?
A) To reduce employee freedom
B) To increase workload
C) To ensure clarity and consistency
D) To replace objectives
  • 36. Resource allocation refers to:
A) Distributing resources to achieve objectives
B) Hiring employees only
C) Dividing profits among owners
D) Reducing company assets
  • 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) Avoidance
B) Confrontation
C) Delegation
D) Diffusion
  • 39. Alfred Chandler stated that:
A) Culture determines performance
B) Marketing drives all strategies
C) Structure determines strategy
D) Strategy determines structure
  • 40. Which organizational structure is simple and common for small firms?
A) Functional
B) Divisional
C) Strategic Business Unit
D) Matrix
  • 41. A major disadvantage of the functional structure is:
A) Poor specialization
B) High cost
C) Too much decentralization
D) Functional silos and poor communication
  • 42. Which structure is best for large firms with diverse products or markets?
A) Functional
B) Matrix
C) Strategic Business Unit
D) Divisional
  • 43. Employees having two bosses is a characteristic of which structure?
A) Functional
B) SBU
C) Matrix
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) Reconfiguring work processes
B) Outsourcing all activities
C) Hiring more workers
D) Increasing product prices
  • 46. One way to manage resistance to change is to:
A) Ignore employee concerns
B) Force compliance
C) Involve employees in decisions
D) Delay implementation
  • 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) Increase resistance
B) Eliminate competition
C) Reduce diversity
D) Align employee behavior with goals
  • 49. Promoting diversity in the workforce can:
A) Increase conflict only
B) Reduce creativity
C) Enhance competitiveness
D) Slow decision-making
  • 50. Market segmentation is important because it:
A) Reduces production costs
B) Divides customers into meaningful groups
C) Eliminates marketing expenses
D) Focuses only on pricing
  • 51. Perceptual mapping is used to:
A) Calculate profits
B) Measure employee satisfaction
C) Track production output
D) Show how products are viewed compared to competitors
  • 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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