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NEW QUESTION 122
BBB has often encountered difficulties when it has introduced strategies which involve Organizational change.
BBB is about to enter a period of much change and has decided to appoint one or more change agents to help to manage this. Select ALL of the statements that apply in respect of a change agent.
- A. Willingness to drive through difficult decisions.
- B. Skilled communicator with colleagues and subordinates.
- C. Skilled at successfully meeting budget targets.
- D. Tolerant of ambiguity and uncertainity.
- E. Worked in three similar change environments.
- F. Sensitive to the impact of change on all stakeholders.
Answer: B,D,F
NEW QUESTION 123
Select the label which best defines the periods of decline outlined in the situations presented below.
Answer:
Explanation:
NEW QUESTION 124
Ansoff has provided a product/market growth matrix which denotes possible strategic directions that an organisation can follow.
Which of the following statements correctly describe the strategic options generated by the matrix?
Select ALL that apply
- A. Product development using new products in new markets.
- B. Market penetration using new products within existing markets
- C. Market penetration using existing products in new markets
- D. Market penetration using existing products within existing markets
- E. Diversification using new products in new markets
- F. Market development using existing products in new markets.
Answer: A,D
NEW QUESTION 125
CCC is a small business which manufactures and sells bicycles. Its most popular product is the standard road bike, brand named the 'Easy Rider'. CCC offers customers a limited degree of choice in terms of product specification for the Easy Rider bicycle. CCC manufactures and sells 1,000 Easy Rider bicycles each year. The average retail price of an Easy Rider bicycle is $500.
As a result of the recent rise in popularity of cycling in its home country, last year CCC launched a new bicycle, brand named the 'Pro Rider'. This bicycle is aimed at the more serious cyclists who take part in competitions and road races. CCC offers Pro Rider customers a wide choice of specifications and accessories and uses the highest quality of materials in its manufacturing process. A Pro Rider bicycle retails for an average price of $6,000. In its first year, CCC sold 150 Pro Rider bicycles.
CCC's business is generated mainly from word of mouth recommendations, repeat business and from customer visits to its small chain of shops. It aims to increase its market share for both brands within the next 5 years.
Competition is high, with a number of large national bicycle manufacturers in the market.
Which TWO of the following are critical success factors (CSF's) for CCC?
- A. Repeat business levels
- B. Market share growth
- C. Manufacturing excellence
- D. Brand awareness
Answer: C,D
NEW QUESTION 126
Which of the following is NOT an external driver that leads management to adopt greater sustainability in the activities of its business?
- A. Increased taxation of the emissions and waste created in industry supply chains.
- B. Customers' concerns, following widespread adverse publicity, over the very low pay of factory labour in manufacturing.
- C. Investor pressure for higher dividends.
- D. Scientific research demonstrating the adverse impacts of global warming.
Answer: C
NEW QUESTION 127
EEE is an international airline.
Indicate which of the following activities are 'primary' or 'support' in accordance with Porter's Value Chain.
Answer:
Explanation:
NEW QUESTION 128
BCD manufactures a well known breakfast cereal, the 'Weetyflake'. As a result of a steady slow down in the market growth of this product in its home country in the last five years, BCD is considering a number of possible strategic directions.
Select the label which best describes each of the strategic directions being considered by BCD.
Answer:
Explanation:
NEW QUESTION 129
JKL Plc manufactures and sells a range of consumer electronic products. it is organised into four strategic business units (SBU's), each responsible for a specific business segment.
Which business segment would benefit most from a Build strategy?
- A. Personal Music Player
- B. Smartphone
- C. Tablet
- D. Personal Computer
Answer: B
NEW QUESTION 130
SSS is a large department store. It operates a chain of stores throughout Country Z.
It offers a wide range of products, from cosmetics through to home furnishings.
SSS's Value Chain is presented below.
Which of the following generic strategies is being undertaken by SSS?
- A. Differentiation Focus
- B. Cost Leadership
- C. Differentiation
- D. Stuck in the middle
Answer: C
NEW QUESTION 131
TTT is a partnership that designs a specialist type of construction project for clients. It does not build the construction projects itself. TTT has eight partners who are skilled architects. Each partner works independently on their own projects. The partners rarely meet except to agree how to share out TTT's very significant profits.
The partners are disappointed that TTT is not growing as fast as it has in the past. Each partner is fully employed on their own projects and none has the time to recruit new architects to TTT. They are frustrated at the lack of leadership in TTT, although none of the partners are willing to take on a more senior role.
Which THREE of the following does TTT need to address?
