CH 7 Reviseeeee

Question 1

Strategy analysis and choice largely involves making ________ decisions based on ________ information.
A) long-term; short-term
B) subjective; short-term
C) subjective; objective
D) objective; subjective
E) short-term; long-term

Answer 1

C

Question 2

Which stage in the strategy-formulation framework focuses on generating feasible alternative strategies?
A) Output
B) Input
C) Matching
D) Decision
E) Throughput

Answer 2

C

Question 3

Which stage of the strategy-formulation framework involves the Quantitative Strategic Planning Matrix?
A) Stage 4
B) Stage 1
C) Stage 2
D) Stage 3
E) Stage 5

Answer 3

D

Question 4

Which strategy formulation technique reveals the relative attractiveness of alternative strategies, and thus provides an objective basis for selecting specific strategies?
A) SWOT
B) SPACE
C) IFE
D) QSPM
E) CPM

Answer 4

D

Question 5

Each of the nine techniques included in the strategy formulation framework rely on the use of
A) financial formulas and statistics.
B) intuition and analysis.
C) luck.
D) synergy.
E) strictly factual data.

Answer 5

B

Question 6

Which stage of the strategy formulation framework includes an Internal Factor Evaluation Matrix and a Competitive Profile Matrix?
A) Decision
B) Research
C) Penetration
D) Input
E) Matching

Answer 6

D

Question 7

Which stage of the strategy formulation framework contains the Internal-Factor Evaluation Matrix?
A) Output
B) Matching
C) Analysis
D) Input
E) Decision

Answer 7

D

Question 8

The match an organization makes between its internal resources and skills, and the opportunities and risks created by its external factors, can be defined as
A) input.
B) strategy.
C) concept formulation.
D) an opportunity.
E) SWOT.

Answer 8

B

Question 9

Which section of the SWOT Matrix involves matching internal strengths with external opportunities?
A) The ST cell
B) The SW cell
C) The SO cell
D) The WO cell
E) The WT cell

Answer 9

C

Question 10

62) Which strategies, defined by the SWOT matrix, aim at improving internal weaknesses by taking advantage of external opportunities?
A) SO
B) SW
C) WO
D) WT
E) ST

Answer 10

C

Question 11

) Which strategies, defined by the SWOT matrix, use a firm’s strengths to avoid or reduce the impact of external threats?
A) SW
B) SW
C) ST
D) WO
E) WT

Answer 11

C

Question 12

Which strategies, defined by the SWOT matrix, are defensive tactics directed at reducing internal weaknesses and avoiding environmental threats?
A) ST
B) SO
C) WO
D) WT
E) SW

Answer 12

D

Question 13

How many cells are in a SWOT Matrix?
A) Four
B) Eight
C) Six
D) Two
E) Nine

Answer 13

E

Question 14

Which of the following is not a step of a SWOT Matrix?
A) List the firm’s external weaknesses.
B) List the firm’s key external threats.
C) Match internal weaknesses with external threats and record the resultant WT strategies.
D) Match strengths with external opportunities and record the resultant SO strategies in the
appropriate cell.
E) List the firm’s external opportunities.

Answer 14

A

Question 15

Which of the following is a weakness associated with a SWOT Matrix?
A) Other variables besides relative market share position and industry growth rate in sales
need to be considered.
B) Many businesses fall right in the middle of the matrix.
C) Viewing every business as a Star, Cash Cow, Dog, or Question Mark is an
oversimplification.
D) The matrix does not reflect whether or not various divisions or their industry are growing
over time.
E) The matrix has no temporal qualities.

Answer 15

E

Question 16

68) Which of these is not a SPACE Matrix quadrant?
A) Competitive
B) Defensive
C) Offensive
D) Conservative
E) Aggressive

Answer 16

C

Question 17

What type of strategy would divestiture be classified as?
A) Aggressive
B) Conservative
C) Competitive
D) Offensive
E) Defensive

Answer 17

E

Question 18

The two internal dimensions represented on the axes of the SPACE Matrix are
A) industry strength and internationalization.
B) financial strength and environmental stability.
C) competitive advantage and financial strength.
D) environmental stability and industry strength.
E) internationalization and competitive advantage.

Answer 18

C

Question 19

71) What are the two external dimensions of the SPACE Matrix?
A) Competitive advantage and financial strength
B) Environmental stability and competitive advantage
C) Industry strength and competitive advantage
D) Environmental stability and industry strength
E) Financial strength and industry strength

Answer 19

D

Question 20

The two positive-rated dimensions on SPACE Matrix are
A) CA and ES.
B) FS and CA.
C) FS and ES.
D) FS and IS.
E) IS and ES.

