Quizr: Strategic Management Quiz#2, MCQs

Strategic Management Quiz#2, MCQs

NOTE: Attempt all Questions to see the Result at the bottom of this page.

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1)

SPACE matrix has four quadrants. All of the following are SPACEMatrix quadrants EXCEPT:
- A) Aggressive
- B) Defensive
- C) Competitive
- D) Offensive
Right Answer is the option "D" Four-quadrant named aggressive, conservative, defensive, or competitive strategies

2)

Which of the following are the two internal dimensions represented on the axes of the SPACE Matrix?
- A) Environmental stability and industry strength
- B) Industry strength and competitive advantage
- C) Competitive advantage and financial strength
- D) Financial strength and environmental stability
Right Answer is the option "C" Internal dimensions: financial strength, competitive advantage, External dimensions: environment stability and industry strength

3)

BCG matrix is used in matching stage of strategy formulation framework. It plots the business units along which of the following dimensions?
- A) Market share and industry strength
- B) Market share and market growth rate
- C) Market growth rate and competitive position
- D) Market growth rate and environment stability
Right Answer is the option "B"

4)

When a division of an organization has a high relative market share and is in a fastgrowing industry, it will be categorized as which type in BCG matrix?
- A) Star
- B) Cash cow
- C) Question mark
- D) Dog
Right Answer is the option "A"

5)

Which of the following is the first step in developing QSPM?
- A) Developing a list of the firm’s key external and internal factors
- B) Determining the Attractiveness Scores for each strategy
- C) Examine the Stage 2 matrices and identify alternative strategies
- D) Assigning weights to each key external and internal factor
Right Answer is the option "A" Stage 1 of the formulation framework consists of the EFE Matrix, the IFE Matrix, and the Competitive Profile Matrix. Called the Input Stage, Stage 1 summarizes the basic input information needed to formulate strategies.

6)

Advantages of a functional organization structure would include all EXCEPT which one of the following?
- A) Promotes division and specialization of labor
- B) Promotes functional rivalry
- C) Promotes economic efficiency
- D) Promotes delegation of authority
Right Answer is the option "D" Some disadvantages of a functional structure are that it forces accountability to the top, minimizes career development opportunities, and is sometimes characterized by low employee morale, line/staff conflicts, poor delegation of authority, and inadequate planning for products and markets.

7)

Which one of the following is the organizational structure that most of the mediumsize organizations follow?
- A) Divisional structure
- B) Strategic business unit
- C) Functional structure
- D) Matrix structure
Right Answer is the option "A" Small firms tend to be functionally structured (centralized). Medium-size firms tend to be divisionally structured (decentralized). Large firms tend to use an SBU (strategic business unit) or matrix structure.

8)

A divisional structure by geographic area is most appropriate in which of the following situation?
- A) Organizations have similar branch facilities in dispersed areas
- B) Organization offers a limited number of products or services
- C) Organization needs strict control over product lines
- D) Organization has to serve a large geographic area
Right Answer is the option "A" A divisional structure by geographic area is appropriate for organizations whose strategies need to be tailored to fit the particular needs and characteristics of customers in different geographic areas. This type of structure can be most appropriate for organizations that have similar branch facilities located in widely dispersed areas

9)

“Performance comparison of organization business processes against an internal or external standard of recognized leaders.” Identify the termrelevant to the specified statement.
- A) Restructuring
- B) Restructuring
- C) Reengineering
- D) Benchmarking
Right Answer is the option "D" Benchmarking: performance comparison of organizational business processes against an internal or external standard of recognized leaders most often the comparison is made against a similar process in another organization considered "world class."

10)

What is a central strategy-implementation technique that allows an organization to examine the expected results of various actions and approaches?
- A) Financial budgeting
- B) TOWS analysis
- C) Projected financial statement
- D) External analysis
Right Answer is the option "C" Pro forma (projected) financial statement analysis is a central strategy implementation technique because it allows an organization to examine the expected results of various actions and approaches.