MCQ Questions on Strategy Evaluation

1. Which of these is/are a basic activity of strategy evaluation?

a. Reviewing the underlying internal and external factors that represent the bases of
current strategies
b. Measuring organizational performance
c. Taking corrective actions
d. All of the above.

2. The purpose of strategy evaluation is to

a. increase the budget annually.
b. alert management to problems or potential problems.
c. make budget changes.
d. evaluate employees’ performance.

3. What is the cornerstone of effective strategy evaluation?

a. Adequate and timely feedback
b. Quality and quantity of managers
c. Smaller ratio of top- to lower-level management
d. Evaluation preceding implementation stage

4. All of these are Richard Rumelt’s criteria to evaluate a strategy except:

a. advantage.
b. consistency.
c. feasibility.
d. distinctiveness.

5. What is happening to strategy evaluation with the passage of time?

a. increasingly difficult
b. much simpler
c. very convenient
d. an unnecessary activity

6. All of the following are reasons strategy evaluation is more difficult today
except:
a. a dramatic increase in the environment’s complexity.
b. the increasing number of variables.
c. the increase in the number of both domestic and world events affecting
organizations.
d. the decreasing difficulty of predicting the future with accuracy.
7. Which of the following is not a reason for the increasing difficulty of
evaluating strategies?
a. Product life cycles are longer today than ever.
b. Domestic and world economies are less stable than ever.
c. Product development cycles are longer than ever.
d. Technological advancement is more rapid.

8. What is important because organizations face dynamic environments in

which key external and internal factors often change quickly and dramatically?
a. Strategy formulation
b. Strategy evaluation
c. Strategy simplification
d. Strategy modification

    
9. A final broad test of strategy is its
a. advantage.
b. feasibility.
c. consonance.
d. consistency.

10. Competitive advantage normally is the result of superiority in resources,

skills and
a. employees.
b. position.
c. consistency.
d. feasibility.

11. What term refers to the need for strategists to examine sets of trends, as
well as individual trends in evaluating strategies?
a.       Consistency
b.      Consonance
c.       Synergy
d.      Feasibility

12. In evaluating strategies, which one of Rumelt’s criteria for evaluating

strategies, refers to the need for strategists to examine sets of trends?
a. consistency
b. consonance
c. feasibility
d. advantage
13. If success for one organizational department means failure for another
department, then strategies may be
a. synergistic.
b. advantageous.
c. failures.
d. inconsistent.

14. When empowered employees are held accountable for and pressured to
achieve specific goals and are given wide latitude in their actions to achieve
them, there can be
a. increased productivity.
b. dysfunctional behavior.
c. decreased number of complaints.
d. decreased turnover.

15. Strategy-evaluation activities should be performed

a. on a periodic basis.
b. at the onset of a problem.
c. on a continuous basis.
d. upon completion of major projects.

16. Corrective actions are not needed when

a. changes have occurred in the firm’s internal strategic position.
b. external and internal factors have not significantly changed.
c. the firm is not progressing satisfactorily toward achieving stated objectives.
d. competitive factors are on the rise.

17. When you discover major changes have occurred in the firm’s internal
strategic position while conducting strategy evaluation, you should
a. continue on the present strategic course.
b. immediately discontinue all aspects of the present strategic course.
c. take corrective actions.
d. add additional funds to the present strategic plan.

20. Which of the following is not included in measuring organizational

performance?
a. Comparing results to competitors’ expectations.
b. Examining progress being made toward meeting stated objectives.
c. Investigating deviations from plans.
d. Evaluating individual performance.

21. Ineffectiveness and/or inefficiencies indicate the need for

a. layoffs.
b. consultants.
c. some form of correction action.
d. reductions in pay.
24. Strategy evaluation is based on
a. empirical data.
b. qualitative criteria.
c. objective data.
d. qualitative and quantitative criteria.

27. What corrective actions should a firm take during strategy evaluation?
a. Revising the business mission
b. Revising objectives
d. Selling a division
e. All of the above

28. What occurs when the nature, types and speed of changes overpower an
individual’s or organization’s ability and capacity to adapt?
a. Corporate downfall
b. Corrective actions
c. Future shock
d. Corporate agility

29. Corrective actions should

a. strengthen an organization’s competitive position in its industry.
b. streamline asset holdings.
c. reduce the staff size.
d. involve abandoning existing strategies.

30. What is the best way to overcome individuals’ resistance to change in

strategy evaluation?
a. Participation
b. Command-and-control
c. Laissez-faire system
d. Rational argument

31. An organization’s ability to adapt successfully to changing circumstances

refers to its
a. corporate agility.
b. future shock.
c. dynamism.
d. revision power.

32. Corrective action should do all of the following except:

a. capitalize upon internal strengths.
b. avoid external opportunities.
c. avoid external threats.
d. improve internal weaknesses.

45. What term refers to a systematic process of objectively obtaining and

evaluating evidence regarding assertions about economic actions and events
to ascertain the degree of correspondence between these assertions and
established criteria, and communicating the results to interested users?
a. Auditing
b. Innovation
c. R&D
d. Strategic Management

46. Which type of auditors are specifically responsible for safeguarding the
assets of a company?
a. Independent auditors
b. Government auditors
c. Internal auditors
d. External auditors

97. All of the following are key attributes that serve as evaluative criteria
except
a. ability to react.
b. quality of products or services.
c. innovativeness.
d. financial soundness.

103. Controls need to be ____________ rather than ____________.

a. action oriented; information oriented
b. cultural; political
c. qualitative; quantitative
d. measurable; timely

104. The strategy-evaluation process should foster

a. mutual understanding.
b. implementation.
c. corporate culture.
d. profit centers.

105. ______________ determine the final design of a firm’s strategy-evaluation

and control system.
a. Opportunities
b. Threats
c. External characteristics
d. The organization’s characteristics

106. __________ is having alternative plans that can be put into effect if certain
key events do not occur as expected.
a. Corporate agility
b. Scenario planning
c. Strategy evaluation
d. Contingency planning

109. Who performs audits?

a. Independent auditors
b. Government auditors
c. Internal auditors
d. All of above

112. In strategy evaluation, computers need to be viewed as _________ rather

than as _________.
a. unreliable; essential
b. essential; unreliable
c. tools; actual decision-making devices
d. decision-making devices; tools