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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 collect raw data
B) To control employee performance
C) To implement strategies
D) To generate, evaluate, and select strategies
  • 2. Strategy Analysis and Choice mainly involves decisions that are:
A) Subjective based on objective information
B) Random
C) Fully objective
D) Fully subjective
  • 3. Who should be involved in the strategy analysis process?
A) Only top management
B) Only external consultants
C) As many managers and employees as possible
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) EFE Matrix
B) CPM
C) IFE Matrix
D) QSPM
  • 6. The Strategy-Formulation Analytical Framework has how many stages?
A) Four
B) Two
C) Five
D) Three
  • 7. What is the main purpose of the Input Stage?
A) Choosing the best strategy
B) Summarizing basic internal and external information
C) Implementing strategies
D) Estimating costs
  • 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) 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) WT
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) Requires financial data only
B) Does not show competitive advantage directly
C) Cannot generate strategies
D) Is too complex
  • 14. The SPACE Matrix helps determine which type of strategy to use based on:
A) Market share and growth
B) nternal and external positions
C) Sales and profit
D) Employee performance
  • 15. Which is an internal dimension of the SPACE Matrix?
A) Market Growth
B) Stability Position
C) Financial Position
D) Industry Position
  • 16. An organization located in the Aggressive quadrant should focus on:
A) Defensive tactics
B) Retrenchment
C) Integration and intensive strategies
D) Liquidation
  • 17. The BCG Matrix is mainly used by:
A) Single-product firms
B) Multidivisional firms
C) Small businesses
D) Non-profit organizations
  • 18. What are the two dimensions of the BCG Matrix?
A) Internal and external factors
B) Market share and industry growth
C) Strengths and weaknesses
D) Profit and cost
  • 19. Which BCG quadrant represents high market share and low growth?
A) Cash Cow
B) Stars
C) Dogs
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 VII, VIII, and IX
C) Cells I, II, and III
D) Cells IV, V, and VI
  • 22. The Grand Strategy Matrix is based on:
A) Competitive position and market growth
B) Profit and cost
C) Strengths and weaknesses
D) Culture and politics
  • 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) SPACE
B) SWOT
C) QSPM
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 may result in financially infeasible strategies
B) They affect culture
C) They reduce creativity
D) They slow planning
  • 27. Strategy analysis is compared to playing chess because:
A) Every move affects future decisions and outcomes
B) Both rely on luck
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) 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) Has fewer tools
B) Needs more data
C) Requires moving from thinking to action
D) Requires moving from thinking to action
  • 30. Which of the following is NOT part of the strategy implementation framework?
A) Allocating resources
B) Managing conflict
C) Evaluating competitors
D) Establishing annual objectives
  • 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 reduce conflict
B) They replace strategies
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) 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) General ideas
D) Informal practices
  • 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) Dividing profits among owners
C) Distributing resources to achieve objectives
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) Confrontation
B) Diffusion
C) Avoidance
D) Delegation
  • 39. Alfred Chandler stated that:
A) Culture determines performance
B) Structure determines strategy
C) Marketing drives all strategies
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) Poor specialization
B) Functional silos and poor communication
C) Too much decentralization
D) High cost
  • 42. Which structure is best for large firms with diverse products or markets?
A) Divisional
B) Strategic Business Unit
C) Functional
D) Matrix
  • 43. Employees having two bosses is a characteristic of which structure?
A) SBU
B) Matrix
C) Divisional
D) Functional
  • 44. Which organizational chart practice is considered a “Do”?
A) Keep span of control reasonable
B) Let many managers report to one person
C) Allow co-managers
D) Use functional structure for large firms
  • 45. Reengineering in operations focuses on:
A) Reconfiguring work processes
B) Outsourcing all activities
C) Hiring more workers
D) Increasing product prices
  • 46. One way to manage resistance to change is to:
A) Force compliance
B) Ignore employee concerns
C) Delay implementation
D) Involve employees in decisions
  • 47. Strategic production decisions mainly affect:
A) Logistics and costs
B) Financial reporting
C) Advertising
D) Corporate culture only
  • 48. Linking performance and pay to strategy helps:
A) Eliminate competition
B) Align employee behavior with goals
C) Increase resistance
D) Reduce diversity
  • 49. Promoting diversity in the workforce can:
A) Slow decision-making
B) Increase conflict only
C) Reduce creativity
D) Enhance competitiveness
  • 50. Market segmentation is important because it:
A) Reduces production costs
B) Divides customers into meaningful groups
C) Eliminates marketing expenses
D) Focuses only on pricing
  • 51. Perceptual mapping is used to:
A) Track production output
B) Show how products are viewed compared to competitors
C) Measure employee satisfaction
D) Calculate profits
  • 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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