Answer 20

D

Question 21

What type of strategies would you recommend when a firm’s SPACE Matrix directional vector has the coordinates (-2, +3)?
A) Defensive
B) Conservative
C) Competitive
D) Aggressive
E) Integrative

Answer 21

B

Question 22

In a SPACE analysis, what does a (+6, +3) strategy profile portray?
A) A weak financial position
B) A weak industry
C) A stable environment
D) A strong industry
E) An unstable environment

Answer 22

D

Question 23

For what type of company is the BCG Matrix ideal for analyzing?
A) Large companies
B) Companies with annual sales greater than $1 million
C) Companies with annual sales of less than $1 million
D) All companies
E) Companies with more than one division

Answer 23

E

Question 24

In the BCG Matrix, which element represents the industry growth rate in sales, measured in percentage terms?
A) First quadrant
B) Third quadrant
C) x-axis
D) Second quadrant
E) y-axis

Answer 24

E

Question 25

How would a division with a low relative market share position in a high growth industry be described? A) Stuck-in-the-middle B) Question mark C) Cash cow D) Dog E) Star

Answer 25

B

Question 26

) When a division of an organization has a high relative market share and is in a fast-growing industry, it is called a A) star. B) question mark. C) dog. D) cash cow. E) cat.

Answer 26

A

Question 27

A division with a high relative market share position in a low-growth industry can be described as a A) failure. B) cash cow. C) dog. D) star. E) question mark.

Answer 27

B

Question 28

Which strategy would be most appropriate for a company classified as a Dog? A) Market development B) Retrenchment C) Market penetration D) Forward integration E) Product development

Answer 28

B

Question 29

Which of the following is likely to have been a cash cow in the past? A) Question mark B) Cat C) Dog D) Failure E) Star

Answer 29

E

Question 30

An organization that has a low relative market share position and competes in a slow-growth industry is referred to as a A) star. B) cowboy. C) dog. D) cash cow. E) question mark.

Answer 30

C

Question 31

The limitations of a BCG Matrix include all of these except A) not allowing a company to be classified as somewhere in between two categories. B) other variables such as size of market and competitive advantage are not considered. C) viewing every business as a star, cash cow, dog or question mark can be an oversimplification. D) requiring at least three years' worth of data. E) not reflecting divisional or industry growth over time.

Answer 31

D

Question 32

84) Which of the following analytical tools consists of a nine-cell matrix? A) SPACE Matrix B) Matching Matrix C) Competitive Profile Matrix D) Internal-External Matrix E) Grand Strategy Matrix

Answer 32

D

Question 33

According to the Grand Strategy Matrix, which strategy is recommended for a firm with rapid market growth and a strong competitive position? A) Retrenchment B) Joint venture C) Conglomerate diversification D) Liquidation E) Market penetration

Answer 33

E

Question 34

Which matrix is included in the decision stage of the strategy formulation framework? A) SPACE Matrix B) Grand Strategy Matrix C) BCG Business Portfolio Matrix D) Internal Factor Evaluation Matrix E) Quantitative Strategic Planning Matrix

Answer 34

E

Question 35

The top row of a Quantitative Strategic Planning Matrix consists of alternative strategies derived from all of these except A) Space Matrix. B) CPM Matrix. C) BCG Matrix. D) IE Matrix. E) Grand Strategy Matrix.

Answer 35

B

Question 36

Which analytical tool determines the relative attractiveness of various strategies based on the extent to which key external and internal critical success factors are capitalized? A) IE B) SPACE C) BCG D) TOWS E) QSPM

Answer 36

E

Question 37

Which of the following is the first step in developing the QSPM? A) Compute the Total Attractiveness Scores. B) Assign weights to each key external and internal factor. C) Determine the Attractiveness Scores. D) Examine the Stage 2 matrices and identify the alternative strategies which the organization should consider implementing. E) Make a list of the firm's key external opportunities/threats and internal strengths/weaknesses in the left column of the QSPM.

Answer 37

E

Question 38

What term is defined as the product of multiplying the weights by attractiveness scores in each row of the QSPM? A) Weighted scores B) Factors C) Total weighted scores D) Sum total attractiveness scores E) Total attractiveness scores

Answer 38

E

Question 39

What is the highest number of strategies that can be examined at one time with the QSPM? A) 2 B) 1 C) 5 D) 10 E) There is no limit.

Answer 39

E

Question 40

Which of these is a limitation of QSPM? A) Sets of strategies must be examined in reverse order. B) It requires equal participation from everyone. C) Only a few strategies can be evaluated simultaneously. D) The cost of doing the analysis. E) Intuitive judgments and educated guesses are required.

Answer 40

E

Question 41

Which of the following terms is defined by the set of shared values, beliefs, attitudes, customs, norms, personalities, heroes and heroines that describe a firm? A) Culture B) Mission C) Strategy D) Objectives E) QSPM

Answer 41

A