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