- A. Manpower
- B. Management
- C. Make-up
- D. Money
- E. Materials
Answer: A,B,C
NEW QUESTION 132
Company CCC is an automotive component manufacturer. It manufactures three main products within its portfolio:
Product 1: Relative market share of 0.1; Market growth rate of -2%
Product 2: Relative market share of 4.0; Market growth rate of +3%
Product 3: Relative market share of 0.3; Market growth rate of +15%
Which TWO of the following statements are CORRECT? (Choose two.)
- A. Product 1 is likely to be at the mature stage of its life cycle, operating in a contracting market and is fairly cash neutral.
- B. Product 2 is likely to be at the growth stage of its life cycle, have weak profitability, poor cash generation and high capital requirements.
- C. Product 2 is likely to be at the mature stage of its life cycle, is likely to benefit from significant economies of scale.
- D. Product 3 is likely to be at the growth stage of its life cycle, at high risk of failure and further investment should be considered.
- E. Product 1 islikely to be at the mature stage of its life cycle, have strong profitability and further investment should be considered.
Answer: B,D
NEW QUESTION 133
BCA is a long established international airline. Which of the following represent Threats to BCA's business?
Select ALL that apply
- A. A higher level of private car ownership
- B. A sudden increase in international terrorism
- C. A shortage of trained pilots in BCA
- D. A substantial rise in the price of oil.
- E. Greater popularity of long-haul holidays
Answer: A,E
NEW QUESTION 134
An organisation which exists in a fast-changing industry with managers who dislike formal planning would be best suited to using which of the following strategy models?
- A. Freewheeling opportunism
- B. Rational model
- C. Emergent approach
- D. Logical incrementalism
Answer: A
NEW QUESTION 135
Which of the following structures would you recommend for the Board of Directors of a UK public company in order to fulfill its legal responsibilities?
- A. There should be no restriction placed on the minimum or maximum number of Directors. The Directors' roles should be shared but the Chairman or Chairwoman should not act also as the Chief Executive.
- B. The Chairman or Chairwoman should not have an executive role within the company. There should be at least two directors to carry out the Board's roles.
- C. The Board of Directors should have a minimum of six directors with the Board's tasks divided amongst them. The Board should also have a Chairman or Chairwoman who may serve as the Chief Executive if time permits.
- D. The Board should have no more than six members with clearly defined executive and non-executive responsibilities. To make the role more efficient Chairman or Chairwoman of the Board should also be the Chief Executive.
Answer: B
NEW QUESTION 136
QQQ is a family run business which manufactures and sells chocolate. QQQ employs 80 staff in its factory and shops. It operates 10 shops within a number of small towns in the northern region of Country P.
In the last four years, demand for QQQ's products has decreased, as customers in its local region are increasingly shopping in large supermarkets and out of town facilities, which are more convenient and tend to offer cheaper priced goods. The recent economic recession has hit the region hard and many local people have moved away to find work in other regions of the country. The internet has also impacted upon its business, as many customers are now making purchases of chocolate via the internet.
The Managing Director (MD) of QQQ has recently retired and the Board took the decision to make an external appointment to replace him. The new MD believes that QQQ needs to invest in new technology within its factory. This would reduce staffing levels by 15% and would reduce wastage and costs, allowing QQQ to offer more competitively priced products. He also believes that QQQ must invest in its own website. However QQQ's staff are very unhappy with these proposals. Some of the family members of the Board are concerned that this change will destroy the family tradition and reputation of QQQ that has been built up over many years.
Select the correct descriptor for each of the forces for change below.
Answer:
Explanation:
NEW QUESTION 137
McKinsey's 7-S' model illustrates the complexity of factors that can influence organisational change Which TWO of the following statements are incorrect?
To make progress in one'S' you need to achieve success in the other 'Ss'
- A. The model intentionally has no starting point.
- B. 'Shared Values' are sometimes also described as 'Superordinate Goals'
- C. The model features 3 'soft' factors, all of which are quantifiable
- D. All 7-S' factors vary in importance.
Answer: A,B
NEW QUESTION 138
Which of the following would be likely to encourage an organization to use Scenario Planning? (Choose all that apply.)
- A. The organization often experiences 'group-think', leading to a narrow view of the future.
- B. Uncertainty in the industry is high, relative to management's ability to predict or adjust to change.
- C. The organization has not previously experienced any major surprises or expensive strategic mistakes.
- D. Competitor's are increasingly using Scenario Planning as part of their strategy formulation process.
- E. The organization has achieved all of its objectives and operates within a stable external environment.
Answer: B,E
NEW QUESTION 139
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