Ch. 6 Multiple Choice
Which tactic emphasizes that a successful outcome is more important than imposing the method of achieving it?
Equifinality
Which stage of the strategy-formulation framework includes an Internal-Factor Evaluation Matrix and a Competitive Profile Matrix?
Input
Which stage of the strategy-formulation framework contains the Internal-Factor Evaluation Matrix?
Input stage?
Which of the following analytical tools consists of a nine-cell matrix?
Internal-External Matrix
Which of these is a limitation of QSPM?
It requires intuitive judgments and educated guesses are required.
Which section of the SWOT Matrix involves matching internal strengths with external opportunities?
The SO cell
Which of the following is a limitation associated with a SWOT Matrix?
The matrix has no temporal qualities.
Which strategies aim at improving internal weaknesses by taking advantage of external opportunities?
WO
What tactic involves shifting focus from specific issues to more general ones?
Generalization
What analytical tool has four quadrants based on two dimensions: competitive position and market growth?
Grand Strategy Matrix
Which of the following is not one of the steps involved in constructing a SWOT Matrix?
List the firm's external weaknesses.
When a division of an organization has a high relative market share and is in a fast-growing industry, it is called a
Star
What type of strategies would you recommend when a firm's SPACE Matrix directional vector has the coordinates (-2, +3)?
Conservative
What includes the set of shared values, beliefs, attitudes, customs, norms, personalities, heroes and heroines that describe a firm?
Culture
What is the highest number of strategies that can be examined at one time with the QSPM?
There is no limit.
What term is defined as the product of multiplying the weights by the Attractiveness Scores in each row of the QSPM?
Total Attractiveness Scores
Firms located in which quadrant of the Grand Strategy Matrix are in an excellent strategic position?
1
Although Quadrant ________ companies are growing, according to the Grand Strategy Matrix they are unable to compete effectively, and they need to determine why the firm's current approach is ineffective and how the company can best change to improve its competitiveness.
2
According to the Grand Strategy Matrix, organizations in which quadrant have a strong competitive position but are in a slow-growth industry?
4
In the SPACE analysis, what does a (+6, +3) strategy profile portray?
A strong industry position
Which of the following is the first step in developing a QSPM?
Make a list of the firm's key external opportunities/threats and internal strengths/weaknesses in the left column of the QSPM.
According to the Grand Strategy Matrix, which strategy is recommended for a firm with rapid market growth and a strong competitive position?
Market penetration
Which stage in the strategy-formulation framework focuses on generating feasible alternative strategies?
Matching
How many cells are in a SWOT Matrix?
Nine
Which of these is not a SPACE Matrix quadrant?
Offensive
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?
QSPM
Which strategy-formulation technique reveals the relative attractiveness of alternative strategies and thus provides an objective basis for selecting specific strategies?
QSPM
Which matrix is included in the decision stage of the strategy formulation framework?
Quantitative Strategic Planning Matrix
How would a division with a low relative market share position in a high growth industry be described?
Question mark
Which strategy would be most appropriate for a division classified as a Dog?
Retrenchment
Which strategies use a firm's strengths to avoid or reduce the impact of external threats?
ST
What are the two external dimensions of the SPACE Matrix?
Stability position and industry position
Which stage of the strategy-formulation framework involves the Quantitative Strategic Planning Matrix?
Stage 3
Forward integration would be an appropriate strategy for which of the following types of divisions?
Star
The top row of a QSPM consists of alternative strategies derived from all of the following except:
CPM Matrix
A division with a high relative market share position in a low-growth industry can be described as a
Cash Cow
What type of strategy would divestiture be classified as?
Defensive
A division that has a low relative market share position and competes in a slow-growth industry is referred to as a
Dog
All of the following are principles of good organizational governance, as established by Business Week, except:
at least two directors are current or former company executives.
The two internal dimensions represented on the axes of the SPACE Matrix are
competitive position and financial position.
For companies located in Quadrant III of the Grand Strategy Matrix, the first strategy recommended is
extensive cost and asset reduction.
The act of oversight and direction for an organization is referred to as
governance
Each of the nine techniques included in the strategy formulation framework rely on the use of
intuition and analysis
Today, boards of directors are composed mostly of
outsiders
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
strategy
Strategy analysis and choice largely involves making ________ decisions based on ________ information.
subjective; objective
All of the following are limitations of the BCG Matrix except:
the Matrix requires at least three years worth of data.
In the BCG Matrix, which element represents the industry growth rate in sales, measured in percentage terms?
y-axis
The two positive-rated dimensions on the SPACE Matrix are
FP and IP
Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding external threats?
WT
The BCG Matrix is designed specifically to enhance which type of firm's efforts to formulate strategies?
Companies with more than one division
