Strategy Formulation

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CHAPTER 9
Strategy Review, Evaluation and Control

True/False

The Nature of Strategy Evaluation

1.If strategy implementation is successful, an enterprise can be lulled into complacency with success.

Ans: FPage: 300

2.Adequate, timely feedback is important to effective strategy evaluation.

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3.Too much emphasis on evaluating strategies may be expensive and counterproductive.

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4.Strategy evaluation should have a long-run focus and avoid a short-run focus, given that strategies are long term in nature.

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5.According to Richard Rumelt, consonance and consistency are based on a firm’s external assessment.

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6.According to Rumelt, consistency and feasibility are largely based on a firm’s internal assessment.

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

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8.Falsification of reports can result from too great an insistence on attainment of objectives.

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9.Consistency, distinctiveness, advantage and feasibility are Richard Rumelt’s four criteria for evaluating a strategy.

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10. Most top managers feel an organization’s well-being depends on evaluation of the strategic-management process.

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

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

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13.Consistency refers to the need for strategists to examine sets of trends as well as individual trends in evaluating strategies.

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14.The need for strategists to examine sets of trends as well as individual trends in evaluating strategies is referred to as consonance.

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15.The final broad test of strategy is consistency, that is, can the strategy be implemented consistently every year.

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16.Strategies may be inconsistent if policy problems and issues continue to be brought to the top for resolution.

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17.Competitive advantages normally are the result of superiority in one of three areas: feasibility, consistency, or consonance.

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18.Because large companies have more at stake, it is more important for large organizations to conduct strategy evaluation than small companies.

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19.When empowered employees are held accountable for and pressured to achieve specific goals and are given wide latitude in their actions to achieve them, there can be dysfunctional behavior.

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20.Given that large amounts of money are at stake, strategy evaluation is primarily necessary for large, corporate companies, not small or not-for-profit ones.

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21.The end of the fiscal year is the best time of the year to do strategy evaluation.

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22. Strategy-evaluation activities should be performed on a periodic basis.

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A Strategy-Evaluation Framework

23.Changes in the organization’s management, marketing, finance, R&D and CIS strengths and weaknesses should all be the focus of a revised EFE matrix in strategy evaluation.

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24.In strategy evaluation, a revised IFE matrix should indicate how effective a firm’s strategies have been in response to key opportunities and threats.

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25.Strengths, weaknesses,...
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