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 top management
B) As many managers and employees as possible
C) Only external consultants
D) Only the strategy team
  • 4. Why is creativity important in strategy formulation?
A) To generate more alternative strategies
B) To simplify decisions
C) To avoid competition
D) To reduce costs
  • 5. Which of the following is NOT part of the Input Stage?
A) IFE Matrix
B) EFE Matrix
C) QSPM
D) CPM
  • 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) 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) IFE Matrix
C) QSPM
D) EFE Matrix
  • 9. The SWOT Matrix is mainly used to:
A) Analyze competitors’ profits
B) Rank strategies objectively
C) Match internal and external factors
D) Measure industry growth
  • 10. Which SWOT strategy uses strengths to avoid threats?
A) SO
B) WO
C) ST
D) WT
  • 11. Which strategy type is considered defensive?
A) WO
B) WT
C) ST
D) SO
  • 12. Why must strategies be specific?
A) To sound professional
B) To simplify matrices
C) To avoid competition
D) To estimate costs accurately
  • 13. One limitation of the SWOT Matrix is that it:
A) Requires financial data only
B) Does not show competitive advantage directly
C) Cannot generate strategies
D) Is too complex
  • 14. The SPACE Matrix helps determine which type of strategy to use based on:
A) Sales and profit
B) Market share and growth
C) nternal and external positions
D) Employee performance
  • 15. Which is an internal dimension of the SPACE Matrix?
A) Industry Position
B) Financial Position
C) Stability Position
D) Market Growth
  • 16. An organization located in the Aggressive quadrant should focus on:
A) Defensive tactics
B) Liquidation
C) Retrenchment
D) Integration and intensive strategies
  • 17. The BCG Matrix is mainly used by:
A) Non-profit organizations
B) Multidivisional firms
C) Single-product firms
D) Small businesses
  • 18. What are the two dimensions of the BCG Matrix?
A) Market share and industry growth
B) Strengths and weaknesses
C) Internal and external factors
D) Profit and cost
  • 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) Market share and growth
B) ROI and liquidity
C) Sales and profit
D) IFE and EFE total weighted scores
  • 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) Strengths and weaknesses
B) Culture and politics
C) Profit and cost
D) Competitive position and market growth
  • 23. Firms in Quadrant III of the Grand Strategy Matrix should consider:
A) Product development
B) Forward integration
C) Retrenchment, divestiture, or liquidation
D) Market penetration
  • 24. Which matrix is used in the Decision Stage?
A) SPACE
B) QSPM
C) BCG
D) SWOT
  • 25. The main purpose of QSPM is to:
A) Analyze competitors
B) Objectively compare alternative strategiesAnalyze 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 easy to learn
B) Both are games
C) Both rely on luck
D) Every move affects future decisions and outcomes
  • 28. Why does successful strategy formulation not always lead to successful implementation?
A) Managers ignore objectives
B) Implementation focuses only on planning
C) Strategies are always wrong
D) Implementation requires action, discipline, and commitment
  • 29. Strategy implementation is often considered the most difficult stage because it:
A) Has fewer tools
B) Requires moving from thinking to action
C) Requires moving from thinking to action
D) Needs more data
  • 30. Which of the following is NOT part of the strategy implementation framework?
A) Evaluating competitors
B) Allocating resources
C) Establishing annual objectives
D) Managing conflict
  • 31. Annual objectives are best described as:
A) Short-term, measurable milestones
B) Long-term visions
C) Company policies
D) External opportunities
  • 32. Why are annual objectives important?
A) They serve as benchmarks for progress
B) They eliminate competition
C) They replace strategies
D) They reduce conflict
  • 33. Which is a key characteristic of effective annual objectives?
A) Qualitative only
B) Quantitative and obtainable
C) Vague and flexible
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 reduce employee freedom
B) To increase workload
C) To ensure clarity and consistency
D) To replace objectives
  • 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) A sign of failure
C) Inevitable
D) Avoidable
  • 38. Which approach focuses on exchanging views to resolve conflict?
A) Diffusion
B) Delegation
C) Confrontation
D) Avoidance
  • 39. Alfred Chandler stated that:
A) Strategy determines structure
B) Culture determines performance
C) Structure determines strategy
D) Marketing drives all strategies
  • 40. Which organizational structure is simple and common for small firms?
A) Functional
B) Divisional
C) Matrix
D) Strategic Business Unit
  • 41. A major disadvantage of the functional structure is:
A) Poor specialization
B) Too much decentralization
C) High cost
D) Functional silos and poor communication
  • 42. Which structure is best for large firms with diverse products or markets?
A) Functional
B) Strategic Business Unit
C) Divisional
D) Matrix
  • 43. Employees having two bosses is a characteristic of which structure?
A) Functional
B) Matrix
C) Divisional
D) SBU
  • 44. Which organizational chart practice is considered a “Do”?
A) Let many managers report to one person
B) Keep span of control reasonable
C) Use functional structure for large firms
D) Allow co-managers
  • 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) Force compliance
B) Ignore employee concerns
C) Delay implementation
D) Involve employees in decisions
  • 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) Reduce diversity
B) Increase resistance
C) Eliminate competition
D) Align employee behavior with goals
  • 49. Promoting diversity in the workforce can:
A) Reduce creativity
B) Increase conflict only
C) Slow decision-making
D) Enhance competitiveness
  • 50. Market segmentation is important because it:
A) Divides customers into meaningful groups
B) Focuses only on pricing
C) Eliminates marketing expenses
D) Reduces production costs
  • 51. Perceptual mapping is used to:
A) Show how products are viewed compared to competitors
B) Track production output
C) Calculate profits
D) Measure employee satisfaction
  • 52. Strategy implementation is compared to building a house because:
A) Both require design software
B) Both are expensive
C) A good plan needs proper execution and coordination
D) Both depend on marketing
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