MULTIPLE CHOICE

• 40. What is the term used in Ansoff's matrix for increasing market share with existing products in existing markets?

• Product development.
• Market penetration.
• Diversification.
• Market development.

41. Which of the following is typically NOT seen as being associated with strategic decisions?

• The organizations long-term direction.
• The detailed planning of a department's work over the next month.
• The values and expectations of powerful actors in the organization.
• The scope of the organizations activities.

42. Which strategy is about how to compete successfully in particular markets?

• Business-level strategy.
• Corporate-level strategy.
• Alliance-based strategy.
• Operational-level strategy.

43. A group of managers is considering pricing strategy and differentiation. At which level of strategy are the managers most likely to be working?

• Corporate level.
• Operational level.
• Business level.

44. An organizations general expression of its overall purpose is known as its:

Objective. Vision. Goal. Mission.

45. Strategy involves:

• Senior managers and board members.
• Managers at all levels.
• Senior and middle managers.
• Senior management.

46. What among the following is not a branch of strategy research that make up the study of strategy?

• Strategy content.
• Strategic context.
• Strategy lenses.
• Strategy processes.

47. In the Exploring Strategy Model, what heading is used to cover environment, capability, goals and culture?

• Strategic applicability.
• Strategic choices.
• Strategy in action.
• Strategic position.

48. A design view of strategy refers to:

• The pulling together of ideas that develop from different parts of the organization.
• The pulling together of the different decisions made throughout an organization, so as to develop a coherent overall strategy.
• The systematic, rational way in which strategy is always developed in an organization.
• The deliberate positioning of the organization through a rational, analytic, structured and directive process.

49. The experience lens suggests that strategies develop:

• Through the shared assumptions in the organization, often thought of as the organizational culture.
• Through the shared assumptions across similar types of organizations within an industry (or organizational field).
• Through the individual experience of a few top managers or strategic planners.
• All of the above.

50. The variety lens suggests that new strategies take shape in organizations:

• Because new ideas are tried out in the market and either succeed or do not.
• Because the new ideas that develop from within it are selected by formal

evaluation through strategic planning systems.

• Because there are sufficient people who find them attractive.
• All of the above.

51. What is the key outcome from PESTEL analysis?

• Five Forces.
• Identification of the drivers for change.
• Critical success factors.
• Possible scenarios.

52. When using PESTEL it is easy to get overwhelmed by a multitude of details. Instead, it is important to step back and identify the:

• Key drivers for change.
• Relevant Five Forces that exist
• Complex links between each of the factors.
• Market segments.

53. Which of the following is NOT the most useful ways in which a group of managers could use scenario planning?

• To consider plausible alternative futures.
• To ensure that the managers always select the only scenario that will work in

practice.

• To develop contingency plans for each scenario.
• To increase the managers' understanding and perception of forces in the business

environment.

54. It is always useful to ensure that the three scenarios are 'optimistic', 'middling' and 'pessimistic'.

False. True.

55. The five forces that affect the level of competition in an industry are:

• The threat of entry; the power of buyers; the power of suppliers; the threat of substitutes; and government action.
• The threat of buyers; the power of entry; the power of substitutes; the threat of suppliers; and the threat of recession.
• The threat of recession; the power of buyers; the power of suppliers; the threat of management failure; and competitive rivalry.
• The threat of entrants; the power of buyers; the power of suppliers; the threat of substitutes; and competitive rivalry.

56. In which of the following situations is buyer power NOT likely to be high?

• Where switching costs are low.
• Where ultimate consumer power is weak.
• Where the buyer can threaten to compete.
• Where a few large customers account for the majority of sales.

57. Forward vertical integration occurs when suppliers are able to cut out buyers who act as intermediaries.

True. False.

58. When identifying strategic groups, which two headings can the relevant characteristics most usefully be grouped under?

• Resource commitment.
• Competitiveness.
• PESTEL factors.

59. A strategy canvas is a simple but useful way of comparing competitors' positions in a market and potential in different segments. What are the two key benefits of a strategy canvas?

It emphasizes the importance of technical quality. It demonstrates that focusing on market segments means losing the overall

picture.

It emphasizes the importance of seeing value through the customers' eyes.

