Exam Prep

Question 1

Which of the following is a definition of strategic management?

a) Strategic management consists of strategic position, strategic choice, and strategy implementation
b) Strategic management refers to those aspects of management that are the responsibility of an organisation’s most senior managers.
c) Strategic management refers to an approach to business planning based on the objectives of the various stakeholder groups affected by the organisation’s activities.
d) Strategic management is concerned with the annual planning processes by which an organisation determines its annual targets and budget allocations.

Answer 1

a) Strategic management consists of strategic position, strategic choice, and strategy implementation

Question 2

Which one of the following is not a major concern of strategic management?

a) The marketing mix
b) Strategic options
c) Organisational resources and competences
d) The external environment
e) Mission and objectives

Answer 2

a) The marketing mix

Question 3

Which of the decisions listed below is not an example of a strategic decision?

a) Decision to invest in a new production plant
b) Decision to launch a new product
d) Decision to enter a new market
e) Decision to launch a new advertising campaign

Answer 3

Decision to launch a new advertising campaign

Question 4

What do you understand by the term ‘strategic direction’?

a) ‘Strategic direction’ refers to the leadership offered by the senior management team of an organisation.
b) ‘Strategic direction’ refers to the underlying intent of a strategy, for example growth, consolidation, market entry or diversification.
c) ‘Strategic direction’ refers to the direction in which the organisation would like to move in the next five years
d) ‘Strategic direction’ refers to the general direction in which an industry as a whole is moving.

Answer 4

‘Strategic direction’ refers to the underlying intent of a strategy, for example growth, consolidation, market entry or diversification.

Question 5

Which of the following is not one of the types of strategy identified in the hierarchy of strategies?

a) Market-level strategy
b) Operational-level strategy
c) Business-level strategy
d) Corporate-level strategy

Answer 5

Market-level strategy

Question 6

International and innovation strategies are part of which element in the Exploring Strategy Model?

a) Strategy in Practice
b) Strategy in Action
c) Strategic Position
d) Strategic Choice

Answer 6

Strategic Choice

Question 7

The objectives of strategy in the public sector tend to be concerned with which of the following?

a) Satisfying shareholders
b) Value for money
c) Profitability
d) Competitive advantage

Answer 7

Value for money

Question 8

Which type of strategy is concerned with the overall purpose and scope of an organisation?

a) Corporate- level strategy
b) Business-level strategy
c) Strategic-business- level strategy
d) Operational strategy

Answer 8

Corporate- level strategy

Question 9

Which type of strategy focuses on how resources, processes and people can be used to deliver high-level strategies?

a) Corporate- level strategy
b) Business-level strategy
c) Strategic-business- level strategy
d) Operational strategy

Answer 9

Operational strategy

Question 10

Which of the following is not a typical characteristic of strategy making in the not-for-profit sector?

a) Multiple objectives
b) Meeting expectations of shareholders
c) Values and ideology
d) Consensus building

Answer 10

Meeting expectations of shareholders

Question 11

Why is it important to undertake macro-environmental analysis when the micro (Industry) environment has more impact on day-to-day operations?

a) Because understanding trends in PESTEL factors enables an organisation to anticipate changes, threats and opportunities arising in the operating environment.
b) Because the micro analysis would be impossible to do without first completing the macro analysis.
c) Because changes in the macro-environment are barriers to the daily operations of the organisation. That is why they are called PESTEL factors.
d) Because managers ought to be aware of the current affairs issues represented by PESTEL factors.

Answer 11

Because understanding trends in PESTEL factors enables an organisation to anticipate changes, threats and opportunities arising in the operating environment.

