Strategy Analysis and Choice Show 2. The Toxics Release Inventory (TRI) is administered by the Environmental
Protection Agency in the 3. Sustainability is the idea that a business can meet its financial goals without hurting customers. A Comprehensive Strategy-Formulation Framework 5. Stage 2 in the
strategy-formulation framework involves the Quantitative Strategic Planning Matrix. 6. 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. The Input
Stage The Matching Stage 10. Strengths-opportunities strategies are based on using a firm’s internal strengths to take advantage of external opportunities and threats. 11. A SWOT Matrix is composed of four cells for the four types of strategies it creates. 12. One of the steps of the SWOT Matrix is to list the firm’s key external opportunities. 13.
The SWOT matrix is widely used as an organizational tool and, if used appropriately, does not have any significant weaknesses. 14. The most important determinants of an organization’s overall strategic position are considered to be the two internal dimensions, financial strength (FS) and competitive advantage (CA), and the two external dimensions, industry strength (IS) and environmental stability (ES). 15.
The four strategies of the SPACE Matrix are aggressive, conservative, offensive and defensive. 16. The ES and CA dimension variables in a SPACE Matrix are assigned a numerical value ranging from –1 (best) to –6 (worst). 17. Conservative strategies in a SPACE Matrix most often include product development, market development, market penetration and concentric diversification. 18.
The firm should pursue conservative strategies if the coordinates of a SPACE directional vector are (1,4). 19. A firm should pursue defensive strategies if the coordinates of a SPACE directional vector are (2,3). 20. The firm should pursue aggressive strategies if the coordinates of a SPACE directional vector are (5,4). 21. Relative market share position is given on
the x-axis of the BCG Matrix. 22. The midpoint on the x-axis of a BCG Matrix is typically set at 0.05. 23. The size of the circle in a BCG Matrix corresponds to the proportion of corporate revenue generated by that business unit. 24. In a BCG Matrix the pie slice indicates the proportion of corporate profits generated by that division. 25. Star, question mark, cash cow and dogs are the four quadrants exhibited by the SPACE Matrix. 26. Cash cows represent the organization’s best long-run opportunities for growth and profitability. 27. 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. 28.
Viewing businesses as star, cash cow, dog or question mark is an oversimplification. 29. The BCG Matrix does not reflect whether or not various divisions or their industries are growing over time. 30. Having no temporal qualities, the BCG Matrix is a snapshot of an organization at a given point in time. 31. Both IE and BCG Matrices are called portfolio
matrices. 32. BCG Matrix requires more information about the divisions than the IE Matrix. 33. On the x-axis of the IE Matrix, an internal factor evaluation score of 2.5 represents a weak internal position. 34. 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. 35. The Grand Strategy Matrix is based on two evaluative dimensions, market share and market growth. 36. According to the Grand Strategy Matrix, when a Quadrant I firm is too heavily committed to a single product, then concentric diversification may reduce the risks associated with a narrow product line. 37. According to the Grand Strategy Matrix, Quadrant III
organizations compete in rapid-growth industries and have weak competitive positions. The Decision Stage 39. Step 1 of a QSPM assigns weights to each key external and internal factor. 40. Total
attractiveness scores are defined as the sum of the attractiveness scores in a given column of the QSPM and are computed in the second step of the QSPM. 41. A positive feature of QSPM is that sets of strategies can be examined sequentially or simultaneously. 42. One positive feature of QSPM is that it does not require intuitive judgments and educated assumptions.
Cultural Aspects of Strategy Choice 44. Strategy changes may be highly effective and productive if a supportive culture does not exist. 45. Whenever two firms merge, it becomes especially important to evaluate and consider
culture-strategies linkages. The Politics of Strategy Choice 47. Focusing on Higher-Order Issues means it is often possible to achieve similar results using different means or
paths. 48. Shifting focus from specific issues to more general ones may increase strategists’ options for gaining organizational commitment. Governance Issues 50. Boards of directors are composed mostly of outsiders who are becoming more
involved in an organization’s strategic management. 51. The Sarbanes-Oxley Act put an end to the “country-club” atmosphere of most boards and has shifted power from CEOs to directors. Multiple Choice A Comprehensive Strategy-Formulation Framework 54. Which stage of the
strategy-formulation framework involves the Quantitative Strategic Planning Matrix? 55. Which strategy formulation technique reveals the relative attractiveness of alternative strategies and thus provides an objective basis for selecting specific strategies. 56. Each of the nine
techniques included in the strategy formulation framework rely on the use of The Input Stage 58. Which stage of the strategy formulation framework contains the Internal-Factor Evaluation Matrix? The Matching Stage 60. Which section of the SWOT Matrix involves matching internal strengths with external opportunities? 61. Which strategies aim at improving internal weaknesses by taking advantage of external
opportunities? 62. Which strategies use a firm’s strengths to avoid or reduce the impact of external threats? 63. Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding environmental threats. 64.
