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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 implement strategies
C) To control employee performance
D) To generate, evaluate, and select strategies
  • 2. Strategy Analysis and Choice mainly involves decisions that are:
A) Subjective based on objective information
B) Fully subjective
C) Fully objective
D) Random
  • 3. Who should be involved in the strategy analysis process?
A) Only the strategy team
B) Only top management
C) As many managers and employees as possible
D) Only external consultants
  • 4. Why is creativity important in strategy formulation?
A) To simplify decisions
B) To reduce costs
C) To avoid competition
D) To generate more alternative strategies
  • 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) 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) Implementing strategies
C) Choosing the best strategy
D) Estimating costs
  • 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) Match internal and external factors
B) Measure industry growth
C) Analyze competitors’ profits
D) Rank strategies objectively
  • 10. Which SWOT strategy uses strengths to avoid threats?
A) WO
B) ST
C) SO
D) WT
  • 11. Which strategy type is considered defensive?
A) ST
B) WT
C) WO
D) SO
  • 12. Why must strategies be specific?
A) To estimate costs accurately
B) To sound professional
C) To simplify matrices
D) To avoid competition
  • 13. One limitation of the SWOT Matrix is that it:
A) Is too complex
B) Cannot generate strategies
C) Does not show competitive advantage directly
D) Requires financial data only
  • 14. The SPACE Matrix helps determine which type of strategy to use based on:
A) Employee performance
B) Market share and growth
C) nternal and external positions
D) Sales and profit
  • 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) Defensive tactics
B) Retrenchment
C) Integration and intensive strategies
D) Liquidation
  • 17. The BCG Matrix is mainly used by:
A) Single-product firms
B) Small businesses
C) Multidivisional firms
D) Non-profit organizations
  • 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) ROI and liquidity
B) IFE and EFE total weighted scores
C) Market share and growth
D) Sales and profit
  • 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) 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) Retrenchment, divestiture, or liquidation
B) Product development
C) Market penetration
D) Forward integration
  • 24. Which matrix is used in the Decision Stage?
A) QSPM
B) BCG
C) SWOT
D) SPACE
  • 25. The main purpose of QSPM is to:
A) Generate strategies
B) Analyze competitors
C) Objectively compare alternative strategiesAnalyze competitors
D) Implement strategies
  • 26. Why should wild cost guesses be avoided?
A) They reduce creativity
B) They affect culture
C) They may result in financially infeasible strategies
D) They slow planning
  • 27. Strategy analysis is compared to playing chess because:
A) Both are games
B) Both are easy to learn
C) Both rely on luck
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) 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) Needs more data
B) Has fewer tools
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) Evaluating competitors
B) Establishing annual objectives
C) Managing conflict
D) Allocating resources
  • 31. Annual objectives are best described as:
A) Short-term, measurable milestones
B) External opportunities
C) Company policies
D) Long-term visions
  • 32. Why are annual objectives important?
A) They serve as benchmarks for progress
B) They eliminate competition
C) They reduce conflict
D) They replace strategies
  • 33. Which is a key characteristic of effective annual objectives?
A) Confidential
B) Quantitative and obtainable
C) Qualitative only
D) Vague and flexible
  • 34. Policies are best defined as:
A) Long-term goals
B) Specific guidelines that support objectives
C) Informal practices
D) General ideas
  • 35. Why should policies be written whenever possible?
A) To ensure clarity and consistency
B) To replace objectives
C) To increase workload
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) A sign of failure
B) Avoidable
C) Always harmful
D) Inevitable
  • 38. Which approach focuses on exchanging views to resolve conflict?
A) Diffusion
B) Delegation
C) Avoidance
D) Confrontation
  • 39. Alfred Chandler stated that:
A) Marketing drives all strategies
B) Strategy determines structure
C) Structure determines strategy
D) Culture determines performance
  • 40. Which organizational structure is simple and common for small firms?
A) Strategic Business Unit
B) Functional
C) Matrix
D) Divisional
  • 41. A major disadvantage of the functional structure is:
A) Too much decentralization
B) Poor specialization
C) Functional silos and poor communication
D) High cost
  • 42. Which structure is best for large firms with diverse products or markets?
A) Matrix
B) Divisional
C) Strategic Business Unit
D) Functional
  • 43. Employees having two bosses is a characteristic of which structure?
A) Divisional
B) Matrix
C) Functional
D) SBU
  • 44. Which organizational chart practice is considered a “Do”?
A) Keep span of control reasonable
B) Let many managers report to one person
C) Use functional structure for large firms
D) Allow co-managers
  • 45. Reengineering in operations focuses on:
A) Increasing product prices
B) Reconfiguring work processes
C) Outsourcing all activities
D) Hiring more workers
  • 46. One way to manage resistance to change is to:
A) Involve employees in decisions
B) Delay implementation
C) Force compliance
D) Ignore employee concerns
  • 47. Strategic production decisions mainly affect:
A) Financial reporting
B) Logistics and costs
C) Corporate culture only
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) Enhance competitiveness
D) Slow decision-making
  • 50. Market segmentation is important because it:
A) Focuses only on pricing
B) Divides customers into meaningful groups
C) Reduces production costs
D) Eliminates marketing expenses
  • 51. Perceptual mapping is used to:
A) Measure employee satisfaction
B) Track production output
C) Show how products are viewed compared to competitors
D) Calculate profits
  • 52. Strategy implementation is compared to building a house because:
A) Both are expensive
B) Both depend on marketing
C) Both require design software
D) A good plan needs proper execution and coordination
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