Question 12

What is environment?
a)Anything happens outside the organisation

b) Anything happens outside the org and affects its performance
c) Anything happens within the organisation that can influence its performance
d) Anything affects organisational performance

Answer 12

Anything happens outside the org and affects its performance

Question 13

Which of the following is an example of a social issue from the PESTEL analysis?
a) Development of 5G phones

b) Rising demand for pre-school nursery places
c) Rise in interest rates.
d) China jo ining the WTO

Answer 13

Rising demand for pre-school nursery places

Question 14

Which of the following is NOT example of ‘environmental’ issues from a PESTEL analysis of the airline industry?

a) Restrictions on mergers between airlines
b) Rapid development of technology
c) Energy consumption controls
d) Rise in interest rates

Answer 14

Energy consumption controls

Question 15

The differential impact of environmental drivers means which one of the following?

a) Some organisations are more competent than others.
b) Competito rs in an industry need to pursue different strategies.
c) The same environmental changes wi ll be an opportunity for some firms and their strategies and a threat to other firms and their strategies
d) The same environmental changes wi ll be an opportunity at some times and a threat at others.

Answer 15

The same environmental changes wi ll be an opportunity for some firms and their strategies and a threat to other firms and their strategies

Question 16

Which of the following are identified as a result of external analysis?

a) Strengths and weaknesses
b) Threats and opportunities
c) Core competences
d) Competitive advantages

Answer 16

Threats and opportunities

Question 17

Which of the following is a correct description of the SWOT analysis?

a) A SWOT analysis avoids the need for evaluating strategic capability
b) A SWOT analysis summarises the strengths and weaknesses of an organisation.
d) A SWOT analysis summarises the opportunities and threats for an organisation.
e) A SWOT analysis summarises the key issues from the business environment and the strategic capability of a organisation

Answer 17

A SWOT analysis summarises the key issues from the business environment and the strategic capability of a organisation

Question 18

How often should an organisation carry out macro-environmental and industry analysis?

a) Every one to three years
b) Annually , as part of its operational review process
c) Every five years, to coincide with a five-year planning cycle.
d) Continuously

Answer 18

Continuously

Question 19

The VACA in the macro-environment analysis stands for

a) Volatility, Uncertainty, Competent, Ambiguity
b) Volatility, Uncertainty, Complexity, Ambiguity
c) Volatility, Universal, Complexity, Ambiguity
d) Volatility, Uncertainty, Complexity, Ambidexterity

Answer 19

Volatility, Uncertainty, Complexity, Ambiguity

Question 20

The key drivers of change in the macro-environment analysis are:

a) the same across all industries
b) those factors very relevant to the organisation analysed
c) those environmental factors with a high impact on all industry
d) those environmental factors with a high impact on the industry analysed

Answer 20

those environmental factors with a high impact on the industry analysed

Question 21

The level of industry analysis is on

a) the corporation analysed
b) the organisation (SBU) under analysis
c) all industries (more than one) the organisation operates
d) the (one) industry within which the organisation operates

Answer 21

the (one) industry within which the organisation operates

Question 22

Which of the following affects the bargaining power of customers?

a) The growth rate of the market
b) Supplier switching costs for firms in the industry
c) The number of customers and the volume of their purchases
d) Rates of technological innovation

Answer 22

The number of customers and the volume of their purchases

Question 23

Which of the following is not an insight derived from using Porter’s Five Forces Framework?

a) It clearly identifies the opportunities and threats from the business’s industry environment
b) Understanding of the link between competitive rivalry and the potential profitability of competitors in the industry
c) It exp lains and predicts the industry structure. Industry structure refers to the number of firms in an industry and the concentration of supply
d) It provides understanding of the relative cost positions of rivals and suppliers

Answer 23

It provides understanding of the relative cost positions of rivals and suppliers

Question 24

Which of the following is NOT the key driver of consolidation in the brewing industry?

a) The need to contain costs
b) The benefits of leveraging strong brands
c) The existence of over-capacity within the industry
d) A desire on the part of executives to run the biggest firm in the industry

Answer 24

A desire on the part of executives to run the biggest firm in the industry

Question 25

Which of the following five forces is the most important during the decline stage of an industry life cycle?

