QUIZ - Chapter 6

The two internal dimensions represented on the axes of the SPACE Matrix are industry position and internationalization. stability position and industry position. internationalization and competitive position. competitive position and financial position. financial position and stability position.

competitive position and financial position.

How many cells are in a SWOT Matrix? Six Two Eight Four Nine

nine

A positive feature of the Quantitative Strategic Planning Matrix (QSPM) is that sets of strategies can be examined sequentially or simultaneously. True False

true

In a BCG Matrix the pie slice indicates the proportion of corporate profits generated by that division. True False

true

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. True False

true

The purpose of matching key factors is to generate feasible alternative strategies. True False

true

The stability position (SP) and competitive position (CP) dimension variables in a SPACE Matrix are assigned a numerical value ranging from -1 (best) to -7 (worst). True False

true

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

A strong industry position

In the BCG Matrix, a division with a high relative market share position in a low-growth industry can be described as a Star. Failure. Dog. Cash Cow. Question Mark.

Cash cow

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

Make a list of the firm's key external opportunities and threats and internal strengths and 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 Unrelated diversification Liquidation Retrenchment Joint venture

Market penetration

What are the two external dimensions of the SPACE Matrix? Financial position and industry position Stability position and industry position Competitive position and financial position Industry position and competitive position Stability position and competitive position

Stability position and industry position

All of the following are principles of good organizational governance, as established by BusinessWeek, EXCEPT the CEO is not also the Chairperson of the Board. the audit, compensation and nominating committees are made up solely of outside directors. each director owns a large equity stake in the company. at least three directors are current or former company executives. each director attends at least 75 percent of all meetings.

at least three directors are current or former company executives.

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

false

The SWOT matrix, if used appropriately, does not have any limitations. True False

false

The first stage of the strategy-formulation framework is the input stage, and it is directly followed by the decision stage. True False

false

To objectively evaluate feasible alternative strategies identified in Stage 1, the Quantitative Strategic Planning Matrix (QSPM) uses input information derived from Stage 2. True False

false

Trying to achieve optimal results with an unpopular strategy is always better than achieving satisfactory results with a popular strategy. True False

false