SECTION A: MULTIPLE CHOICE QUESTIONS [10 MARKS] Answer ALL questions. Each question carries ONE (1) mark. Choose the best alternative answer 1. When developing a mission statement, what is needed before people can focus on specific strategy formulation activities?

a) Negotiation

b) Compromise

c) Eventual agreement

d) A and B only

e) All of the above 2. 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. 3. 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 4. In the BCG Matrix, a division with a high relative market share position in a low-growth industry can be described as a_________________

a) Star.

b) Cash Cow.

c) Question Mark.

d) Dog.

e) Failure. 5. Which term is primarily concerned with shareholder well-being rather than employee well-being?

a) Benchmarking

b) Reengineering

c) Product redesign

d) Process management

e) Restructuring 6. Corrective actions should always_______________

a) Strengthen an organization's competitive position in its industry.

b) Streamline asset holdings.

c) Have no risk.

d) Involve abandoning existing strategies.

e) All of the above 7. The strategy-evaluation process should_____________

a) dominate decisions.

b) be complex.

c) be cumbersome.

d) foster mutual understanding and trust.

e) be restrictive. 8. Controls need to be ________ rather than ________.

a) action-oriented; information-oriented

b) cultural; political

c) qualitative; quantitative

d) measurable; timely

e) universal; diverse 9. What has been shown to permit quick response to change, prevent panic in crisis situations, and make managers more adaptable?

a) Auditing

b) Implementing a Balanced Scorecard

c) Contingency planning

d) Taking corrective actions

e) Measuring performance 10. All of the following are reasons to be completely open as opposed to secretive with the strategy process EXCEPT

a) Managers, employees and other stakeholders can readily contribute to the process.

b) Stakeholders have greater basis for understanding and committing to a firm that is open.

c) All levels of today's workforce exhibit increased education and diversity, making such contributions valuable.

d) Participation and openness enhance understanding, commitment and communication within the firm.

e) Openness limits rival firms from imitating or duplicating the firm's strategies.