a) Threat of entry
b) Power of suppliers
c) Rivalry
d) Power of customers

Answer 25

Rivalry

Question 26

Why does external analysis usually start with the macro-environment and proceed to industry analysis?

a) Because managers know about the operating environment already but need to study those issues they do not interact with on a daily basis such as PESTEL factors
b) This is just a convention that has developed over time. It does not matter what order the analysis is done in
c) Because it is important that the data on the operating environment data is very up to date, so this should be collected last
d) Because knowledge of the wider environment facilitates interpretation of the operating environment - the wider context which shapes the industry is better understood

Answer 26

Because knowledge of the wider environment facilitates interpretation of the operating environment - the wider context which shapes the industry is better understood

Question 27

What do you understand by the term ‘critical success factors’?

a) These are the key things that attract praise and positive comments from industry analysts
b) These are the key things the organisat ion must be able to do to meet customer needs and match or exceed competitor offerings in a given environment
c) These are the critical elements of a strategy that must be tightly controlled to ensure the organisation makes a profit
d) These are key elements of an organisation’s strategy that made it successful

Answer 27

These are the key things the organisat ion must be able to do to meet customer needs and match or exceed competitor offerings in a given environment

Question 28

Which of the following is not a common criticism of the Five Forces Framework?

a) It is more appropriate for analysing manufacturing rather than service sectors, where suppliers are less of an issue
b) The model is essentially designed to evaluate private sector competitive environments and is not really appropriate for the not-for-profit sector
c) The model is often criticised for providing only a snapshot of the industry at a point in time; that is, it is too static
d) The model doesn’t provide an insight into macro-environmental factors that shape the industry context.

Answer 28

The model doesn’t provide an insight into macro-environmental factors that shape the industry context.

Question 29

Which of the following statement best describes the benefits of the industry environment analysis?

a) A. understanding the industry structure and its impact on profit
b) influencing the industry structure to improve industry profitability
c) All of these three
d) knowing which industry to be invested or divested

Answer 29

All of these three

Question 30

A strategic group is

a) A mix of firms from two or more industries A group of firms from the same industry by some criteria
b) A group of firms from the same industry by some criteria
c) randomly-grouped firms from the same industry
d) A group of business organisation from any industry

Answer 30

A group of firms from the same industry by some criteria

Question 31

An effective internal analysis of strategic capability should provide answers to which of the following questions?

a) Does the organisation possess the basic resources and competences needed to survive in its environment?
b) A. What are the resource capabilities of the firm’s main rivals?
c) Does the organisation target appropriate market segments?
d) What are the critical success factors that the resources must match?

Answer 31

Does the organisation possess the basic resources and competences needed to survive in its environment?

Question 32

Which of the following statements best explains the value chain model?

a) The value chain is a model for evaluating the cost and value of the various activities performed by an organisation and how these activities are interlinked
b) The value chain is a model for evaluating which of an organisation’s suppliers offers the best value for money
c) The value chain is a model for evaluating how value is added ·at all stages in the industry supply chain
d) The value chain is a model for evaluating the linkages between the various departments that make up the organisation

Answer 32

The value chain is a model for evaluating the cost and value of the various activities performed by an organisation and how these activities are interlinked

Question 33

Which of the following is not a support activity in the value chain?

a) Marketing and sales
b) Technology development
c) Human resource management
d) Procurement

Answer 33

Marketing and sales

Question 34

Which of the following does not relate to the VRIO criteria?

a) What the relative importance is of activity costs internally
b) To what extent and how an organisation has bases of value creation that are rare
c) Which value-creating activities are especially significant for an organisat ion in meeting customer needs
d) What aspects of value creation are difficult for others to imitate
e) What aspects of value creation are supported by the processes and systems in the organisation

Answer 34

What the relative importance is of activity costs internally

Question 35

Which of the following best defines dynamic capabilities?

a) An organisation’s ability to develop and change competences to meet the needs of rapidly changing environments
b) An organisation’s ability to maintain its position as the most cost efficient in its industry/sector
c) An organisation’s ability to develop and change its staff if they fail to meet the requirements of the managers
d) An organisation’s ability to develop and change competences to meet the rapidly changing needs of new owners

