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