Question 1

Shifting focus from specific issues to more general ones may increase strategists' options for gaining organizational commitment.

Accepted Answer

A) True 
 B)False

Question 2

Stage 2 in the strategy-formulation framework involves the Quantitative Strategic Planning Matrix.

Accepted Answer

A) True 
 B)False

Question 3

The most important determinants of an organization's overall strategic position are considered to be the two internal dimensions, financial strength (FS) and competitive advantage (CA), and the two external dimensions, industry strength (IS) and environmental stability (ES).

Accepted Answer

A) True 
 B)False

Question 4

When completing the matching stage of the strategy-formulation framework, the SWOT Matrix needs to be completed before the SPACE Matrix.

Accepted Answer

A) True 
 B)False

Question 5

A firm should pursue defensive strategies if the coordinates of a SPACE directional vector are (2,3).

Accepted Answer

A) True 
 B)False

Question 6

Which stage of the strategy formulation framework contains the Internal-Factor Evaluation Matrix?

Accepted Answer

A)   input stage
B)   analysis stage
C)   matching stage
D)   decision stage
E)   output stageF) A) and E)
G) C) and D)

Question 7

A SWOT Matrix is composed of four cells for the four types of strategies it creates.

Accepted Answer

A) True 
 B)False

Question 8

Conservative strategies in a SPACE Matrix most often include product development, market development, market penetration and concentric diversification.

Accepted Answer

A) True 
 B)False

Question 9

Through which tactic is it possible to achieve similar results using different means or paths?

Accepted Answer

A)   Generalization
B)   Satisficing
C)   Focus on higher-order issues
D)   Equifinality
E)   SpecializationF) D) and E)
G) C) and E)

Question 10

The size of the circle in a BCG Matrix corresponds to the proportion of corporate revenue generated by that business unit.

Accepted Answer

A) True 
 B)False

Question 11

Both IE and BCG Matrices are called portfolio matrices.

Accepted Answer

A) True 
 B)False

Question 12

What is the highest number of strategies that can be examined at one time with the QSPM?

Accepted Answer

A)   1
B)   2
C)   5
D)   10
E)   There is no limitF) A) and E)
G) A) and B)

Question 13

The top row of a QSPM consists of alternative strategies derived from all of these except:

Accepted Answer

A)   Grand Strategy Matrix.
B)   BCG Matrix.
C)   Space Matrix.
D)   CPM Matrix.
E)   IE MatrixF) None of the above
G) A) and B)

Question 14

What type of strategy would divestiture be classified as?

Accepted Answer

A)   Aggressive
B)   Defensive
C)   Competitive
D)   Offensive
E)   ConservativeF) A) and C)
G) A) and E)

Question 15

Which stage in the strategy-formulation framework focuses on generating feasible alternative strategies?

Accepted Answer

A)   Input
B)   Output
C)   Decision
D)   Throughput
E)   MatchingF) B) and E)
G) A) and C)

Question 16

Which strategies aim at improving internal weaknesses by taking advantage of external opportunities?

Accepted Answer

A)   SO
B)   WO
C)   SW
D)   ST
E)   WTF) A) and B)
G) C) and D)

Question 17

The first stage of the strategy-formulation framework is the input stage, followed by the decision stage.

Accepted Answer

A) True 
 B)False

Question 18

Compare and contrast the IE Matrix with the BCG Matrix.

Accepted Answer

The IE Matrix is similar to the BCG Matr...

Question 19

What is a weakness associated with a SWOT Matrix?

Accepted Answer

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

Question 20

Good intuitive judgment is always needed to determine appropriate weights and ratings in the input stage matrices.

Accepted Answer

A) True 
 B)False

Exam 6: Strategy Analysis and Choice

The size of the circle in a BCG Matrix corresponds to the proportion of corporate revenue generated by that business unit.

Correct AnswerverifiedShow Answer

Both IE and BCG Matrices are called portfolio matrices.

Correct AnswerverifiedShow Answer

What is a weakness associated with a SWOT Matrix?

Correct AnswerverifiedShow Answer

Which stage in the strategy-formulation framework focuses on generating feasible alternative strategies?

Correct AnswerverifiedShow Answer

Which stage of the strategy formulation framework contains the Internal-Factor Evaluation Matrix?

Correct AnswerverifiedShow Answer

What is the highest number of strategies that can be examined at one time with the QSPM?

Correct AnswerverifiedShow Answer

Shifting focus from specific issues to more general ones may increase strategists' options for gaining organizational commitment.

Correct AnswerverifiedShow Answer

The most important determinants of an organization's overall strategic position are considered to be the two internal dimensions, financial strength (FS) and competitive advantage (CA), and the two external dimensions, industry strength (IS) and environmental stability (ES).

Correct AnswerverifiedShow Answer

When completing the matching stage of the strategy-formulation framework, the SWOT Matrix needs to be completed before the SPACE Matrix.

Correct AnswerverifiedShow Answer

Conservative strategies in a SPACE Matrix most often include product development, market development, market penetration and concentric diversification.

Correct AnswerverifiedShow Answer

A firm should pursue defensive strategies if the coordinates of a SPACE directional vector are (2,3).

Correct AnswerverifiedShow Answer

Compare and contrast the IE Matrix with the BCG Matrix.

Correct AnswerverifiedThe IE Matrix is similar to the BCG Matr...View AnswerShow Answer

The top row of a QSPM consists of alternative strategies derived from all of these except:

Correct AnswerverifiedShow Answer

Through which tactic is it possible to achieve similar results using different means or paths?

Correct AnswerverifiedShow Answer

Good intuitive judgment is always needed to determine appropriate weights and ratings in the input stage matrices.

Correct AnswerverifiedShow Answer

The first stage of the strategy-formulation framework is the input stage, followed by the decision stage.

Correct AnswerverifiedShow Answer

Stage 2 in the strategy-formulation framework involves the Quantitative Strategic Planning Matrix.

Correct AnswerverifiedShow Answer

What type of strategy would divestiture be classified as?

Correct AnswerverifiedShow Answer

A SWOT Matrix is composed of four cells for the four types of strategies it creates.

Correct AnswerverifiedShow Answer

Which strategies aim at improving internal weaknesses by taking advantage of external opportunities?

Correct AnswerverifiedShow Answer

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The IE Matrix is similar to the BCG Matr...
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