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CHAPTER 6-7
Contributed by: Laong
  • 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 control employee performance
D) To collect raw data
  • 2. Strategy Analysis and Choice mainly involves decisions that are:
A) Random
B) Fully subjective
C) Subjective based on objective information
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 simplify decisions
B) To generate more alternative strategies
C) To reduce costs
D) To avoid competition
  • 5. Which of the following is NOT part of the Input Stage?
A) QSPM
B) CPM
C) IFE Matrix
D) EFE Matrix
  • 6. The Strategy-Formulation Analytical Framework has how many stages?
A) Four
B) Three
C) Five
D) Two
  • 7. What is the main purpose of the Input Stage?
A) Summarizing basic internal and external information
B) Choosing the best strategy
C) Estimating costs
D) Implementing strategies
  • 8. Which tool belongs to the Matching Stage?
A) QSPM
B) SWOT Matrix
C) IFE Matrix
D) EFE Matrix
  • 9. The SWOT Matrix is mainly used to:
A) Match internal and external factors
B) Measure industry growth
C) Rank strategies objectively
D) Analyze competitors’ profits
  • 10. Which SWOT strategy uses strengths to avoid threats?
A) WO
B) SO
C) ST
D) WT
  • 11. Which strategy type is considered defensive?
A) SO
B) WT
C) ST
D) WO
  • 12. Why must strategies be specific?
A) To avoid competition
B) To sound professional
C) To simplify matrices
D) To estimate costs accurately
  • 13. One limitation of the SWOT Matrix is that it:
A) Does not show competitive advantage directly
B) Requires financial data only
C) Is too complex
D) Cannot generate strategies
  • 14. The SPACE Matrix helps determine which type of strategy to use based on:
A) Employee performance
B) nternal and external positions
C) Sales and profit
D) Market share and growth
  • 15. Which is an internal dimension of the SPACE Matrix?
A) Market Growth
B) Industry Position
C) Stability Position
D) Financial Position
  • 16. An organization located in the Aggressive quadrant should focus on:
A) Integration and intensive strategies
B) Defensive tactics
C) Liquidation
D) Retrenchment
  • 17. The BCG Matrix is mainly used by:
A) Single-product firms
B) Multidivisional firms
C) Non-profit organizations
D) Small businesses
  • 18. What are the two dimensions of the BCG Matrix?
A) Internal and external factors
B) Profit and cost
C) Market share and industry growth
D) Strengths and weaknesses
  • 19. Which BCG quadrant represents high market share and low growth?
A) Dogs
B) Stars
C) Cash Cow
D) Question Mark
  • 20. The IE Matrix uses which scores on its axes?
A) IFE and EFE total weighted scores
B) Sales and profit
C) ROI and liquidity
D) Market share and growth
  • 21. Which IE Matrix cells suggest “Grow and Build” strategies?
A) Cell V only
B) Cells I, II, and III
C) Cells VII, VIII, and IX
D) Cells IV, V, and VI
  • 22. The Grand Strategy Matrix is based on:
A) Profit and cost
B) Competitive position and market growth
C) Strengths and weaknesses
D) Culture and politics
  • 23. Firms in Quadrant III of the Grand Strategy Matrix should consider:
A) Product development
B) Retrenchment, divestiture, or liquidation
C) Market penetration
D) Forward integration
  • 24. Which matrix is used in the Decision Stage?
A) QSPM
B) SPACE
C) SWOT
D) BCG
  • 25. The main purpose of QSPM is to:
A) Objectively compare alternative strategiesAnalyze competitors
B) Implement strategies
C) Analyze competitors
D) Generate strategies
  • 26. Why should wild cost guesses be avoided?
A) They reduce creativity
B) They may result in financially infeasible strategies
C) They affect culture
D) They slow planning
  • 27. Strategy analysis is compared to playing chess because:
A) Both are games
B) Both rely on luck
C) Both are easy to learn
D) Every move affects future decisions and outcomes
  • 28. Why does successful strategy formulation not always lead to successful implementation?
A) Implementation focuses only on planning
B) Managers ignore objectives
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) Needs more data
D) Requires moving from thinking to action
  • 30. Which of the following is NOT part of the strategy implementation framework?
A) Establishing annual objectives
B) Managing conflict
C) Evaluating competitors
D) Allocating resources
  • 31. Annual objectives are best described as:
A) External opportunities
B) Company policies
C) Long-term visions
D) Short-term, measurable milestones
  • 32. Why are annual objectives important?
A) They serve as benchmarks for progress
B) They reduce conflict
C) They eliminate competition
D) They replace strategies
  • 33. Which is a key characteristic of effective annual objectives?
A) Vague and flexible
B) Qualitative only
C) Confidential
D) Quantitative and obtainable
  • 34. Policies are best defined as:
A) Specific guidelines that support objectives
B) Long-term goals
C) Informal practices
D) General ideas
  • 35. Why should policies be written whenever possible?
A) To increase workload
B) To ensure clarity and consistency
C) To replace objectives
D) To reduce employee freedom
  • 36. Resource allocation refers to:
A) Hiring employees only
B) Reducing company assets
C) Dividing profits among owners
D) Distributing resources to achieve objectives
  • 37. Conflict during strategy implementation is:
A) A sign of failure
B) Avoidable
C) Always harmful
D) Inevitable
  • 38. Which approach focuses on exchanging views to resolve conflict?
A) Diffusion
B) Avoidance
C) Delegation
D) Confrontation
  • 39. Alfred Chandler stated that:
A) Structure determines strategy
B) Marketing drives all strategies
C) Culture determines performance
D) Strategy determines structure
  • 40. Which organizational structure is simple and common for small firms?
A) Matrix
B) Divisional
C) Functional
D) Strategic Business Unit
  • 41. A major disadvantage of the functional structure is:
A) Too much decentralization
B) Poor specialization
C) High cost
D) Functional silos and poor communication
  • 42. Which structure is best for large firms with diverse products or markets?
A) Divisional
B) Matrix
C) Strategic Business Unit
D) Functional
  • 43. Employees having two bosses is a characteristic of which structure?
A) Matrix
B) Divisional
C) Functional
D) SBU
  • 44. Which organizational chart practice is considered a “Do”?
A) Let many managers report to one person
B) Use functional structure for large firms
C) Allow co-managers
D) Keep span of control reasonable
  • 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) Ignore employee concerns
B) Delay implementation
C) Force compliance
D) Involve employees in decisions
  • 47. Strategic production decisions mainly affect:
A) Advertising
B) Corporate culture only
C) Financial reporting
D) Logistics and costs
  • 48. Linking performance and pay to strategy helps:
A) Reduce diversity
B) Increase resistance
C) Align employee behavior with goals
D) Eliminate competition
  • 49. Promoting diversity in the workforce can:
A) Reduce creativity
B) Increase conflict only
C) Enhance competitiveness
D) Slow decision-making
  • 50. Market segmentation is important because it:
A) Divides customers into meaningful groups
B) Reduces production costs
C) Focuses only on pricing
D) Eliminates marketing expenses
  • 51. Perceptual mapping is used to:
A) Calculate profits
B) Track production output
C) Measure employee satisfaction
D) Show how products are viewed compared to competitors
  • 52. Strategy implementation is compared to building a house because:
A) Both depend on marketing
B) A good plan needs proper execution and coordination
C) Both are expensive
D) Both require design software
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