Answer 35

An organisation’s ability to develop and change competences to meet the needs of rapidly changing environments

Question 36

Which of the following is not one of the criteria for assessing the robustness of strategic capability?

a) Benchmarking
b) Culture and history
c) Causal ambiguity
d) Complexity

Answer 36

Benchmarking

Question 37

What is meant by an organisation’s strategic capability?

a) The adequacy and suitability of the resources and competences of an organisation for it to survive and prosper
b) The capability to respond effectively to the competitive threat posed by rivals
c) The ability to undertake effective strategic analysis and develop strategy
d) The ability to think strategically rather than get bogged down in day-to-day operational detail

Answer 37

The adequacy and suitability of the resources and competences of an organisation for it to survive and prosper

Question 38

What perspective are managers taking when they consider whether their organisation has strategic capabilities to achieve and sustain competitive advantage?

a) Resource-based perspective
b) Learning-organisation perspective
c) Real-value perspective
d) Value -based perspective

Answer 38

Resource-based perspective

Question 39

Which of the following best explains the difference between resources and competences?

a) Resources are the assets an organisation has whereas competences are the ways those assets are used effectively.
b) Resources are tangible whereas competences are intangible.
c) Resources are physical assets whereas competences are the skills of the workforce.
d) Resources are needed to survive whereas competences give an organisation its competitive advantage.

Answer 39

Resources are the assets an organisation has whereas competences are the ways those assets are used effectively.

Question 40

What does the term ‘competence leveraging’ mean?

a) The ability of the firm to exploit its distinctive/core competences in new markets meeting new customer needs
b) Developing new competences to stay ahead of the competition
c) Sharing expertise with other organisations in a strategic alliance
d) Building upon and enhancing the existing capabilities of the organisation to reinforce its advantages

Answer 40

The ability of the firm to exploit its distinctive/core competences in new markets meeting new customer needs

Question 41

Which of the following is the best explanation of the concept of competitive strategy?

a) Competitive strategy is concerned with how a strategic business unit can eliminate all its competitors and dominate the market
b) Competitive strategy is concerned wit h how an organisation achieves competitive advantage across all the businesses in which it operates.
c) Competitive strategy is concerned with how the structure and systems in an organisation are managed to ensure competitiveness
d) Competitive strategy is concerned with how a strategic business unit achieves compet itive advantage in its domain of activity

Answer 41

Competitive strategy is concerned with how a strategic business unit achieves compet itive advantage in its domain of activity

Question 42

Which of the following is not an implication of the experience curve?

a) Necessity of continual reduction in costs
b) Possibility of outsourcing
c) Need to enhance perceived customer value
d) Importance of First-mover advantage

Answer 42

Need to enhance perceived customer value

Question 43

Which of the following are not sources of cost leadership?

a) Economies of scale
b) Product/process design
c) Experience
d) Supply costs
e) Selling prices

Answer 43

Selling prices

Question 44

Which of the following is not a way to sustain price-based advantage?

a) Having organisation-specific capabilities which drive down cost throughout the value chain
b) Focusing on markets where high product/service value is appreciated by customers
c) Cross subsidising the low-margin business from other parts of the business portfolio
d) Selling higher volumes at reduced margins
e) Having deep pockets to fund a price war

Answer 44

Focusing on markets where high product/service value is appreciated by customers

Question 45

Which of the following is not a way to sustain differentiation-based advantage?

a) Entering a price war
b) Developing high switching costs for customers
c) Creating a new product to extend and improve the product range
d) Creating difficulties of imitation

Answer 45

Entering a price war

Question 46

Which of the follow ing is not an example of differentiation-based competitive advantages?

a) Just in Time (JIT) inventory management
b) Product positioning strategy
c) Branding
d) Service standards

Answer 46

Just in Time (JIT) inventory management

Question 47

Which of the following does not explain how a differentiation strategy leads to superior performance?

