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