How many cells are in a SWOT Matrix? 65. Which of the following is not a step of a SWOT Matrix? 66. Which of these is not a SPACE Matrix quadrant? 67. The two internal dimensions represented on the axes of the SPACE Matrix are 68. What are two external dimensions of the SPACE Matrix? 69. The two positive-rated dimensions on SPACE Matrix are 70. What type of strategies would you recommend when a firm’s SPACE Matrix directional vector has the coordinates (-2, +3)? 71. In the SPACE analysis, what
does a (+6, +3) strategy profile portray? 72. What is a weakness associated with a SWOT Matrix? 73. For what type of company is the BCG Matrix ideal for analyzing? 74. In the BCG Matrix, which element represents the industry growth rate in sales, measured in percentage terms? 75. How would a division with a low relative market share position in a high growth industry be described? 76. When a division of an organization has a high relative market share and is in a fast-growing industry, it is called a 77. A division with a high relative market share position in a low-growth industry can be described as a 78. Which of these is an attractive strategy for a cash cow division? 79. Most likely, what was a cash cow in the past? 80. An organization that has a low relative market share position
and competes in a slow-growth industry is referred to as a 81. The BCG Matrix limitations include all of these except: 82. Which analytical tool consists of a nine-cell matrix? 83. What analytical tool has four quadrants based on two dimensions: competitive position
and market growth? 84. Firms located in which quadrant of the Grand Strategy Matrix are in an excellent strategic position? 85. According to the Grand Strategy Matrix, which strategy is recommended for a firm with rapid market growth and a strong
competitive position? 86. For companies located in Quadrant III of the Grand Strategy Matrix, the first strategy recommended is 87. Although
Quadrant _____ companies are growing, according to the Grand Strategy Matrix, they are unable to compete effectively, and they need to determine why the firm’s current approach is ineffective and how the company can best change to improve its competitiveness. 88. According to the Grand Strategy Matrix, organizations in which .quadrant have a strong competitive position but are in a slow-growth
industry, The Decision Stage 90. The top row of a QSPM consists of
alternative strategies derived from all of these except: 91. Which analytical tool determines the relative attractiveness of various strategies based on the extent to which key external and internal critical success factors are capitalized? 92. Which of the following is the first step in developing QSPM? 93. What term is defined as the product of multiplying ratings by attractiveness scores in each row of the QSPM? 94. What is the highest number of strategies that can be examined at one time with the QSPM? 95. Which of these is a limitation of QSPM?
The Politics of Strategy Choice 98. Through
which tactic is it possible to achieve similar results using different means or paths? Governance Issues 100. Today, what are boards of directors composed mostly of? 101. All of the following are principles of good organizational governance, as established by Business Week, except: Essay Questions 103. If you construct a SPACE Matrix and the directional vector points to the lower left quadrant, what type of strategies would you recommend? Give several examples. 104. Give five coordinates of a SPACE Matrix directional vector that would suggest conservative strategies to be most appropriate. 105. In a BCG Matrix, all
divisions are called question marks, stars, cash cows or dogs. Define each of these terms. 106. Compare and contrast the IE Matrix with the BCG Matrix. 107. Explain the benefits and limitations of developing a Boston Consulting Group Matrix. 108. Using a Grand Strategy Matrix approach, what strategies are recommended for a firm that is a weak competitor in a slow-growing market? Elaborate on what these strategies could mean for a college or university. 109. Describe the
positive features and limitations of QSPM. 110. Describe the tactics that have been used by politicians that can also aid
strategists. 111. Discuss the appropriate role of a board of directors in an organization. Which stage is the strategy formulation framework focuses on generating feasible alternative strategies?Stage 2, called the matching stage, focuses on generating feasible alternative strategies by aligning key external and internal factors. Stage 2 techniques include ; - The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix.
What is the key to generate feasible alternative strategies?Matching external and internal is the key to effectively generating feasible alternative strategies. 1. Select a set of variables to define financial position (FP), competitive position (CP), stability position (SP), and industry position (IP).
What are the stages of strategy formulation framework?Techniques of strategy formulation can be integrated into a decision making framework. Strategies can be identified, evaluated and selected by this framework that includes three stages: (1) input stage, (2) matching stage, and (3) decision stage (Figure 1) (David, 2007).
What are the 5 stages of strategy development?The five stages of the process are goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring.
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