MGT603 Solve Quizs

41. Which of the following statements best defines “stage 1” of the strategy formulation framework?

► It summarizes the basic input information needed to formulate strategies p;

97

► It focuses on generating feasible alternative strategies

► It involves a single technique

► It is based on assumptions

42. What type of strategies would you recommend when a firm’s SPACE

Matrix directional vector has the coordinates (+1, +5)?

► Aggressive p; 100

► Conservative

► Competitive

► Defensive

43. “Establishing annual objectives” refers to which of the following

activities?

► It is a top-level activity

► It is a centralized activity

► It is a decentralized activity p; 114

► It is a centralized-decentralized activity

44. Which pay strategy is Not a form of incentive compensation?

► Bonus system

► Hourly wage p; 123

► Gain sharing

► Profit sharing

45. Which of the following is NOT a rule of thumb when using product

positioning as a strategy-implementation tool?

► “Don’t squat between segments”

► “Look for the hole or vacant niche”

► “Try to serve more than one segment with the same strategy”

► “Don’t position yourself in the middle of the map”

2. Don't squat between segments

3. Don't serve two segments with same strategy

4. Don't position yourself in the middle of the map

46. Identify which of the following are mostly based on a firm's internal

assessment according to Richard Rumelt.

► Consistency and consonance

► Consonance and advantage

► Advantage and feasibility

► Feasibility and consistency

According to Rumelt, consistency and feasibility are largely based on a firm’s

internal assessment.

47. Which of the following statements is TRUE if success for one

organizational department means failure for another department?

► Strategies may be synergistic

► Strategies may be advantageous

► Strategies may be inconsonant

► Strategies may be inconsistent

48. All of the following are the qualitative questions for evaluating strategies

identified by Seymour Tilles EXCEPT:

► Is the strategy internally consistent?

► Is the strategy having an appropriate return on investment?

► Is the strategy consistent with the environment?

► Is the strategy appropriate in view of available resources?

Seymour Tilles identified six qualitative questions that are useful in

evaluating strategies:

1. Is the strategy internally consistent?

2. Is the strategy consistent with the environment?

3. Is the strategy appropriate in view of available resources?

4. Does the strategy involve an acceptable degree of risk?

5. Does the strategy have an appropriate time framework?

6. Is the strategy workable?

49. Which of the following is often considered the first step in strategic

planning?

► Devising a mission statement

► Developing a vision statement M. File

► Setting annual objectives

► Formulating set of strategies

50. External opportunities and threats that can significantly benefit or harm an

organization may include all of the following except:

► Demographics

► Competitive trends

► Technological changes

► Research and development M. File

Ref: External opportunities and external threats refer to economic, social, cultural,

demographic, environmental, political, legal, governmental, technological, and

competitive trends and events that could significantly benefit or harm an

organization in the future.