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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 generate, evaluate, and select strategies
D) To implement strategies
  • 2. Strategy Analysis and Choice mainly involves decisions that are:
A) Random
B) Fully objective
C) Fully subjective
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 the strategy team
D) Only top management
  • 4. Why is creativity important in strategy formulation?
A) To avoid competition
B) To generate more alternative strategies
C) To reduce costs
D) To simplify decisions
  • 5. Which of the following is NOT part of the Input Stage?
A) IFE Matrix
B) CPM
C) QSPM
D) EFE Matrix
  • 6. The Strategy-Formulation Analytical Framework has how many stages?
A) Two
B) Four
C) Three
D) Five
  • 7. What is the main purpose of the Input Stage?
A) Summarizing basic internal and external information
B) Estimating costs
C) Implementing strategies
D) Choosing the best strategy
  • 8. Which tool belongs to the Matching Stage?
A) IFE Matrix
B) EFE Matrix
C) SWOT Matrix
D) QSPM
  • 9. The SWOT Matrix is mainly used to:
A) Match internal and external factors
B) Rank strategies objectively
C) Analyze competitors’ profits
D) Measure industry growth
  • 10. Which SWOT strategy uses strengths to avoid threats?
A) ST
B) SO
C) WO
D) WT
  • 11. Which strategy type is considered defensive?
A) ST
B) SO
C) WO
D) WT
  • 12. Why must strategies be specific?
A) To sound professional
B) To simplify matrices
C) To avoid competition
D) To estimate costs accurately
  • 13. One limitation of the SWOT Matrix is that it:
A) Does not show competitive advantage directly
B) Is too complex
C) Cannot generate strategies
D) Requires financial data only
  • 14. The SPACE Matrix helps determine which type of strategy to use based on:
A) Employee performance
B) nternal and external positions
C) Sales and profit
D) Market share and growth
  • 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) Defensive tactics
B) Integration and intensive strategies
C) Retrenchment
D) Liquidation
  • 17. The BCG Matrix is mainly used by:
A) Non-profit organizations
B) Multidivisional firms
C) Single-product firms
D) Small businesses
  • 18. What are the two dimensions of the BCG Matrix?
A) Internal and external factors
B) Market share and industry growth
C) Profit and cost
D) Strengths and weaknesses
  • 19. Which BCG quadrant represents high market share and low growth?
A) Dogs
B) Question Mark
C) Cash Cow
D) Stars
  • 20. The IE Matrix uses which scores on its axes?
A) ROI and liquidity
B) Market share and growth
C) Sales and profit
D) IFE and EFE total weighted scores
  • 21. Which IE Matrix cells suggest “Grow and Build” strategies?
A) Cells I, II, and III
B) Cell V only
C) Cells IV, V, and VI
D) Cells VII, VIII, and IX
  • 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) Product development
B) Retrenchment, divestiture, or liquidation
C) Forward integration
D) Market penetration
  • 24. Which matrix is used in the Decision Stage?
A) SPACE
B) QSPM
C) SWOT
D) BCG
  • 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 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 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) Managers ignore objectives
B) Implementation focuses only on planning
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) Requires moving from thinking to action
D) Needs more data
  • 30. Which of the following is NOT part of the strategy implementation framework?
A) Evaluating competitors
B) Allocating resources
C) Managing conflict
D) Establishing annual objectives
  • 31. Annual objectives are best described as:
A) Short-term, measurable milestones
B) Company policies
C) Long-term visions
D) External opportunities
  • 32. Why are annual objectives important?
A) They serve as benchmarks for progress
B) They eliminate competition
C) They replace strategies
D) They reduce conflict
  • 33. Which is a key characteristic of effective annual objectives?
A) Quantitative and obtainable
B) Confidential
C) Qualitative only
D) Vague and flexible
  • 34. Policies are best defined as:
A) Informal practices
B) General ideas
C) Specific guidelines that support objectives
D) Long-term goals
  • 35. Why should policies be written whenever possible?
A) To ensure clarity and consistency
B) To reduce employee freedom
C) To increase workload
D) To replace objectives
  • 36. Resource allocation refers to:
A) Dividing profits among owners
B) Hiring employees only
C) Distributing resources to achieve objectives
D) Reducing company assets
  • 37. Conflict during strategy implementation is:
A) Inevitable
B) Avoidable
C) A sign of failure
D) Always harmful
  • 38. Which approach focuses on exchanging views to resolve conflict?
A) Confrontation
B) Avoidance
C) Diffusion
D) Delegation
  • 39. Alfred Chandler stated that:
A) Strategy determines structure
B) Culture determines performance
C) Structure determines strategy
D) Marketing drives all strategies
  • 40. Which organizational structure is simple and common for small firms?
A) Matrix
B) Divisional
C) Strategic Business Unit
D) Functional
  • 41. A major disadvantage of the functional structure is:
A) High cost
B) Functional silos and poor communication
C) Too much decentralization
D) Poor specialization
  • 42. Which structure is best for large firms with diverse products or markets?
A) Matrix
B) Strategic Business Unit
C) Functional
D) Divisional
  • 43. Employees having two bosses is a characteristic of which structure?
A) Matrix
B) SBU
C) Functional
D) Divisional
  • 44. Which organizational chart practice is considered a “Do”?
A) Let many managers report to one person
B) Use functional structure for large firms
C) Keep span of control reasonable
D) Allow co-managers
  • 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) Delay implementation
B) Force compliance
C) Ignore employee concerns
D) Involve employees in decisions
  • 47. Strategic production decisions mainly affect:
A) Corporate culture only
B) Logistics and costs
C) Advertising
D) Financial reporting
  • 48. Linking performance and pay to strategy helps:
A) Eliminate competition
B) Increase resistance
C) Align employee behavior with goals
D) Reduce diversity
  • 49. Promoting diversity in the workforce can:
A) Slow decision-making
B) Reduce creativity
C) Enhance competitiveness
D) Increase conflict only
  • 50. Market segmentation is important because it:
A) Eliminates marketing expenses
B) Focuses only on pricing
C) Reduces production costs
D) Divides customers into meaningful groups
  • 51. Perceptual mapping is used to:
A) Track production output
B) Measure employee satisfaction
C) Calculate profits
D) Show how products are viewed compared to competitors
  • 52. Strategy implementation is compared to building a house because:
A) Both require design software
B) A good plan needs proper execution and coordination
C) Both are expensive
D) Both depend on marketing
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