Question 1

Which of these is a basic activity of strategy evaluation?
A)Examining the underlying bases of current strategies
B)Measuring organizational performance
C)Taking corrective actions
D)Choices B and C only
E)All of the above

Accepted Answer

Strategy evaluation involves examining the bases of current strategies, measuring organizational performance, and taking corrective actions to ensure that the strategies are effective and aligned with the organization's goals.

Question 2

Corrective actions are almost always ________ except when external and internal factors have not significantly changed and the firm is progressing satisfactorily toward achieving stated objectives.
A)unnecessary
B)needed
C)undesirable
D)prohibitively expensive
E)futile

Accepted Answer

Corrective actions are necessary when things are not progressing as planned or when there are changes in external or internal factors that affect the firm's progress towards its objectives. If everything is going well and no significant changes have occurred, then corrective actions may not be necessary.

Question 3

Evaluating strategies on a continuous rather than on a periodic basis allows benchmarks of progress to be established and more effectively monitored.

Accepted Answer

Evaluating strategies on a continuous basis allows for more frequent monitoring of progress, which in turn facilitates the establishment of benchmarks and the identification of areas for improvement. Periodic evaluations, on the other hand, can be less effective in terms of identifying progress and making adjustments in a timely manner.

Question 4

It is most effective to conduct strategy evaluation annually,at the end of the fiscal year.

Accepted Answer

Strategy evaluation should be an ongoing process throughout the year, rather than just at the end of the fiscal year. This allows for adjustments and improvements to be made as needed.

Question 5

A revised ________ should focus on changes in the organization's management,marketing,finance and accounting,production and operations,research and development (R&D),and management information systems (MIS)strengths and weaknesses.
A)mission
B)IFE Matrix
C)vision
D)EFE Matrix
E)EPM Matrix

Accepted Answer

The IFE Matrix (Internal Factor Evaluation Matrix) is a strategic management tool that analyzes an organization's internal strengths and weaknesses. It focuses on the organization's management, marketing, finance and accounting, production and operations, research and development (R&D), and management information systems (MIS) strengths and weaknesses. Therefore, it is the best choice for the given statement.

Question 6

Explain why strategy evaluation can be a complex and sensitive undertaking.

Accepted Answer

The answer of Explain why strategy evaluation can be a...

Question 7

Which of the following is a corrective action a company might take to correct unfavorable variances?
A)Divesting a division
B)Revising objectives
C)Raising capital with stock or debt
D)Allocating resources differently
E)All of the above

Accepted Answer

The answer of Which of the following is a corrective...

Question 8

List and describe Rumelt's four criteria for evaluating strategies.

Accepted Answer

The answer of List and describe Rumelt's four criteria for...

Question 9

If you discover during the course of strategy evaluation that major changes have occurred in the firm's internal strategic position,you should
A)continue on the present strategic course.
B)wait until the next quarter to see if things revert.
C)take corrective actions.
D)follow the original strategic plan.
E)none of the above

Accepted Answer

If major changes have occurred in the firm's internal strategic position, it's important to take corrective actions in order to ensure the firm's long-term success. Continuing on the present strategic course or following the original strategic plan may no longer be viable options in light of the changes that have occurred. Waiting until the next quarter to see if things revert is not a proactive approach to addressing the issue.

Question 10

Most quantitative criteria are geared to ________ objectives rather than to ________ objectives.
A)top-management;employee
B)short-term;annual
C)annual;long-term
D)environmental;community
E)long-term;short-term

Accepted Answer

The answer of Most quantitative criteria are geared to ________...

Question 11

Which of these is a potential problem associated with using only quantitative criteria for selecting strategies?
A)Most quantitative criteria are geared to long-term objectives rather than annual objectives.
B)Different accounting methods can provide different results on many quantitative criteria.
C)Intuitive judgments are almost never used in deriving quantitative criteria.
D)Quantitative criteria include human factors that may be underlying causes of declining performance.
E)Quantitative criteria are not useful for comparisons of the firm's performance over different periods of time.

Accepted Answer

Different accounting methods can yield different results on many quantitative criteria, which can make it difficult to accurately compare strategies based on solely quantitative measures. It is important to also consider qualitative factors when selecting strategies to ensure a well-rounded approach.

Question 12

What corrective actions might a firm take during strategy evaluation?
A)Revise the business mission
B)Issue stock
C)Revise objectives
D)Sell a division
E)All of the above

Accepted Answer

All of the above are possible corrective actions a firm may take during strategy evaluation. Revision of business mission may be necessary if the current mission is no longer relevant to the market or does not align with the company's goals. If the company needs additional capital, it may issue stock. Objectives may need to be revised if they are unrealistic or no longer relevant. Selling a division may be a necessary action if it is not profitable or does not align with the company's strategy.

