Exam 3 Quizzes

Which stage of the strategy-formulation framework includes an IFE matrix and the competitive profile matrix

input

Which of the following is NOT a SPACE matrix quadrant

offensive

T/F: Boston consulting group matrix helps multi-divisional firms formulate strategies and classifies divisions based on relative market-share position and industry growth rate

True

T/F: In BCG matrix, the size of the pie chart shows the relative sales volume of the business divisions of a company while the pie slices (shaded areas) in the pie charge indicates the division's contribution to the total profit of the company.

True

T/F: QSPM is a tool designed to determine the relative attractiveness of feasible alternative strategies.

True

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

WO Strategy

The Boston Consulting Group (BCG) Matrix is designed specifically to enhance which type of firm's efforts to formate strategies?

Companies with more than one division

The two internal dimensions represented on the axes of the SPACE matrix are

Competitive position and financial position

Where is the overall strategic position of a firm in when the firm's SPACE matrix directional vector has the coordinates (-2, +3)

Conservative

3-stage strategic decision making framework — what is stage 3?

Decision stage

T/F: Stability position compares the firm's industry to other industries on a scale from 1 (worst) to 7 (best) in terms of technological changes, rate of inflation, demand variability, price range of competing products, competitive pressure, price elasticity of demand, and/or risk involved in business

False

Which of the following is true for QSPM? If strategies are not related to factors, the strategies do not need to have attractive scores for the factors QSPM is a useful tool used in the matching stage QSPM uses only external factors identified with the EFE matrix An weakness if QSPM is that this tool cannot evaluate multiple strategies at once Attractive scores should be assigned to strategies for every factor

If strategies are not related to factors, the strategies do not need to have attractive scores for the factors

______ compares the firm's industry to other industries on a scale from +1 (worst) to +7 (best) in terms of growth potential, profit potential, financial stability, extent leveraged, resource utilization, ease of entry into market, productivity, and/or capacity utilization

Industry Position

3-stage strategic decision making framework — what is stage 1?

Input stage

Which of the following is a limitation associated with a SWOT matrix?

It is a static assessment in time

3-stage strategic decision making framework — what is stage 2?

Matching stage

_______ refers to generate feasible alternative strategies that match external opportunities and threats with internal strengths and weaknesses

Matching stage

If we cannot assign attractive scores to a strategy for a specific factor in QSPM, we _______ attractive scores to other strategies that are compared with the strategy together

NOT cannot assign Maybe usually cannot assign?

Which matrix is included in the decision stage of the strategy formulation framework?

Quantitative Strategic Planning Matrix (QSPM)

In the Boston Consulting Group (BCG) Matrix, how would a division with a low relative market share position in a high growth industry be described?

Question Mark

In the Boston Consulting Group (BCG) matrix, which strategy would be more appropriate for a division classified as a Dog?

Retrenchment

Which strategy of the SWOT matrix involves matching internal strengths with external opportunites

SO strategy

What are the four types of division identified by BCG Matrix?

Stars, question marks, cash cows, dogs

T/F: attractive scores of strategies show how effective (or attractive) the strategies are in addressing or using specific factors of interest

True