Chapter 6-Strategic Management (CAP) Questions With All Correct Answers

Chapter 6-Strategic Management (CAP) Questions With
All Correct Answers

An organization's present strategies, objectives and mission, coupled with the
external and internal audit information, provide a basis for generating and
evaluating feasible alternative strategies. correct answer -True

Alternative strategies don't come out of the blue; they are derived from the
firm's vision, mission, and objectives. correct answer -True

It is vital that strategists always consider all feasible alternatives that could
benefit the firm. correct answer -False

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

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

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, the
Strategic Position and Action Evaluation (SPACE) Matrix, the Boston
Consulting Group (BCG) Matrix, the Internal-External (IE) Matrix, and the
Grand Strategy Matrix are included in stage two of the strategy-formulation
framework. correct answer -True

Good intuitive judgment is always needed to determine appropriate weights
and ratings in the input stage matrices. correct answer -True

When completing the matching stage of the strategy-formulation framework,
the SWOT Matrix needs to be completed before the SPACE Matrix. correct
answer -False

The purpose of matching key factors is to generate feasible alternative
strategies. correct answer -True

Strengths-opportunities strategies are based on using a firm's internal
strengths to take advantage of external opportunities. correct answer -
True

,A SWOT Matrix is composed of four cells for the four types of strategies it
creates. correct answer -False

One of the steps of the SWOT Matrix is to list the firm's key external
opportunities. correct answer -True

The SWOT matrix, if used appropriately, does not have any limitations.
correct answer -False

The most important determinants of an organization's overall strategic
position are considered to be the two internal dimensions, financial position
(FP) and competitive position (CP), and the two external dimensions, industry
position (IP) and stability position (SP). correct answer -True

The four strategies of the SPACE Matrix are aggressive, conservative, offensive
and defensive. correct answer -False

Market penetration can be classified as either a conservative, aggressive, or
competitive strategy. correct answer -True

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

Conservative strategies in a SPACE Matrix most often include product
development, market development, market penetration, and related
diversification. correct answer -True

The firm should pursue conservative strategies if the coordinates of a SPACE
directional vector are (-1, +4). correct answer -True

A firm should pursue defensive strategies if the coordinates of a SPACE
directional vector are (+2, +3). correct answer -False

The firm should pursue aggressive strategies if the coordinates of a SPACE
directional vector are (+5, +4). correct answer -True

Relative market share position is given on the x-axis of the BCG Matrix.
correct answer -True

, The midpoint on the x-axis of a BCG Matrix is typically set at 0.05. correct
answer -False

The size of the circle in a BCG Matrix corresponds to the proportion of
corporate revenue generated by that business unit. correct answer -True

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

Stars, Question Marks, Cash Cows, and Dogs are the four quadrants exhibited
by the BCG Matrix. correct answer -True

Cash Cows represent the organization's best long-run opportunities for
growth and profitability. correct answer -False

The major benefit of the BCG Matrix is that it draws attention to the cash flow,
investment characteristics, and needs of an organization's various divisions.
correct answer -True

Viewing every business as either a Star, Cash Cow, Dog, or Question Mark is an
oversimplification. correct answer -True

The BCG Matrix does not reflect whether or not various divisions or their
industries are growing over time. correct answer -True

Having no temporal qualities, the BCG Matrix is a snapshot of an organization
at a given point in time. correct answer -True

Both IE and BCG Matrices are called portfolio matrices. correct answer -
True

The BCG Matrix requires more information about the divisions than the IE
Matrix. correct answer -False

On the x-axis of the IE Matrix, an IFE total weighted score of 2.5 represents a
weak internal position. correct answer -False