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