a) It enables a firm to sell its products at a premium price
b) Price competitiveness leads to greater sales volumes
c) It generates above-average profits by reducing elasticity of demand for the product.
d) It creates a barrier to the entry of new competitors

Answer 47

Price competitiveness leads to greater sales volumes

Question 48

What is meant by a hybrid strategy in the context of the Strategy Clock/Matrix?

a) A strategy that combines a broad market with focus characteristics
b) A strategy that combines emergent and intended elements
c) A strategy that combines positioning and resource-based approaches
d) A strategy that combines differentiation and lower costs and prices

Answer 48

A strategy that combines differentiation and lower costs and prices

Question 49

Which of the following statements does NOT apply to SBUs?

a) Each SBU typically competes in a different market or market segment.
b) They may be organisationally separate
c) Different competitive strategies may be needed for each SBU.
d) Each SBU must have a separate manager responsible for its performance

Answer 49

Each SBU must have a separate manager responsible for its performance

Question 50

In Porter’s generic strategy model, what does it mean to be ‘stuck in the middle’?

a) An organisation is able to achieve cost leadership and differentiation simultaneously
b) An organisation is of medium size and becomes vulnerable to competition from both larger firms and small niche players
c) An organisation focuses on the mid-price segments in all its markets
d) An organisation is trying to pursue more than one generic strategy and ends up with a confused strategy that fails to meet any customer needs fully.

Answer 50

An organisation is trying to pursue more than one generic strategy and ends up with a confused strategy that fails to meet any customer needs fully.

Question 51

Corporate-level strategy is concerned with:

a) addressing threats and opportunities in the macro-environment and leveraging strategic capability to create and sustain competitive advantage
b) the scope of an organisation and how value is added (or destroyed) at corporate level
c) directions of growth , for example Ansoffs matrix
d) competitive strategy of SBUs

Answer 51

the scope of an organisation and how value is added (or destroyed) at corporate level

Question 52

Which of the following is not a value-creating reason for diversification?

a) Efficiency gains from applying existing resources and competences to new markets and products/services
b) Gains from applying corporate managerial capabilities to new markets and products/services
c) A diverse range of products/services can increase market power
d) A diverse range of products/services can diffuse management effort
e) Need to respond to environmental change

Answer 52

A diverse range of products/services can diffuse management effort

Question 53

Research into diversification has shown that

a) the performance of conglomerates is consistently good over long time periods
b) related diversification outperforms compared with specialisation and unrelated diversification
c) diversification is too risky and always fails
d) related diversification underperforms compared with specialisation and unrelated diversification

Answer 53

related diversification outperforms compared with specialisation and unrelated diversification

Question 54

Which of the following is not one of the strategic requirements for a synergy manager?

a) Identification of ways of facilitating cooperation between business units
b) Identification of appropriate bases for sharing or transferring resources and/or competences
c) Sharing activities/resources or transferring skills/competences to enhance competitive advantage of SBUs
d) Identifying and acquiring undervalued assets

Answer 54

Identifying and acquiring undervalued assets

Question 55

Which type of corporate parent is most likely to operate from a large corporate office ,focusing downwards on providing parental capabilities?

a) Parental developer
b) Synergy manager
c) Turnaround manager
d) Portfolio manager

Answer 55

Parental developer

Question 56

Which of the following terms in the Ansoff matrix is used for developing new products for new markets?

a) Market development
b) Product development
c) Market penetration
d) Diversification

Answer 56

Diversification

Question 57

What term is used for the benefits that are gained where an organisation’s activities or assets complement each other so that the overall effect is greater than the sum of the parts?

a) Empathy
b) Diversification
c) Corporate parenting
d) Synergy

Answer 57

Synergy

Question 58

Which of the following is not an example of market development?

a) Jaguar launches the X Type or ‘baby Jag’
b) A. Dell enters a previously untapped segment with a selection of products from its existing portfolio
c) Sony begins exporting PlayStation 2 to North Korea
d) Tesco enters the German market and opens ten new stores

