Chapter 6-2

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.

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

Companies with more than one division

________ are the individuals most strongly identified with an idea or product and whose futures are linked to its success.

Champions

Internal politics do not affect the choice of strategies in organizations.

F

Strategy changes may be highly ineffective, but not counterproductive, if a supportive culture does not exist. True

F

The Grand Strategy Matrix is based on two evaluative dimensions, market share and market growth.

F

The two positive-rated dimensions on the SPACE Matrix are

FP and IP.

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

False

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 strategy-formulation technique reveals the relative attractiveness of alternative strategies and thus provides an objective basis for selecting specific strategies?

Quantitative Strategic Planning Matrix (QSPM)

Achieving satisfactory results with a popular strategy is generally better than trying to achieve optimal results with an unpopular strategy.

T

All organizations are political.

T

Alternative strategies don't come out of the blue; they are derived from the firm's vision, mission, objectives, external audit, and internal audit.

T

Both the Internal-External (IE) and Boston Consulting Group (BCG) Matrices are called portfolio matrices.

T

The IE Matrix can be divided into three major regions that have different strategy implications: grow and build; hold and maintain; and harvest or divest.

T

The most important determinants of an organization's overall strategic position are considered to be the two internal dimensions, financial position (FP), and competitive position (CP), and the two external dimensions, industry position (IP), and stability position (SP).

T

When a firm located in Quadrant I of the Grand Strategy Matrix is too heavily committed to a single product, related diversification may be appropriate to reduce the risks associated with a narrow product line.

T