Question 1

Explain the benefits and limitations of developing a Boston Consulting Group Matrix.

Accepted Answer

The BCG Matrix has one major benefit: draws attention to the cash flow, investment characteristics and needs of an organization's various divisions.
The BCG Matrix has some limitations: 1) Viewing every business as either a star, cash cow, dog or question mark is an oversimplification

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

Which strategies use a firm's strengths to avoid or reduce the impact of external threats?

Accepted Answer

A)  SW 
B)  WO 
C)  SW. 
D)  ST 
E)  WT 
A)  SW 
B)  WO 
C)  SW. 
D)  ST 
E)  WT

Question 5

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:

Accepted Answer

A)  Input 
B)  Concept formulation 
C)  Strategy 
D)  SWOT 
E)  An opportunity 
A)  Input 
B)  Concept formulation 
C)  Strategy 
D)  SWOT 
E)  An opportunity

Question 6

Which of these is not a SPACE Matrix quadrant?

Accepted Answer

A)  Aggressive 
B)  Defensive 
C)  Competitive 
D)  Offensive 
E)  Conservative 
A)  Aggressive 
B)  Defensive 
C)  Competitive 
D)  Offensive 
E)  Conservative

Question 7

Step 1 of a QSPM assigns weights to each key external and internal factor.

Accepted Answer

A) True 
 B)False

Question 8

Most likely, what was a cash cow in the past?

Accepted Answer

A)  dog 
B)  failure 
C)  question mark 
D)  cat 
E)  star 
A)  dog 
B)  failure 
C)  question mark 
D)  cat 
E)  star

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

What are two external dimensions of the SPACE Matrix?

Accepted Answer

A)  Environmental stability and industry strength 
B)  Environmental stability and competitive advantage 
C)  Industry strength and competitive advantage 
D)  Competitive advantage and financial strength 
E)  Financial strength and industry strength 
A)  Environmental stability and industry strength 
B)  Environmental stability and competitive advantage 
C)  Industry strength and competitive advantage 
D)  Competitive advantage and financial strength 
E)  Financial strength and industry strength

Question 11

Boards of directors are composed mostly of outsiders who are becoming more involved in an organization's strategic management.

Accepted Answer

A) True 
 B)False

Question 12

Cash cows represent the organization's best long-run opportunities for growth and profitability.

Accepted Answer

A) True 
 B)False

Question 13

Which strategy would be most appropriate for a company classified as a Dog?

Accepted Answer

A)  market penetration 
B)  market development 
C)  product development 
D)  retrenchment 
E)  forward integration 
A)  market penetration 
B)  market development 
C)  product development 
D)  retrenchment 
E)  forward integration

Question 14

Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding environmental threats.

Accepted Answer

A)  SO 
B)  WO 
C)  SW 
D)  ST 
E)  WT 
A)  SO 
B)  WO 
C)  SW 
D)  ST 
E)  WT

Question 15

Firms located in which quadrant of the Grand Strategy Matrix are in an excellent strategic position?

Accepted Answer

A)  I 
B)  II 
C)  III 
D)  IV 
E)  V 
A)  I 
B)  II 
C)  III 
D)  IV 
E)  V

Question 16

Today, what are boards of directors composed mostly of?

Accepted Answer

A)  outsiders 
B)  management 
C)  union 
D)  employees 
E)  stockholders 
A)  outsiders 
B)  management 
C)  union 
D)  employees 
E)  stockholders

Question 17

The Sarbanes-Oxley Act put an end to the "country-club" atmosphere of most boards and has shifted power from CEOs to directors.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The BCG Matrix limitations include all of these except:

Accepted Answer

A)  viewing every business as a star, cash cow, dog or question mark can be an oversimplification. 
B)  requiring at least three years' worth of data. 
C)  not reflecting divisional or industry growth over time. 
D)  not allowing a company to be classified as somewhere in between two categories. 
E)  other variables such as size of market and competitive advantages are not considered 
A)  viewing every business as a star, cash cow, dog or question mark can be an oversimplification. 
B)  requiring at least three years' worth of data. 
C)  not reflecting divisional or industry growth over time. 
D)  not allowing a company to be classified as somewhere in between two categories. 
E)  other variables such as size of market and competitive advantages are not considered

Question 20

BCG Matrix requires more information about the divisions than the IE Matrix.

Accepted Answer

A) True 
 B)False

Explain the benefits and limitations of developing a Boston Consulting Group Matrix.

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

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

Which strategies use a firm's strengths to avoid or reduce the impact of external threats?

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:

Which of these is not a SPACE Matrix quadrant?

Step 1 of a QSPM assigns weights to each key external and internal factor.

Most likely, what was a cash cow in the past?

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

What are two external dimensions of the SPACE Matrix?

Boards of directors are composed mostly of outsiders who are becoming more involved in an organization's strategic management.

Cash cows represent the organization's best long-run opportunities for growth and profitability.

Which strategy would be most appropriate for a company classified as a Dog?

Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding environmental threats.

Firms located in which quadrant of the Grand Strategy Matrix are in an excellent strategic position?

Today, what are boards of directors composed mostly of?

The Sarbanes-Oxley Act put an end to the "country-club" atmosphere of most boards and has shifted power from CEOs to directors.

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

The BCG Matrix limitations include all of these except:

BCG Matrix requires more information about the divisions than the IE Matrix.

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Strategies in Action

Implementing Strategies: Management and Operations Issues

Implementing Strategies: Marketing, Financeaccounting, RD, and Mis Issues

Strategy Review, Evaluation, and Control

Filters

Exam 6: Strategy Analysis and Choice

Explain the benefits and limitations of developing a Boston Consulting Group Matrix.

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

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

Which strategies use a firm's strengths to avoid or reduce the impact of external threats?

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:

Which of these is not a SPACE Matrix quadrant?

Step 1 of a QSPM assigns weights to each key external and internal factor.

Most likely, what was a cash cow in the past?

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

What are two external dimensions of the SPACE Matrix?

Boards of directors are composed mostly of outsiders who are becoming more involved in an organization's strategic management.

Cash cows represent the organization's best long-run opportunities for growth and profitability.

Which strategy would be most appropriate for a company classified as a Dog?

Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding environmental threats.

Firms located in which quadrant of the Grand Strategy Matrix are in an excellent strategic position?

Today, what are boards of directors composed mostly of?

The Sarbanes-Oxley Act put an end to the "country-club" atmosphere of most boards and has shifted power from CEOs to directors.

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

The BCG Matrix limitations include all of these except:

BCG Matrix requires more information about the divisions than the IE Matrix.

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Strategies in Action

Implementing Strategies: Management and Operations Issues

Implementing Strategies: Marketing, Financeaccounting, RD, and Mis Issues

Strategy Review, Evaluation, and Control

Filters