Answer 58

Jaguar launches the X Type or ‘baby Jag’

Question 59

What term is used for a situation in which a company develops into activities concerned with the inputs into the company’s business?

a) Backward integration
b) Synergy
c) Unrelated diversification
d) Forward integration

Answer 59

Backward integration

Question 60

Which of the following is not a way in which the corporate parent can add value?

a) Providing central services and resources
b) Envisioning
c) Adding management costs
d) oaching and facilitating

Answer 60

Adding management costs

Question 61

Which are the main reasons that explain why pursuing a strategy of internationalisation can bring benefits?

a) Market-based reasons, leveraging strategic capabilities and economic benefits
b) Copying what competitors do, exhaustion of local market, political reasons
c) Political reasons, technological reasons and corporate-governance reasons
d) Business executives having ambitions to build global empires

Answer 61

Market-based reasons, leveraging strategic capabilities and economic benefits

Question 62

Which of the following is not categorised as a type of political risk?

a) Protection of intellectual property rights
b) Sovereign risk
c) International boycotts
d) Corruption

Answer 62

Protection of intellectual property rights

Question 63

Which of the following is a disadvantage of exporting as a foreign entry mode?

a) Exposure to trade barriers such as import tariffs
b) Even inexperienced firms can gain access to export markets via the internet
c) No operational facilities required in the host country
d) Economies of scale

Answer 63

Exposure to trade barriers such as import tariffs

Question 64

Which of the following is not a major entry mode into foreign markets?

a) Diversification
b) Licensing
c) Exporting
d) Foreign direct investment
e) Joint ventures and alliances

Answer 64

Diversification

Question 65

Which of the following is NOT the key question for companies considering internationalisation?

a) How will it help to gain competitive advantage at home?
b) How far should we modify our products and services?
c) How can we manage across borders?
d) Which countries should we compete in?

Answer 65

How will it help to gain competitive advantage at home?

Question 66

Which international strategy involves activities that are concentrated but involve low levels of coordination?

a) Simple export
b) Multi-domestic
c) Global
d) Transnational

Answer 66

Simple export

Question 67

A manufacturing company realises that its components and products could be made more cheaply in a range of countries; the products need to be carefully tailored to suit customers in a range of countries. What international strategy should it adopt?

a) Transnational
b) Global
c) Simple export
d) Multi-domestic

Answer 67

Transnational

Question 68

Which of the following best describes the distinction between ‘global’ strategy and ‘transnational’ strategy?

a) Transnational strategy involves more than operating outside the country of origin - it implies extensive coordination of activities in many different countries across the globe.
b) Global strategy is the term used in the UK, whereas transnational strategy is the term used in the USA for the same concept
c) Global strategy involves extensive coordination of activities in many different countries, whereas global strategy means subsidiaries are largely independent
d) Transnational strategy means operating in two or more countries and global strategy means operating in ten or more countries

Answer 68

Transnational strategy involves more than operating outside the country of origin - it implies extensive coordination of activities in many different countries across the globe.

Question 69

Which market entry mode has an advantage of sharing investment risk with a partner but a disadvantage that there is a loss of competitive advantage through imitation?

a) Joint ventures
b) Foreign direct investment
c) Licensing
d) Exporting

Answer 69

Joint ventures

Question 70

Which market entry mode has an advantage of maintaining full control of resources and capabilities but a disadvantage that it involves substantial investment in the host country, leading to economic and financial exposure?

a) Foreign direct investment
b) Licensing
c) Exporting
d) Joint venture

Answer 70

Foreign direct investment

Question 71

Which of the following is a criterion for assessing the acceptability of a strategy?

a) Can the strategy be financed?
b) Does the strategy address the key opportunities and threats in the environment?
c) Can the required resources be obtained and integrated?
d) Will stakeholders’ reactions to the strategy be positive?

