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