Question 13

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
E)Comparing expected results to actual results

Accepted Answer

The answer of Which of the following is NOT included...

Question 14

What are some of the reasons why strategy evaluation is becoming increasingly difficult with the passage of time?

Accepted Answer

The answer of What are some of the reasons why...

Question 15

________ are quantitative criteria commonly used to evaluate strategies.
A)Cash budgets
B)Balanced Scorecards
C)Capital Asset Pricing Models
D)Financial ratios
E)Present value strategic analyses

Accepted Answer

The answer of ________ are quantitative criteria commonly used to...

Question 16

Strategy evaluation is becoming increasingly easier with the passage of time,given technological advances.

Accepted Answer

The answer of Strategy evaluation is becoming increasingly easier with...

Question 17

The decreasing time span for which planning can be done with any degree of certainty is a reason strategy evaluation is more difficult today.

Accepted Answer

With the pace of technological advancements and changing market conditions, it is becoming increasingly difficult to predict outcomes and plan with certainty for a longer period of time. This makes strategy evaluation more challenging as there is a greater need for flexibility and adaptability.

Question 18

Financial ratios are used to compare a firm's performance over different time periods,to compare the firm's performance to industry averages,and to compare a firm's performance with
A)overall business standards.
B)projected goals.
C)the performance of suppliers.
D)non-financial ratios.
E)the performance of competitors.

Accepted Answer

Financial ratios are commonly used to compare a firm's performance with that of its competitors. This allows the firm to benchmark its performance against industry peers and identify areas where it may need to improve. Comparing a firm's performance to industry averages and historical data is also useful, but comparing performance with competitors provides a more accurate picture of how the firm is doing relative to others in the same industry.

Question 19

Regardless of the size of the organization,a certain amount of "management by wandering around" at all levels is essential to effective strategy evaluation.

Accepted Answer

"Management by wandering around" refers to the practice of managers and leaders going around the workplace to observe and interact with employees and processes. This allows for a better understanding of what is happening on the ground and helps in evaluating whether the strategies being implemented are working or not. It is important regardless of the size of the organization as it helps in staying connected with the employees and the work being done.

Question 20

A revised ________ should indicate how effective a firm's strategies have been in response to key opportunities and threats.
A)IFE Matrix
B)mission
C)EFE Matrix
D)vision
E)CPM Matrix

Accepted Answer

The EFE Matrix evaluates the external opportunities and threats faced by a firm, as well as its responses to these factors. It is used to determine the effectiveness of a firm's strategies in responding to key opportunities and threats.

Quiz 11: Strategy Monitoring

Which of these is a basic activity of strategy evaluation?

Corrective actions are almost always ________ except when external and internal factors have not significantly changed and the firm is progressing satisfactorily toward achieving stated objectives.

Evaluating strategies on a continuous rather than on a periodic basis allows benchmarks of progress to be established and more effectively monitored.

It is most effective to conduct strategy evaluation annually,at the end of the fiscal year.

A revised ________ should focus on changes in the organization's management,marketing,finance and accounting,production and operations,research and development (R&D) ,and management information systems (MIS) strengths and weaknesses.

Explain why strategy evaluation can be a complex and sensitive undertaking.

Which of the following is a corrective action a company might take to correct unfavorable variances?

List and describe Rumelt's four criteria for evaluating strategies.

If you discover during the course of strategy evaluation that major changes have occurred in the firm's internal strategic position,you should

Most quantitative criteria are geared to objectives rather than to objectives.

Which of these is a potential problem associated with using only quantitative criteria for selecting strategies?

What corrective actions might a firm take during strategy evaluation?

Which of the following is NOT included in measuring organizational performance?

What are some of the reasons why strategy evaluation is becoming increasingly difficult with the passage of time?

________ are quantitative criteria commonly used to evaluate strategies.

Strategy evaluation is becoming increasingly easier with the passage of time,given technological advances.

The decreasing time span for which planning can be done with any degree of certainty is a reason strategy evaluation is more difficult today.

Financial ratios are used to compare a firm's performance over different time periods,to compare the firm's performance to industry averages,and to compare a firm's performance with

Regardless of the size of the organization,a certain amount of "management by wandering around" at all levels is essential to effective strategy evaluation.

A revised ________ should indicate how effective a firm's strategies have been in response to key opportunities and threats.