Mgt 3830 Ch. 6

What type of strategies would you recommend when a firm's SPACE Matrix directional vector has the coordinates (-2, +3)? a. Aggressive b. Conservative c. Competitive d. Defensive e. Integrative

b

The two positive-rated dimensions on SPACE Matrix are a. FS and CA. b. CA and ES. c. FS and IS. d. IS and ES. e. FS and ES.

c

Each of the nine techniques included in the strategy formulation framework rely on the use of a. strictly factual data. b. luck. c. financial formulas and statistics. d. intuition and analysis. e. synergy.

d

The top row of a QSPM consists of alternative strategies derived from all of these except: a. Grand Strategy Matrix. b. BCG Matrix. c. Space Matrix. d. CPM Matrix. e. IE Matrix.

d

According to the Grand Strategy Matrix, which strategy is recommended for a firm with rapid market growth and a strong competitive position? a. Market penetration b. Conglomerate diversification c. Joint venture d. Retrenchment e. Liquidation

a

An organization that has a low relative market share position and competes in a slow-growth industry is referred to as a a. dog. b. question mark. c. star. d. cash cow. e. cowboy.

a

Firms located in which quadrant of the Grand Strategy Matrix are in an excellent strategic position? a. I b. II c. III d. IV e. V

a

How would a division with a low relative market share position in a high growth industry be described? a. question mark b. cash cow c. star d. stuck-in-the-middle e. dog

a

For companies located in Quadrant III of the Grand Strategy Matrix, the first strategy recommended is a. extensive cost and asset reduction. b. asset expansion. c. employee expansion. d. immediate liquidation of assets. e. divestiture.

a

For what type of company is the BCG Matrix ideal for analyzing? a. Companies with more than one division b. All companies c. Companies with annual sales greater than $1 million d. Companies with annual sales of less than $1 million e. Large companies

a

In the SPACE analysis, what does a (+6, +3) strategy profile portray? a. A strong industry b. An unstable environment c. A stable environment d. A weak industry e. A weak financial position

a

Today, what are boards of directors composed mostly of? a. outsiders b. management c. union d. employees e. stockholders

a

What are two external dimensions of the SPACE Matrix? a. Environmental stability and industry strength b. Environmental stability and competitive advantage c. Industry strength and competitive advantage d. Competitive advantage and financial strength e. Financial strength and industry strength

a

What term is defined as the product of multiplying ratings by attractiveness scores in each row of the QSPM? a. Total attractiveness scores b. Sum total attractiveness scores c. Weighted scores d. Total weighted scores e. Factors

a

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. cash cow c. cat d. question mark e. dog

a

Which of these is an attractive strategy for a cash cow division? a. Concentric diversification b. Horizontal integration c. Conglomerate diversification d. Backward integration e. Forward integration

a

Which stage of the strategy formulation framework contains the Internal-Factor Evaluation Matrix? a. input stage b. analysis stage c. matching stage d. decision stage e. output stage

a

Which stage of the strategy formulation framework includes an Internal Factor Evaluation Matrix and a Competitive Profile Matrix? a. input b. matching c. decision d. penetration e. research

a

A division with a high relative market share position in a low-growth industry can be described as a a. star b. cash cow c. question mark d. dog e. failure

b

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. a. I b. II c. III d. IV e. V

b

In the BCG Matrix, which element represents the industry growth rate in sales, measured in percentage terms? a. x-axis b. y-axis c. first quadrant d. second quadrant e. third quadrant

b

Strategy analysis and choice largely involves making __________ decisions based on __________ information. a. long-term; short-term b. subjective; objective c. short-term; long-term d. subjective; short-term e. objective; subjective

b

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

b

What includes the set of shared values, beliefs, attitudes, customs, norms, personalities, heroes and heroines that describe a firm? a. Strategy b. Culture c. Mission d. Objectives e. QSPM

b

Which matrix is included in the decision stage of the strategy formulation framework? a. Internal Factor Evaluation Matrix b. Quantitative Strategic Planning Matrix c. BCG Business Portfolio Matrix d. Grand Strategy Matrix e. SPACE Matrix

b

Which strategies aim at improving internal weaknesses by taking advantage of external opportunities? a. SO b. WO c. SW d. ST e. WT

b

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. Concept formulation c. Strategy d. SWOT e. An opportunity

c

What is a weakness associated with a SWOT Matrix? 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 time

c

What tactic involves shifting focus from specific issues to more general ones? a. Equifinality b. Focus on higher-order issues c. Generalization d. Satisficing e. None of the above

c

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

c

Which stage of the strategy-formulation framework involves the Quantitative Strategic Planning Matrix? a. Stage 1 b. Stage 2 c. Stage 3 d. Stage 4 e. Stage 5

c

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. QSPM d. IFE e. CPM

c

According to the Grand Strategy Matrix, organizations in which quadrant have a strong competitive position but are in a slow-growth industry, a. I b. II c. III d. IV e. V

d

All of the following are principles of good organizational governance, as established by Business Week, except: a. No directors do business with the company or accept consulting or legal fees from the firm. b. The audit, compensation and nominating committees are made up solely of outside directors. c. Each director owns a large equity stake in the company, excluding stock options. d. At least two directors are current or former company executives. e. The CEO is not also the Chairperson of the Board.

d

The two internal dimensions represented on the axes of the SPACE Matrix are a. environmental stability and industry strength. b. industry strength and internationalization. c. internationalization and competitive advantage. d. competitive advantage and financial strength. e. financial strength and environmental stability.

d

Through which tactic is it possible to achieve similar results using different means or paths? a. Generalization b. Satisficing c. Focus on higher-order issues d. Equifinality e. Specialization

d

What analytical tool has four quadrants based on two dimensions: competitive position and market growth? a. Competitive Profile Matrix b. Internal-External Matrix c. SPACE Matrix d. Grand Strategy Matrix e. QSPM

d

Which of the following is not a step of a SWOT Matrix? a. List the firm's key external threats. b. Match strengths with external opportunities and record the resultant SO strategies in the appropriate cell. c. Match internal weaknesses with external threats and record the resultant WT strategies. d. List the firm's external weaknesses. e. List the firm's external opportunities.

d

Which of these is not a SPACE Matrix quadrant? a. Aggressive b. Defensive c. Competitive d. Offensive e. Conservative

d

Which strategies use a firm's strengths to avoid or reduce the impact of external threats? a. SW b. WO c. SO d. ST e. WT

d

How many cells are in a SWOT Matrix? a. two b. four c. six d. eight e. nine

e

Most likely, what was a cash cow in the past? a. dog b. failure c. question mark d. cat e. star

e

The act of oversight and direction for an organization is referred to as a. corporate lawmaking. b. centralized control. c. organizational direction. d. establishing norms. e. governance.

e

What is the highest number of strategies that can be examined at one time with the QSPM? a. 1 b. 2 c. 5 d. 10 e. There is no limit.

e

Which analytical tool consists of a nine-cell matrix? a. Matching Matrix b. Competitive Profile Matrix c. SPACE Matrix d. Grand Strategy Matrix e. Internal-External Matrix

e

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. BCG Matrix b. SPACE Matrix c. TOWS Matrix d. IE Matrix e. QSPM

e

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

e

Which section of the SWOT Matrix involves matching internal strengths with external opportunities? a. The WT cell b. The SW cell c. The WO cell d. The ST cell e. The SO cell

e

Which stage in the strategy-formulation framework focuses on generating feasible alternative strategies? a. Input b. Output c. Decision d. Throughput e. Matching

e

Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding environmental threats. a. SO b. WO c. SW d. ST e. WT

e