GEB Chapter 6

The BCG Matrix is designed specifically to enhance which type of firm's efforts to formulate strategies? A) Companies with more than one division B) Large companies C) Companies with annual sales greater than $1 million D) Companies with annual sales of less than $1 million E) All companies

A) Companies with more than one division

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) Unrelated diversification C) Joint venture D) Retrenchment E) Liquidation

A) Market penetration

________ 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) Culture

What type of strategy would divestiture be classified as? A) Aggressive B) Defensive C) Competitive D) Offensive E) Conservative

B) Defensive

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) IV

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

A) A strong industry position

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) I

What are the two external dimensions of the SPACE Matrix? A) Stability position and industry position B) Stability position and competitive position C) Industry position and competitive position D) Competitive position and financial position E) Financial position and industry position

A) Stability position and industry position

What term is defined as the product of multiplying the weights by the Attractiveness Scores in each row of the QSPM? A) Total Attractiveness Scores B) Sum Total Scores C) Weighted Scores D) Total Weighted Scores E) Factors

A) Total Attractiveness Scores

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) extensive cost and asset reduction.

Today, boards of directors are composed mostly of A) outsiders. B) management. C) union members. D) company employees. E) company stockholders

A) outsiders.

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) Conservative

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) II

Which matrix is included in the decision stage of the strategy formulation framework? A) Internal Factor Evaluation Matrix B) Quantitative Strategic Planning Matrix C) Boston Consulting Group Matrix D) Grand Strategy Matrix E) Strategic Position and Action Evaluation Matrix

B) Quantitative Strategic Planning Matrix

All of the following are limitations of the BCG Matrix EXCEPT A) Viewing every business as a star, cash cow, dog or question mark can be an oversimplification. B) The Matrix requires at least three years worth of data. C) The Matrix does not reflect divisional or industry growth over time. D) The Matrix does not allow a company to be classified as somewhere in between two categories. E) Variables such as size of market and competitive advantages are not considered in the Matrix.

B) The Matrix requires at least three years worth of data.

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) subjective; objective

The two positive-rated dimensions on the SPACE Matrix are A) FP and CP. B) CP and SP. C) FP and IP. D) IP and SP. E) FP and SP

C) FP and IP.

What tactic involves shifting focus from specific issues to more general ones? A) Equifinality B) Focus on Higher-Order Issues C) Generalization D) Satisfying E) None of the above

C) Generalization

Which of the following is a limitation 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) It is a static assessment in time. 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) It is a static assessment in time.

Which of these is a limitation of QSPM? A) Only a few strategies can be evaluated simultaneously. B) It is prohibitively expensive. C) It requires intuitive judgments and educated assumptions. D) Sets of strategies must be examined in reverse order. E) It requires equal participation from the entire organization.

C) It requires intuitive judgments and educated assumptions.

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) QSPM

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) weakness.

C) strategy.

All of the following are principles of good organizational governance, as established by Business Week, EXCEPT A) Each director attends at least 75 percent of all meetings. 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 three directors are current or former company executives. E) The CEO is not also the Chairperson of the Board.

D) At least three directors are current or former company executives.

Which tactic emphasizes that a successful outcome is more important than imposing the method of achieving it? A) Generalization B) Satisfying C) Focus on higher-order issues D) Equifinality E) Specialization

D) Equifinality

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) Grand Strategy Matrix

Which of the following is NOT one of the steps involved in constructing a SWOT Matrix? A) List the firm's key external threats. B) Match internal 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) List the firm's external weaknesses.

Which of these is NOT a SPACE Matrix quadrant? A) Aggressive B) Defensive C) Competitive D) Offensive E) Conservative

D) Offensive

The two internal dimensions represented on the axes of the SPACE Matrix are A) stability position and industry position. B) industry position and internationalization. C) internationalization and competitive position. D) competitive position and financial position. E) financial position and stability position.

D) competitive position and financial position.

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) intuition and analysis.

Which of the following is the first step in developing a 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) Make a list of the firm's key external opportunities/threats and internal strengths/weaknesses in the left column of the QSPM

Which stage in the strategy-formulation framework focuses on generating feasible alternative strategies? A) Input B) Output C) Decision D) Throughput E) Matching

E) Matching

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 upon or improved? A) BCG Matrix B) SPACE Matrix C) SWOT Matrix D) IE Matrix E) QSPM

E) QSPM

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) There is no limit.

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) governance.

Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding external threats? A) SO B) WO C) SW D) ST E) WT

e. WT