Answer 71

Will stakeholders’ reactions to the strategy be positive?

Question 72

In evaluating strategic options, what is the purpose of the ‘suitability’ test?

a) To determine whether the organisation has the resources needed to implement the strategy
b) To determine whether the riskiness of the strategy matches what is acceptable to the organisation
c) To determine whether the strategic option is appropriate for the circumstances facing the organisation
d) To determine whether the strategic option suits the management style of the organisation

Answer 72

To determine whether the strategic option is appropriate for the circumstances facing the organisation

Question 73

Which of the following issues would not be considered when evaluating the ‘acceptability’ of a strategic option?

a) Competitor opinions
b) Financial returns
c) Risk
d) Values and ethics

Answer 73

Competitor opinions

Question 74

Which of the statements below relates to the suitability criterion for evaluating strategic options?

a) Investing in new production capacity is not a good idea with a recession forecast
b) Embarking on a strategy that will depress profits for the next three years may provoke shareholder criticism
c) Investing in new technologies requires a lot less labour and will lead to redundancies
d) Investing in an expensive new design system requires risky sources of funding.

Answer 74

Investing in new production capacity is not a good idea with a recession forecast

Question 75

Which of the following does not determine the feasibility of a strategy?

a) The willingness of key shareholders to support the strategy
b) The competences and core competences required
c) The resource requirements of the strategy
d) The organisational system requirements of the strategy

Answer 75

The willingness of key shareholders to support the strategy

Question 76

Which of the following is not a technique for evaluating the risk associated with a strategy?

a) Sensitivity analysis
b) Profitability analysis
c) Scenario analysis
d) Simulation modelling

Answer 76

Simulation modelling

Question 77

The UK Competition Commission blocking a proposed merger between two mobile telephone companies would be an example of which evaluation criterion determining strategic choice?

a) All of the above (the other three)
b) Suitability
c) Feasibility
d) Acceptability

Answer 77

Acceptability

Question 78

Organisational configuration consists of

a) Technology, processes and people
b) Structure, synergy and systems
c) Strategy, structure and systems
d) People, systems and processes

Answer 78

Strategy, structure and systems

Question 79

Which of the following statements is true of a matrix organisation?

a) Unity of command is a fundamental design principle for matrix structures
b) Matrix organisations are also known as multidivisional structures
c) Cross-functional teams are formed and then re-formed according to the project needs of the organisation
d) A matrix structure combines different structural dimensions simultaneously, for example product divisions and functional specialisms

Answer 79

A matrix structure combines different structural dimensions simultaneously, for example product divisions and functional specialisms

Question 80

Which approach to strategy highlights the importance of fit between strategy, structure, systems, staff, style, skills and superordinate goals?

a) Mintzberg’s design
b) Bartlett and Ghoshal’s matrix
c) McKinsey’s 7-S
d) Porter’s Diamond

Answer 80

McKinsey’s 7-S

Question 81

Which of the following would you not associate with incremental change?

a) Enables the organisation to respond quickly to changes in its environment
b) Tends to be more inclusive (because it requires less coercion and ?bullying’)
c) Enables management to gain acceptance before and during the change process.
d) Has the advantage of implementing change a bit at a time (can be less painful).
e) Is divided into a number of distinct phases and there may be periods of rest’ between the phases

Answer 81

Enables the organisation to respond quickly to changes in its environment

Question 82

In which of the following situations would you expect an organisation to adopt a ‘revolutionary’ approach to change?

a) In a stable environment which changes little
b) Following excellent annual profit results
c) Following a major crisis
d) Following the launch of a new product

Answer 82

Following a major crisis

Question 83

Which of the following questions is not relevant to forcefield analysis?

a) What aspects might block change?
b) What aspects might aid change?
c) How should change be communicated?
d) What needs to be developed to aid change?

Answer 83

How should change be communicated?

