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CHAPTER 9
Contributed by: Laong
  • 1. Strategy evaluation is the ______ stage of the strategic-management process.
A) First
B) Second
C) Third
D) Final
  • 2. Why is strategy evaluation important?
A) It reduces competition
B) It helps organizations adapt to changes
C) It replaces strategy formulation
D) Strategies never change
  • 3. Strategy evaluation should be:
A) Done only at year-end
B) Done every five years
C) Done only by top management
D) A continuous process
  • 4. Reviewing the underlying bases of strategy involves re-examining which matrices?
A) SWOT and SPACE
B) QSPM and CPM
C) EFE and IFE
D) BCG and IE
  • 5. Which question is asked when reviewing strategy foundations?
A) Are strategies confidential?
B) Are competitors reacting?
C) Are profits increasing?
D) Are strengths and weaknesses still accurate?
  • 6. Measuring organizational performance compares:
A) Past and future strategies
B) Current plans and budgets
C) Employees and managers
D) Expected results and actual results
  • 7. Which is a quantitative performance criterion?
A) Product quality
B) Market share
C) Employee morale
D) Customer satisfaction
  • 8. Which is a qualitative performance criterion?
A) Return on investment
B) Sales growth
C) Profit margin
D) Employee morale
  • 9. Taking corrective actions is necessary when:
A) Strategies are popular
B) Performance exceeds expectations
C) Performance is significantly below expectations
D) Underlying factors remain stable
  • 10. Corrective actions aim to:
A) Eliminate all risks
B) Increase bureaucracy
C) Replace management
D) Realign operations with strategic objectives
  • 11. Who developed the Balanced Scorecard?
A) Alfred Chandler
B) Robert Kaplan and David Norton
C) Peter Drucker
D) Michael Porter
  • 12. The Balanced Scorecard emphasizes that performance should be:
A) Balanced across multiple perspectives
B) Financial only
C) Internally focused
D) Market-based only
  • 13. Which Balanced Scorecard perspective asks, “How do customers see us?”
A) Learning and Growth
B) Customer
C) Internal Business Process
D) Financial
  • 14. Which perspective focuses on employee skills and information systems?
A) Learning and Growth
B) Financial
C) Customer
D) Community
  • 15. Corporate governance mainly refers to:
A) Oversight and direction by the board
B) Financial auditing
C) Daily operations
D) Marketing control
  • 16. The board of directors is elected by:
A) Managers
B) Shareholders
C) Employees
D) Customers
  • 17. Which is a key responsibility of the board of directors?
A) Hiring all employees
B) Monitoring CEO performance
C) Managing daily operations
D) Creating marketing campaigns
  • 18. A best practice in board composition is to:
A) Keep the board small and efficient
B) Let the CEO always be chairperson
C) Have more than 15 members
D) Encourage interlocking directorships
  • 19. The “art or science” issue in strategy management suggests that strategy should be:
A) A blend of intuition and analysis
B) Based on guesswork
C) Purely intuitive
D) Fully analytical
  • 20. Contingency planning focuses on:
A) Employee training
B) Competitor analysis
C) “What if?” scenarios
D) Long-term budgeting
  • 21. Auditing helps ensure:
A) Accountability and compliance
B) Employee motivation
C) Faster decision-making
D) Higher market share
  • 22. Effective strategic management should focus on:
A) Bureaucratic processes
B) Strict routines
C) People and dialogue
D) Thick documents
  • 23. Which guideline promotes ethical behavior?
A) Avoid bad news
B) Pursue many strategies
C) Keep strategies secret
D) Strengthen “Good ethics is good business”
  • 24. Strategy evaluation is compared to a car dashboard because it:
A) Provides continuous feedback for adjustment
B) Looks technical
C) Shows only financial data
D) Works only at the end
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