60. Which of the following accurately categorizes the machines an organization uses?

• Tangible, financial resources.
• Intangible, financial resources.
• Tangible, intellectual capital.
• Tangible, physical resources.

61. What term is used for an organizations abilities to renew and recreate its strategic capabilities to meet the needs of a changing environment?

• Competent substitution.
• Core competence.
• Renewability.
• Dynamic capabilities.

62. Core competences are the skills and abilities by which resources are deployed through an organizations activities and processes such as to:

• Survive using approaches and techniques that others cannot imitate or obtain.
• Survive.
• Achieve competitive advantage in ways that others cannot imitate or obtain.
• Achieve competitive advantage.

63. A competitor finds it difficult to identify the basis for an organizations competitive advantage. What term is used for this situation?

• Interdependent causality.
• Causal dependency.
• Causal ambiguity.
• Ambiguous intercausality.

64. Which of the following statements incorrectly relates to explicit and tacit knowledge?

• A systems manual is an example of explicit knowledge.
• Tacit knowledge is easier to imitate.
• Explicit knowledge is easier to communicate.
• Tacit knowledge is personal, context-specific and therefore hard to

communicate.

65. The sharing of knowledge and experience in organizations is an essentially social and cultural process.

False.

66.

67.

The competitor who is 'best in class' wherever that may be. The nearest geographical competitor. The nearest principal competitor. The competitor who is the best in the industry.

69. Which of the following answers the question: 'Where does the organization aspire to be in the future?'

Mission statement. Core values. Vision statement. Objectives.

70. Which statements does not accurately describe relationships that exist in a large company?

• The board is an agent for investment managers.
• Investment managers are ultimately agents for the ultimate beneficiaries.
• Investment managers are agents for the board.

True.

Which of the following statements correctly relate to value chains?

Technology development is a primary activity. Marketing and sales is a support activity. Procurement is a support activity that occurs in many parts of the organization.

The purpose of a SWOT analysis is to analyses:

The strategic capability of an organization. External and internal environments. The business environment and the strategic capability of an organization relative to its competitors. The business environment in which an organization operates.

68. against:

Best-in-class benchmarking seeks to assess organizational performance

71. Which is the most common types of governance structure?

• The non-executive board model.
• The manageragent model.
• The shareholder model.

72. Which of the following statements accurately relates to the stakeholder model of governance?

• Shareholders have a legitimate primacy in relation to the wealth generated by organizations.
• Boards attempt to consider the wishes of all stakeholders.
• All board members are insiders (typically managers of the company).
• Firms generally have a single-tier structure.

73. Which of the following is claimed to NOT be an advantage of the shareholder model of governance?

• Investors get higher returns than they would under the stakeholder model.
• There is a reduced risk for shareholders.
• Major investors are more likely to view their investments as being long term.
• There is a greater chance of entrepreneurship.

74. Which of the following is not a corporate social responsibility stance?

• Enlightened self-interest.
• Free enterprise.
• Laissez-faire.
• Shaper of society.

75. Which stance on corporate social responsibility would focus on social and market change, and give individuals in the organization responsibility for social responsibility issues?

• Enlightened self-interest.
• Forum for stakeholder interaction.
• Laissez-faire.
• Shaper of society.

76. What name is given to the process of divulging information to outside bodies when a person believes that their organization is failing in its corporate social responsibility?

Showing enlightened self-interest.

• Social auditing.
• Legitimizing.
• Whistle-blowing.

77. An indicator of the power held by external stakeholders is:

• The organizational perception of the status of an external party.
• The personal relationship with a key decision maker.
• Mutual resource dependency.
• Their negotiating skills.

78. Power is:

• The ability of individuals or groups to persuade, induce or coerce others into following certain courses of action.
• The ability of individuals or groups to persuade others into following certain courses of action.
• The ability of groups to persuade, induce or coerce others into following certain courses of action.
• The ability of individuals to persuade, induce or coerce others into following certain courses of action.

79. Which of the following is not one of the four broad categories of external stakeholders?

Environmental. Technological. Economic. Socio-political.

80. In many businesses there are periods of relative continuity during which strategy changes incrementally. What is NOT the main reason for this?

• By maintaining continuity during a period of environmental change, managers can ensure growth.
• Managers are experimenting around a theme.
• Managers are unwilling to change a strategy that has been successful.
• The environment is changing gradually.