Question 84

Which of the following items is not an example of how culture can negatively affect strategy implementation?

a) Culture generates inertia and so can lead to resistance to change
b) The existence of a fragmented culture (i.e. several subcultures) will make a single cohesive implementation strategy hard to implement.
c) A conservative and risk-averse culture is likely to be resistant to change, as change will be viewed as a threat
d) Culture plays a key role in change , so will have to be changed quickly
e) Where culture is not aligned with the needs of the strategy, the desired behaviours may not be present and it will be necessary to change the culture.

Answer 84

Culture plays a key role in change , so will have to be changed quickly

Question 85

Which of the following organisations do you think is more likely to engage in ‘revolutionary’ change?

a) A local council
b) A company operating in a stable environment
c) A well-established incumbent
d) A company in crisis

Answer 85

A company in crisis

Question 86

Which of the following is not a lever for managing strategic change?

a) Turnaround strategy for firms in crisis
b) Changing organisational routines
c) Challenging the taken-for-granted assumptions
d) Symbolic processes
e) Reinforcing the taken-for-granted assumptions

Answer 86

Reinforcing the taken-for-granted assumptions

Question 87

The most effective way to communicate complex change is:

a) In an email circular
b) Face to face
c) On noticeboards
d) By personal email

Answer 87

Face to face

Question 88

Which of the following is not a style of managing strategic change?

a) Persuasion
b) Direction
c) Reward and punishment
d) Participation

Answer 88

Reward and punishment

Question 89

Which of the following aspects of an organisation do you think would be most difficult to change?

a) Technology
b) Culture
c) Systems
d) Structure

Answer 89

Culture

Question 90

Which of the following groups of attributes is most desirable in a change agent?

a) Honesty, loyalty and experience in the organisation
b) An insider from the organisation , with no political experience and with fresh ideas
c) An outsider with experience of change programmes
d) Communication skills, technica l expertise and sensitivity to organisational politics

Answer 90

…

Question 91

Which of the following perspectives is not included in the ‘Balanced Scorecard’?

a) Innovation and learning perspective
b) Financial perspective
c) Customer perspective
d) Competitive perspective

Answer 91

Competitive perspective

Question 92

Which of the following is the approach for measuring strategy performance?

a) Stakeholder approach
b) Extended stakeholder approach
c) Extended shareholder approach
d) Balanced scorecard approach
e) Shareholder value approach

Answer 92

Balanced scorecard approach

Question 93

Which of the flowing is NOT measured by the balanced score card?

a) Internal and external perspectives
b) Leading and lagging indicators
c) Competitor’s market share
d) Short- and long-term objectives
e) Financial and non-financial measures

Answer 93

Competitor’s market share

Question 94

Which is the following is the best description of the concept of strategy map?

a) An overview of strategic activities by the firm in the next three years
b) A variety of strategies implemented by organisations with an industry
c) The cause-and-effect relationship of the functions in the organisational structure
d) A diagram that describe how an organisation creates value by connecting strategic objectives in explicit cause-and-effect relationship with each other in the four Balanced Scorecard (BSC) objectives.

Answer 94

A diagram that describe how an organisation creates value by connecting strategic objectives in explicit cause-and-effect relationship with each other in the four Balanced Scorecard (BSC) objectives.

Question 95

Which of the following measures the employee capability?

a) learning and growth
b) internal
c) customer
d) financial

Answer 95

learning and growth

Question 96

Which of the following measures the defect rate of production?

a) customer
b) internal
c) learning and growth
d) financial

Answer 96

internal

Question 97

Which of the following measures the client satisfaction?

a) customer
b) internal
c) learning and growth
d) Financial

Answer 97

customer

Question 98

Which of the following measures the profitability?

a) learning and growth
b) customer
c) Financial
d) internal

Answer 98

Financial

Question 99

Which of the following measure is the most fundamental one in the balanced score card?

a) customer
b) learning and growth
c) internal
d) Financial

Answer 99

learning and growth

Question 100

Which of the following measure is the effect of other measures?

a) customer
b) Financial
c) learning and growth
d) internal

Answer 100

financial