Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

In the SPACE analysis, what does a (+6, +3) strategy profile portray?

Accepted Answer

A)  A strong industry position 
B)  An unstable environment 
C)  A stable environment 
D)  A weak industry position 
E)  A weak financial position

Question 4

One positive feature of QSPM is that it does not require intuitive judgments and educated assumptions.

Accepted Answer

A) True 
 B)False

Question 5

Today 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 6

The four strategies of the SPACE Matrix are aggressive, conservative, offensive and defensive.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

What is the highest number of strategies that can be examined at one time with the QSPM?

Accepted Answer

A)  1 
B)  2 
C)  5 
D)  10 
E)  There is no limit.

Question 9

Describe the positive features and limitations of the Quantitative Strategic Planning Matrix (QSPM).

Accepted Answer

The answer of Describe the positive features and limitations of...

Question 10

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)  weakness.

Question 11

What analytical tool has four quadrants based on two dimensions: competitive position and market growth?

Accepted Answer

A)  Competitive Profile Matrix (CPM) 
B)  Internal-External (I
E)  Matrix 
C)  Strategic Position and Action Evaluation (SPAC
E)  Matrix 
D)  Grand Strategy Matrix 
E)  Quantitative Strategic Planning Matrix (QSPM)

Question 12

Which stage in the strategy-formulation framework focuses on generating feasible alternative strategies?

Accepted Answer

A)  Input 
B)  Output 
C)  Decision 
D)  Throughput 
E)  Matching

Question 13

The IE Matrix can be divided into three major regions that have different strategy implications: grow and build; hold and maintain; and harvest or divest.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

In a Boston Consulting Group (BCG) Matrix, all divisions are classified as either Question Marks, Stars, Cash Cows, or Dogs. Define each of these terms.

Accepted Answer

The answer of In a Boston Consulting Group (BCG) Matrix,...

Question 16

The top row of a Quantitative Strategic Planning Matrix (QSPM) consists of alternative strategies derived from all of the following EXCEPT

Accepted Answer

A)  Grand Strategy Matrix. 
B)  Boston Consulting Group (BCG) Matrix. 
C)  Strategic Position and Action Evaluation (SPAC
E)  Matrix. 
D)  Competitive Profile Matrix (CPM). 
E)  Internal-External (I
E)  Matrix.

Question 17

When a firm located in Quadrant I of the Grand Strategy Matrix is too heavily committed to a single product, related diversification may be appropriate to reduce the risks associated with a narrow product line.

Accepted Answer

A) True 
 B)False

Question 18

Strategy analysis and choice largely involves making subjective decisions based on objective information.

Accepted Answer

A) True 
 B)False

Question 19

Give five sets of coordinates of SPACE Matrix directional vectors that would suggest conservative strategies to be most appropriate.

Accepted Answer

The answer of Give five sets of coordinates of SPACE...

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 6: Strategy Analysis and Choice

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

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

In the SPACE analysis, what does a (+6, +3) strategy profile portray?

One positive feature of QSPM is that it does not require intuitive judgments and educated assumptions.

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

The four strategies of the SPACE Matrix are aggressive, conservative, offensive and defensive.

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

What is the highest number of strategies that can be examined at one time with the QSPM?

Describe the positive features and limitations of the Quantitative Strategic Planning Matrix (QSPM).

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

What analytical tool has four quadrants based on two dimensions: competitive position and market growth?

Which stage in the strategy-formulation framework focuses on generating feasible alternative strategies?

The IE Matrix can be divided into three major regions that have different strategy implications: grow and build; hold and maintain; and harvest or divest.

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

In a Boston Consulting Group (BCG) Matrix, all divisions are classified as either Question Marks, Stars, Cash Cows, or Dogs. Define each of these terms.

The top row of a Quantitative Strategic Planning Matrix (QSPM) consists of alternative strategies derived from all of the following EXCEPT

When a firm located in Quadrant I of the Grand Strategy Matrix is too heavily committed to a single product, related diversification may be appropriate to reduce the risks associated with a narrow product line.

Strategy analysis and choice largely involves making subjective decisions based on objective information.

Give five sets of coordinates of SPACE Matrix directional vectors that would suggest conservative strategies to be most appropriate.

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