David TIF Ch09 2

CHAPTER 9
Strategy Review, Evaluation and Control

True/False

The Nature of Strategy Evaluation

1. Most strategists believe that an organization’s well being depends on evaluation of the strategic-management process.

Ans: T Page: 337

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

Ans: T Page: 337

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

Ans: T Page: 337

4. Strategy evaluation should have a long-run focus and avoid a short-run focus.

Ans: F Page: 327

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

Ans: F Page: 337

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

Ans: T Page: 337

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

Ans: F Page: 337

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

Ans: F Page: 337
9. The decreasing time span for which planning can be done with any degree of certainty is a reason strategy evaluation is more difficult today.

Ans: T Page: 337

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

Ans: T Page: 338

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

Ans: F Page: 338

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

Ans: T Page: 339

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

Ans: F Page: 339

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

Ans: F Page: 339

A Strategy-Evaluation Framework