ThatQuiz Test Library Take this test now
CHAPTER 6
Contributed by: Laong
  • 1. What is the main goal of the strategy analysis and choice process?
A) To prepare financial reports
B) To generate, evaluate, and select feasible alternative strategie
C) To evaluate employees’ performance
  • 2. Which factor is essential for ensuring understanding and commitment in strategy choice?
A) Involvement of as many managers and employees as possible
B) Cost reduction
C) Technology adoption
  • 3. What is encouraged in generating alternative strategies?
A) Competition
B) Creativity
C) Cost minimization
  • 4. What information should participants have available when formulating strategies?
A) Vision, mission, EFE, CPM, and IFE information
B) Marketing reports only
C) Supplier contracts
  • 5. The Strategy-Formulation Analytical Framework consists of how many stages?
A) Three
B) Two
C) Four
  • 6. Which stage summarizes basic input information for strategy formulation?
A) Matching Stage
B) Input Stage
C) Implementation Stage
  • 7. Which matrices are included in the Input Stage?
A) SPACE, Grand Strategy
B) EFE, IFE, CPM
C) QSPM
  • 8. Which stage uses input information to generate feasible alternative strategies?
A) Evaluation Stage
B) Decision Stage
C) Matching Stage
  • 9. Which stage involves a single analytical technique to determine strategy attractiveness?
A) Decision Stage
B) Implementation Stage
C) Matching Stage
  • 10. The SWOT Matrix is used to:
A) Evaluate political risks
B) Match key internal and external factors to generate strategies
C) Plot a company’s financial position
  • 11. How many strategy cells are in a SWOT Matrix?
A) Six
B) Four
C) Nine
  • 12. What is the purpose of a WO strategy?
A) Use strengths to exploit opportunities
B) Maintain current strategy
C) Overcome weaknesses by taking advantage of opportunities
  • 13. SMaintain current strategy
A) Increase internal weaknesses
B) Use weaknesses to create opportunities
C) Use strengths to reduce the impact of external threats
  • 14. WT strategies focus on:
A) Maximizing revenue
B) Defensive tactics to reduce weaknesses and avoid threat
C) Exploiting opportunities
  • 15. Why must strategies be stated in specific terms?
A) To create flexible plans
B) To avoid documentation
C) To allow estimation of costs and accountability
  • 16. One limitation of SWOT analysis is that it:
A) Is only for financial planning
B) Provides a snapshot in time and doesn’t show how to gain competitive advantage
C) Focuses only on external factors
  • 17. The SPACE Matrix is designed to indicate:
A) Historical financial trends
B) Internal weaknesses only
C) Appropriate strategy types based on four dimensions
  • 18. Which of the following is NOT a dimension of the SPACE Matrix?
A) Market Share Position
B) Industry Position
C) Financial Position
  • 19. Quadrants of the SPACE Matrix include:
A) Stars, Cash Cows, Dogs
B) SO, WO, ST, WT
C) Aggressive, Conservative, Defensive, Competitive
  • 20. The BCG Matrix evaluates divisions based on:
A) External threats and internal weaknesses
B) Relative market share position and industry growth rate
C) Strategy implementation costs
  • 21. In the BCG Matrix, 'Stars' are characterized by:
A) Low market share and low growth
B) High market share and high growth
C) High market share and low growth
  • 22. Which BCG category may require substantial investment to maintain growth?
A) Stars
B) Dogs
C) Cash Cows
  • 23. Cash Cows are divisions that:
A) Require significant investments
B) Have low market share and low growth
C) Generate more cash than needed
  • 24. Dogs in the BCG Matrix are:
A) Always profitable
B) Low market share and low growth divisions
C) Stars in the making
  • 25. The IE Matrix positions divisions based on:
A) BCG quadrants
B) SPACE dimensions
C) IFE and EFE total weighted scores
  • 26. Cells I, II, III in the IE Matrix suggest:
A) Grow and build strategies
B) Liquidation
C) Hold and maintain strategies
  • 27. Cells IV, V, VI in the IE Matrix recommend:
A) Hold and maintain strategies
B) Aggressive strategies
C) Harvest and divest strategies
  • 28. Cells VII, VIII, IX in the IE Matrix imply:
A) Product development
B) Market penetration
C) Harvest and divest strategies
  • 29. The Grand Strategy Matrix is based on:
A) Financial ratios
B) Competitive position and market growth
C) Political factors
  • 30. Quadrant I of the Grand Strategy Matrix suggests:
A) Retrenchment
B) Excellent position; focus on integration or development strategies
C) Diversification only
  • 31. Quadrant II of the Grand Strategy Matrix focuses on:
A) Improving weak competitive position using intensive strategies
B) Maintaining current strategies
C) Backward integration
  • 32. Quadrant III implies:
A) Weak competitive position and slow market growth; drastic changes needed
B) Market penetration
C) Strong competitive position
  • 33. Quadrant IV suggests:
A) Maintaining current operations
B) Weak competitive strategies
C) Diversification or joint ventures in promising areas
  • 34. The QSPM is used to:
A) Assign employee bonuses
B) Evaluate marketing campaigns
C) Objectively determine the relative attractiveness of feasible strategies
  • 35. The strategy with the highest STAS in QSPM is:
A) The least costly strategy
B) The most popular strategy
C) The most feasible strategy
  • 36. Estimating costs in recommendations should rely on:
A) Competitor opinions only
B) Company data, industry data, and expert opinion
C) Wild guesses
  • 37. Organizational culture in strategy formulation refers to:
A) Financial performance
B) External market trends
C) Shared values, beliefs, and practices that support strategy implementation
  • 38. Political considerations in strategy choice involve:
A) Navigating power dynamics and negotiations to gain commitment
B) Avoiding decision-making
C) Reducing costs only
  • 39. Bias in strategy analysis may be caused by:
A) Market trends
B) Subjective factors like personal prejudice, emotions, and halo error
C) Financial ratios
  • 40. A limitation of QSPM is that it:
A) Focuses only on external factors
B) Ignores costs
C) Always requires subjective judgments
  • 41. The Recommendations Page in a strategic plan lists:
A) Competitor strategies
B) Proposed actions and estimated costs
C) Historical data only
  • 42. A key aspect of strategy analysis and choice is:
A) Reducing financial risks only
B) Objective evaluation of alternatives based on input data
C) Following trends blindly
  • 43. Which matrix shows divisions’ positions in nine cells based on internal and external factors?
A) IE Matrix
B) SPACE Matrix
C) SWOT Matrix
  • 44. Which matrix is the only analytical technique designed to objectively rank strategies?
A) Grand Strategy Matrix
B) QSPM
C) SPACE Matrix
  • 45. Which factor is NOT considered in the SPACE Matrix?
A) Employee turnover
B) Financial Position
C) Stability Position
  • 46. The analogy of strategy analysis and choice is compared to:
A) Building a house
B) Playing chess at a grandmaster level
C) Writing a report
  • 47. Why is specificity important in strategy formulation?
A) To reduce planning time
B) To improve creativity
C) To estimate costs and assign responsibilities clearly
Created with That Quiz — where a math practice test is always one click away.