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