Intf 354 Self Test Questions Nr. 6 Strategic Management: a competitive Advantage Approach, 14e (David) Chapter 6 Strategy Analysis and Choice



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INTF 354 Self Test Questions Nr.6

Strategic Management: A Competitive Advantage Approach, 14e (David)

Chapter 6 Strategy Analysis and Choice

A.True/False

1) 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.


2) The SWOT matrix is widely used as an organizational tool and, if used appropriately, does not have any limitations.
3) 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).
4) The four strategies of the SPACE Matrix are aggressive, conservative, offensive and defensive.
5) Market penetration can be classified as either a conservative, aggressive, or competitive strategy.
6) The SP and CP dimension variables in a SPACE Matrix are assigned a numerical value ranging from -1 (best) to -7 (worst).

B.Multiple Choice

1) Which strategy-formulation technique reveals the relative attractiveness of alternative strategies and thus provides an objective basis for selecting specific strategies?

A) SWOT

B) SPACE


C) QSPM

D) IFE


E) CPM
2) Which section of the SWOT Matrix involves matching internal strengths with external opportunities?

A) The WT cell

B) The SW cell

C) The WO cell

D) The ST cell

E) The SO cell


3) Which strategies aim at improving internal weaknesses by taking advantage of external opportunities?

A) SO

B) WO


C) SW

D) ST


E) WT
4) Which of the following is NOT one of the steps involved in constructing a SWOT Matrix?

A) List the firm's key external threats.

B) Match internal strengths with external opportunities, and record the resultant SO strategies in the appropriate cell.

C) Match internal weaknesses with external threats, and record the resultant WT strategies.

D) List the firm's external weaknesses.

E) List the firm's external opportunities.


5) The two internal dimensions represented on the axes of the SPACE Matrix are

A) stability position and industry position.

B) industry position and internationalization.

C) internationalization and competitive position.

D) competitive position and financial position.

E) financial position and stability position.


6) What are the two external dimensions of the SPACE Matrix?

A) Stability position and industry position

B) Stability position and competitive position

C) Industry position and competitive position

D) Competitive position and financial position

E) Financial position and industry position


7) The two positive-rated dimensions on the SPACE Matrix are

A) FP and CP.

B) CP and SP.

C) FP and IP.

D) IP and SP.

E) FP and SP.


8) The BCG Matrix is designed specifically to enhance which type of firm's efforts to formulate strategies?

A) Companies with more than one division

B) Large companies

C) Companies with annual sales greater than $1 million

D) Companies with annual sales of less than $1 million

E) All companies



C.Essay Question

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


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